Why it matters: Minnesota has become the 23rd state in the US to legalize recreational cannabis. The signing of the cannabis legalization bill by Governor Tim Walz has made it officially a legal substance for adults aged over 21 to use and regulate.
What they are saying: Governor Tim Walz has said that cannabis prohibition had not worked and that it was time to legalize adult-use cannabis to expand the state’s economy, create jobs, and regulate the industry to keep everyone safe. The legislation passed is designed with social equity in mind, with additional benefits for military veterans, farmers from underrepresented communities, residents from areas which have experienced significant cannabis enforcement, and the establishment of an Office of Cannabis Management to oversee the regulation and sale of cannabis products.
The big picture: Minnesota’s move towards legalization is a notable shift in the state’s attitude towards cannabis and puts the state in line with the public opinion of most Minnesotans. It also follows the legalization of recreational cannabis in New York last month, which followed New Jersey and Montana legalizing recreational cannabis on the ballot in November.
What to watch: Minnesota will provide a roadmap for other states that are looking to legalize recreational cannabis, especially as the state has included social equity features in its framework. As it takes 12 to 18 months for residents and visitors to purchase recreational cannabis products, it will be interesting to see how the state develops its regulatory framework and how it will manage the transition from an illicit market to a regulated market.
My take: Minnesota’s move towards legalization is a significant step for the state and the industry. It indicates a shift in attitudes towards cannabis and its benefits, and its inclusion of social equity features is a positive development for the industry. As more states legalize, cannabis is becoming more mainstream, but the transition from an illicit market to a regulated one remains a complication for governments.
