Minnesota Draft Cannabis Rules Provide Clarity on Licensed Cannabis Business Operations

Published via their Linked In Newsletter / Alert

 

The Minnesota Office of Cannabis Management (OCM) recently proposed draft rules to clarify key operational requirements for cannabis businesses, including co-location policies, THC concentrate limits, cultivation canopy measurements, production capacities, and delivery regulations.

Members of the public can submit formal comments on draft rules through the Office of Administrative Hearings (OAH) website until 4:30 p.m. on Wednesday, February 12. Instructions on how to use the system are available on the OAH website. Interested parties can view submitted comments in real time. Your comments, suggestions, and feedback will play an important role in shaping regulations. Contact us if you would like assistance in submitting an impactful public comment.

Key Highlights of the Minnesota Draft Cannabis Rules

The proposed rules are largely operational guidelines for licensees. Significantly, despite the recent controversy related to certain license applications, they are silent on True Party Of Interest provisions. Below are notable highlights of the draft rules.

Co-location Rules

The rules clarify that vertically integrated license holders are not required to co-locate all operations. Rather, a licensee may perform “each activity at a separate location.”

Separate licensees, however, cannot co-locate “on the same premises.” Neither the rules nor the underlying statute define “premises.”

THC Concentrate Limits

Adult-use vapes are limited to 70% THC. Some observers expect commenters to seek an exemption for vape cartridges, and a majority of the comments submitted to date have taken issue with this potency limitation.

Cultivation Canopy Measurements

Regarding indoor cultivation, the rules indicate that canopy is measured by calculating the total square footage of each distinct cultivation area containing mature, flowering cannabis plants. Distinct cultivation areas include trays, tables, and shelves or may be demarcated by trellising, tiers, or other identifiable boundaries.

For outdoor mixed-light facilities, cultivation may occur in a greenhouse or hoop house, and acreage is calculated based on the total area of “mature, flowering cannabis plants minus any clearly demarcated walkways.”

Read the full article originally published by Jason Tarasek and Colleen Mitchell on VicenteLLP.com to learn more about Minnesota’s proposed draft rules including production capacity for cannabis manufacturers, delivery requirements and tribal dispensaries.



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