The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

This week’s Pre-Roll is different. To close out the year, we’re breaking from our usual format and dedicating this issue entirely to the most pressing developments in Minnesota’s cannabis licensing process. With legal challenges and timeline adjustments dominating the conversation, we’ve decided to make this issue paywall-free to ensure everyone has access to these critical updates and insights.

Whether you’re an applicant, advocate, or industry observer, this special edition is here to provide clarity on where things stand—and what’s coming next.

OCM Abandons Pre-Approval: What It Means and What Happens Next

The Minnesota Office of Cannabis Management (OCM) announced last week that it is abandoning the social equity license preapproval process and will be moving directly to the first standard licensing cycle for social equity and general applicants starting in early 2025​. OCM released the following timeline for that upcoming licensing cycle, the details of which we delve into below:

Per the OCM, this decision follows a court-ordered stay on the preapproval lottery, creating delays and disrupting the intended early-mover advantage for social equity applicants.

Here’s a clear breakdown of what this means for applicants in different situations and what to expect moving forward:

1. For Applicants Accepted Into the Preapproval Lottery

If you were among the 648 applicants who qualified for the license preapproval lottery:

• Your application automatically moves forward into the new standard licensing process set to begin on February 18, 2025. If you wish to withdraw your application for any reason, you must do so by January 10, 2025 in order to receive a refund of your application fee.

• If you applied for uncapped license types (such as microbusinesses), you will not be subject to another lottery. Instead, you’ll proceed through the licensing steps as soon as OCM finalizes rulemaking. These steps include:

  • Submitting a labor peace agreement attestation.

  • Completing a background check.

  • Securing property and obtaining local approvals​​.

• This streamlined process means applicants for uncapped licenses may begin operations as early as spring 2025 if they complete all requirements.

• If you were an applicant for a capped license types (like retail licenses), your application will automatically enter the standard licensing cycle’s social equity lottery, anticipated to be held in May or June of 2025. If unsuccessful in that round, your application will then be entered into the general lottery​ to be held shortly after the social equity lottery.

2. For Applicants Rejected in the Preapproval Process

If your application for license preapproval was denied:

• You will have the opportunity to resubmit your application during the standard licensing cycle, which opens on February 18, 2025 and ends March 14, 2025. Applicants who choose not to move forward in the next licensing cycle can request a refund of their application fee by January 10, 2025.

• To assist applicants, OCM will issue a Request for More Information (RFMI) in February. This process will allow applicants to correct errors or provide additional documentation that may have been lacking in the initial submission​.

• If you are an applicant for a capped license type and your re-submitted application is accepted, you will entered into the standard licensing cycle’s social equity lottery, anticipated to be held in May or June of 2025. If unsuccessful in that round, your application will then be entered into the general lottery​ to be held shortly after the social equity lottery.

• If you are an applicant for an uncapped license type and your re-submitted application is accepted, we are still waiting on additional details from OCM as to the timeline and process by which your application will be handled.

3. For Those Who Didn’t Apply for Preapproval

If you did not apply for preapproval:

• You can still participate in the upcoming standard licensing process. Applications for both social equity and general applicants will be open from February 18 to March 14, 2025.

• Social equity applicants must verify their eligibility during a verification window, which runs from January 15 to January 30, 2025​.

• If you are verified as a social equity applicant and your license application for a capped license type is accepted, you will entered into the standard licensing cycle’s social equity lottery, anticipated to be held in May or June of 2025. If unsuccessful in that round, your application will then be entered into the general lottery​ to be held shortly after the social equity lottery.

• If you are verified as a social equity applicant and your license application for a uncapped license type is accepted, we are still waiting on additional details from OCM as to the timeline and process by which your application will be handled.

• If you are not a verified as a social equity applicant and your license application for a capped license type is accepted, you will entered into the standard licensing cycle’s general lottery, anticipated to be held in May or June of 2025 shortly after the social equity lottery.

• If you are not a verified as a social equity applicant and your license application for a uncapped license type is accepted, we are still waiting on additional details from OCM as to the timeline and process by which your application will be handled.

Expert Commentary: Fast-Tracking Microbusinesses Is a Big Win for Social Equity

In the wake of OCM’s decision to abandon the pre-approval process and move toward standard licensing, the implications for microbusinesses and other uncapped license applicants are significant. Cannabis attorney and Cannabis Advisory Council member Carol Moss offers her perspective on why this outcome is a major step forward for positioning microbusinesses to secure prime retail locations ahead of larger competitors, and what it means for building the foundation of Minnesota’s craft cannabis industry.

The latest updates from the Office of Cannabis Management (OCM) signal a significant win for applicants pursuing uncapped license types, particularly microbusinesses. Of the 648 pre-approval lottery applicants, about 200 were for uncapped licenses, and 193 of those were microbusinesses. These applicants are now positioned to move straight into preliminary licensing as soon as rulemaking wraps up, putting them on track to secure final site approval as early as spring 2025.

This is an excellent outcome for microbusinesses and other uncapped license applicants. It not only fast-tracks those who qualified in the pre-approval round but also creates a clear pathway for those who were denied to cure their applications during the February Request for More Information (RFMI) process. Importantly, this step should insulate uncapped licenses from ongoing or future litigation surrounding lottery entry for capped licenses, providing much-needed certainty for small businesses aiming to enter the market.

The advantages for social equity microbusinesses go even further. Most cities have implemented caps on the number of dispensaries allowed within their jurisdictions, and many will allocate licenses on a first-come, first-serve basis. By moving ahead of mezzobusinesses and retail applicants in the licensing process, microbusinesses will have a clear head start in securing prime locations for their stores. This early access to high-traffic areas could make all the difference in positioning these businesses for success.

More importantly, microbusiness licenses are far more likely to be held by local, small businesses compared to larger applicants vying for mezzobusiness or retail licenses. This creates an opportunity to lay the foundation for a thriving craft cannabis industry in Minnesota, led by social equity applicants—the very group legalization was designed to uplift. For these small businesses, early site approval and operational readiness are critical to establishing a foothold in the market before bigger players enter the fray.

While the road has been bumpy, this scenario reflects a critical step toward achieving one of the core goals of legalization: ensuring that social equity applicants, particularly those running local and craft-focused operations, are set up to thrive in Minnesota’s emerging cannabis industry.

Legal Challenges from Both Sides: What’s Happened & What Might Be Next

The Lawsuits That Halted the Lottery

According to OCM, the decision to abandon the pre-approval process stems directly from a stay issued last month the day before the preapproval lottery was scheduled to take place by a Ramsey County District Court judge in response to several lawsuits filed by applicants whose applications for pre-approval were rejected. The plaintiffs in these lawsuits fall into two broad categories:

• Good-Faith Applicants and Technical and Procedural Errors: Some plaintiffs claimed they were unfairly denied pre-approval due to minor or technical mistakes, such as incomplete documentation or formatting issues, which they argue could have been corrected if given the opportunity. These applicants allege that OCM’s process lacked transparency and failed to provide sufficient opportunities to cure deficiencies—a procedural gap they believe should have been rectified.

• Bad-Faith Applicants and “Straw Applications”: On the other end of the spectrum, OCM identified applications that allegedly violated the rules against duplicate submissions or breached “true party of interest” requirements. These cases point to bad actors attempting to game the system by submitting multiple straw applications or hiding ownership information to gain an unfair advantage.

Plaintiffs from both categories sought a Temporary Restraining Order (TRO) to prevent the pre-approval lottery from proceeding. However, during a hearing held the day before the scheduled lottery, the district court judge declined to issue the TRO because, as clearly stated in statute, OCM’s preapproval decisions are non-appealable, meaning the court lacked subject matter jurisdiction to determine whether OCM acted improperly in excluding the plaintiffs from the lottery.

Instead, the judge issued a stay—a temporary pause on the pre-approval process—to give the plaintiffs time to file their challenges with the Court of Appeals.

Challenges to the Stay from Lottery-Approved Applicants

Hours before OCM announced its decision to abandon preapproval, a group of applicants accepted for the preapproval lottery filed a petition with the Court of Appeals arguing that the district court lacked the jurisdiction to issue the stay in the first place and asking for that stay to be lifted.

To expedite a resolution, this group also filed a motion for expedited consideration last Friday. Their goal is to secure a ruling that clears the legal path for the pre-approval lottery to proceed. While their petition does not compel OCM to act, a favorable ruling could allow these applicants to pursue additional legal remedies seeking to force OCM to hold the preapproval lottery.

Other Tidbits to Note:

• One lingering question is why OCM itself did not challenge the stay, given its shaky legal footing and the agency’s continued defense of its preapproval process. The answer may lie in political direction from Governor Tim Walz. In an interview last week, Walz suggested that he may have instructed OCM not to contest the stay, telling them to “go on the normal time frame” instead. In other words, rather than prolonging the legal fight, the Governor directed OCM to abandon pre-approval and pivot to the standard licensing cycle beginning in early 2025 .

• When the lawsuits seeking to halt the preapproval lottery were first filed, we argued that it was a strategic misstep for the good-faith applicants whose applications had been rejected that risked leaving those applicants in an even worse position. Specifically, we warned that if a court or OCM ultimately decided to abandon the preapproval process, it would:

  1. Undermine Social Equity Applicants in Capped License Types: By eliminating the pre-approval lottery, the ~400 applicants approved for preapproval in capped license categories—such as retail licenses—would be thrown back into the same licensing pool as rejected applicants and entirely new applicants who had not applied for preapproval at all. This decision would increase competition for capped licenses in the first licensing round, reducing the chances of success for all social equity applicants.

  2. Delay Early Cultivation and Market Readiness: Scrapping preapproval would significantly delay critical early cultivation, which is essential to ensure a stable and sufficient product supply at market launch. Without this early cultivation, the resulting delays would ripple across the industry, increasing the likelihood of:

     • Empty dispensary shelves.

     • Weakened market momentum.

     • Eroded consumer confidence.

     These disruptions harm all applicants, but small businesses and social equity applicants—who rely on predictable timelines to plan, prepare, and compete—would bear the brunt of the fallout.

  3. Weaken True Party of Interest Safeguards: By shifting to the broader licensing process, OCM could face increased challenges to identifying and eliminating bad-faith actors. The preapproval process was designed to rigorously vet applicants and enforce true party of interest rules, which prevent sham applicants and concealed ownership structures. Without preapproval as a gatekeeping mechanism, the broader licensing round becomes far more vulnerable to manipulation and exploitation by those seeking to circumvent the rules.

  4. Create a Poor Narrative Heading Into the Legislative Session: The lawsuits, the stay, and the subsequent abandonment of preapproval risk fueling a damaging perception that Minnesota’s cannabis licensing process is unworkable. This false narrative could embolden bad-faith actors to push for harmful legislative changes, such as weakening social equity protections and true party of interest laws. If left unchecked, these efforts could undermine the very goals of legalization—an equitable, sustainable, and locally-driven cannabis market.

  Well, now that OCM has scrapped pre-approval, it seems those plaintiffs have finally landed on the same conclusion—though their regret is curiously expressed as frustration with OCM for doing exactly what they asked the court to force them to do.

We’ll be back here in 2025, continuing to track developments, hold decision-makers accountable, and advocate for the fair and equitable cannabis industry Minnesota was promised. Until then, take a deep breath and a well-earned pause—next year promises to be a big one.

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Top 5 Must Reads (or Watch)

1. Minnesota's Office of Cannabis Management (OCM) has rejected about 1,150 of the 1,817 applications submitted for social equity license pre-approval. OCM attributed the rejections to various issues, including incomplete documentation, violations of ownership and “true party of interest” requirements, and attempts to manipulate the system by submitting multiple or fraudulent applications. Interim Director Charlene Briner explained that the application process serves as a proxy for readiness to operate in a highly regulated market. Attorneys for rejected applicants have criticized the OCM for inadequate communication about the reasons for rejections, which cannot be appealed under state law. Applicants whose applications have not yet been rejected will receive final confirmation about whether their application will proceed to the lottery, expected to take place the week of December 2, which will allocate 280 pre-approval. Applicants receiving pre-approval via the lottery will not yet receive an operational license but, rather, the guarantee of an operational license upon submitting final plans and securing necessary local government approvals. For cultivators, pre-approval may also allow early planting to ensure readiness for market openings in the spring.  [Read more: MinnPost]

2. Lawsuits should be expected as some lawyers representing applicants argue some of the rejections were based on minor errors or inconsistencies. [Read more: MPR News]

Exclusive Insights You Won’t Find Anywhere Else: Earlier this fall, the Office of Cannabis Management (OCM) issued deficiency notices to some license pre-approval applicants, granting them 5-15 days to address specific issues. Yet, many applicants rejected for technical errors reported never receiving such notices, raising a critical question: under what circumstances did OCM decide to issue deficiency notices, and when did it choose not to? OCM’s explanation, as forwarded to us by a rejected applicant, and our analysis of what it reveals about OCM’s next steps and the potential viability of lawsuits or other challenges are available in the premium section.

3. As first reported in last week’s Pre-Roll, the Minnesota Office of Cannabis Management (OCM) has taken legal action against Zaza Cannabis Dispensary, marking the agency’s first lawsuit against a cannabis retailer. The lawsuit, filed in Hennepin and Ramsey County courts, accuses Zaza of selling products with THC levels over 70 times the state’s legal limit and attempting to conceal non-compliant items during inspections. Inspectors documented incidents where Zaza employees reportedly smuggled products out through back doors in backpacks to evade seizure. The OCM seeks a court order for the destruction of the illegal products, which have a retail value of approximately $20,200, and for Zaza to cover all related costs, including court and destruction expenses. The case underscores the OCM’s commitment to enforcing compliance in Minnesota’s regulated cannabis market. [Read more: Star Tribune]

4. The Office of Cannabis Management hosted a virtual listening session on the state’s CanRenew and CanGrant programs last Friday, November 15. CanRenew will award grants to eligible organizations for investments in communities where long-term residents are eligible to be social equity applicants. CanGrow will award grants to eligible organizations to help farmers navigate the regulatory structure of the legal cannabis industry, and nonprofit corporations to fund loans to farmers for entry and expansion into the legal cannabis industry. [Watch recording: Minnesota Cannabis College]

5. A University of Minnesota health survey revealed a decline in high-risk drinking and a rise in cannabis use among students, reflecting a cultural shift. Students cited control, safety, and fewer hangovers as reasons for preferring cannabis over alcohol. [Read more: Minnesota Daily]

Upcoming Events

Firewall for Freedom hosted by the ACLU-MN with special guest Attorney General Keith Ellison. November 25, 2:30 PM via webinar.

American Cannabis Nurses Association Regional Meet Up. December 6, 6:30 - 9 PM in St. Paul.

The premium content that follows is available exclusively to our paid subscribers.

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Top 5 Must Reads

1. The Iron Range Resources & Rehabilitation Board (IRRRB) recently reviewed an amendment to Hwy 35’s cannabis cultivation and manufacturing facility project to allow Hwy 35 to lease portions of its Grand Rapids facility to other licensed cannabis businesses. Initially, the $67.8 million project, supported by a $10 million IRRRB loan, was intended for Hwy 35’s exclusive operation, but the amendment introduces a model where smaller cannabis operators can lease space within the facility. Under this revised structure, tenant employees would also contribute to Hwy 35’s job creation targets, helping the project meet its goal of creating 400 new jobs. [Read more: IRRRB meeting packet and slides]

   
   For our take on how this shift could reshape Minnesota’s cannabis landscape—and what it signals about Hwy 35’s business strategy—head over to the paid section for exclusive commentary and analysis.

2. The Minnesota Office of Cannabis Management (OCM) has filed a lawsuit against Zaza Lake St, LLC, for allegedly selling illegal cannabis products and attempting to conceal these activities during inspections. According to the complaint, the OCM received multiple consumer complaints about Zaza Lake St and its affiliated store, Zaza Grand Ave, selling products with THC levels far exceeding Minnesota’s legal limit of 0.3% for hemp-derived products. Inspectors reportedly observed employees removing non-compliant items from the premises in backpacks to evade inspection, a tactic noted in previous inspections as well.

   
   During a recent September 2024 inspection, OCM inspectors embargoed and tested various products from the Zaza stores, including Beez Wax vapes and cannabis flower products, some of which contained THC levels up to 70 times above the legal limit. The complaint details numerous non-compliant Beez Wax vape products in various flavors, each exceeding 0.3% THC, as well as other high-THC items such as Hawaiian Haze and Bubba Kush flowers. The OCM seeks a court order to destroy these products and require Zaza Lake St to cover all associated destruction and court costs. [Read more: OCM Complaint]

   
   For a closer look at what this lawsuit could mean for enforcement and compliance in Minnesota’s cannabis market, check out our exclusive commentary and analysis in the paid section.

