ST. PAUL, Minn. — Certain Minnesotans — such as veterans and people convicted of cannabis possession before it became legal — can apply next month for the first cannabis business licenses designed to give entrepreneurs a leg up so the legal market is ready to launch in 2025 to go.
The Minnesota Legislature this year signed a “pre-approval” licensing process for the Office of Cannabis Management, allowing regulators to give some companies the green light sooner rather than later to plan accordingly — even as the regulatory process continues.
“We want to create an early-mover advantage to support the successful survival of the cannabis industry,” said Charlene Briner, interim director of the cannabis office, said about the plan in March. “We believe in the opportunities for social equality that the law creates. We also want to give people a chance to actually do some of the legwork required to keep a very complicated business afloat.”
Who can apply for the early, “pre-approved” licenses?
To qualify, Minnesota residents must meet the criteria of a “social equity applicant.” This includes veterans, farmers just starting their careers in agriculture, residents of high-poverty neighborhoods and people convicted of certain possession or sale of cannabis before lawmakers legalized it last year.
State regulators will first examine applications to ensure individuals qualify and have provided all information required by law, including detailed plans for operating the business, employee training, security and general industry experience .
If applicants go through that pre-screening process, they can apply for that early license. Then a lottery will take place where licensees who meet the criteria will be chosen at random – a provision that led to intense discussions in the capital this year.
Nick Rahn, owner of The Warrior’s Garden which sells hemp-derived THC and CBD products, is among the 327,000 Minnesota veterans considered social justice applicants. He would like to apply for a pre-approved license and plans to apply this summer.
“Being a veteran allows me to apply early which is great, especially the fact that we are already open and planning to be a cannabis dispensary. It will make me feel much better if we get the license early so we can can prepare ourselves for January 1, when everything starts moving.”
How many of these licenses are available?
State law limits the number of licenses offered in the pre-approval process:
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Cannabis microbusiness: 100
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Cannabis mezzobusiness: 25
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Cannabis growers: 13
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Cannabis manufacturers: 6
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Cannabis retailers (pharmacies): 38
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Cannabis wholesalers: 20
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Cannabis transporter: 20
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Cannabis tests: 50
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Cannabis delivery: 10
Obtaining a pre-approved license does not mean stores will be able to sell marijuana flower and products until regulations are completed and the market officially opens next year. Some growers could begin growing commercial crops this fall if they receive additional approval from local governments and adhere to rules already in place for medical cannabis.
When can someone apply for the cannabis business licenses?
The Office of Cannabis Management will accept applications starting June 24 for screening to determine if they qualify as social equity applicants, according to a timeline from regulators.
Subsequently, the portal for applying for a license pre-approval will open on July 24 and close on August 12. The office will then notify applicants if they have been selected.
Licensing applications for the general public that do not meet social justice criteria will open next year.
Caroline Cummings
