Minnesota Office of Cannabis Management may begin accepting adult-use cannabis applications sooner than expected
By Jacob Irving, J.D.
February 13, 2024
On Jan. 30, 2024, the Minnesota
Office of Cannabis Management (OCM) provided a public update on the office’s rulemaking and application process for the adult-use cannabis market in Minnesota. At the update meeting, the OCM indicated that they were suggesting several changes to the Minnesota adult-use cannabis legal framework.
One of those proposals is to allow the OCM to accept and process social equity licenses under temporary regulations as soon as the end of the summer of 2024.
The new suggestions of the OCM will still need legislative action this session to become effective but demonstrate the office's continued commitment to the swift establishment of a robust and craft Minnesota adult-use cannabis market — which is consistent with the goals of the Minnesota legislature.
For both social equity and nonsocial equity persons looking to get involved in the cannabis industry, it will be critically important to monitor changes to the law this legislative session. They should be prepared for a licensing window that could open before the timeline previously estimated by the OCM of the first quarter of 2025.
Other changes suggested by the OCM for discussion in this session included:
- Decreasing the requirements to be a social equity candidate from being 100% owned by qualifying social equity candidates to 65% to increase capital availability for social equity licensees.
- The OCM is looking to create a provisional application process allowing applicants to apply for a first level of approval for a general regional area without a specific property locked down. If approved, the new format would be provisional application to OCM, then to local approval, then back to OCM for final approval (property and local approval is needed for this step).If approved, these changes could significantly change the application dynamics and must be monitored closely.
Early licensing for a first-mover advantage to social equity candidates and the ability to apply for a license without an exact property may limit the number of available licenses or qualifying properties that are available for those who miss the first licensing window.
For entrepreneurs interested in the Minnesota cannabis space, it is essential to start working now to put your company in the best position to launch a successful business in a changing regulatory environment.
Jacob Irving, J.D., is vice president at Bridge West Consulting.
