Minnesota’s Cannabis Market Is Getting Started. Are You Ready.png

July 24-Aug 12:

License preapproval window

Applicants must meet OCM's minimum standards to qualify. Entities must be 65% or more owned by social equity applicants. Those primarily impacted by the War on Drugs and veterans will have the first opportunity to enter the industry. The final bill did not include women who own women-owned businesses as a category of social equity applicants.

People with marijuana-related convictions before May 1, 2023, are eligible. Convictions after this date disqualify the person. All military veterans now qualify. Those who have been a resident for the last five years of one or more subareas that experienced a disproportionately large amount of cannabis enforcement (but we don't have maps for this yet) or Those who have been a resident for the last five years were;

a. the poverty rate was more than 20%;

b. the median family income did not exceed 80% of the statewide or metropolitan area's median family income;

c. at least 20% of the households receive assistance through SNAP (Supplemental Nutritional Assistance Program) or

d. the population has a high level of vulnerability to toxic substances, as laid out by the CDC or

e. Those who have participated in the business operation of a farm for at least three years and currently provide the majority of the day-to-day physical labor and management of a farm that grossed between $5000 and $100,000 in the previous year.

OCM LICENSE RESOURSES

SOCIAL EQUITY VERIFICATION SITE

GENERAL LICENSING

MN CANNABIS GRANTS

HOSTING CANNABIS EVENTS

MN CAREGIVERS PROGRAM

CANNABIS PLANNING & ZONING for MINNESOTA COUNTIES

A Guide for Local Minnesota Governments on Adult-Use Cannabis

Early Cultivation:

For those who qualify for Social Equity, the current bill allows for Early Cultivation once they receive preapproval. They must provide documentation that they will comply with local zoning ordinances, state fire and building codes, and other applicable Minnesota rules. This presents a significant opportunity for the Minnesota Craft Cannabis community and for Social Equity applicants to be the first to market!

Application Caps:

The new bill also confirms that a maximum number of licenses will be granted within the social equity round and sets caps for each license type.

These numbers are as follows:

cannabis microbusiness licenses, 100;
cannabis mezzobusiness licenses, 25;
cannabis cultivator licenses, 13;
cannabis manufacturer licenses, 6;
cannabis retailer licenses, 38;
cannabis wholesaler licenses, 20;
cannabis transporter licenses, 20;
cannabis testing facility licenses, 50; and
cannabis delivery service licenses, 10

Code CARPFISH
for 20% Discounts

Code SEACARP
for 50% Lifetime Discount

Round 2 in 2025

In the second round (1Q2025) for regular applications, OCM said there would be no such cap on licenses for microbusinesses. Now that this legislative session is over and this has been confirmed, as the kids say, this is "No Cap." That means that as long as a micro license applicant meets OCM's qualifications to get into the lottery, they will be allowed to open a business. A bonus for the craft business market.

The licenses that will definitely have a cap in the whole round are:

cannabis cultivator licenses, 25;
cannabis manufacturer licenses, 12;
cannabis retailer licenses, 75; and
cannabis mezzobusiness licenses, 50.

Rounds 3 & 4 and so on in 2025

This is still up in the air; however, the thought is that these rounds will return to a standard metric-based scoring system.

First Draft of Proposed Cannabis Rules - July 31, 2024

Will I Qualify as a Social Equity Applicant?

The Minnesota Office of Cannabis Management (OCM) will start accepting Social Equity applications by July 24, 2024, and the application period will end on August 12, 2024.
Applicants must meet OCM's minimum standards to qualify. Entities must be 65% or more owned by social equity applicants. Those primarily impacted by the War on Drugs and veterans will have the first opportunity to enter the industry. The final bill did not include women who own women-owned businesses as a category of social equity applicants.
People with marijuana-related convictions before May 1, 2023, are eligible. Convictions after this date disqualify the person. All military veterans now qualify. Those who have been a resident for the last five years of one or more subareas that experienced a disproportionately large amount of cannabis enforcement (but we don't have maps for this yet) or Those who have been a resident for the last five years were;
- a. the poverty rate was more than 20%;
- b. the median family income did not exceed 80% of the statewide or metropolitan area's median family income;
- c. at least 20% of the households receive assistance through SNAP (Supplemental Nutritional Assistance Program) or
- d. the population has a high level of vulnerability to toxic substances, as laid out by the CDC or
- e. Those who have participated in the business operation of a farm for at least three years and currently provide the majority of the day-to-day physical labor and management of a farm that grossed between $5000 and $100,000 in the previous year.

