Frequently Asked Questions

No, you are only required to meet one criterion.

Yes. Social equity verification is a prerequisite to applying for license preapproval.

No, there are no time restrictions for convictions prior to May 1, 2023, to be considered for social equity status.

Email minnesota@creativeservices.com for support.

Email minnesota@creativeservices.com for support.

Look for an email from donotreply@creativeservices.com in your inbox.

No. Individuals interested in being verified as a social equity applicant should only submit one application for consideration. You are only required to meet one criterion to qualify. You are welcome to submit documentation for more than one criterion under the one application, but only one criterion is required to be met to qualify as a social equity applicant.

No. The Office of Cannabis Management does not charge a fee to complete the social equity verification process.

No. Minnesota Statutes section 342.17 provides the criteria for those who may qualify as a social equity applicant, which does not include a residency requirement.

The statutory language uses the term “ownership and control,” which would include both financial interest and governance control. The statutory requirement that 65% of the controlling ownership of the business entity be controlled by persons verified as social equity applicants was created to allow social equity applicants to access capital not held by traditional banks. The legislature also created a true party of interest section to help prevent the use of straw applicants to subvert Minnesota’s commitment to an equitable market. Corporate structures can be complex, and the office cannot provide a comprehensive list of structures that would meet the standards in the statute. Applicants should note that increasing the complexity and nuance of corporate structures may increase the chances of a lengthy review or regulatory challenges. To that end, being approached by an investor offering a complex ownership or debt structure as part of the investment may be a red flag for predatory practices.

Yes, this is true. OCM will not charge a second application fee for a retained application that is considered in a subsequent application round. Minnesota Statutes Chapter 121, section 148, subdivision 12, requires OCM to retain the applications of applicants not selected in the lottery process during the preapproval round for up to one year. These retained applications will be subject to Minnesota Statutes, section 342.14, subdivision 9, which states OCM must consider a retained application during any licensing periods that begin within the year and, except as otherwise provided in the subdivision, OCM must treat a retained application as if the application were submitted during the licensing period. OCM may request additional information and an applicant may amend their application during this time.

OCM has a list of documents on its website that a person can provide for social equity verification under the various criteria. See Social Equity Qualifications. Applicants can submit as much supporting material as they would like for their social equity verification. The social equity applicant verification process is distinct from the criminal background check required during the application process for licensure.

Yes.

If you choose to keep your current application in the next cycle, it will be considered submitted as it currently exists. If you continue to the next licensing cycle, OCM will send you a request for more information to give you the opportunity to potentially correct reasons your application was denied.

Due to new litigation and the district court’s decision to stay the license preapproval lottery on Nov. 26, OCM is no longer able to hold a license preapproval lottery in advance of our next round of licensing. As such, the early-mover advantages offered by the expedited license preapproval process envisioned by the Legislature no longer exist . 

We are moving on to the standard social equity and general licensing that is called for in Minnesota Statutes, Chapter 342.

We are working with qualified social equity applicants who advanced to the license preapproval lottery to ensure they are promptly integrated into the upcoming licensing cycle with no additional application fee and no requirement to resubmit an application. This will preserve their opportunity to lead the launch of Minnesota’s cannabis market.

We are communicating with applicants who received denial notices to inform them of options and next steps available to them. If they fully address the reasons that their application was denied, these applicants will have the opportunity to move forward in general licensing, which includes a lottery specifically for social equity applicants. Alternately, they may choose to discontinue their participation in the next cycle and request a refund for their application fee.

At this point, all applicants with errors in their preapproval applications will have a chance to fix them. The office’s top priority is to issue licenses and launch Minnesota’s adult-use cannabis program promptly, while also preserving at least some of the benefit the legislature intended for social equity applicants.

Yes. You would need to submit a new application and pay an application fee if you withdraw your application for the next cycle.

You would have to withdraw your current application for license preapproval, ask for a refund by Jan. 10, and then submit a new application. Be careful not to violate true party of interest for any application.

