Adult-use cannabis sales in Minnesota moved a step closer to fruition when an administrative law judge signed off on the draft rules that will govern the market.
The judge approved the rules without alterations, according to a Monday news release from the Minnesota Office of Cannabis Management (OCM).
The rules will be published in the Minnesota State Register and “go into effect later this month,” the release noted.
The approval allows the OCM to begin issuing licenses to applicants who have completed all steps of the application process.
“The adoption of rules is the most significant step to launching the cannabis market because the office cannot issue business licenses until they are place,” Eric Taubel, the OCM’s interim director, said in a statement.
“The judge’s approval of our proposed rules without changes shows that we did our work to engage with the prospective cannabis business community and put together a reasonable structure for ensuring consistency, safety and equity in Minnesota’s cannabis industry.”
The approval of the adult-use rules came only days after a Ramsey County District Court judge ordered the state’s marijuana regulators to hold a lottery to issue business licenses to qualified social equity applicants.
That ruling came amid concerns the social equity licensing lottery might be canceled altogether.
More than 1,000 applicants qualify for social equity licenses, with many applying for license types that are not capped and won’t be subject to a lottery.
Applicants for license types that are capped – cultivator, mezzobusiness, manufacturer and retailer – will participate in lottery drawings this summer to obtain licenses.
Meanwhile, 600-plus applicants have moved through the preapproval process that the state held last fall.
After completing application requirements, including background checks, submitting signed labor peace agreements with unions and securing local government approvals, they’ll be the first to receive business licenses.
“It was important for us to preserve early-mover advantages for social equity applicants envisioned by” state lawmakers, Jess Jackson, the OCM’s director of social equity, said in a statement.
“By ensuring the applicants who qualified during license preapproval have the first chance at licenses once rules are approved, we are continuing to prioritize social equity in every stage of licensing.”
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