The changes to Minnesota cannabis laws have now been consolidated into a single cannabis omnibus bill on each side of the Legislature: a bill passed the House last week, and a similar but distinct bill has been working its way through the committees of the Minnesota Senate.
On Tuesday, April 30, the Minnesota Senate Commerce Committee heard public testimony from many community members, considered a variety of amendments, and passed a bill that we expect will voted by on the full Minnesota Senate TOMORROW.
Highlights from the Senate bill as it currently stands:
-Includes OCM's proposed early round for social equity applicants, for all license types
-Includes OCM's proposed move to a "qualified lottery" for social equity applicants and also in the general round
-Includes caps on license types, with roughly one-half of the total licenses for each type being awarded in the social equity round and then half in the full round
-Adds language from OCM that somewhat fleshes out the SOPs and other requirements for a submitted application in order to be "qualified" to get into the lottery - in response to concerns that it would be too easy for people to just throw their hat in. There will be paperwork!
-Adds true party of interest language from OCM - this will not allow people to submit duplicate applications and overlapping ownership of 10%+, addressing concerns raised there
-Small early cultivation win: Those social equity applicants who win in the lottery for license types that include cultivation (micro, mezzo, and bulk cultivation) will be able to start cultivating (estimated end of 2024)!
-Yet another definition of emerging farmer (the 4th way to be a social equity applicant): this one looks to small, current farmers.
Jen's take: I'm glad to see the true party in interest language and some more requirements in the bill. OCM, Senator Port and others are really trying to listen to advocates and avoid some of the pitfalls of a lottery that we've seen play out in other states.
That said, getting cultivation started ASAP is a huge deal in order to have supply when dispensaries open. Many expert testifiers spoke before the committee about how long it takes to get a successful grow up and running, and how failing to allow broader early cultivation will delay the legal market. I am aware of continuing negotiations led by Blunt Strategies and others to get more early cultivation than the limited win in the Senate bill - stay tuned.
Finally, a warning: there's much more to come. Amendments can be added in the Senate tomorrow; it has to pass a very divided Senate; and then a conference committee will work to sort out the differences between the House and Senate bills and make decisions about what gets into the version sent back for a vote by each chamber.