You would have to withdraw your current application for license preapproval, ask for a refund by Jan. 10, and then submit a new application. Be careful not to violate true party of interest for any application.

We’ve always said that it will take several years for the market to fully mature and for production to match demand. The addition of early cultivation in the license preapproval process was always unlikely to provide sufficient supply to meet market demand. The microbusiness license type (which includes the ability to cultivate) is not capped in the standard licensing cycle, and there are 194 qualified microbusinesses among the 648 qualified applicants who are automatically advancing. It is entirely conceivable that rules will be adopted prior to our next lottery date, which would mean those qualified microbusinesses could receive a license and begin cultivation before summer. Finally, we are close to executing compacts with several Tribal nations that will likely have cultivation capacity to serve the commercial market.

A person identified as a true party of interest may not apply for multiple license types, except that a true party of interest may be affiliated with the following combinations of applications: 

• A single cannabis cultivator license and a single cannabis manufacturer license. 
• A single cannabis wholesaler license and a single cannabis transporter license. 
• A single cannabis wholesaler license and a single cannabis delivery service license. 
• A single cannabis transporter license and single cannabis delivery service license. 
• A single cannabis wholesaler license, a single transporter license, and a single cannabis delivery service license. 
• A single cannabis retailer license and a single cannabis delivery service license.

Trade name registration will be documented through proof of registration with the Secretary of State for the company name with assumed name or DBA on the registration itself.

If the applicant is an LLC, it should submit its Certificate of Organization from the Minnesota Secretary of State, and if it uses a DBA, it should also submit its Assumed Name filing that was made with the Secretary of State.

Statute requires OCM to consider if the current number of licenses available are consistent with the goals identified by statute beginning July 1, 2026. This could potentially include allowances for adjustments between license types not otherwise allowed by existing license type caps.

For individuals without a Social Security number, the applicant should note in the “Social Security Number (Individuals Only)” column that the individual is a “non-US Citizen.” The applicant should not input a number that may serve as a Social Security equivalent in their country of citizenship.

A physical premises is not required for license preapproval and provides the applicant no advantage in the review process. However, it is necessary to read each question carefully about whether the question is asking you to attest that you will do something and/or if it is asking you to write and include what you plan to do once a location is secured. If the question itself includes "if applicable," it is required that you provide the requested information, even if the information is preliminary or for planning purposes. If the words "if applicable" do not appear in the question, applicants must respond accordingly. Applicants should carefully consider whether a question is applicable to their application before deciding not to respond. Writing “not applicable” or “N/A” is not sufficient unless specifically noted.

An entity or true party of interest may not submit more than one application for any single license type. This limitation does not apply to an individual, business, or entity that holds no more than 10% ownership of the business entity. Please review Minnesota Statutes, section 342.185, subdivision 2 for further details on what constitutes a true party of interest and application number limitations. An entity or true party of interest may submit applications for multiple license types if it would not result in the applicant being vertically integrated in violation of Minnesota Statutes Chapter 342. Please review Minnesota Statutes, section 342.18, subdivision 2 for further details on vertical integration prohibition and Minnesota Statutes Chapter 342 sections specific to each license type for further information on specific restrictions.

Use the "order number" that is listed on your Social Equity Certification Report, which was provided by Creative Services, Inc.

The following is the list of required worksheets.

• Disclosure of Ownership and Control
• Capitalization Table
• Preliminary Security Plan 
• Preliminary Business Plan 
• Attestation of Labor Peace Agreement 
• Preliminary Training and Educational Plan for Employees 
• Preliminary SOP Quality Assurance
• Preliminary SOP Inventory Control, Storage, and Diversion Prevention
• Preliminary SOP Accounting and Tax Compliance 
• Preliminary Operation Plan (based on license type) 
• Preliminary Cultivation Plan (if applying for a cultivator license or micro/mezzobusiness license seeking a cultivation endorsement)

All worksheets are considered final once you complete your payment and will be the only documents reviewed for minimum qualifications.

