Minnesota cannabis office ends license preapproval process

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Minnesota cannabis office ends license preapproval process [RAW]

Legal marijuana sales in Minnesota will be delayed at least three more months. The Minnesota Office of Cannabis Management announced Wednesday it is ending the license preapproval process, instead moving forward with opening a standard licensing cycle. The office plans to hold license lotteries now in May or June 2025 after most recently planning for licensing in the first three months of 2025.

Legal marijuana sales in Minnesota will be delayed at least three more months. 

The Minnesota Office of Cannabis Management announced Wednesday it is ending the license preapproval process, instead moving forward with opening a standard licensing cycle.

The office plans to hold license lotteries now in May or June 2025 after most recently planning for licensing in the first three months of 2025.

Minnesota marijuana licenses

What we know: A Ramsey County judge paused the cannabis license lottery, initially scheduled for Nov. 26, after several applicants filed lawsuits disputing their denials. 

The state approved about two-thirds of about 1,800 applicants for 280 licenses. People accepted into the lottery felt good about their chances, but some rejected applicants claimed procedural errors and rushed timelines.

However, the Cannabis office on Wednesday said it now won't hold a lottery and instead will move forward with opening a standard licensing cycle for both social equity and general applicants "beginning early next year." This will allow the office 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." 

What they're saying: "We remain committed to launching an equitable, sustainable, and responsible cannabis marketplace in Minnesota," said OCM Interim Director Charlene Briner. "Our path forward ensures we remain on track to launch Minnesota’s new cannabis market and also preserves some of the social equity benefits that were at the heart of the preapproval process and that are foundational to the law as it was originally conceived." 

When can you buy marijuana in MN? 

Minnesota legalized cannabis in August 2023, with sales currently limited to tribal lands. Broader business licenses are expected in 2025. Officials on Wednesday after the lottery in May or June, it's a matter of weeks or months before businesses can open, depending on their preparation.

Timeline: The Minnesota Office of Cannabis Management's announcement on Wednesday delays retail licensing to at least May. Here's what to expect over the next several months: 

  • Jan. 10, 2025: Deadline to request refund of license preapproval application fee
  • Jan. 15, 2025: Social equity applicant verification window opens
  • Jan. 30, 2025: Social equity applicant verification window closes.
  • Feb. 18, 2025: License application window opens (SEA and all applicants)
  • March 14, 2025: License application window closes
  • May-June 2025: Tentative lottery
  • Sometime in 2025: Off-trial land marijuana sales

What to know if applying for a cannabis license

What's next: The Minnesota cannabis office says it will notify 648 applicants who qualified in the preapproval process that their applications will be automatically moved forward in the licensing process. 

Applicants who applied for a license not capped by law will not be subject to a lottery and will continue their next steps in securing a license, while applicants who 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. 

Those who received denial notices will have the chance to move forward in the general licensing cycle or they may choose to discontinue their participation in the next cycle and request a refund of their application fee.   

In February 2025, the cannabis office will send a request for for information to applicants who were denied in the preapproval round who want to continue to the next licensing cycle. 

This is a developing story. Check back for updates.