Cannabis Business License in Minnesota
Cannabis Business License in Minnesota: Updated June 2021
Medical marijuana is currently legal in Minnesota. With that, we may see a recreational marijuana market in Minnesota soon, as an eleventh Minnesota House committee on Wednesday approved a bill to legalize marijuana. Additionally, as neighboring states legalize marijuana markets, Minnesota is ready to establish its own marijuana market with multiple license opportunities, and allow business entrepreneurs the opportunity to operate cannabis businesses. So, if you want a cannabis business license in Minnesota, now is the time to look over the new rules and regulations and win a license.
Adult-Use Cannabis in Minnesota
Rules and Regulations for Cannabis in Minnesota
To begin with, the rules and regulations for an adult-use cannabis market in Minnesota shall be similar to other adult-use programs within the United States. Within this bill, it states that any person over the age of 21 can purchase and possess marijuana products. For example, a person can transport 1.5 ounces or less of adult-use cannabis in a public place. Also, a person can possess up to 10 ounces within their own private residence.
Cannabis can be consumed within a person’s private residence or within an establishment that allows cannabis use. Additionally, there are rules for home cultivation and home extraction. Lastly, you can not sell cannabis or cannabis products without a retailer or microbusiness license.
Available Cannabis Business License Types
The state of Minnesota has quite a large list of license types that would be available with a recreational market. These licenses include:
Cultivator License (Craft Cultivator, Bulk Cultivator)
A cannabis cultivator license in Minnesota allows the licensee to grow cannabis within an approved amount of space. With this license type, you can:
- Grow from seed or immature plant to mature plant
- Harvest cannabis from a mature plant
- Package and label cannabis for sale to other cannabis businesses
- Transport cannabis to cannabis manufacturers that are located on the same premises
- Perform other actions approved by the board
As for multiple licenses, there are limitations. For example, a person cooperative, or business holding a cannabis cultivator license can also hold a cannabis manufacturing license, medical cannabis license, a license to grow industrial hemp, and a cannabis event organizer license. However, no person, cooperative, or business holding a cannabis cultivation license can own or operate any other cannabis business except the ones mentioned above.
Lastly, the board can limit the number of cannabis cultivator licenses a person, cooperative, or business can hold.
As mentioned, there are two types of cultivator licenses in Minnesota. This includes a bulk cultivator license and a craft cultivator license.
Bulk Cultivator Cannabis License in Minnesota
A bulk cultivator license in Minnesota allows cultivation by a license holder of not more than 30,000 feet of plant canopy
Craft Cultivator Cannabis License in Minnesota
A craft cultivator license allows cultivation by a license holder of not more than 10,000 feet of plant canopy.
If you want an even smaller amount of plant canopy, a microbusiness license may be the perfect option for you. We explain this license type further in this article.
For more information on the differences in cultivation licenses, contact our cannabis consultants.
A cannabis manufacturer license allows a license holder to purchase cannabis, cannabis products, hemp, and hemp products from cultivators, manufacturers, microbusinesses, and industrial hemp growers. Additionally, with this license type, you can:
- Extract THC and other raw materials from cannabis
- Concentrate THC
- Manufacture products for public consumption
- Package and label cannabis products for sale to other cannabis businesses
- Lastly, perform any actions that are approved by the board
Additionally, with this license type, the same limitations apply as mentioned for a cultivation license in Minnesota.
Manufacturing Legal Edibles in Minnesota
A manufacturing cannabis business license in Minnesota allows for the licensee to make edibles. However, a cannabis manufacturer that produces edible cannabis products must obtain an endorsement from the board.
All product ingredients must be enclosed by the manufacturer.
Cannabis Retailer License in Minnesota
Next, if you have a cannabis retailer license in Minnesota you are able to sell immature cannabis plants and seedlings, adult-use cannabis, adult-use cannabis products, and other products authorized by law to customers.
Additionally, a cannabis retailer can only sell cannabis and cannabis products to those who are 21 and older. All immature cannabis plants and seedlings, adult-use cannabis, and adult-use cannabis products must:
- Be obtained from a licensed Minnesota cannabis cultivator, cannabis manufacturer, microbusiness, or wholesaler
- Meet all applicable packaging and labeling requirements
Additionally, a cannabis retailer can sell up to two ounces of adult-use cannabis, eight grams of adult-use cannabis concentrate, and edible cannabis products infused with 800 milligrams of THC during a single transaction to a customer.
A cannabis retailer in Minnesota can also sell the following products:
- Drinks that do not contain alcohol
- Books and videos about the cultivation and use of cannabis products
- Magazines and other publications about cannabis
- Multiple-use bags designated to carry purchased items
- Clothing with the specific name, brand, the logo of the cannabis retailer
- Hemp products
Cannabis Wholesaler License in Minnesota
Next, a cannabis wholesaler license in Minnesota allows for the licensee to purchase immature cannabis plants and seedlings, cannabis, cannabis products, hemp, and hemp products from cannabis cultivators, cannabis manufacturers, cannabis microbusinesses, and industrial hemp growers.
Additionally, this license allows you to sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp, and hemp products to manufacturers and retailers.
In regards to the limitation on licenses, a cannabis wholesaler in Minnesota can also hold a cannabis transporter license, a cannabis delivery service license, and a cannabis event organizer license.
Cannabis Transporter License in Minnesota
A cannabis transporter license in Minnesota allows the licensee to transport immature cannabis plants and seedlings, cannabis, cannabis products, hemp, and hemp products from cultivators, manufacturers, wholesalers, microbusinesses, medical marijuana businesses, and industrial hemp growers to manufacturers, testing facilities, wholesalers, retailers, medical marijuana businesses.
