Are you considering starting a cannabis microbusiness in Minnesota? With the state’s recent legalization of recreational cannabis and the introduction of social equity programs, now is a great time to understand the licensing process and requirements.
This guide provides an overview of the approved activities, number of licenses available, relevant regulations, application requirements, fees, and the application process.
Cannabis Microbusiness License in Minnesota
Approved Activities
You may be wondering, “what is a cannabis microbusiness in Minnesota?”
Well, a cannabis microbusiness license in Minnesota permits you to conduct the following activities:
- Cultivation: Growing cannabis plants up to 5,000 square feet indoors or a half-acre outdoors.
- Processing: Making concentrates and other products from cannabis and hemp plants.
- Retail Sales: Selling cannabis products, including flower and edibles, directly to consumers.
- On-Premises Consumption: Allowing the consumption of edibles on the business premises (after final rules are adopted).
Number of Cannabis Microbusiness Licenses Available
For the initial preapproval phase, Minnesota will issue a limited number of microbusiness licenses:
- 100 Microbusiness Licenses
This preapproval phase is designed to give social equity applicants a head start. Additional licenses will be available in future rounds.
Relevant Regulations for Minnesota Cannabis Microbusiness Licenses
The Office of Cannabis Management (OCM) regulates Minnesota’s cannabis industry. Key regulations for microbusiness licenses include:
- Social Equity Requirements: At least 65% ownership by verified social equity applicants (click here to 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 Microbusiness License
To apply for a cannabis microbusiness 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 cannabis microbusiness license include:
- Application Fee: $500
- Initial License Fee: No initial license fee
- Renewal License Fee: $2,000 annually
How to Apply for a Minnesota Cannabis Microbusiness License
Below our Minnesota cannabis consultants summarize how to apply for a cannabis microbusiness license:
- Verify Social Equity Status: Submit documents online to verify your eligibility. The verification system opens 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 microbusiness 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.
