Minnesota Cannabis Business Consultants

Would you like to open one of the first adult-use cannabis businesses in Minnesota’s billion-dollar market? Governor Tim Walz just signed the bill into law!

In the article below, you’ll find a step-by-step guide with ten steps you can take now to win a license. But first, let’s look at the broader scope of the Minnesota cannabis program, including the application process.

Minnesota Cannabis Business Consultants

Laws and Regulations

Firstly, our Minnesota cannabis business consultants recommend that you thoroughly read the bill that was signed into law.

In addition to the bill, you should familiarize yourself with the recently created Office of Cannabis Management (“the office”). It will regulate cannabis, take enforcement actions, and promulgate the rules for your adult-use cannabis business application. Therefore, familiarize yourself with its website, news releases, and notifications.

Next, our Minnesota marijuana business consultants discuss the timeline of the adult-use program.

Timeline

Governor Tim Walz signed the adult-use cannabis bill into law on May 30, 2003. The office will develop the regulatory framework over the coming months, and establish processes and timelines to apply for licenses. Thereafter, retail sales are anticipated to begin the first quarter of 2025.

In addition, Minnesota will continue to operate its Medical Cannabis Program. The Medical Cannabis Program will move from under the control of the Department of Health to the Division of Medical Cannabis which will be housed in the office, effective March 1, 2025. Lower potency hemp businesses currently in operation will need to register with the Department of Health by Oct. 1, 2023, and eventually get licensed under the office.

Types of Marijuana Business Licenses in Minnesota

First of all, Minnesota is offering ten (10) main types of adult-use cannabis licenses, as well as four (4) medical cannabis business licenses:

1. Microbusiness
2. Mezzobusiness
3. Cultivator
4. Manufacturer
5. Retailer
6. Wholesaler
7. Transporter
8. Testing Facility
9. Event Organizer
10. Delivery Service
11. Medical Cannabis Cultivator
12. Medical Cannabis Processor
13. Medical Cannabis Retailer, and
14. Medical Cannabis Combination Business

In addition, the legislation offers lower-potency hemp edible manufacturer and retailer licenses. Refer to the appendix below for details on the permitted activities of the various Minnesota adult-use cannabis license types.

Application Process for a Cannabis Business License in Minnesota

Applications will be scored. The office will award points to each completed application for a license to operate a cannabis business in each of the following categories:

Application and Licensing Fees

The office will charge a nonrefundable application fee to cover the administrative costs of reviewing and processing applications. Licenses must be renewed annually. In addition, licenses may not be transferred.​

• Microbusiness License (application fee $500; no initial license fee; renewal license fee $2,000)
• Mezzobusiness License (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• Cultivator (application fee $10,000; initial license fee $20,000; renewal license fee $30,000)
• Manufacturer (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• Retailer (application fee $2,500; initial license fee $2,500; renewal license fee $5,000)
• Wholesaler (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• Transporter (application fee $250; initial license fee $500; renewal license fee $1,000)
• Testing Facility (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• Event Organizer (application fee $750; initial license fee $750)
• Delivery Service (application fee $250; initial license fee $500; renewal license fee $1,000)

Now, let’s look at priority applicants, since the Minnesota cannabis business license applications will be scored and merit-based.

Social Equity Status | Priority Applicants

Firstly, the bills establish a Division of Social Equity within the OCM to promote development, stability, and safety in​ communities that have experienced a disproportionately negative impact from cannabis​ prohibition.​

Secondly, social equity applicants will be scored higher. All things considered, status as a social equity applicant must account for at least 20 percent​ of the total available points. The office will determine the points awarded by considering the number or​ ownership percentage of cooperative members, officers, directors, managers, and general​ partners who qualify as social equity applicants.

In sum, an individual qualifies as a social equity priority applicant if the individual is:​

• a military veteran who lost honorable status due to a cannabis-related offense;
• a resident for the last five years of one or more subareas, such as census tracts or​ neighborhoods, that experienced a disproportionately large amount of cannabis enforcement​ as determined by the study conducted by the office; or​
• a resident for the last five years of one or more census tracts where, as reported in​ the most recently completed decennial census published by the United States Bureau of the​ Census, either:​
  • poverty rate 20% or more, or,
  • the median family income did not exceed 80 percent of statewide median family​ income or,
  • if in a metropolitan area, did not exceed the greater of 80 percent of the statewide​ median family income or 80 percent of the median family income for that metropolitan​ area.​

Also, the bills create grants to assist individuals to enter the legal cannabis market, as well as funding cannabis industry training grants and start-up assistance funds.

