The Minnesota Office of Cannabis Management (OCM) announced today it has submitted its proposed rules governing legal cannabis for final approval – the next step in launching Minnesota’s new adult-use cannabis industry.
In drafting the rules, OCM conducted a series of surveys that focused on specific rulemaking topics and held meetings with partners and interested parties, including cannabis management offices from other states. OCM can begin issuing cannabis business licenses once the rules are formally adopted.
“Our timeline for launching the adult-use market has forecasted completing rules by the end of first quarter 2025,” said OCM Interim Director Eric Taubel. “With the rules now in the hands of an administrative law judge for final approval, we’ve reached a crucial milestone. Following approval, prospective businesses will be able to complete their final steps and receive a cannabis license.”
Rulemaking is a multistep process involving substantial public input. OCM shared a preliminary draft of the proposed rules with the public seeking feedback in summer 2024. After incorporating changes, OCM posted its formal draft for public comment for 30 days from Jan. 13 to Feb. 12. The proposed rules submitted to the administrative law judge (ALJ) today include changes resulting from feedback from the public.
“These rules lay the foundation to ensure Minnesotans can have confidence in a safe, well-regulated cannabis market,” Taubel said.
The ALJ has 14 calendar days to approve, approve with changes, or disapprove the draft rules. Once approved by the ALJ, the final rules will be published in the State Register, at which time they are adopted and in effect. If the ALJ requires changes to the draft rules, those changes will need to be resubmitted to the Revisor’s office for drafting into final form before publishing in the State Register.
Nearly 200 prospective business owners whose applications for uncapped license types (microbusiness, wholesaler, transporter, testing facility, and delivery service) were qualified during the license preapproval process are in position to receive licenses shortly after rules are adopted.
“The adoption of rules will mean that the social equity applicants who passed the application review last fall are ready to be the first wave of cannabis business owners in Minnesota,” said Jess Jackson, OCM director of social equity.
Qualified applicants in the four license types whose numbers are capped in state statute (cultivator, mezzobusiness, manufacturer, and retailer) will be subject to a series of lottery drawings for the distribution of these licenses. Lotteries for each license type will be conducted later this year for both social equity applicants and general applicants. If not selected in the first lottery, qualified social equity applicants will have another opportunity to be entered into a second lottery along with the general applicants for the remaining licenses available.
