Lawsuits Dismissed, Zoning Twists, and Polling Shifts
This week’s issue includes: legal commentary on dismissed cannabis lawsuits, a preview of Minneapolis’ revised zoning proposal, and new polling on federal legalization
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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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.
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
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.
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.
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.
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.
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.