Minnesota lawmakers made changes to the state’s cannabis law to expand the social equity program to all military veterans, while also implementing new regulations for the industry, the Minnesota Reformer reported.
Pending Gov. Tim Walz’s signature, the new measure codifies inclusion of all veterans in the social equity program, which could give them a competitive advantage when applying for cannabis business licenses. The program, designed to prioritize individuals harmed by previous cannabis prohibition, will now be open to the state’s more than 327,000 veterans, about 6% of Minnesota’s population, according to the outlet.
Social equity applicants will receive benefits such as preapproval of licenses and early cultivation rights, which could allow them to start selling products as soon as the first retail stores open, possibly in the spring of 2025.
Lawmakers also expanded the state’s medical marijuana program to permit physician recommendations for cannabis for any condition they deem appropriate.
In addition, the legislature implemented the following regulations:
- Caps on the number of licenses granted to cultivators, manufacturers, and retailers.
- A shift from a points-based licensing system to a random lottery.
- Exemptions to license limits for cities and towns seeking to open municipal cannabis stores.
- Permission for bars to sell both THC and alcoholic beverages to individuals who are not visibly intoxicated.
The modifications largely align with earlier recommendations from the state’s Office of Cannabis Management.
Back in March, Minnesota policymakers considered a range of options on how to launch the upcoming recreational market. Regulators backed a previous bill that would allow for just a “finite number of temporary licenses” awarded to qualified social equity entrepreneurs to ensure the launch of the adult-use market by early next year.
The number of licenses and criteria were unclear at that time. If more applications than temporary licenses were received, they would be awarded via lottery under that previous proposal.
The changes in the current bill also address some questions around municipal opt-in for dispensaries.
Municipal governments, including Osseo, St. Joseph, and Cook County, also said they were evaluating whether to launch government-run cannabis dispensaries, similar to municipal liquor stores, which is allowed under the state’s legalization law. However, the OCM had not drafted formal rules for such dispensaries yet.
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