Minnesota Legalizes Adult-Use Cannabis: A Comprehensive Guide to Licensing

On May 30, 2023, Minnesota legalized adult-use cannabis with Governor Tim Walz’s signing of HF 100
Cannabis Finance and Policy Bill, popularly known as Minnesota’s Cannabis Legalization Act (“the Act”).
The state intends to hold a scored application process with an emphasis on social equity, currently slated
for Spring/Summer 2024. The total number of licenses available will be determined by the Office of
Cannabis Management as the program is developed. The new law enables a variety of commercial
cannabis businesses and creates a separate and unique lower-potency hemp edibles market.

The statutory provisions go into effect for adult-use cannabis on July 1, 2023, with subsequent provisions
regulating the medical cannabis and hemp-derived edible markets (currently regulated under Sec. 151.72
and Article 7 of the Act) taking effect on March 1, 2025. Rulemaking for this new program will occur over
the next few months, providing additional insight and nuance to the statutory provisions outlined here.
Below is an overview of Minnesota’s adult-use cannabis program rules requirements, and details made
available in the Act with emphasis on the licensing process. Additional information regarding the hemp
and medical cannabis business is available upon request.

Regulatory Agencies

The Act formalizes the existence and authority of the Office of Cannabis Management (“OCM”), which
has the exclusive authority to develop, maintain, and enforce an organized system of regulation for the
cannabis industry and hemp consumer industry. The OCM is responsible for promoting public health and
welfare, eliminating the illicit market, meeting market demands, promoting a craft industry, and
prioritizing social equity. The OCM will promulgate rules; issue and renew licenses; establish and update
standards for testing, packaging, and labeling; impose civil and administrative penalties; establish limits
on potency; and perform additional duties required under the Act.

The OCM will be governed by an industry and governmental stakeholder consortium known as the
Cannabis Advisory Council (“the Council”) which will be appointed by the Governor with advice from the
legislature. The Council will be comprised of 51 representatives from across 38 groups including major
governmental departments, healthcare and policy institutions, community representatives, native tribe
representation, and various experts appointed by the governor with an interest in adult-use cannabis. The
Council will meet in accordance with provisions provided in Chapter 13D of the Minnesota Code.

Additionally, the OCM is tasked with establishing a Division of Social Equity (“DSE”). At a minimum, the
DSE must: (1) administer grants to communities with disproportionate impacts from cannabis prohibition
and usage to promote economic development, improve social determinants of health, provide violence
prevention services, support early intervention programs; and promote community stability and safety;
(2) act as an ombudsperson for OCM to provide information, investigate complaints, and provide/facilitate
dispute resolutions; and (3) report to OCM the status of complaints and social equity in the industry.

Available License Types

Cannabis license authorizations granted by the OCM are divided between ten specific license classes for
adult-use cannabis, four license classes for medical cannabis, and two license classes for lower-potency
hemp edibles. Except in the case of mezzobusinesses, microbusinesses, and existing medical licensees,
vertical integration is prohibited.

Per 342.01 Subd. 14 of the Act, the following classes of licenses will be made available in the forthcoming
licensing rounds:

Cannabis Microbusinesses (Sec. 342.28)

Cannabis microbusiness size limits:

Indoor Cultivation: 5,000 square feet of mature, flowering plant canopy.
Outdoor Cultivation: One-half acre of mature, flowering plants (OCM may later expand
this up to one full acre).
Processing: OCM will establish limits on the manufacturing of cannabis products, lower-
potency hemp edibles, and hemp-derived consumer products deemed equivalent to the amount of flower harvested from a 5,000 sq/ft grow.
Dispensing: One retail location.

Licenses:

No person, cooperative, or business may hold more than one microbusiness.
A cannabis microbusiness may also hold a cannabis event organizer license.
Except for a cannabis event organizer license, no person, cooperative, or business
holding a microbusiness license may own or operate any other cannabis or hemp business. These limitations apply to every cooperative member or every director, manager, and general partner of a cannabis business.

