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NUGGETS

CHRONICLING LEGAL CANNABIS IN MINNESOTA

By Matt DeLong

In this week’s Nuggets: Compacts could give Minnesota tribes an early foothold in state’s pot market; what you need to know about the draft tribal cannabis compact that surfaced this week; OCM chief details 2025 legislative proposals; window to submit cannabis business license applications opens Tuesday; OCM launches CanRenew grant program for communities harmed by cannabis prohibition; and a roundup of local government news.

Compacts could give Minnesota tribes an early foothold in state’s pot market: Minnesota’s 11 tribal nations each would be allowed to license up to five retail cannabis dispensaries outside their reservations under long-awaited compacts with the state, according to a draft of one such agreement obtained by the Minnesota Star Tribune. The compacts could give tribal businesses — some of which have been operating on reservations since Minnesota’s law legalizing adult-use marijuana took effect in August 2023 — an even greater advantage over state-licensed marijuana businesses. Read more. (Gift link!)

What you need to know about the draft tribal cannabis compact

Each tribe must negotiate its own compact with the state. The language in the draft is not final and could change.
In addition to five off-reservation retail stores, the draft agreement would allow tribes to license one manufacturing facility, subject to state production limits, and multiple cultivation facilities with a cumulative total of 30,000 square feet of plant canopy.
All cannabis sold outside tribal lands would be required to be tested by a state-licensed facility.
Tribally licensed businesses would be able to negotiate agreements with the state to collect and share tax revenue.
Tribes would be required to own at least 51% of licensed cannabis businesses outside of tribal lands. Tribally licensed businesses could share ownership with state-licensed businesses or out-of-state companies.
Tribes would be exempt from state law that prohibits many cannabis businesses from controlling the entire supply chain, from cultivation to retail sales, also known as vertical integration.
Tribally licensed businesses would also be exempt from local cannabis ordinances, unless the local rules are less restrictive than those in the compact.
State and tribally licensed businesses would be allowed to buy and sell cannabis products to one another.
The Office of Cannabis Management (OCM) said it expects the first tribal compact to be finalized by March.
Zach Wilson, the CEO of White Earth Nation's cannabis company Waabigwan Mashkiki said last week that the tribe hopes to open the state's first off-reservation, adult-use marijuana dispensary in Moorhead in mid-March and another in St. Cloud later this spring.

OCM chief details 2025 legislative proposals: OCM Interim Director Eric Taubel briefed the House Commerce Finance and Policy Committee on Tuesday to give a status update on the agency’s progress toward launching a legal marijuana market, as well as its legislative recommendations at the state Capitol this year. The OCM is seeking a budget increase of $278,000 in fiscal year 2026 and $564,000 each year thereafter to cover things like employee compensation, rents, IT services and other operating costs. Taubel noted this would represent an increase of 1.5% and 2.5%, respectively, in the agency’s operating budget. The OCM is proposing to license cannabis testing facilities while they are in the industry certification process, which could take up to 24 months, to help meet the demand for testing services when the market launches. The agency is also asking the Legislature to update the social equity criteria to include people who received stays of adjudications or adjudications of delinquency for cannabis-related crimes. You can read a summary of Taubel’s presentation from the Minnesota House’s Public Information Services. You can also watch it here.

Window to submit cannabis business license applications opens Tuesday: Prospective entrepreneurs can submit applications for most social equity and general cannabis business license types from Feb. 18 until March 14. Applications for cannabis event organizer, lower-potency hemp edible manufacturer and lower-potency hemp edible retailer licenses will not be accepted at this time, so watch for updates on those license types later this year. Social equity applicants who were denied entry to the canceled preapproval lottery and did not request a refund of their application fee will receive requests for more information from the OCM and will be allowed to correct a broader range of errors in their applications than during the preapproval process. Two lotteries — one for social equity applicants and another for general applicants — are expected to be held later this spring. More information about the application process and limits for some license types can be found here.

OCM launches CanRenew grant program for communities harmed by cannabis prohibition: The OCM this week began soliciting proposals for its $1 million CanRenew grant program, which will provide community restoration grants to organizations that will make investments in communities where residents are eligible to be social equity applicants. Grants will range from $50,000 to $200,000 for projects related to economic development, public health, violence prevention, youth development and legal aid, according to a news release. The grants are not intended to support cannabis businesses or for revenue-generating projects. The deadline to apply is March 24. Three informational webinars about the program will be held on Feb. 21, March 5 and March 11. More information can be found here.

Local government roundup

Did you miss last week's Nuggets? Read it here.

AROUND THE WEB

Moorhead shop owners say tribe-owned cannabis dispensary could put them out of business (Grand Forks Herald)
Minnesota lawmakers again look to repeal taxes on illegal drug sales that no one pays (MinnPost)
Russia releases U.S. teacher held for 3 1/2 years after being found with medical cannabis (NBC News)
This controversial brand sells the most weed in America (GreenState.com)

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FROM THE GARDEN

Thanks to Heather in Maplewood for sharing this close-up shot of a Mandarin Cookies cola that was grown indoors and harvested in October.

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CALENDAR

Feb. 16 (Sun.): Light 'Em Up The Bong Show 4.0 - "A unique and interactive comedy improv experience for Twin City comedy and cannabis fans." 7-10 p.m. Hook and Ladder Theater, 3010 Minnehaha Av., Minneapolis. Tickets and more info.

Feb. 18 (Tue.): Exclusive Cannabis Law Meet-Up - "We’ll dive into the dynamic world of cannabis law in Minneapolis and help you expand your professional network." Open to cannabis business owners, entrepreneurs, compliance managers and more. 4:30-6 p.m. Modist Brewing, 505 N. 3rd St., Minneapolis. More info.

Feb. 20 (Thu.) High Pines Canna Club - "Join us for a chill night of networking and connecting with fellow cannabis enthusiasts!" Presented by Canna Connect MN. 5-7:30 p.m. Jack Pine Brewery, 15593 N. Edgewood Dr., Baxter. More info.

Feb. 24-25 (Mon.-Tue.): Radical Black Future Series: Rewriting Liberation with Codes and Cannabis - "We’re tapping into AI technology and cannabis as our tools to create systems that heal, empower and liberate." Presented by African American Leadership Forum. 5-8 p.m. Walker Art Center, 725 Vineland Pl., Minneapolis. Tickets and more info.