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13 Minnesota Cities Are Looking To Launch Government-Owned Marijuana Stores

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1 week agoon

“Our liquor stores never fail compliance tests, whether for tobacco or liquor. We feel we can do the same thing within the cannabis industry.”
By Brian Arola, MinnPost
As some Minnesota cities fret over regulating newly legalized and normalized marijuana sales, others see an opportunity.
Elk River is among 13 Minnesota cities considering opening municipally owned cannabis stores. They would be blazing new trails in this regard, as government-run pot shops aren’t currently in use anywhere else in the country. City Administrator Cal Portner talks about Elk River’s approach as making the most of a situation.
“I don’t sense that our council is enthusiastic about the law to legalize, but they’re accepting of reality,” he said.
Revenue potential from cannabis sales, and how it can be put to use in the community, is part of the appeal. Assuring compliance is also part of it.
“Our liquor stores never fail compliance tests, whether for tobacco or liquor,” Portner said. “We feel we can do the same thing within the cannabis industry.”
The full list of cities applying to run municipal cannabis stores, according to the state’s Office of Cannabis Management (OCM), includes:
- Anoka
- Blaine
- Buffalo
- Byron
- Elk River
- Grand Rapids
- Lauderdale
- Mounds View
- St. Anthony Village
- St. Joseph
- Osseo
- Owatonna
- Wyoming
Liquor munis as a model
The only state with any track record of a government-run cannabis shop is Washington, where a store in North Bonneville opened in 2015 and operated until 2021. Where Minnesota differed from Washington and other legalized-cannabis states was in the defined path it created for cities to pursue cannabis munis.
Despite being a new concept, Minnesota’s established muni model for liquor, also novel nationally, gives Portner confidence in the feasibility. Cities have entrepreneurial experience on their sides, he said, including already selling hemp-based THC products in liquor stores.
“We’ve had practice time basically to understand the products and understand the customer service side of it,” Portner said.
Municipal liquor sales add nearly $1 million to Elk River’s annual budget.
The city’s two liquor munis keep profits home, Portner said, rather than going to corporations based out of town or state.
“We’re among the top Minnesota liquor store operations within the state and are proud of that,” he said. “It puts a lot of money back in our community.”
Minnesota had 176 cities running liquor munis as of 2023, according to the latest annual report on them by the Office of the State Auditor. Most munis come out ahead, combining for $31.6 million in net profits in 2023. Elk River generated $962,190 of it. Buffalo brought in $710,505. St. Anthony Village was $426,385 in the positive.
Even modest net profits, say $10,000 per year, are good deals for small towns, said Paul Kaspszak, executive director of the Minnesota Municipal Beverage Association.
“You could say it’s not very much money, but there’s nothing else happening in that community that will generate that $10,000,” he said.
In his hypothetical, 100 homeowners in the community could be looking at $100 in savings on their property taxes. In Elk River, Portner said it might take an additional 45 businesses in town to generate enough property taxes to equal net profits from city liquor sales.
Cannabis sales projections are highly speculative, but Portner said it’ll likely take a couple years to turn profits. Between investments in capital, inventory, marketing and education, an estimate prepared for the city in January put first-year losses at $184,698.
All but 18 of the state’s liquor munis are in Greater Minnesota. For cannabis muni applicants, seven of the 13 are in the seven-county Twin Cities metro area.
St. Joseph’s mayor, Adam Scepaniak, and other officials from cities on the list confirmed they were still waiting on OCM approval to get their cannabis licenses as of last week. Plans are taking shape in the interim, with St. Joseph, Elk River and others looking into possible locations for cannabis retail.
Elk River is considering a building to house both cannabis sales and one of its two municipal liquor stores. Northbound would remain the name of the liquor muni, while the cannabis side would assume the name Cannabound.
Owatonna applied for a muni cannabis permit on March 13, said Deanna Sheely, the city’s communications manager, in an email. No decisions will be made on it until the license process is completed.
When Byron moved forward with an application in February, City Administrator Al Roder noted it didn’t bind the city to the idea.
“Applying for the license and even receiving one, doesn’t lock us into going ahead with a dispensary,” he stated on the city’s Facebook post. “But the window to apply for a license is very small.”
Wide spectrum of attitudes toward cannabis industry
As opposed to the 13 cities exploring cannabis munis, Albert Lea sits on the opposite end of the spectrum. A City Council vote last week stopped a privately run cannabis store from opening—an apparent violation of state statute. An update by the city posted on Facebook afterward described the vote being based on “questions of enforcement, liability and responsibility” necessitating further review.
Adopting zoning restrictions on where cannabis businesses are allowed, a lever given to cities in state law, is more of a middle-ground strategy. Combined with caps on the maximum number of businesses allowed to operate, almost all cities implemented some form of this approach or another.
The cap is an area of contrast between the state’s cannabis and liquor muni regulations. A city with muni liquor doesn’t need to allow private liquor stores within its limits, but it can’t monopolize cannabis in the same way. Muni cannabis stores don’t count toward the cap.
This article first appeared on MinnPost and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Photo by davide ragusa on Unsplash.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Massachusetts Auditor Notes ‘Violations’ and ‘Mismanagement’ At Cannabis Control Commission

