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CHRONICLING LEGAL CANNABIS IN MINNESOTA

By Matt DeLong

In this week’s Nuggets: Minnesota's plan to let tribes open off-reservation pot stores first draws fairness complaints; is the state's cannabis market already in trouble?; the window to apply for cannabis business licenses closes today; a judge rules Minnesota can prosecute marijuana crimes on reservations even after legalization; Minnesota DEED is accepting applications for two cannabis grant programs; Elk River seeks a manager for a municipal cannabis store: and a roundup of local government news.

Minnesota plan to let tribes open off-reservation pot stores first draws fairness complaints: Minnesota could soon allow tribal nations to open off-reservation cannabis dispensaries before the broader marijuana market launches, drawing fairness complaints from aspiring business owners who’ve waited almost two years to get a license. The compacts being negotiated in private by the Walz administration and tribal nations would give tribes more than just an early foothold in Minnesota’s marijuana market. Under a draft compact obtained by the Minnesota Star Tribune last month, tribal cannabis businesses operating outside reservations would be exempted from local cannabis ordinances, be able to negotiate taxation with the state and be allowed to grow, manufacture and sell — advantages not afforded most state-licensed businesses. Some business owners, advocates and state lawmakers are frustrated the state has taken nearly two years to issue cannabis business licenses to Minnesotans, and concerned the compacts could give tribes long-term market advantages. Read more.

Is Minnesota’s cannabis market already in trouble? “Rule-making can make or break a cannabis business, determining everything from production limits to testing requirements and market access. Well-crafted rules create a fair, competitive industry that protects consumers while allowing small businesses to thrive. However, overly complex or poorly designed regulations can drive up costs, limit innovation and push smaller operators out of the market — ultimately benefiting large corporations and illicit sellers. The state’s Office of Cannabis Management (OCM), led by interim Director Eric Taubel, is in the process of finalizing the rules that will govern the long-awaited launch of Minnesota’s retail cannabis flower market. Its proposed rules have generated fierce criticism from small businesses that say they favor big companies and will create unnecessary hurdles for them,” writes Star Tribune opinion columnist Clemon Dabney. Read more.

Window to apply for cannabis business licenses closes today: Prospective Minnesota pot entrepreneurs have until 11:59 p.m. Friday to submit their applications for social equity and general cannabis microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service and medical cannabis combination business licenses. Cities or counties that would like to open municipal cannabis stores must also apply for a retailer license by tonight’s deadline. The Office of Cannabis Management plans to hold two lotteries, one for qualified social equity applicants and another for general applicants, later this spring to award license types that are capped in number. Social equity applicants who are not awarded a license in the first lottery will be automatically entered in the general lottery. Applications for remaining license types — including cannabis event organizer, lower-potency hemp edible manufacturer or retailer licenses — will be accepted later this year. Hemp-derived cannabinoid retailers must register with the OCM before the adoption of rules to avoid being forced to stop selling those products. Information on how to apply for a cannabis business license can be found here. 

Judge rules Minnesota can prosecute marijuana crimes on reservations even after legalization: "A Minnesota district court judge ruled that the state may prosecute Native Americans on most reservations for possessing large amounts of marijuana, allowing a felony case against a White Earth man to proceed. The ruling is the first — though likely not the last — to address state law enforcement’s jurisdiction over marijuana in Indian Country since Minnesota legalized its recreational use in 2023," Max Nesterak reports for the Minnesota Reformer. Read more. 

Minnesota DEED accepting applications for two cannabis grant programs: The Minnesota Department of Employment and Economic Development (DEED) announced this week that it is accepting applications until April 11 for the CanNavigate and CanStartup grant programs. The CanNavigate program will offer up to $2 million in grants for “community-based entrepreneurial support organizations (ESOs) and organizations with cannabis regulatory experts” to help others navigate the legal cannabis industry’s regulatory landscape. Another $6 million in CanStartup grants could be awarded to nonprofit lenders to fund loans to cannabis microbusinesses and support jobs in communities where long-term residents qualify as social equity applicants. DEED will host a CanStartup informational webinar on March 13 from 10-11 a.m. and another for CanNavigate on March 18 from 1-2 p.m. 

Elk River seeks manager for municipal cannabis store: A new job posting for a cannabis store manager shows the Twin Cities suburb of Elk River is moving forward with its plans to open a municipal pot store. The position will be responsible for managing employees and “coordinating and supervising daily operations, ensuring top-tier customer service, promoting sound business practices and financial success, and ensuring the legal sale of cannabis products.” The starting annual salary is listed as $86,533 with possible yearly increases based on performance.

Local government roundup:

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This Mint Jelly autoflower from Humboldt Seed Company is in the home stretch with two to three weeks left until harvest, writes Carl from Crow Wing. Thanks for sharing!

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March 15 (Sat.): Dope Roots CannaFest for Women - "A unique opportunity for women to explore local women-owned cannabis brands, sample delicious edible products and beverages, shop, and learn about the benefits of low-dose, hemp-derived THC products for women." Noon-4 p.m. The Machine Shop, 300 SE. 2nd St., Minneapolis. Tickets and more info. 

March 16 (Sun.): Puff & Paint - "Bring a friend or two and enjoy an afternoon full of laughs, mingling, music, and gift bags!" Noon-4 p.m. PRVDR, 2447 S. Hennepin Av., Minneapolis. More info.

March 23 (Sun.): MN Veterans for Cannabis Networking + Sesh - "Are you interested in learning more about Minnesota's legal cannabis industry? Come meet local brands and network with homegrowers." Free for veterans. RSVP encouraged. 3-7 p.m. Mendota VFW Post 6690, 1323 Sibley Memorial Hwy., Mendota. Tickets and more info.

March 27 (Thu.): High Pines Canna Club - "Join us for the High Pines Canna Club March Meetup, where we dive into the intersection of cannabis and healthcare." Presented by Canna Connect MN. 5-7:30 p.m. Jack Pine Brewery, 15593 N. Edgewood Dr., Baxter. More info.

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