Considering a cannabis retail license in Minnesota? For those interested in establishing a mid-sized vertical operation, the cannabis dispensary license in Minnesota offers significant potential. Now is an opportune time to begin the licensing process.
What’s more, engage our Minnesota cannabis consultants to help you win a license and open a cannabis dispensary in Minnesota!
Cannabis Retail License in Minnesota
To begin with, our guide below provides an overview of the approved activities and the number of Minnesota cannabis retailer licenses available. Additionally, we summarize relevant regulations, application requirements, associated fees, and the application process itself.
Next, let’s review the authorized activities for a cannabis dispensary in Minnesota.
Approved Activities
Firstly, Minnesota licensed cannabis retailers can buy cannabis and lower-potency hemp products from other licensed cannabis businesses and sell them to customers.
Secondly, a cannabis dispensary license in Minnesota allows you to sell immature cannabis plants and seedlings.
Thirdly, a cannabis retailer in Minnesota can sell the following products:
- Drinks that do not contain alcohol,
- Books and videos about the cultivation and use of cannabis products,
- Magazines and other publications about cannabis,
- Multiple-use bags designated to carry purchased items,
- Clothing with the specific name, brand, the logo of the cannabis retailer, and
- Hemp products.
And now, let’s take a look at the number of Minnesota cannabis dispensary licenses.
Number of Cannabis Retailer Licenses Available
Under the 2024 legalization bill signed by Gov. Tim Walz, the Office of Cannabis Management (OCM) must issue one retail license per 12,500 residents, equating to at least 381 retail licenses statewide.
Furthermore, Minnesota will issue a limited number of 38 retailer licenses for social equity applicants. That said, future rounds will open additional licenses, with a lottery system determining the winners after meeting the requirements.
In addition, prepare to provide the following plans in your retail license application in order to be submitted to the lottery.
Relevant Regulations for Minnesota Cannabis Dispensary Licenses
Importantly, the OCM regulates Minnesota’s cannabis industry, with regulations including:
- 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.
- See a summary of 2024 Legislative Changes to Chapter 342 (PDF).
Also, cannabis retailer businesses seeking a retail endorsement are required to comply with local zoning ordinances. Read more regarding local governments guidance on adult-use cannabis in Minnesota.
Next, we’ll summarize the application requirements.
Application Requirements for Minnesota Cannabis Retailer License
Firstly, to apply for a cannabis retailer 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.
- Capitalization Table
- Instructions Capitalization Table (PDF)
- Preliminary Operation Plan – Retail (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)
Additionally, see the following sections in the First Draft of Proposed Cannabis Rules, issued July 31st, 2024:
- 9810.2500 (General Retail),
- 9810.2501 (Adult-Use Cannabis Retail), and
- 9810.1401 (Packaging and Labeling for Retail Sale).
Significantly, these sections outline further requirements on point-of-sale system, restricted access areas, display samples, signage, and more.
Next, we’ll review the fee structure.
Fees
For one thing, the fees associated with obtaining a Minnesota cannabis retailer license include:
- Application Fee: $2,500
- Initial License Fee: $2,500
- Renewal License Fee: $5,000 annually
Markedly, these fees are non-refundable.
How to Apply for a Minnesota Cannabis Retailer License
Next, our Minnesota cannabis consultants summarize the process to obtain a cannabis dispensary license:
- Submit your Preapproval Application: Once verified, submit your application for a pre-approval 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: Secure financing, leases, and construction to be ready when the market launches.
Fourthly, if you missed verifying your Social Equity Status, contact our cannabis consultants for alternatives. The social equity verification system opened on June 24, 2024, and closed on July 10, 2024.
Closing Remarks
Accordingly, obtaining a cannabis dispensary license in Minnesota is a complex process, but it offers a significant opportunity for small businesses to enter the cannabis market. Furthermore, by following the simple steps outlined above, and ensuring compliance with all requirements, you can position your business for success.
Finally, for more detailed guidance and assistance, consider engaging our experienced cannabis consultants at Quantum 9.
