Marijuana is now legal for adults 21 and older to possess and use in Minnesota, as the state became the 23rd in the country to legalize marijuana for adult use. On May 30, 2023, Minnesota Governor Tim Walz signed an expansive cannabis legalization bill into law, allowing the adult use of cannabis for adults 21 and older beginning on August 1, 2023.

The legislation allows Minnesotans 21 and older to possess and use certain amounts of cannabis and cannabis products. Specifically, adults 21 and older are now allowed to possess or transport up to 2 ounces of cannabis flower, 8 grams of concentrate, and 800 milligrams of edible product (including low-potency hemp-derived product). An adult who is at least 21 years old may also possess up to two pounds of cannabis flower in a private residence and grow a limited number of cannabis plants at home.

The legalization legislation established a new Office of Cannabis Management (OCM) in Minnesota. This office will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and lower-potency hemp edibles) and license adult-use cannabis businesses, including retail dispensaries. Notably, the legislation proposes that retail sales for adult-use cannabis in Minnesota (except for tribal nations) will begin in the first quarter of 2025.

The legalization legislation established the following types of licenses (Note: Applications for business licenses will be available once rulemaking is complete. OCM expects applications for licenses to be available in early 2025.):

• Cannabis Microbusiness – application fee $500; no initial license fee; renewal license fee $2,000.
• Cannabis Mezzobusiness – application fee $5,000; initial license fee $5,000; renewal license fee $10,000.
• Cannabis Cultivator – application fee $10,000; initial license fee $20,000; renewal license fee $30,000.
• Cannabis Manufacturer – application fee $10,000; initial license fee $10,000; renewal license fee $20,000.
• Cannabis Retailer – application fee $2,500; initial license fee $2,500; renewal license fee $5,000.
• Cannabis Wholesaler – application fee $5,000; initial license fee $5,000; renewal license fee $10,000.
• Cannabis Transporter – application fee $250; initial license fee $500; renewal license fee $1,000.
• Cannabis Testing Facility – application fee $10,000; initial license fee $10,000; renewal license fee $20,000.
• Cannabis Event Organizer – application fee $750; initial license fee $750.
• Cannabis Delivery Service – application fee $250; initial license fee $500; renewal license fee $1,000.
• Lower-Potency Hemp Edible Manufacturer – application fee $250; initial license fee $1,000; renewal license fee $1,000.
• Lower-Potency Hemp Edible Retailer – application fee $250 per retail location; initial license fee $250 per retail location; renewal license fee $250 per retail location.
• Medical Cannabis Cultivator – application fee $250; no initial license fee; no renewal license fee.
• Medical Cannabis Processor – application fee $250; no initial license fee; no renewal license fee.
• Medical Cannabis Retailer – application fee $250; no initial license fee; no renewal license fee.
• Medical Cannabis Combination Business – application fee $10,000; initial license fee $20,000; renewal license fee $70,000.

The legislation prioritizes applications for business licenses from people who are considered social equity applicants, which includes people who were convicted of possessing or selling cannabis; family members of someone convicted of possessing or selling cannabis; service-disabled veterans, current or former members of the national guard, or any military veteran or current or former member of the national guard who lost honorable status due to an offense involving the possession or sale of cannabis; residents for at least five years of a neighborhood that experienced a disproportionately large amount of cannabis enforcement; emerging farmers; and residents of at least five years of census tracts with high poverty rates.