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CHRONICLING LEGAL CANNABIS IN MINNESOTA

By Matt DeLong

In this week’s Nuggets: Minnesota regulators destroyed nearly $1.5 million in illegal cannabis products in 2024; the OCM recommends law changes in 2025 legislative session; a group of applicants ask the Minnesota Court of Appeals to reinstate the canceled prepproval lottery; former OCM chief Charlene Briner says she’s “tired”; the feds charge ex-cannabis exec with insider trading tied to Minneapolis-based Vireo Growth merger; ex-DEA Special Agent Derek S. Maltz appointed acting DEA administrator; and a roundup of cannabis news from local governments across the state.

Minnesota regulators destroyed nearly $1.5M worth of illegal cannabis products in 2024: The Office of Cannabis Management released its annual report to the Legislature last week, detailing the agency’s enforcement efforts related to cannabis and hemp businesses in the state. Here’s a summary:

OCM recommends law changes in 2025 legislative session: The OCM report also includes a handful of recommendations for the current legislative session. Compared with last year’s changes, which included the creation of the social equity preapproval lottery process that ended with lawsuits in late 2024, the recommendations are relatively small. Many focus on technical fixes, removing redundancies and clarifying or eliminating inconsistencies in the law. The OCM also recommends strengthening protections to prevent discrimination against medical cannabis patients and adding the OCM to the list of state agencies that are authorized to engage on policy matters with Minnesota’s 11 tribal nations.

Applicants ask Minnesota Court of Appeals to reinstate canceled preapproval lottery: The court drama over Minnesota’s canceled social equity cannabis license preapproval lottery continues. After the Minnesota Court of Appeals last week lifted a lower court’s order that delayed the lottery before it was ultimately canceled in late November, a group of social equity applicants who were granted entry to the lottery responded this week with a motion asking the Appeals Court to order the OCM to move forward with the preapproval lottery for the 648 applicants who qualified.

The applicants say they were harmed by the lottery’s cancellation because they invested significant amounts of money preparing for the lottery and the eventual launch of their businesses. They argue that while the law allowed the OCM to launch a preapproval process at its discretion, once the OCM started down that path the statutory language required the OCM to actually hold the lottery. The applicants are also seeking damages, attorney fees and other costs.

Meanwhile, a group of applicants who were denied entry into the preapproval lottery this week dropped their lawsuit against the OCM. Several other lawsuits from other applicants who say they were denied unfairly remain active. 

The Appeals Court will hear oral arguments between March 11 and April 10 on whether the OCM’s cancellation of the preapproval lottery rendered those lawsuits moot and who should have jurisdiction about OCM decisions — District Courts or the Appeals Court.

Former OCM chief says she’s “tired”: Former OCM interim director Charlene Brinder gave an exit interview to MPR News to talk about her tenure as the state’s top marijuana regulator and the reasons for her departure. Eric Taubel, previously the OCM’s general counsel, officially took the reins as interim director last Friday. Read more.

Feds charge ex-cannabis exec with insider trading tied to Minneapolis-based Vireo Growth merger: “Federal prosecutors have indicted a former executive with cannabis multistate operator Verano Holdings Corp. on a charge of insider trading. Anthony Marsico, 39, a former executive vice president at the Chicago-based MSO, allegedly used privileged information regarding a pending merger of Verano and Vireo Growth to collect a six-figure profit, according to a Tuesday news release from the U.S Attorney’s Office, Northern District of Illinois,” MJBizDaily reports. Read more.

Ex-DEA Special Agent Derek S. Maltz appointed acting DEA administrator: “The appointee said in May that if science supports cannabis rescheduling ‘then so be it,’ but that it’s ‘crystal clear’ that ‘the Justice Department hijacked the rescheduling process, placing politics above public safety,’ ” Noelle Skodzinski reports for Cannabis Business Times. Read more. 

Local government roundup: 

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Jan. 26 (Sun.): Licensing Working Session - "If you’re navigating the complexities of cannabis licensing, this is the place to be. Gain invaluable insights, connect with industry professionals, and get your questions answered as we pave the way for Minnesota’s craft cannabis community." Presented by MN Craft Cannabis Guild. 4-8 p.m. CannaJoyMN, 4753 S. Chicago Av., Minneapolis. More info.

Jan. 27 (Mon.): Low-Potency Hemp Edible Webinar - "OCM will host an informational webinar to guide current and prospective low-potency hemp edibles retailers and manufacturers." Registration required. 4-5 p.m. More info.

Jan. 29 (Wed.): Canna Club Happy Hour - "Come enjoy the wide array of Flying High Cannabis Co.'s THC beverages, along with samples of new and upcoming projects from us and our friends!" 5-9 p.m. Earl Giles Mezzanine, 1325 N.E. Quincy St., Suite 100, Minneapolis. 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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