Activities authorized under a microbusiness license include the ability to:

Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower.
Make cannabis concentrate.
Make hemp concentrate, including hemp concentrate with delta-9 THC concentration of more
than 0.3% by dry weight.
Manufacture artificially derived cannabinoids
Manufacturer adult-use cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products for public consumption;
Purchase immature cannabis plants and seedlings and cannabis flower from another cannabis
microbusiness, mezzobusiness, manufacturer, or wholesaler;
Purchase hemp plant parts and propagules from a licensed industrial hemp grower.
Purchase hemp concentrate from a licensed industrial hemp processor.
Purchase cannabis concentrate; hemp concentrate, and artificially derived cannabinoids from
another cannabis microbusiness, mezzobusiness, manufacturer, or wholesaler for use in
manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products.
Package and label adult-use cannabis flower and products, lower-potency hemp edibles, and
hemp-derived consumer products for sale to customers.
Sell immature cannabis plants and seedlings, adult-use cannabis flower and products, lower-
potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers.
Operate an establishment that permits on-site consumption of edible cannabis products and
lower-potency hemp edibles.
Perform other actions approved by OCM.

Cannabis Mezzobusinesses (Sec. 342.29)

Cannabis mezzobusiness size limits:

Indoor Cultivation: 15,000 square feet of mature, flowering plant canopy.
Outdoor Cultivation: One acre of mature, flowering plants (OCM may later expand this
to up to three total acres).
Processing: OCM will establish limits on the manufacturing of cannabis products, lower-
potency hemp edibles, and hemp-derived consumer products deemed equivalent to the amount of flower harvested from a 15,000 sq/ft grow.
Dispensing: Up to three retail locations.

Licenses:

No person, cooperative, or business may hold more than one mezzobusiness.
A cannabis mezzobusiness may also hold a cannabis event organizer license and
a medical cannabis retailer license.
Except for a cannabis event organizer and medical cannabis retailer license, no
person, cooperative, or business holding a mezzobusiness license may own or operate any other cannabis or hemp business or hold more than one mezzobusiness license. These limitations apply to every cooperative member or every director, manager, and general partner of a cannabis business.

Activities authorized under a mezzobusiness license include the ability to:

Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower
for use as adult-use cannabis flower or products.
Grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower
for use as medical cannabis flower or products.
Make cannabis concentrate.
Make hemp concentrate, including hemp concentrate with delta-9 THC concentration of more
than 0.3% by dry weight.
Manufacture artificially derived cannabinoids.
Manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products for public consumption.
Purchase immature cannabis plants and seedlings and cannabis flower from another cannabis
microbusiness, mezzobusiness, manufacturer, or wholesaler.
Purchase cannabis or hemp concentrate and synthetically derived cannabinoids from a cannabis
microbusiness, another mezzobusiness, manufacturer, or wholesaler for use in manufacturing
adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products.
Purchase hemp plant parts and propagules from a licensed hemp grower licensed under.
Purchase hemp concentrate from a licensed industrial hemp processor licensed.
Package and label adult-use cannabis flower and products, lower-potency hemp edibles, and
hemp-derived consumer products for sale to customers.
Sell immature cannabis plants and seedlings, adult-use cannabis flower and products, lower-
potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and customers.
Perform other actions approved by OCM.

Cannabis Cultivators (Sec. 342.25)

Cannabis cultivator size limits:

Indoor Cultivation: 30,000 square feet of mature, flowering plant canopy.
Outdoor Cultivation: Up to two acres (OCM may later expand this up to four acres).

Licenses:

OCM may limit the number of cultivator licenses a person or business may hold.
A cannabis cultivator license may also hold a cannabis manufacturing, medical cannabis cultivator, medical cannabis producer, and cannabis event organizer license and a license to grow industrial hemp.
Except for the licenses listed above, no person, cooperative, or business holding a cannabis cultivator license may own or operate any other cannabis or hemp business. This applies to every cooperative member or every director, manager, and general partner of a cannabis business.Activities authorized under a cultivator license include the ability to:
Grow cannabis plants within the approved amount of space from see or immature plant to mature plant.
Harvest cannabis flower from a mature plant.
Package and label immature cannabis plants and seedlings and cannabis flower for sale to other cannabis businesses.·
Transport cannabis flower to a cannabis manufacturer located on the same premises.
Perform other OCM-approved actions.

Cannabis Manufacturers (Sec. 342.31)

Cannabis manufacturer size limits:

Products: The OCM will establish reasonable limitations on the manufacturing of cannabis products, lower-potency hemp edibles, or hemp-derived consumer products before issuing licenses.

