ST. PAUL, Minn. — Certain Minnesotans — such as veterans and people convicted of cannabis possession before it became legal — can begin the application process next week to secure the state’s first cannabis business licenses.
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 rulemaking continues pending a market introduction in 2025.
The first step in that process – verifying whether someone meets the criteria to get an early license – begins on Monday, June 24.
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. If verified as a social equity applicant, Minnesotans can apply for the license. That portal opens a month later, on July 24, and applicants must provide all information required by law, including detailed plans for operations, employee training, security and general industry experience.
There will then be a lottery in which licensees who meet the criteria will be chosen at random – a provision that sparked fierce debate in the capital this year.
Interim Director of the Office of Cannabis Management Charlene Briner defended the lawsuit was updated this year by state lawmakers, as a way to ensure it is fair and can withstand legal challenges.
“We are going to have a comprehensive process and review teams that want to make sure that the license is complete – that all the attachments, all the additional requirements that need to be submitted and that are specified in the law, that they have all been added are met and that all is OK,” she told WCCO in an interview on Tuesday. “So this isn’t just a random lottery. This is truly a poll of prepared, qualified candidates.”
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 that stores will be able to sell marijuana flower and products until the regulatory process is completed and the market officially opens next year.
But growers and mezzo and micro businesses that got the green light early will start growing commercial crops this fall, Briner said, if local governments also agree to the plans and if the companies follow the rules that already apply to medicinal cannabis. That was a change made by the legislature this year to meet demand once stores can open their doors.
“We want to make sure that we get at least a few months head start before the product can be grown, grown and processed, so that there is actually product on store shelves when they are allowed to open.” Briner explained.
When can someone apply for the cannabis business licenses?
The Office of Cannabis Management will accept applications starting June 24 for screening to determine eligibility 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
