Now What? Next Steps for Cannabis Businesses in Minnesota
The Minnesota Office of Cannabis Management’s (OCM) cannabis business application period for general and social equity applicants closed on March 16th—two days later than originally planned due to issues with the Accela submission portal. Applicants who submitted materials received two emails from OCM: one confirming payment and another confirming application submission. From here, applicants need to monitor the contact details they provided to OCM for further communication.
Request for More Information
The review process for this application period may include a Request for More Information (RFMI) if OCM determines that the additional details are necessary to review or process the application. If the applicant does not provide the requested information within 14 calendar days, OCM may deny the application. If denied, OCM will notify the applicant of the denial and the basis for the denial, and the applicant may seek a one-time reconsideration. Once qualified, an applicant can move onto the lottery stage or to seeking preliminary approval, depending on the license type.
Estimated Timeline
- March-May: OCM evaluation of capped license applications (Mezzobusiness, Cultivator, Manufacturer, Retailer)
- April: Final Regulations
- May-June: Lotteries for capped licenses
- July-September: OCM evaluation of uncapped license applications (Microbusiness, Wholesaler, Transporter, Testing, Delivery Service, and Medical Combination)
- Fall 2025: Event Organizer license application
- Fall 2025: Hemp license application period (Lower-Potency Hemp Edible Manufacturer and Lower-Potency Hemp Edible Retailer)
Obtaining Preliminary Application Approval
Being selected in a lottery or having an application meet qualified standards does not mean a qualified applicant has received preliminary application approval yet. For a qualified applicant to receive preliminary approval, OCM must receive and approve the results of a third-party background check and a labor peace agreement attestation signed by a bona fide labor organization.
Background Checks
If you move forward in the process to receive preliminary application approval, you’ll need to take several steps to obtain a cannabis business license. Qualified applicants with preliminary application approval have 18 months from the time of preliminary approval or from the time of final adoption of rules, whichever is later, to obtain a cannabis business license.
First, a background check will be required for any license applicant, true party of interest, and cannabis workers employed by license holders. Please note that the office does not need your background check until: 1) your application is moved to qualified applicant status if you are applying for an uncapped license or 2) you have been selected in a lottery for a capped license type. The office does not intend to review any background checks submitted by applicants prior to these points. If qualified or selected, applicants will need to find a third-party background check agency or background screening company. Conveniently, OCM has compiled a list of third-party agencies that have attested to meeting the statutory requirements.
Labor Peace Agreement
Qualified applicants must provide OCM with documentation of an attestation signed by a bona fide labor organization stating that the qualified applicant has entered into a labor peace agreement. This document must be submitted by the applicant through Accela. The documentation required includes either: An official letter from a bona fide organization signed by the bona fide labor organization attesting the qualified applicant has entered into a labor peace agreement; or a copy of the labor peace agreement that is signed by the bona fide labor organization.
Converting from Preliminary Approval to Licensure
Qualified applicants seeking to convert preliminary application approval to a cannabis business license will be required to:
1) Submit the site location for their cannabis business.
2) Update their application with finalized or changed plans, including the following, and any other documents required following the adoption of rules:
- Security Plan
- SOP: Quality Assurance
- SOP: Inventory Control, Storage and Diversion Prevention
- SOP: Accounting and Tax Compliance
- Operation Plan
- Cultivation Plan (for cultivator license types or medical cannabis combination business, microbusiness, and mezzobusiness licenses seeking a cultivation endorsement)
- Disclosure of Ownership and Control
- Capitalization Table
3) Receive zoning compliance certification from the local government in which they wish to operate their business that they compliant with all relevant local zoning ordinances and state fire code and building code.
4) Schedule and pass a site inspection conducted by OCM.
5) Pay the license fee in Accela.
6) For retailers, medical cannabis combination businesses, mezzobusinesses and microbusinesses with retail operations: obtain a local retail registration from their local government.
State Funding Opportunities
Check out funding programs through Minnesota agencies, such as the Dual Training Pipeline (deadline: 4:00 PM CDT on April 15th), which is offering up to $150,000 per grantee. Interested applicants must submit a User Registration by April 9th via the Grants Management System!
Preparing your Plans with Canna Advisors
Applicants should use the time before final regulations and between application steps to:
- Build relationships with local governments
- Secure a location (and retail registration, if applicable)
- Line up funding sources
- Refine their shared vision, business plan, and projected financials
Canna Advisors can help you revise your drafted materials, prepare final plans, and strategize next steps. Reach out to us to get your cannabis business started right.