>> ERIC: THIS TUESDAY THE OFFICE OF CANNABIS MANAGEMENT OPENED UP BUSINESS APPLICATIONS.

THE MOVE FOLLOWS A TURBULENT LOTTERY ROUND FOR SOCIAL EQUITY APPLICANTS AND INTERIM DIRECTOR CHARLENE BRINER STEPPING DOWN LAST MONTH.

THE OFFICE'S GENERAL COUNSEL WAS TAPPED TO TAKE HER PLACE AS THE NEW INTERIM DIRECTOR AND ERIC TAUBEL JOINS US NOW.

WELCOME TO "ALMANAC."

YOU'RE STARTING FROM SCRATCH.

IS THAT ONE OF THE FACTORS THAT PEOPLE ARE SAYING, WHAT'S TAKING SO LONG?

>> YEAH.

OF I THINK SO.

I THINK THAT BUILDING SOMETHING THE GROUND UP TAKES A LONG TIME.

IT PROBABLY TAKES A LOT LESS TIME IF YOU BUILD SOMETHING THAT'S NOT SO GREAT.

AND, SO, WE'VE TAKEN THE APPROACH OF BUILDING A SOLID FOUNDATION THAT HAS A LOT OF STRUCTURAL INTEGRITY TO IT.

WE'VE BEEN TASKED WITH THE PROJECT OF LEARNING FROM OTHER STATES, AND PART OF THAT LEARNING PROCESS MEANS TALKING TO PEOPLE.

WE'VE BEEN TO THE NATIONAL CANNABIS REGULATORS ASSOCIATION CONFERENCE TWICE, AND HAD THE CHANCE TO TALK TO OTHER REGULATORS AND KIND OF GET A PERSPECTIVE ON WHAT WENT WRONG, WHAT WENT RIGHT, WHAT WOULD YOU DO DIFFERENTLY IF YOU COULD DO IT OVER AGAIN.

AND WE'VE TAKEN THOSE LESSONS BACK AND WE'VE INTERNALIZED THEM AND TRIED O REALLY WORK ON WHAT CAN WE DO, WHAT CAN WE DO TO MAKE THIS MARKET LOOK BETTER THAN OTHER MARKETS AND FLAWNCH A WAY THAT'S NOT JUST QUICK BUT SUSTAINABLE AND SUCCESSFUL.

>> Cathy: YOU DID AN AUDIT, 600,000 ELICIT PRODUCTS.

OF- THAT'S A FAIR AMOUNT, RIGHT.

BECAUSE THE RAMP-UP HAS BEEN PRETTY SLOW, I'M WONDERING, IS THERE A BLACK MARKET BEING CREATED IN THE MEANTIME AS YOU'RE RAMPING UP?

>> I DON'T WANT TO ALARM ANYONE, THERE IS A BLACK MARKET BUT IT HAS EXISTED FOR QUITE SOME TIME.

>> Cathy: SURE.

>> WE'RE COGNIZANT THAT THE CONGER IT TAKES TO GET A REGULATED MARKET LAUNCHED, THE HARDER THAT MARKET BECOMES.

BUT WE'VE ALSO, AT THE SAME TIME, WE'VE BEEN UILDING OUR CANNABIS MARKET AND GETTING THE LICENSING READY, WE'VE DEVELOPED A ENFORCEMENT TEAM THAT'S OUT IN THE FIELD GOING TO PLACES THAT SELL SOME OF THOSE ILLICIT PRODUCTS.

WE'RE EDUCATING PEOPLE ON WHAT'S ALLOWED, WHAT'S NOT ALLOWED, WHAT WILL BE ALLOWED IN THE FUTURE.

TAKING THE PRODUCTS THAT ARE DANGEROUS, ILLEGAL AND UNSAFE OFF THE SHELVES.

>> Eric: TRIKES GETTING A HEAD START?

>> THIS IS ONE OF THE THINGS I FIND THE GREATEST ABOUT THE LAW AS PASSED.

TRIBES.

THERE'S NO WINNER OR LOSER.

THIS MARKET WILL BE BIGGER THAN EVERYONE.

THERE WILL BE SPACE FOR THE MOM AND POP SHOPS THAT HAVE ONE STORE FRONT UP IN FERTILE.

THERE ARE GOING TO BE SPACE FOR LARGER OPERATORS THAT ARE GOING SUBSTANTIAL CANNABIS CANOPIES IN THE CITIES.

