Minnesota’s Legal Recreational Marijuana Industry: A Slow Roll
As the new year approaches, Minnesota’s legal recreational marijuana industry is still in its early stages. Despite the slow pace, the Office of Cannabis Management (OCM) is working to move forward with its plans. In a recent interview, OCM officials discussed the current state of the industry and what to expect in the coming year.
One of the main issues facing the industry is the delay in issuing licenses. The OCM had planned to hold a lottery for social equity applicants in November, but the process was halted by a Ramsey County judge. The judge ruled that the OCM’s lottery system was unfair and did not provide a level playing field for all applicants. As a result, the OCM has announced that it will hold two lotteries in 2025: one for social equity applicants and one for other applicants seeking permits for cannabis businesses.
The OCM is also scaling up its team, with plans to hire four high-level positions in the coming weeks. The office is hoping to have a more robust team in place to handle the increased workload as the industry grows.
When it comes to the timeline for the first dispensaries to open, the OCM is currently projecting that licenses will be approved in May or June, with businesses opening in late summer or early fall of 2025. However, this timeline is subject to change, and there may be other hiccups along the way.
Lawmakers have been quiet about their plans to streamline the industrialization of cannabis in Minnesota, but the issue is likely to be revisited during the upcoming legislative session. The lawmakers who wrote the initial legislation legalizing cannabis have expressed frustration with the delay in issuing licenses, and may look to take action to speed up the process.
Tribal nations are also playing a significant role in the industry, with several tribes already operating large grow facilities and dispensaries. The state and tribal nations are working together to establish compacts, which will outline the rules for the sale of cannabis products between the state and tribal nations. These compacts are expected to be signed by the governor in the coming weeks.
Cities are also taking different approaches to the cannabis industry, with some, like Mankato, taking a more cautious approach by limiting the number of high-potency retailers. Other cities, like Le Sueur, are welcoming the industry and seeing it as a potential source of economic development.
The OCM believes that tribal nations will likely have the capacity to grow enough cannabis flower to help support the state’s commercial market.