How Applications are Typically Scored...

Status as a Social Applicant (Typically, a minimum of 20% of score). Impact of cannabis prohibition, such as arrest and/or imprisonment of the applicate or immediate family member, would grant social equity status.
Status as a Veteran or Retired National Guard
Security Plan
Record Keeping & Compliance Plan
Employee Training Plan
Business Plan & Financials
Labor & Employment Practices
Environmental Plan

What Should You Be Doing To Prepare?

Learn and stay updated on the current legislation and any ongoing changes.

This can be done through the state website, your cannabis consultant/advisor, or a lawyer. We do not recommend listening to your local city or council, as many haven't been informed of the appropriate rules.

Determine the type(s) of licenses you would like to apply for.

Decide the type of Cannabis and/or Hemp/CBD license(s) you want to apply for. Below is a full listing of options.

Start Learning the ins and outs of running a canna-business.

Obtain information on licensing, running, and operating a Cannabis business. We have several versions from our resource partners for you. It covers business, finance, security, compliance, creating local support, building your team, ongoing training, and social equity/grant programs.

ADVOCATE NOW!

Get your brand out there now. There are already lots of cannabis events popping up to get early exposure. Carpfish has teamed up with the leading social groups in MN to provide these types of events. Let us help guide you in this process while the Canna Advisors secure your license. It's going to get really busy real quick. Plus the events are pretty darn fun. We also will post links to some of the better Calendars covering the Minnesota and Midwest Markets to the right of this text.

Start Learning the ins and outs of running a cannabis business.

Obtain information on licensing, running, and operating a Cannabis business. Some of the things to start researching and putting together are business plans, finance, security, compliance, creating local support, building your team, ongoing training, and social equity/grant programs available, etc.

Start securing your financing now.

Cannabis is still a federally illegal product, meaning most big banks and investment firms still won't help cannabis business owners. However, don't let this deter you, as we can discuss many equity and non-equity options.

Research and create Your Brand Identity.

Start the process of creating your brand name, logo, and basic marketing info (website, flyer). File and create your business on both state and federal levels. What products are you going to offer? What type of customer experience do I want to offer? These are all areas we can help with.

Minnesota Current Business Licensing Structure

According to Chapter 342 of the Minnesota Statutes and adjustments from the legislature during the 2024 sessions, the OCM will establish these 13 cannabis business licenses:

Cannabis Retailer (aka Dispensary)

Application Fee: $2,500
Initial License Fee: $2,500
Renewal License Fee: $5,000

Cannabis retailers sell packaged cannabis products to the general public and medical patients. They can buy cannabis (including plants and seedlings) and lower-potency hemp products from other cannabis businesses and sell them to customers. This license type is available in limited quantities, and licensees will be selected through a vetted lottery. A cannabis retailer may operate up to five retail locations; however, no person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county.

Some main points:

In Minnesota, a licensed retailer can have up to five (5) locations.
Cities cannot deny retail licenses. The government has to offer one business license per city (every 12,500 residents) and can decide to offer more.
Dual License Availability? Yes. You can also hold delivery, medical retailer, or event license(s).

Cannabis Microbusiness

Application Fee: $500
Initial License Fee: $0
Renewal License Fee: $2,000

Cannabis microbusinesses can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. They can also have on-site lounges where customers can use cannabis. These businesses can grow up to 5,000 square feet of cannabis plants indoors and up to one-half acre outdoors. This license may hold a cannabis event organizer license.

Early cultivation opportunity: Social equity applicants with a preapproved cannabis microbusiness license and appropriate local approval may be allowed to grow cannabis plants under existing rules for medical cannabis cultivators and prior to the adoption of adult-use rules.

