Adam JacksonThe Minnesota Office of Cannabis Management announced Monday that its final cannabis rules have been published in the state register, officially putting them into effect after receiving approval from an administrative law judge earlier this month.
“The adoption of rules is the most significant step to launching the cannabis market because the office cannot issue business licenses until they are in place,” Interim Director Eric Taubel said in a statement.
The state can now begin issuing licenses to applicants who have completed all necessary application steps. More than 600 qualified social equity applicants who advanced from last fall’s preapproval process are first in line to receive business licenses after completing requirements including background checks, labor agreements and local government approvals.
However, an industry insider told FOX 9 that license applicants are still waiting to reach the third step in the application process, and forms for that step aren’t yet available. That applicant estimates it could take the state at least another month to complete the licensing process.
Even after licenses are issued, Minnesota still has some kinks to work out in launching its market. The state requires cannabis businesses to use Minnesota-grown products, but large-scale cultivator licenses are capped at 50. According to FOX 9, the Office of Cannabis Management previously estimated Minnesota would need “1.5 to 2 million square feet of canopy” to meet cannabis demand, while currently there is only about 60,000 square feet.
Last week, a state judge ordered regulators to hold a lottery for 182 social equity licenses among 648 verified applicants, Green Market Report wrote at the time. The lottery must occur before proceeding to general permitting for non-equity candidates.
Several license categories also remain capped through July 1, 2026, including mezzobusiness (100 licenses), cultivator (50 licenses), manufacturer (24 licenses) and retailer (150 licenses). Uncapped license categories include microbusiness, wholesaler, transporter, testing facility and delivery service.
“It was important for us to preserve early-mover advantages for social equity applicants envisioned by the Legislature,” Jess Jackson, the office’s director of social equity, said in the news release. “By ensuring the applicants who qualified during license preapproval have the first chance at licenses once rules are approved, we are continuing to prioritize social equity in every stage of licensing.”
The OCM has around 3,500 total business license applications to process, with additional lotteries for capped license categories expected to take place this summer.
