The Minnesota House on Thursday approved legislation making changes to the state’s new law legalizing cannabis for recreational use, including a pre-approval process for businesses to get a head start as regulators plan for market launch next year and contentious revisions to how those licenses will be issued. Supporters say giving the green light to early — pre-approved — licenses for businesses to get a head start will position them well for the target market launch of next year. It was part of the request from new state regulators who will oversee the new legal industry.
Rep. Zack Stephenson, DFL-Coon Rapids, who is the lead author on cannabis legislation in the chamber said the change will allow those people to take the steps necessary to line up capital, secure real estate do all of those things knowing that they will have a license down the road, which will effectuate a faster startup once those licenses actually issue. Only people who meet the criteria for a social equity applicant would qualify for the early mover advantage, and there would be a finite number of these licenses available.
The legislation also includes an update to the process by which licenses will be issued that’s sparking fierce debate. It scraps the merit points-based system for a lottery system instead to issue business licenses for cultivating, manufacturing, and selling cannabis in retail stores. Those seeking a license would still have to meet certain criteria before entering that pool, but then licensees would be chosen at random. Charlene Briner, the interim cannabis office director, has expressed concerns about the subjectivity of the points system and potential lawsuits, leading to the switch to a lottery system. Some in the industry believe this move could jeopardize the law’s social equity goals.
Additional changes in the bill expand the medical cannabis program to allow healthcare providers to certify patients for medical cannabis without prior approval from state regulators. Patients could designate a caregiver to grow up to eight plants at home on their behalf if they are unable to do so themselves. The Minnesota Senate is also working on its version of the legislation, aiming to address differences with the House before the session ends. Despite the approval in the House, concerns remain about the direction of the new law and its implications for the cannabis industry in the state.
