CHRONICLING LEGAL CANNABIS IN MINNESOTA
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CHRONICLING LEGAL
CANNABIS IN MINNESOTA
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In this week’s Nuggets: Five things to know about Minnesota’s draft cannabis regulations; what does Walz’s VP nod mean for the Office of Cannabis Management's director search; expungement is making social equity status difficult for some Minnesotans; Olmsted County limits number of cannabis businesses; the first year of legal home grow yields big returns for medical cannabis patients; and a former Democratic operative settles $1.2M debt with South Dakota cannabis growers.
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5 things to know about Minnesota’s draft cannabis regulations: Nuggets asked a handful of cannabis industry stakeholders to share anything interesting they found in the 111 pages of draft rules released last week by the Office of Cannabis Management (OCM). The 30-day public comment period for the first draft is open until Aug. 30. Changes will be made based on public feedback, and another public comment period will open before the rules are finalized, expected in early 2025.
Here’s a brief overview of some noteworthy items in the regulations.
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Potency limits for concentrates and other products: The draft rules would allow cannabis concentrates to contain no more than 70% THC. The weight of cannabis concentrates added to cannabis flower would not be allowed to exceed 30% of the weight of the flower. Topical cannabis and hemp-derived products could not contain more than 1,500 milligrams of THC per container.
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Production limits for cannabis businesses: Licensed cannabis manufacturers would not be allowed to produce more than 20,000 pounds of cannabis or an equivalent amount of concentrates. Mezzobusiness license holders would be capped at 10,000 pounds, while microbusinesses would be allowed to produce up to 3,000 pounds. Medical combination businesses, which will be allowed to sell to both adult-use and medical businesses, will be limited to 50,000 pounds of production, with at least two-thirds used for the medical market.
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Cultivators would have to acquire seeds and clones from "authorized sources": According to the draft rules, licensed growers would be required to obtain any seeds, clones or other cannabis plants from “a source authorized by the [OCM] for the sale of those products.” That would appear to prohibit cultivators from acquiring seeds or clones from out of state and growing them commercially. Seeds offered for sale in Minnesota must meet packaging and labeling requirements set forth by the state Department of Agriculture. Nuggets has reached out to the OCM for more information about its interpretation of this provision but did not hear back before publication.
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Tribal dispensaries could count toward retail license caps: State law allows cities or counties to limit the number of retail cannabis businesses licensed in their jurisdiction to no less than 1 per every 12,500 residents. The draft rules would allow local governments to count tribally licensed businesses within their borders – either on tribal land, or off, if a tribe enters a compact with the state allowing such businesses – against their license caps.
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Retail stores would not be required to have a separate waiting area: If you’ve ever visited a cannabis dispensary in another state, you know that employees often check your identification in a vestibule that is separate from the retail space before buzzing you in. There is no such requirement in the draft rules. “It’s going to be a lot more like shopping at a liquor store vs. visiting someone in jail,” Leili Fatehi, partner at Minneapolis cannabis consulting firm Blunt Strategies, wrote in an email.
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What does Walz’s VP nod mean for the OCM director search? Now that Gov. Tim Walz has been chosen as the Democratic vice presidential nominee, one might wonder what implications that has for the OCM, which still does not have a permanent leader more than a year after the agency was created. Interim Director Charlene Briner’s temporary contract was canceled in January when Walz formally appointed her to the role, according to documents obtained by Nuggets through a public records request. She is currently a salaried government employee until a permanent replacement is named — with no end date specified otherwise. Last month, Nuggets asked the OCM for a status update on the timing of any announcement, but none was offered. The wait continues …
Expungement making social equity status difficult for some Minnesotans: “Supporters of the legislation that is legalizing recreational cannabis in Minnesota are starting to wonder if two rights can make a wrong. Two pillars of the legalization effort are that people who were caught up in the enforcement of prohibition should have their criminal records expunged and that the same people and their communities should now benefit from the new industry. But in some cases expungement is making it harder for people with arrests and convictions to prove their status as social equity applicants,” Peter Callaghan reports for MinnPost. Read more.
