As Minnesota’s cannabis industry begins to roll out, the mezzobusiness license presents a significant opportunity for those looking to establish a mid-sized vertical operation. This guide provides a comprehensive overview of what a cannabis mezzobusiness license in Minnesota entails, the activities it permits, the number of licenses available, relevant regulations, application requirements, associated fees, and the application process.
Cannabis Mezzobusiness License in Minnesota
Approved Activities
A mezzobusiness license in Minnesota is designed for cannabis operators who wish to engage in activities on a larger scale than a microbusiness but with more flexibility than a traditional large-scale operation. This license allows a broader range of operations and the potential to manage multiple retail locations.
The mezzobusiness license authorizes the following activities:
- Cultivation: You can cultivate up to 15,000 square feet of indoor plant canopy or one acre of outdoor space. The state may allow expansions to meet market demands, with the potential to grow up to three acres outdoors.
- Processing: This includes producing concentrates and other products from cannabis and hemp plants, as well as packaging and selling these products.
- Retail Sales: Licensees can operate up to three dispensary locations, offering cannabis products directly to consumers.
- On-Premises Consumption: Similar to microbusinesses, mezzobusinesses may eventually allow on-premises consumption, particularly of edibles, after final rules are established.
Number of Cannabis Mezzobusiness Licenses Available
Minnesota has allocated a limited number of cannabis mezzobusiness licenses during the initial preapproval phase:
- 25 Mezzobusiness Licenses will be issued during this phase, with more potentially available in future rounds.
This preapproval phase prioritizes social equity applicants, allowing them a competitive edge in the burgeoning market.
Relevant Regulations for Minnesota Cannabis Mezzobusiness Licenses
The Office of Cannabis Management (OCM) regulates Minnesota’s cannabis industry. Key regulations for Minnesota cannabis mezzobusiness licenses include:
- Social Equity Requirements: At least 65% ownership by verified social equity applicants. Learn more about Minnesota’s social equity verification process.
- Security Measures: Detailed security plans to prevent unlawful diversion.
- Compliance with State Laws: Adherence to Minnesota Statutes Chapter 342 and other relevant laws.
Application Requirements for Minnesota Cannabis Mezzobusiness License
To apply for a cannabis mezzobusiness license in Minnesota, you need to prepare several documents, including:
- Disclosure of Ownership and Control (PDF)
- See information about how to sign PDF documents. This attachment requires either a digital signature or a wet signature (completed with a pen on a printed document, then the signer scans the document into a digital form).
- Capitalization Table (Excel)
- Instructions Capitalization Table (PDF)
- Preliminary Security Plan (PDF)
- Preliminary Business Plan (PDF)
- Attestation of Labor Peace Agreement (PDF) (Updated July 24)
- Preliminary Training and Education Plan for Employees (PDF)
- Preliminary SOP Quality Assurance (PDF)
- Preliminary SOP Inventory Control, Storage, and Diversion Prevention (PDF)
- Preliminary SOP Accounting and Tax Compliance (PDF)
- Preliminary Operations Plan – Microbusiness or Mezzobusiness (PDF)
- Cultivation Plan (PDF) (mandatory for cultivator license types or micro/mezzo licenses seeking a cultivation endorsement)
Fees
The fees associated with obtaining a Minnesota marijuana mezzobusiness license include:
- Application Fee: $5,000
- Initial License Fee: $5,000
- Renewal License Fee: $10,000 annually
How to Apply for a Minnesota Cannabis Mezzobusiness License
Below our Minnesota cannabis consultants summarize how to apply for a cannabis mezzobusiness license:
- Verify Social Equity Status: Submit documents online to verify your eligibility. The Minnesota social equity verification system opened on June 24, 2024, and closes on July 10, 2024.
- Submit Preapproval Application: Once verified, submit your application for a preapproval license between July 24, 2024, and August 12, 2024.
- Enter the Lottery: Verified and approved applications will enter a lottery in September 2024.
- Prepare for Final Approval: If selected, prepare to finalize your business operations. This includes securing financing, leases, and construction to be ready when the market launches.
Closing Remarks
Securing a cannabis mezzobusiness license in Minnesota can be a complex process, but it offers a significant opportunity for small businesses to enter the cannabis market. By following the outlined steps and ensuring compliance with all requirements, you can position your business for success.
For more detailed guidance and assistance, consider engaging with experienced cannabis consultants like Quantum 9.
