Minnesota’s cannabis industry just crossed a major milestone. The Office of Cannabis Management (OCM) announced that the final rules governing the state’s adult-use market have officially been published in the Minnesota State Register—greenlighting the next phase in launching this highly anticipated industry.
Approved without revision by an administrative law judge on April 2, the rules are now in full effect, allowing OCM to begin issuing business licenses to qualified applicants.
“The adoption of rules is the most significant step to launching the cannabis market because the office cannot issue business licenses until they are in place,” said Interim Director Eric Taubel. “The judge’s approval of our proposed rules without changes shows that we did our work to engage with the prospective cannabis business community and put together a reasonable structure for ensuring consistency, safety, and equity in Minnesota’s cannabis industry.”
Currently, more than 1,000 individuals have qualified for social equity licenses, with a large portion applying for license types not capped by state law—such as microbusinesses, wholesalers, transporters, testing facilities, and delivery services. Over 600 of those applicants advanced through last fall’s license pre approval phase, putting them first in line to receive full business licenses once remaining application requirements—like background checks and labor agreements—are met.
“It was important for us to preserve early-mover advantages for social equity applicants envisioned by the Legislature,” said Jess Jackson, OCM’s director of social equity. “By ensuring the applicants who qualified during license pre-approval have the first chance at licenses once rules are approved, we are continuing to prioritize social equity in every stage of licensing.”
Other license types—cultivator, mezzo business, manufacturer, and retailer—are capped under state statute and will be distributed via lotteries this summer. Separate lotteries will be conducted for social equity applicants and general applicants. Qualified individuals not selected in the initial social equity round will receive a second chance in the general applicant pool for any remaining licenses.
An Inclusive and Transparent Rulemaking Process
The road to rule adoption wasn’t rushed. Nearly 200 qualified applicants for uncapped license types now stand to benefit from a multistep, community-informed process. OCM worked closely with stakeholders across Minnesota and beyond, conducting public surveys, hosting meetings, and consulting with cannabis regulators from other states.
A preliminary draft of the rules was released for community feedback in summer 2024, followed by a formal 30-day comment period from January 13 to February 12, 2025. After refining the draft based on input from industry leaders, equity advocates, and residents, the rules were submitted to the Office of Administrative Hearings and approved earlier this month.
The final version is now live on OCM’s Rulemaking webpage, bringing Minnesota one step closer to opening its adult-use cannabis market.
The Minnesota State Register—published weekly—serves as the official record for executive branch updates and is the platform where these rules were officially adopted.
Read More: OCM News Release