SAINT PAUL, Minnesota — Certain Minnesotans, including military veterans and people convicted of marijuana possession before legalization, can apply for the state’s first marijuana business licenses starting next month in a move aimed at giving entrepreneurs a head start on getting the legal market ready to launch in 2025.
The Minnesota Legislature this year approved a “pre-approval” licensing process for the Bureau of Cannabis Control, allowing regulators to give early permission to some companies to work on their plans while the rulemaking process continues.
“We want to create a first-mover advantage to help the cannabis industry succeed,” said Charlene Breiner, interim director of the Cannabis Bureau. He spoke about the plans in March. “We believe in the social equality opportunities that the law creates, and we want to give people the opportunity to really start doing the up-front work that’s required to set up a very complex business.”
Who can apply for an early “pre-approved” license?
To qualify, Minnesotans must meet the criteria of a “social equity applicant,” which could include military veterans, beginning farmers, residents of high-poverty areas and people who were convicted of certain marijuana possession or sale offenses before lawmakers legalized it last year.
State regulators first review the application to ensure that the individual is qualified and has provided all the information required by law, including a detailed plan for business operations, employee training, security, and general experience in the industry.
If applicants pass the preliminary screening, they can apply for an early license, after which license recipients who meet the criteria are randomly selected through a lottery. The provision sparked fierce debate in Congress this year.
Nick Rahn, owner of The Warrior’s Garden, which sells hemp-derived THC and CBD products, is one of 327,000 Minnesota veterans who are considered social equality applicants. He’s eager to get a pre-approval license and plans to apply this summer.
“I’m a veteran, so being able to apply early is great, especially since we’re already open and we’re going to be a cannabis store. It makes me feel a lot better to get my license early and be ready for January 1st when everything starts rolling out.”
How many licenses are available?
State law places a cap on the number of licenses that can be offered through the preapproval process.
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Cannabis microbusinesses: 100
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Cannabis mezzo business: 25
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Cannabis growers: 13
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Cannabis Manufacturers: 6
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Cannabis stores (pharmacies): 38
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Cannabis Wholesalers: 20
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Cannabis transporter: 20
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Cannabis testing: 50
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Cannabis delivery: 10
The pre-approved licenses don’t mean retailers can sell marijuana flower or products any earlier than rulemaking is completed and the market officially opens next year. Some growers could start growing commercial crops this fall if they get additional approval from local governments and apply under existing rules for medical marijuana.
When can I apply for a cannabis business license?
The Bureau of Cannabis Control will begin accepting applications for review to determine whether they qualify as social equity applicants starting June 24, according to the regulator’s timeline.
The portal for applying for pre-approval of the license will then open on July 24 and close on August 12. The office will then notify applicants if they are selected.
Applications for licenses for members of the public who do not meet the social equity criteria are scheduled to open next year.