3. Erin DuPree, Minnesota’s infamous one-day cannabis czar, is set to launch a new cannabis podcast, Higher Ground, tomorrow. This new venture comes after her controversial one-day tenure as the state’s cannabis czar ended when news surfaced that her store, Loonacy, had sold illegal THC products and that she owed tens of thousands of dollars in tax liens and business debts. The podcast promises to bring a “real talk” approach on cannabis and business topics, with DuPree contributing her wisdom as a self-described “Business Consultant | Cannabis Coach | Travel Agent | Organic CBD Advocate | Professional Networker.” DuPree’s diverse professional background also includes kitchen renovation consulting and running a cleaning business.

   
   For those who’ve followed Minnesota’s cannabis journey, this launch serves as a reminder that sometimes, a quick exit just opens the door to a new, er,.....platform.

4. In a post-election commentary, Dr. Clemon Dabney  III discusses how election outcomes have shifted the dynamics of cannabis policy in Minnesota. With an evenly divided state House and a narrowly DFL-held Senate, passing further cannabis reforms may become more complex. While a split Legislature could slow down new cannabis-related initiatives, Gov. Tim Walz’s re-election offers some stability, as he could veto restrictive measures, providing continuity for the industry. Dr. Dabney emphasizes that advocates will need to seek bipartisan support to advance policies such as social equity measures and regulatory adjustments. The article underscores a call for collaboration among stakeholders to build a regulatory environment that sustains Minnesota’s cannabis industry amid these changing political dynamics. [Read more: Star Tribune]

5. A number of states had drug policy initiatives on their ballot during last week's election—some winners, some not. Our neighbors to the west, North and South Dakota, both voted against legalizing adult use cannabis. Nebraska voters overwhelmingly passed two medical cannabis initiatives in their state. In Florida, a majority of voters favored legalizing cannabis for all adults, but due to a requirement that state constitutional initiative amendments must receive 60% support, the ballot measure barely failed. Massachusetts voters considered and rejected Question 4, which aimed to legalize certain psychedelic substances, including psilocybin mushrooms, for use in licensed therapy centers. [See more: New York Times]

   • In addition to these state initiatives, cities and counties in Kentucky resoundingly voted in favor of allowing medical cannabis sales to happen in their jurisdictions and three cities in Texas, including the third largest city of Dallas, voted to decriminalize personal possession of cannabis. [See more: Courier-Journal and TX Cannabis Collective]

Next week, we’re bringing you a special post-election edition of The Pre-Roll, packed with in-depth federal and state analysis of the election outcomes. Stay tuned for insights on how the new political landscape may shape cannabis policy in Minnesota and beyond!

The premium content that follows is available exclusively to our paid subscribers. Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but this week we’re treating all readers to the full edition! Dive into the most in-depth legislative and agency updates, industry news and intelligence, and expert insights usually reserved for our paid subscribers. Enjoy this exclusive peek behind the scenes, and if you like what you see, consider upgrading your subscription to keep unlocking our premium content every week.

Subscribe now

Announcements

• Looking for pro-cannabis candidates to support? Check out MN Cann Political Action’s list of endorsed candidates! Built on the momentum of MN is Ready, the campaign that helped deliver Minnesota's pro-legalization majority, MN Cann Political Action is dedicated to shaping Minnesota’s cannabis industry by backing candidates committed to advancing a fair and sustainable local cannabis industry, as well as other sensible drug policy reforms.

• For the past two weeks, we shared a link asking for donations to a silent auction benefit for the family ofSamuel Poquette, a Minnesota cannabis activist and entrepreneur who passed away earlier this month. Theauction is open for bidding at 12:00 PM on November 1, 2024 through 8:00 PM on November 8, 2024. Items include gift baskets from local businesses, asigned Up in Smoke script,Ouija Macc 3HM stage worn jersey, aVikings memorabilia lot, and much more. Additionally, organizers are giving awaya pair of tickets to the Dirtwire Show tonight, November 1st at First Ave; each dollar donated gets you an entry. You can also contribute directly to Sam’s family throughGoFundMe.

Top 5 Must Reads

1. The Minneapolis City Council approved zoning rules for cannabis businesses, opting not to include a distance requirement between dispensaries. Council members Aurin Chowdhury and Emily Koski introduced the amendment to eliminate the proposed 300-foot distance requirement, aiming to support local hemp retailers transitioning to dispensaries who might otherwise be edged out by competitors due to buffer restrictions. Emphasizing cannabis legalization as a step toward remedying past criminalization harms, Chowdhury said, “Legalization is a part of remedying that harmful legacy, specifically to people who are incarcerated for low-level drug crimes, and the way that cannabis has been perceived in our country. Having a higher restriction on spacing from schools, from liquor stores, felt a way of saying one is more moral than the other, and that was something that was discussed in the planning commission.” The final regulations maintain a 300-foot buffer from K-12 schools, aligning cannabis rules with those for liquor stores, and prohibit outward advertising of cannabis products. Read more: MPR News

2. A new poll shows that most marijuana consumers plan to vote for Kamala Harris over Donald Trump, despite both candidates expressing support for legalization. Harris seems to have stronger appeal among cannabis-friendly voters, likely due to her focus on social justice and equity in cannabis reform—issues that resonate with this demographic. Read more: Marijuana Moment

3. As cannabis legalization measures appear on ballots in Florida, North Dakota, South Dakota, and Nebraska this November, advocates are cautiously optimistic, but a formidable "red wall" may pose challenges. With Republican dominance in these states, particularly those without ballot initiative processes, cannabis reform faces uphill battles. In South Dakota and North Dakota, previous legalization efforts failed, and opposition remains strong among conservative voters. Nebraska is considering medical cannabis, though a legal challenge complicates its path. Florida’s adult-use measure could pass but requires a 60% approval rate, and concerns linger over the potential monopolization of the market by large companies like Trulieve, which is bankrolling the campaign. This election serves as a critical test for cannabis reform in traditionally conservative states, where federal reform remains unlikely, and local legislative change faces significant hurdles. Read more: KSTP

4. In an unfortunate and avoidable mishap, a pizzeria in Wisconsin accidentally served several THC-laced pizzas to customers after a cook mistakenly used cannabis-infused oil to complete some orders. Between October 22 and October 24, at least five customers sought medical attention due to intense effects from the pizzas. Co-owner Cale Ryan reported that around 60 pizzas were affected, prompting a temporary shutdown for a thorough cleaning. Read more: Vice

   • This Wisconsin pizza incident is a prime example of why strict kitchen protocols are essential, especially when cannabis products are involved. But let’s also keep perspective that, while THC can certainly pack a punch, it hasn’t proven lethal. In fact, onions were linked to an E. coli outbreak just last week that led to one death and nearly 100 illnesses across multiple states.

5. Indigenous farmers across the northern plains, including leaders like Winona LaDuke and Breon Lake, are driving a hemp renaissance, with a focus on restoring traditional agricultural practices and building a sustainable textile industry. LaDuke’s Anishinaabe Agriculture Institute, based on Minnesota’s White Earth Reservation, has partnered with the Indigenous Hemp & Cannabis Farmers Cooperative to support Native farmers in growing and processing hemp. Their efforts recently led to the production of one of the first U.S.-made hemp bags in decades, sold by Patagonia. This movement aims to reclaim land, reduce reliance on synthetic materials, and create a regional supply chain for hemp-based textiles and construction materials. By focusing on cooperation over competition, these growers are working to establish an Indigenous-led hemp processing infrastructure that could eventually scale to produce natural fiber textiles like canvas and even hempcrete for sustainable housing. Read more: Esperanza Project

   • Bonus must watch 📺: A new short documentary was just released about Minnesota’s Lower Sioux Indian Community and their groundbreaking construction of affordable housing using industrial hemp building materials. The blurb from the producers: “Can you build affordable housing, cut greenhouse gas emissions and bootstrap a strapped community all at once? On the plains of Minnesota, the Lower Sioux Indian Community has the answer. And it starts with hemp.”

Upcoming Events

Minnesota Dual-Training Pipeline Legal Cannabis Industry Forum hosted by the MN Department of Labor and Industry. November 8, 9 - 10 AM via webinar.

2024 Re-Imagining Justice Conference: Pivoting from Problem to Possibility hosted by the Minnesota Justice Research Center. November 19, 8 AM - 6 PM in Minneapolis.

The Lucky Leaf Expo is back in Minnesota Feb 28th to March 1 in Minneapolis. Booth registration is currently open.

This week, we're opening up our premium content to all readers—no subscription required! Dive into in-depth federal, state, and local government updates, industry news and intelligence, and expert insights and analysis.

Stay informed and see what our paid subscribers get each week to stay ahead in the ever-evolving cannabis landscape. Enjoy this exclusive look behind the scenes!

Upgrade to Paid

State Government Updates

• The Minnesota Bureau of Criminal Apprehension's Drug Crime Arrest Dashboard shows September 2024 as having the least drug arrests of any month in recent history, with only 577 drug arrests reported, with 74 of them being for cannabis.

  

• The second-to-last meeting of Minnesota’s Psychedelic Medicine Task Force will be held on Monday, November 4th from 9:30am to 12:30pm. Agenda and directions to watch the livestream are here. Links to archived videos of past meetings are available halfway down the page here.

• The Minnesota Task Force on Holistic and Effective Responses to Illicit Drug Use will meet on November 13  from 8:30 a.m. to 12:00 pm. The task force, which aims to address issues related to illicit drug use by developing recommendations focused on public health, safety, and prevention, began its work in September. The task force emphasizes a comprehensive approach, including harm reduction, treatment, and support for affected communities, to shape more effective drug policy in Minnesota.
  

• With Minnesota’s Office of Cannabis Management (OCM) working to finalize its social equity licensing lottery, industry experts like Hellmuth & Johnson attorney Carol Moss are calculating the program’s likelihood of staying on track for a 2024 lottery. Moss estimates that processing the 1,800+ social equity applicants could require up to 14,000 hours of staff time, suggesting a late November timeline for completing initial reviews. This comes amid the OCM’s first wave of deficiency notices, where applicants were given deadlines to address issues before progressing to the lottery phase. OCM interim director Charlene Briner confirmed that, while frustrated applicants want a timeline, the agency is taking a cautious approach to avoid setbacks. The lottery system, implemented to avoid subjective merit-based issues seen in other states, aims to improve fairness and streamline the launch of Minnesota's market. However, the complexity of balancing due diligence with a tight schedule has led to mounting pressure on the OCM. Read more: MinnPost

Local Government Updates

• The Pipestone City Council voted on October 21 to authorize city staff to register with the state to sell hemp-derived cannabinoid products at the Municipal Liquor Store. These products include edibles with up to 5 mg of THC per serving and drinks with a maximum of 10 mg per container, restricted to adults 21 and older. Municipal Liquor Store Manager Scott Wilson highlighted the profitability of the products, noting low start-up costs for display equipment. Although council members expressed caution over potential social impacts, the council ultimately repealed a previous ordinance banning these sales to comply with updated state law. City Attorney Troy Gilchrist emphasized that the repeal aligns Pipestone with state regulations, which no longer permit local bans on hemp-derived THC sales. Read more: Pipestone County Star

• Mankato proposes to cap the number of cannabis retailers in the city at four, aligning with the minimum required by state law based on population. Other proposed restrictions include mandating buffer zones of 1,000 feet from schools and 500 feet from parks, daycares, and treatment facilities, a prohibition on mobile sales, and limited operating hours.. The proposed ordinance is set for a public hearing on November 25. Read more: Mankato Free Press

• Morrison County officials have outlined a proposed cannabis ordinance that includes specific operational rules, such as hours and security measures and allows local cities and townships the option to administer their own licensing or defer to the county. Public hearings for community feedback are scheduled for late November and early December​. Read more: Morrison County Record

• Kanabec County’s cannabis committee is finalizing a draft ordinance for cannabis business licensing, incorporating buffer zones of 1,000 feet from schools and 500 feet from daycares, treatment centers, and parks. The ordinance limits cannabis retail to two licenses based on population and sets sales hours from 10 a.m. to 9 p.m. A public hearing is set for December 17, with final adoption expected by January 1​. Read more: MoraMinn

• The Ely City Council is reviewing draft ordinances for cannabis businesses, including zoning that restricts retail to specific areas and mandates industrial zones for cultivation. The ordinance includes provisions for temporary cannabis events and raises fines for hemp-derived THC retailers. The first reading of this ordinance is scheduled for November 19​. Read more: Timberjay

• Detroit Lakes City Council discussed its cannabis business ordinance, focusing on zoning retail locations in the B-3 auto-oriented district along U.S. Highway 10. Council members debated buffer distances and expressed reluctance to set a hard cap on the number of cannabis businesses, preferring to let zoning and market conditions act as natural limits. The council plans to finalize the ordinance in November. Read more: Detroit Lakes Online

• Chisago County will hold a public hearing on November 6 to discuss a proposed ordinance on cannabis regulation and business registration. The ordinance focuses on zoning, licensing, and guidelines for cannabis businesses. Read more: Chisago County Press

Federal Government Updates

• The U.S. Drug Enforcement Administration (DEA) has scheduled a December 2 hearing to address a proposed rule to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act. This shift would acknowledge cannabis’s accepted medical use and a reduced potential for abuse compared to Schedule I and II substances, based on recommendations from the Department of Health and Human Services. If finalized, rescheduling to Schedule III would ease certain restrictions, including access to banking and tax deductions, though federal prohibitions under the Food, Drug, and Cosmetic Act would still apply. Interested parties had until September 30 to request participation in the hearing, where the DEA will review evidence and expert opinions on the potential impact of this regulatory shift.

• The DEA is preparing for its December 2 hearing on cannabis rescheduling by notifying selected witnesses, including representatives from industry groups, advocacy organizations, and prohibitionist voices. The hearing will assess the potential impact of reclassifying cannabis from Schedule I to Schedule III under the Controlled Substances Act. While industry advocates view this as a step toward reducing regulatory barriers, the addition of a public hearing has raised concerns about potential delays in the rescheduling timeline​. Read more: Marijuana Moment.

• Several New Mexico cannabis companies have filed a lawsuit against U.S. Customs and Border Protection, alleging that federal agents are unlawfully seizing state-legal cannabis products at border checkpoints. The companies argue that these seizures disrupt their business operations and violate their due process rights. The lawsuit highlights the ongoing conflict between state legalization and federal enforcement in border regions, where cannabis is still federally illegal despite being legal under New Mexico state law. Plaintiffs claim these actions also inadvertently benefit illicit operators by disrupting state-licensed cannabis tracking and distribution​. Read more: Marijuana Moment.

  • Minnesotans Take Note: The Border Patrol has jurisdiction for 100 air miles from international borders. This case will have ramifications for operators in northern Minnesota.

