Minnesota Cannabis

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.

On the heels of the 2018 Farm Bill, some states have opted to regulate hemp-derived cannabinoid consumer products. One of the early movers in this area is the State of Minnesota. The regulations in Minnesota for hemp-derived cannabinoid products (as well as licensing for them) are changing, with licensing opening up this fall. Interestingly, Minnesota has adopted a sort of hybridized cannabis and hemp program, in which cannabis licensees can also access and sell “lower-potency hemp edibles” (“LPHE”) made outside of the heavily regulated cannabis license supply chain.

Like many others, we were caught up in filing a slew of Minnesota adult use cannabis applications for our clients by March 14 (which, if you were paying attention, that deadline was extended to March 15 by midnight because of a crash with the Office of Cannabis Management (OCM) website). Every time a licensing window opens in a state with a new adult use cannabis program, there are lessons to be learned for clients, attorneys, and regulators, alike.

The Minnesota Office of Cannabis Management (“OCM”) has begun issuing final denials to the overwhelming majority of previously qualified social equity applicants (“SEA”s) ahead of its first statewide cannabis lottery on December 2 for 280 available “preapproval” cannabis licenses.