The Minnesota Office of Cannabis Management (OCM) announced Tuesday it would open its application window for cannabis business licenses starting Feb. 18 through March 14 as the state’s cannabis industry continues to take shape despite mounting delays, changes in office leadership, and even a lawsuit challenging a proposed equity lottery.
OCM said it would accept applications from both verified social equity applicants and from any applicant seeking license types including in microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business.
“It’s exciting news,” OCM spokesperson Josh Collins said. “We know that there are a lot of prospective business owners interested in taking the steps towards opening a new business. This is that first opportunity for general licensing to be available to everybody.”
State statue limits the amount of licenses available for four difference license types including cultivator, mezzobusiness, manufacturer, and retailer. Those licenses applications will be reviewed and qualified applicants in the four capped license types will be subject to a series of lottery drawings that are expected to happen in May/June.
That lottery was supposed to happen late last year, but was postponed after lawsuits convinced a judge to put it on hold.
“We had to pivot our plans to try and make sure we were not leaving our perspective business owners with significant uncertainty about the process and what to expect,” Collins said. “The process is on track and we’re looking forward to people really getting that chance to put-in their applications.”
OCM received around 2,000 applications during the last attempt at a lottery, but ran into a high number of fraudulent applications from individuals trying to scoop-up licenses.
“We’re going to be putting a keen-eye on the applications and making sure that the appropriate ones get through.”
Statutory caps will remain in place until July 1, 2026.
Status of Minnesota dispensaries
Minnesota is the only state that had dispensaries open on the first day of legalization in August of 2023. The state has a medical cannabis program, but recreational dispensaries have remained on sovereign tribal lands.
“We’re going to be expecting to have those dispensaries probably, if business are ready after they get their licenses later this spring, we could expect to see businesses open later this summer,” added Collins.
OCM has been working with tribal partners on compacting to allow sovereign tribes to have dispensaries off tribal land.
“One of the benefits we know that will arise very earlier is when it comes to product,” Collins said. “Tribes have been able to begin cultivating on their sovereign land. When the market opens, we would expect that likely they would supply some of their products to non-tribal dispensaries. There was a provision in our cannabis law to allow early cultivation to jumpstart the retail marketplace, but the benefits of that opportunity really disappeared when we had the lawsuit stop our November lottery.”
An application cycle for event organizers will take place later this summer.
