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CHRONICLING LEGAL CANNABIS IN MINNESOTA

By Matt DeLong

In this week’s Nuggets: Want to add THC drinks to your home bar? Here are some tips; the Office of Cannabis Management sues Zaza stores in Minneapolis and St. Paul; the Mille Lacs Band hopes to start selling cannabis flower by early 2025; Bloomington sets retail regulations for cannabis sales; Kandiyohi County begins crafting a cannabis ordinance; Ex-OCM chief Erin DuPree is launching a new podcast; how to register for today’s social equity grant webinar; and Minneapolis consulting firm Blunt Strategies receives a prestigious international award for women in business.

Want to add THC drinks to your home bar? Here are some tips. With the holidays fast approaching, the Minnesota Star Tribune's Taste team is here to help you stock your home bar like a pro. This handy article includes a section dedicated to THC beverages – what to look for while shopping, what effects to expect, which foods to pair them with and best practices for serving to ensure everyone has a festive time without overdoing it. Read more.

OCM sues Zaza stores in Minneapolis and St. Paul: Minnesota Attorney General Keith Ellison’s office filed a pair of lawsuits this week on behalf of the Office of Cannabis Management (OCM) against the parent companies of Zaza Cannabis Dispensary stores in Minneapolis and St. Paul. The suits allege that the OCM seized more than $27,000 worth of noncompliant cannabis products – including vapes, concentrates and flower – from the shops. Many of the seized vapes and concentrates were produced by Minnesota-based brand Beez Wax, the complaints said. Some of the seized flower had certificates of analyses, or lab testing reports, containing inaccurate test results, while others had no lab reports at all, according to the complaints. The suits also accuse employees of attempting to covertly remove the illegal products from the stores in backpacks during inspections by the OCM. When asked by inspectors about illegal sales, the complaint alleges, an employee of the St. Paul store responded: “We’re giving the people what they’re asking for.” These are the first lawsuits brought by the OCM since the agency was created in 2023.

The parent companies of each store are owned by Darren Dado, according to the complaints. Both companies are registered to an address in north Minneapolis. The lawsuits seek court orders to destroy the seized products and to require the parent companies to pay the costs of destroying the products. Messages left with the Zaza stores received no response and efforts to reach Dado for comment were unsuccessful. 

OCM spokesman Josh Collins addressed the lawsuits in a statement Thursday: 

OCM’s regulatory approach has been to educate businesses towards compliance with the state’s hemp and cannabis laws. The office has set clear regulatory and enforcement expectations with businesses in this new industry, and in instances where operators continue to flout the law, OCM has taken escalating enforcement action, including product embargoes, voluntary destruction, and issuing civil fines.

In this case, despite repeated inspections, both routine and triggered by complaints, Zaza refused to comply with the law. The egregious nature of the violations required the office to escalate our enforcement action. OCM will continue its efforts to educate businesses, consumers and the public about the legal cannabis marketplace, and when necessary, take appropriate action to ensure a marketplace that operates with integrity and fidelity to the law.

It remains illegal to sell adult-use marijuana containing more than 0.3% THC by dry weight in Minnesota without a license from the state or a tribal government. The OCM is still setting up the regulatory framework for the state’s retail cannabis market and expects to begin issuing licenses in the first half of 2025. Collins said a finding against Zaza could disqualify the companies from receiving a cannabis license for five years and prevent them from converting their hemp-derived cannabinoid business registration to a low-potency hemp edible retailer license next year.

You can read the complaints here: Zaza Lake Street and Zaza Grand Avenue.

Mille Lacs Band hopes to start selling cannabis flower by early 2025: Drew Wood of Mpls.St.Paul Magazine has a deep dive on the Mille Lacs Band of Ojibwe’s numerous business interests, with a particular focus on tribally owned Lake Leaf Cultivation and its new 50,000-square-foot cannabis cultivation and processing facility. Joe Nayquonabe Jr., CEO of Lake Leaf’s parent company Mille Lacs Corporate Ventures, said the company’s head grower has “been doing this since Humboldt County days.” Lake Leaf was expected to start planting by early October, Wood reports, and “should have flower to bring to market by early 2025.” Read more.