• The Occupational Safety and Health Administration (OSHA) introduced a Local Emphasis Program focused on identifying and reducing workplace hazards in Colorado’s cannabis sector with expansion to other states in coming years. OSHA’s program will involve site inspections, consultations, and worker interviews to address issues like respiratory protection, electrical hazards, and handling flammable materials. Read more:Marijuana Moment

Industry News & Intelligence

• In a recent survey of Minnesota brewers, one in four breweries reported producing THC-infused beverages in-house, while another quarter showed interest in entering this market. Though breweries outside the Twin Cities metro were more skeptical, those that have embraced THC beverages report positive sales growth, with some metro breweries seeing these drinks account for a notable percentage of revenue. Venn Brewing’s THC tonics, for instance, make up about 30% of its sales, reflecting a growing consumer demand for alternative, cannabis-based products. The Minnesota craft beer industry is adapting to these evolving market trends, positioning itself at the forefront of the THC beverage boom even as breweries face broader challenges from inflation, changing consumer habits, and increased competition. Read more: The Racket

  

• The Hazelden Betty Ford Foundation’s recent cannabis summit focused on the “dangers” of cannabis, gathering prohibitionist “experts” to discuss health risks and societal impacts, all while skirting recent research supporting cannabis’s medical benefits. With a strong emphasis on potential negatives and an undercurrent of skepticism toward legalization, the event presented a notably conservative view on cannabis in a time when public sentiment and emerging studies are painting a more nuanced picture. Read more: KARE 11

• A new poll indicates that support for South Dakota’s marijuana legalization initiative is trailing, with fewer voters in favor compared to previous years. The results suggest growing challenges for advocates seeking to expand cannabis access in the state, where recent legalization efforts have faced pushback. The outcome could reflect shifting attitudes or increased opposition, posing hurdles for pro-legalization campaigns. Read more: Marijuana Moment

• A new study using federal data shows that teen marijuana use has decreased in the U.S. as more states have legalized cannabis. This decline suggests that legalization, along with regulated sales and age restrictions, may be contributing to reduced marijuana use among teens, countering concerns that legalization would lead to higher youth consumption rates. Read more: Marijuana Moment

• A new study looked into whether cannabis changes your brain, and the answer is as foggy as the smoke. While some evidence points to potential effects on memory and cognition, it’s not exactly a clear verdict—especially with factors like age, usage frequency, and THC levels complicating things. So, while the headlines hype brain changes, the reality is we’re still in the dark and need more research to really know what’s going on up there. Read more: Southern Minnesota News

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Announcements

• Looking for pro-cannabis candidates to support? Check out MN Cann Political Action’s list of endorsed candidates! Built on the momentum of MN is Ready, the campaign that helped deliver Minnesota's pro-legalization majority, MN Cann Political Action is dedicated to shaping Minnesota’s cannabis industry by backing candidates committed to advancing a fair and sustainable local cannabis industry, as well as other sensible drug policy reforms.

• Last week, we shared a link for making donations to a silent auction benefit for the family of Samuel Poquette, a Minnesota cannabis activist and entrepreneur who passed away earlier this month. The deadline to donate has been extended to October 27, 2024, and organizers welcome contributions of any kind. You can also contribute directly to Sam’s family through GoFundMe. Please reach out to maren@bluntstrategies.com with any questions.

• 📢 Community Classified- Tonna Agra Farm Equipment Auction: Tonna Agra in Owatonna, MN is auctioning off a wide variety of planting, growing, and harvesting equipment. Items up for bid include pots, planters, a dryer, greenhouse equipment, detasseler, tables, debudders, a combine, a pickup truck, and much more. Don’t miss this chance to bid on quality gear for your operation. The online-only auction lots begin closing on Monday, Oct. 28.

Want to place your own Community Classified? Have equipment to sell or a job to post? Contact us at preroll@bluntstrategies.com to feature your listing in The Pre-Roll.

Top 5 Must Reads

1. Minnesota Governor and Democratic vice-presidential nominee Tim Walz emphasized the need for cannabis legalization policies that prioritize communities disproportionately harmed by criminalization. Speaking at a campaign event in North Carolina, Walz stressed that Black and marginalized communities should have the "first shot to make money" in the legal cannabis industry. He pointed out how cannabis laws have historically harmed these communities and argued that legalization must include social justice elements, including economic opportunities for those affected. Walz’s comments align with his efforts in Minnesota, where racial disparities in cannabis criminalization were a major driver of the state’s adult-use legalization bill, which he signed into law last year. While Walz supports federal cannabis reform, he has largely focused on ensuring states like Minnesota can set their own cannabis policies. The governor also called for national reforms to improve banking access for state-licensed cannabis businesses. [Read more: Marijuana Moment]

2. Charlene Briner, Interim Director of the Office of Cannabis Management (OCM), reassured prospective cannabis business owners that Minnesota remains on track to launch its legal recreational market in 2025. Briner acknowledged frustrations about the licensing process, particularly the delay in the pre-approval lottery for social equity licenses. While businesses are eager to get started, Briner emphasized the importance of thoroughly vetting applications to prevent predatory practices, such as multiple applications from the same entity or unfair ownership structures. Over 1,800 social equity applicants have submitted paperwork for the 280 available early licenses, and Briner confirmed that the OCM is reviewing applications and will hold the lottery before the end of 2024. Briner highlighted that Minnesota’s regulatory process is moving at a pace that exceeds expectations, considering the complexities involved in licensing and ensuring the integrity of the process. She cited other states like Missouri, which have dealt with similar issues, and reminded applicants that this is the first time the state is running the process. Briner assured stakeholders that Minnesota will have cannabis businesses operational by 2025, with clear rules expected to be finalized by the first quarter of the year. [Read more: CBS News Minnesota]

3. The ACLU of Minnesota is representing Jessica Beske, a Fargo woman facing up to 30 years in prison and a potential $1 million fine after being charged with a first-degree drug offense for bong water allegedly containing methamphetamine residue. Polk County prosecutors are pursuing the case under a loophole in state law that treats the water as if it were 8 ounces of pure methamphetamine. The charges have sparked outrage, with critics questioning the use of resources for such cases. Beske’s attorney, Alicia Granse, argues that the case highlights uneven drug law enforcement in Minnesota, especially given the state’s recent decriminalization of drug paraphernalia containing residue. The ACLU’s involvement signals the broader implications this case may have on criminal justice reform in the state. [Read more: Minnesota Reformer]

4. An Arizona judge declined to void or reassign a contested social equity cannabis license in a case that highlights ongoing concerns about predatory practices in the state’s licensing system. Arizona resident Anavel Vasquez claimed her partners in a social equity application had forced her out of her ownership in the license after paying the $4,000 application fee and managing the paperwork. However, the court ruled that Vasquez had breached her agreement by secretly transferring the license to another company, Menvas, for $2.7 million without authorization from her original partners. Despite broader concerns about out-of-state moneyed interests hijacking Arizona’s social equity program, this case was seen by the judge as more about contract disputes than the fairness of the licensing process. While the court rejected Vasquez’s request to void the license, a separate claim regarding whether the Arizona Department of Health Services should have granted the license in the first place is still pending. [Read more: MJBiz Daily]

5. In a recent panel hosted by the Minneapolis-St. Paul Business Journal and Platinum Bank, leaders in Minnesota's cannabis industry discussed the challenges and opportunities emerging as the state moves toward launching its legal cannabis market in 2025. Panelists highlighted the complexities of operating under conflicting state and federal laws, especially when it comes to banking, taxation, and insurance for cannabis businesses. Key takeaways include Minnesota's unique regulatory approach, which caps cultivation sizes and prioritizes microbusinesses, differentiating it from other states. With an emphasis on supporting small, local businesses, panelists stressed the importance of collaboration and transparency in the industry. They also addressed the potential impacts of federal rescheduling which could alleviate federal tax burdens but warned that regulatory hurdles remain. The discussion underscored the significance of building a sustainable, inclusive ecosystem, with women and social equity applicants playing a central role in Minnesota’s cannabis future. [Read more: Minneapolis-St. Paul Business Journal]

Upcoming Events

Minnesota Dual-Training Pipeline Legal Cannabis Industry Forum hosted by the MN Department of Labor and Industry. November 8, 9 - 10 AM via webinar. 

2024 Re-Imagining Justice Conference: Pivoting from Problem to Possibility hosted by the Minnesota Justice Research Center. November 19, 8 AM - 6 PM in Minneapolis.

Cannabis Education Webinar Series hosted by the Minnesota Society of Certified Public Accountants (MNCPA). Ongoing now through early 2025. Topics include: Ethical Considerations in Working with Cannabis; Illicit to Essential: Marijuana and Hemp/CBD Evolving Issues; and Valuing Cannabis 2.0: Unique Marijuana Appraisal Challenges. Webinars offer CPE credits.

UMN Center for Cannabis Research Presentations at the American Public Health Association Annual Meeting. October 27-30 in Minneapolis.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• State funding opportunities for health and education

• Yet another new hemp beverage group

• What else? Municipal government updates

• Laura Monn Ginsburg listened to The Daily’s episode on the dangers of cannabis so you don’t have to

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Announcements

• We are deeply saddened by the passing of Samuel Poquette of New Ulm, a dedicated cannabis activist, community leader, and entrepreneur, who tragically lost his life in a motor vehicle accident on Sunday. Sam was a passionate advocate for safe access and the healing properties of cannabis, leading efforts with Sensible Change Minnesota and MN Vets 4 Cannabis. To support his partner, Tana, and their two young children, members of the cannabis community are organizing a virtual silent auction. Donations to the silent auction can be made through Sunday, October 20th. Additionally, you can contribute directly to Sam’s family through GoFundMe.

• We’ve started hearing that the Office of Cannabis Management has begun issuing deficiency notices to some social equity-verified license pre-approval applicants. If you have an application pending, make sure to check your inbox regularly. So far, we’ve seen deficiency notices with deadlines for response or curing ranging from 5 to 14 days.

• Hellmuth & Johnson has announced that attorney Nicole L. Rash has joined the firm as an associate in their Cannabis Law practice group. With multiple years of experience practicing in Washington State, Nicole has counseled a wide range of cannabis clients, from small family-owned businesses to large corporate hemp and cannabis operations. At Hellmuth & Johnson, Nicole will focus on guiding cannabis businesses through legal complexities as Minnesota’s adult-use market continues to develop. Please join us in welcoming Nicole to the MN cannabis fold!

Top 5 Must Reads

1. Vice President Kamala Harris has officially rolled out her marijuana legalization plan, pledging to make it "the law of the land" if she is elected President. Her plan focuses on ending federal prohibition, addressing the harms of prohibition, and expunging past cannabis convictions.. Harris emphasized the importance of creating opportunities for Black Americans in the emerging cannabis industry and criticized the Trump administration for its inconsistent stance on cannabis reform.

   

2. A former employee reports internal challenges at Minnesota's Office of Cannabis Management (OCM) as the new agency took over responsibility for the medical cannabis program from the Minnesota Department of Health resulting in over half of her team quitting this summer, citing OCM’s refusal to honor remote work schedules and resistance to feedback as key factors.  The employee says this led to delays in medical cannabis certifications, leaving patients waiting weeks for medication. OCM attributed the problems to IT challenges, an increase in medical cannabis applications, and “natural attrition that occurs in any organization undergoing substantial change.”
   
   Bonus 📻: OCM Interim Director Charlene Briner, in an interview this week, said that staff turnover at OCM was partially due to changing employee expectations—that the transition from the Minnesota Department of Health to OCM shifted the agency’s structure, and some employees found it challenging to adjust to the new work environment. Briner emphasized that these changes in expectations contributed to the staff departures, but reassured that most team members stayed on and that the agency's progress continues without disruption.

3. Missouri regulators have exposed and shut down predatory investors who tried to game the state’s social equity cannabis program by using disadvantaged Missourians as fronts to grab cannabis licenses. Of the 57 microbusiness licenses awarded in the June lottery, only 25 were certified, with many denied for failing to provide adequate documentation of their eligibility. Regulators made it clear that the state’s social equity program isn’t up for exploitation by out-of-state entities.

4. While Minnesota continues to navigate complex cannabis regulations and a slow rulemaking process Wisconsin’s lax regulation of hemp-derived products is creating an uneven playing field at the border, putting Minnesota’s more tightly regulated industry at a disadvantage as consumers cross the border for products illegal to sell in Minnesota. The lack of regulation in Wisconsin has allowed retailers to operate freely, but some businesses and officials are calling for more consistent oversight to protect consumers and create a level playing field.
   
   Bonus 📻: Vicente attorney Jason Tarasek joined Chad Hartman on WCCO to discuss the differences between Minnesota’s and Wisconsin’s cannabis laws.

5. In a student note published in the Minnesota Journal of Law, Science & Technology, Violet Butler explores the evolving regulatory landscape for hemp-derived products. Since the 2018 Farm Bill legalized hemp with less than 0.3% THC, states have taken varying approaches to regulating these products. Some states, like Arkansas and Missouri, have enacted broad bans on Delta-8, Delta-9, and other THC isomers, raising questions about federal preemption and the role of state regulation. Meanwhile, other states have imposed age restrictions and limited sales of intoxicating hemp products. With federal lawmakers also considering stricter regulations, this piece highlights the growing concerns over synthetic cannabinoids and the push for clearer safety standards in the hemp industry.
   
   💁🏻‍♀️: What do Leili Fatehi of Blunt Strategies and Eric Taubel, General Counsel at the Office of Cannabis Management, have in common? Both are former editors-in-chief of the Minnesota Journal of Law, Science & Technology! Coincidence, or is MJLST quietly producing cannabis power players? Either way, if you’re looking to break into the legal cannabis scene, it might be time to brush up on your journal editing skills!

Upcoming Events

Cannabis Banking Webinar hosted by the Minnesota Credit Union Network. October 17, 1-2:30 PM.

Green Equity: A Cannabis Leadership Forum hosted by the Minority Cannabis Business Association. October 22, 11 AM - 9 PM in St. Paul.

How to Open & Run a Cannabis Dispensary in Minnesota hosted by COVA Software. October 23, 9 AM - 3 PM in Eagan.

Minnesota Psychedelic Roadshow hosted by Rep. Andy Smith, DecriMN, Big Psych, and Waking Nomad. October 15, 4 - 6 PM in Minnetonka and October 22, 5 - 6:30 PM in Rochester.

Minnesota Dual-Training Pipeline Legal Cannabis Industry Forum hosted by the MN Department of Labor and Industry. November 8, 9 - 10 AM via webinar.

2024 Re-Imagining Justice Conference: Pivoting from Problem to Possibility hosted by the Minnesota Justice Research Center. November 19, 8 AM - 6 PM in Minneapolis.

The Lucky Leaf Expo is back in Minnesota Feb 28th to March 1 in Minneapolis. Booth registration is currently open.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• Updates on Minnesota’s asset forfeiture reforms

• The latest round of municipal actions and hearings

• Grown Rogue and Vireo’s business reshuffle

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Top 5 Must Reads

1. Minnesota’s Office of Cannabis Management (OCM) says the much-anticipated lottery for social equity license pre-approval will be held before the end of 2024, rather than this fall as originally planned. According to Interim OCM Director Charlene Briner, the delay is due to the complexity of verifying ownership structures and ensuring compliance with social equity criteria. This has led to frustration, particularly among applicants planning cultivation operations, who are running out of time to plant for the 2025 market. State lawmakers are divided on the issue—some acknowledge the intricate legal framework, while others are urging the OCM to expedite the process to avoid further delays.
   
   Bonus 📺: Minnesota’s cannabis retailers are also concerned with delays, with fears that licenses won’t be issued until 2026—putting the state on track to be one of the slowest to move from legalization to sales.

   
   Flashback: Some may recall that, last legislative session, the Minnesota cannabis industry came together with an unprecedented show of unity to advocate for the early licensing of cultivators. This wasn’t just a wish-list item; it was a necessary step to ensure a functioning, equitable cannabis market in 2025. We rallied stakeholders across the entire industry—hemp businesses, legacy market operators, and prospective new cannabis entrepreneurs—and emphasized the importance of starting cultivation sooner rather than later. In May, we held a press conference and sent a letter to state legislators signed by over 80 businesses, urging the Senate to include provisions for early cultivation in the cannabis omnibus bill​.
   
   

   The frustration lies in the fact that the Office of Cannabis Management (and legislative leaders) had previously signaled that they would support early cultivation, only to backtrack and decide not to offer legislation for it. The reasoning? They couldn’t find a "consensus" among stakeholders on how to implement early planting and harvesting equitably. As a result, despite clear stakeholder demand and urgency, the OCM chose not to present legislation allowing for cultivation to begin in Q4 of 2024, as initially planned​.
   
   

   This decision leaves us in a precarious position we predicted. Without the ability to start cultivation early, we’re staring down the possibility of dispensaries opening their doors in 2025 or maybe even 2026 with little product to sell. This hurts smaller businesses the most—many of whom have already been working tirelessly to prepare for the legal market and are now facing the real risk of financial instability.

2. OCM has been cracking down on businesses attempting to skirt cannabis sales laws by offering "free" cannabis with the purchase of other items, like T-shirts. Despite these creative workarounds, OCM enforcement officials have made it clear that such transactions still count as illegal cannabis sales. Since tightening enforcement, OCM has seized nearly 190 pounds of illegal cannabis flower and more than 34,000 hemp-derived products that violated state law. Businesses that continue to violate the law face fines and, in some cases, a five-year ban on obtaining cannabis licenses.

