Minnesota Cannabis Legislation
Minnesota Cannabis Legislation
Proposed Adult-Use Minnesota Cannabis Program Overview
The Governor of Minnesota signed twin bills, H.F. 100 and S.F 73, into law in May 2023. The bills will legalize and regulate the adult-use marijuana market. A newly formed Office of Cannabis Management will regulate and license cannabis businesses. There is a proposed bill, SF4782, that would make changes to the cannabis legalization bill that passed last spring; the bill is awaiting the Governor’s signature. These changes include a reworking of the current law’s social equity provisions, allowing the state to issue a limited number of preapproval licenses, among other changes.
Adult-Use Minnesota Cannabis License Information
Marijuana Business Types
If the number of qualified applicants seeking a type of license exceeds the number of licenses of that type that are made available, the office must conduct a lottery to select applicants for preliminary approval.
The office may issue as many licenses as it deems necessary for a license type not listed in Subdivision 4. The office is not required to issue a license for a license type not listed in Subdivision 4.
- Cannabis Microbusiness – entitles the license holder to grow, manufacture, and sell cannabis to customers. A cannabis microbusiness that cultivates cannabis at an indoor facility may cultivate up to 5,000 square feet of plant canopy or at an outdoor location of up to one-half acre of mature, flowering plants. A cannabis microbusiness with the appropriate endorsement may operate one retail location.
- A person, cooperative, or business holding a cannabis microbusiness license may also hold a cannabis event organizer license. No person, cooperative, or business holding a cannabis microbusiness license may own or operate any other cannabis business or hemp business or hold more than one cannabis microbusiness license.
- Number of Licenses Available:
- 100 license preapprovals
- Cannabis Mezzobusiness – entitles the license holder to grow cannabis plants for use as adult-use AND medical cannabis flower or manufacture for use in adult-use AND medical cannabis products, as well as sell directly to adult-use consumers. A cannabis mezzobusiness that cultivates cannabis at an indoor facility may cultivate up to 15,000 square feet of plant canopy or at an outdoor location of up to one acre of mature, flowering plants. A cannabis mezzobusiness with the appropriate endorsement may operate up to three retail locations.
- A person, cooperative, or business holding a cannabis mezzobusiness license may also hold a cannabis event organizer license and a medical cannabis retailer license. No person, cooperative, or business holding a cannabis mezzobusiness license may own or operate any other cannabis business or hemp business or hold more than one cannabis mezzobusiness license.
- Number of Licenses Available:
- 25 license preapprovals
- 50 social equity licenses
- 50 standard licenses
- Cannabis Cultivator – entitles the license holder to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant, harvest cannabis flower from a mature plant, package and label cannabis flower for sale to other cannabis businesses. No more than 30,000 feet of indoor plant canopy or outdoor location may cultivate up to two acres of mature, flowering plants.
- A person, cooperative, or business holding a cannabis cultivator license may also hold a cannabis manufacturing license, medical cannabis cultivator license, medical cannabis producer license, license to grow industrial hemp, and cannabis event organizer license.
- No person, cooperative, or business holding a cannabis cultivator license may own or operate any other cannabis business or hemp business.
- Number of licenses Available:
- 13 license preapprovals
- 25 social equity licenses
- 25 standard licenses
- Cannabis Manufacturer – entitles the license holder to purchase cannabis flower, cannabinoid products, hemp plant parts, hemp concentrate, and artificially derived cannabinoids from cannabis cultivators, other cannabis manufacturers, cannabis microbusinesses, and industrial hemp growers, to manufacture cannabis infused products.
- A person, cooperative, or business holding a cannabis manufacturer license may also hold a cannabis cultivator license, a medical cannabis cultivator license, a medical cannabis processor license, and a cannabis event organizer license.
- No person, cooperative, or business holding a cannabis manufacturer license may own or operate any other cannabis business or hemp business.