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August 18, 2025
Massachusetts Auditor Diana DiZoglio last week released an audit of the state’s Cannabis Control Commission (CCC), claiming to have uncovered violations and mismanagement issues at the commission, NBC Boston reports.
The audit found that officials “failed to take appropriate steps and institute procedures” to guarantee the administering of cannabis industry license extensions, and that a “lack of supervision and minimal accountability over licensing staff members” helped contribute to the breakdown.
“CCC’s mismanagement of prorated fees for license extensions resulted in procedural inequity, revenue loss, and noncompliance with state regulations.” — Excerpt from the audit summary
The commission said it has “been working closely with the State Auditor’s Office for almost a year and will review the report released today in furtherance of our shared commitment to government improvement. Over the course of the audit period and since, the Commission has hired key leaders, made progress to address many of the issues referenced, and begun to move forward in a constructive way.”
The report was released hours after the commission voted unanimously to reinstate the license of Assured Testing, a testing lab accused of failing to report thousands of contaminated cannabis samples, the report said. The commission issued penalties against the lab, including a $300,000 fine and two years of probation. Additionally, the lab — which has publicly disagreed with the findings but says it will honor the commission’s terms for reinstatement — will have to hire an independent auditor, an internal control manager, and a new interim CEO.
“We are eager to return to what we do best: delivering scientific, evidence-backed testing with industry-leading cannabis expertise,” Assured Testing said in a statement.

Author: mscannabiz.com
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Supreme Court Gives Marijuana Companies More Time To File Petition In Case Challenging Federal Prohibition

