Minnesota Expands Cannabis Cultivation Licenses and Social Equity Program

Minnesota Expands Cannabis Cultivation Licenses and Social Equity Program

Minnesota is set to award cannabis cultivation licenses ahead of schedule this year, following a proposal signed into law by Gov. Tim Walz, according to the Star Tribune. This new legislation aims to better prepare the state for the launch of its adult-use cannabis market next year. Under this proposal, any cannabis grown with the early licenses cannot be processed or sold until the general licensing process is completed next year.

Previously, only certain social equity applicants were allowed to launch their cultivation businesses before the official market launch next year. The new bill, signed into law last Friday, includes several significant changes to the cannabis program in Minnesota. One notable change is the expansion of the social equity program, which will now qualify between 30% and 40% of Minnesota adults as social equity applicants. This expansion aims to ensure broader participation and support within the community.

To prevent market oversaturation during the initial two years of retail dispensaries and other businesses, the bill also introduces license caps. Furthermore, the Office of Cannabis Management will establish a “qualified lottery” for next year’s distribution of cannabis licenses. Applicants must meet specific qualifications, including holding appropriate property and having operational plans in place, before entering the lottery.

In addition to these changes, the bill allows Minnesota doctors to recommend medical cannabis for any condition they deem appropriate. Registered patients will also be able to designate caregivers who can grow up to eight plants on their behalf, providing more flexibility and support for medical cannabis users.

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