Tax Reports, Mobile Dispensaries, and the Latest Incarnation of MN is Ready
In this free-content issue: the latest from OCM 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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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:
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.
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.
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.
“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.
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 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.
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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.