Minnesota is currently undergoing a transformative shift in its cannabis landscape, moving from a semi-regulated hemp-derived market toward a fully comprehensive adult-use framework. Overseen by the Office of Cannabis Management (OCM), the 2026–2027 biennium represents the critical “enforcement phase” where temporary registrations sunset and permanent, merit-based licenses define the market’s long-term leaders.
Minnesota’s new adult-use cannabis law allows microbusinesses (one store, up to 5,000 sq ft indoor, ½ acre outdoor) and mezzobusinesses (up to 3 stores, 15,000 sq ft indoor, 1 acre outdoor) to cultivate, manufacture, sell, and transport cannabis under one license. These vertically integrated licenses offer flexibility, but also come with complex state rules.
The Minnesota Lottery for cannabis business licenses reached a pivotal milestone on June 5, as the Office of Cannabis Management (OCM) conducted randomized drawings for select license types. These lotteries were open to both social equity applicants and general applicants vying for limited licenses to operate as cultivators, manufacturers, and mezzobusinesses. Additionally, a separate lottery was held exclusively for social equity applicants seeking a retail cannabis license.
Minnesota’s adult-use cannabis law (2023) does not create a permanent lounge license, but it allows temporary consumption events via a Cannabis Event Organizer license for up to four-day events (like festivals) where licensed retailers can sell cannabis and patrons may consume on-site. A licensed event organizer must obtain local approval and permits for each event.
Across much of the U.S., legally consuming cannabis is restricted to private residences—and even then, landlords or HOAs often ban it. Although retail sales of cannabis are legal in several jurisdictions, only a handful of public venues let adults consume their purchases on-site. Alaska led the way in December 2018, when its Marijuana Control Board rolled out statewide rules for on-site consumption. But it wasn’t until 2019 that the Original Cannabis Café in West Hollywood became America’s first social lounge. Since then, more states have drafted their own frameworks to permit these communal spaces.
Everyone deserves a second chance, and for many Minnesotans, clearing an old criminal record can be the key to unlocking new opportunities. The Minnesota Attorney General’s Office is dedicated to helping individuals move forward with a clean slate by hosting Clean Slate Expungement Clinics across the state. These clinics provide an opportunity for eligible individuals to have their state court records sealed—removing barriers to employment, housing, and professional licensing.
Are you considering starting a cannabis microbusiness in Minnesota? With the recent legalization of recreational cannabis and updates to the licensing process, now is the perfect time to understand the requirements and position your business for success.
The green rush is over, but the cannabis industry is still thriving. While the initial excitement may have subsided, savvy cultivators are realizing the key to long-term success lies in adapting their practices to meet the ever-evolving market demand.
