Minnesota’s cannabis regulatory agency announced Wednesday it will begin accepting business license applications on Feb. 18.
The Office of Cannabis Management will accept applications until March 14 for various license types including cultivators, manufacturers, retailers and testing facilities, according to the agency.
“Getting licenses out the door and into the hands of qualified applicants is our priority as we approach the launch of Minnesota’s adult-use cannabis industry,” OCM interim director Eric Taubel said in a statement.
The agency plans to hold two separate lottery rounds for four license categories that face statutory caps: cultivators, manufacturers, retailers and mezzobusinesses. Half of the available licenses in these categories are reserved for social equity applicants who were impacted by previous cannabis prohibition.
According to the OCM, the state will issue up to 75 retail licenses each for social equity applicants and general applicants. Other capped categories include 25 cultivation licenses per category and 12 manufacturing licenses per category.
Several other license types including microbusinesses, testing facilities and delivery services will face no caps and be reviewed on a rolling basis, the agency noted.
The licensing timeline is the latest development in Minnesota’s rocky rollout of legal cannabis sales. The process hit a snag in November when applicants sued the state after about two-thirds of social equity pre-approval applications were rejected, though regulators argued it was in response to predatory groups trying to “flood” the system using tactics seen from bad actors in other states.
The OCM said Wednesday that it will contact previously denied applicants to provide an opportunity to correct application errors. Qualified applicants could receive licenses as soon as spring following adoption of final rules expected in March.
The agency anticipates beginning license lotteries in May or June, though exact dates haven’t been set. Business owners selected through the lottery process could begin operations later in 2025, nearly two years after cannabis possession and use became legal in Minnesota.
Tribal nations may help meet initial market demand through existing cultivation facilities, according to MPR News. The White Earth Nation recently purchased a building in Moorhead for a dispensary, while the Mille Lacs Band of Ojibwe completed a 50,000-square-foot growing facility near Onamia last fall, state officials recently told the outlet.
Current license caps will remain in place through July 1, 2026, after which the agency will evaluate market conditions to determine if adjustments are needed.
The OCM said it will publish additional application guidance on its website beginning Feb. 14. State officials encouraged prospective applicants to review regulations and requirements before making business decisions.
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