Are you interested in starting a cannabis business in Minnesota? The cannabis consultants at New Leaf can help you navigate the process!
This summary of Minnesota requirements and license application process outlines what it takes to win a marijuana business license. Get started today to meet the demands of consumers! Schedule a free consultation with one of our knowledgeable cannabis consultants in Minnesota.
Minnesota Cannabis Consulting & License Application Writing Experts
New Leaf Cannabis Consulting is the #1 Top Rated Cannabis Application Writing, Consulting, and Capital Fundraising one-stop-shop in the U.S. We offer a complete range of services from business model formation and planning, to state licensure, to raising capital and finding investors for the business.
New Leaf has worked with over 180 clients in over 16 different states since we opened our doors in 2015. Our success rate is well over 95% across the board. We offer more services than any of our competition.
If you need cash for your cannabis startup, and/or state and municipal license approval for a completely reasonable price, look no further than New Leaf Cannabis Consulting.
Cannabis Market Condition Overview
Business Climate and Timeline
On May 30, 2023, Governor Tim Walz signed the adult-use cannabis bill into law. The legislation created the Minnesota Office of Cannabis Management (OCM) which will oversee and regulate the adult-use and lower-potency hemp edible markets as well as the Minnesota Medical Cannabis Program (formerly overseen by the Department of Health).
Adult-use Legislation Key Points:
- Adults 21 and older will be able to legally use and possess certain amounts of cannabis in Minnesota effective Aug. 1, 2023. Note that cannabis is still illegal on federal property.
- Lower-potency THC hemp edibles will continue to be allowed.
- People 21 and older will be allowed to grow a limited amount of cannabis at home for personal use.
- Tax on cannabis product sales will be 10% in addition to state and local sales taxes. Local governments will not collect an additional cannabis-specific tax.
- Cannabis tax revenue will be split 80% for the state’s general fund and 20% to local government aid.
- Medical cannabis product sales are not taxed.
- Local governments can limit the number of cannabis retailers to one for every 12,500 residents.
- Legislation proposes that retail sales for adult use cannabis in Minnesota begin in the first quarter of 2025.
- Minnesotans will be allowed to possess and use certain amounts of cannabis and cannabis products beginning Aug. 1, 2023.
- Adults age 21 and older will be allowed to possess or transport up to 2 ounces of cannabis flower, 8 grams of concentrate and 800 milligrams of edible product (including low-potency hemp-derived product). An adult may also possess up to two pounds of cannabis flower in a private residence.
Minnesota will continue to have a Medical Cannabis Program, which will move from the Minnesota Department of Health to the Office of Cannabis Management effective March 1, 2025.
- Lower-potency hemp edibles will continue to be sold. Regulation will transfer to the Office of Cannabis Management on March 1, 2025.
- The regulatory framework will take time to develop and will require input from communities throughout the state. The OCM will continue to post additional information as it becomes available.
Real Estate & Zoning
In most states, you will need to lock down the location for business operations in the form of either a lease, lease with option to purchase, or a purchase agreement.
Most importantly, during the real estate acquisition process, your company MUST make sure that the actual location COMPLETELY adheres to state and municipal regulations regarding distance restrictions from other businesses such as a daycare or school. An example of this would be Dispensary/Retail. Most times you will not be able to locate your dispensary in a section of the city which is not zoned specifically for retail. Your dispensary location cannot be located anywhere else. Check with the Minnesota Office of Cannabis Management for locality resolutions and ordinances.
Usually the next step is Municipal/City/Township Approval. Nine times out of ten, these steps will need to take place before the full license application can be completed and submitted.