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CHRONICLING LEGAL CANNABIS IN MINNESOTA

By Matt DeLong

In this week's Nuggets: Minnesota Court of Appeals lifts the order blocking the now-canceled social equity preapproval lottery. Here's what it means; was ESPN’s Pat McAfee drinking a Minnesota THC beverage on his show?; a public comment period opens for draft cannabis regulations; poor leadership undermines Minnesota’s cannabis market, equity efforts, writes Clemon Dabney; a DEA judge cancels marijuana rescheduling hearings amid legal challenges; today is the deadline to apply for Minneapolis cannabis technical assistance funding; and a roundup of recent coverage of new cannabis ordinances across Minnesota. 

Minnesota Court of Appeals lifts order blocking the now-canceled social equity preapproval lottery. Here's what it means. The Minnesota Court of Appeals this week lifted a lower court’s order that paused the Office of Cannabis Management’s now-canceled social equity license preapproval lottery in November. The Appeals Court’s move comes in response to a petition filed by applicants who were granted entry into the lottery. The group is seeking to block the Ramsey County District Court from enforcing an order that halted the lottery after a handful of applicants sued the OCM alleging they were unfairly denied entry. The cannabis agency responded by canceling the preapproval lottery altogether and announcing a new plan to move forward with social equity and general license lotteries later this spring.

What the new Appeals Court’s order means in practical terms is complicated. It has nothing to do with the merits of the cases, the OCM’s denial of applicants or its decision to cancel of the preapproval lottery, Edina-based cannabis attorney Carol Moss said. It also does not affect the OCM’s current plan to hold social equity and general license lotteries later this spring. Instead, the order is related to procedural issues that must be decided before a court can rule on the merits of the cases, Moss said.

The OCM and the applicants who were granted entry into the preapproval lottery argue that the District Court lacked “subject matter jurisdiction” to make a ruling on the lawsuits in the first place. The OCM also argues that the entire issue was made moot by the cancellation of the lottery. The agency asked the Court of Appeals to make a ruling on the jurisdiction issue to help provide a road map for handling future disputes.

The Appeals Court order puts four lawsuits at the center of the District Court’s decision on hold until it can answer two key questions:

1. Does the OCM’s cancellation of the preapproval lottery render those lawsuits moot?

2. Who has jurisdiction over disputes about OCM decisions – District Courts or the Court of Appeals?

Courts will typically dismiss a case if there is no longer a dispute, but there are exceptions, Moss said. If the Appeals Court decides that the cancellation of the lottery does in fact make the lawsuits moot and there is no applicable exception, it will not make a determination on the second question, she added. 

The new order asks parties involved in the cases to file briefs related to these questions. The Appeals Court will hear oral arguments between March 11 and April 10. The court will then have 90 days to issue a ruling.

“[T]he order reaffirms the decision made by OCM to move forward with the standard licensing cycle,” OCM spokesman Josh Collins said in an email. “The timeline outlined in the order illustrates how long it would take for these cases to make it through the courts and made it clear that delaying the preapproval lottery would put a timely market launch at risk.”

Collins said the OCM remains on track to issue licenses this spring to applicants seeking license types that are not capped by law, such as microbusiness and delivery licenses, assuming rules are in place.

Was ESPN’s Pat McAfee drinking a Minnesota THC beverage on his show? Jason Dayton, co-founder of Minneapolis THC-infused beverage brand Trail Magic, confirmed in a LinkedIn post that former NFL kicker and current sports commentator Pat McAfee had a can of Trail Magic on his desk while filming Monday’s edition of "The Pat McAfee Show" before the Vikings-Rams game. This obviously raises many questions: How did McAfee come across Trail Magic? Was it an endorsement of the product? Does he have a favorite flavor? Sadly, efforts to reach McAfee for answers were unsuccessful. 

Public comment period opens for Minnesota’s draft marijuana regulations: The Minnesota's Office of Cannabis Management on Monday published a draft of proposed rules for its upcoming cannabis industry, and the public is invited to submit its feedback, Elliot Hughes reports. The public can submit comments online until 4:30 p.m. Feb. 12. Instructions on how to submit feedback can be found here. The draft of the proposed rules can be found here. The rules are expected to be adopted and in place in the first quarter of 2025. Read more.

Poor leadership undermines Minnesota’s cannabis market, equity efforts, writes Clemon Dabney: “Minnesota’s fledgling cannabis market has hit yet another roadblock. The Office of Cannabis Management has abandoned its first lottery designed to help social-equity applicants break into the industry. At the heart of this setback lies a troubling leadership gap — one that critics in the cannabis community blame on Gov. Tim Walz,” writes Minnesota Star Tribune opinion columnist Clemon Dabney in his latest op-ed. Read more. 

DEA judge cancels marijuana rescheduling hearings amid legal challenges: "The first hearings on the Biden administration’s marijuana rescheduling proposal that were set for next week have now been canceled following a legal challenge from pro-reform witnesses, a Drug Enforcement Administration (DEA) judge has ruled. While DEA Administrative Law Judge (ALJ) John Mulrooney rejected key arguments from rescheduling proponents about how alleged improper communications and witness selection decisions by DEA Administrator Anne Milgram warranted the agency’s removal from the process altogether, he ultimately granted a request for leave to file an interlocutory appeal —canceling the scheduled January 21 merit-based hearing and staying the proceedings for at least three months," Kyle Jaeger reports for Marijuana Moment. Read more. 

Today is the deadline to apply for Minneapolis cannabis technical assistance funding: You have until 4 p.m. to submit proposals for a new program to help low-dose hemp and adult-use marijuana businesses get up and running. A total of $30,000 is available for individuals or organizations with experience in the cannabis industry to provide “one-on-one support, mentoring, group trainings, workshops” or other assistance to new and existing businesses in Minneapolis. More info here.

Local government roundup: Here is a list of recent coverage of new cannabis ordinances across Minnesota. 

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Thanks to Pam in Bigfork for sharing her outdoor Green Crack Punch harvest. It weighed in at 1.5 pounds dry and "it's gooood stuff," Pam said. 

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Jan. 19 (Sun.): Light 'Em Up The Bong Show 3.0 - "The Hook hosts a unique and interactive comedy improv experience for Twin City comedy and cannabis fans!" Hosted by Ira Ford. 7 p.m. Hook & Ladder Theater, 3010 Minnehaha Av., Minneapolis. Tickets and more info.

Jan. 22 (Wed.): Free Grow Class - "A to Z on growing local Minnesota sungrown, indoor, etc. Featuring @NorthlandHash." 6 p.m. Gro's Smoke Shop, 907 N. 1st St., Hopkins. More info.

Jan. 23 (Thu.): High Pines Canna Club January Meetup - "Come hang out with us for a chill evening of good vibes and great company!" 5-8 p.m. Jack Pine Brewery, 15593 N. Edgewood Dr., Baxter. More info.

Feb. 6 (Thu.): Minnesota Dual-Training Pipeline Virtual Legal Cannabis Forum: "The legal cannabis industry forum is a great opportunity to learn about Minnesota Dual-Training Pipeline, review and discuss new draft competency model information for any potential new occupation(s) for the program in this industry, learn from others in the industry and network too." Registration required. 9-10 a.m. More info.

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