Minnesota Cannabis Application & Licensing

• Population: 5.706 million (2020)
• Median Income: $82,338
• Largest Cities: Minneapolis (426,877), St. Paul (308,806), Rochester (120,848), Bloomington (89,244), Duluth (86,772), & Brooklyn Park (84,951)

• Medical Cannabis Patient Count: 41,140

o 51.0% of all enrolled patients live in the seven-county Twin Cities metropolitan area

• Expected 2025 Retail Sales: $550 million

• Standard License

• Social Equity Businesses: To be considered as a social-equity applicant, 65% of an applicant's "controlling ownership" must meet the criteria for social-equity status. An applicant qualifies as a social equity applicant if the applicant is/was:

o Convicted of possessing or selling cannabis;

o A family member of someone convicted of possessing or selling cannabis;

o A military veteran, including a service-disabled veteran, current or former member of the national guard;

o A military veteran or current or former member of the national guard who lost honorable status due to an offense involving the possession or sale of cannabis or marijuana

o A resident for at least five years of a neighborhood that experienced a disproportionately large amount of cannabis enforcement or high poverty rates;

o Currently a farmer or aspiring cannabis farmer who faces barriers to education or employment (though details on what those barriers may entail are not currently included);

• Microbusiness: 100

• Retailer: 50

• Testing Labs: 25

• Wholesaler: 20

• Transporter: 20

• Cultivator: 13

• Mezzobusiness: 11

• Event Organizer: 10

• Delivery service: 10

• Manufacturer: 6

In addition to the initial restriction on social equity licenses in the first round, the proposed bill implements a new limit concerning the total number of licenses across all rounds for all other applicants, which is as followed:

• Retailer: 100

• Cultivator: 25

• Mezzobusiness: 22

• Manufacturer: 12

In Minnesota, the state plans to use a lottery system to issue cannabis licenses as a fair and transparent method to allocate a limited number of available licenses. This approach aims to give all qualified applicants an equal chance of obtaining a license, thereby avoiding favoritism or bias. The first lottery held will be strictly for social equity applicants. Interested parties will submit their applications within a designated period, and the lottery will randomly select the recipients from this pool. This method helps to ensure a diverse range of businesses can enter the market, supporting the state's goals of equity and accessibility in the cannabis industry.

The office must announce the commencement of a license preapproval application period at least 14 days before the date that the office begins to accept applications. For the first round for social equity applicants, the office must begin accepting applications no later than July 24, 2024. The application period must end on August 12, 2024. The first round lottery is expected to be held in the fall.

• Ownership Management Disclosure Plan

• Security Plan

• Business & Financial Plan

• Location Plan

• SOP’s for:

o Quality Assurance

o Inventory Control, Storage, & Diversion Prevention

o Accounting and Tax Compliance

• Bona Fide Labor Attestation

• Training & Education Plan

• Compliance Business Policies

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For any license type looking to cultivate, the limitations are as followed:

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Standard Licenses issued may be freely transferred subject to the prior written approval of the office. Licenses issued as social equity licenses may only be transferred to another social equity applicant for three years after the date on which the office issues the license. Three years after the date of issuance, a license holder may transfer a license to any entity.