MINNEAPOLIS (FOX 9) – The rules governing recreational cannabis in Minnesota are now in effect, meaning the state can start moving forward with issuing business licenses.

New cannabis rules in effect

What we know:

The Minnesota Office of Cannabis Management announced on Monday that its final cannabis rules had been published in the state register. The rules were approved by an administrative judge earlier this month.

This means the state can now move forward with the next steps in the cannabis rollout.

Local perspective:

Cannabis officials say the office can begin issuing business licenses to applicants who’ve completed the application steps. Social equity applicants will be first in line to get “uncapped” licenses, which include applicants looking to start a microbusiness, wholesaler, transporter, testing facility, and delivery service.

Delays in MN rollout

What we don’t know:

While the state can now begin issuing licenses, it doesn’t appear any applicants have made it through the state process.

A person working through the application process tells FOX 9’s Corin Hoggard that license applicants are still waiting for the state to tell them they’ve reached Step 3.

The insider says forms for Step 3 aren’t yet available through the state either. That applicant thinks it could take the state at least another month to complete the application process.

What’s not included:

Lotteries will need to be held for licenses with caps, which include: 

• Mezzobusiness (100 licenses available)
• Cultivator (50 licenses)
• Manufacturer (24 licenses)
• Retailer (150 licenses)

The caps are in place through July 1, 2026, when the office will review the market.

When will cannabis businesses be ready in MN?

What we don’t know:

Even when licenses are actually issued, we still don’t know how long it will take for Minnesota cannabis businesses to get up and running. The fly in the ointment is a state requirement that cannabis businesses use Minnesota-grown products.

Microbusinesses are allowed to grow, manufacture cannabis products and run a single retail location. But, large-scale cultivator licenses are capped. So, even when the lotteries are completed, it will still take time for cultivators to grow the cannabis needed to supply the Minnesota market.

Last month, the Office of Cannabis Management said the state would likely need “1.5 to 2 million square feet of canopy” to meet Minnesota’s demand for cannabis products. Currently, there is about 60,000 square feet.