Rule-making can make or break a cannabis business, determining everything from production limits to testing requirements and market access.
Well-crafted rules create a fair, competitive industry that protects consumers while allowing small businesses to thrive. However, overly complex or poorly designed regulations can drive up costs, limit innovation and push smaller operators out of the market — ultimately benefiting large corporations and illicit sellers.
The state’s Office of Cannabis Management (OCM), led by interim Director Eric Taubel, is in the process of finalizing the rules that will govern the long-awaited launch of Minnesota’s retail cannabis flower market. Its proposed rules have generated fierce criticism from small businesses that say they favor big companies and will create unnecessary hurdles for them.
As a small-business owner and the founder of Doctor Dabs, a Burnsville-based cannabis company specializing in innovative edibles, I’ve seen firsthand how creativity and quality can set small businesses apart. But the state’s proposed regulations could make it nearly impossible for businesses like mine to compete. Strict production limits, burdensome compliance requirements and barriers to sourcing high-quality genetics will stifle innovation and favor large corporations with more resources.
The overly restrictive rules don’t just affect cultivators — they directly affect processors and edibles manufacturers, limiting the ability to create diverse, high-quality products that consumers demand. While many of these proposed rules seem written to the detriment of small businesses, the OCM could create other rules that, if crafted wisely, would help cannabis businesses compete and thrive.
One glaring issue is the lack of rules around moisture and water-activity standards in cannabis products. Without strict regulations, unscrupulous operators can manipulate moisture levels to artificially inflate THC potency in lab tests while selling heavier, water-laden flowers to consumers. This not only misleads buyers, but also increases the risk of mold and microbial contamination.