A No-No for Zaza, a Hwy 35 Detour, and an Act Two for the One-Day Czar
This week's issue includes: the latest from state agencies, local governments, and courts here and near
The Pre-Roll curates the most important cannabis news and developments at the intersection of policy, politics, and industry development. With over 3,100 subscribers, the Pre-Roll is Minnesota’s premier source for cannabis-related information and intelligence.
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Top 5 Must Reads
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.
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.
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.
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]
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!
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