Completing social equity verification is a necessary step for individuals who wish to apply for a cannabis business license with a social equity classification. Individuals who had their social equity status verified prior to the license preapproval round do not need to seek verification again; a verified applicant retains their social equity verification status in perpetuity. Social equity verification is an option to consider when making business decisions on the path to obtaining a cannabis license. It is not required for obtaining a cannabis business license. Like deciding which license type to pursue, it is a consideration for each prospective applicant to determine whether social equity verified classification best meets their unique business goals.  

Applicants whose social equity status has been verified can apply for a cannabis business license with a social equity classification during the upcoming license application window from February 18 to March 14. During this cycle, OCM will accept applications for cannabis business licenses from any interested party, including those who have not sought social equity verification. 

“Our social equity applicants remain vital partners in the adult-use cannabis market and will form one of the cornerstones of Minnesota’s unique approach to legal adult-use cannabis,” said OCM Interim Director Charlene Briner. “Our main goal in the months ahead is to issue licenses and launch Minnesota’s adult-use cannabis program promptly while preserving the benefits for qualified social equity applicants envisioned in the law.” 

Under Minnesota’s cannabis law, someone qualifies as a social equity applicant if they meet at least one of the following criteria: had a prior conviction involving the possession or sale of cannabis; was the dependent of or has a dependent with a prior cannabis-related conviction; is a military veteran, service-disabled veteran, member of the National Guard, or a military veteran who lost honorable status due to a cannabis offence; has participated in small farm operations; or whose residency in the last five years meets a range of geographic qualifying factors, including disproportionate cannabis enforcement, concentrations of poverty, median family income, households qualifying for SNAP, or high levels of vulnerability according to the Centers for Disease Control and Prevention and the Social Vulnerability Index. 

Prospective applicants who plan to apply for one of the four capped licenses (cultivator, mezzobusiness, manufacturer and retailer) will be required to go through a lottery for distribution of the licenses for social equity applicants. For these four license types, 50% of the licenses available for each type are reserved specifically for applicants with social equity verification. If not selected, qualified social equity verified applicants will then be entered into a second lottery for the remaining licenses available. This means they may be provided with up to two opportunities to be entered into a lottery. 

Qualified applicants seeking license types that are not capped in statute may receive a business license as soon as rules are adopted, which is anticipated in the first quarter of 2025. 

“The coming months will see significant progress as businesses move through the licensing process,” said Briner. “With the adoption of rules on the horizon this spring, we expect some businesses will be in position to begin operations this summer.” 

Important dates in the upcoming licensing cycle