Hoppy 4/20!

North Star Cannabis Consulting Newsletter

Jen Reise
April 17, 2025

Jen Randolph Reise
Founder
North Star Cannabis Consulting

This year, I’m celebrating Easter, spring, and 4/20 on the same weekend. A hollow chocolate bunny has been obtained!
I also am getting ready to help guide Minnesota’s small cannabis businesses through the next steps to obtain licenses and open their doors. I met with OCM on Tuesday (lots of good info below) and I’ll be holding a free webinar on Wednesday, April 30 at noon to talk you through the next steps. Register here to attend or get the replay!

Also in this newsletter:

-When I expect the MN market to open

-Legislative updates

-Tons of upcoming events, including a slew of 4/20 events this weekend!

Minnesota Cannabis News

Final Rules Published

Final rules published; they are the same ones sent to the administrative law judge, and are available for download here: https://mn.gov/ocm/laws/rulemaking.jsp

As many sources have noted, the publication of the rules allows OCM to start issuing business licenses.

Jen's Take: While some sources (like this uninformed legislator who talked to MJBiz https://mjbizdaily.com/minnesota-posts-recreational-marijuana-rules-lawmaker-predicts-no-sales-till-2026/) ) have predicted lengthy additional time periods before cannabis businesses can open their doors, I believe we will see the first microbusinesses opening SOON - in May or June 2025. The timing of the next steps depends on OCM as well as the progress that each applicant is making on building their business.

No News on the Tribal Compacts

Still waiting for this shoe to drop. Stay tuned, I guess.

Application Process & Licensing Update

I met with OCM on Tuesday and we had an excellent discussion about the next steps towards licensing, the regulatory hurdles for small businesses, and the supply chain.

I'm excited to share the next steps in detail with applicants through my next webinar, on April 30. This free webinar will walk you through exactly what’s expected after the application phase, including compliance requirements, documentation, site readiness, and other crucial milestones that determine whether your license will be granted — and when you can legally begin operations.

I also learned some good news for those of you who are awaiting the lottery. First, OCM is making good progress reviewing applications! (Watch your emails if you have a pending application, as the Requests for More Information emails generally give you 14 days from the email to submit corrected materials. Don't miss it.)

Second, OCM's plan is to hold a series of lotteries for priority capped licenses types in approximately the last week of May / first week of June: Cultivation, Manufacturing, and Mezzobusiness. (Retail is going to be run later, "within weeks.") Each of those lotteries will be run with the social equity applicants first, for one-half of the capped number. Then, all social equity applicants who did not get picked in that lottery, plus all of the non-social equity applicants, are in a second lottery for one-half of the licenses.

The new news, for those who have been following closely, is that OCM's March 24 total application numbers already included the group of SEAs who had an opportunity to correct their licenses. OCM has now completed that review and either rejected or notified those applicants that they are moving ahead. That means that the probability of an applicant getting picked in the lottery has marginally increased compared to the numbers I ran last newsletter, because the rejected applicants are no longer in the pool. I don't have exact numbers but can re-run them when I do.

To sum up: All capped types other than Retail can expect a lottery at the end of May or early June. And, your probability of winning one of those licenses is at least as good as the numbers I ran for you in the last newsletter!

However, I'm also watching the lawsuit that was filed by some approved SEA applicants, and a judge's order on April 4 that OCM should have held the social equity lottery last fall, rather than cancelling it entirely after the lawsuits from rejected applicants. This story in Cannabis Business Times is a pretty good overview.

Jen’s Take: I expect that OCM will argue in the April 21 court hearing that it is so close to running these lotteries and getting the market open that the judge should dismiss the lawsuit. Basically, they are now doing what the court is ordering them to do, rendering this case moot. Courts move so slowly compared to industry and even government. However, it is possible that what comes out of that hearing will mean some restructuring of the lottery process I outlined above, and if so, I will break it down for you next newsletter!

