Minnesota Cannabis Laws

• Social Equity License Pre-Approval Application Window: On July 24, the OCM began accepting applications for cannabis business license preapproval from approved social equity applicants. The deadline to submit is August 12th, and after a vetting process, qualified applicants will be placed in a lottery, with licenses to be awarded this fall.
• Dispensary Delays: Most legal dispensaries won't open until at least early 2025 due to the need for a comprehensive licensing system, causing the delay in recreational cannabis sales.
• Cannabis Tax: A 10 percent tax is imposed on retail cannabis products in Minnesota, which is lower than in many other legal cannabis markets. Eighty percent of the tax revenue will cover state regulation costs; the remaining 20 percent will go to local governments.
• Continuation of Medical Marijuana System: The state's medical marijuana system will continue alongside recreational cannabis sales.
• CBD Dispensaries: CBD has been legal in Minnesota for a few years, and many of these dispensaries will be the first ones to transition to selling THC as well.
• Tribal Sovereignty: Native American tribal nations in Minnesota, being sovereign, can operate independently from state laws and regulations and have started opening dispensaries.
• First Recreational Dispensary: The first recreational marijuana dispensary, NativeCare, opened on August 1, 2023, on the Red Lake Nation's land.
• Tribal Exemptions: Products sold on tribal land are exempt from state taxes, but tribal governments may impose their own taxes. The Red Lake Nation is not charging taxes, as all profits go directly to the tribe.
• Tax Revenue Allocation: Tax revenue from cannabis sales will fund the Office of Cannabis Management and various initiatives, with $21.6 million allocated for the first year and $17.9 million for the following year.
• Use of Tax Revenue: Tax revenue will be used for public health awareness campaigns, drug recognition evaluator training, startup funding for new cannabis retailers and producers, expunging prior low-level marijuana charges, and research on cannabis and roadside testing for impairment.
• Watch a recording of the latest information session by the OCM here.

• The OCM has posted the first draft of proposed Minnesota cannabis industry rules. You can view the draft rules and provide feedback via the OCM website until August 30th.
• Minnesota's regulatory framework for adult-use, medical, and low-potency hemp edibles will evolve with input from communities across the state.
• Minnesota's Medical Cannabis Program will transition from the Minnesota Department of Health to the Office of Cannabis Management, effective March 1, 2025. Medical cannabis product sales will not be subject to taxation.
• Legal Retail sales of adult-use cannabis in Minnesota are scheduled to commence in the first quarter of 2025, as proposed by the legislation.
• Starting from August 1, 2023, individuals aged 21 and older in Minnesota can legally possess and use specific quantities of cannabis and cannabis products, though federal property remains off-limits.
• A 10% tax will be applied to cannabis product sales in addition to standard state and local sales taxes. There will be no separate cannabis-specific tax at the local level.

To help you navigate Minnesota's cannabis dispensary laws, here are some key laws and regulations you should be aware of:

• Full Decriminalization: Effective August 1, 2023, cannabis is fully decriminalized for individuals aged 21 and older, allowing possession, use, and home cultivation.
• Possession and Transport Limits: Individuals aged 21 and older can possess and transport up to 2 ounces of cannabis flower in public, up to 2 pounds in their private residence, up to 8 grams of adult-use concentrate, and edible cannabis products with a combined THC content of 800 milligrams or less.
• Home Cultivation: Adults can grow up to eight cannabis plants at their primary residence, with a maximum of four mature, flowering plants, provided they are in an enclosed, locked space not visible to the public.
• Authorized Usage Locations: Cannabis use is allowed on private property (unless prohibited by the property owner), private residences, and places with approved licenses or event permits. It cannot be used while operating a motor vehicle or heavy machinery.
• Prohibited Locations: Cannabis use and possession are prohibited in specific areas, including public schools, state correctional facilities, places where minors may inhale cannabis vapor, federal properties, federally subsidized housing, employer premises, and multifamily housing buildings for smoking or vaping. Daycares must disclose cannabis policies to parents. Local ordinances may further restrict public consumption.

In Minnesota, as of August 1, 2023, individuals aged 21 and older can consume cannabis for recreational use. The limits for cannabis possession and use are as follows:

• Possess or transport up to 2 ounces of cannabis flower in a public place.
• Possess up to 2 pounds of cannabis flower in a person's private residence.
• Possess or transport up to 8 grams of adult-use concentrate.
• Possess or transport edible cannabis products or lower-potency hemp edibles infused with a combined 800 milligrams or less of THC.

These limits are for personal use and possession in compliance with the state's recreational cannabis laws.

Minnesota has a medical marijuana program that allows patients with specific qualifying medical conditions to access medical cannabis. As of my last knowledge update in September 2021, the qualifying conditions included:

• Cancer associated with severe/chronic pain, nausea, or severe vomiting, or cachexia, or severe wasting.
• Glaucoma.
• HIV/AIDS.
• Tourette's syndrome.
• Amyotrophic lateral sclerosis (ALS).
• Seizures, including those characteristic of epilepsy.
• Severe and persistent muscle spasms, including those characteristic of multiple sclerosis.
• Inflammatory bowel disease, including Crohn's disease.
• Terminal illness, with a life expectancy of less than one year, if the illness or its treatment produces one or more of the following: severe/chronic pain, nausea or severe vomiting, cachexia, or severe wasting.
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• Intractable pain.

Please note that the list of qualifying conditions for medical marijuana may have been updated since then. It's essential to check with the Minnesota Department of Health or a healthcare provider for the most current information.

Yes, home cultivation of cannabis is allowed in Minnesota for individuals aged 21 and older. The law permits the following:

• Up to eight cannabis plants, with no more than four being mature, flowering plants, may be grown at a single residence as long as it is at the primary residence of someone 21 or older.
• Plants must be in an enclosed, locked space that is not open for public view.

