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Minnesota City Considers Opening State’s First Government Marijuana Store

February 5, 2024 by Ben Adlin

The City Council of Osseo in Minnesota is weighing whether or not to open Minnesota’s first municipally operated marijuana retailer. Leaders say this would give them more control over the appearance and operation of the store.

In an interview with FOX 9, a local TV station, Councilmember Mark Schulz stated that “there’s no way for a town to say ‘no, we don’t want this kind of store here’.” “If our public safety department has concerns about a new store, why not let them have a seat at table?” asked Councilmember Mark Schulz in an interview with local TV station FOX 9.

Schulz said the plan was “a viable option” for communities to be able have a hand-on stake in its operation in their community.

Minnesota’s marijuana legalization law, adopted last year by the state legislature, does not allow municipalities to ban businesses that sell marijuana outright. The municipalities can limit the number of shops, but they must have at least one license for every 12,500 people.

Osseo is a suburb near Minneapolis with a population of 2,700 according to the 2020 Census. This means that officials may not need to permit a store.

Minnesota’s cannabis law is different from most others in that it allows municipalities to operate their own retail marijuana stores. Last year, the League of Minnesota Cities stated that the provision was “a unique opportunity” for Minnesota cities but more research is needed to determine “the legal ramifications of a marijuana retail store.”

Although government-owned marijuana shops are rare in America, they’re not unheard of. North Bonneville, a city in Washington State, opened a municipally-owned store in March 2015 The store struggled with finances, but moved to Stevenson, a nearby town, several years ago. Marijuana Moment was able to contact a city representative on Monday who confirmed that North Bonneville is no longer involved in the cannabis industry.

Some provinces, like Quebec, have a state monopoly on cannabis retail.

Osseo formed an ad-hoc committee to study the problem last year, and the city administrator updated the council last month.

The report states that one option is to open the store within “a future potential new City Hall and Public Safety Building,” the same building in which the Osseo Police Department will be located.

The report states that there may be a stigma associated with purchasing marijuana, or other THC-containing products, if they are located near a Police Department.

The city may consider buying the building that was once the Osseo Press, now that it has relocated its operations.

In a city report that was published last month, officials said they were waiting for the state’s Office of Cannabis Management to hire a director and open license applications.

The report states that “the City will want be ready when OCM allows license applications.” While we hope that the OCM allows for municipal cannabis dispensaries to open, it is not a certainty.

It says that products will be available in April 2025.

OCM officials provided an report on the state’s implementation and legalization of cannabis in a webinar held late last month. They stressed that they are working to accelerate the transition to legal sale.

The state could begin licensing the legal marijuana industry in advance of schedule, “as early as this summer”, with a focus on social equity applicants.

Charlene Briner is the interim director of OCM. She said, “We would like to have a temporary license mechanism, especially for applicants who are seeking social equity.” “And by temporary licenses I mean early licensing–so this summer if the legislator decides to accept that.”

Briner stated that OCM wants to reduce equity ownership requirements for social equity applicants from 100% to 65%. Briner added, “This will increase the opportunities for social equity applicants actually to acquire capital and to secure funding.”

However, the agency did not discuss city-owned shops at the meeting.

Minnesota’s cannabis law has already allowed tribes within the state to open marijuana businesses before the state begins licensing traditional retailers, and some tribal governments–including the Red Lake Band of Chippewa Indians, the White Earth Nation and the Leech Lake Band of Ojibwe–have already entered the legal market.

After a recent controversy, in which a member of the Red Lake Nation Tribal Council was accused of stealing from NativeCare store, the tribal government has reportedly put a halt to cannabis operations.

Minnesota’s cannabis regulators recently launched their sixth public input survey which covers lab standards and edible products. OCM officials have said that they are happy to accept comments via email, even if the individual surveys have closed.

The OCM’s presentation comes after the agency recommended several changes to the state’s legalization laws to help consumers transition to a regulated market.

Marijuana Moment tracks more than 1,000 cannabis and psychedelics bills, as well as drug policy legislation in state legislatures. Patreon supporters who pledge at least $25/month gain access to our interactive charts, maps and hearing calendar.

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Minnesota adults 21 years and older can use, possess and cultivate marijuana for personal purposes. In August, Governor John Kasich clarified that homegrown marijuana cannot be sold for commercial purposes .

Some advocates believe that minor violations of home cultivation or possession limits could result in misdemeanor charges. should also include legal representation provided by the state.

Even before Gov. Tim Walz, a Democrat from Minnesota, signed the reform law. The state has launched a website to provide information on the new law. Officials are also soliciting vendors who can help create a licensing system.

Walz also has renewed his search to find a top marijuana regulatory for OCM. Erin DuPree resigned as the former head of the Office in September after just one day. This was following a Star Tribune article that claimed her hemp shop sold illegal products. According to reports, lab results showed high THC levels as well as the presence of banned artificial ingredients.

In September, the Minnesota Supreme Court also ruled that a marijuana odor alone does not constitute probable cause to allow police officers search a car.

The Cannabis Expungement Board is another entity created by Minnesota’s cannabis law, and will facilitate the sealing of records for those with marijuana convictions in their record. In August, the review process began for cases that were eligible. Officials recently added a notice to the cannabis criminal records. This is essentially informing reviewers that certain marijuana records appearing on record checks may be subject to expungement.


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The first time Marijuana Moment published the article Minnesota City Is Considering Opening The State’s First Government Run Marijuana Store.

Ben Adlin
Author: Ben Adlin

About Ben Adlin

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