Approved to start this past month, certain Minnesotans can now apply for the first cannabis business licenses in the state.
The Minnesota Legislature signed off on a “preapproval” licensing process for the Office of Cannabis Management. This process allows regulators to approve some businesses sooner rather than later to plan accordingly, even as rulemaking continues in anticipation of the market launch in 2025. The first step in that process, which involves verifying that someone meets the criteria to get an early license, has begun.
Who can apply for pre-approval?
To qualify for pre-approval, Minnesotans must meet the criteria of a “social equity applicant.” These include veterans, farmers who are just starting their careers in agriculture, residents from neighborhoods with high levels of poverty, and people convicted of certain possession or sale of cannabis before lawmakers legalized it last year, among others.
State regulators must first vet applications to ensure that individuals qualify. If verified as a social equity applicant, Minnesotans will then be able to apply for the license. That portal opens a month later, on July 24, and the applicant will need to supply all necessary information according to stature. This information must include detailed business operations plans, employee training, security, and overall experience in the industry.
Afterward, there will be a lottery in which licensees who meet the criteria will be chosen randomly – a provision that inspired a debate at the Capitol this year.
Interim director of the Office of Cannabis Management, Charlene Briner, defended this process, which was updated this year by state lawmakers to ensure that it’s fair and will withstand legal challenges.
Charlene Briner told WCCO in an interview on June 25, “We’re going to have a comprehensive process and review teams looking to make sure that the license is complete —that all of the attachments, all of the additional requirements that need to be submitted that were specified in law, that all of those had been met and that everything is in order. So, this is not just a random lottery. This is really gauging among prepared, qualified applicants.”
Nick Rahn, who is the owner of The Warrior’s Garden and sells hemp-derived THC and CBD products, is among the 327,000 Minnesota veterans who are considered social equity applicants. He stated “Because I’m a veteran, I can apply early, which is great, especially since we’re already open and intend to be a cannabis dispensary. It’s going to make me feel a lot better if we get the license early so we can be prepared for Jan. 1, when everything goes into motion.”
How many licenses are available?
State law caps the number of licenses offered in the pre-approval process to the following:
- Cannabis microbusiness: 100
- Cannabis mezzobusiness: 25
- Cannabis cultivators: 13
- Cannabis manufacturers: 6
- Cannabis retailers (dispensaries): 38
- Cannabis wholesalers: 20
- Cannabis transporter: 20
- Cannabis testing: 50
- Cannabis delivery: 10
However, getting a pre-approved license does not guarantee that retail stores can sell marijuana flowers and products any sooner than when the rulemaking process is complete and the market launches next year.
According to Briner, cultivators and mezzo- and micro-businesses given approval can begin growing commercial crops as soon as this fall if local governments also approve plans and if the businesses apply for rules already in place for medical cannabis. The legislature made that change this year to meet demand as soon as retail stores open this year.
When can someone apply for a business license?
The Office of Cannabis Management is now accepting applications to screen those who may be qualified as social equity applicants. The portal to apply for a license preapproval will open on July 24 and close on August 12. The office will then notify applicants if they are selected.
License applications for the general public who do not meet social equity criteria will open next year.
