Minnesota Issues First Cannabis Business License

It went to an outdoor cultivation operation.

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Minnesota's Office of Cannabis Management (OCM) has officially kicked off adult-use cannabis sales after issuing the first cannabis business license in the state of Minnesota.

The first licensee, Herb Quest, is a microbusiness located in Brook Park in Pine County, Minnesota, whose initial primary business activity will be outdoor cultivation of cannabis plants. 

“Issuing the first business license is a major milestone for the office,” said OCM Interim Director Eric Taubel. “With our first licensed cultivator now able to begin growing plants, and more than 600 businesses within the final steps of completing their applications and securing approvals from local governments, we are now seeing the first pieces of Minnesota’s adult-use market fall into place.”

On August 1, OCM will open a new and ongoing application window for cannabis testing facilities, which are not limited in quantity in state law and are critical to establishing the supply chain for the state’s cannabis industry.   

Additional changes in state legislation approved this session established a license variance process for cannabis testing facility applicants. The change addresses potential bottlenecks in testing capacity by allowing applicants to obtain a license while pending accreditation by the International Standards Organization (ISO).   

“ISO accreditation is a lengthy process, so we wanted to provide a shorter runway for labs who wish to enter Minnesota’s cannabis market in such an essential way while also helping other cannabis business owners get up and running with safe, tested products,” said Max Zappia, OCM’s chief regulatory officer. “Having testing facilities with capacity is essential to our mission to establish an equitable cannabis industry that prioritizes public health and safety, consumer confidence, and market integrity.” 

Also on August 1, OCM will begin accepting applications for cannabis event organizer licenses. This will be an open-ended opportunity for applicants, with applications accepted on a rolling basis. The cannabis event organizer license authorizes the holder to plan and host temporary cannabis-related events in Minnesota. Pursuant to Minnesota law, cannabis events must be limited to ages 21 and older and may not include the sale or consumption of alcohol. Cannabis events may feature the on-site sale and use of adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products. Event organizers may host multiday events, provided that the event does not exceed four consecutive days in duration.  

This license type is temporary and must be obtained separately for each event. All cannabis event activities require local approval, including but not limited to any permits or licenses required by the applicable local unit of government and specific approval of on-site consumption areas. Event organizers must obtain this approval before submitting an application to the OCM and provide proof of local approval as part of the application.

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