New problems pop up on eve of cannabis licensing

April 2, 2025

ST. PAUL, Minn. (FOX 9) – Minnesota is expected to be a full ‘go’ on the cannabis industry in about two months, but the laws aren’t quite complete almost two years after recreational use was legalized and there are a couple potentially big problems still to solve.

Medical vs. recreational

Winners and losers:

Hopeful business owners are worried a new piece of legislation could create a medical monopoly.

On the flip side, medical patients say they’ll suffer without the changes.

Kim Kelsey was there on Day One of Minnesota’s medical marijuana market, buying cannabis for her seizure-prone son, Alec.

Ten years later, she’s happy with the results but worried the treatment will disappear.

“I’m deeply concerned that the current framework doesn’t ensure continued access for patients like Alec,” said Kelsey.

Competing markets?

Recreational usually wins:

Adding recreational cannabis where medical marijuana markets already exist typically shakes out with the medical market shrinking as the recreational market grows.

Minnesota’s two medical companies expect the same here, but Rep. Nolan West is hoping to give them a lifeline.

“If there is no viable medical cannabis market because these regulations make it impossible, we’re going to have trouble maintaining access to medications of our medical patients and that is something nobody wants,” said Rep. West, (R-Blaine).

Supply shortage?

Maybe, maybe not:

West’s new bill aims to avoid a supply shortage in the recreational market by allowing medical cannabis companies to supply it, as long as they don’t let the medical market collapse.

It would also let them operate retail stores.

Critics say it would dramatically reshape Minnesota’s marketplace, stacking the deck against small businesses before they’ve had the chance to compete. 

“The shortage talking point is not rooted in fact,” said Clemson Dabney, CEO of Doctor Dabs. “Even if they were to get 45 grams per square foot, which is really conservative estimate on yield, that would be over four million pounds of cannabis produced just by the micro cannabis license types.”

The two medical cannabis providers have already applied for medical-recreational combination licenses, and they’re connected to retail locations across the Metro, so they’re in good shape for the market’s launch.

Competitors say that may be too much of an advantage.

The Source: FOX 9’s Corin Hoggard reported on the story Wednesday from the Minnesota State Capitol.

 

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