Other Updates from OCM

Updates have been made to the Local Government webpage and specifically to the OCM Local Government Guide – a Guide to support locals Adult-Use Cannabis and Lower Potency Hemp Edible Licenses (Please refer to the guide updated on 4.14.15)
OCM hosted a local government webinar on navigating accela and cannabis licensing. Watch here: Guidance for Locals - Zoning and Local Retail Registration March 31, 2025
OCM announced that the rules governing Minnesota’s adult-use cannabis market have been published in the State Register. The final approved rules are available on OCM’s Rulemaking webpage.
OCM is hosting a Lab Technical Standards Informational Session on May 2, 2025. The event registration can be found on the OCM calendar and will go out in the OCM Insider. Link to register: Microsoft Virtual Events Powered by Teams

Minnesota Legislature Update

I’m hearing that all cannabis policy pieces that are going to move forward this year have basically been collected into the Cannabis Omnibus Bill, though the House and Senate versions differ somewhat. That bill is now SF 2370 on the Senate side and HF 1615 on the House side. H/t to Maren Schroeder and Kurtis Hanna of Blunt Strategies for helping me understand what is likely to move ahead.

The draft omnibus cannabis bill currently includes:

Cleanup around what licensees can do (including making crystal-clear that micros and mezzos can buy hemp-derived edibles from MN manufacturers of them, and that cultivators can sell immature plants and seedlings, as well as flower, to other cannabis businesses)
Allows those with retail licenses to give away samples including flower! during an event (such as, ahem, the Legacy Cup in September)
Enhanced legal protections for medical patients and access to the medical program for “visiting patients” (i.e. people enrolled in other states’ or tribal medical programs)
Allows OCM to license testing labs that are pending accreditation, and sets out a process (see line 44.21 of the House bill)

And some proposed changes to how the hemp-derived industry is going to have to change in about 6 months when they also must go through the licensing process and are regulated under Chapter 342 instead of Chapter 151 of Minnesota Statutes.

Finally allows sublingual hemp-derived products to be sold (see line 50.21 in the House bill)
Creation of a low-potency hemp edible wholesaler license category, in response to protests from the alcohol lobby that they should not have to go get a cannabis wholesaler license to do that. Folks with this license could bring in hemp-based THC products from out of state and sell them to retailers and wholesalers in state. (see new section at line 65.26 in the House bill)
Allows delivery of hemp-derived products by, e.g., Door Dash to continue under Chapter 342 (see line 61.17 in the House bill)
Clarifies that lower-potency hemp edible manufacturers MAY create products that are not compliant with MN law and are designed to be sold into other states, under certain conditions (see line 65.10 in the House bill)

More Guidance for Hemp-Derived THC Businesses

With the publication of rules, I'm seeing some manufacturers and retailers of hemp-based THC products worry that they are now subject to all of the new standards in the rules, and/or the slightly different statutory scheme that will soon be in effect.

Good news: OCM confirmed in the meeting I had with them this week that the hemp-derived industry is not subject to these changes until their time for licensing, which is in about 6 months.

Bad news: The next 6-9 months is going to be another time of huge transition for this young industry. Some people currently running hemp-derived businesses plan to transition them into cannabis businesses (and are waiting on licensing), which will shift the competitive landscape in many ways. Other businesses plan to continue producing hemp-derived THC - but the rules will affect their businesses as well, in about 6 months, and need preparing for.

Industrial Hemp - MN Program

Minnesota Hemp Growers and Processors: Apply by April 30 for the 2025 Season! Learn more here.

Industry Classifieds

Seeking Minnesota commercial real estate brokers with experience with the cannabis industry! Contact Jen to connect ([email protected])

—

House of Oilworx in Anoka is only open for a few more days. They are closing after seven years, and has furnishings that new retailers may want to buy: coolers, display cases, etc., as well as an array of Halloween and canna-focused stuff.

Have a property or services to offer to my readers? Or, looking for one?

I’m going to try this Classifieds Section approach and see if it helps people connect as they build their cannabis businesses in Minnesota. Contact me for more info: [email protected]

Northern Lights Podcast: 4/20 Event Preview

S2 E27 of the Northern Lights Podcast: This week, Stephen welcomes Dr. Clemon Dabney, PhD (aka Doc Dabs), to break down top 4/20 events across the Twin Cities. Plus, an inspiring interview with Stefanie Mulrooney of BLNCD and Ukiyoki.

📺 Watch Now

North Star Cannabis Consulting is proud to be the lead sponsor of the Northern Lights Podcast since its early days!