ST. PAUL, Minnesota – The landscape of Minnesota’s cannabis regulations is undergoing a transformation to benefit businesses in anticipation of next year. However, the introduction of a lottery for licenses has left some feeling left out in the cold.
The State’s Cannabis Management Authority announced its intended revisions to the cannabis legislation on Friday to the legislative bodies. The aim is to streamline the licensing procedure, minimize the economic burden on candidates, and eliminate ghost companies by issuing temporary permits, including 50 designated for retail entities.
These permits will be awarded to entrepreneurs adversely affected by former cannabis statutes or those residing in economically disadvantaged areas. However, under the revised legislation, qualifying individuals are now required to hold a 65% stake in the business, a change from the previous requirement of full ownership.
“The revised plan paves the way for larger, multi-state entities to enhance their presence in Minnesota,” noted Calandra Revering from the Minnesota Association of Black Cannabis Professionals.
There is growing concern that businesses from outside the state will entice eligible social equity candidates to serve as nominal proprietors.
“Let’s be perfectly clear: This isn’t about gaming the system,” Charlene Briner, the interim director of the Cannabis Management Authority, emphasized. “We’re not looking to inundate the system with applicants.”
Authority officials are keen on ensuring that businesses emphasizing social equity can secure financial support. These businesses will be scrutinized for their operational viability before being considered for a draw to receive one of the temporary licenses, which will later be upgraded to permanent ones once the state initiates that process, projected to occur in the initial quarter of 2025.
Currently, even those awarded temporary licenses are prohibited from selling cannabis or cultivating more plants than is permissible for an individual.
The legislation regarding cannabis is still under refinement, with expectations for a more comprehensive version to be unveiled next Wednesday.
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