Published
1 hour agoon
August 18, 2025
The U.S. Supreme Court has granted a request to give marijuana companies suing the Justice Department in an effort to overturn federal prohibition two more months to file their petition with the justices.
Lawyers for the cannabis firms said the extension was needed due to the “significant and complex constitutional issues” that are being raised in the case, as well as the fact that state governments and other experts who plan to file support briefs need more time to “carefully craft their arguments.”
The prominent litigation firm Boies Schiller Flexner LLP that’s representing the companies—Canna Provisions, Gyasi Sellers, Wiseacre Farm and Verano Holdings—entered a request for a 60-day extension to submit its writ of certiorari last week. Justice Ketanji Brown Jackson approved the proposal on Friday, pushing back the current deadline of August 25 to October 24.
The companies’ request noted that counsel for the Office of the Solicitor General don’t oppose the extension.
The brief gave three reasons for the request: 1) the lead attorney on the case, David Boies, is “heavily engaged in previously scheduled matters” before other federal courts, 2) several experts who expressed interest in supporting their lawsuit with amicus briefs have said they need more time and 3) the case involves complex legal issues that require more in-depth consideration.
“This case presents significant and complex constitutional issues concerning both state-regulated marijuana specifically and the authority of Congress to regulate purely intrastate commerce generally,” the filing says. “The additional time will permit counsel to prepare a petition that appropriately addresses the questions of nationwide importance raised by this case.”
That includes “the question of whether [Gonzales v. Raich] was correctly decided,” it says, referencing a landmark 2005 Supreme Court ruling, wherein justices narrowly determined that the federal government could enforce prohibition against cannabis cultivation that took place wholly within California based on Congress’s authority to regulate interstate commerce.
With respect to future amicus briefs the applicants are expecting, they said “counsel have heard from law professors, non-profits, state governments, and others interested in submitting amicus briefs in these proceedings, and several of these potential amici have expressed concern about having sufficient time to prepare over the summer.”
“An extension will provide potential amici adequate time to consider the case and carefully craft their arguments,” the filing says.
This comes about three months after a U.S. appeals court rejected the arguments of the state-legal cannabis companies, one the latest blow to the high-profile lawsuit following a lower court’s dismissal of the claims. But it’s widely understood that the plaintiffs’ legal team has long intended the matter to end up before the nine justices.
“It’s fair to assume that we shall seek Supreme Court review,” attorney Jonathan Schiller told Marijuana Moment in June.
The latest filing concludes by saying respondents “will not suffer any prejudice from the requested extension,” and because “the First Circuit affirmed the dismissal of Applicants’ claims, a brief extension will not in any way alter the status quo of this case.”
While it remains to be seen whether the high court will ultimately take the case, one sign that at least some on court might be interested in the appeal is a 2021 statement from Justice Clarence Thomas, issued as the court denied review of a separate dispute involving a Colorado medical marijuana dispensary.
Thomas’s comments seemed to suggest that it’d be appropriate revisit Raich—a move that could largely upend federal prohibition.
The statement pointed to policy developments since the earlier case was decided, such as the hands-off enforcement approach taken by the Department of Justice as more states legalized cannabis and a congressional budget rider protecting state-legal medical marijuana programs.
“Whatever the merits of Raich when it was decided, federal policies of the past 16 years have greatly undermined its reasoning,” Thomas wrote, describing the government’s approach to cannabis enforcement as “a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana.”
“Though federal law still flatly forbids the intrastate possession, cultivation, or distribution of marijuana…the Government, post-Raich, has sent mixed signals on its views,” the justice continued, saying the situation “strains basic principles of federalism and conceals traps for the unwary.”
Once plaintiffs in the case at hand file their forthcoming petition for a writ of certiorari, it would need needs the votes of four justices to put the case before the Supreme Court.
The initial complaint, filed in U.S. District Court for the District of Massachusetts, argued that government’s ongoing prohibition on marijuana under the Controlled Substances Act (CSA) was unconstitutional because Congress in recent decades had “dropped any assumption that federal control of state-regulated marijuana is necessary.”
At oral argument on appeal late last year, Boies told judges that under the Constitution, Congress can only regulate commercial activity within a state—in this case, around marijuana—if the failure to regulate that in-state activity “would substantially interfere [with] or undermine legitimate congressional regulation of interstate commerce.”
Judges, however, said they were “unpersuaded,” ruling in last month’s opinion that “the CSA remains fully intact as to the regulation of the commercial activity involving marijuana for non-medical purposes, which is the activity in which the appellants, by their own account, are engaged.”
The district court, meanwhile, said in the case that while the there are “persuasive reasons for a reexamination” of the current scheduling of cannabis, its hands were effectively tied by past U.S. Supreme Court precedent in Raich.
Meanwhile, amid a series of legal challenges, the Trump administration recently asked the Supreme Court to take up a case on the federal government’s ban on users of marijuana and other illegal drugs from owning firearms and uphold the prohibition, saying it is consistent with the Second Amendment.
Separately at the federal level, a pending Biden-era recommendation to reschedule marijuana to the less restrictive Schedule III of the CSA is remains stalled.
The MAGA world is divided on how it wants President Donald Trump to come down on that proposal, with key right-wing influencers voicing conflicting positions on the issue after the president announced an imminent decision last week.
While Trump endorsed moving marijuana to Schedule III during last year’s presidential campaign—along with cannabis industry banking access and a Florida legalization ballot initiative that ultimately fell short—last week he merely said he is considering the issue, with a decision expected within weeks.
The overall bipartisanship of the issue, however, was also reflected in recent comments from one Democratic and one Republican member of Congress, who urged Trump to federally reschedule marijuana.
A new political committee that shares the same treasurer as Trump’s own super PAC is also pushing the president to follow through on rescheduling marijuana, releasing an ad that highlights his previous endorsement of the reform on the campaign trail.
Photo elements courtesy of rawpixel and Philip Steffan.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Canopy USA Appoints New Executive Team to Accelerate Growth

Published
2 hours agoon
August 18, 2025
[PRESS RELEASE] – BOULDER, Colo., Aug. 18, 2025 – Canopy USA LLC, a brand-driven organization strategically positioned across the fastest-growing states and highest potential segments of the U.S. cannabis market, announced the appointment of a new executive team responsible for driving the company’s next phase of expansion.
Drawing on extensive industry experience, these leaders will steer Canopy USA forward through a shared vision to elevate the company’s brand portfolio, enhance day-to-day operations and execution, and advance growth initiatives across multiple state markets.
- Casey Rash, chief financial officer, will oversee centralized functions including finance, human resources and IT. Rash brings deep expertise in regulated industries and a strategic approach to driving organizational scale and efficiency.
- Rebecca Kirk, chief operating officer, will lead the company’s operations, innovation and legal teams. Known for building scalable systems and launching category-leading products, Kirk will play a critical role in driving Canopy USA’s performance across its value chain.
- Kelly Flores, chief business development officer, will be responsible for marketing, market expansion and product strategy. With a proven track record in cannabis commercialization, Flores will guide brand development and strategic growth initiatives in both existing and emerging state markets.
“These leadership appointments mark the start of a plan to capture growth in the U.S. cannabis market,” Canopy USA President Brooks Jorgensen said. “Within the best of each Acreage, Jetty and Wana, we’ve been aligning systems, teams and processes across markets to create a scalable, efficient organization. With our leadership team now in place, we’re moving forward with purpose.”
Canopy USA’s platform is built to deliver consistent quality, innovative products and trusted brands to consumers and retail partners nationwide. By combining deep market expertise with a focus on execution, the company aims to set the standard for growth and leadership in the evolving U.S. cannabis industry.

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