As defined in Minnesota Statutes, section 342.01, a labor peace agreement is an agreement between a cannabis business and a bona fide labor organization that protects the state's interests by, at minimum, prohibiting the labor organization from engaging in picketing, work stoppages, or boycotts against the cannabis business.

As defined in Minnesota Statutes, section 342.01, a bona fide labor organization is a labor union that represents or is actively seeking to represent cannabis workers.

There is not a complete list of qualifying labor organizations. Applicants are welcome to work with any labor union that meets statutory definitions and represents or is actively seeking to represent cannabis workers.

Under Minnesota Statutes, section 342.515, subdivision 1(b), only one license is permitted per person or business.

A medical combination business may only cultivate cannabis for sale into the adult-use market equal to an area that is one-half of the area the business used to cultivate cannabis sold into Minnesota’s medical market in the previous year. That means a medical combination business will have to sell into Minnesota’s medical market for one year prior to cultivating any adult-use cannabis.

The individual business and OCM will determine through the use of the statewide monitoring system the amount of cannabis canopy sold by the business into Minnesota’s medical market the prior year. The business will be permitted to cultivate one half of that amount for the adult-use market in the following year, as provided in Minnesota Statutes, section 342.515, subdivision 2(c).

No. The medical combination business license is one of four license types that can be vertically integrated. Under Minnesota Statutes, section 342.515, subdivision 1(c), a medical combination business may cultivate, manufacture, and sell cannabis and hemp products.

Yes. Per Minnesota Statutes, section 342.22, subdivision 1, all cannabis businesses are required to receive local approval and registration prior to beginning retail sales.

No. Minnesota Statutes, section 342.13(h), only contemplates cannabis retail licenses, cannabis mezzobusiness licenses with retail operations, and cannabis microbusiness licenses with retail operations. Therefore, medical cannabis combination licenses with retail locations are exempted from the restrictions of that statute.

No. Minnesota Statutes, section 342.515, subdivision 1(c), enumerates all activities that are permitted with the medical cannabis combination business license. These activities are contemplated by the license and do not require additional endorsements. Depending on the activity, such as retail, the business will require local approval and registration as provided in Minnesota Statutes, section 342.22, subdivision 1.

No, Minnesota Tribes determine who operates businesses on tribally regulated land according to their own regulations.

A state license allows for a cannabis or hemp business to be operated outside of tribally regulated lands. As part of the licensing process, applicants must seek local zoning approval and local registration for retail stores. There is no requirement that the business owner reside in the same city or county as their business.

Where Tribes will locate dispensaries off Tribal land will be determined through compacting. Tribal governments do not qualify as social equity applicants.

Due to the lack of relevant data, OCM was unable to conduct the study directed by Minnesota Statutes, section 342.04, paragraph (b), which identifies areas experiencing disproportionately high levels of cannabis enforcement. Recent changes to the law allow applicants who believe they meet this criterion to submit a study or report, based on federal or state data on arrests or convictions, to OCM. These studies could include Tribal enforcement information if it is available. OCM has launched an interactive Social Equity Map that can be found on the OCM qualifications page under Criterion 6. The map is a tool for individuals to review whether their addresses over the last five years may meet any of the specific criteria listed in that section.

A model ordinance and guidance workbook for local governments is available on OCM’s website. Go to A Guide for Local Governments on Adult-Use Cannabis (PDF).

Local retail registration is independent of the state application timeline and zoning compliance certification and can be run concurrently or following. Chapter 342.22 details the outline and requirements for the local retail registration process, and there is guidance available on the Local Governments webpage. For more information on the licensing process timeline, go to the General Licenses webpage.

