Minnesota Cannabis Program Updates

Minnesota Cannabis Program Updates

Sabrina
SEPTEMBER 12TH, 2024

Minnesota Cannabis Licensing Updates

Recreational cannabis in Minnesota has been legal since August 1, 2023, after Governor Tim Walz signed House File 100. This effectively legalized the use, possession, and cultivation of cannabis. Regulators have been working to establish frameworks for the industry and expect retail to begin in 2025, although tribal cannabis operations are already beginning to launch.

Minnesotans eager to enter the up-and-coming cannabis industry are closely following developments. Here’s the latest on Minnesota cannabis:

 

Social equity applicants begin the licensure process

On July 10, 2024, the social equity eligibility verification window closed. The Office of Cannabis Management says there will be future opportunities for those who missed the window.

Those deemed eligible for social equity licenses had from July 24 to August 12 to begin the licensure process. The Office of Cannabis Management reported receiving 1,817 applications by the end of that window. Businesses that have completed applications and received verification from the state will be entered into a lottery.

The state expects to dole out 282 licenses in the first cycle. Minnesota cannabis legislation allows for 150 dispensaries, with half of the allotted licenses going to social equity applicants.

 

What’s next for Minnesota cannabis licensing in 2025?

No official timeline for the lottery has been announced, though the Office of Cannabis Management says it will happen sometime in the fall. Lottery winners will be awarded licenses across nine different categories.

Retailers will not be able to immediately sell cannabis upon receiving their license. They will, however, get a hard start once non-tribal cannabis dispensaries launch (more on that below.) The state has not announced when general license applications will open, though it’s expected to happen sometime in 2025.

 

Tribal nations embrace Minnesota cannabis

While regulators work to get the adult-use Minnesota cannabis industry up and running, some tribal communities are getting a head start. Some nations have enacted their own cannabis regulatory bodies to license and regulate cannabis sales on sovereign land.

 

Minnesota cannabis beverage market

While recreational cannabis sales in Minnesota have yet to officially begin, the state already has a booming cannabis beverage market. One industry estimate indicates that the Minnesota cannabis beverage industry is a $200 million market, with around 4,000 licensed retailers.

The beverage market proliferated in 2022 when a law took effect allowing anyone 21 or older to purchase edibles or beverages with up to 5 mg of hemp-derived THC.

Those who launched low-dose THC shops in response to this law may be left out of the upcoming adult-use market as the state has transitioned from a points-based system to a lottery. There are nearly 4,000 businesses registered to sell low-dose THC products across the state.

 

Are you interested in obtaining a cannabis business license in Minnesota? Call us to speak with an industry expert at 602-290-9424.

Need help developing an effective business plan? Shop our templates today!

 

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