The licensee can also purchase and buy hemp and cannabis concentrates, as well as make synthetic cannabinoids and adult-use cannabis products. The license also allows the holder to buy, package, and sell adult-use cannabis flowers, lower-potency hemp edibles, and hemp-derived consumer products. Lastly, a cannabis microbusiness can establish a venue where edible cannabis products and lower-potency hemp edibles are consumed onsite. With the right endorsement, a licensed microbusiness can operate one retail location in Minnesota.

Some main points:

5,000 indoor cultivation area, 1/2 acre outdoor.
One retail location per license.
Dual License Availability? Yes. Micro businesses may get additional endorsements for retail, wholesale, cultivate, process/extract, and have onsite consumption.

Cannabis Mezzobusiness

Application Fee: $5,000
Initial License Fee: $5,000
Renewal License Fee: $10,000

This license authorizes the holder to conduct the same cannabis activities as a microbusiness but on a larger scale. Therefore, a mezzo business license holder can grow marijuana for adult-use cannabis products as well as buy hemp plant parts. Besides cultivation, the licensee can also buy, make, package, and sell hemp and cannabis concentrates, artificially derived cannabinoids, lower-potency hemp edibles, and edible cannabis products. Cannabis mezzobusinesses can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. Mezzobusinesses can grow up to 15,000 square feet of cannabis plants indoors and up to one acre outdoors. This license type is available in limited quantities, and licensees will be selected through a vetted lottery.

Early cultivation opportunity: Social equity applicants with a preapproved cannabis mezzobusiness license and appropriate local approval may be allowed to grow cannabis plants under existing rules for medical cannabis cultivators and prior to the adoption of adult-use rules.

Some main points:

15,000 indoor cultivation area, 1 acre outdoor.
Up to three (3) retail locations per license.
Dual License Availability? Yes. Can also hold an event and medical license. Mezzobusiness may get additional retail, wholesale, cultivation, and process/extraction endorsements.

Medical/Adult Combination Business

Application Fee: $10,000
Initial License Fee: $20,000
Renewal License Fee: $70,000

Medical cannabis combination businesses can grow, manufacture, package, label, and sell cannabis products (including cannabis plants and seedlings) to both medical patients and adult consumers. These businesses can package and sell medical cannabis products to other eligible cannabis businesses. They are allowed to cultivate up to 60,000 square feet of medical cannabis plant canopy for distribution into the medical market, and depending upon the total amount of medical sales the year prior, up to an additional 30,000 square feet of cannabis plant canopy for distribution into the adult-use market.

Can cultivate up to 60,000 sq ft (Medical), 30,000 sq ft (Adult-Use)
Can operate ONE (1) retail location per congressional district

Cannabis Cultivator

Application Fee: $10,000
Initial License Fee: $20,000
Renewal License Fee: $30,000

Cannabis cultivators can grow cannabis plants from seed to maturity. They can grow up to 30,000 square feet of cannabis plants indoors and two acres outdoors. Cultivators are allowed to harvest, package, label, and transport fully-grown cannabis plants to manufacturers. They can also package, label, and transport seedlings. This license type is available in limited quantities, and licensees will be selected through a vetted lottery.

Early cultivation opportunity: Social equity applicants with a preapproved cannabis cultivator license and appropriate local approval may be allowed to grow cannabis plants under existing rules for medical cannabis cultivators and prior to the adoption of adult-use rules.

Some main points:

30,000 indoor cultivation area, 2 acre outdoor.
Dual License Availability? Yes. It can also hold a manufacturing, medical, event, or hemp license.

Cannabis Manufacturer

Application Fee: $10,000
Initial License Fee: $10,000
Renewal License Fee: $20,000

This license entitles the holder to buy cannabis and hemp plant parts and concentrate, cannabis and hemp edibles, and artificially derived cannabinoids from licensed microbusinesses, mezzo businesses, cultivators, wholesales, and other manufacturers. The license also authorizes the holder to manufacture these cannabis and hemp products as well as package and sell them to other cannabis businesses.

