For Immediate Release
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Media Contact: Jim Walker
(651) 539-5082
jim.walker@state.mn.us
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February 18, 2025
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Office of Cannabis Management now accepting cannabis business license applications
The office will prioritize application review to stage successful market launch
St. Paul, Minn. – Today, the Minnesota Office of Cannabis Management (OCM) began accepting applications for cannabis business licenses. During this license cycle, which will remain open until March 14, OCM will accept applications both from verified social equity applicants and from any applicant seeking to participate in general licensing in the following license types: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business.
In addition, cities or counties wishing to operate a single municipal cannabis store may apply for a retailer license during the application window. Municipal retailer licenses are not subject to a lottery. Applications for cannabis event organizer licenses will be accepted later this summer; applications for lower-potency hemp edible manufacturer licenses and lower-potency hemp edible retailer licenses will be accepted in the fall.
“Getting licenses into the hands of business owners is our priority and today marks another step towards opening Minnesota’s cannabis market,” said Eric Taubel, OCM interim director. “There is a great deal of interest from business owners who want to get started in this new space. We’re looking forward to working with applicants to take the crucial next steps in becoming licensed so they can make their businesses a reality.”
Today, 210 verified social equity applicants who were previously qualified for uncapped license types during the license preapproval process received instructions for completing the requirements to receive a license, including how 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 capped license types and lotteries
For the four license types that have a capped number of licenses set in state statute (cultivator, mezzobusiness, manufacturer and retailer), half of those 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 entered into 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
The six uncapped—or unlimited—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.
What this means for previously denied applicants
Later today, 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
Minnesota Statutes, section 342.185, requires cannabis business license applicants to disclose all true parties of interest in their prospective business. Requiring applicants to disclose ownership interests down to an individual-person level prevents someone from hiding corporate interests in multiple companies through LLCs and operating agreements—methods of gaming the licensing system seen in other states and Minnesota—to gain an unfair advantage. These provisions preserve the craft, small business market envisioned by the Legislature while helping to prevent predatory ownership structures.
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. 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:
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License availability (social equity)
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License Availability (all applicants)
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Medical cannabis combination business
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Licenses available summer 2025
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Licenses available summer 2025
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Lower-potency hemp edible manufacturer
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Licenses available fall 2025
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Licenses available fall 2025
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Lower-potency hemp edible retailer
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Licenses available fall 2025
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Licenses available fall 2025
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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 are available at mn.gov/ocm. 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.
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