The rules for adult-use cannabis are expected to be adopted near the end of the first quarter, after which, qualified applicants in uncapped license categories can receive preliminary approval and begin the site registration process.
Licensing timeline update
The application window for cannabis businesses closed on March 14. The rules for adult-use cannabis are expected to be adopted near the end of the first quarter. Once finalized, qualified applicants in uncapped license categories will be eligible to receive preliminary approval and begin the site registration process. This means applicants for a cannabis microbusiness license may soon seek zoning compliance certification and local retail registration in the weeks and months after the rules are adopted.
To assist partners in understanding the licensing process, the Office of Cannabis Management (OCM) has created a visual overview of the application process as required by law.
Access an overview of the steps involved in the cannabis licensing application process (pdf).
City participation in the licensing process
Cities play an important role in the licensing process, and OCM needs cities to complete the Delegation and Contact Form. This form ensures cities are prepared to handle:
- Zoning compliance certification.
- Local retail registration for businesses conducting retail sales.
Cannabis retailers must obtain both a state-issued license and a local retail registration. The form captures contact information for zoning authority representatives, and informs OCM of any decisions to delegate local retail registration authority.
Any city with zoning authority over proposed cannabis businesses is responsible for managing zoning compliance certifications for proposed cannabis businesses within its jurisdiction. These cities must register for an account in Accela, OCM's licensing system. OCM has provided a guide, Registering for Accela for Zoning Compliance Certification (pdf), to help cities complete the process.
Municipal licensing bill
On March 18, The House Commerce Finance and Policy Committee heard a bill, HF 1634 (Rep. Zack Stephenson, DFL-Coon Rapids) that would allow cities to hold a lower-potency hemp edible retailer license and a municipal cannabis store license. Currently, the 2023 cannabis law limits entities to holding only one type of license.
Many cities have successful municipal liquor stores and value the ability to sell edible cannabinoid products at these stores. However, some cities have discovered they would lose the ability to sell these products at a municipal liquor store if they open a municipal cannabis store, because they can only hold one license. The proposed bill seeks to address this issue.
Tribal compacting
The 2023 law also requires the governor to establish cannabis policy agreements with Minnesota's 11 Tribal Nations. This topic has recently gained attention, and Gov. Tim Walz's office is actively engaged in negotiations. These discussions remain private between each tribal nation and the governor.
Reports suggest that tribal nations may be allowed to operate cannabis retailers in locations across the state without participating in the OCM licensing process.
Source: League of Minnesota Cities