Caps, Caps, and Caps
This week's issue includes: lots of local governments capping retail licenses, Vireo changing captains, and Minnesota's progress on decriminalizing caps (of the mushroom variety)
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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Top 5 Must Reads
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.
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.
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.
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.
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.
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