3. In his debut column for the Star Tribune, contributing columnist Dr. Clemon Dabney, III a.k.a Doc Dabs shares his personal and professional journey with cannabis. From cultivating cannabis secretly as a teenager to becoming the first student at the University of Minnesota to study the plant scientifically, Dabney details how he has worked to demystify cannabis through research, education, and advocacy. Now an entrepreneur, he discusses his experiences navigating the challenges of cannabis research in a pre-legalization world, including the lack of federal funding and regulatory hurdles. Clem's column promises to provide ongoing insights into Minnesota’s rapidly evolving cannabis landscape.

4. In a commentary piece, Leili Fatehi of Blunt Strategies contrasts Minnesota’s thoughtful, balanced approach to regulating intoxicating hemp-derived products with California’s recent panic-driven emergency regulations that bans all THC in hemp products to curb the spread of intoxicating compounds like Delta-8 THC and HHC. Minnesota has taken a more balanced path. By focusing on thoughtful regulation—banning only synthetic cannabinoids while allowing products with hemp-derived Delta-9 THC under labeling, testing, and other safety standards—Minnesota has created safety, transparency, and fairness in the market. The commentary highlights Minnesota’s regulatory model as a blueprint for other states looking to safely regulate intoxicating hemp products without stifling innovation or small businesses.

5. Minnesota’s Psychedelic Medicine Task Force has formally recommended decriminalizing the use of psilocybin mushrooms. The task force also advocated for more research into the therapeutic potential of psilocybin, MDMA, and LSD for mental health conditions like PTSD and depression. While these recommendations will be presented to the legislature in January 2025, they are not binding, and it's unclear how likely they are to become law. Task force members emphasized that full legalization is not yet on the table, but they hope further studies will lay the groundwork for future legislative action.
   
   Bonus 📻 (that’s a radio for you Zoomers): Patrick Coolican of the Minnesota Reformer discussed the Task Force’s recommendations on AM950 starting at timestamp 7:04.

   
   Context: This recommendation reflects growing recognition of psilocybin’s potential in treating mental health conditions like depression and PTSD. Decriminalization would allow for safer, regulated use of these substances, positioning Minnesota at the forefront of progressive drug policy reform. It's a necessary step toward more compassionate, health-centered approaches to psychedelics, prioritizing therapeutic benefits and public safety.

Upcoming Events

Criminal Law A to Z: Criminal Implications of Cannabis – Personal Use and Individual Rights hosted by Minnesota CLE. October 11, 12-1 PM via webinar. (Minnesota CLE has applied to the Minnesota State Board of CLE for 1.0 standard CLE credit.)

Cannabis Banking Webinar hosted by the Minnesota Credit Union Network. October 17, 1-2:30 PM.

Green Equity: A Cannabis Leadership Forum hosted by the Minority Cannabis Business Association. October 22, 11 AM - 9 PM in St. Paul.

How to Open & Run a Cannabis Dispensary in Minnesota hosted by COVA Software. October 23, 9 AM - 3 PM in Eagan.

Minnesota Dual-Training Pipeline Legal Cannabis Industry Forum hosted by the MN Department of Labor and Industry. November 8, 9 - 10 AM via webinar. 

2024 Re-Imagining Justice Conference: Pivoting from Problem to Possibility hosted by the Minnesota Justice Research Center. November 19, 8 AM - 6 PM in Minneapolis.

(Dis)Honorable Mention: The Hazelden Betty Ford Foundation is hosting a “cannabis summit” featuring a keynote by Smart Approaches to Marijuana (SAM), the anti-cannabis group known for spinning data to back prohibitionist policies. As frequent critics of SAM’s twisted takes, we at The Preroll aren’t fans of their agenda, which continues to promote outdated and restrictive cannabis laws. If you're attending, expect SAM to bring their usual rhetoric aimed at undermining legalization efforts. Keep your fact-checking glasses on for this one!

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• A whole bunch of updates on a whole bunch of local governments passing a whole bunch of ordinances, including caps on retail licenses

• Expert commentary from Maren Schroeder on the future of Minnesota’s medical cannabis market and the impact of supply chain separation requirements.

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Announcements

• We’re thrilled to share that The Pre-Roll has now surpassed 3,100 subscribers and has received over 6,000 page views in the past month. Our email open rate is an impressive 35%, showing just how engaged our community is with the latest cannabis industry news and insights. If you're interested in sponsoring and getting your brand in front of Minnesota’s most engaged cannabis audience, contact us at preroll@bluntstrategies.com.

• MN Cann Political Action is working to ensure Minnesota keeps a pro-cannabis majority in the state legislature—one that will continue advancing criminal justice reforms and supporting an equitable, sustainable cannabis industry. We can’t afford to return to the era of political gridlock that kept cannabis illegal in Minnesota for so long. MN is Ready, the predecessor of MN Cann, helped elect the pro-legalization majority and amplify the voices of local stakeholders to pass legalization. Now, your contribution to the MN Cann Political Action Fund will help us maintain that momentum. Donate today and help protect Minnesota's cannabis future!
  
  MN Cann Political Action will be releasing its list of endorsed candidates on Monday, October 7. Keep an eye out on the website.

Top 5 Must Reads

1. For the first time as the Democratic presidential nominee, Vice President Kamala Harris has publicly taken a stance in support of federal cannabis legalization. In a candid interview with the All the Smoke podcast, Harris reiterated her long-standing belief that "people should not be going to jail for smoking weed" and emphasized the need to stop criminalizing cannabis use. While Harris sponsored federal cannabis legislation as a U.S. senator, this is the first time she has addressed the issue during her current campaign for the White House. Harris is showing she’s ready to tackle outdated policies and push for real change, making her a strong advocate for reform and justice.

   
   

2. By contrast, Harris’s vice presidential running-mate Minnesota Governor Tim Walz stated that cannabis legalization should remain a state issue. Walz specifically called out his support for reforms like federal cannabis banking protections and medical cannabis access for veterans, but emphasized that legalization is better handled at the state level, where individual governments can tailor policies to local needs. Walz added that electing more Democrats to Congress would help pass incremental federal reforms.
   
   

3. A new report from the National Academies of Sciences, Engineering, and Medicine calls for U.S. health authorities, particularly the Centers for Disease Control and Prevention (CDC), to take a more active role in shaping cannabis policy. The report recommends a health-focused approach, including research on cannabis impacts, best practices for state regulations, and campaigns targeting youth and vulnerable groups. Key recommendations include closing loopholes on hemp-derived intoxicants and expunging low-level cannabis-related offenses. Implementing these changes will require more federal funding and leadership.
   
   

4. A year after his first pick resigned, Governor Tim Walz has yet to appoint a permanent director for the Office of Cannabis Management (OCM). Charlene Briner has served as interim director for over a year but has expressed that she doesn’t wish to hold the role long-term. Despite a second search for candidates earlier this year, no interviews have been conducted, with the governor’s office explaining to the press that it’s opting to maintain stability under Briner's leadership during the critical period that the state is preparing for the launch of Minnesota's recreational cannabis market.

   
   

5. A recent discussion with Blunt Strategies’ Kurtis Hanna on KBOO takes aim at the lasting damage of Richard Nixon's policies, particularly his infamous War on Drugs. The conversation highlights how Nixon's legacy continues to shape today’s cannabis laws and criminal justice system, disproportionately affecting marginalized communities. Despite decades passing since Nixon’s era, the system he set in motion is still kicking around, hindering progress on drug reform and perpetuating the same outdated, harmful policies. It's a sharp reminder of how deeply entrenched these issues remain, long after Nixon’s time in office.

Upcoming Events

The Cannabis Buzz in Minnesota Commercial Real Estate hosted by MN Commercial Real Estate Women (MNCREW). October 9, 11-1:15 PM in Minneapolis. (Continuing Real Estate Education Credit has been applied for and 1 hour is pending approval from the Minnesota Department of Commerce.)

Criminal Law A to Z: Criminal Implications of Cannabis – Personal Use and Individual Rights hosted by Minnesota CLE. October 11, 12-1 PM via webinar. (Minnesota CLE has applied to the Minnesota State Board of CLE for 1.0 standard CLE credit.)

Cannabis Banking Webinar hosted by the Minnesota Credit Union Network. October 17, 1-2:30 PM.

Green Equity: A Cannabis Leadership Forum hosted by the Minority Cannabis Business Association. October 22, 11 AM - 9 PM in St. Paul.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• Minneapolis’ promising progress on zoning for cannabis businesses

• Details on Red Pine Group’s proposal to operate a municipal cannabis store in Osseo and why cities should tread carefully.

• Kayla Fearing’s essential updates for Minnesota caregivers and patients, providing clarity on homegrow rights and the state’s caregiver program.

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Announcements

• Our neighbors to the east in Wisconsin are planning a major protest in Madison September 28th and 29th at The Great Midwest Hemp Fest. An annual protest with over half a century of history, the Fest will include a march down North Hamilton Street for The Great Midwest Marijuana Harvest Protest. The event will also feature educational panels including Blunt Strategies’ own Leili Fatehi and Kurtis Hanna.

Top 5 Must Reads

1. A Ramsey County judge dismissed a lawsuit filed by four home cannabis growers challenging Minnesota's licensing requirements for selling excess cannabis. MinnPost reports that the plaintiffs, three of whom are medical cannabis patients, argued that a state constitutional provision allowing the sale of farm products without a license should apply to homegrown cannabis. However, the judge ruled that the case is premature since the state’s Office of Cannabis Management (OCM) has not yet finalized its rules. The judge noted that it is possible—though unlikely—that the OCM's rules could permit unlicensed sales of homegrown cannabis, and the court could revisit the case once the rules are in place. The plaintiffs’ attorney said that the case was filed to clarify the constitutional issue without risking criminal prosecution for unlicensed sales. He indicated that the plaintiffs may consider appealing the decision or refiling after the OCM completes its rulemaking process.

Want to dive deeper? Expert commentary from cannabis attorney’s Jen Reise and Elliot Ginsburg is available in the premium section below. Jen and Elliot provide their legal perspectives on the implications of the court’s ruling. Upgrade to access their insights.

2. A Ramsey County judge also dismissed a lawsuit brought by Wesley King, a prospective cannabis business owner, who challenged the Minnesota Office of Cannabis Management (OCM)’s decision to deny him social equity status. King’s lawsuit argued that Minnesota’s cannabis licensing laws conflicted with the state’s expungement statutes, making it difficult for those with expunged records to prove their eligibility for social equity status. King, who had his 2006 cannabis charge dismissed after completing probation, was denied social equity status due to his lack of a formal conviction. The court dismissed the case, ruling that it lacked subject matter jurisdiction, as King’s claims raised non-justiciable political questions that were within the legislature's discretion. Additionally, the court ruled that King lacked standing and that any challenge to OCM’s decision should have been brought before the Minnesota Court of Appeals. King’s request for a temporary restraining order to halt the social equity verification process was also denied.

We’ve got expert commentary on this one, too! Cannabis attorney Carol Moss explains the significance of this court decision in today’s premium section.

3. Missouri’s social equity cannabis licensing program continues to be marred by reports of predatory practices. As Marijuana Moment reports, in several cases, applicants qualified for microbusiness licenses based on criteria such as veteran status or marijuana-related offenses in their family, only to sign contracts that effectively stripped them of control and profits. Consultants were heavily involved in guiding these applicants through the process while creating contracts that allowed outside investors to gain full ownership once a license was secured. In one instance, a consultant was the designated contact for over 400 dispensary applicants, all tied to contracts that funneled control to a single investor. Missouri regulators have since revoked several licenses connected to these schemes, but the scope of the issue remains significant, with ongoing appeals highlighting the challenges faced by regulators.
   
   Our take: As Minnesota prepares to implement our social equity cannabis programs, the predatory practices seen in Missouri should serve as a stark warning. Investors and consultants in Missouri used complex contracts to exploit social equity applicants, stripping them of control and profits after licenses were secured. These operators were able to manipulate the system by overwhelming the application process and using social equity applicants as fronts for their own financial gain. Minnesota stakeholders must be vigilant to prevent similar tactics from being deployed here. Regulators and applicants alike should be cautious of consultants and investors who may use these same schemes to co-opt social equity licenses, undermining the very purpose of the program. Strong oversight and transparent business practices will be essential to safeguarding the integrity of Minnesota’s social equity initiatives.

4. A recent YouGov poll found that opinions on cannabis regulation vary significantly between supporters of Vice President Kamala Harris and former President Donald Trump. Per Marijuana Moment’s coverage, while Harris supporters broadly favor more regulations across most industries, only 37% want to see increased regulation on cannabis. In contrast, 44% of Trump supporters are in favor of more regulations for cannabis, despite generally opposing regulatory increases in other industries. The poll highlights a unique divide between the two political bases when it comes to cannabis, with cannabis being the only sector where opinions on regulation were nearly evenly split. This finding aligns with broader polling trends that show Americans support legalization but differ on how strictly cannabis should be regulated.
   
   

5. New polling shows majority of Minnesotans support federal cannabis legalization. A recent Star Tribune/MPR News/KARE 11poll reveals that 61% of Minnesotans support federal legalization of cannabis for adult use, while 34% oppose it. Support for legalization is strongest in Hennepin and Ramsey counties, where 72% of voters are in favor. The poll also highlights a partisan divide, with 80% of Democrats supporting federal legalization compared to only 38% of Republicans. Despite the strong support for legalization, cannabis use remains relatively low in the state, with just 14% of Minnesotans reporting that they used cannabis or hemp-derived products in the past month.

Upcoming Events

Buzz Off: A Comedy Show hosted by Wildflower. September 27, 8 PM in Minneapolis.

Renegade Late Night Improv Presents: The Edibles Show. September 27, 10-11:30 PM in Duluth.

The Great Midwest Hemp Fest. September 28-29 in Madison, WI.

The Cannabis Buzz in Minnesota Commercial Real Estate hosted by MN Commercial Real Estate Women (MNCREW). October 9, 11-1:15 PM in Minneapolis. (Continuing Real Estate Education Credit has been applied for and 1 hour is pending approval from the Minnesota Department of Commerce.)

Cannabis Banking Webinar hosted by the Minnesota Credit Union Network. October 17, 1-2:30 PM.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• Expert legal commentary from Jen Reise and Elliot Ginsburg on the homegrower lawsuit dismissal.

• In-depth analysis from legal expert Carol Moss on the court's ruling against Wesley King’s social equity status.

• Exclusive insights into Minneapolis’ revised cannabis zoning proposal.

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The first three sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Announcements

• MN Cann Political Action launched its website last week. The PAC is currently surveying candidates for House of Representatives and candidates for the special election for Senate District 45. A formal release and a first round of endorsements are coming soon.

Top 5 Must Reads

1. Tricky Dick was busted by one of Blunt Strategies’ own, Kurtis Hanna. On Sunday, Kurtis made front page of the New York Times with a discovery of former that sheds new light on President Nixon’s stance on cannabis. While Nixon publicly spearheaded the War on Drugs and placed marijuana in the most restrictive category of illegal substances, Hanna uncovered a startling admission in a newly released set of Oval Office recordings. In these tapes, Nixon acknowledged that marijuana was “not particularly dangerous,” contradicting his public rhetoric. This discovery provides crucial context to the political motivations behind the War on Drugs, with historians noting that Nixon’s drug policies were more about political strategy than personal beliefs. The revelation also adds weight to the growing movement to reexamine federal cannabis laws, particularly as the country continues to grapple with the long-term impact of these policies.

   

   Want to know what Kurtis has to say about his bombshell discovery? Check out Kurtis’ commentary in the premium section below where he dives deeper into Nixon’s secret admission, what it means for the future of cannabis reform, and how it might just be the key to unlocking federal legalization.

2. Alcoholic drink makers have a serious case of FOMO and local cannabis journalist Rachelle Gordon at Green State explains why. A recent survey by Bloomberg Intelligence shows that more Americans are choosing cannabis over alcohol, with nearly half of respondents reporting they substitute cannabis for alcohol at least once a week, and 22% doing so multiple times a week. This shift in consumer behavior is expected to grow as more states legalize adult-use cannabis, creating a significant challenge for the alcohol industry. Companies are already seeing the impact, with cannabis becoming a formidable competitor to alcoholic beverages. Some alcohol companies have adapted by creating THC-infused drinks, especially in markets like Texas and Minnesota, where regulations allow craft beer makers to produce cannabis beverages. From the article:

   Some alcohol companies are taking the “if you can’t beat ‘em, join ‘em” approach, opting to create zero-proof bevs infused with cannabis compounds. THC-infused drinks are especially popular in markets like Texas and Minnesota, where regulations allow craft beer makers to produce cannabis beverages in-house.”

