Social Equity Mandate Could Severely Delay the Launch of Minnesota’s Adult-Use Cannabis Market

Social Equity Mandate Could Severely Delay the Launch of Minnesota’s Adult-Use Cannabis Market

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Advocates and stakeholders hope to pass measures allowing growers to plant early, but state cannabis officials said they would not offer legislation for that effort due to social equity concerns.


The French writer and activist Voltaire once said, "Don't let the perfect become the enemy of the good." By constantly striving to achieve the absolute best and highest result, those individuals seeking perfection can sometimes avoid accomplishing the desired task or project altogether.


"Don't let the perfect become the enemy of the good."

- Voltaire, French Writer and Activist


The case of Minnesota's ardent intentions to launch America's most socially equitable recreational cannabis market could become Voltaire's quote come to life for the thousands of hopeful entrepreneurs and consumers eagerly anticipating the state's adult-use cannabis market launch set for Spring 2025. 


From the outset, Minnesota's path to recreational weed sales has been a bumpy one at best. Governor Tim Walz's first nominee to head the Office of Cannabis Management resigned one day after the announcement over questionable business practices concerning her hemp company. 


Moreover, the process of establishing the rules to govern licensing, cultivation, and other related issues has been bogged down by details related to items ranging from a lottery system for deciding pre-approved licenses to growers being licensed to begin growing plants in time for the Spring 2025 launch date.


Many lawmakers responsible for authoring and championing the initial adult-use cannabis law last Spring have been working tirelessly to amend and add to their legislation to streamline the licensing and cultivation concerns vital to a successful market launch.


However, their efforts may be all in vain due to an OCM interim director and governor hell-bent on placing social equity concerns above all others related to the creation of Minnesota's legal adult-use cannabis industry.


This week, OCM Interim Director Charlene Briner said her office will not be seeking changes to the legalization statute enabling some marijuana growers to plant early so that some cannabis products will be ready to sell when retail dispensaries open in early Spring 2025.


The decision came following a meeting between OCM officials, potential cultivators, and retailers last week over concerns that waiting until 2025 to issue all licenses could further delay sales. Supports of the early planting legislative language have argued that only early cultivation would prevent open doors to empty stores next Spring.


After the meeting, Briner stated that there was no consensus on how to solve the problem without jeopardizing the "social equity" pillar at the heart of the reform measure and the overall industry. She informed stakeholders and legislators that her office could not conceive a pathway allowing some early planting and harvesting that treated all potential growers equitably. 


The predominant proposal making its way around the state legislature centers on using current medical cannabis rules to regulate and monitor early cultivation. However, on Monday, Briner indicated that the approach is wrought with flaws because those regulations did not envision outdoor farms and that no rules exist for that type of growing operation. Likewise, those guidelines do not make any accommodations for social equity applicants and are thus a no-go for the OCM.


"OCM has always been aware of the need to stage cultivation prior to retail sales. There is no doubt we understand the supply chain and the need for retailers to actually have product available as part of a successful market launch. What became clear was that there was no consensus on (the) approach. One of the concerns is making sure we don't sacrifice the need for speed with the equity that is so essential in the bill," Briner said.


"OCM has always been aware of the need to stage cultivation prior to retail sales. There is no doubt we understand the supply chain and the need for retailers to actually have product available as part of a successful market launch. What became clear was that there was no consensus on (the) approach. One of the concerns is making sure we don't sacrifice the need for speed with the equity that is so essential in the bill."

- OCM Interim Director Charlene Briner


However, she did leave out hope for some potential early cultivation. According to Briner, current law and some changes she has already proposed to lawmakers could give the OCM the authority to move toward some level of early planting.


"We thought it was better not to introduce specific language and continue to work on the goal of staging the market," Briner said. "If the bill moves forward, we would have the flexibility, if needed, to authorize cultivation under the medical rules without additional legislative change."


"We thought it was better not to introduce specific language and continue to work on the goal of staging the market. If the bill moves forward, we would have the flexibility, if needed, to authorize cultivation under the medical rules without additional legislative change."

- OCM Interim Director Charlene Briner


Despite her office's desire to avoid specific language allowing for early plantings, Briner has no direct influence over proposed legislation as she works for the governor's office. The initial legalization measure's primary sponsor in the Senate, Sen. Lindsey Port (DFL), has said she is preparing amendments to allow some social equity growers to begin planting by the last quarter of 2024. The early authority would be granted equally among large bulk growers and smaller operations, known as mico and mezzo businesses.


"It's the staging process that we've been focused on building in the entire time. We need cultivation to happen before retail opens. I am working on language to spell this out so that applicants will know this is a possibility and be able to take it into consideration as they are preparing themselves and their applications," Port said via text message.


"It's the staging process that we've been focused on building in the entire time. We need cultivation to happen before retail opens. I am working on language to spell this out so that applicants will know this is a possibility and be able to take it into consideration as they are preparing themselves and their applications."

- MN State Senator Lindsey Port (DFL)


While industry advocates and Port's colleagues hope to achieve some level of compromise to allow for early cultivation, the ever-present cloud of the law's social equity mandate continues to slow the process and weigh down all parties involved.


The desire to see all of the wrongs perpetrated during prohibition righted, particularly concerning communities of color, is admirable and extremely important. However, allowing social equity to drive all elements of the rulemaking process could delay the launch till 2026, an outcome no one wants.












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