Cannabis Status: Opening
Pre-approval Licenses Open July 24, 2024
The forthcoming adult-use cannabis licensing opportunities in Minnesota represent a monumental chance for entrepreneurs to enter a burgeoning market. With licenses slated to become available in 2025, Minnesota presents a promising landscape, especially with its significantly lower tax rate of just 10%, a competitive edge compared to other states.
Moreover, the abundance of over 300 retail licenses up for grabs indicates ample room for growth and competition. What further sweetens the deal is the state’s inclusive approach, with every jurisdiction welcoming cannabis businesses and a streamlined application process thanks to more unified guidelines statewide. This cohesion promises to ease entry barriers and foster a more accessible environment for aspiring entrepreneurs to capitalize on Minnesota’s evolving cannabis industry.
Name: Minnesota
Population: 5,717,000
Household Median Income: $90,390
Cannabis Uses: Microbusiness, Mezzobusiness, Cultivator, Manufacturer, Retailer, Wholesaler, Transporter, Testing Facility, Event Organizer, Delivery Service, Low Potency Hemp Edible Manufacturer, Low Potency Hemp Retailer, Medical Cultivator, Medical Processor, Medical Retailer, Medical Cannabis Combination Business
State Cannabis Overview: The Minnesota State House and Senate recently approved a significant amendment to the state’s cannabis program, introducing major changes designed to expedite and enhance the process for social equity candidates. One of the most pivotal adjustments is the acceleration of the pre-approval process for these candidates, with the application period for pre-approval licenses now set to open from July 24 to August 12. During this period, Minnesota’s cannabis agency will begin verifying social equity applicants and assessing their financial and operational readiness to run a cannabis business. If all goes according to plan, the first lottery to distribute social equity licenses is scheduled for the fall. This adjustment allows cultivators to begin their operations in 2024, much earlier than the previously set spring 2025 timeline, which is aimed at accelerating production to meet market demands by spring 2025.
Additional reforms include a transition from a purely points-based system to a “vetted” lottery for distributing cultivation and retail licenses, and early permission for some social equity applicants to start cultivation this fall. The new rules also provide for medical cannabis patients to designate caregivers who can grow cannabis on their behalf and implement safeguards against financial exploitation of social-equity applicants by third parties. The number of licenses to be issued in the initial industry rollout next spring will be capped to ensure controlled growth.