Following a court decision and to avoid further delay and risks to social equity, OCM ended the license preapproval process and moved forward with opening a standard licensing cycle for both social equity and general applicants beginning in early 2025. The 2024 law that established the license preapproval process emphasized rigorous review and operational readiness to ensure that social equity applicants were market-ready. The delays related to the court’s order to pause the lottery eliminated any early-mover advantages offered by the expedited license preapproval process envisioned by the Legislature. 

Proceeding to the planned standard licensing cycle allows OCM to prevent delays to the market launch due to ongoing litigation and retain some benefit to social equity by allowing applicants for license preapprovals to move into this new round. 

OCM notified the 648 applicants who qualified in the preapproval process that their applications will automatically move forward in the next licensing process. Applicants that applied for a license not capped by statute will not be subject to a lottery and will continue their next steps in securing a license, while applicants that applied for licenses subject to a lottery will be entered into the social equity lottery. If those applicants are not selected in the social equity lottery, they will have another opportunity in the general lottery. 

Go to the General Licenses webpage for more information.

Cannabis retailer businesses and cannabis businesses seeking a retail endorsement, including cannabis microbusinesses, cannabis mezzobusinesses, medical cannabis combination businesses, as well as lower-potency hemp retailer businesses are required to have local retail registration prior to making retail sales. All potential businesses (those engaging in retail and those not engaging in retail) are required to comply with local zoning ordinances. Local governments will be asked to certify zoning compliance during the application process for businesses of all license types prior to OCM issuing a license. Then, the license types described above will also be required to obtain a local retail registration directly from the relevant local unit of government. Zoning compliance certification and local retail registration are distinct.

OCM will use a software system, Accela, to manage the application and licensing process. As part of the application process, OCM will complete a zoning compliance verification check and communicate with local units of government through Accela to request certification on an application. Then, Minnesota’s cannabis law includes the process for local retail registration, which is distinct of the licensure process run by OCM. Each business conducting retail sales of cannabis is required to hold a business license AND a local retail registration. This process is determined by each local unit of government.

For more information, please visit the Contact and Delegation Form & Accela Account Registration Process webpage and review the Guide for Local Governments on Adult-Use Cannabis (PDF).

The annual renewals will be based on the date the license is issued.

OCM will open the license application window on Feb. 18 and close on March 14. Following that, OCM will review all accepted applications. For licenses subject to caps (meaning there is limited availability as determined in statute for retailer, mezzobusinesses, manufacturers, and cultivator license types), there will be a lottery selection process that is anticipated to be held in May or June. For licenses not subject to caps (meaning there is not a limited availability for microbusinesses, delivery, transporter, testing facility, wholesaler, and medical cannabis combination license types), no lottery selection process is required; instead licenses will be issued following the completion of the application process. This process includes a background check and a request for zoning compliance certification.

Local units of government may begin developing and adopting their ordinances at any time. OCM has developed a guidebook to assist local governments in this process. Learn more at A Guide for Local Governments on Adult-Use Cannabis (PDF). Organizations supporting local units of governments, including the League of Minnesota Cities and the Association of Minnesota Counties, also have resources to support this process.

Under state law, licensed lower-potency hemp edible retailers are defined as hemp businesses, not cannabis businesses. However, they are also required to obtain a local retail registration in addition to their state license to conduct retail sales, which is the same requirement as for cannabis businesses intending to conduct retail sales. Both a license and a retail registration are required. So, while a local unit of government may treat cannabis businesses and lower-potency hemp retailers (hemp businesses) the same under the local retail registration process, they may also be treated distinctly if the local unit of government intends to limit the number of retail registrations of cannabis businesses. Because under state law, lower-potency hemp edible retailers are not subject to the limitation authority that a cannabis retailer may be. However, if a local unit of government is not limiting the number of retail registrations for cannabis businesses, then they may be treated the same as they both require retail registrations.

The rulemaking process is ongoing. On Jan. 13, OCM will publish a notice of intent to adopt expedited rules for Minnesota’s new cannabis industry. As such, local government can review the draft rules and can submit comment until 4:30 p.m. on Wednesday, Feb. 12. For more information and to review the draft rules (starting on Jan. 13), go to the Rulemaking webpage.