Next, let’s look at the subject of local control.

Local Control in Minnesota

The proposed state laws ban local municipalities from opting out from allowing cannabis businesses to locate within their jurisdictions, although they are allowed to review for compliance, and also can set limits on times of operations.

Tips for Winning Licenses (Steps 1-10) from our Minnesota Marijuana Business Consultants

Step 1: Read the Laws and Regulations

First, to win a cannabis business license in Minnesota, you should acquaint yourself with the current law, the 12th engrossment of HF0100. Moreover, doing so will help you understand the types of licenses available, as well as the application process and operational requirements.

Secondly, to become a successful marijuana business owner, we suggest you regularly visit the Office of Cannabis Management. This state agency will license and regulate all Minnesota adult-use cannabis businesses, as well as the Minnesota Medical Cannabis Program (beginning by March 2025).

Finally, contact our Minnesota cannabis consultants and we’ll keep you informed with the latest.

Step 2: Choose a license type

The legislation creates more than a dozen types of licenses for growing, selling, transporting and testing cannabis. In addition, special event and on-site consumption licenses will be offered. Read summaries below for authorized activities for the different types of adult-use marijuana business licenses in Minnesota.

Step 3: Engage our Minnesota cannabis business consultants

Allow us to manage your project from pre-licensure to fully approved and operational. Our cannabis business consultants in Minnesota can manage all aspects of your application, including:

• Team recruitment,
• Raising capital,
• Real estate selection,
• Facility design,
• Technical writing,
• Operational support, 
• Employee education and training, and more.

In any event, reach out for our consulting services to learn more.

Step 4: Form a business entity

At this beginning stage, you should form a business entity, such as an LLC or an S-corp.

You can learn more about forming a business entity in Minnesota by visiting the Minnesota Department of Employment and Economic Development. If you are unsure what type of business entity would work best for your proposed cannabis operations, engage our consultants or work with an attorney to choose the best structure for your business plans.

Next, let’s look at the importance of building a strong team.

Step 5: Build a team with the help of our Minnesota cannabis business consultants

The office will scrutinize the background and qualifications of each member of your team in order to ensure proper safety and compliance. Your team should expertise related to both business management and the wide variety of cannabis business specific operations.

With our talent acquisition services, our Minnesota cannabis business consultants provide you a deep network of industry-leading experts and help you put together the ideal team for the approval of your business license.

Reach out today for more information about our personalized business applications and consulting services.

Step 6: Develop a business plan with the help of our Minnesota marijuana business consultants

Firstly, a comprehensive business plan is critical for you to raise capital for your cannabis business application in Minnesota. The application process will be highly competitive.

Your business plans should show, at a minimum:

• the expected size of the business,
• anticipated growth,
• methods of record keeping,
• knowledge and experience of the applicant and any officer, director, manager, and general partner,
• environmental plan, and
• all other relevant financial and operational components.

Above all, make sure you have crafted a viable business model. It shows the office that your business is well-planned and sustainable. Plus, it will help you to raise capital. Engage our Minnesota cannabis business planning services. We’ll help you write the best business plan that aligns with your mission statements, lines out your strategies and budget projections, and provides your market analysis and pro forma financial statements.

Step 7: Raise Capital with the help of our Minnesota marijuana business consultants

Although the license application fees themselves may seem minor in comparison to other states, starting a cannabis business in Minnesota is a costly endeavor. In addition to annual license fees, the start-up costs alone can easily run you and your team into the millions.

Now is a good time to get your financials in order. You’ll have to show the sources and structure for all your financing in the license application. Plus, you need to show that your financial plans can carry your newly licensed cannabis business to sustainable and productive fruition.

Finally, choosing the right location may be crucial to ensuring your capital raising is put to the best use.

Step 8: Choose a location with the help of our Minnesota cannabis business consultants

As you’re raising capital, research locations for your cannabis business. It can take months to secure a location, and you want to make sure it’s the right location for your proposed operations. 

