Minnesota considers social equity, government-run dispensaries for recreational cannabis launch

At least three localities are in discussions to have government-operated stores.

Minnesota policymakers are considering a wide range of options on how to launch its upcoming recreational marijuana market next year. Regulators are backing a bill to give social equity entrepreneurs the first licenses, while some municipal and county governments are considering opening their own dispensaries instead of letting private businesses do it.

The legislative bill being championed by the state’s Office of Cannabis Management 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, CBS Minnesota reported.

The number of licenses, and the criteria to win one, are still unclear. The bill was introduced Thursday, and it must win approval from both legislative chambers before becoming law.

If the bill does succeed, and if the office receives more permit applications than there are temporary licenses available, then they’ll be awarded via lottery, CBS Minnesota reported.

“When I say temporary licenses, I mean early licenses – so as soon as this summer depending on if the legislature decides to take us up on that,” OCM interim chief Charlene Briner said last month during a hearing.

The bill would also repeal three of the state’s medical marijuana business permits available under current law.

Meanwhile, the cities of Osseo and St. Joseph, along with the Cook County government, are weighing whether to launch government-run cannabis dispensaries, Minnesota Public Radio reported. Local governments have that option under the state’s adult-use legalization law, akin to how some cities own and run their own liquor stores, which often provides a major revenue stream.

Although the state OCM has yet to draft formal rules on how exactly city- and county-run dispensaries would have to operate – making the concept still a ways from becoming reality – local officials are seriously considering the option.

“We are looking for any potential revenue stream that can help offset our budget increases,” Riley Grams, Osseo city administrator, told MPR.

Both Osseo and Cook County have formal committees that have been tasked with evaluating pros and cons of opening dispensaries run by their respective governments, while St. Joseph officials have held talks about it but not taken other steps.

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John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.


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