Minnesota’s cannabis retail licenses are set to be issued in May, marking a significant milestone for the state’s marijuana industry. The Office of Cannabis Management announced that it has finalized its rules, paving the way for many aspiring dispensary owners to start the licensing process.
Microbusinesses, often referred to as the “mom & pops” of the cannabis sector, can immediately begin their applications. This approach is designed to support small, local businesses in establishing themselves in the emerging market. However, there remains uncertainty about how these retailers will legally obtain cannabis flower before cultivators harvest their initial crops.
The licensing process is expected to favor smaller businesses initially, while larger companies may have to wait longer for a lottery system to be established. The finalized regulations, which span 132 pages, have been anticipated for nearly two years by cannabis advocates. Carol Moss, a cannabis attorney and partner at Hellmuth & Johnson, described the rule registration as “a big step” for Minnesota’s cannabis industry, emphasizing her role in drafting the bill that legalized recreational marijuana in the state.
With the new rules in place, microbusiness owners can now secure storefronts, collaborate with local governments on zoning, enhance their security measures, and prepare to sell products. Moss expressed optimism, stating, “I would be shocked if we don’t have stores opening up this summer.” David Mendolia, the owner of St. Paul Cannabis, echoed this sentiment, noting the swift progress after a lengthy buildup.
Approximately 1,850 applicants have sought microbusiness licenses, allowing them to open a retail shop, cultivate up to 5,000 square feet, or manufacture cannabis products on a small scale. Most applicants are from Minnesota, while many larger applicants hail from other states, potentially giving local businesses a competitive edge in the early market.
Despite the excitement, there are concerns regarding supply. As it stands, retailers will not have a legal source of cannabis until cultivators finish their crops, which can take at least three months. Mendolia mentioned the need for alternative sourcing, suggesting that legislators may consider allowing medical cannabis companies to supply recreational retailers. Additionally, a potential compact with tribal nations could enable them to sell their cannabis flower to these retailers.
Looking ahead, an Office of Cannabis Management spokesperson informed FOX 9 that qualified applicants will receive notifications about their next steps starting tomorrow. The first licenses are expected to be distributed next month, marking a new chapter for Minnesota’s cannabis market.
