Minnesota Opens Cannabis License Applications After Lawsuit Delays

4 February 2025

Minnesota’s legal cannabis industry is moving forward after previous setbacks, as the state’s Office of Cannabis Management (OCM) announced it will accept business license applications from February 18 to March 14, 2025. The state will conduct a lottery to distribute a limited number of licenses, with half of them reserved for social equity applicants—individuals from communities disproportionately affected by previous cannabis laws. Lawsuits delayed the licensing process last year after numerous social equity applicants were rejected, prompting the OCM to revise its approach.

The upcoming lottery, expected to be held in May or June, will determine which businesses will receive licenses.

Critical Action Points for Potential Applicants

1. PREPARE FOR APPLICATION SUBMISSION

Application Window: February 18 – March 14, 2025

Where to Apply: Minnesota Office of Cannabis Management (OCM) website (resources available from February 14)

Who Can Apply:

• Social equity applicants (priority consideration in lotteries)
• General applicants (open to all eligible businesses)

2. KNOW YOUR LICENSE TYPE

Capped Licenses (Lottery-Based):

• Cultivator (25 licenses)
• Mezzobusiness (50 licenses)
• Manufacturer (12 licenses)
• Retailer (75 licenses)

Lottery Timing: May – June 2025

Lottery Process:

• First round: Social equity applicants
• Second round: Open to all (including unselected social equity applicants)

Uncapped Licenses (First-Come, First-Served, No Lottery):

• Microbusiness
• Wholesaler
• Transporter
• Testing Facility
• Delivery Service
• Medical Cannabis Combination Business

Applications reviewed on a rolling basis—faster processing for qualified applicants.

Future License Openings:

• Event Organizer Licenses: Summer 2025
• Lower-Potency Hemp Edible Manufacturer & Retailer Licenses: Fall 2025

3. IF YOU WERE PREVIOUSLY QUALIFIED (Uncapped Licenses)

• 211 preapproved applicants will receive instructions soon after February 18.

Next Steps:

• Submit a labor peace agreement
• Pass a background check
• Obtain local zoning approval & site registration
• Pass an inspection

Potential license issuance: Spring 2025 (pending rule adoption by March 2025).

4. IF YOU WERE PREVIOUSLY DENIED

• OCM will send requests for additional information.
• You’ll have an opportunity to correct application errors.

5. COMPLIANCE & OWNERSHIP RULES

“True Party of Interest” Regulations:

• OCM will vet all applicants for hidden ownership stakes.
• Violations could lead to a five-year ban from obtaining a cannabis license.

6. PLAN FOR MARKET ADJUSTMENTS (Post-2026)

• License caps remain in place until July 1, 2026.
• After that, OCM will review market conditions and may adjust available licenses.