Minnesota Office of Cannabis Management has announced that the final rules for cannabis have been published by state registry. They are now officially in effect, after being approved earlier this month by an administrative law court.
In a press release, Interim Director Eric Taubel stated that “the adoption of rules” is the first step in the launch of the cannabis industry. The office can’t issue licenses to businesses until the rules are implemented.
After applicants complete all required steps, the state will begin to issue licenses. Following the completion of background checks and other requirements, including labor agreements and approval from local governments, over 600 applicants for social equity who passed through last autumn’s preapproval are now in line to get business licenses.
An industry insider, however, told FOX9 that applicants still have to wait for the third step of the process and that forms aren’t available yet. The applicant estimated that the state could need at least one more month to finish the licensing process.
Minnesota has many kinks that need to be worked out before it can launch its market. Licenses for large-scale cannabis cultivators are limited to 50. The state mandates that businesses use Minnesota-grown product. FOX 9 reported that the Office of Cannabis Management estimated Minnesota needed “1.5-2 million square feet of canopies” in order to meet its cannabis demands, but there are currently only 60,000 square meters.
A state judge ordered last week that regulators hold a raffle for 182 licenses in social equity among 648 applicants who had been verified. Green Market Report At the time, I wrote: It is necessary to conduct the lottery before granting general permission for candidates who do not have equity.
There are also several license categories that remain restricted until the 1st of July 2026. This includes mezzobusinesses, cultivators (50 licences), manufacturers (24) and retails (152) License categories with no limit include those for microbusinesses, wholesalers and testers.
Jess Jackson is the director of the social equity office. She said that it was crucial to maintain the advantages granted by the Legislature for applicants who are socially equitable. We continue to put social equity first by ensuring applicants that qualified for license preapproval are the ones who get licenses as soon as the rules are approved.
OCM is currently processing around 3500 business licenses. Additional lotteries are expected this summer for license categories with a cap.