In March 2025, the Office of Cannabis Management (OCM) officially closed its application window for cannabis licenses in Minnesota. While some license types were decided by lottery, others were uncapped, including testing facilities. Testing facilities are integral to the Minnesota cannabis supply chain as they ensure that all products bought and sold in Minnesota are safe for consumers. Given their essential function within the Minnesota cannabis industry, OCM has prioritized the prompt operational readiness of testing facilities. With no need to wait for a lottery, potential license holders pursuing those types of licenses are able to begin searching for and securing property and ensuring its compliance with local laws.

Regulatory Challenges Associated with State Legalization

When a state legalizes cannabis, it often takes months to fully flesh out all the regulations. As one might expect, it can be difficult to apply for a cannabis license or merely operate the business when the regulations are in flux. Not only do potential licenses holders need to deal with OCM, but they also must work with the local municipality in which they want to operate. Communication between the potential license holder and the municipality can go awry due to the ever-changing regulatory landscape and the fact that this is a brand-new industry operating within a new regulatory framework. When working with the municipality, the process can be just as much about educating the municipal staff as it is working with them to get the zoning approved.

Overcoming Obstacles in Minnesota: A Case Study

Our team was recently engaged to assist a client in obtaining a Conditional Use Permit, and it was clear that we needed to have a discussion with the city Planning Board staff before submitting the conditional use permit application to ensure that they were aware of the project and could ask questions early on in the process. We immediately began communicating with the Planning Board and collaborated with them throughout the process. As the result of our early and frequent communication, the Planning Department staff was able to create a concise presentation that fully educated the Planning Board on the project.

In addition to assisting with the submission of the application, the team represented the client before the Planning Board and City Council during public hearings. Our communication with the Planning Department staff early and often throughout the process allowed staff to demonstrate to the Board how this project fit perfectly within the scope of Conditional Use Permits and paved the way for a smooth approval process.

Earlier this month, the City Council adopted the city’s Planning Board resolution to grant our client a Conditional Use Permit, illustrating how important it is to establish early and effective lines of communication among stakeholders in the process. While the municipality works with OCM to confirm that the location is zoning-compliant, the client can begin building out the space to conform to OCM guidelines and begin testing products statewide. The client’s testing facility is now currently one of two testing facilities approved by OCM.

Newly established state cannabis regulatory frameworks can be difficult to navigate for a variety of factors; however, bringing on board seasoned attorneys who know the industry and the complexities of state and local law can go a long way toward minimizing risk and shortening the timelines associated with securing necessary approvals.