Minnesota Became the 23rd State to Legalize Adult-Use MJ Last May
Marijuana is now legal for adults 21 and older to possess and use in Minnesota, as the state became the 23rd in the country to legalize marijuana for adult use in May of last year.
In 2022, Minnesota legalized the sale and consumption of edibles containing small amounts of hemp-derived THC. Then, on May 30, 2023, Minnesota Governor Tim Walz signed an expansive cannabis legalization bill into law, allowing the adult use of cannabis for adults 21 and older beginning on August 1, 2023.
The legislation allows Minnesotans 21 and older to possess and use certain amounts of cannabis and cannabis products. Specifically, adults 21 and older are now 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 who is at least 21 years old may also possess up to two pounds of cannabis flower in a private residence and grow a limited number of cannabis plants at home.
The legalization legislation established a new Office of Cannabis Management (OCM) in Minnesota, which will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for lower-potency hemp edibles) and will eventually license adult-use cannabis businesses, including retail dispensaries. Notably, the legislation proposes that retail sales for adult-use cannabis in Minnesota (except for tribal nations) will begin in the first quarter of 2025.
The OCM will release applications, issue licenses, and develop regulations outlining how and when businesses can participate in the new adult-use industry in Minnesota. Over the coming months, the OCM will develop the regulatory framework for legal adult-use cannabis and establish processes and timelines to apply for licenses. According to the legalization legislation, there will be over a dozen license types available, and applications for business licenses from people who are considered social equity applicants will be prioritized. The OCM is currently seeking input as it begins its work to draft rules for the new cannabis industry in Minnesota.
Generally speaking, adult-use cannabis dispensaries cannot open until the OCM figures out a system for licensing businesses. However, tribal governments do not have to wait for the state’s licensing system to open dispensaries. Minnesota’s 11 tribal nations are sovereign, meaning they can operate independently from state laws and regulations. Each tribe in Minnesota determines how they want to regulate and oversee businesses–including cannabis businesses–on their land. As such, despite the fact that the OCM has not yet developed its licensing system, the first adult-use cannabis dispensary opened on August 1, 2023, on the Red Lake Nation in north central Minnesota. Shortly thereafter, the White Earth Nation became the state’s second reservation to begin selling adult-use cannabis. Adults 21 and older can shop at these dispensaries.
Key Takeaway: If you are a cannabis entrepreneur looking to obtain a license to grow and/or sell cannabis in Minnesota, unless you can work through a Tribal Nation, you will have to wait until the OCM releases application information. Based on trends from other states that recently legalized adult-use marijuana, we expect cannabis application requirements to be released approximately 6 months ahead of when the state is planning to implement retail sales. If this trend holds true for Minnesota, be ready for applications to be released middle of 2024, considering a planned Go Live in Q1 of 2025. While we know the costs to apply for a license in MN, we do not yet know the rules and/or the number of licenses the state will award. If you are interested in applying for a license in Minnesota, please feel free to contact us to speak with one of our attorneys.
