The State of Minnesota is set to begin issuing business licenses for recreational cannabis, following the announcement from the Minnesota Office of Cannabis Management on Monday. The office confirmed that the final cannabis rules were published in the state register after receiving approval from an administrative judge earlier this month.
However, while the state can start issuing licenses, it may take at least another month before applicants actually receive them. An insider involved in the application process revealed to FOX 9 that many applicants are still waiting to progress to Step 3 of the state’s application process, as the necessary forms for this step are not yet available.
Social equity applicants will be prioritized for “uncapped” licenses, which allow them to operate microbusinesses, wholesalers, transporters, testing facilities, and delivery services. Meanwhile, licenses with caps will require lotteries, including 100 available for mezzobusinesses, 50 for cultivators, 24 for manufacturers, and 150 for retailers. These caps will be in effect until July 1, 2026, when the office plans to review the market.
Even once licenses are issued, there are uncertainties about how long it will take for cannabis businesses to become operational. A significant challenge is the state requirement that businesses utilize Minnesota-grown products. Microbusinesses have the ability to grow and manufacture cannabis while running a single retail location, but large-scale cultivator licenses are limited.
Last month, officials indicated that Minnesota would need between “1.5 to 2 million square feet of canopy” to meet the demand for cannabis products, but currently, there are only around 60,000 square feet available. This gap highlights the potential delays in meeting the market’s needs once licenses are finally distributed. The information for this article comes from the Office of Cannabis Management and industry insiders.
