Minnesota Governor, Tim Walz, told Minnesota Public Radio that he has informed state agencies to be ready for cannabis legalization as soon as 2020. “My agencies have been tasked to put all of the building blocks in place, from Revenue to the Department of Public Safety to the Department of Health,” he said. “We will have everything ready to go, and we will be able to implement it in Minnesota the minute the Legislature moves this.”

Walz’s legalization call sets up Minnesota statehouse clash over cannabis

As discussed this past winter, Minnesota has been weighing the benefits of legalization for a minute now. While the Republican-controlled senate put the kibosh on any legalization efforts in 2019 by blocking a proposed legalization study (to say nothing of a party-line vote that quashed a legalization measure in March), Walz’s statement to MPR makes clear that he is preparing the Gopher State for a strong push in 2020, setting up a potential head-to-head clash with the entrenched senate and its majority leader, Paul Gazelka (R).

While the debate over Gazelka and his compadres stance being “antiquated” or “backward thinking” and “not financially conducive” for the state of Minnesota can all be hashed out at a later date, the fact stands that they control the senate. Walz and his legislative allies will have to win over some Republican minds if this legalization effort is to go anywhere. No small feat in an election year.

Minnesota cannabis legalization would turn screws on Wisconsin

However, if Walz and his legislative allies convince some Republican senators to “pull a Boehner” and legalize cannabis in Minnesota, things will get very interesting for the state of Wisconsin. The Badger State, with Michigan and Illinois already legalizing adult-use cannabis, would face increasing pressure to legalize if Minnesota were to do so. We discussed the “sandwich effect” and what inaction on legalization would mean for Wisconsin back in February, but put briefly: Wisconsin risks losing out additional state revenue via taxes on cannabis sales and also puts an additional burden on policing along the borders with Illinois, Michigan and, potentially, Minnesota. Suddenly, with Illinois’ licensing application window opening in just about five weeks, and with Minnesota looking at legalization all over again, Tony Evers and the Wisconsin statehouse will have some decisions to make.

Midwest remains a hotspot for cannabis legalization and growth

We have maintained a bullish lean on the Midwest dating back to last year. Our predictions about Michigan, Missouri and particularly Illinois have all proven true. The Midwest stands as a massive opportunity for cannabis companies and that opportunity only stands to expand if Minnesota (and Wisconsin?) legalize within the next 12-18 months. While Minnesota in particular has some work to do to change some minds, continued legalization across the Midwestern states stands more as a “when” and not “if” proposition.