“Prospective business owners are eager to get started, and applying for a license sets them on a path to launching their business,” said Eric Taubel, OCM interim director. “Getting licenses out the door and into the hands of qualified applicants is our priority as we approach the launch of Minnesota’s adult-use cannabis industry.”   

What this means for capped license types and lotteries 

For the four license types that are capped in state statute (cultivator, mezzobusiness, manufacturer and retailer), half of the available licenses are reserved for verified social equity applicants and half are available to all applicants. Qualified applicants in the four capped license types will be subject to a series of lottery drawings for distribution of these licenses. Lotteries for each license type will be conducted in two parts. The first part will be limited to only verified social equity applicants. If not selected, qualified social equity verified applicants will be entered into the second part—open to all applicants—for the remaining licenses available. This means social equity applicants may be provided with up to two opportunities to be entered into a lottery. 

The exact timing of the lotteries will depend on the volume of applications for the available license types. As this is the first license cycle open to all applicants for 10 cannabis business license types, a high volume of applications is expected. OCM anticipates starting lotteries in the May-June timeframe. 

What this means for uncapped license types and previously qualified applicants 

Uncapped license types include microbusiness, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business. Applications for these license types will be reviewed on a rolling basis and because they do not involve a lottery, applicants will be able to begin their final steps to obtaining a license as soon as they are deemed qualified. 

Among the applicants who were previously qualified for uncapped license types during the license preapproval process, 211 applicants opted to move forward in this licensing cycle. Soon after the window opens, they will receive instructions for completing requirements to provide a labor peace agreement, pass a background check, secure local zoning compliance and site registration approvals, and pass an inspection. Upon completing these requirements and the official adoption of rules—expected by the end of March—these applicants could receive licenses this spring. 

What this means for previously denied applicants 

OCM will send a request for more information to applicants who were denied in the license preapproval process and who opted to continue to the next licensing cycle. In contrast to the license preapproval process, which had greater time constraints and was oriented toward assessing readiness, applicants will have an opportunity to correct a broader range of errors in their applications.  

True party of interest protections 

OCM will continue to enforce Minnesota’s true party of interest and ownership protections through vetting at the preliminary application review stage and then through additional due diligence of qualified applicants once advanced to the next phase of the application process. The office will continue to identify actions in violation of Minnesota Statutes, Chapter 342, and to pursue all legal recourse available, which may result in a five-year prohibition on obtaining a cannabis license. 

Available licenses by type 

Below is the total number of available cannabis business licenses for applicants during the Feb. 18-March 14 licensing window:  

Statutory caps are in place through July 1, 2026. After that date, OCM will examine market performance and decisions on adjusting the number of capped licenses will be made at that time. 

Additional information and technical resources for applicants will be available at mn.gov/ocm beginning Feb. 14. Interested applicants are strongly encouraged to review this guidance, as well as Minnesota Statutes, Chapter 342, and the additional information available on the OCM website prior to making any business decisions.