The Minnesota cannabis industry is governed by extremely strict rules and regulations. Medical cannabis legislation was signed into law on May 29, 2014, but progress has been slow in the state. While there are few dispensaries, the state has made a concerted effort to boost patient enrollment, add qualifying medical conditions, and increase the offered delivery methods.

On August 1, 2023, however, Minnesota became the 23rd state in the U.S. to legalize adult-use cannabis. Though program rules and regulations have yet to be finalized, the state hopes to launch adult-use sales in early 2025.  And the State is hopeful to have a draft of the program’s regulations completed in late 2024.

The Office of Cannabis Management will release applications and issue licenses, and you can find out more about the types of available licenses here. 

Key Dates and Timeline

The timeline for the Social Equity Adult-Use Cannabis Business Licensing Program is crucial for prospective applicants. Here are the critical dates:

• June 24, 2024: Social Equity Applicant Verification opened (for those seeking to qualify for the State’s Social Equity Program).
• July 10, 2024, 11:59 PM: Social Equity Applicant Verification closed.
• July 24, 2024: Social Equity Pre-Approval application round (for lottery) opened for those who qualified for the State’s Social Equity Program.
• August 12, 2024, 11:59 PM: Social Equity Pre-Approval application round (for lottery) closes.

Application Process and Requirements

Applications will be evaluated based on several criteria, including security, employee training, business plan, financial situation, labor practices, and environmental plans. Essential documents include ownership profiles, capitalization tables, security plans, business plans, and proof of social equity status.

ALL License Types

• Cannabis microbusiness
• Cannabis mezzobusiness
• Cannabis cultivator
• Cannabis manufacturer
• Cannabis retailer
• Cannabis wholesaler
• Cannabis transporter
• Cannabis testing facility
• Cannabis event organizer
• Cannabis delivery service
• Lower-potency hemp edible manufacturer
• Lower-potency hemp edible retailer
• Medical cannabis cultivator
• Medical cannabis processor
• Medical cannabis retailer
• Medical cannabis combination business

License Types AVAILABLE DURING THE SOCIAL EQUITY CANNABIS LICENSING ROUND

• Microbusiness:

  • Limit: 100 licenses
  • Microbusiness Application Fee: $500
  • Microbusiness License Fee: $0

• Mezzobusiness:

  • Limit: 25 licenses
  • Mezzobusiness Application Fee: $5,000
  • Mezzobusiness License Fee: $5,000

• Cultivator:

  • Limit: 13 licenses
  • Cultivation Application Fee: $10,000
  • Cultivation License Fee: $20,000

• Manufacturer:

  • Limit: 6 licenses
  • Manufacturing Application Fee: $10,000
  • Manufacturing License Fee: $10,000

• Retailer:

  • Limit: 38 licenses
  • Retailer Application Fee: $2,500
  • Retailer License Fee: $2,500

• Wholesaler:

  • Limit: 20 licenses
  • Wholesaler Application Fee: $5,000
  • Wholesaler License Fee: $5,000

• Transporter:

  • Limit: 20 licenses
  • Transporter Application Fee: $250
  • Transporter License Fee: $500

• Testing Facility:

  • Limit: 50 licenses
  • Testing Facility Application Fee: $5,000
  • Testing Facility License Fee: $5,000

• Delivery Service:

  • Limit: 10 licenses
  • Delivery Service Application Fee: $250
  • Delivery Service License Fee: $500

Social Equity and Ownership Requirements

To qualify for a social equity license, the applicant must own at least 65% of the business. The OCM has set strict guidelines to ensure fair participation and prevent monopolies. A True Party of Interest (TPI) cannot be affiliated with more than one application per license type, with specific exceptions.

Opening a Cannabis Business in Minnesota

At Canna Business Services, we’ve seen that the application is just the beginning. To build a viable business, you’ll need to secure real estate, follow safety and security measures, build a customer base, all while adhering to strenuous and ever-changing regulations. Our team brings together a wealth of background to firmly support your goals at each stage of the application process, commercialization and compliance, marketing, label and packaging review, branding and more.

Book an appointment with Canna Business Services to achieve forward momentum. Our experience, expertise and foresight create solid ground in an unsettled market. We are a cannabis consulting company and look forward to working as your guides, opening up networks of connections and providing tried and tested solutions. While the competition you’re certain to face when applications open up for medical licenses and potentially recreational as well, will make it more difficult to be visible, Canna Business Services positions you firmly at the forefront of the industry.