- Number of Licenses Available:
- 6 license preapprovals
- 12 social equity licenses
- 12 standard licenses
- Cannabis Retailer – entitles the license holder to purchase immature cannabis plants and seedlings, cannabis flower, cannabinoid products, and hemp-derived consumer products from other cannabis businesses and sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabinoid products, hemp-derived consumer products, and other products authorized by law to customers. A cannabis retailer may operate up to 5 retail locations.
- A person, cooperative, or business holding a cannabis retailer license may also hold a cannabis delivery service license, a medical cannabis retailer license, and a cannabis event organizer license.
- No person, cooperative, or business holding a cannabis retailer license may own or operate any other cannabis business or hemp business.
- 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.
- Number of Licenses Available:
- 38 license preapprovals
- 75 social equity licenses
- 75 standard licenses
- Cannabis Wholesaler – entitles the license holder to (1) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers; (2) purchase hemp plant parts and propagules from industrial hemp growers and processors; (3) sell immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to cannabis microbusinesses, cannabis mezzobusinesses, cannabis manufacturers, and cannabis retailers; (4) sell lower-potency hemp edibles to lower-potency hemp edible retailers; (5) import hemp-derived consumer products and lower-potency hemp edibles that contain hemp concentrate or artificially derived cannabinoids that are derived from hemp plants or hemp plant parts.
- A person, cooperative, or business holding a cannabis wholesaler license may also hold a cannabis transporter license, a cannabis delivery service license, and a cannabis event organizer license.
- No person, cooperative, or business holding a cannabis wholesaler license may own or operate any other cannabis business or hemp business.
- Number of Licenses Available:
- 20 license preapprovals
- Cannabis Transporter – entitles the license holder to transport immature cannabis plants and seedlings, cannabis flower, cannabinoid products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, and hemp-derived consumer products from cannabis cultivators, cannabis manufacturers, cannabis wholesalers, cannabis microbusinesses, medical cannabis retailers, medical cannabis processors, and industrial hemp growers to cannabis manufacturers, cannabis testing facilities, cannabis wholesalers, cannabis retailers, lower potency edible product retailers, medical cannabis processors, and medical cannabis retailers.
- A person, cooperative, or business holding a cannabis transporter license may also hold a cannabis wholesaler license, a cannabis delivery service license, and a cannabis event organizer license.
- No person, cooperative, or business holding a cannabis transporter license may own or operate any other cannabis business.
- Number of Licenses Available:
- 20 license preapprovals
- Cannabis Testing Facility – entitles the license holder to obtain and test immature cannabis plants and seedlings, cannabis flower, cannabinoid products, hemp plant parts, hemp concentrate, artificially derived cannabinoids, and hemp-derived consumer products from cannabis cultivators, cannabis manufacturers, cannabis wholesalers, cannabis microbusinesses, medical cannabis cultivators, medical cannabis processors, and industrial hemp growers.
- Number of Licenses Available:
- 50 license preapprovals
- Number of Licenses Available:
- Cannabis Event Organizer – entitles the license holder to organize a temporary cannabis event lasting no more than four days.
- A person, cooperative, or business holding a cannabis event organizer license may not hold a cannabis testing facility license, a lower-potency hemp edible manufacturer license, or a lower-potency hemp edible retailer license.
- Cannabis Delivery Service – entitles the license holder to purchase cannabis flower, cannabinoid products, and hemp-derived consumer products from licensed cannabis retailers, licensed cannabis microbusinesses with an endorsement to sell adult-use cannabis flower and adult-use cannabinoid products to customers, and medical cannabis retailers; transport and deliver cannabis flower, cannabinoid products, and hemp-derived consumable products to customers.
- A person, cooperative, or business holding a cannabis delivery service license may also hold a cannabis retailer license, a cannabis wholesaler license, a cannabis transporter license, a cannabis event organizer license, and a medical cannabis retailer license subject to the ownership limitations that apply to those licenses.