OCM has developed a guidebook that includes information about potential zoning considerations for cannabis businesses. Learn more at A Guide for Local Governments on Adult-Use Cannabis (PDF). Organizations supporting local units of governments, including the League of Minnesota Cities and the Association of Minnesota Counties, also have resources to support this process.

The licensing framework will be in place once the rules are adopted, and OCM will be able to issue cannabis and hemp business licenses. After OCM begins issuing lower-potency hemp licenses, businesses are required to have a lower-potency hemp edible retailer license to engage in retail sales of these products, including the products that are currently legal to sell by registered retailers during the interim.

State law does not require a specific process to issue cannabis retailer registrations. Under Minnesota Statutes, section 342.13, local governments are not required to limit the number of registered cannabis retailers and must allow at least one retailer per 12,500 residents. If a local government chooses to limit the number of retail registrations within its locality, options for selecting applicants could include a lottery, a first-come/first-served model, rolling approvals, and other options. Local governments that plan to limit retail registrations should work with an attorney to develop a process for issuing registrations.

Municipal cannabis stores will follow the general license application process. Licenses for municipal cannabis stores will be issued regardless of the lottery selection process for cannabis retailer licenses if all conditions in Minnesota Statutes section 342.14, subdivision 7, are met. The requirements for applications for cannabis business licenses are detailed in Minnesota Statutes sections 342.14 and 342.18. Additionally, requirements for cannabis retailer licenses are detailed in section 342.42. OCM will share guidance for the application process on the OCM website ahead of the general licensing launch.

As of July 1, 2024, OCM oversees compliance investigations of the lower-potency hemp-derived product industry. County staff can file a complaint at Submitting Office of Cannabis Management Product Complaints. Once rulemaking is completed, OCM will establish an expedited complaint process to receive, review, read, and respond to complaints made by a local unit of government about a cannabis business. Upon promulgation of rules, OCM will publish the complaint process and guidance for local governments.

Each individual city and township can decide whether to delegate registration authority to the county. Minnesota statute does not specify the method for the delegation process, and OCM would suggest consulting your city and county attorneys to determine this process. Only the local government unit that issues a cannabis retailer registration, so the entity with the delegation may limit the registrations by ordinance pursuant to Minnesota Statutes, section 342.13. 

The city or township will be required to notify OCM if they have delegated authority on forms provided by the office. Information about this process will be shared in the office’s rules and on the website.

Each individual city and township can decide whether to delegate registration authority to the county. OCM suggests consulting city and county attorneys to determine this process and communication between jurisdictions. The city or township will be required to notify OCM if they have delegated authority on forms provided by the office. For more information, please review OCM's Contact and Delegation webpage.

During the application and licensing process for cannabis and hemp businesses, OCM will notify a local government when an applicant intends to operate within their jurisdiction and request a certification as to whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. For more information about a unit of local government’s role in zoning compliance, please review OCM's Local Governments webpage and the Contact and Delegation webpage.

Local retail registration is independent of the state application timeline and zoning compliance certification and can be run concurrently or following. Chapter 342.22 details the outline and requirements for the local retail registration process. For more information about a unit of local government’s role in local retail registrations, please review OCM's Local Governments webpage and the Guide for Local Governments on Adult-Use Cannabis (PDF).

For questions about tax revenue and sales tax, please use the contact form on the Department of Revenue website.

Local units of government are responsible for local retail registrations. Before making retail sales to customers or patients, a cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, medical cannabis combination business, or lower-potency hemp edible retailer must register with the city, town, or county in which the retail establishment is located. A county may issue a registration in cases where a city or town has provided consent for the county to issue the registration for the jurisdiction. 

A local retail registration is required in addition to a business license as issued by OCM. 

The local unit of government responsible for local retail registration will work in accordance with Minnesota Statutes, section 342.22, including collecting a retail registration fee, conducting compliance checks, etc.

