Big Leaps at OCM, the MN Supreme Court, the U.S. Senate, and more
In this free-content issue: an update on the timeline for naming a first OCM Director and the week's top news items
The Pre-Roll curates the most important cannabis news and developments at the intersection of policy, politics, and industry development. With over 1,500 subscribers, the Pre-Roll is Minnesota’s premier source for cannabis-related information and intelligence.
The Pre-Roll is written by Blunt Strategies, Minnesota’s first and only full-service strategic consultancy cultivated exclusively for the cannabis industry.
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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.
Want more news, updates, and intel about what’s going on at the state legislature, Office of Cannabis Management, and other state agencies? It’s in our premium-content issues of the Pre-Roll, exclusively for our paid subscribers!
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.
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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.