Licenses:

OCM may limit the number of manufacturer licenses a person or business may hold.
A manufacturing license may also hold a cannabis cultivator, medical cannabis processor, medical cannabis cultivator, and cannabis event organizer license.
Except for the licenses listed above, no person, cooperative, or business holding a cannabis manufacturing license may own or operate any other cannabis or hemp business. This applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Activities authorized under a manufacturer license include the ability to:

Purchase cannabis flower ad products, hemp plant parts, hemp concentrate, and artificially derived cannabinoids from a cannabis microbusiness, mezzobusiness, cultivator, another manufacturer, or wholesaler.
Purchase hemp plant parts and propagules from a licensed industrial hemp grower.
Purchase hemp concentrate from a licensed industrial hemp processor.
Accept cannabis flower from unlicensed persons who are at least 21 years of age provided the licensee does not accept more than two ounces from an individual on a single occasion.
Make cannabis concentrate.
Make hemp concentrate, including concentrate with delta-9 THC of more than 0.3% measured by weight.
Manufacture artificially derived cannabinoids.
Manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption.
Package and label adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers
Sell cannabis or hemp concentrate, artificially derived cannabinoids, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to other cannabis businesses.
Perform other actions approved by OCM.

Cannabis Retailers (Sec. 342.32)

Cannabis retailer size limits:

Establishments: A cannabis retailer may operate up to five retail locations.
Location: A retailer cannot own or operate more than one retail business in one city and three retail businesses in one county.
Licenses: A retailer license may also hold a cannabis delivery service, medical cannabis retailer, and cannabis event organizer license.
Except for the licenses listed above, no person, cooperative, or business holding a cannabis retailer license may own or operate any other cannabis or hemp business. This applies to every cooperative member or every director, manager, and general partner of a cannabis business.

A cannabis retailer license entitles the license holder to:

Purchase immature cannabis plants and seedlings, cannabis flower and products; lower-potency hemp edibles; and hemp-derived consumer products from cannabis microbusinesses, cultivators, manufacturers, and wholesalers.
Purchase lower-potency hemp edibles from a licensed lower-potency hemp edible manufacturer.

Sell the following products to customers:

Immature cannabis plants and seedlings.
Adult-use cannabis flower and products.
Lower-potency hemp edibles.
Hemp-derived consumer products.
Perform other actions authorized by OCM.

All adult-use cannabis productsmust be obtained from a business licensed by OCM and meet all applicable packaging and labeling requirements.

Purchase Limits
Cannabis retail licensee may sell up to two ounces of adult-use cannabis flower or hemp-derived consumer products consisting primarily of hemp plant parts; up to eight grams of adult-use concentrate or hemp-derived consumer products consisting primarily of hemp concentrate or artificially derived cannabinoids; and edible cannabis products and lower-potency hemp edibles infused with up to 800 milligrams of THC during a single transaction to a single customer.

Edible adult-use cannabis products and hemp-derived consumer products intended to be eaten cannot include more than ten milligrams of THC per serving and a single package cannot include more than 200 milligrams of THC. A package can contain multiple servings of ten milligrams of THC provided each serving is indicated by scoring, wrapping, or other indicators of individual serving sizes.

Edible adult-use cannabis products and hemp-derived consumer products intended to be consumed as beverages cannot includemore than ten milligrams of THC per serving. A single container cannot contain more than two servings.

Permitted Non-Cannabis Products

Cannabis retail licensees may sell cannabis paraphernalia, including but not limited to childproof packaging containers and other devices to ensure safe storage and monitoring of products. A cannabis retail licensee authorized to sell retail cannabis flower may also sell hemp-derived topical products and non-alcoholic drinks in sealed containers; books and videos on cultivation and use of products; information and educational magazines and publications; bags to carry items; clothing marked with a specific name, brand, or identifying logo of the retailer; hemp fiber products and products that contain hemp grain; and products that detect the presence of fentanyl.

Hours of Operation

Under the Act, cannabis retail licensees cannot sell products between 2:00 a.m. and 8:00 a.m. from Monday-Saturday and between 2:00 a.m. and 10:00 a.m. on Sundays.
A city or county may adopt an ordinance to prohibit sales for any period between 9:00 p.m. and 2:00 a.m. the following day or between 8:00 a.m. and 10:00 a.m. on the days of Monday through Saturday.
Cannabis retail licensees cannot be open to the public or sell other non-cannabinoid products at times when the cannabis business is prohibited from selling cannabis/hemp products.

