While the rollout of Minnesota’s cannabis industry has been a winding road of twists, turns and plenty of detours, this week marked a major green light. An administrative law judge approved the Office of Cannabis Management’s rules governing the industry in our state. The judge approved the rules without changes, and those rules will go into effect later this month.

With the rules approved, the first wave of cannabis applications will soon be handed out. Meaning qualified applicants in uncapped license categories are now eligible for preliminary approval once they complete all of the application requirements such as a background check and securing local government approvals. So what comes next?

Get Out Your Map!

These folks need to start contacting cities to find a location. Cities have each established their own (and sometimes very different) rules around cannabis. It is important to understand how a city handles zoning – everything from their distance requirements to how they measure those distances – what environmental, parking and signage rules the city has established and how the city handles permits and licensing. Given that many cities also have caps on the number of cannabis businesses, it is vital that potential business owners start scouting out locations now to avoid competing traffic. Make sure you know the city’s rules and who to contact when questions arise.

The Winding Road of Cannabis

While the first cannabis licenses in Minnesota are not likely to be issued for a few months, potential businesses should be finding their properties now to start this leg of an already tedious road trip. Here is how the cannabis timeline has played out so far – with all of the pit stops and detours along the way.

May 30, 2023 – Minnesota Governor Tim Walz signs the adult-use cannabis bill into law

August 1, 2023 – Recreational use of cannabis becomes legal in Minnesota

Summer of 2024 – Office of Cannabis Management (OCM) shares its initial draft of proposed cannabis rules

January 13, 2025 – OCM posts its official draft of rules for public comment

January 13 to February 12, 2025 -- Public comment period for OCM’s proposed rules

March 14, 2025 -- Application window for cannabis businesses in Minnesota closes

March 25, 2025 -- OCM submits proposed rules to the administrative law judge for review

April 2, 2025 -- The administrative law judge approves the proposed rules

Late April 2025 – Rules will be published in the State Register and take effect, meaning social equity license applicants will be able to receive licenses once application requirements are met

Summer 2025 – Qualified applicants in the four license types whose numbers are capped in state statute (cultivator, mezzobusiness, manufacturer and retailer) will be subject to a series of lottery drawings for the distribution of these licenses

There are plenty of potential potholes to avoid when it comes to starting any business, particularly one involving highly regulated products like cannabis. If you are looking to establish a cannabis business in Minnesota, reach out to our team at Larking Hoffman to help guide you.