Are you impacted by past cannabis prohibition and eager to participate in Minnesota’s burgeoning cannabis industry? Understanding the social equity verification process is crucial to ensure you meet all requirements and deadlines. This updated guide provides essential information, key dates, and actionable steps to help you successfully complete your verification as a cannabis social equity applicant in Minnesota.
Table of Contents
- Key Dates for Social Equity Verification in Minnesota
- Minnesota Social Equity Criteria
- Eligible License Types for Social Equity Applicants in Minnesota
- Application Requirements
- Application Process
- Conclusion
- FAQs
Key Dates for Social Equity Verification in Minnesota
To begin your journey as a social equity applicant in Minnesota’s cannabis industry, be sure to mark these critical dates on your calendar:
| Date | Event |
| January 15, 2025 | Social equity verification window opens |
| January 30, 2025 | Social equity verification window closes |
| February 18, 2025 | License application window opens for social equity and all other applicants |
| March 14, 2025 | License application window closes |
| May–June 2025 | Lottery for capped licenses (exact dates to be announced) |
Stay ahead by preparing early and ensuring all documentation is complete before these deadlines. Catalyst BC’s cannabis consultants are here to guide you every step of the way.
Minnesota Social Equity Criteria
To qualify as a social equity applicant in Minnesota, individuals must meet at least one of the following criteria:
- Was convicted of an offense involving the possession or sale of cannabis prior to May 1, 2023
- Had a parent, guardian, child, spouse, or dependent convicted of an offense involving the possession or sale of cannabis prior to May 1, 2023
- Was a dependent of someone convicted of an offense involving the possession or sale of cannabis prior to May 1, 2023
- Is a military veteran, including service-disabled veterans, or current/former members of the National Guard
- Is a military veteran or National Guard member who lost honorable status due to an offense involving the possession or sale of cannabis
- Has been a resident for the past five years in areas with:
- High cannabis enforcement rates as determined by federal or state studies or data*
- Poverty rate of 20% or more
- Median family income not exceeding 80% of the statewide median family income (or if in metropolitan area median, did not exceed the greater of 80% of the statewide median family income or 80% of the median family income for that metropolitan area)
- At least 20% of households receiving Supplemental Nutrition Assistance Program (SNAP) assistance
- Populations that experienced a high level of vulnerability, according to the Centers for Disease Control and Prevention’s Social Vulnerability Index
- *Due to the lack of relevant data, OCM was unable to conduct the study directed by Minnesota Statutes, section 342.04, paragraph (b), which identifies areas experiencing disproportionately high levels of cannabis enforcement. Recent changes to the law allow applicants who believe they meet this criterion to submit a study or report, based on federal or state data on arrests or convictions, to OCM. OCM will then evaluate the submitted data to determine if it meets the specified criteria.
- Has participated in farm operations for at least three years, providing the majority of day-to-day labor and management on a farm with gross sales between $5,000 and $100,000 in the previous year
Eligible License Types for Social Equity Applicants in Minnesota
Social equity applicants in Minnesota can apply for the following cannabis license types through the pre-approval process:
- Cannabis Microbusiness
- Cannabis Mezzobusiness
- Cannabis Cultivator
- Cannabis Manufacturer
- Cannabis Retailer
- Cannabis Wholesaler
- Cannabis Transporter
- Cannabis Testing Facility
- Cannabis Delivery Service
For more details on the application process for each license type, check out our comprehensive Minnesota Cannabis License Application Guide.
Application Requirements
When preparing your application, ensure you have the following documentation:
- Personal Information: Provide detailed personal information and supporting documentation.
- Residency Documentation: Submit proof of residency in a disproportionately impacted area.
- Criminal Record: Provide documentation related to any cannabis-related convictions, if applicable.
- Financial Information: Include financial disclosures that demonstrate eligibility for social equity programs.
Application Process
Follow these steps to complete your social equity verification and license application:
Verification
- When: Starts on January 15, 2025, via the OCM’s Accela citizen portal.
- Requirements:
- Ensure at least 65% of the business ownership is verified as social equity applicants.
- Complete the verification form and submit all necessary documentation.
Preparation
- Gather all required documents, including proof of residency, financial disclosures, and criminal records (if applicable).
Submission
- Deadline: Submit your verification documents by January 30, 2025.
License Application
- Window: Verified applicants can submit their cannabis business license applications between February 18 and March 14, 2025.
- Checklist: Make sure all materials—including worksheets and fees—are included.
Review and Lottery
- For licenses subject to statutory caps, applications will undergo review and be entered into a lottery scheduled for May–June 2025.
