Adult-use cannabis sales in Minnesota are one step closer to reality after an administrative law judge approved the draft rules governing the market. The Minnesota Office of Cannabis Management (OCM) announced that the rules were approved without any changes in a news release on Monday.
These rules will soon be published in the Minnesota State Register and are set to go into effect later this month. This approval allows the OCM to start issuing licenses to applicants who have completed all necessary steps in the application process.
Eric Taubel, the interim director of the OCM, emphasized that the approval of the rules is a significant milestone for launching the cannabis market. He noted that the office cannot issue business licenses until the rules are officially in place. Taubel stated that the judge’s approval reflects the OCM’s efforts to engage with the cannabis business community to create a fair and safe market structure in Minnesota.
The approval of the adult-use rules comes shortly after a Ramsey County District Court judge ordered state marijuana regulators to conduct a lottery for issuing business licenses to qualified social equity applicants. This ruling was made amid concerns that the social equity licensing lottery might be canceled entirely.
Currently, over 1,000 applicants qualify for social equity licenses, many of whom are applying for license types that are not capped and will not be part of the lottery. However, those applying for capped license types—such as cultivator, mezzobusiness, manufacturer, and retailer—will enter lottery drawings this summer to obtain their licenses.
In addition, more than 600 applicants have already progressed through the preapproval process conducted by the state last fall. These applicants must complete various requirements, including background checks and securing local government approvals, before becoming eligible to receive the first business licenses.
Jess Jackson, the OCM’s director of social equity, highlighted the importance of preserving early-mover advantages for social equity applicants as envisioned by state lawmakers. He stated that prioritizing these applicants ensures they have the first opportunity at licenses once the rules are approved.