Cannabis Wholesalers (Sec. 342.33)

Cannabis wholesaler size limits:

Licenses:

OCM may limit the number of wholesaler licenses a person or business may hold.
A wholesaler license may also hold a transporter license, delivery service, and cannabis event organizer license.
Except for the licenses listed above, no person, cooperative, or business holding a cannabis wholesaler license may own or operate any other cannabis or hemp business. These limits apply to every cooperative member or every director, manager, and general partner of a cannabis business

A cannabis wholesaler license entitles the license holder to:

Purchase immature cannabis plants and seedlings; cannabis flower and products; lower-potency hemp edibles; and hemp-derived consumer products from cannabis microbusinesses, cultivators, manufacturers, and wholesalers.
Purchase hemp plant parts and propagules from licensed industrial hemp growers.
Purchase hemp concentrate from a licensed industrial hemp processor.
Sell immature cannabis plants and seedlings, adult-use cannabis flower and products, lower-potency hemp edibles, and hemp-derived consumer products, to cannabis microbusinesses, mezzo businesses, manufacturers, and retailers.
Sell lower-potency hemp edibles to lower-potency hemp edible retailers.
Import hemp-derived consumer products and lower-potency hemp edibles that contain hemp concentrate or artificially derived cannabinoids that are derived from hemp plants or hemp plant parts.
Perform other actions authorized by OCM.

Cannabis wholesalers may purchase and sell other products or items if they have the proper license and products that do not require a license, including but not limited to industrial hemp products, products that contain hemp grain, hemp-derived topical products, and cannabis paraphernalia.

A cannabis wholesaler that imports lower-potency hemp edibles or hemp-derived consumer products, other than hemp-derived topical products, that are manufactured outside of Minnesota with the intent to sell the products to a cannabis microbusiness, mezzobusiness, retailer, or lower-potency hemp edible retailer must obtain a hemp-derived product importer endorsement from OCM and abide by the additional import requirements established by the Act and OCM.

Cannabis Transporters (Sec. 342.36)

Cannabis transporter size limits:

Licenses:

OCM may limit the number of transporter licenses a person or business may hold.
A transporter license may also hold a cannabis wholesaler, delivery service, and cannabis event organizer license.
Except for the licenses listed above, no person, cooperative, or business holding a cannabis transporter license may own or operate any other cannabis or hemp business. These limits apply to every cooperative member or every director, manager, and general partner of a cannabis business.

A cannabis transporter license entitles the licensee to transport immature cannabis plants and seedlings; cannabis flower and product; artificially derived cannabinoids; hemp plant parts; hemp concentrate; lower-potency hemp edibles; and hemp-derived consumer products from cannabis microbusinesses, mezzobusinesses, cultivators, manufacturers, wholesalers, lower-potency hemp edible manufacturers, medical retailers, medical processors, and industrial hemp growers to microbusinesses, mezzobusinesses, manufacturers, testing facilities, wholesalers, retailers, lower-potency hemp edible retailers, medical processors, medical retailers, and medical combination businesses and other actions approved by OCM.

Cannabis Testing Facilities (Sec. 342.37)

Cannabis testing facility size limits:

Licenses:

OCM may limit the number of testing facility licenses a person or business may hold.
A cannabis testing facility license may not own or operate any other cannabis or hemp business. This applies to every cooperative member or every director, manager, and general partner of a cannabis business.

A cannabis testing facility license entitles the licensee to obtain and test:

Immature cannabis plants and seedlings.
Flower, and product derived from cannabis flower.
Hemp plant parts.
Hemp concentrate.
Artificially derived cannabinoids.
Lower-potency hemp edibles.
Hemp-derived consumer products.

Product for testing may be transferred from cannabis microbusinesses, mezzobusinesses, cultivators, manufacturers, wholesalers, lower-potency hemp edible manufacturers, medical cultivators, medical processors, medical combination businesses, and industrial hemp growers.

Application Requirements for Adult-Use Cannabis Licenses (Sec. 342.14)

To become a license holder in the state of Minnesota, an individual or all individuals composing a business entity must:

Be at least 21 years of age.
If the applicant or license holder is a business entity, be incorporated in the state or otherwise formed or organized under Minnesota state law.
Have paid the applicable fee and license fee.
Not be employed by OCM or any state agency with authority under the Act.
Not be a licensed peace officer.
Never have had a license previously issued under the Act revoked.
Pass the criminal history check.
Have filed any previously required tax returns for a cannabis business.
Not employ an individual who is disqualified from working for a cannabis business.
Meet the ownership and operational requirements for the type of license sought.
Have paid and remitted any business taxes and other dues relating to the operation of a cannabis business.
Meet all other requirements under the law.

