Minnesota Lawmakers Consider Early Cannabis Cultivation Licenses to Prevent Industry Delays

Minnesota lawmakers are considering a proposal to begin issuing some cannabis cultivation licenses before the adult-use program rulemaking is complete, the Star Tribune reports. The proposal would give the Office of Cannabis Management (OCM) the option of using the state’s current medical cannabis rules to allow some companies to begin growing cannabis before 2025. 

The proposal aims to prevent possible delays in the adult-use rollout as OCM is not expected to issue industry regulations until 2025. Currently, only social equity applicants who have been preapproved for a cannabis business license and obtained local zoning approval would be allowed to start cultivating cannabis early. 

Ali Britton, a prospective cannabis cultivator, on Tuesday told lawmakers that if the state does not “create a pathway for well-prepared cultivators” to start building their facilities now, “Minnesota will not have a cannabis supply chain until mid-to-late 2026 at the earliest.”

“This would mean that the anticipated windfall of tax revenue from the cannabis market will not be available until at least 2027.” — Britton via the Star Tribune 

Leili Fatehi, a lobbyist who worked with lawmakers on the cannabis legalization bill, added that not allowing cultivators to begin growing now could lead to “an insufficient amount of supply coming online.” 

Interim OCM director Charlene Briner told lawmakers that the agency will use the medical cannabis rules “if that option is deemed necessary to stage the market.”   

“OCM will continue to evaluate how or if we can use that tool while still preserving our commitment to equity and our obligation to stand up the market effectively,” he said.