Minnesota’s Cannabis Licensing Cycle: A Path Forward for Social Equity and Market Launch

Author: Ben Ogren, Cannabis Consultant at Bridge West Consulting

Minnesota’s cannabis industry is gearing up for a fresh start as the Office of Cannabis Management (OCM) announced the launch of a standard licensing cycle for cannabis businesses. This decision follows a court ruling that paused the state’s initial preapproval lottery, which was originally scheduled for November 26, 2024. By transitioning to a more inclusive process, Minnesota aims to balance efficiency with its commitment to equity.

What Changed?

The OCM’s original plan emphasized a preapproval process for social equity applicants, providing them with early market entry opportunities. However, a Ramsey County District Court judge’s decision to stay the preapproval lottery led the OCM to pivot. Moving forward, the new licensing cycle will:

• Include both social equity and general applicants.
• Prevent further delays caused by ongoing litigation.
• Maintain some benefits for social equity applicants.

According to OCM Interim Director Charlene Briner, this approach ensures that Minnesota remains on track to launch its cannabis market while upholding the social equity principles central to the legislation.

Four cannabis business license types are limited and will be subject to lotteries in mid-2025: cultivation, manufacturing, retailer, and mezzobusiness. Pursuant to the relevant statute, OCM will issue at least the following number of these cannabis licenses to applicants:

Licenses Available for Social Equity Applicants

• Cultivator: 25
• Manufacturer: 12
• Retailer: 75
• Mezzobusiness: 50

Licenses Available for General Applicants

• Cultivator: 25
• Manufacturer: 12
• Retailer: 75
• Mezzobusiness: 50

Fifty percent of all limited licenses are reserved exclusively for social equity applicants. If you are seeking a limited license type and you have not already become social equity verified, you must obtain verification for social equity status between January 15 and January 30. Importantly, this could be the last chance to obtain social equity status in 2025.

Opportunities for Applicants

For the 648 qualified applicants from the preapproval process:

• Applications will automatically move forward in the next cycle.
• Non-lottery licenses will continue without interruption.
• Lottery-based licenses will proceed to a social equity lottery or a subsequent general lottery if not initially selected.

Applicants who received denial notices can:

• Correct application errors and participate in the new cycle.
• Opt-out and request a refund of their application fees.

Key Dates for the New Licensing Cycle

1. January 15, 2025: Verification opens for social equity applicants.
2. January 30, 2025: Social equity applicant verification window closes.
3. February 18, 2025: Applications open for all applicants.
4. March 14, 2025: License application window closes.
5. May/June 2025: Tentative lottery.
6. 2025 Lotteries: Social equity and general lotteries will occur for licenses with statutory caps.

Social Equity Commitment Remains Strong

Social equity remains a cornerstone of Minnesota’s cannabis law. The revised process provides additional support to applicants, including technical assistance, resources, and opportunities to address application deficiencies. By prioritizing fairness and transparency, the OCM aims to ensure a diverse and inclusive cannabis marketplace.

Looking Ahead

Minnesota’s updated licensing process reflects its dedication to launching a sustainable and equitable cannabis industry. As applicants prepare for the upcoming cycle, staying informed and proactive will be crucial to success.

With the new application window fast approaching, don’t miss out because you are not prepared. Contact Ben Ogren, Cannabis Consultant at Bridge West Consulting at ben@bridgewestconsulting.com if you or your team need any assistance preparing for the application. Bridge West Consulting is a full-service consulting firm offering application assistance, standard operating procedure drafting, financial modeling, and regulatory assistance. Bridge West Consulting helps clients enter, and thrive in the cannabis industry through solid foundational planning.

Contact us with any questions and for more information, visit the Minnesota Office of Cannabis Management’s website.