ST. PAUL, Minn. — The Minnesota House on Thursday approved legislation that makes changes to the state’s new law legalizing cannabis for recreational use, including a pre-approval process that could give companies a head start as regulators plan to enter the market next year , and controversial revisions to how those licenses will be granted. issued.
Advocates say they have greenlighted early – “pre-approved” – licensing for companies to get a head start, which will position them well for next year’s market launch. It was part of the request from new state supervisors who will oversee the new legal sector.
Rep. Zack Stephenson, DFL-Coon Rapids, the lead author of the cannabis legislation in the House, said the change “will allow people to take the steps necessary to raise capital, secure real estate and all those things knowing that they will soon be licensed, which will allow for a faster start-up once those licenses are actually issued.”
Only people who meet the criteria for a ‘social equity’ applicant would qualify for what is described as the ‘early mover advantage’ and there would be a finite number of these licenses available. Stephenson and others have emphasized that these licenses won’t mean business operations will start sooner — like opening dispensaries or putting seeds in the ground.
That’s raising concerns among some in the industry and Rep. Nolan West, R-Blaine, who tried to amend the bill Thursday to allow early growing but failed. Currently, the targeted launch is for 2025, but West argued that could be delayed even further if the state waits for the regulatory process to complete without allowing early cultivation of plants.
“We need to grow immediately, as quickly as possible, because again it’s about a safe and regulated place. You’re not taking it seriously, I would say,” West said during the debate.
“What I see is that, as the situation stands now, we are facing a terrible launch,” he added.
The legislation also includes an update to the process by which permits are issued, which is causing intense debate. It scraps the merit-based system that weighs a number of qualifications – including a person’s status as a social justice applicant – to instead issue a business license to grow, produce and sell cannabis in retail stores for a lottery system. Those seeking a license would still have to meet certain criteria before being accepted into that pool, but then licensees would be chosen at random.
Charlene Briner, Interim Cannabis Office Director, has told lawmakers what she fears the points system under current law makes the process too subjective and could lead to lawsuits, as is the case in other states with similar programs.
House Speaker Melissa Hortman told reporters Thursday that she endorses the move.
“At some point when you’re directing certain requests to go ahead ahead of schedule than others, the fairest way is random,” she said.
But some Minnesotans looking to cash in on cannabis believe the exact opposite: that a “vetted lottery,” as it’s being described, won’t achieve the law’s social equity goals.
In a letter to DFL leaders, small business owners seeking licensing suggested the proposed system would “jeopardize the integrity of the market and the prospects of those most affected by past drug policies.”
“When we ask our members who are trying to get into the cannabis industry, they are not afraid to compete on merit – what they want is a fair shot at winning a license. And they believe that the merit-based system is the best way to do that,” said Nathan Young, chief cannabis policy officer for the Minnesota Black Chamber of Commerce, in an interview.
The Minnesota Senate is also putting together its own legislation with changes, and there will be a joint panel of lawmakers from both chambers that will resolve the differences before the session ends.
“I look forward to the conference committee discussions and continued work on this bill, especially the provisions surrounding the proposed changes to the lottery, which I know many people are thinking about working on,” Stephenson said. “We are still very open to a conversation on that provision.”
Other changes in the bill passed Thursday would expand the medical cannabis program. Healthcare providers could certify a patient for medical cannabis without prior approval from government agencies. And patients could designate a care provider for this grow up to eight plants for them at home if they cannot do so themselves – a reduced version of an earlier bill from this session.
Caroline Cummings
