State's cannabis office outlines budget needs, policy plans ahead of marketplace launch

The Office of Cannabis Management is focusing this session on its needs related to launching and regulating an expanding adult-use cannabis market in Minnesota.

Interim Director Eric Taubel laid out the budget recommendations for his office to the House Commerce Finance and Policy Committee Tuesday. No action was taken.

Additionally, Taubel said he expects to have policy proposals this session that would tighten up the state’s existing cannabis law.

“We’re on the precipice of the launch, and certainly we could tinker forever and sort of make those changes here and there. But the reality is that we need to launch the market. Once the market launches, we’ll continue to make changes and update and build the market that is fair for all Minnesotans,” Taubel said.

Cannabis license applications are scheduled to open Feb. 18. The office is also in the process of adopting rules to govern the cannabis marketplace in the state.

In his budget request, Gov. Tim Walz is proposing the office receive an additional $278,000 in fiscal year 2026 from the General Fund and an additional $564,000 each subsequent fiscal year to cover operating expenses as the cannabis industry grows. 

Eric Taubel, interim director of the Office of Cannabis Management, presents the office’s budget proposal to the House Commerce Finance and Policy Committee Feb. 11. (Photo by Andrew VonBank)

Every cannabis product has to be tested to ensure it’s safe, but there could be a backlog in product availability because of a lack of testing facility capacity, Taubel said. The testing lab certification process takes 18-24 months. A proposal to change the testing facility licensing process would allow the office to issue licenses to facilities that are in the certification process, which would increase testing capacity in the early days of the cannabis market. The office’s current budget can cover costs associated with that change, according to Taubel.

The recommendations also include clarifying that people who received stays of adjudication and adjudications of delinquency for cannabis crimes can be considered social equity applicants.  That change would be budget neutral.