For this license type, there are specific operational plans for the business. Some aspects that are required include:
- A shipping manifest that must be updated at all times
- Records of transportation
- Storage compartments
- Randomized deliveries
- Multiple employees
You must include how you will comply with all operational plans within your cannabis application. Contact our marijuana application writers in Minnesota for additional assistance.
Next, a cannabis testing facility license in Minnesota allows for the licensee to obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, hemp, and hemp products from cultivators, manufacturers, microbusinesses, medical marijuana businesses, and industrial hemp growers.
As for the operations of a cannabis testing facility in Minnesota, you must comply with testing services, testing protocols, records, and the disposal of cannabis and cannabis products.
Cannabis Microbusiness License in Minnesota
This marijuana license type in Minnesota allows the licensee to:
- Grow cannabis from seed or immature plant to mature plant, harvest cannabis from a mature plant, package, and label cannabis for sale to other marijuana businesses in Minnesota
- Extract THC and other raw materials from cannabis, and concentrate THC
- Manufacture edible cannabis products for public consumption
- Purchase concentrated THC from a cannabis manufacturer or cannabis wholesaler for use in manufacturing edible cannabis products
- Sell immature cannabis plants and seedlings, adult-use cannabis, adult-use cannabis products, and other products authorized by law to customers
- Lastly, operate an establishment that permits on-site consumption of edible cannabis products
As this is a microbusiness license, there are limitations for all activities you do. A cannabis microbusiness that cultivates cannabis can not cultivate more than 2,000 square feet of plant canopy.
Additionally, there are also limitations to extraction and concentration, production of customer products, retail operations, and on-site consumption.
On-Site Consumption Lounge with a Microbusiness License in Minnesota
As for consumption lounges, Minnesota only offers this license type as a microbusiness. This license type allows on-site consumption of edible cannabis products on a portion of its premises. Certain rules apply, such as:
- Edible cannabis products sold for on-sit consumption have to comply with testing, packaging, and labeling rules
- Additionally, these edible cannabis products have to be removed from their packaging and consumed on-site
- Lastly, food and beverages sold on the site have to be compliant with state and local laws, ordinances, licensing requirements, and zoning requirements
With that, a cannabis consumption lounge can not:
- Sell more than one single serving of an edible cannabis product to a customer
- Allow the sale or consumption of alcohol or tobacco on the premises
- Sell food and drink, other than packages and labeled edible cannabis products infused with cannabis or THC
- Distribute or allow free samples
Cannabis Event Organizer License in Minnesota
With a cannabis event organizer license in Minnesota, you are able to organize a temporary cannabis event that lasts no more than 4 days.
Also, if you want this license type you must obtain local approval, are able to charge entrance fees to the event, must have security within the event, and make sure that no one under the age of 21 enters the event.
Cannabis Event Sales
Additionally, licensed cannabis retailers and licensed cannabis microbusinesses with endorsements to sell cannabis and cannabis products to customers, including the cannabis event organizer, can sell cannabis and cannabis products to customers at a cannabis event.
With that, there are some rules to this cannabis license in Minnesota. These include:
- All sales of cannabis and cannabis products at a cannabis event have to take place in a retail area that is designated within your application. With that, licensed retailers and microbusinesses can only conduct sales within their specific area
- Also, licensed retailers and microbusinesses can display one sample of each cannabis or cannabis product available for sale. These samples must be stored in ways approved by the board. There are also limitations on the potency of samples
Lastly, cannabis event on-site consumption can also be approved by the local unit of the government for a cannabis event in Minnesota.
Cannabis Delivery License in Minnesota
Lastly, a cannabis delivery license in Minnesota allows the license holder to purchase cannabis, cannabis products, medical cannabis, and medical cannabis products from licensed retailers, microbusinesses with an endorsement to sell cannabis and cannabis products to customers, and medical cannabis businesses. The delivery business can transport and deliver cannabis, cannabis products, medical cannabis, and medical cannabis products to customers.
There are also specific operational requirements for a cannabis delivery license in Minnesota. This includes:
- Age and registry verification upon delivery
- Record keeping
- Limits on the amount of cannabis and cannabis products a cannabis delivery service may transport
- Statewide monitoring system
- Storage compartment requirements
If you have any additional questions about a business plan for a cannabis delivery service in Minnesota, contact our cannabis consultants.
How to Score High and Win a Cannabis Business License in Minnesota
Within this bill, Minnesota also lists details about the scoring of the application and what licenses are prioritized. Points are to be awarded to those that fit into these categories:
- First, the status as a social equity applicant
- Additionally, the status as a veteran applicant
- Security and record-keeping
- Employee training plan
- Also, a business plan and financial situation
- In additon, a Diversity plan
- Labor and employment practices
- Knowledge and experience
- Lastly, an environmental plan
So, the categories listed above are an important part of your application. Having detailed descriptions of these categories can guarantee you a win for a cannabis business license in Minnesota. Contact our cannabis consultants at Quantum 9 for more information about the cannabis industry in Minnesota.
What’s Next for Cannabis in Minnesota
Lastly, the House Majority leader, Ryan Wrinkler, is hopeful that Minnesota will see a legal marijuana market in the near future. With that, he claims that public support is growing for the legalization and the expungement of criminal offenses related to cannabis.
Finally, contact a cannabis consultant in Minnesota for more information about cannabis business licenses that are available now and within the future. Additionally, Quantum 9 has one of the highest success rates in the industry and we are eager to help cannabis business entrepreneurs in Minnesota.
If you want to take a closer look at the rules and regulations for cannabis licenses in Minnesota, click here.