Governor Tim Walz has signed into law legislation that makes several significant changes to the state’s recreational marijuana law, which has been in place for a year.
Later this year, Minnesota will permit certain commercial cultivators to begin growing marijuana in anticipation of the launch of the state’s retail market. Cannabis business licenses will be awarded through a vetted lottery system, replacing the previous merit-based application process.
The bill outlines a process for social equity applicants to be preapproved for cannabis business licenses this year, while others will have to wait until 2025 to apply. Social equity applicants include individuals or family members of those previously convicted of marijuana offenses, military veterans, residents of high-poverty areas, and “emerging farmers” who have managed a small farm for at least three years.
Preapproved social equity applicants may start cultivating marijuana this year to help establish the state’s supply chain, provided they obtain local zoning approval and adhere to Minnesota’s existing medical cannabis cultivation rules. As recreational cannabis cultivation rules are still being finalized, regulators will use the medical rules in the interim.
Cultivators beginning this year will not be allowed to process or sell cannabis until licenses are more widely issued next year.
The state’s Office of Cannabis Management will implement a “qualified lottery” next year to distribute cannabis business licenses. Applicants meeting minimum qualifications, such as securing property and developing operational plans, will be entered into the lottery, with winners selected at random.
The bill also sets caps on certain license types, such as retail dispensaries, during the market’s first two years to prevent oversaturation. Additionally, it permits cities to open municipal cannabis stores without participating in the lottery, allows doctors to recommend cannabis for any condition, and enables registered medical cannabis patients to designate a caregiver who can grow up to eight cannabis plants on their behalf.
The provisions in Minnesota’s marijuana law that allows those 21 and older to legally possess marijuana went into effect on August 1.
