Office of Cannabis Management Hosts Implementation Update Webinar

The Office of Cannabis Management hosted a webinar for the public to provide an update on their legislative, implementation, and organizational work.

At the end of January, the Office of Cannabis Management (OCM) hosted a webinar for the general public to provide an update on various components of their work, including their recently published legislative reports, interagency collaboration, and rulemaking.

View a recording of the OCM’s webinar.

Legislative reports

The webinar highlighted two legislative reports submitted by OCM in January, an Examination of Cannabis Consumers Demand in Minnesota and an OCM Annual Report to the Legislature.

The market demand report indicates a robust demand for cannabis in Minnesota, though there remains some uncertainty about the impact of hemp-derived cannabinoid products on the adult-use market.

The legislative changes proposed surround supply chain improvements and strengthening social equity goals. The office also proposes changes in the order of operations within the licensing process to prevent a bottleneck.

Under current law, when the OCM receives an application, they must send a copy of it to the local jurisdiction where the business would be located before the office assesses the application for eligibility. It proposes that OCM complete initial application vetting and move the local government zoning verification toward the end of the process, maintaining the current local zoning authority in law.

The office also recommends legislation to authorize the creation of temporary licenses for social equity applicants to allow qualifying candidates to move through the application process early, placing them first in line for licensure once the office begins opening licenses to the entire market and authorizing businesses to operate. If granted authority by the Legislature, the OCM anticipates beginning to accept applications for temporary licenses by the end of the summer. While these applicants won’t be able to operate until the office authorizes them to, the temporary licenses would allow a first mover advantage.

Enforcement changes for low-dose hemp products

Under current law, the Office of Medical Cannabis has the authority to regulate low-potency hemp products containing THC and is currently staffed with inspectors to enforce the law, however they are not authorized to regulate cannabis products. The OCM has authority to regulate and enforce the law surrounding cannabis products, but is still building out its enforcement capacity.

The office is recommending legislation to accelerate the transition of the Office of Medical Cannabis’ enforcement team to OCM by as early as July 1, 2024. In the meantime, the office is working on interagency agreements to better align enforcement authority and capacity.

Rulemaking update

The office is currently conducting public engagement outreach and drafting rules to govern the adult-use cannabis industry. OCM intends to publish a Notice of Intent to Adopt Proposed Rules in fall 2024. When these are published, there will be a written comment period before the rules must be approved by an administrative law judge. At the end of the process, the Gov. Tim Walz has the authority to veto the rules. The office anticipates their publication of Notice of Adoption in early 2025, which is when the complete license applications will be available.

League involvement

The League continues to communicate feedback with the OCM and assist the office as they work to fulfill their legislative obligation to generate model ordinances for local governments. The League will continue to monitor legislation proposed regarding adult-use cannabis and update cities on state action, guidance for cities, and other important information regarding the establishment of the adult-use cannabis industry.

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