Cannabis manufacturers process raw cannabis plants into various products, such as edibles, concentrates, wax, oils, and tinctures. Manufacturers can buy cannabis flowers, cannabis products, and lower-potency hemp products from other cannabis businesses. They turn these materials into cannabis products, then package and sell them to other cannabis businesses. This license type is available in limited quantities, and licensees will be selected through a vetted lottery.

Some main points:

Manufacturers may accept cannabis from unlicensed individuals of no more than two (2) ounces on a single occasion.
Dual License Availability? Yes. Manufacturers may also have a cultivator, medical, or event license.

Cannabis Wholesaler

Application Fee: $5,000
Initial License Fee: $5,000
Renewal License Fee: $10,000

This license entitles the holder to buy immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from and sell to licensed cannabis microbusinesses, cannabis mezzo businesses, cannabis cultivators, cannabis manufacturers, and cannabis microbusinesses. A cannabis wholesale license also allows the holder to buy hemp concentrate as well as hemp plant parts and propagules from industrial hemp growers and processes.

Some main points:

Wholesalers are not allowed to produce new products; they only buy and sell existing products.
Dual License Availability? Yes. Wholesalers can also hold a transporter, delivery, or event organizer license.

Cannabis Transporter

Application Fee: $250
Initial License Fee: $500
Renewal License Fee: $1,000

A cannabis transporter license is required to move cannabis and hemp plant parts as well as cannabis and hemp products between licensed marijuana businesses in Minnesota. This license authorizes the holder to transport both medical and adult-use cannabis products.

Some main points:

You cannot grow, produce, or sell, but can service the industry.
Dual License Availability? Yes. Transporter can also hold a wholesaler, delivery, or event organizer license.

Cannabis Testing Facility

Application Fee: $5,000
Initial License Fee: $5,000
Renewal License Fee: $10,000

A testing facility license is required for an independent third-party laboratory to obtain and test cannabis and hemp products grown or manufactured by licensed cannabis businesses in Minnesota.

Some main points:

Dual License Availability? No. Testing facilities may not hold any other cannabis or hemp licenses.

Cannabis Event Organizer

Application Fee: $750
Initial License Fee: $750
Renewal License Fee: $0 as of now

Cannabis event organizers plan and host events featuring cannabis and may allow for the sale of cannabis, cannabis products, and lower-potency hemp products to consumers at events like festivals (an event cannot last more than four (4) days). They can also provide spaces for consumers to use cannabis. An event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local government unit.

Some main points:

Cannabis must be transported by a licensed transporter.
You cannot allow sales by unlicensed cannabis providers.
Dual License Availability? Yes. Can hold any license except Testing Facility.

Cannabis Delivery Service

Application Fee: $750
Initial License Fee: $750
Renewal License Fee: $0 as of now

A cannabis delivery service license is required by any entity intending to deliver cannabis and hemp products sold by licensed retailers to consumers.

Some main points:

It must have a locked storage compartment. Limits per trip have not been set.
Dual License Availability? Yes. Can also hold a transporter, retail, wholesaler, or event organizer license.

Lower-Potency Hemp Edible Manufacturer

Application Fee: $250 (per location)
Initial License Fee: $1,000
Renewal License Fee: $1,000

This license allows the holder to purchase hemp plant and plant parts as well as hemp concentrate and artificially derived cannabinoids from licensed cannabis and hemp businesses. Licensees can also manufacture hemp concentrate, artificially derived cannabinoids, and lower-potency hemp edibles and sell these to hemp and cannabis businesses in the state.

Main points:

The Office of Cannabis Mgmt. must approve the chemicals used during the conversion process.
Multiple Licensee Options: You can also hold a hemp retail and cultivating license.

Lower-Potency Hemp Edible Retailer

Application Fee: $250 (per location)
Initial License Fee: $250 (per location)
Renewal License Fee: $250 (per location)

Retailers with this license can buy lower-potency hemp edibles obtained from licensed cannabis and hemp businesses allowed to manufacture them. Licensees can also sell lower-potency hemp edibles to adults aged 21 or older.

Some main points:

Hemp retailers can also sell products, including alcohol.
Onsite consumption is allowed if permitted within the space.
Multiple Licensee Options: You can also hold a hemp manufacturing and cultivating license.

MN Cannabis Licensing