Bloomington sets retail regulations for cannabis sales: “With the state preparing to issue retail cannabis sales licenses early next year, Bloomington City Council members have approved the retail limitations for those sales within their city. After discussion and negotiation, the council agreed during its Oct. 28 meeting that cannabis retailers will be restricted from setting up shop within 1,000 feet of a school, but otherwise will not be prohibited from setting up next door to one another in the commercial zoning districts where sales are permitted. The council voted 6-1 in favor of the business regulations with Councilmember Victor Rivas voting against them. … Under the City Code amendment approved by the council, cannabis businesses in Bloomington will be subject to inspection and compliance checks pertaining to the sales of their products. Their stores may be open 8 a.m. to 10 p.m. daily, except for Sundays, when the permitted hours for sales are 10 a.m. to 9 p.m., and there will be no cap on the number of licenses the city will issue, [Deputy City Clerk Matt] Brillhart explained,” Mike Hanks reports for the Sun Current. Read more.

Kandiyohi County begins crafting cannabis ordinance: “While the state is still working on the final regulations to govern the adult-use cannabis market in Minnesota, Kandiyohi County is creating its own ordinance to regulate the retail sale and use of cannabis and lower-potency hemp edibles within the county. The Kandiyohi County Board discussed the ordinance during a 90-minute work session on Tuesday, providing input on what should be included. … The draft ordinance, which was presented to the commissioners during their regular meeting on Tuesday and then discussed during the work session, covers themes such as registration and operations of registered retailers, fees, denial of registration, restrictions, compliance checks and use in public places,” Shelby Lindrud reports for the West Central Tribune. Read more.

Ex-OCM chief Erin DuPree launching new podcast: DuPree – who was appointed to be the OCM’s permanent director by Gov. Tim Walz in September 2023 only to step down one day later amid news reports that her Apple Valley hemp shop was selling illegal products – is launching a new, cannabis-focused podcast today. The “Higher Ground Potcast” is hosted by DuPree, Kimberly Perrine and Roxxi Bohn and will “explore the cannabis lifestyle with laugher, fun and education,” per the show’s website. The podcast already has a line of merch available for sale and will kick off with a ticketed launch party this evening in St. Paul. 

How to register for today’s social equity grant "listening session": As we reported last week, the OCM’s Division of Social Equity will host "listening sessions" to provide information about the state’s CanRenew and CanGrow grant programs. CanRenew is intended to provide money to eligible organizations that will then fund investments in communities disproportionately affected by cannabis prohibition. CanGrow will provide funds to organizations that will use the money to help cannabis cultivators navigate the rules and regulations of the cannabis market. The webinars will be held Nov. 15 (that’s today!) from 4:30-6 p.m. The second is slated for Dec. 10 from 4:30-6 p.m. Click here to register for today’s webinar. If you wish to submit a question in advance, you can do so here. 

Blunt Strategies receives prestigious international award for women in business: The Minneapolis-based cannabis consulting firm received the gold Stevie Award for Startup of the Year for Business Services Industries at the 21st annual Stevie Awards for Women in Business in New York City. The awards “recognize the achievements of women executives, entrepreneurs, and the organizations they run” worldwide. Helmed by founders Leili Fatehi and Laura Monn Ginsburg, Blunt Strategies led the MN Is Ready campaign to legalize marijuana in Minnesota and has helped shape legislation and regulations for the state’s emerging cannabis market. See the full list of winners here. 

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This Triangle Kush flower is 46 days into the flowering cycle, according to James from Minneapolis. The plant is growing hydroponically for a medical patient for whom James is a caregiver. Thanks for sharing!

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Nov. 16 (Sat.): Mad Professor - Dub reggae legend who has collaborated with Lee "Scratch" Perry, Massive Attack, Sade and more. Head Inna Bin (DJ set) & WNDOW open. 5-9 p.m. Trichome Lounge, 3037 S. Lyndale Av., Minneapolis. Tickets and more info. 

Nov. 19 (Tue.): 420 Bongo - "BONGO is a free version of bingo with 420-friendly prizes." 7 p.m. AEGIR Brewing Co., 19050 NW. Industrial Blvd., Elk River. More info. 

Nov. 21 (Thu.): Debbie Briggs Vintage Jazz - "A night of New Orleans-style jazz and speakeasy songs." With special guests the Monday Club. 7 p.m. Potshotz, 1553 W. University Av., St. Paul. Tickets and more info. 

Nov. 27 (Wed.): Friendsgiving Mocktail Mixer - "An evening of chill, uplifting fun as we celebrate Friendsgiving with an infused cocktail mixer." 7-8:30 p.m. Prana Plant Wellness, 5689 Duluth St., Golden Valley. More info. 

Find more cannabis-related events at mnweedevents.com.

Got questions about cannabis? 

Send them to us and we'll do our best to answer as many as we can in future newsletters.