This provision allows adults to cultivate their cannabis plants for personal use within specified limits.

Cannabis consumption in Minnesota is subject to certain restrictions:

• Cannabis can be used by people 21 and older on private property (unless the property owner prohibits cannabis use).
• It can be consumed in private residences.
• Consumption is permitted at places with approved licenses or event permits, though as of the provided information, no licenses or event permits are available.
• Cannabis cannot be used when operating a motor vehicle or heavy machinery.
• Consumption is prohibited in specific locations, including public schools, state correctional facilities, areas where the smoke or vapor could be inhaled by a minor, federal property, federally subsidized housing, and on an employer's premises or while operating their vehicles, machinery, or equipment.
• Smoking or vaping adult-use cannabis products is prohibited in multifamily housing buildings.
• Owners of daycares must disclose if they permit cannabis use outside of their normal business hours.

It's important to note that local communities may have additional ordinances that prohibit smoking or vaping cannabis in public places, so it's advisable to check local regulations as well.

In Minnesota, the state agency responsible for cannabis licensing and regulation is the "Office of Cannabis Management" (OCM). The OCM will henceforth oversee the licensing and regulation of both adult-use (recreational) and medical cannabis businesses in the state

In Minnesota, individuals and entities interested in obtaining a marijuana business license must meet specific eligibility criteria. Applicants must:

• Be at least 21 years old.
• Pass background checks with no disqualifying criminal convictions.
• Meet residency requirements outlined by the state.
• Comply with any additional requirements set by the OCM.

Obtaining an adult-use marijuana retail license in Minnesota involves several steps:

• Preparation: Before applying, thoroughly research the legal requirements and regulations. Prepare a detailed business plan outlining your dispensary's operations, security measures, and compliance strategies.
• Application Submission: Submit an application to the Minnesota Office of Cannabis Management (OCM) during open application periods. Pay the required application fee, which varies depending on the license type.
• Background Check: All applicants will undergo a background check to ensure they meet the eligibility criteria, including criminal history checks.
• Public Notice: The applicant must provide public notice of the intent to open a dispensary, allowing the community to voice concerns or support.
• Review Process: The OCM will review applications, and successful applicants will receive provisional licenses.
• Inspection: The OCM will conduct inspections to ensure compliance with safety and security standards.
• Final Approval: After successful inspections, the OCM grants final licenses.

The costs associated with applying for an adult-use cannabis retail license vary depending on the license type and may include:

• Application fees differ for each license category.
• Costs related to securing a suitable location.
• Legal and consulting fees for application assistance.
• Costs for background checks and fingerprinting.
• Compliance and security infrastructure expenses.

Learn more about the cost of opening a dispensary here.

Minnesota has specific regulations regarding the location of marijuana dispensaries and retail establishments. Dispensaries must be:

• At least 500 feet away from schools, public parks, and libraries.
• Sited in areas zoned for commercial or industrial use.
• Compliant with any local zoning regulations.

Licensed cannabis retailers in Minnesota can sell to individuals aged 21 and older or patients with a valid medical marijuana card. It is illegal to sell to minors or anyone who cannot provide valid identification proving their age.

Licensed retailers in Minnesota can sell a variety of cannabis products, including:

• Cannabis flower
• Cannabis concentrates
• Edible cannabis products
• Lower-potency hemp edibles
• Cannabis paraphernalia

Yes, a dispensary in Minnesota can sell both medical marijuana and recreational cannabis products. However, the two types of products must be distinguished and kept separate to ensure compliance with regulations.

At the point of sale, Cannabis sales in Minnesota are subject to a 10% cannabis tax, which is in addition to standard state and local sales tax rates. However, medical cannabis product sales are exempt from this tax.

There are no details yet about the delivery or online sales for recreational cannabis products in Minnesota. The legislation might evolve, so it's essential to stay updated on any changes regarding these sales channels.

Minnesota enforces strict packaging and labeling requirements to ensure consumer safety and information transparency. Cannabis products must be:

• Sold in child-resistant packaging.
• Clearly labeled with THC content and other relevant information.
• Include warnings about the potential health risks of cannabis use.
• Adhere to any additional packaging and labeling rules set by the OCM.

Advertising and marketing for cannabis products in Minnesota are subject to various restrictions, including:

• Prohibition of advertising to minors.
• Prohibition of false or misleading advertising.
• Restrictions on advertising in places where minors are likely to be present.
• Compliance with state advertising regulations.

For tracking, reporting, and inventory control requirements for cannabis retailers in Minnesota, keep checking the official website of the Office of Cannabis Management (OCM) for the most up-to-date and specific information, as they'll get released with time.

Yes. Cova's Cannabis Dispensary POS Software and inventory management system includes all the features needed to keep cannabis retailers compliant, including:

• ID scanner for age and card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement.

Navigating the regulatory landscape for establishing a compliant cannabis dispensary in Minnesota requires careful planning and adherence to state laws and regulations. As the industry evolves, staying informed about updates and changes in legislation is crucial to ensuring the success and compliance of your cannabis retail business. Sign up below for regular updates.

• How to Open a Cannabis Dispensary in Minnesota
• How Much Does it Cost to Open a Cannabis Dispensary in Minnesota?
• Cannabis Dispensary Case Studies

In conclusion, understanding Minnesota's cannabis dispensary laws is essential for both consumers and dispensaries. Once a legal framework for cannabis retailers is developed in 2024, it'll be crucial to stay updated on the latest regulations and compliance requirements for dispensaries in Minnesota. By adhering to the law, you can responsibly navigate the world of recreational cannabis in Minnesota and contribute to a thriving legal industry.