STREET. PAUL, Minn.: Certain Minnesotans, such as veterans and people convicted of possessing cannabis before it became legal, can apply next month for the first cannabis business licenses designed to give entrepreneurs a head start to get the legal market ready to launch in 2025.
This year, the Minnesota Legislature approved a “pre-approval” licensing process for the Bureau of Cannabis Management, allowing regulators to give some businesses the green light sooner rather than later to plan accordingly, even while The standards development process continues.
“We want to create an initiative advantage to support the success of the cannabis industry,” Charlene Briner, acting director of the cannabis office, said in March of the plan. “We believe in the opportunities for social equity that the law creates. We also want to give people the opportunity to start doing some of the legwork that goes into building a very complicated business.”
Who can apply for “pre-approved” advance licenses?
To qualify, Minnesotans must meet the criteria of a “social equity applicant.” They include veterans, farmers just beginning their careers in agriculture, residents of high-poverty neighborhoods and people convicted of certain possession or sale of cannabis before lawmakers legalized it last year, among others.
State regulators will first review applications to ensure that people qualify and have provided all necessary information under the statute, including detailed plans for operating the business, employee training, safety and general industry experience.
If applicants pass this prior selection process, they can apply for that early license. There will then be a lottery in which licensees who meet the criteria will be chosen at random, a provision that sparked fierce debate in the Capitol this year.
Nick Rahn, owner of The Warrior’s Garden that sells hemp-derived THC and CBD products, is among the 327,000 Minnesota veterans considered social equity applicants. He is eager to obtain a pre-approved license and intends to apply for one this summer.
“Since I’m a veteran, I can apply early, which is great, especially since we are already open and intend to be a cannabis dispensary. It will make me feel a lot better if we get the license early so we can be ready for January 1, when everything gets going.
How many of these licenses are available?
State law limits the number of licenses offered in the pre-approval process:
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Cannabis microbusinesses: 100
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Cannabis mezbusinesses: 25
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Cannabis growers: 13
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Cannabis manufacturers: 6
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Cannabis retailers (dispensaries): 38
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Cannabis wholesalers: 20
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Cannabis transporter: 20
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Cannabis tests: 50
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Cannabis delivery: 10
Getting a pre-approved license doesn’t mean retail stores can sell marijuana flowers and products before regulations are completed and the market officially launches next year. Some growers can begin growing commercial crops this fall if they get additional approval from local governments and apply the rules already in place for medical cannabis.
When can you apply for a cannabis business license?
The Bureau of Cannabis Management is accepting applications for evaluation to determine whether they qualify as social equity applicants starting June 24, according to a schedule from regulators.
Then, the portal to request a license pre-approval will open on July 24 and close on August 12. The office will then notify applicants if they have been selected.
License applications for the general public that do not meet social equity criteria will open next year.
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Carolina Cummings
Keynote USA
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