Minnesota to open adult-use marijuana licensing this month

Prospective operators in Minnesota’s impending adult-use marijuana market can begin submitting business license applications on Feb. 18.

The licensing window will be open until March 14, according to a news release from the state’s Office of Cannabis Management (OCM).

10 permit types available

The OCM will accept applications for the following types of licenses:

• Adult use and medical cannabis combination businesses.
• Cultivator.
• Delivery service.
• Manufacturer.
• Mezzobusiness.
• Microbusiness.
• Retailer.
• Testing facility.
• Transporter.
• Wholesaler.

A mezzobusiness license, under Minnesota law, allows an operator to:

• Grow up to 15,000 square feet of canopy indoors and up to 1 acre outdoors.
• Run up to three retail locations.
• Transport cannabis between facilities.
• Sell authorized cannabis products to other businesses.

The OCM’s interim director, Eric Taubel, seemed to take note of the uneasiness some prospective operators might be feeling given the delays and uncertainty surrounding the market’s launch.

“Prospective business owners are eager to get started, and applying for a license sets them on a path to launching their business,” Taubel said in a statement.

“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.”

Some license types are capped

Four of the license types capped by the state statute – cultivator (25 available), manufacturer (12), mezzobusiness (50) and retailer (75) – will be awarded by a series of lottery drawings, according to the release.

Half of the capped licenses are designated for verified social equity applicants, who will be able to participate in the first half of the lotteries.

Uncapped license types – adult use and medical cannabis combination business, delivery service, microbusiness, testing facility, transporter and wholesaler – will be reviewed on a rolling basis.

The license caps will be in place through July 1, 2026, after which the OCM will review the market’s performance to determine whether to make adjustments.

Of the applicants who qualified for the uncapped license types during a preapproval process, 211 have moved forward in the process.

They will receive instructions for providing a labor peace agreement, passing a background check, complying with local zoning regulations and passing inspections. After completing the requirements, they could receive their licenses this spring.