ST. PAUL, Minn. — Some looking to cash in on cannabis are frustrated now that the early business license The approval will be delayed until at least the end of the year, after regulators initially planned for this fall.
State lawmakers signed the “pre-approval” of a business license this year to give some entrepreneurs a head start in planning accordingly so they are ready for the expected market launch next year – even as the regulatory process continues. The rest of the business permits would follow next year.
This summer, the Office of Cannabis Management began that process by pre-screening social equity applicants, the individuals who can apply for the early licenses.
If someone met those criteria, he or she could apply for the approximately 280 available early licenses. That period is over, but the next step is the random lottery where the cannabis agency will choose who gets a license – from growers to manufacturers to retailers and more.
Applicants expected the lottery drawing this fall. But a spokesperson for the Office of Cannabis Management said reviewing applications to ensure companies aren’t in violation of state law is taking more time than expected.
“We did not have a specific date in mind for the lottery because we did not know how many applications we would receive or how long it would take to review them,” said Public Information Officer Jim Walker. “We are confident that we will hold the properly vetted lottery before the end of the calendar year.”
Minnesotans who qualified and applied for this first round of licenses say they are frustrated by the setback, even if it only lasts a few months. Nicholas Rahn, a veteran owner of the Warrior’s Garden in St. Paul, which sells low-dose, hemp-derived THC edibles products is seeking a cannabis retailer license.
He said he cannot secure the capital needed to renovate his Lowertown store to meet the requirements for opening a dispensary that sells pot without that pre-approved permit. He wants the Office of Cannabis Management to be more communicative about the process.
“Everything runs on this license,” he said. ‘I need it so I can move forward with the loan. And the loan also takes time. You’re not just going to apply and get it right away.”
The lottery system for choosing who actually gets a license was the subject of intense debate in the state capital this year. It was part of a package of changes this year to the 2023 law legalizing cannabis for recreational use by adults allowing some of those pre-approved licensees to grow early so there is a supply of plants to sell upon market introduction.
Angela Dawson, president of Bold North Farms, which currently grows hemp in Northern Minnesota, worries that the current permitting issues will lead to damaging delays.
“The period for growing early in Minnesota is over unless you already have a building built,” Dawson said.
Doing the latter, she added, would require significant investments that she says she cannot make, and other social equity applicants are likely to find themselves in similar situations.
“It’s frustrating and disheartening because the whole purpose of this early mover benefit was to address the issues that social equity applicants already face when it comes to being disadvantaged in a market like this,” she said.
Cannabis regulators initially planned a market launch in early 2025. But the cannabis office’s interim director earlier this year tempered expectations and said the goal is to have the general license application process open by then.
