Minnesota Marijuana Business Licenses

Medical Marijuana in Minnesota

Minnesota entered the medical marijuana industry in July of 2014 through the passage of the Minnesota Medical Cannabis Act, S.F. No. 2470. This program allowed eligible patients with certain qualifying medical conditions to obtain medical cannabis from state registered dispensaries.

The law established a patient registry program administered by the Minnesota Department of Health (“MDH”), and allows qualifying patients enrolled in the registry to possess and use cannabis for medical purposes. The law allows two (2) manufacturers to be registered in the state. Each manufacturer must have one manufacturing facility and is permitted to have eight distribution sites throughout the state. The manufacturers may distribute medical cannabis in the form of dried raw cannabis or as a pill, liquid, topical product, water-soluble cannabinoid multi-particulate, orally dissolvable product, or infused edible product in the form of gummies and chews, and patients may possess medical cannabis in those form.  As a condition of initial registration of medical marijuana manufacturers, each manufacturer agreed to begin distribution of medical cannabis to patients by July 1, 2015, and comply with other requirements under the law.

Recreational Marijuana in Minnesota

On May 30th, 2023, the Governor of Minnesota, Tim Walz, signed HF 100A to legalize recreational marijuana for individuals 21 years and older. As the 23rd state to legalize marijuana within its borders, the new law permits adults to legally possess marijuana on August 1st, 2023. Further, in August, state officials will begin the process of reviewing and expunging tens of thousands of marijuana convictions. Although the decriminalization and expungement efforts will begin quickly, adults in Minnesota will likely not see retail sales of cannabis products until January 2025.

The 300-page bill carves out the new recreational marijuana program and its implementation in “The North Star State.” Pursuant to the new law, the Minnesota Office of Cannabis Management (“OCM”) will oversee the adult-use licensing program. In 2024, the Governor signed HF 4757 into law, which significantly modified the adult-use program’s roll-out from eliminating the merit-based scoring system and replacing it with a “vetted” lottery to expanding the definition of “social equity.”

Types of Adult-Use Marijuana Business Licenses & Fees

  • Microbusiness
    • Application fee: $500
    • License fee: $0
    • Renewal fee: $2,000
  • Mezzobusiness
    • Application fee: $5,000
    • License fee: $5,000
    • Renewal fee: $10,000
  • Cultivator
    • Application fee: $10,000
    • License fee: $20,000
    • Renewal fee: $30,000
  • Manufacturer
    • Application fee: $10,000
    • License fee: $10,000
    • Renewal fee: $20,000
  • Retailer
    • Application fee: $2,500
    • License fee: $2,500
    • Renewal fee: $5,000
  • Wholesaler
    • Application fee: $5,000
    • License fee: $5,000
    • Renewal fee: $10,000
  • Transporter
    • Application fee: $250
    • License fee: $500
    • Renewal fee: $1,000
  • Testing Facility
    • Application fee:
    • License fee:
    • Renewal fee:
  • Event Organizer
    • Application fee: $750
    • License fee: $750
  • Delivery Service
    • Application fee: $250
    • License fee: $500
    • Renewal fee: $1,000

Upcoming Applications for Adult-Use Marijuana Business Licenses

The newly formed Minnesota Office of Cannabis Management will be accepting pre-approval applications from qualified “social equity” applicants July 24, 2024 – August 12, 2024. Prior to submitting an application, applicants will need to have their status as a “social equity” applicant verified by the Office from June 24, 2024 – July 10, 2024 (11:59 PM). We expect a general lottery will be held for all applicants in Q1/Q2 of 2025.

Social equity applicants are people who were convicted of possessing or selling cannabis; family members of someone convicted of possessing or selling cannabis; service-disabled veterans, current or former members of the national guard, or any military veteran or current or former member of the national guard who lost honorable status due to an offense involving the possession or sale of cannabis; residents for at least five years of a neighborhood that experienced a disproportionately large amount of cannabis enforcement; emerging farmers; and residents of at least five years of census tracts with high poverty rates.

With projected annual cannabis sales to surpass $500 Million by 2027, Minnesota is carving out a lucrative market for those wishing to enter its adult-use marijuana industry. From low excise taxes and reasonable licensing fees to its ideal location as it is bordered by four (4) states that have yet to legalize marijuana, now is the time to work with a Team of Cannabis business license experts to start strategizing your competitive application and developing your advantageous business. Contact us today to discuss your options!

Last Updated: May 31st, 2024

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