   This trend, supported by a growing number of Americans who believe cannabis is safer than alcohol, is likely to continue as health-conscious consumers seek out alternatives.

3. The Washington State Liquor and Cannabis Board recently canceled a planned use-of-force training session after discovering that the instructor, former Minnesota police officer Kim Potter, had fatally shot Daunte Wright in 2021. The training, titled “Remorse to Redemption: Lessons Learned,” was intended to teach enforcement officers—who regulate liquor, cannabis, and tobacco businesses—about the consequences of using force and how to avoid similar incidents. Potter, who served 16 months in prison for second-degree manslaughter after mistaking her gun for a taser, was to lead the session. The board canceled the training out of respect for Wright’s family, but the decision drew mixed reactions. Some argued that the training could have offered valuable lessons for law enforcement, while others, including Wright’s mother, condemned the idea of Potter profiting from the tragedy. Given the board’s responsibility for enforcing cannabis regulations, the decision to cancel reflects its sensitivity to public perception in an industry where trust and appropriate oversight are essential.

4. This one is a must watch: Two Minnesota cannabis business owners appear in front of infamous Judge Judy for a dispute over some ice cream equipment and unreturned inventory. The case was recently aired on Season 3 Episode 80 (“Marijuana Meltdown”) of Judy Justice.

   
   Inside Scoop: Plaintiff Kyle Bishop indicates he doesn’t want his equipment back because Minnesota no longer allows cannabis infused ice cream thanks to a lobbying group that Judge Judy cuts him off right before he names. While we’re sad Mr. Bishop didn’t make the MN is Ready brand Judge Judy famous, MN is Ready was certainly not the “culprit” for the ban. The prohibition on cannabis-infused ice cream is due to an additional layer of strict federal regulations that the addition of any substances specifically to dairy, meat, and poultry products which, unlike other food products, are regulated not just by the FDA but also the USDA under a bevy of dairy, meat, and poultry specific laws including the Federal Meat Inspection Act (FMIA), Poultry Products Inspection Act (PPIA), and Egg Products Inspection Act (EPIA).

   
   While the FDA is responsible for determining the safety of substances in food, the USDA’s Food Safety and Inspection Service (FSIS) applies an additional layer of oversight for meat, poultry, and dairy products. Because THC and other cannabinoids are not approved by the FDA as food additives, their inclusion in USDA-regulated products like dairy and meat renders them “adulterated” under federal law. This makes it illegal to produce or sell cannabis-infused dairy products like ice cream, even in states that have legalized cannabis. In contrast, non-dairy and non-meat foods are only regulated by the FDA, and states have more flexibility to allow cannabinoids in those products, as seen with edibles and beverages in Minnesota. We rest our case.
   

5. The NCAA has made a significant change to its drug testing policies by removing cannabinoids from its banned substances list for Division I football championship and postseason play. Attorneys from Troutman Pepper explain this decision follows a recommendation from the NCAA Committee on Competitive Safeguards and Medical Aspects of Sports, which argued that cannabis is not a performance-enhancing drug and should be regulated similarly to alcohol at the school level. The policy shift reflects broader societal trends toward cannabis legalization and decriminalization, with 24 states now allowing adult-use cannabis. For student-athletes, this move could reduce the legal and personal risks associated with cannabis use, offering a more supportive environment. However, universities must still navigate a complex landscape of state and federal laws, which may pose legal challenges.

Upcoming Events

Canna Club Happy Hour hosted by Earl Giles Distillery. Every Wednesday, 5-9 PM in Minneapolis.

CannaJoyMN’s One Year Anniversary Celebration. September 21, 11-3 PM in Minneapolis.

The Great Midwest Hemp Fest. September 28-29 in Madison, WI.

The Cannabis Buzz in Minnesota Commercial Real Estate hosted by MN Commercial Real Estate Women (MNCREW). October 9, 11-1:15 PM in Minneapolis. (Continuing Real Estate Education Credit has been applied for and 1 hour is pending approval from the Minnesota Department of Commerce.)

Cannabis Banking Webinar hosted by the Minnesota Credit Union Network. October 17, 1-2:30 PM.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• Kurtis Hanna’s personal take on Nixon’s secret cannabis tapes and their implications for federal legalization

• Local government updates on new cannabis regulations and zoning laws

• Federal news on the evolving role of the FDA and DEA in cannabis regulation

and more.

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

Some sections of The Pre-Roll (Announcements, Top 5 Must-Reads, and Upcoming Events) are always free to access, but the most in-depth legislative and agency updates, industry news and intelligence, and expert insights and analysis are reserved for our paid subscribers. To unlock the full edition and stay ahead of the curve, click the button below and upgrade your subscription today.

Subscribe now

Top 5 Must Reads

1. Minnesota’s first round of license pre-approval applications draws major interest. Last month, the first batch of hopeful Minnesota cannabis entrepreneurs submitted their applications for license pre-approval. The application window, which closed on August 12, was open only to verified social equity applicants. As MinnPost reported, 1,817 applications were submitted for 280 license pre-approvals, around half of which came from applicants outside of Minnesota.
   

2. Out-of-state applicants flood Minnesota’s cannabis market. The Minnesota Star Tribune published interactive maps of license pre-approval applicant addresses.  From the article containing the maps:

   Among the out-of-state applicants, many came from states that have existing adult-use cannabis markets. More than 180 listed Arizona addresses on their entries, and hundreds more came from Illinois, Missouri, California and Maryland.
   

   There were 29 applications for microbusiness and mezzobusiness licenses from a small town in Arkansas called Eudora.

Want more details and analysis about how these stories are impacting Minnesota’s cannabis industry? Our expert analysis on this topic is available in the premium section below.

3. Expungement complications leave some would-be social equity applicants in limbo. MinnPost reports that Minnesota’s efforts to expunge cannabis-related criminal records as part of the legalization of adult-use cannabis are creating an unexpected barrier for some individuals seeking verification as social equity applications: being able to prove their eligibility after records of their convictions have been expunged or sealed. Advocates and lawmakers, including State Rep. Zack Stephenson and Sen. Lindsey Port, acknowledge the issue and are considering changes, but such revisions will not be made in time for the first round of cannabis business license pre-approvals.
   

4. Case against former Winnebago mayor for illegal cannabis cultivation dropped. Fox 9 reports that charges for illegal cannabis cultivation against former Winnebago mayor, Scott Robinson, have been dropped by prosecutors. Robertson, who was charged in February 2023 for allegedly growing more cannabis than allowed under Minnesota law, had been under investigation since early 2023 following a tip about cannabis plants in his commercial greenhouse. Authorities claimed a search of the property uncovered 240 cannabis plants, and electrical usage patterns and the smell of cannabis were used as key justifications for the search. However, Robertson’s attorney argued that the search warrant was flawed, highlighting incorrect information about power usage and the legality of the smell of cannabis in Minnesota. Additionally, his attorney pointed out that the plants had not yet flowered, meaning they contained no THC, and Robertson had planned to destroy them before they reached maturity. Prosecutors initially sought to delay the trial until 2025, but a judge denied the request, leading to the case’s dismissal. Per the article, the charges and subsequent investigation caused significant stress and reputational damage for Robertson, who resigned as mayor to avoid being a distraction. Now, with the case behind him, Robertson hopes to return to farming and contribute to the local economy by providing jobs.
   

5. Trump signals shift in cannabis position. Per the Minnesota Reformer, Republican presidential nominee Donald Trump announced his support for Florida’s Amendment 3, a ballot initiative to legalize recreational marijuana use, signaling a growing bipartisan consensus on cannabis reform. Trump’s endorsement, which also includes backing federal legislation to ease banking restrictions for marijuana businesses and rescheduling cannabis to a less restrictive classification under federal law, marks a significant shift for the GOP, which has historically been more resistant to legalization. While some, including Vice President Kamala Harris’ campaign, accused Trump of pandering, his stance could encourage more Republicans to support cannabis reform, as public opinion strongly favors legalization. A Pew Research Center poll showed 88% of Americans support cannabis legalization for medical or recreational use.

Upcoming Events

• Sept. 14th: Legacy Cup V will be held at Surly Field in Minneapolis.
  

• Sept. 17: The Lakeville Chamber of Commerce & Tourism is hosting a panel discussion at B-52 Burgers + Brew in Lakeville on local requirements for cannabis featuring Lakeville Mayor Luke Hellier, State Senator Zach Duckworth, Beth Johnston from the League of Minnesota Cities, and others.

The premium content that follows is available exclusively to our paid subscribers. This week’s premium content includes:

• In-depth commentary: Navigating the Dilemma of Out-of-State Applicants in Minnesota’s Cannabis Licensing

• Key federal, state, and local government updates

• Insights on Minnesota’s 2025 cannabis market rollout and business opportunities

Stay informed with in-depth federal, state, and local government information and updates, industry news and intelligence, and expert insights and analysis. Upgrade your subscription to access this exclusive content and stay ahead of the ever-evolving cannabis landscape.

Upgrade to Paid

Read more

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

The Pre-Roll is a reader-supported publication. Please join as a free or paid subscriber.

Subscribe now

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

State Government Updates

• OCM Job Postings: The state of Minnesota has posted job openings for nine high-level staff positions within the state’s Office of Cannabis Management: Social Equity Director, Tribal Liaison, Government Relations Director, Chief General Counsel, Communications Director, Executive Assistant, Finance Director, Human Resources Director, and Human Resources Generalist.

• Hemp-Derived Biz Registration Reminder: All businesses selling hemp-derived products must register with the Minnesota Department of Health by October 1, 2023. This requirement is not limited to retailers but also includes business-to-business sellers. The Minnesota Department of Health’s registration portal is now live.

  • As part of the registration, you must affirm you are not selling any non-compliant hemp-derived products. If you are considering seeking a license in the adult-use market, it’s important to abide by the rules.

• Public Comment Open on Vaped Medical Flower: The Minnesota Office of Medical Cannabis is taking public written comment through Sept. 30 on a petition to add vaporizable raw cannabis flower as a new medical cannabis delivery method for Minnesota’s Medical Cannabis Program.

Top 5 Reads/Sees of the Week

1. OCM Director to be Named Soon

Implementation Director for Office of Cannabis Management Charlene Briner appeared on At Issue with Tom Hauser to talk about the search for a permanent director for the Office of Cannabis Management. According to Briner, the state received 150 applications for the position (an “unprecedented” level of interest). That applicant pool has been thoroughly reviewed and narrowed down through multiple rounds of interviews, and a list of finalists has been sent to Governor Walz from which to select a final candidate. According to Briner, the new OCM Director will be announced within “a week or so.”

2. MN Supreme Court Rules Cannabis Smell is Insufficient Probable Cause

• MinnPost reports that the Minnesota Supreme Court has ruled that the smell of marijuana alone cannot be used by police as a justification to search a vehicle. While some states have clear stipulations that the smell of cannabis cannot be the sole reason for searches, Minnesota's House File 100, the cannabis legalization law that passed in May of this year, did not address this. The recent 5-2 decision in State v. Torgerson clarified that while the smell of marijuana does not provide sufficient probable cause on its own for a warrantless search of a vehicle, the smell could be one of several pieces of evidence supporting a search. The historical context is crucial, as police have often used the scent of marijuana as a pretext to search vehicles. The case that led to this ruling began with a 2021 traffic stop in Litchfield where police used the smell of marijuana as the sole basis to search the driver’s vehicle which lead to the discovery of methamphetamine. Both the district court and the Minnesota Court of Appeals deemed the evidence inadmissible due to the lack of probable cause. The Supreme Court's decision is expected to have implications for post-legalization law enforcement practices, especially given the specific regulations in Minnesota's new law regarding marijuana possession and use.

• The Star Tribune also covered the news, including commentary from Blunt Strategies’ own Kurtis Hanna:

  Kurtis Hanna, a longtime advocate for marijuana legalization, hailed the Supreme Court's ruling as a win for Minnesotans' "right to privacy."
  

  "Now that public smoking is legal, a cop that smells someone on the sidewalk smoking but they think it's coming from your vehicle isn't just going to randomly rummage through your stuff," said Hanna, who's the public policy and government relations specialist for Blunt Strategies, a strategic consulting firm for the cannabis industry. "If you're a hemp farmer and you're leaving the field for the day driving home and ... you smell like the plant that you grow for a living, cops can't search you there."

• The Star Tribune’s Editorial Board weighed in favorably on the ruling, saying:

  The ruling also has the potential to mitigate racial inequities. Racial and criminal justice advocates have long warned that allowing officers to conduct searches solely on the basis of smelling marijuana exacerbates racial disparities in traffic and drug enforcement, as Black and brown individuals are disproportionately represented in both traffic stops by police and arrests related to marijuana.

3. In Bizarre Twist, Both Bodies of Congress are Advancing Meaningful Cannabis Law Reform Legislation.

• NBC News reports that the U.S. Senate is making strides towards cannabis reform with the SAFER Banking Act scheduled for a committee hearing in the U.S. Senate next week. This bipartisan initiative aims to grant legal marijuana businesses access to mainstream banking services, a privilege they currently lack due to federal constraints. As it stands, these businesses are at risk, and their operations are hindered without the support of major financial institutions. The proposed act intends to rectify this, ensuring that banks can serve the cannabis industry without facing legal repercussions. The bill has garnered support from both Republican and Democratic senators, indicating a broader shift in legislative attitudes towards the cannabis industry, even from representatives of states where recreational use remains prohibited.

• Marijuana Moment reports that Senate Majority Leader Chuck Schumer plans to bring the bill to the Senate floor after it passes through committee and wants to see a few other cannabis reform proposals added to it via amendments before a final floor vote.

• Meanwhile, the CARE Act passed 30-14 in a Republican controlled U.S. House of Representatives Committee, which we believe is the first time in modern history a stand-alone cannabis reform bill passed out of a U.S. House Committee hearing while the GOP was in the majority. Video of the committee hearing debate on the bill can be watched here.

4. Federal Rescheduling of Cannabis: A Double-Edged Sword for Minnesota Businesses

From MinnPost, Minnesota's cannabis industry is anticipating potential advantages from a proposed federal reclassification of marijuana; but, there is also growing apprehension about the potential for an influx of larger out-of-state competitors. The Department of Health and Human Services (HHS) has suggested transitioning cannabis from its current Schedule I designation to Schedule III. Such a move could revolutionize the industry, offering better tax conditions, broader banking opportunities, and more accessible insurance. Yet, it might also pave the way for major out-of-state entities to overshadow Minnesota's intent to nurture a localized cannabis market. Blunt Strategies partner and principal Leili Fatehi, who led the MN is Ready legalization campaign, highlighted the challenges, stating, “The scheduling has been an incredible impediment for banking, loans insurance... The rescheduling hopefully begins to pretty quickly resolve some of those issues. It allows these guys to access the basic business infrastructure that is available to every other line of business. But it doesn’t entirely fix all the issues.”

5. St. Cloud State University Launches Comprehensive Cannabis Education Certificate Program

Fox9 News reports that St. Cloud State University (SCSU) is set to launch a certificate program centered on cannabis education. Starting this fall, SCSU's Professional and Continuing Education (PACE) division will collaborate with the California-based cannabis education firm Green Flower to curate the program's content. Open to anyone over 18, the non-credit certificate programs will commence on Sept. 11 and Nov. 6. SCSU President Robbyn Wacker emphasized the rapid growth of the cannabis industry and the increasing demand for knowledgeable professionals. The program will cover four main topics: Cannabis Agriculture and Horticulture, Cannabis Compliance and Risk Management, Business of Cannabis, and Cannabis Healthcare and Medicine. The certificate program is designed to be completed in approximately six months via an online format.

Trim & Shake

• Blunt Strategies’ principals Laura Monn Ginsburg and Leili Fatehi are the featured guests on the latest episode of The Hoban Minute talking about the prevailing mood within MN's cannabis industry, their efforts to incorporate hemp-based cannabinoid products into the unique Minnesota model for legalization, strategies for cannabis brands to access emerging market niches, and insights other states can glean from Minnesota’s approach.