Application Minimum Requirements

At a minimum, at the time of application and each renewal, an applicant or licensee will be required to provide the OCM with the following information:

Name, address, and date of birth of the applicant.
Disclosure of ownership and control.
Bankruptcy disclosures (if a business, any officer, director, manager, or general partner).
Address and legal property description.
General description of location(s) for operations.

Includes the planned square feet of space for cultivation, wholesaling, and retailing, as applicable.

Security Plan.
Proof of trade name registration.
Business Plan.

Includes expected business size; anticipated growth; recordkeeping methods; knowledge/expertise; environmental plan; and relevant financial and operational components.

Labor peace agreement attestation.
Certification applicant will comply with OCM’s requirements for ownership and operations.
Identification of authority contact for OCM.
Agreement to respond to supplemental requests by OCM.

Applications may also include:

Proof that the applicant is a social equity applicant.
Description of the training and education provided to employees.
Business policies governing operations to ensure compliance with the Act.

Adult-Use Specific Application Requirements

Beyond the basic application requirements defined in Sec. 342.14, individuals or entities considering an adult-use cannabis business can expect to submit an application detailing additional licensing considerations in accordance with the license type being applied for. Depending on the license type, some considerations will include:

An Operating Plan that may include the following considerations:
Facility floorplan, with ventilation and filtration system diagram
Plans for wastewater and waste disposal for all cultivation/manufacturing activity.
Compliance plan for applicable building code, federal and state environmental law, and workplace safety requirements/policies.
Diversion prevention plan for unlicensed businesses and access by minors.
A Cultivation plan demonstrating the proposed size and layout of the facility to be used exclusively for cultivation including the total amount of plant canopy.
A Processing plan demonstrating all methods of extraction, concentration, and conversion to be used including all proposed volatile chemicals and catalysts involved in each process.

Each specific function of a cannabis mezzobusiness or microbusiness requires a specific endorsement subject to the rules set forth in the corresponding Sections of the Act:

Cultivation: Section 342.25
Extraction/Concentration: Section 342.26 Subdivisions 2 and 3
Production (Manufacturing): Section 342.26 Subdivisions 2 and 4
Retail (Dispensing): Section 342.27
Medical: Section 342.49 Paragraph D, 342.50 Paragraph C

IMPORTANT NOTE: Commitments made by an applicant are an ongoing material condition of maintaining and renewing the license.

Application Fee and License/Permit Fees

The OCM must require payment of application fees, initial licensing fees, and renewal licensing fees as provided below. The initial license fee includes the fee for initial issuance and the first annual renewal. Renewal fees will be charged at the time of the second renewal and each subsequent annual renewal thereafter. These fees do not preclude local governments from charging a retailer registration fee. Fees are non-refundable.

Ownership and Control Disclosure

Applicants must file and update as necessary disclosure of ownership and control. At a minimum, this disclosure will include:

Management structure, ownership, and control of the applicant or license holder.
Each cooperative member, officer, director, manager, general partner, or business entity and their names, titles, ownership percentage, and if the business has a parent company the name of the owners, board members, officers, and their ownership percentage in the parent company.
A statement from the applicant and/or entity (including every officer, director, manager, and general partner) as to whether they’ve held or currently hold an ownership interest in a cannabis business in Minnesota, the U.S., or any other country.
If a corporation, copies of article of incorporation and bylaws and any amendments to these documents.
Copies of the partnership agreement, operating agreement, or shareholder agreement.
Copies of promissory notes, security instruments, or other similar agreements.
Explanation of funding sources used to finance the business.
List of operating and investment accounts.
List of outstanding loans and financial obligations obtained for use in the business.