Conclusion
Minnesota’s commitment to social equity in its cannabis industry is reflected through these structured processes. By staying informed and preparing thoroughly, you can take full advantage of these opportunities and successfully complete your social equity verification.
For detailed guidance and personalized assistance, consider engaging with Catalyst BC’s experienced cannabis consultants, who specialize in navigating complex regulatory landscapes.
FAQs
Do I need to meet every single criterion for social equity verification?
No, you are only required to meet one criterion.
Do I need to have my social equity status verified in order to apply for license preapproval?
Yes. Social equity verification is a prerequisite to applying for license preapproval.
Are there any time restrictions for convictions?
No, there are no time restrictions for convictions prior to May 1, 2023, to be considered for social equity status.
Who should I reach out to for questions about the verification tool?
Email minnesota@creativeservices.com for support.
I lost my URL and want to check on the status of my verification. Who can I reach out to?
Email minnesota@creativeservices.com for support.
I haven’t received a confirmation email after submitting my SEA verification application and materials. What email address should I be looking for?
Look for an email from donotreply@creativeservices.com in your inbox.
If I believe that I meet the qualifications for more than one criterion, should I submit multiple verification applications?
No. Individuals interested in being verified as a social equity applicant should only submit one application for consideration. You are only required to meet one criterion to qualify. You are welcome to submit documentation for more than one criterion under the one application, but only one criterion is required to be met to qualify as a social equity applicant.
Do I have to pay for social equity verification process?
No. The Office of Cannabis Management does not charge a fee to complete the social equity verification process.
Do I have to be a resident of Minnesota to qualify as a social equity applicant?
No. Minnesota Statutes section 342.17 provides the criteria for those who may qualify as a social equity applicant, which does not include a residency requirement.
Does the 65% ownership requirement apply to governance or financial interests?
The statutory language uses the term “ownership and control,” which would include both financial interest and governance control. The statutory requirement that 65% of the controlling ownership of the business entity be controlled by persons verified as social equity applicants was created to allow social equity applicants to access capital not held by traditional banks. The legislature also created a true party of interest section to help prevent the use of straw applicants to subvert Minnesota’s commitment to an equitable market. Corporate structures can be complex, and the office cannot provide a comprehensive list of structures that would meet the standards in the statute. Applicants should note that increasing the complexity and nuance of corporate structures may increase the chances of a lengthy review or regulatory challenges. To that end, being approached by an investor offering a complex ownership or debt structure as part of the investment may be a red flag for predatory practices.
Is it true social equity applicants won’t need to pay the application fee twice if they aren’t selected in the preapproval round, but want to be included in the general process?
Yes, this is true. OCM will not charge a second application fee for a retained application that is considered in a subsequent application round. Minnesota Statutes Chapter 121, section 148, subdivision 12, requires OCM to retain the applications of applicants not selected in the lottery process during the preapproval round for up to one year. These retained applications will be subject to Minnesota Statutes, section 342.14, subdivision 9, which states OCM must consider a retained application during any licensing periods that begin within the year and, except as otherwise provided in the subdivision, OCM must treat a retained application as if the application were submitted during the licensing period. OCM may request additional information and an applicant may amend their application during this time.
Can social equity applicant verification for those with a cannabis offense on their record be provided to OCM using private background checks?
OCM has a list of documents on its website that a person can provide for social equity verification under the various criteria. See Social Equity Qualifications. Applicants can submit as much supporting material as they would like for their social equity verification. The social equity applicant verification process is distinct from the criminal background check required during the application process for licensure.
Will my social equity verification status be valid for the next round of licensing in 2025?
Yes.
Best Practices in Completing a Minnesota Cannabis License Application
Securing a cannabis license in Minnesota is a complex process, but with the right strategy and support, success is within reach. From navigating regulations to crafting high-scoring applications, our team at Catalyst BC is here to help you achieve your cannabis business goals. Contact our cannabis consultants today to schedule a consultation and take the first step toward launching your Minnesota cannabis business.
What services do our Minnesota cannabis consultants provide?
Our cannabis consultants offer comprehensive services, including business strategy, Minnesota license application support, facility design, startup support, business turnaround, operational optimization, and more. Whether you’re starting a cannabis business, scaling operations, or preparing your exit strategy, we provide tailored solutions to meet your needs.
Why should I hire Minnesota cannabis consulting experts for my business?
With extensive experience in highly competitive markets, our consultants ensure your application meets state requirements and positions your business for success. From crafting business plans to navigating local compliance, we’re here to help.