• Speaking of Leili and Laura, Weedmaps published an article profiling the dynamic duo’s instrumental role in Minnesota's cannabis legalization journey. Minnesota joining the ranks as the 23rd state to green-light adult-use cannabis wasn't just a stroke of luck; it was the result of relentless efforts, strategic planning, and a whole lot of passion. But let's be clear: this monumental shift wasn't just the work of two people. The MN is Ready campaign was the work of dedicated advocates and industry members who all played crucial roles in this shared victory. Their collective efforts not only ended cannabis prohibition but also laid the foundation for a more inclusive and equitable industry. From championing the burgeoning low-dose hemp-derived THC market to the establishment of the Minnesota Cannabis Resource Center, the collaborative spirit has been evident. At Blunt Strategies, we're proud to stand alongside such visionaries, and we're committed to supporting local businesses as they navigate this exciting new landscape. Here's to the collective effort, and a special shoutout to Leili, Laura, and every single advocate who made this dream a reality!

Events

• The 4th Annual Legacy Cup will be held on Sept. 30.

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

The Pre-Roll is a reader-supported publication. Please join as a free or paid subscriber.

Subscribe now

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The Minnesota Cannabis Resource Center Has Officially Launched!

Blunt Strategies is proud to unveil the Minnesota Cannabis Resource Center (MCRC). Born out of the success and ethos of the MN is Ready campaign, MCRC is committed to nurturing a cannabis environment that is as thriving as it is responsible.

By championing a thorough understanding of the industry's intricacies and laying the foundation for impactful dialogue, MCRC is the public interest infrastructure for tailoring the future of cannabis in Minnesota. Here's what MCRC brings to the table:

1. Informed Stewardship: MCRC offers a comprehensive grasp of the multifaceted cannabis sphere. This deep-rooted understanding ensures that as the industry grows, it does so with localized knowledge and foresight.

2. A Productive Platform for Dialogue: MCRC offers a neutral and respected platform for diverse interests and perspectives—a space where every voice matters and contributes to the industry's holistic development.

3. Guiding the Path: Trust MCRC to be the compass in challenging terrains. With its unparalleled expertise and relationships, MCRC is poised to lead the discussions, decisions, and actions that mold Minnesota's cannabis journey.

With the success of the MN is Ready campaign under our belt (thanks to all of you!), MCRC represents the natural progression of our shared vision and a steadfast beacon to ensure that the values that pioneered the cannabis legalization in Minnesota remain vibrant in the industry's continual evolution. It's the bridge between what we aspire for and the tangible actions required to realize those aspirations.

With MCRC, we're not just shaping an industry; we're sculpting a legacy. A legacy where values aren't an afterthought, but the driving force to ensure that our green future is as principled as it is prosperous.

Visit mncann.org to sign up for updates and get involved.

MCRC in the News

• The press release announcing the creation of MCRC can be read on Business Wire.

• A recent Benzinga profile piece on Blunt Strategies partners and principals, Laura Monn Ginsburg and Leili Fatehi, included an announcement of MCRC:

  To make the long-term transition fruitful for Minnesotans throughout the state, the all-women leadership team behind Minnesota's first cannabis public affairs and strategic consultancy, Blunt Strategies, now announces the launch of the Minnesota Cannabis Resource Center (MCRC). Through Blunt Strategies, which spearheaded and led the successful MN is Ready campaign, the MCRC will engage with diverse cannabis industry stakeholders to catalyze collaborative solutions for advancing a safe, equitable, sustainable, and thriving Minnesota cannabis industry.

• KTTC also covered the news:

  “There is still a lot of confusion and uncertainty around what the timeline is going to look like for that rulemaking. When is the licensing going to open for application? When will licenses be awarded?” Leili Fatehi said.

  
  Some of that uncertainty also comes from the fact that cannabis, as a product, still isn’t legal at the federal level. That can create challenges in some cases with things like leasing property, banking, and taking out loans.

  
  “These are all things that are major considerations and major risk factors for folks that are moving into the cannabis industry,” said Fatehi, “when we’re working with clients and folks in the industry, what we’re having them do is really think about those uncertainties as part of their business plan.”

  
  Blunt Strategies offers what they call a “Minnesota Cannabis Resource Center” for those looking to enter the market.”

State Government Updates

• OCM Virtual Info Session: The Office of Cannabis Management has posted a recording of a virtual information session held on August 16, 2023 to provide “a general overview of the early work to establish OCM, an update on the temporary regulations for hemp-derived cannabinoid products, and information about upcoming OCM rulemaking.”

  One of the bigger announcements on the call came from Chris McNulty, deputy general counsel for the Minnesota Department of Agriculture, saying that the process of agency rulemaking will not be completed until Spring of 2025. Since the rulemaking process must be completed before adult use cannabis licenses applications will open, it seems the agency doesn’t expect adult use cannabis businesses in Minnesota to open until mid to late 2025.
  

  Marijuana Moment published a summary about this virtual session, as did MinnPost.
  

• New Leadership at Minnesota Board of Pharmacy: At the Minnesota Board of Pharmacy’s last meeting on August 9, the first after Governor Walz’s Administration declined to reappoint the previous Board President, Dr. Ronda Chakolis was elected the new President of the Board of Pharmacy on a 6-1 vote.

  • Blunt Take: Based on votes and comments during previous Board meetings, her position on drug policy reform is a welcome departure from those of the last Board President, Stuart Williams.
    

• Hemp-Derived Biz Registration Reminder: All businesses selling hemp-derived products must register with the Minnesota Department of Health by October 1, 2023. This requirement is not limited to retailers but also includes business-to-business sellers. The Minnesota Department of Health’s registration portal is now live.

  • As part of the registration, you must affirm you are not selling any non-compliant hemp-derived products. If you are considering seeking a license in the adult-use market, it’s important to abide by the rules.

Top 5 Reads of the Week

1. Minnesota's Green Boom: First Cannabis Tax Report 🌿✨

The Star Tribune reported yesterday that the Land of 10,000 Lakes’ July tax report shows the state netting $600K from legal hemp-derived THC sales. If this momentum sticks, the state could be pouring $70 million in annual sales. As THC beverages bubble up in popularity, the true growth wave is still on the horizon—licensed marijuana dispensaries could shoot annual sales to a heady $1.5 billion by decade's end.

2. The Wait for MN’s First OCM Director

MinnPost reports that the head for the new Office of Cannabis Management will be announced in the coming weeks. Charlene Briner, the interim head, is at the forefront of the search and predicts an early September appointment by Gov. Tim Walz. This pivotal role will tackle the immense task of drafting rules spanning from licensing requirements to the potency of cannabis products. No licenses for growing, processing, or selling will be issued until these rules are approved, projected for spring 2025. "This really is an all-hands-on-deck endeavor," Briner emphasized, pointing out the comprehensive nature of setting up and administering the new cannabis law.

3. Legal Weed’s Implications for Medical Cannabis Patients

Also from MinnPost, the legalization of recreational cannabis in Minnesota has created an opportunity for registered medical marijuana patients to potentially experience the best of both worlds. With the new recreational marijuana system in place, medical cannabis patients, who initially feared being overshadowed, can anticipate an expansion in dispensary choices, potential price reductions due to heightened competition, and increased access due to a broader range of providers.

“Home grow, in and of itself, is a game changer for patients,” says Patrick McClellan, a medical cannabis user in Minnesota. “The ability for us to produce our medication legally at home – the strains we want, using the soils we want to use – is a huge step.”

4. Red Lake Nation Debuts Mobile Marijuana Truck on Tribal Lands

Per the Associated Press, the Red Lake Nation, located in northwestern Minnesota, has plans to introduce a mobile marijuana dispensary, reminiscent of a food truck, to amplify its cannabis enterprise within tribal territories. This move comes after the successful opening of their recreational marijuana store earlier this month. While the concept of mobile dispensaries echoes ventures seen in states like New York, the latter has encountered regulatory pushback due to the absence of a finalized retail licensing framework. Tribal Secretary Samuel Strong stated that, despite an initial influx of patrons at the onset of the on-reservation NativeCare dispensary's launch, foot traffic has dwindled, averaging around 300 customers daily. Taking note of the commercial boom, operational hours now extend to Saturdays. This initiative by the Red Lake Nation, and similar ones by tribes like the White Earth Nation, are buoyed by tribal sovereignty, especially as off-reservation vendors in Minnesota might not commence business until early 2025.

“Obviously, there’s some more security concerns that would be involved with a food truck, but very similar to that concept,” Tribal Secretary Samuel Strong said. He later added, "The on-reservation NativeCare dispensary saw big crowds when it first opened on Aug. 1, but the long lines have shrunk drastically since then, Strong said. He estimates around 300 customers a day currently visit the dispensary."

5. Minnesota's New Cannabis Stance and its Workplace Implications

Peter Callaghan deserves a THC beverage and a vacation because, also from MinnPost, Minnesota's recent legislation legalizes recreational cannabis use for those 21 and older, fundamentally altering the landscape of pre-employment THC testing. While the law largely prohibits such tests, exceptions remain, particularly for what's termed as "The Seven Lucky Positions," encompassing roles ranging from safety-sensitive jobs to federally funded positions. Yet, a murkiness ensues when defining 'safety-sensitive' roles and in distinguishing THC impairment. As cannabis sheds its 'illegal drug' label, companies are urged to amend policy manuals to align with the new norm, emphasizing both worker safety and individual rights.

“Marijuana is no longer a drug. Cannabis is no longer a drug. You must amend your policy accordingly,” states [Lisa] Kons of the [Minnesota Safety Council]. With pre-employment testing for THC increasingly becoming an exception rather than the rule, the evolving dynamic prompts employers to strike a delicate balance in policy adjustments.

Events

• The CannaConnect event series is hosting a community service event on Sept. 10.

• The 4th Annual Legacy Cup will be held on Sept. 30.

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

The Pre-Roll is a reader-supported publication. Please join as a free or paid subscriber.

Subscribe now

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

1. Cannabis is now legal for adults to grow, possess, and use in Minnesota!

Don’t believe us? Here’s coverage from KSTP, Fox9, Axios, the Star Tribune, Marijuana Moment, Sahan Journal, TPT, and MPR about the big news.

From the Pioneer Press:

Advocates who worked on the bill, which passed the Democratic-Farmer-Labor Party-controlled House and Senate with just a few Republican votes, say they created a framework that prioritizes small, local cannabis businesses. They promise a focus on equity and helping those most harmed by prohibition.

They’re confident all three markets can thrive in Minnesota.

“I think it is nation-leading,” said Leili Fatehi, a lawyer and lobbyist who spent years working on the legalization bill through her firm Blunt Strategies. “We pushed to create a bill that prioritized smaller, craft businesses.”

From Northtown News Now:

While legalization itself was a priority for the DFL entering the 2023 legislative session, the expungement of cannabis-related crimes was right alongside it.

“When I came to the Senate, I was really clear with leadership and my colleagues that this was something I was very interested in because it’s a racial justice issue,” said Senator Clare Oumou Verbeten (DFL - St. Paul).

For Oumou Verbeten and many others, expungement was a way of making the legalization process more fair for communities that have been historically harmed by prohibition.

“We are expunging those records and righting those wrongs,” said Oumou Verbeten, “[We] made it really clear as we were coming into the legislature that we’re not even interested in legalization if expungement is not a part of this.”

The process itself will begin as quickly as possible. In a blog post last month, the Minnesota Department of Public Safety explained that they expect to automatically seal 66,000 records tied to cannabis offenses. An additional 230,000 records will also be eligible for expungement.

From Cannabis Tech, Leili Fatehi, Partner & Principal at Blunt Strategies, stated:

“The potential for market growth is significant, but it’s the nature of this growth that’s truly exciting. We have the opportunity to build a diverse and vibrant cannabis market that reflects the unique spirit and character of Minnesota. This isn’t about mass production; it’s about quality, craftsmanship, and community.”

She continued, “Moreover, the law’s disincentivization of MSOs means that Minnesota’s entrepreneurs won’t be competing with large corporations with deep pockets. This levels the playing field. It’s a bold move that underscores Minnesota’s commitment to its entrepreneurs and its belief in the power of local business.”

As we previously reported in the Pre-Roll, the Red Lake sovereign tribal nation in Minnesota has plans to sell adult use cannabis today. WCCO News has an updated news story about their plans. Bring Me The News reports on their first day of sales.

MPR News is now reporting that another sovereign tribal nation in Minnesota, the White Earth Nation, “will begin selling it sometime in the first half of August. Both tribal members and non-tribal adults 21 years and older would be able to purchase from the nation’s dispensary.”

2. Events

1. 2:30PM - Minnesota NORML is hosting a Legalization Day Event at Grounded Gardens in Saint Paul.

2. 5:00PM - Legalized It - A Celebration of the Legalization of Cannabis in Minnesota at First Avenue

3. 5:00PM - MN Doctors for Health Equity - Improving health for people who use drugs Community Conversation.

4. 6:30PM - 7th St Sesh - Celebrate Legalization on a Closed City Street.

5. The topic of the Minnesota Medical Association’s next Emerging Topics in Healthcare forum on August 9th is adult use cannabis. Members have free access to these forums; non-members will be charged a fee of $20. 

3. Our Canna Connect Event Was a Huge Success!

• You can watch all of the day’s panel discussions on YouTube:

• From KARE 11, “Recreational marijuana becomes legal for Minnesotans on Tuesday. While some are expressing concern, some business owners welcome the change. Canna Connect, which was held in Uptown, is just one of the events leading up to the legalization date of August 1. The event aimed to bring Minnesotans together over cannabis.”

• From MPR News, “Hundreds gathered at Canna Connect in Minneapolis Saturday to learn more about the developing recreational cannabis industry in Minnesota.”

  • Former Minnesota Governor Jesse Ventura even made a surprise announcement where he expressed “excitement for the potential of Minnesotans to grow and sell locally [during] a panel discussion on the future of cannabis product sales. He said he wants to personally involve himself in the industry here. […] ‘I want to put my name with Minnesota companies and make cannabis a prosperous business in Minnesota, by Minnesotans, keeping the money in Minnesota,’ he said.”

4. Prohibitionists Gonna Prohibition

• Sometimes it is fun to listen to prohibitionists complain about the fact that we won. From the Garage Logic Podcast comes a conversation which largely regurgitates law enforcement talking points and ad hominem attacks, as you can tell by the title of the episode, “The adult children who legalized marijuana in Minnesota did not take into account the ramifications for law enforcement.”

• The Minnesota Chiefs of Police Association’s Executive Director Jeff Potts voiced concerns over legalization on Kare11. [Insert joke about chiefing the potts here :-)]

• The Star Tribune Editorial Board is spreading false claims about how easy it is to get high on someone else’s supply in outdoor spaces. “Smokable cannabis is an intoxicant for whoever breathes in the fumes, and can produce what's known in street parlance as a ‘contact high.’”

  • We don’t disagree that contact highs are real, but it requires a “hot box” type of set up where you are in an incredibly confined air tight space.

5. Minnesota Psychedelic Medicine Gets More Press

• From the Star Tribune:

  “Minnesota has always been in the middle of the pack on these types of topics," said Kurtis Hanna, a longtime conservative drug reform lobbyist and a public policy and government relations specialist with Blunt Strategies. "If we see in this next legislative session some sort of drastic reform when it comes to access to psychedelics, it's going to make the entire nation start to have a discussion of, 'Whoa, this is not just something the regular players are tackling.'"

6. Interpreting Minnesota’s New Cannabis Law in Context

As with all new laws passed by the Minnesota legislature, especially ones with criminal implications, there will be numerous battles waged in both the court of public opinion and in actual courts on what the law means in practice. New law can not be interpreted in a vacuum but, instead, must factor in myriad other considerations including other state statutes, previous court rulings, legislative intent, and both the state and federal Constitutions (not in that order).

Legality of Cannabis Use and Possession by Minors

Over a dozen Minnesota House Republicans recently requested Governor Walz call a special session to repeal the legalization of marijuana for children.

While this sounds like an odd claim for them to make, given the fact that the bill explicitly says individuals under the age of 21 can not possess or use cannabis, their concern wasn’t completely without merit.

On the morning of July 26, MinnPost published an article stating, “Starting Aug. 1 there will be no penalty for juveniles to possess and use cannabis. And unless cities and counties act by passing local ordinances against underage use, juveniles and anyone else can smoke and vape cannabis in most public places. […]

‘Underage possession and consumption is not illegal under state law,’ [nonpartisan House Researcher Ben] Johnson said during his presentation to an audience mostly of lawyers and law students. ‘The state law is silent on folks who are under 21. It is not a protected right in statute, something that you are automatically allowed to do. However, there’s no specific prohibition and there’s certainly no criminal penalties.’”

Initially the chief Senate author of HF100 seemed to agree with the nonpartisan drafter’s interpretation of the bill, stating on record in the MinnPost article that the juvenile decriminalization of use and possession of small amounts of marijuana was intentional.