Please review Minnesota Statutes section 342.22, subdivision 1, for more information about the option for city and towns to provide consent for the county to issue retail registrations for their jurisdiction. State law does not define how a delegation decision may be made or executed. City and county partners may also consider other areas where delegations of authority exist and how they are accomplished. OCM recommends that local units of government consult their attorneys about how to either enter into or not enter into a delegation authority for the retail registration process.

Please review Minnesota Statutes, section 342.22, subdivision 1, for more information about the option for city and towns to provide consent for the county to issue retail registrations for their jurisdiction. State law does not define how a delegation decision may be made or executed. City and county partners may also consider other areas where delegations of authority exist and how they are accomplished. OCM recommends that local units of government consult their attorneys about how to either enter into or not enter into a delegation authority for the retail registration process.

Only the local government unit that issues a cannabis retailer registration (the entity with delegation) may limit the registrations by ordinance in accordance with Minnesota Statutes, section 342.13.

The city or township will be required to notify OCM if they have delegated authority on forms provided by the office. To notify OCM, local units of government should complete the Contact and Delegation Form. For more information about this form and process, please visit the Contact and Delegation Form & Accela Account Registration Process webpage. Every local unit of government should complete this form, regardless if they are delegating retail registration authority. This form does not suffice as the delegation itself, this process should be done by the local unit of government in consultation with their legal counsel.

Yes. The processes for zoning compliance certification and retail registration are distinct. Per Minnesota Statutes, section 342.13, a local unit of government may adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. As part of the application and licensing process for cannabis business licensure, OCM will contact the local unit of government responsible for zoning authority when a proposed business is requesting zoning compliance certification. For more information about this process, please visit OCM’s Contact and Delegation Form & Accela Account Registration Process webpage and the Local Governments webpage. 

Then, the local unit of government with retail registration authority (a city or township unless otherwise delegated to the county), will be responsible for determining and managing the process to issue local retail registrations to applicable cannabis and hemp businesses. The local unit of government responsible for the local retail registration process will also complete compliance checks in accordance with Minnesota Statutes, section 342.22. For more information about this process, please visit OCM’s Contact and Delegation Form & Accela Account Registration Process webpage, the Local Governments webpage, and the Guide for Local Governments on Adult-Use Cannabis (PDF) for additional guidance about the retail registration process (pages 18-23).

State law does not include this restriction. 

Minnesota Statutes, section 342.13, states the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. OCM recommends that you consult with your local government attorney for specific legal advice.

Chapter 342 does not include a specific authority for a local unit of government to place a limit on events each year, however, it is important to note that the statute includes the requirement that applicants seeking an event organizer license must have local approval. State law requires that a cannabis event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local government unit, before holding a cannabis event. Per Minnesota Statutes, section 342.39, subdivision 2, proof of local approval for the event is required in an application for the cannabis event license. 

Minnesota Statutes, section 342.39, states the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. We recommend that you consult with your local government attorney for legal advice.

Per Minnesota Statutes, section 342.32, subdivision 5, a city or a county may operate one cannabis store under a cannabis retailer license.

Cities or counties that wish to apply for a retailer license to operate a municipal cannabis store can submit an application during the standard licensing cycle. The application window provided for general licensing applicants will open on Feb. 18, 2025, and close on March 14, 2025. Per state law, municipalities, which are not subject to the lottery selection process for retailer licenses, will be awarded retail licenses provided they meet all the necessary requirements in Chapter 342. Municipal cannabis retail stores will not count towards the cap on retail licenses distributed by OCM. 

At this time, the standard licensing cycle application window in early 2025 is the only scheduled application window. OCM will provide further information about future opportunities once available.

The standard licensing cycle in early 2025 is available to all applicants for 10 license types, including social equity applicants and non-social equity applicants. Municipalities interested in applying for a retailer license to operate a municipal cannabis store will apply as a general applicant for this license type. 

