Minnesota is on the verge of launching its adult-use cannabis market as the Office of Cannabis Management (OCM) has submitted proposed rules for final approval. This submission was made to the Office of Administrative Hearings, and if approved by a judge, some cannabis businesses could begin operations within the next two weeks.
David Mendolia, owner of St. Paul Cannabis, is eager for the market to open. He envisions having cannabis flower prominently displayed in his store. Over 200 other business owners are also waiting for official guidance to start selling recreational marijuana.
Mendolia expressed concerns regarding the proposed potency limits on concentrate products, noting that these limits may not be suitable for a recreational market. The OCM initially published draft rules in January and gathered public feedback for 30 days. An administrative judge will now review the final draft to decide whether to approve it, make changes, or reject it entirely.
Interim OCM Director Eric Taubel highlighted the importance of this milestone, stating that the rules are now with an administrative law judge for final approval. He mentioned that once approved, prospective businesses can proceed to secure their cannabis licenses.
According to OCM officials, around 200 social equity applicants who were pre-approved for non-capped license types, such as single-location retailers, will be first in line for licenses once the rules are finalized. Jess Jackson, OCM’s director of social equity, noted that these applicants are poised to become the first cannabis business owners in Minnesota.
Lotteries will be held later this year for applicants seeking capped license types, with one lottery designated for social equity applicants and another for general applicants. The deadline to apply for these licenses was March 16, but no lottery dates have been announced yet.
Native American tribes have the opportunity to operate all types of cannabis businesses in the meantime. For instance, the Prairie Island Indian Community is establishing a 13-acre campus for cannabis operations located between Red Wing and Hastings.
The administrative law judge has 14 days to either approve, reject, or modify the draft rules. Mendolia expressed his desire for the process to move forward smoothly, stating, “I don’t want to see the store be delayed towards rec sales, but I would also not like to see a botched version of rules hurried through just so that we can get there.”
As the industry anticipates the finalization of the rules, Mendolia is optimistic about entering a billion-dollar market. He emphasized that once the rules are finalized, he will take the necessary steps to secure an approved site for his cannabis sales. Industry officials have indicated that more lotteries for capped license types, such as cultivators and manufacturers, will also occur later this year.
