How Minnesota’s Cannabis Model May Benefit South Dakota & North Dakota

As Minnesota’s regulated adult-use cannabis program begins its rollout, the state’s holistic approach to managing both cannabis and hemp stands out as a potential blueprint for neighboring states like South Dakota and North Dakota. With medicinal cannabis programs already in place, these states could look to Minnesota’s integrated regulatory framework to guide potential future cannabis policy.

The Current Landscape in the Dakotas

In both North Dakota and South Dakota, cannabis is legal for medical use, but recreational use remains prohibited. While legalization efforts have faced challenges at the polls, these states have made more progress than Minnesota’s other border states, Iowa and Wisconsin. This momentum positions the Dakotas as strong candidates to consider Minnesota’s model for a more unified cannabis industry.

 

Minnesota’s Unified Cannabis Oversight

Minnesota’s approach is notable for its integration of cannabis and low-THC hemp products under the same regulatory umbrella. This cohesive framework is managed by the Office of Cannabis Management (OCM), which oversees all aspects of cannabis and hemp regulation. Unlike states where these industries operate separately, Minnesota’s centralized system hopes to provide consistent quality standards and eliminate confusion for businesses and consumers.

For South Dakota and North Dakota, adopting a similar framework could simplify the transition to a broader cannabis market and establish a clear pathway for businesses and consumers alike.

 

The Home of Low-Potency Hemp Beverages

Minnesota has become a hub for hemp-derived products, particularly low-potency hemp beverages. These beverages, legalized early in Minnesota, are now subject to rules that allow for expanded sales formats, including cases, kegs, and on-site mixing by trained servers. Additionally, the introduction of protocols for reusable packaging demonstrates a commitment to sustainability.

This innovative approach highlights Minnesota’s ability to adapt regulations to market needs while maintaining safety and quality standards. The Dakotas could benefit from incorporating similar provisions to spur local innovation and economic development.

 

Licensing and Business Opportunities

Minnesota’s licensing framework offers a range of opportunities for businesses, including the popular microbusiness and mezzobusiness licenses. These license types encourage vertical integration and allow businesses to operate across multiple segments of the supply chain (at a limited scale). By providing diverse licensing options, Minnesota hopes to foster a competitive and dynamic market. For North and South Dakota, adopting a similar approach could encourage entrepreneurship and support the growth of small and mid-sized businesses.

 

The Path Forward

Minnesota’s strategic integration of cannabis and hemp industries, coupled with its innovative regulatory measures, puts all eyes on the OCM, especially during the license application period from January 15^th to March 14^th and through finalization of the program rules over the next few months. For South Dakota and North Dakota, looking to Minnesota as a model, and learning from inevitable missteps, could simplify the path to legalization and promote economic growth and public safety.

As these states consider the future of their cannabis industries, adopting a unified regulatory framework like Minnesota’s could pave the way for a cohesive, innovative, and sustainable market. With the right policies in place, North and South Dakota have the opportunity to build a cannabis industry that benefits businesses, consumers, and communities alike.

For assistance preparing your business application for Minnesota’s current licensing round or more information on the Minnesota cannabis and hemp market, contact our team at Canna Advisors.