From Marijuana Moment, “But despite their intent and the GOP concerns, the reporting […] has been updated, as it appears a separate statute would continue to make possession by people under 21 a default petty misdemeanor regardless of the broader legalization law.

Drug policy reform advocate and lobbyist Kurtis Hanna pointed MinnPost to the statute. It says that activities that are illegal—but for which there are no clear penalties—are automatically considered petty misdemeanors, punishable by a civil citation and fine of up to $300, without the threat of jail time.”

Once the MinnPost article was updated, the Senate DFL chief author of HF100, a spokesman for the Governor’s Office, and the House GOP caucus members who sent the letter all issued statements stating that possession and use of cannabis by those under the age of 21 is a petty misdemeanor under the new law.

Search and Seizure

• From MPR News, Justin Collins, an assistant Washington County attorney who is assigned to that area’s drug task force, said, “I would expect that every marijuana case we charge going forward will be challenged in some way if the drugs were obtained via a vehicle search.” The same article quoted Bill Lemons, the traffic safety resource prosecutor for the Minnesota County Attorneys Association, who said, “Within Fourth Amendment searches and seizure, I would anticipate the Fourth Amendment issues would probably be heavily litigated pertaining to marijuana”.
  

• From MinnPost, “Back in the pot-is-illegal days, a police officer who smelled marijuana on a driver or in a car could use that alone as probable cause to conduct a search of a car without first obtaining a search warrant from a judge. […] A recent appeals court case in State v. Lindekugel found that odor remains enough probable cause for a search but that it is better for it to be part of the “totality of the circumstances. […]

  
  ‘As the state correctly asserts, we are bound by precedent,’ the appeals court wrote in that decision. ‘Until that precedent is changed, the smell of marijuana emanating from a vehicle gives police probable cause to search that vehicle for contraband.’

  
  ‘With the new law, we’re all gonna find a way to litigate this,’ James Gempeler [a St. Paul criminal defense attorney] said. ‘It’s gonna be muddy for a while unless we get more guidance from those who allegedly know more than us. I think there is some gray area, and there are going to fights. The aroma of marijuana isn’t illegal anymore.’”
  

• From Northern News Now, “According to [Duluth Police Chief Mike] Ceynowa, drug-sniffing K-9s will still be utilized because those dogs are more trained to sniff for fentanyl, methamphetamine and heroin.

  
  He added it is important the dogs alert to marijuana to ensure everything found is under the legal limit you’re allowed to possess.

  
  “Oftentimes you’ll find more than one drug when they’re doing a search warrant,” Ceynowa said. ‘You may find marijuana, and that amount may be legal to possess within that location, but the fentanyl or methamphetamine or other drugs not.’”

The right to sell farm products without a license

The Minnesota Constitution says, “Sec. 7. “NO LICENSE REQUIRED TO PEDDLE. Any person may sell or peddle the products of the farm or garden occupied and cultivated by him without obtaining a license therefor.”

Does this provision mean Minnesotans over the age of 21 who legally grow cannabis at home are legally able to sell what they harvest?

Minnesota NORML presents an argument in their recent blog post that the answer may be yes in some situation, but they also provide some healthy skepticism in Minnesota’s courts by saying, “the outcome [of using this defense] could be uncertain”.

7. History

This Saturday, August 5th, marks 14 years since Blunt Strategies’ own Kurtis Hanna hosted his first informal public meeting to discuss cannabis law reform. This meetup group later ended up becoming the official Minnesota affiliate of NORML, the National Organization for the Reform of Marijuana Laws.

Share

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

This is a premium content issue of The Pre-Roll exclusively for paid subscribers. If you’re not a paid subscriber, upgrade your membership now!

Upgrade to Paid

1. State Regulatory Update

• One of our intrepid sources recently informed us that the Minnesota Department of Health (MDH) (which recently took over oversight of cannabinoid products from the Board of Pharmacy while the Office of Cannabis Management is being setting up) is taking the position that tinctures containing nonintoxicating cannabinoids are not approved for sale under the recently amended MN Statute 151.72 subd. 3(b) which states:

Read more

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

The Pre-Roll is a reader-supported publication. Please join as a free or paid subscriber.

Subscribe now

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

1. Thanks for your patience.

As you're probably aware, we got busy with a few things over at the legislature this year. We appreciate everyone’s patience while we spearheaded the campaign to legalize adult-use cannabis, and after our victory laps (yes, plural), we’re back to delivering our regularly scheduled programming to all of you fine folks.

2. So what happens next?

The state is in the process of standing up the Office of Cannabis Management (OCM), which will then have to do some pretty extensive rulemaking. The state is currently taking applications for the director of OCM, as well as for appointment to the Cannabis Advisory Council.

• 👀 side note: the Minnesota Board of Pharmacy’s President, Stewart Williams, wasn’t reappointed to his position on the Board. He served on the Board since 2011. It is assumed that a new President will be elected at the Board of Pharmacy’s next meeting on August 9th.

In next week’s premium issue of the Pre-Roll, we’ll delve into what the timeline and dynamics around the OCM and rulemaking are looking like.

Upgrade to Premium

3. Answers to some more burning questions

Yeah yeah, rulemaking blah blah blah… but when do we get to start growing and smoking it?

• As reported by KSTP, starting Aug. 1, weed is legal but selling it isn’t. You can legally possess up to 2 ounces of cannabis outside your house and up to 2 pounds inside it. You can also legally grow your own supply. But, you won’t be able to legally sell or purchase adult-use cannabis until the Office of Cannabis Management sets the rules and begins licensing cannabis businesses—that could take up to 18 months. For those who'd rather take matters into their own hands, you can legally grow your own weed at home (Minnesota is the 11th state in the nation to allow home cultivation of cannabis). And, while you might be tempted to pop over to a nearby state where sales are legal and bring some back, Blunt Strategies’ own Leili Fatehi reminds us, "Marijuana is still a scheduled substance as far as federal law goes, so transporting it across state lines is considered a crime federally." So, for now, you might want to hone those green thumb skills and get ready for some home cultivation! Which leads us to…

• From the Star Tribune:

  With Minnesota's legalization of marijuana for recreational use and home growing starting Aug. 1, an emerging crop of retailers is popping up in preparation for an influx of weed gardeners. Retailers plan to sell carefully curated seed varieties and hold cannabis growing classes come Aug. 1.
  
  "We have a lot of people coming in and asking us how to grow," said Bridgette Pinder, a licensed grower who runs an outdoor hemp farm and the THC storefront Grounded Gardens in St. Paul. "I tell them growing is easy and very challenging at the same time."
  

  Currently, Pinder grows plants to make hemp-derived CBD and THC edibles, lotions and salves that she sells at her store. Starting in August, she plans to sell cannabis seeds and plants. In addition, she'll also start to host classes with step-by-step instructions on how to care for the plants.

  "It takes a lot of time and learning," she said. "Right now, there's no place you can go learn."

• Double your Bridgette, double your fun: Pinder also spoke with WCCO Radio about the issue.

• There is one exception to the rule when it comes to buying and selling adult-use cannabis. As the Minnesota Reformer reports, “the Red Lake Nation’s tribal council voted on Tuesday to legalize recreational marijuana and begin selling it — to both tribal and non-tribal members — on Aug. 1. The move could make Red Lake Nation the first entity to operate a recreational dispensary in the state.”

• So where can you smoke your homegrown or otherwise procured cannabis started Aug. 1? From MinnPost, Minnesota will be only the fourth state to allow smoking of cannabis in public—but, that’s subject to several exclusions. Just like with tobacco, you can’t smoke cannabis anywhere the MN Clean Indoor Air Act applies. Also like tobacco, local governments will have the power to restrict where cannabis can be smoked. When it comes to multi-family and rental housing, landlords and building managers can’t ban the possession of cannabis products inside apartments, but they can ban smoking and vaping cannabis. In condominiums, the clean indoor air laws do not apply. However, homeowners associations can adopt rules and bylaws regarding cannabis use. If cannabis use interferes with the comfortable enjoyment of life or property, it can be considered a nuisance, allowing for lawsuits and injunctions. Here’s a nice video explainer:

  

  • A side note—the MinnPost article includes the non-sequitur that “Leili Fatehi, the manager of the marijuana legalization advocacy group MN is Ready, said she thought it was understood that public use would be allowed.” A few members of the press have mildly grumped that they were led to believe public use would not be allowed. Just like that one time THC edibles got accidentally legalized on purpose, no one is hiding anything, guys—read the bill.

4. Banking

• From KSTP, “Any time a new industry is in its earliest stages of development, there are likely to be unforeseen obstacles. That’s certainly true of the fledgling recreational cannabis industry in Minnesota. However, among the biggest obstacles is one everyone is aware of but can’t do much about. Most federally-regulated banks are reluctant to work with cannabis businesses because marijuana is still considered illegal under federal law.”

  • Recent reporting from Marijuana Moment suggests the jury is still out on whether the SAFE Banking Act, which would resolve this banking issue, will get its first floor vote in the United States Senate this summer or not.

5. Local governments still at it

• From the Star Tribune, “Mayors, city councils and city staff are just starting to think about how they will deal with the regulatory and cultural shift that is adult-use cannabis, which will become legal Aug. 1 in Minnesota. Mankato passed a moratorium lasting up to one year in late May. Last fall, Richfield passed a yearlong moratorium on businesses selling the lower potency hemp-derived THC products legalized in 2022. Five counties and 72 cities have moratoriums on the products, according to the Public Health Law Center at Mitchell Hamline School of Law. Eight other cities repealed moratoriums after instituting licensing regimes.” 

  • The issue was discussed on local conservative radio’s Twin Cities News Talk.

• From Kare11, The City of West Saint Paul Monday night passed a moratorium on new cannabis retail businesses until January of 2025. The City of Hopkins is taking a different approach with its temporary moratorium, which is on Tuesday night's city council agenda. Hopkins is starting with just a 90-day moratorium, assuming the council can adopt a set of rules across the next three months.

• From PostBulletin, “a proposed Rochester ordinance would restrict the number of licensed marijuana retailers to less than half of the city’s licensed liquor stores.

  It would also bar the ability to open a new cannabis business until 2025.”

  • Rochester’s proposed ordinance can be viewed here.

• From PostBulletin, the public hearing, which began Monday July 10th, will continue during the council's 7 p.m. meeting on July 24.

• From Lakes Area Radio, “members of the Detroit Lakes City Council are expected to debate and vote on the first reading of a new cannabis consumption ordinance for the city. The discussion will be held during the council’s regular meeting on Tuesday night and would effectively ban the use of cannabis products in any public setting. Under the new ordinance, cannabis-product consumption within the Detroit Lakes city limits would be confined to private residences, including the yard of that property.”

• These proposals were recently added to Apple Valley's website:

  • Amending Chapter 157 Adding Moratorium for Cannabis Restrictions Study

  • Amending Chapter 130 General Offenses Cannabis Use in Public Property and Places

• From Valley News Live, “the East Grand Forks City Council voted unanimously on a moratorium -- not allowing the sale of cannabis within city limits.”

We’ll have a lot more to say about what’s happening at the local level in next week’s premium issue of the Pre-Roll.

Upgrade to Premium

6. Minnesota’s Medical Cannabis Program Expands

• Minnesota’s Medical Cannabis released a bulletin announcing that the program began accepting certified IBS, OCD patients. Patients certified by a participating health care practitioner as having either of these conditions can buy medical cannabis at a medical cannabis dispensary starting Aug. 1, 2023. This means our state's medical cannabis program now has 19 qualifying medical conditions.

• Here is the recently published Minnesota Office of Medical Cannabis testimonial video called Mike's Story:

7. Minnesota’s first pre-roll ad?

In 1869, a pharmacy at Bridge Square (crossroads of Hennepin, Nicollet & Washington Avenues) advertised selling "CIGARETTES ESPEC. CANNABIS INDICA" in the Minneapolis Daily Tribune.

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

The Pre-Roll is a reader-supported publication. Please join as a free or paid subscriber.

Subscribed

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

1. Legalization Bill Update

• HF100/SF73 continues to make its way through its dozens of committee stops. Our friends at Marijuana Moment have been providing excellent detailed coverage of each committee hearing, including descriptions of the amendments that have been adopted and rejected along the way:

  • So far in the House, HF100 has passed through: Commerce Finance and Policy, Judiciary Finance and Civil Law, Environment and Natural Resources Finance and Policy, Labor and Industry Finance and Policy, State and Local Government Finance and Policy, Agriculture Finance and Policy, Workforce Development Finance and Policy, Human Services Policy, Education Finance, and Health Finance and Policy.

  • So far in the Senate, SF73 has passed through: Judiciary and Public Safety, Commerce and Consumer Protection, Jobs and Economic Development, Agriculture, Broadband, and Rural Development, Environment, Climate, and Legacy, and Health and Human Services.
    

• One testifier who’s shown up to a few committee stops to share his story has particularly caught the public’s attention. As reported by the Star Tribune, Former Minnesota Governor Jesse Ventura shared the story of how he broke the law to obtain marijuana to treat his wife's seizures before the state legalized medical cannabis in 2014. He hopes that legalizing marijuana for adult-use will make it more affordable for those who rely on it for medical purposes given how notoriously expensive Minnesota’s medical cannabis program continues to be. Ventura also testified that the tax on marijuana should be no higher than alcohol's and that the minimum age for use should match the age at which one can enter the military. More recently, Ventura has declared that he hopes to be appointed as the director of the Office of Cannabis Management when the bill becomes law.

• Jesse’s not the only one getting major attention for his comments in committee. GOP Senator John Jasinski of Faribault went viral this month for arguing that cannabis shouldn’t legalized because it would put drug-sniffing dogs out of a job. Jasinki characterized it as a “big issue,” but hasn’t had anything to say about the small issue of the tens of thousands of Minnesotans who’ve been put out of a job by non-violent cannabis crime convictions.

Stay tuned for news and analysis about the top issues under negotiation as the adult-use legalization bill makes its way through the legislature in the next premium issue of the Pre-Roll exclusively for our paid subscribers. Not a paid subscriber? Click the button to become one now!

Upgrade to Premium

2. Seriously?

• Per MPRNews, a 70-year-old Minnesota man with diabetes went to his favorite smoke shop and asked the clerk for something sweet to stabilize his blood sugar and, according to him, was sold a package of gummies but wasn’t told they contained hemp-derived THC. He ate half a dozen of them, got high, and ended up going to hospital. He then filed complaints with the local police, the attorney general’s office, the MN Board of Pharmacy, and the U.S. Food and Drug Administration. The AG’s office investigated the complaint and closed the case. The local police said no laws had been broken. The FDA said the issue is in the state’s jurisdiction. The Board of Pharma, the state agency with jurisdiction, is currently investigating the complaint. According the article’s author, the incident “raises fresh questions about the lack of clarity around Minnesota’s fledgling THC products law and whether the state is ready to regulate cannabis.”

  • Uh… okay, let’s see if we’ve got this right. A customer over the age of 21 went into an age-restricted smoke shop that sells hemp-derived THC products in a state where those products are legal for smoke shops to sell to consumers over the age of 21. He then consumed 7 servings of the product in one sitting and didn’t get violently sick, suffer any injury, or die as he would have with just about any other legal intoxicant. The AG’s office investigated and, presumably, didn’t find anything to support the assertion that the store clerk diabolically “tricked” a frequent customer of obviously advanced age who explicitly disclosed his medical condition into buying an intoxicant that, if compliance with the existing legal requirements passed in July 2022 for these products, came in a childproof package containing only 10 gummies and almost certainly costing more than $15. There’s nothing in the article to suggest that the product wasn’t appropriately labeled as containing THC plus dosage and serving size information, as is also currently required under the law passed in July 2022. The state agency with authority to enforce that law is currently investigating the complaint—pursuant to its complaint process—and, if it finds that the product wasn’t properly labeled, has the authority to embargo the product and impose penalties. And, there’s a 300-page bill making its way through the legislature right now to put in place a comprehensive regulatory framework for such products and an entirely new agency to enact and enforce that framework. So what exactly are the fresh questions about the state’s readiness to regulate cannabis?

