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Opportunities in the Minnesota Cannabis Market

As of May 2023, Minnesota has passed a law legalizing adult-use cannabis. Signed by Governor Tim Walz, the law will go into effect on August 1st of this year. This new legislation creates the blueprint for adult-use cannabis in the state. A new Office of Cannabis Management will be established. This will regulate the cannabis business in the state, including the Medical Cannabis Program, hemp edibles, and adult use. It will also assist in issuing business licenses and how these enterprises can partake in the Minnesota cannabis market.

Current Status

Medical cannabis has been set in the state for some time. However, beginning on August 1, the enrollment fee for medical cannabis patients will be waived. Patients will also be able to conduct initial certification visits via telehealth after August 1. Patients can recertify their medical conditions every three years instead of annually, effective March 2025.

Additionally, beginning August 1, adult consumers 21 years and older can possess up to 2 ounces of cannabis in public and up to 2 pounds of cannabis in a private residence. Home cultivation will also be given private leeway. People 21 years or older can grow up to 8 plants at home – with no more than 4 plants to be matured. The plants would be required to grow in an enclosed, locked space that is not open to public view, much like a cultivation site.

Minnesota’s hemp program will remain unchanged. Hemp production will continue to be regulated by the Minnesota Department of Agriculture. This law will not impact hemp regulations. However, the adult-use legislation does create regulatory oversight for CBD products, including those produced via hemp. The Office of Cannabis Management, formerly the Minnesota Department of Health, will oversee this by 2025. Low-potency hemp operations currently in business need to register with the new Office of Cannabis Management by October 1, 2023.

It also calls for the expungement of criminal records for previous cannabis offenses as well as the creation of a Cannabis Expungement Board to expunge or resentence certain offenses. Cannabis offenses would not be counted against applicants seeking jobs and/or housing.

The legislation will also direct fees for people wishing to start specific cannabis-based businesses. Applications for new cannabis dispensary licenses are predicted to begin in Spring 2024. At a minimum, this would allow new dispensaries to start sales in January 2025.

The application process is judged one of two ways: either by a lottery (random) or by the highest score. Whichever method, applicants need to gather documents to submit for their license approval. A security plan is one document that will always be required. Minnesota state government will examine your security plan for topics such as secured storage and access controls.

Let Sapphire assist you in winning your cannabis license for the first time in the Minnesota cannabis market. Likewise, Sapphire can help you through the build-out process and operations phase once you have the golden ticket. No matter what stage you are in, Sapphire Risk can save your cannabis business time and money while securing your property.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 36 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!