THERE'S ALSO GOING TO BE SPACE FOR OUR TRIBAL PARTNERS.

AND I REJECT THE PREMISE THAT ONLY ONE GROUP GETS TO WIN IN THIS SPACE.

THE REALITY IS THAT THERE'S A LOT OF SPACE FOR EVERYONE WHO WANTS TO BE A PART OF THIS MARKET TO GET IN, GET STARTED AND GET RUNNING.

IT'S ACTUALLY -- >> Cathy: YOU HAVE TRIBAL COMPACTS THAT YOU HAVE AGREED TO.

SO IT LOOKS LIKE TRIBAL ENTERPRISES ARE BEING ABLE TO RAMP UP, WHEREAS, STATE LICENSED APPLICANTS ARE KIND OF STILL STUCK WAITING.

>> SO WE'RE STILL IN THE PROCESS OF NEGOTIATING THOSE COMPACTS.

WHEN THOSE COMPACTS GET SIGNED AND EXECUTED BY THE LEADERS OF THE TRIBAL NATIONS AND THE GOVERNOR, WE'LL HAVE THOSE POSTED PUBLICLY FOR EVERYONE TO SHARE.

AT THE SAME TIME, AS ERIC NOTED, ON TUESDAY, WE OPENED FOR STATE LICENSES.

SO WE'RE GOT PEOPLE GETTING READY TO GO.

ALSO WE HAVE THE LICENSE PREAPPROVAL PROCESS THAT GOT STYMIED BY LITIGATION, BUT AS PART OF THAT PROCESS, THE OFFICE WENT THROUGH 1,800 APPLICATIONS AND IDENTIFIED OVER, I THINK, 600 APPLICANTS WHO MET THE CONDITIONS OF THE APPLICATION.

THEY'RE NOW IN WHAT WE'RE CALLING LIKE A QUALIFIED APPLICANT STATUS WHERE THEY'RE READY TO GO ONCE WE GET OUR RULES IN PLACE AND THEY GET THEIR LOCAL GOVERNMENT APPROVALS, THEY GET THEIR LABOR PEACE AGREEMENTS AND CRIMINAL BACKGROUND CHECKS DONE, THEY'LL BE READY TO LAUNCH THE MARKET.

THERE WILL BE A REALLY GREAT OPPORTUNITY FOR THE EARLY MOVERS, EARLY ENTRANTS INTO THE MARKET TO PARTNER WITH TRIBAL NATIONS AND TRIBAL ENTERPRISES.

>> Cathy: THEY'LL BE ABLE TO DO THAT?

>> ONCE WE GET RULES IN PLACE, ONCE WE GET THE FINAL INSPECTIONS DONE, THE LICENSES ARE ISSUED, WE'LL BE ABLE TO SEE PARTNERSHIPS FORM, NOT JUST BETWEEN STATE BUSINESSES BUT BECAUSE THE TRIBAL LANDS AS WELL.

>> Eric: I HOPE YOU'LL COME BACK, GIVE US CONTINUED UPDATES.

>> YEAH, I'D BE HAPPY TO.

>> Eric: IT'S A BIG JOB.

>> Cathy: AT THE END OF THIS APPLICATION PROCESS, HOW MANY DO YOU THINK YOU MIGHT HAVE APPROVED?

>> SO WE HAVE ON, YOU KNOW, OUR INTERNAL WHITEBOARD, A LOT OF GUESSES, ABOUT HOW MANY WE MIGHT GET.

THE GUESSES RANGE FROM ON THE LOW SIDE, 2,000 OR SO UP TO 5,000.

>> Eric: WOW.

>> I ASKED THE TEAM WHERE WE WERE AT TODAY AT NOON, YOU KNOW, THREE DAYS IN, WE ONLY HAD 52 APPLICANTS SUBMITTED.

BUT AS ALWAYS, WE EXPECT A BIG WAVE IN THE LAST COUPLE OF HOURS.

AND THOSE EARLY APPLICANTS SO FAR HAVE COME IN OUR SMALLEST BUSINESS CATEGORY, THE MICROBUSINESS.

WHICH WE THINK WILL REALLY BE THE KIND OF FLAVOR OF MINNESOTA'S CANNABIS MARKET, A SORT OF CRAFT MARKET WITH SMALL PRODUCERS, SPREAD THROUGHOUT THE STATE.