Municipal cannabis stores will follow the general license application process. Licenses for municipal cannabis stores will be issued regardless of the lottery selection process for cannabis retailer licenses if all conditions in Minnesota Statutes, section 342.14, subdivision 7, are met. The requirements for applications for cannabis business licenses are detailed in Minnesota Statutes, sections 342.14 and 342.18. Additionally, requirements for cannabis retailer licenses are detailed in section 342.32. OCM will share guidance for the application process on this website ahead of the general licensing launch. 

Once applications from municipalities are received during the application window, OCM will review the applications and will communicate about next steps in the licensing process, including completing the background check process and meeting requirement for a labor-peace agreement.

Statute does not specify what public-private relationships municipalities may have. OCM is not able to provide business or legal advice and recommends consulting legal counsel. All applicants for cannabis business licenses must meet requirements under Minnesota Statutes, section 342.14, including disclosures of ownership and control. All applicants for cannabis business licenses, including municipalities seeking a retailer license, will be required to disclose all true parties of interest as defined in Minnesota Statutes, section 342.185, even though they may not own a percentage of the business. OCM will share more guidance about application requirements in advance of the application window.

Yes, a city or county is eligible to apply and receive a lower-potency hemp edible retailer license and would be able to sell lower-potency hemp edibles at a municipal liquor store subject to rules and regulations associated with this license type (Minnesota Statutes, section 342.46, subd. 2). 

No. State law prohibits an applicant from holding a cannabis license and a hemp license at the same time (Minn. Statutes, section 342.43, subd. 2; Minn. Statues, section 342.44 subd. 2; Minn. Statutes, section 342.32, subd. 4). 

Yes, a city or county is eligible to apply and receive a cannabis retailer license and would be able to sell lower-potency hemp edibles at a municipal cannabis store subject to rules and regulations associated with this license type (Minnesota Statutes, section 342.32, subd. 1(3)). 

If a local government wishes to limit the number of cannabis retailers, microbusinesses, or mezzobusinesses via ordinance, state law does not define the process for a local government’s selection if there are more applicants than registrations available. This is up to the local government to establish. OCM’s local government guide includes more information, including suggestions to seek legal counsel while establishing this process. It is also important to note that local governments are not required to limit the issuance of local retail registrations and may issue local retail registrations to inquiring businesses as requested/applied for. OCM recommends applicants to engage in conversations early with the local government of their potential operating site to better understand if and how the local government has adopted any limits on retail registration and the process for which they are issuing the registrations. If deciding to limit, local governments are encouraged to be clear about the process they are establishing for the issuance of local retail registrations and engage with prospective applicants. Local governments should also complete the Contact and Delegation Form to share details with OCM regarding retail registration authority and, if applicable, any limitations. 

If a preliminarily approved applicant requires a Conditional Use Permit (CUP) in order to operate in a certain jurisdiction, then OCM has recommended an applicant should wait to submit their site registration until after that permit has been approved. 

At the time that an applicant submits their site registration, the local government with zoning authority reviewing the zoning certification compliance may take into consideration whether a CUP has been approved or not as part of their decision. We recommend consulting legal counsel to operationalize the requirements for local units of government as defined in Minnesota Statutes, sections 342.13 and 342.14. If your local unit of government requires a CUP in order for a prospective business to be in zoning compliance, then the locality may respond to the zoning certification request as noncompliant. An applicant with preliminary approval who does not meet local zoning compliance will be able to resubmit their site registration at a later date after working with the local government to be in compliance or changing locations entirely. 

Please note that an applicant has up to 18 months from when they are granted preliminary approval status to convert their status to a licensee. This is a reflection of the time needed to secure funding for the business, secure a location, finalize plans, and work with local units of government to obtain zoning approval. 

In our Qualified Applicant Guide, we strongly recommend that prospective applicants and local units of government engage in conversations early in the process to understand what is required to obtain local zoning compliance and a local retail registration, as applicable.