Additionally, check with the municipality and make sure your proposed location is compliant and zoned correctly.

Remember, municipalities in Minnesota cannot opt-out after the new law, although they can control operational hours and locations to a certain extent. Still, when you’ve submitted your license application to the office, the agency will send a copy to the municipality for affirmation that you are compliant with local zoning, as well as fire and building codes.

So, be sure to do your facility location research well in advance. If you are unsure of the best location, reach out to our Minnesota cannabis business consultants.

Next, seek letters of support from appropriate local authorities and community organizations.

Step 9: Garner local support

Most important, showing proof of local support will make your application stick out from the multitude and help you win a license. Do your best to obtain a letter of support from the municipality and any local organizations.

Enlist our Minnesota cannabis business consultants for building local connections in your prospective location. Also, we can guide the technical writing of your application from start to finish.

Step 10: Write and submit an application with our Minnesota Marijuana Business Consultants

At last, you can begin writing and compiling portions of your Minnesota cannabis license application. Above, we listed some of the sections of the application that you will have to submit, where we have also detailed the sections that are priority scored.

In addition, you will need to include your:

• applicant information, including:
  • name, address, date(s) of birth of applicant(s),
  • disclosure of ownership and control,
  • bankruptcy filing history for any officer, director, manager, and general partner of the applicant business,
  • diagram of premises, including security,
  • address and legal property description of the business, and
  • proof of trade name registration.

Also, the application includes requirements for the following:

• criminal history check,
• operation plan to ensure compliance,
• labor peace agreement signed attestation by a bona fide labor organization,
• commitments made including how you will maintain your labor peace agreement,
• certification of compliance with the cannabis business ownership and operation requirements,
• identification of controlling persons or managerial employees as responsible agent to the office,
• statement of agreement to respond to the office’s supplemental requests, and
• disclosure of ownership and control.

Another key point, the office will score your application based on merit and compliance. You can easily end up writing hundreds of pages of technical narratives.

Lastly, allow our Minnesota cannabis business consultants to write your application for you. We have one of the highest success rates in the industry for winning licenses (90.12%). We thrive in extremely competitive markets, which will certainly be the case for adult-use cannabis business licenses in Minnesota.

Contact our consulting firm in Minnesota for more information about our cannabis license application services.

Conclusions from our Minnesota Cannabis Business Consultants

Lastly, if you want to open a cannabis business in Minnesota, understand that you will be competing against multi-state operators. In addition, multiple cannabis and legal experts will vie fiercely for these limited licensing opportunities.

In conclusion, our Minnesota cannabis business consultants are highly experienced at winning cannabis licenses in extremely competitive markets, such as Minnesota’s adult-use license market. We have a track record to prove it, as shown in this video. Save yourself some time and money and engage our services. Reach out to the cannabis consultants at Quantum 9 for a free consultation.

APPENDIX | SUPPLEMENTAL INFORMATION

Below is supplemental information that our Minnesota cannabis business consultants included for your reference. In addition, follow this link if you want to learn about the economic benefits of regulating cannabis in Minnesota.

Description of each Minnesota cannabis business license

Municipal submissions

Basically, no requirement exists for a separate municipal submission.

However, upon receipt of your completed application and fee, the office will forward the copy to the municipality where your business intends to operate. The municipality will then send the office a form of certification of compliance with local zoning ordinance, and compliance with state fire code and building code. So, make sure you’ve chosen the correct facility location and are in compliance.

Within 90 days of receipt of a completed application, the office will issue the appropriate license or send notice of rejections with specific reasons for nonapproval.

Expungable Under the Law

The legislation call for automatic expungement of criminal records for people previously convicted of low-level cannabis offenses, as well as proactively eliminating criminal penalties for cannabis possession. The Cannabis Expungement Board will review felonies for expungement or resentencing.

Tax Rate Imposed on Cannabis

Ownership Limitations

Articles related to Cannabis Consulting in Minnesota

• The Economic Benefits of Regulating Cannabis in Minnesota
• Upcoming Cannabis License Application Opportunities
• Florida Cannabis Consultants
• Michigan Marijuana License Consulting
• Missouri Cannabis Business Consultants