Olmsted County limits number of cannabis businesses: “The Olmsted County Board of Commissioners has set a limit on the number of cannabis businesses, according to a press release from Olmsted County. No more than 14 cannabis businesses will be allowed to register. The release says that the Minnesota Office of Cannabis Management will license the businesses, and Olmsted County chose to require them to register for ‘additional local oversight.’ Furthermore, cities and townships in Olmsted County will be able to decide whether to allow more cannabis businesses beyond the 14 allowed by the county,” KAAL-TV reports. Read more.
First year of legal home grow yields big returns for medical cannabis patients: “While the state’s new cannabis laws have expanded who can qualify to be a medical patient and the number of patients in the state has increased in the past year, some medical patients are turning to growing their own to save money, control quality and spark joy,” Nicole Ki reports for MPR News. Read more.
Former Democratic operative settles $1.2M debt with South Dakota cannabis growers: “Former Minnesota DFL political operative Will Hailer paid $1.2 million to settle a lawsuit brought by two South Dakota cannabis companies and their investors accusing him of fraud. The case ends a two-year saga that began when Hailer approached 605 Cannabis founder Ned Horsted with an attractive business opportunity for him and the two founders of another cannabis company, Dakota Natural Growers. … Hailer still faces litigation — along with his business partner Tim Mynett, husband of U.S. Rep. Ilhan Omar — by an investor in the pair’s California winery, eStCru,” writes Max Nesterak for the Minnesota Reformer. Read more.
Did you miss last week's Nuggets? Read it here.
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CDC report finds teen marijuana use has fallen over past decade (Marijuana Moment) - Read more.
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Recreational cannabis sales begin in Ohio (Columbus Dispatch) - Read more.
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Maine utility company's proposal to rat out hidden marijuana grows raises privacy concerns (Associated Press) - Read more.
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Heavy cannabis use may increase risk of certain cancers, new study finds (NBC News) - Read more.
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Talk to us! We want to hear what you think about Nuggets. Send feedback, questions, events, story tips or new feature ideas to nuggets@startribune.com.
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Thanks to Chad in Rochester for showing us his outdoor grow! Chad writes that the two 9-footers on the right are White Widow and Purple Queen, while the shorter plants on the left are Critical Mass.
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Homegrowers, show off your plants! Share your best photo with us by clicking the button below or tag us on Instagram with #stribnuggets and we'll publish one each week in Nuggets. By submitting a photo you affirm that you own the rights to it and you are granting permission to the Star Tribune to publish it on its platforms.
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Aug. 10 (Sat.): Garrison Hemp Fest - Featuring more than 20 vendors, educational sessions and a special 4:20 p.m. celebration. The first 500 attendees will receive a free hemp tote bag. Presented by Canna Connect MN. 10 a.m.-6 p.m. Jake Regan Park, 9590 Washington St., Garrison. More info.
Aug. 11 (Sun.): Sensi Market - "Food trucks, drinks and refreshments, canna marketplace, live entertainment, home grow testing and more." Noon-4:20 p.m. Trichome Lounge, 3037 S. Lyndale Av., Minneapolis. More info.
Aug. 16-17 (Fri.-Sat.): CannaCon Midwest - "Our immersive Midwestern cannabis expo hosts numerous vendors from all facets of the cannabis industry." 10 a.m.-5 p.m. each day. St. Paul RiverCentre, 175 Kellogg Blvd., St. Paul. Tickets and more info.
Sept. 6-7 (Fri.-Sat.): Doobie Dabbler - The Great Green Get-Together will feature 100+ acres of activities, entertainment, education, vendors and more. Sever's Festival Grounds, 3121 W. 150th St., Shakopee. Tickets and more info.
Find more cannabis-related events at mnweedevents.com.
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Marijuana use and possession are now legal in Minnesota. Here's what to know. - Read more.
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A guide to Minnesota's new cannabis law - Read more.
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What you can and can't do with marijuana in your vehicle - Read more.
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What you need to know about cannabis crime expungement - Read more.
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Minnesota Office of Cannabis Management - Read more.
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