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July 21, 2025
In this issue:
News and Updates
Government Relations Updates
Resources and Reminders
News and Updates
Lottery for cannabis retailers tomorrow
On July 22, OCM will hold a cannabis retailer license lottery for general applicants and social equity applicants (SEAs) not selected in the June 5 lottery. There are 569 applicants, 281 social equity and 288 general, who will have a chance in the cannabis retailer lottery. Seventy-five applicants will be randomly selected.
Applicants selected in the lottery must still complete final steps in the licensing process before they are granted a business license, including passing background checks, providing a signed labor peace agreement with a bona fide labor organization, securing a site location and approvals from local units of government, and submitting final business plans to OCM.
Learn more on the License Lottery Overview webpage.
Applications for cannabis event organizer and testing facility licenses to open Aug. 1
On August 1, OCM will begin accepting applications for cannabis event organizer licenses and cannabis testing facilities. This will be an open-ended opportunity for event organizer and testing facility applicants, with applications accepted on a rolling basis.
The cannabis event organizer license authorizes the holder to plan and host temporary cannabis-related events in Minnesota. Pursuant to Minnesota law, cannabis events must be limited to ages 21 and older and may not include the sale or consumption of alcohol. Cannabis events may feature the on-site sale of cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products by licensed cannabis and hemp businesses. If approved by the local government, cannabis events may also feature the on-site consumption of adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products. Event organizers may host multiday events, provided that the event does not exceed four consecutive days in duration.
This license type is temporary, and a new license must be obtained for each event. All cannabis event activities require local approval, including but not limited to any permits or licenses required by the applicable local unit of government and specific approval of on-site consumption areas. Event organizers must obtain this approval before submitting an application to OCM and provide proof of local approval as part of the application.
Learn more about the cannabis event organizer license and the testing facility license on the Available License Types webpage. Additional guidance on hosting cannabis events can be found on the Hosting Cannabis Events webpage.
OCM is also hosting a webinar on cannabis event organizer licenses on July 30 at 4 p.m. Sign up for this event via Microsoft Teams.
Watch a recording of the Testing Facility, Manufacturer, Cultivator and Wholesaler webinar. Note: Additional changes in state legislation approved this session established a license variance process for cannabis testing facility applicants. The change addresses potential bottlenecks in testing capacity by allowing applicants to obtain a license while pending accreditation by the International Standards Organization (ISO). This change was made after the webinar was recorded.
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First cannabis licenses issued
OCM issued the first cannabis business license in the state of Minnesota on June 18. The first licensee, Herb Quest, LLC, is a microbusiness located in Brook Park in Pine County, Minnesota, whose initial primary business activity will be outdoor cultivation of cannabis plants. Three additional cannabis licenses were issued last week.
Interim Director Eric Taubel said issuing the license is a major milestone for the emerging market and the licensee will now be able to begin growing plants to help further boost the state’s supply chain. Herb Quest, LLC joins more than 1,000 businesses that are within the final steps of completing their applications and securing approvals from local governments.
Find updated licensing numbers on our Summary Application Data webpage.
Verification of social equity status
Prospective applicants who want to have their social equity status verified have another chance to do so until 11:59 p.m. tonight. Changes to Minnesota’s cannabis law expanded the list of qualifying criteria for social equity status to include applicants who have received stays of adjudication and adjudications of delinquency. OCM will proactively review the submissions of individuals whose social equity status was previously denied under this criterion and will inform those whose status is now verified for future opportunities using the revised criterion.
Completing social equity verification is not required for obtaining a cannabis business license. However, it is a necessary step for individuals who wish to apply for a cannabis business license with a social equity classification, or for individuals intending to buy into a pre-existing cannabis business license with a social equity component to its ownership. Individuals who have already had their social equity status verified do not need to seek verification again. Information about the social equity verification process, including criteria for qualifying and guidance on the process, is available on OCM’s Social Equity Verification Process webpage.
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Register your hemp business by August 31
OCM is accepting registrations for businesses seeking to sell hemp-derived cannabinoid products (HDCPs) to consumers. Businesses that sell HDCPs but are not registered with the Office of Cannabis Management are in violation of Minnesota law and will be subject to enforcement action including the destruction of all the business’s HDCPs and penalties of up to $10,000 for each violation.
The registration window will remain open until August 31, making it possible for unregistered businesses to become eligible to sell HDCPs, including hemp-derived THC beverages, during the busy summer season. OCM also announced that starting October 1 and continuing through October 31, it will accept business license applications for three license types: lower-potency hemp edible retailers, lower-potency hemp edible manufacturers, and lower-potency hemp edible wholesalers. License application guidance and materials will be made available on the OCM website in advance of the October application period.
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Summary of legislative changes
During the most recent legislative session, the Minnesota Legislature passed a series of changes to the state's cannabis laws. Governor Walz signed Minnesota Statutes, chapter 31 (Senate File (SF) 2370-3), into law, and the changes took effect on May 27. OCM has published a Summary of Cannabis Policy Changes 2025 on our website. Please review this summary for the latest updates in cannabis and hemp business licensing and regulations, the medical cannabis program, and more.
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Updated Local Government Guide – version 4.0 now available
To reflect the new legislative changes as well as ongoing engagement with local partners, OCM has updated our resources for local governments, most notably by launching a new version of our Guide for Local Governments on Adult-Use Cannabis and Lower-Potency Hemp Edible Licenses. First published in June 2024, this updated version—Version 4.0—reflects the changes made during the 2025 legislative session, including guidance specific to questions from local partners, the licensing application window for cannabis event organizers, and the new process for lower-potency hemp edible licensing coming this fall. OCM encourages all local partners—and applicants working with local governments—to bookmark the updated guide and keep it available for easy reference. Please also be sure to check publishing/version dates of your guidance materials and utilize this newest version.
For updated retail registration guidance specific to the new change in law, please review the latest bulletin: New Retail Registration Information. Additionally, for specific guidance regarding hosting cannabis events, please review the updates to the OCM webpage.
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Resources and Reminders
Product transition period for existing regulated product supply chains
Launching a new retail market for cannabis and hemp-derived products that is governed by one statute (chapter 342), while maintaining existing markets authorized under other statutes (section 151.72 and chapter 152) is complex. Prospective hemp-derived, adult-use cannabis, and medical cannabis businesses have understandably had questions about how to manage the transition between regulatory frameworks, particularly as it pertains to statutory requirements for products and packaging/labeling.
To support the launch of the adult-use cannabis market and provide continuity for existing hemp-derived businesses and medical cannabis patients, OCM has authorized a product transition period through December 31, 2025. During this transition period, license holders conducting retail sales under Minnesota Statutes, chapter 342 are authorized to sell products compliant under the existing regulated supply chains in section 151.72 and sections 152.22-152.37, including hemp-derived cannabinoid products (HDCPs) and medical cannabis.
On the Product Transition Period webpage, we outline how this product transition period impacts hemp-derived product retailers, manufacturers, and Minnesota’s medical cannabis program.
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