Minnesota Cannabis Update As Industry Prepares To Launch Retail Sales

Adults in Minnesota can legally possess and use recreational cannabis though the state has not yet launched its retail market, which is planned for next year.

To that end, more than 3,100 licenses for social equity were pre-approved, and the Office of Cannabis Management (OCM) shared a 110-page document that sets the ground rules for every cannabis and hemp-related private activity.

Surge In Cannabis Business Interest And Pre-Approved Licenses

Minnesota, once among the most restrictive medical marijuana markets, is now experiencing a surge in interest from small entrepreneurs. More than 3,100 prospective business owners have been pre-approved for recreational business permits, according to Minnesota Public Radio. The initial screening window opened in June for social equity candidates, followed by another for full license applications on July 24.

The market has drawn thousands more interested in setting up shop, as reported by Charlene Briner, interim director of the OCM. The next step involves a lottery to narrow down the applicants, though the timing and number of permits to be awarded remain unclear. A study by OCM suggested at least 381 dispensaries will be needed to supply current demand.

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OCM Draft Rules

The OCM has released new draft rules and regulations to prepare for next year’s launch. They cover the adult-use, medical and hemp-derived cannabis markets.

Cannabis businesses can only hold one license per category. Testing facilities can hold up to three. Disqualifying offenses for license holders and applicants include specific criminal and civil offenses. Main chapters discuss details on operations and compliance, worker safety and training, product samples and storage, environmental standards, traceability and packaging and labeling, Among other things.

New Restrictions On Cannabis Use In Multi-Family Housing

As of July 1, updated laws now ban smoking or vaping cannabis in multifamily housing for all but registered medical marijuana patients. Minnesota's rules for smoking and vaping cannabis remain among the nation's most permissive, generally allowing public consumption where tobacco smoking is permitted. The restriction was initially set to take effect in March 2025, reported MinnPost.

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