3. Speaking of Manufactured Issues. . .

• Minnesota Lawyer features an article about one of the most asked and answered and then asked again and answered again and asked [you get the point] questions—how can employers possibly maintain workplace safety if cannabis is legal? What sets this article apart, however, is its inclusion of sound and reasonable guidance from one of the many employment attorneys who have sound and reasonable guidance on this issue:

  Some have suggested that legalization could exacerbate a worker shortage. “But I don’t see that in my practice,” [David] Waytz [a shareholder and employment and labor attorney with Minneapolis-based Fredrikson & Byron] said.

  The proposed bill does not include a requirement that employers test for cannabis – unless a job-related government contract requires it, he said. Otherwise, companies could choose not to test for cannabis.

  Overall, the bill is “just unclear” in regard to other, testing-related aspects — not unusual for a bill that is still in the process of working its way through legislative committees, Waytz noted.

  The concept of “safety sensitive” employee has already been defined, Waytz pointed out: a position — including management and supervisory roles — in which impairment caused by drugs or alcohol may threaten the health and safety of any person.

  His advice to clients: “You need to decide how much you care about cannabis usage in the workplace; it’s certainly a safety concern for industries like construction, manufacturing, health care (among others).” For employers in other industries, “if you don’t want to worry about cannabis use, you don’t have to test for it.”

  According to Waytz, “the general trend with my clients across industries has been to limit the amount of cannabis testing.”

  Given the scientific and legal complexities, “we counsel employers to focus on safety and job performance, and not necessarily get hung up on whether someone will ultimately test positive for drugs. But companies should remember that they can still test for almost any other drug under the sun.”

4. Canna Lounges & Restaurants are All the Buzz

• Minnesota’s first cannabis lounge, Potshotz, opened its doors last month. From KROC: “Potshotz serves drinks infused with THC and, similar to a brewery, they have plenty of games to encourage you to hang out with your friends for a while. Of course, there are plenty of snacks for sale as well, plus coloring books if you're in a doodling mood.”

• Bent Paddle Brewing Company also launched its Cann-A-Lounge in Duluth last month. From Bring Me The News: “The lounge is designed to be reminiscent of That '70s Show, with imbibers of hemp-derived beverages and edibles able to pass the time with puzzles, adult coloring books, and vintage High Times magazines. Surrounded by plants, multiple couches and nooks, the hangout spot also includes a vinyl record player and a selection of records to choose from.”

• Wanna guess when Minnesota’s first cannabis restaurant, Juniper, opened its doors? Last month! How’d you know? From the Star Tribune: “The chef-driven vegan restaurant — which will not serve alcohol — will offer guests a tincture with 5 milligrams of THC to be sprinkled onto food and drink as one wishes. It's a kind of choose-your-own THC adventure in an upscale setting.”

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Subscribe now

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

The 2023 session of the Minnesota Legislature kicked off last week with the introduction of a new and improved (but still very much in need of further improvement—see below) adult-use legalization bill. With a newly elected pro-legalization majority in both the House and the Senate, as well as the support of the Governor, this is the year that we’re going to get adult-use cannabis legalized in Minnesota BUT IF, AND ONLY IF, we keep our wits about us and work together and with legislators in a constructive and organized manner.

From now through the end of session, the Pre-Roll will be your weekly bulletin for tracking relevant bills, hearings, opportunities to testify, and all other #mnleg-related info and intel.

1. New Bill Introductions & Hearings

• Jan. 5: Rep. Zack Stephenson (DFL-Coon Rapids) and long list of other DFL representatives introduced HF100, a bill to legalize and regulate adult-use cannabis.

  • The bill will be heard in the House Commerce Committee and will be heard this Wed., Jan. 11 at 1:00PM in Room 10 of the State Office Building. A link for streaming the hearing will be posted here.
    

• Jan. 9: Sens. Lindsey Port (DFL-Burnsville, Clare Oumou Verbeten (DFL-St. Paul), Aric Putnam (DFL-St. Cloud), and Erin Murphy (DFL-St. Paul) introduced SF73, the Senate companion to HF100.

  • The bill has been referred to the Senate Judiciary and Public Safety Committee. No hearing date has been announced yet.

Stay tuned for our analysis of HF100/SF73 in this week’s upcoming premium issue of the Pre-Roll exclusively for our paid subscribers. Not a paid subscriber? Click the button to become one now!

Upgrade to Paid

• Jan. 9: Rep. Mike Frieberg (DFL-Golden Valley) introduced HF175, a bill allowing medical cannabis manufacturers to distribute medical cannabis to Tribal medical cannabis program patients and related provisions.

  • The bill has been referred to the House Health Finance and Policy Committee. No hearing date has been announced yet.
    

• Jan. 9: Sens. Mark Koran (R-North Branch) and Jeff Howe (R-Rockville) introduced SF89, a bill providing that a a person may not be denied the right to purchase, own, possess, or carry a firearm solely on the basis that the person is enrolled as a patient in the medical cannabis registry.

  • The bill has been referred to the Senate Judiciary and Public Safety Committee. No hearing date has been announced yet.

2. MN is Ready

• ICYMI, the MN is Ready campaign—Minnesota’s unified advocacy effort to pass adult-use legislation in 2023—announced the next phase of our effort and the addition of former House Majority Leader Ryan Winkler as our new campaign chair!

  • From the press release:

    Pro-legalization advocates launched today the next phase of MN is Ready, a comprehensive strategic campaign to legalize adult-use cannabis in Minnesota. The new phase of the campaign brings together the largest and most diverse coalition of cannabis policy stakeholders in Minnesota – including industry members, aligned advocacy groups, community advocates, and other supporters – to engage grassroots constituencies and work directly with lawmakers to pass full adult-use cannabis legalization in 2023. 
    

    The campaign also announced that outgoing House Majority Leader Ryan Winkler will join the campaign as its new chair. In 2019, Winkler launched the "Be Heard on Cannabis" tour of community listening sessions on cannabis legalization in 15 cities across the state. In 2021, Winkler introduced H.F. 600, Minnesota’s first comprehensive adult-use legalization bill, which the Minnesota House passed that same year.
    

    The campaign is managed by political strategist Leili Fatehi of public affairs firm Apparatus GBC. The leadership team also includes veteran fundraiser Chris Kluthe, who serves as the campaign’s development director, and cannabis policy expert Maren Schroeder, who will direct the campaign’s industry and public engagement efforts. The campaign has retained lobbyists Will Blauvelt, director of government relations at Stinson LLP, and Henry Erdman to lead its work at the State Capitol.
    

    The campaign’s growing coalition of supporters includes the United Food and Commercial Workers International Union (UFCW), the ACLU of Minnesota, the Great Rise, Americans for Prosperity, the Minnesota Cannabis Beverage Association, and many Minnesota cannabis businesses including growers, processors, manufacturers, and retailers.

  • MN is Ready has set forth 6 core principles and objectives for adult-use legalization in Minnesota. Ryan Winkler discussed those principles in detail last month in an op-ed titled “Minnesota’s legalization of marijuana will be the nation’s best” published by the Star Tribune.

• Check out Marijuana Moment’s article for more details about the campaign and what’s to come.

• Blunt Strategies’ own Leili Fatehi, who is the campaign manager of MN is Ready, spoke with Kare11 about the campaign.

• Winkler also joined Blois Olson on Blois’ podcast to talk about the campaign and the need for adult-use legalization. Listen here.

If you’re interested in joining or supporting the MN is Ready campaign, please contact leili@bluntstrategies.com.

3. Legalization Bill Introduction & Fanfare

• On Thursday, Jan. 5, the authors of the new adult-use legalization bill held a press conference to present the bill. You can watch that press conference here.

  • The press conference and bill release was covered by Kare11, MPRNews, Star Tribune, and Marijuana Moment

• MinnPost’s Peter Callaghan wrote an article focused more specifically on the tax provisions in the bill. From the article:

  The chair of the Minnesota House committee with control of taxes had a message for education and social services advocates Thursday: Don’t expect recreational marijuana to raise money to enhance those programs.
  

  Rep. Aisha Gomez, the Minneapolis DFLer who leads the House Taxes Committee, used the rollout of a massive recreational marijuana bill to say it won’t produce a bucket of cash for other programs.
  

  “Cannabis taxes in our bill are not going to solve anyone’s social problems,” she said. “We’re not going to use taxes to fix the education changes that our communities need, to build all the affordable housing that we need, to fix all the infrastructure that we need.
  

  “We designed this bill to address the wrongs of prohibition, to bring people out of the illicit market and into a regulated market, which means we try not to have a high tax on cannabis so it can compete.”

• The Minnesota Reformer and Star Tribune also did a deeper dive into the bill provisions.

• Governor Walz’ tweeted his support for adult-use legalization—MN is Ready and so is Governor Walz:

• Not only that—Governor Walz’ campaign also sent out a email blast with the subject like “Minnesota is Ready” directing people to sign an online petition in support of adult-use legalization. From Marijuana Moment’s article about the email:

  Walz, meanwhile, has been pushing the legislature to move ahead with legalization—and he’s leveraging the recent momentum to build additional support as lawmakers prepare to enact the policy change.

  As part of that effort, the governor sent out an email blast that begins by saying that “Minnesota’s current cannabis laws are doing more harm than good.”

  “It’s time for us to follow common sense and harness the proven benefits of legalizing adult-use cannabis—from expanding our economy, improving our criminal justice system, creating good-paying jobs across our state, and creating more space for law enforcement to focus on violent crime,” the email says.

  …

  The email and petition, of course, also serve a campaign fundraising goal of generating contact information from potential donors. But it’s also another signal that the governor sees opportunity to finally end prohibition in Minnesota with the Democratic majorities in place.

👏 Kudos

• Josh Wilken-Simon, owner of Legacy Glassworks, has been selected as a changemaker by Voyage Minnesota. Read Voyage Minnesota’s interview with Josh here.

The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.

Got a hot tip? Interested in sponsoring? Wanna get to know each other better? Email us at preroll@bluntstrategies.com.

1. We’re gonna legalize the $&!% out of cannabis

On Tuesday, Minnesotans re-elected Gov. Tim Walz and elected a DFL majority to both the MN House and Senate, finally clearing the way for legalization of adult-use cannabis. Woohoo!

• Former Gov. Jesse Ventura said on his podcast yesterday that Gov. Tim Walz called him on Wednesday and personally assured him that legalization will be among the first bills the legislature will pass in 2023. Here’s what Ventura said, as reported by Fox9:

  "The sticking point for cannabis in Minnesota were Republicans in the (Senate)," said Ventura. "Well, they lost it now, and the governor reassured me that one of the first items that will be passed -- Minnesota, get ready -- cannabis is going to have its prohibition lifted. That’s the news I got today."

Haven’t you heard, Jesse? MN doesn’t need to get ready. #MNisReady!

• As reported by Fox9, here’s the current pro-legalization whip count:

  MNisReady, a coalition of pro-legalization groups, said 62 current or incoming House members have pledged to support legalization. Eight incoming House Democrats haven't stated a position, said Leili Fatehi, a spokeswoman for the coalition. In the House, 68 votes are required to pass a bill.
  

  In the Senate, where 34 votes are needed, 28 current or incoming DFL senators have pledged support, Fatehi said. Another six incoming Senate Democrats haven't taken a public position.

What’s next?

• The 2023 legislative session begins on January 3.

• 👀 In next week’s premium issue of the Pre-Roll, we’ll delve into what the timeline and dynamics look like at the state legislature, including what new special interests we can expect to see, what they’re going to be lobbying for, and how MN’s legalization law may be shaped.

2. What the election outcomes mean for MN’s pot parties

• As MPRNews reports, none of the candidates running under either of Minnesota’s two pro-legalization third parties, the Legalize Marijuana Now (LMN) Party and the Grassroots-Legalize Cannabis (GLC) Party, cleared the 5% vote threshold that’s required to be considered a major political party in Minnesota. Moving forward, the GLC Party will no longer have major party status. LMN Party will maintain its major party status through 2024 because it cleared the threshold in the 2020 Senate race.

3. Meanwhile, in other states…

• Maryland and Missouri voters approved ballot measures to legalize cannabis while North Dakota, South Dakota, and Arkansas voters rejected cannabis legalization on their ballots. Vox provides a good overview of the playing field and what happened in each of these states.
  

• Marijuana Moment reports that the ballot measure results in Maryland, Missouri, and North Dakota are consistent with the results of a Fox News/Associated Press poll administered the week before the election that showed a majority of North Dakotans (59%) opposed to legalization and a majority of Marylanders (57%) and Missourians (63%) in support of legalization. South Dakota’s measure, which received 53% “no” votes, however, is inconsistent with the Fox/AP poll results, which showed 57% of South Dakotans in favor of legalization. The same is true in Arkansas where 56% of voters rejected their state’s ballot measure, while the Fox/AP poll showed 55% of Arkansans in support of legalization. Marijuana Moment offers some possible explanations for the disconnect between the polling and the results in the latter two states:

  There are certainly a number of factors that might be at play, including the fact that the Fox/AP survey was designed to include “the views of all Americans, as voters and non-voters.” But the results also seem to speak to a challenge that several reform campaigns ran up against this cycle: some people who back legalization put specific policy provisions over general ideology.
  

  That is, support for the basic idea of ending prohibition is consistently popular among Americans, but the debate on what legalization should look like has evolved and become more nuanced, which manifested in several campaigns in 2022.
  

  Disagreements about provisions related to licensing, equity, expungements, tax rates and revenue distribution, home grow rights and more may have pushed some of those people who said they back legalization in principle in Arkansas and South Dakota to vote against the individual initiatives.
  

  It was exactly those kinds of policy disputes that led to a fair amount of intramovement advocacy splintering in Missouri as well, which could help explain the sizable gap separating the survey and vote results.
  

  In South Dakota, meanwhile, a majority of voters approved an earlier legalization ballot measure in 2020 that was later overturned in courts. Unlike that initiative, however, the new pared-down proposal that was defeated this week did not contain provisions to legalize and regulate cannabis sales. It’s possible that a sizable number of voters only wanted to end prohibition if it came with a mechanism for people to legally buy marijuana.
  

  In Maryland, the relative consistency between the results might have to do with the simplicity of the legalization referendum that went before voters. It asked: “Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1st, 2023, in the state of Maryland?”

• An advisory referendum gauging voter support for cannabis legalization appeared on the ballot in 9 Wisconsin municipalities. Voters overwhelmingly voted “yes” in support of legalization in all of the municipalities.
  

• Colorado voters approved a ballot measure to decriminalize and establish a regulated access program for certain psychedelic plants and fungi.

  • 👀 Keep an eye out for the next issue of the Pre-Roll—it’ll contain info about Minnesota’s advocacy efforts around decriminalization of certain psychedelic plants.

4. MN Industrial Hemp Program now accepting applications for 2023

• The MN Department of Agriculture has opened online applications for licenses to grow and/or process industrial hemp in Minnesota in 2023. Applications will be accepted until April 30, 2023, but those actively growing hemp plants indoors past December 31, 2022 must renew their license before expiration at the end of the year. Additional information is available here.

👏 Kudos

• Angela L’Esperance, founder and president of Minneapolis-based Ms. Jane Accounting, is among Finance & Commerce magazine’s Top Women in Finance 2022. From the magazine’s profile of Angela:

  L’Esperance has been active in supporting industry nonprofits, laying the financial groundwork for the Minnesota Hemp Growers Cooperative, the Minnesota Is Ready Coalition and the Great Rise, a collaboration created to advocate for a cannabis economy in Minnesota that provides equal opportunity for all.

  
  She is passionate about women’s leadership and advocacy in the cannabis space. “I’d love to see an equitable cannabis economy in Minnesota, once legalized, and a budget for supporting the communities directly and negatively impacted by the war on drugs.”

Angela’s the best, and we’re so proud to see her leadership, talents, and skills that she brings to our industry recognized and celebrated by the broader finance and business professional community.

📅 Events

• Nov. 12: Legacy Cannabis’ THC Festival, featuring the 3rd Annual Legacy Cup competition, will be held this Saturday, Nov. 12 at Minneapolis Cider Company from 1-7 PM. A panel of ten judges including comedian and cannabis industry personality, Ngaio Bealum will help decide the winners in various categories including best THC gummy and best THC beverage. Local breweries including Surly Brewing, Bent Paddle Brewing Company, Modist Brewing and more will compete to be crowned best THC beverage. In addition to the panel of judges, attendees of the free event will be able to cast their vote for the state’s best cannabis products. Though Legacy has hosted two previous CBD Cups, Saturday’s festival will be the first event with THC products available due to the recent change in state law. More information, including the full list of categories, is available HERE.