- No person, cooperative, or business holding a cannabis delivery service license may own or operate any other cannabis business or hemp business.
- Number of Licenses Available:
- 10 license preapprovals
The number of licenses for each category will be determined by the Office of Cannabis Management (“Office”). The number of social equity licenses available must be equal to or greater than the number of licenses available to all applicants. The office may issue as many licenses as the office deems necessary of a license type that does not have a specified maximum number available.
APPLICATION & LICENSING FEES
*Annual renewal
| Business Type | App Fee | Initial Licensing Fee | *Renewal Fee |
| Microbusiness | $500 | $0 | $2,000 |
| Mezzobusiness | $5,000 | $5,000 | $10,000 |
| Cultivator | $10,000 | $20,000 | $30,000 |
| Manufacturer | $10,000 | $10,000 | $20,000 |
| Retailer | $2,500 | $2,500 | $5,000 |
| Wholesaler | $5,000 | $5,000 | $10,000 |
| Transporter | $250 | $500 | $1,000 |
| Testing Facility | $5,000 | $5,000 | $10,000 |
| Delivery Service | $250 | $500 | $1,000 |
| Event Organizer | $750 | $750 | N/A |
| Lower-Potency Hemp Edible Manufacturer | $250 | $1,000 | $1,000 |
| Lower-Potency Hemp Edible Retailer | $250 | $250 | $250 |
| Medical Combination Business | $10,000 | $20,000 | $70,000 |
MINNESOTA CANNABIS BUSINESS LICENSE APPLICATION DETAILS
Application will require, at the minimum, the submission of the following information/materials:
- the name, address, and date of birth of the applicant;
- the address and legal property description of the business (if applicable, except an applicant is not required to secure a physical premises for the business at the time of application);
- a general description of the location or locations that the applicant plans to operate, including the planned square feet of space for cultivation, wholesaling, and retailing, as applicable;
- security plan;
- proof of trade name registration;
- business plan showing:
- recordkeeping plan;
- business knowledge and experience plan;
- environmental plan;
- financial plan;
- relevant financial and operational components;
- quality assurance plan;
- inventory control, storage, and diversion prevention;
- accounting and tax compliance;
- an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement;
- employee training plan;
- ownership chart;
- a copy of business policies governing operations to ensure compliance; and
- labor and employment practices;
License Preapproval
- License Preapproval – The office may establish a license preapproval process for a limited number of licenses. Eligibility for license preapproval includes:
- Only a social equity applicant is eligible for license preapproval.
- An applicant for a temporary license must:
- complete an initial application, on a form approved by the office; and
- pay the application fee required to the office.
- As part of the application process, the office must verify the applicant’s status as a social equity applicant.
- The office shall not require an applicant to possess or own any property on which or facility in which to operate a cannabis business at the time of the initial application
- If the number of available temporary licenses is less than the
number of applicants qualified for temporary licenses, the office must conduct a lottery. The lottery must be impartial, random, and in a format determined by the office. - Ownership cannot be transferred
Minnesota Cannabis Social Equity License
The office must make a social equity classification available to a social equity applicant. Social equity applicants must have at least 65% of the controlling ownership of the business entity.
- An individual qualifies as a social equity applicant if the individual was:
- Convicted of a cannabis-related offense prior to May 1, 2023, or had a parent, guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the effective date of the bill, was convicted of a cannabis-related offense;
- Is a military veteran, including status as a service-disabled veteran, or current or former member of the national guard;
- Is a military veteran or member of the national guard who lost honorable status due to a cannabis-related offense;
- A resident for the last five years of one or more subareas, such as census tracts or neighborhoods, that was disproportionately impacted by cannabis enforcement as determined by the study conducted by the office.
- Has participated in the business operation of a farm for at least 3 years and currently provides the majority of the day-to-day physical labor and management of a farm that had gross farm sales of at least $5,000 but no more than $100,000 the previous year.