Quantities of Licenses to be Authorized

There is no set number or quota of licenses to be issued by the OCM, however, per the law, the OCM must issue the necessary number of licenses to ensure a sufficient supply of cannabis to meet demand, provide market stability, ensure a competitive market, and limit the sale of unregulated flower and products In additional to state license requirements, licenses are subject to approval by local units of government (a “LUG”) which cannot prohibit the possession, use, or transportation of cannabis. Per the law, there is to be no fewer than one retail authorization per 12,500 residents, with the exception given to the county rule expounded on below. Cannabis retailers include retail licensees, mezzobusinesses with a retail endorsement, and microbusinesses with a retail endorsement. A sample of projected retailers permitted for the top 20 most populous cities in Minnesota is shown below:

Additional Local Licensing Considerations

The OCM shall work to establish standardized procedures for LUG controls and provide policies and procedures for all compliance checks for licensed operators.
The OCM will confer with the local ordinance within 30 days of receipt of a license to address all identifying concerns, with the option for a local unit of government to interject its input.
LUGs have 30 days after receipt of an application from OCM to certify if a business complies with local zoning ordinances, fire and building codes.
If a county has at least one licensed retailer operator within a county for every 12,500 residents, a municipality within that county is no longer obligated to allow additional retailer registrations. This will allow some municipalities to prohibit retailer locations in limited circumstances.
License minimums are simply the floor for the total number of licenses allowed. These limits can be exceeded at the discretion of each LUG.
No person, cooperative, or business entity may own or operate more than one retail business within a single city and no more than three retail businesses in one county.
Any license in tribal territory must obtain formal tribal consent.

Locality Temporary Opt-Out

There is an opt-out clause that can prohibit or restrict development in a certain municipality until January 1, 2025, subject to a public hearing and the below considerations:

To qualify, a LUG must be conducting or has authorized a study to be conducted, or has scheduled a hearing for the purpose of considering the adoption or amendment of reasonable restrictions on the time, place, and manner of operation for a cannabis business.
The governing body of a LUG may adopt an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning process and for the consideration of the health, safety, and welfare of its citizens.
A public hearing must be held by the governing body of the LUG before adopting the interim ordinance.
The interim ordinance may regulate, restrict, or prohibit the operation of the cannabis business within the jurisdiction or a portion thereof until January 1, 2025.

Application Timeline

The Act as signed does not promulgate or require any strict timeline for publishing applications, accepting applications, reviewing the applications, or awarding licenses. Based on available information and the political climate in Minnesota, we are expecting licensing applications and awards to happen in Spring/Summer 2024.

Location Control

LUGs may establish setbacks and restrictions including a prohibition on any cannabis businesses operating within:
1000 feet to schools.
500 feet to a daycare, residential treatment facility, or an attraction within a public park that regularly attracts minors such as a playground or athletic field.
Municipalities can set reasonable rules and regulations for time, place, and manner of operation for cannabis businesses in their city provided the restrictions do not prohibit the establishment or operation of cannabis business.

Social Equity Criteria

Individuals will qualify as a social equity applicant if:

Convicted of an offense involving the possession or sale of cannabis/marijuana prior to May 1, 2023.
Had a parent, guardian, child, spouse, or dependent who was convicted of an offense involving the possession or sale of cannabis/marijuana prior to May 1, 2023.
Was a dependent of an individual who was convicted of an offense involving the possession or sale of cannabis/marijuana prior to May 1, 2023.
A service-disabled veteran, national guard member, or any military veteran or current or former national guard who lost honorable status due to a cannabis-related offense.
A resident for the last five years of one or more subareas that experienced a disproportionally large amount of cannabis enforcement as determined by OCM’s study pursuant to section 342.04.
Is an emerging farmer as defined in section 17.055(1) or
Has been a resident for the last five years of one or more census tracts where, as reported in the most recently completed census the poverty rate was 20% or more of the median family income did not exceed 80% of the statewide median family income, or if a metropolitan area, 80% of the median family income for that metropolitan area.

These qualifications apply to each individual applicant or in the case of a business entity, every cooperative member or director, manager, and general partner of the entity.

License Transfers

Licenses may be transferred subject to prior written OCM approval, which is granted at OCM’s discretion. Social equity licenses may only be transferred to another social equity applicant and must be reviewed by the DSE.

A new license must be obtained when:
The form of the licensee’s legal structure converts or changes to a different type of legal business structure, or
The licensee dissolves, consolidates, reorganizes, undergoes bankruptcy, insolvency, or receivership proceeds; merges with another legal organization; or assigns all or substantially all of its assets for the benefit of creditors.
Licenses must be renewed annually.
· Licensees may petition OCM to adjust the tier of license within a license category if the licensee meets all applicable requirements.
OCM may by rule permit the relocation of a licensed business, adopt requirements for a relocation application, establish standards for approval, and charge a fee not to exceed $250 to review and process the application.