Market Type
In Minnesota,medical cannabis is currently regulated by the Department of Health and adult-use cannabis is regulated by the Office of Cannabis Management. However, beginning on July 1, 2024 the Office of Cannabis Management’s Division of Medical Cannabis will begin overseeing the state’s medical cannabis market and will assume control over hemp-derived retailers.
Medical cannabis is permitted in Minnesota; a bill which legalized adult-use cannabis (Chapter 63, HF 100) was signed into law on May 30, 2023. However, adult-use cannabis sales will likely not begin until early 2025 as the Office of Cannabis Management finalizes its rules and issues out licenses.
Types of Licenses Created by H.F.100
H.F. 100 creates nine types of adult-use licenses, including:
Cannabis cultivator
- Allows the license holder to grow up to 30,000 square feet of cannabis
Cannabis manufacturer
- Allows a business to process cannabis flower into other products, like edibles, topicals and concentrates
Cannabis retailer
- Allows a company to operate up to five retail stores,
Cannabis microbusiness
- Allows a company to cultivate up to 5,000 square feet, manufacture and sell cannabis products at a single location. On-site consumption and live entertainment is also allowed at a microbusiness.
Cannabis mezzobusiness
- Allows a company to cultivate up to 15,000 square feet, as well as manufacture and sell cannabis products. A mezzobusiness may operate up to three retail locations. On-site consumption is not allowed at a mezzobusiness.
Cannabis wholesaler
- Allows a licensee to purchase cannabis flower, immature plants, or other cannabis or hemp products from other businesses and sell them to cannabis manufacturers, retailers, microbusinesses and mezzobusinesses
Cannabis transporter
- Allows a licensee to transport cannabis plants, flower and other products between other cannabis businesses.
Cannabis delivery service
- Allows a licensee to purchase cannabis products from retailers, medical cannabis retailers, microbusinesses or mezzobusinesses and deliver them to customers
Cannabis event organizer
- Allows a licensee organize cannabis events lasting up to four days
In May 2024, Governor Walz signed a bill which imposes license caps for certain license types, half reserved for social equity applicants:
- Cultivator: 50 total (25 SE licenses)
- Manufacturer: 24 total (12 SE licenses)
- Retailer: 150 total (75 SE licenses)
- Mezzobusiness: 100 total (50 SE licenses)
Social Equity Licenses
As part of the bill signed by Governor Walz in May 2024, OCM is implementing an early application process for social-equity approved applicants.
The social equity applicant verification timeline is from June 24, 2024 to July 10, 2024
The social equity license preapproval timeline for licenses is from July 24, 2024 to August 12, 2024.
- Retail and manufacturing operations cannot begin until rule adoption in 2025 but a limited # of applicants with license preapproval could begin growing prior to adoptions of rules, pending local approval
The following # of licenses will be available to qualifying social equity licensees during this summer 2024 round:
- Microbusiness: 100
- Mezzobusiness: 25
- Cultivator: 13
- Manufacturer: 6
- Retailer: 38
- Wholesaler: 20
- Transporter:20
- Testing facility: 50
- Delivery service: 10
H.F.100 also creates four types of medical cannabis licenses:
- Medical cannabis cultivator
- Medical cannabis processor
- Medical cannabis retailer
- Medical cannabis combination business, which also permits the sale of adult-use products
Metrc & Inventory
Minnesota uses Metrc as their seed-to-sale state traceability system. In Minnesota, all inventory actions must be reported to the state system in real time.
Purchase Limits
Adult-use
- Two ounces of flower
- 8 grams of concentrates, and
- 800mg of edibles in a single transaction
Note: low-THC hemp purchases count towards purchase limit if purchased from a licensed dispensary
Medical
- Patient limits are set by prescription. A patient is able to purchase up to their allotted 30 day supply. The patient is not allowed to purchase more than a 30 day supply, in a 23 day period.
Taxes
Adult Use
- 10% of gross receipts from retail sales of taxable cannabis products
- Local governments are prohibited from imposing an additional sales tax solely on cannabis products
Medical
Medical cannabis is exempt from gross receipts tax and sales tax.
Delivery
- Medical cannabis delivery is not permitted
- Adult-use cannabis delivery will be permitted once the adult-use program is up and running
Things to Note
Tribal Cannabis:
- MN medical patients can purchase from MN Tribal Dispensaries that are part of the MN Medical Cannabis Program
- Sales from tribal medical patients who are part of the MN Tribal Medical Program must be reported to metrc
Hemp and low THC products:
Minnesota permits the sale of hemp-derived THC food and drink. The Office of Cannabis Management takes over the licensing, regulation and enforcement of the low-dose hemp-derived market on July 1, 2024. Businesses selling hemp-derived THC food and drink are required to continue registering their businesses and products with OCM.
- Currently, hemp-derived food and beverages containing up to 5 mg of THC per dose are permitted
- There is an overall package limit of 50 milligrams per package for food/edibles and a 10 mg per-package limit for beverages.
- Food and beverages are the only hemp-derived products permitted; flower and vapes are not permitted
- Since May 31, 2023, low potency hemp edibles and beverages are permitted to be sold in liquor stores.
State Resources
OCM is documenting their rulemaking process here.