- A resident for the last five years of one or more subareas, such as census tracts or neighborhoods, where:
- a disproportionately large amount of cannabis enforcement was experienced;
- the poverty rate was 20 percent or more;
- the median family income did not exceed 80 percent of statewide median family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the statewide median family income or 80 percent of the median family income for that metropolitan area.
- at least 20% of the households received assistance through the Supplemental Nutrition Assistance Program; or
- the population has a high level of vulnerability according to the CDC and ATSDR Social Vulnerability Index;
- The office must first conduct a lottery consisting of verified social equity applicants for preliminary license approval. If a social equity applicant is not selected in a lottery, the office must include the social equity applicant in the pool of applicants for licenses of that type that are made available to all applicants.
Medical Marijuana Program Overview
The state of Minnesota legalized medical cannabis in 2014 through a Legislative Bill, Senate File 2470, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. Access to medical cannabis is through state licensed businesses that are allowed to grow, manufacture and sell medical cannabis.
Medical Marijuana License Information
- Minnesota Medical Cannabis Manufacturers –are vertically integrated licenses which allow licensees to grow medical cannabis plants; extract, process and produce medical cannabis products such as pills, topicals, liquids, etc.; and dispense medical cannabis to registered patients. There is a limit of two (2) business licenses allowed for Minnesota Medical Cannabis Manufacturers within the state. Each Manufacturer is allowed to operate up to four (4) dispensaries. Both licenses have been issued, the state is no longer issuing anymore Medical Cannabis Manufacturers of this type.
The new adult-use bill referenced above, creates a new license type for medical marijuana businesses.
- Medical Cannabis Combination Business:
- Entitles the license holder to perform any or all of the following:
- grow cannabis plants from seed or immature plant to mature plant and harvest adult-use cannabis flower and medical cannabis flower from a mature plant;
- make cannabis concentrate and hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;
- manufacture artificially derived cannabinoids; medical cannabinoid products; adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption;
- purchase immature cannabis plants and seedlings and cannabis flower from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler, a medical cannabis cultivator, or another medical cannabis combination business;
- purchase hemp plant parts and propagules from an industrial hemp grower
- purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler, a medical cannabis processor, or another medical cannabis combination business;
- purchase hemp concentrate from an industrial hemp processor
- package and label medical cannabis and medical cannabinoid products for sale to medical cannabis processors, medical cannabis retailers, other medical cannabis combination businesses, and patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient;
- package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers;
- sell medical cannabis flower and medical cannabinoid products to patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient;
- sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers.
- A medical cannabis combination business may cultivate cannabis to be sold as medical cannabis flower or used in medical cannabinoid products in an area of up to 60,000 square feet of plant canopy.
- A medical cannabis combination business may operate up to one retail location in each congressional district. A medical cannabis combination business must offer medical cannabis flower, medical cannabinoid products, or both at every retail location.
- A person, cooperative, or business holding a medical cannabis combination license is prohibited from owning or operating any other cannabis business or hemp business. A person or business may only hold one medical cannabis combination license.
Number of licenses for each category will be determined by the Office of Cannabis Management (“Office”).
Minnesota Cannabis Program Timeline
- 2014 – Minnesota legalized medical cannabis
- 2015 – First Minnesota cannabis businesses opened and medical cannabis sales began
- May 2023 – Minnesota legalizes adult use cannabis
- January 2024 – Legalization legislation goes into effect
- March 7, 2024 – SF4782 Legislation introduced
- May 20, 2024 – House and Senate approve SF4782 (pending Governor’s Signature)
- July 24, 2024 – Latest date for Minnesota to open applications for license preapproval
- August 12, 2024 – Applications for license preapproval must end on this date
- Early 2025 – Applications for standard and social equity licenses anticipated
Interested in a Minnesota Cannabis License? Contact us at 602.290.9424 or email info@thecannabisbusinessadvisors.com
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