Office of Cannabis Management Halts Cannabis License Preapproval Process Amid Legal Challenges

December 23, 2024

All licenses will be issued during the 2025 general application cycle.

The Office of Cannabis Management (OCM) ended the license preapproval process after lawsuits were filed and a judge put a stay on the lottery that was intended to choose the first business license holders. The lawsuits came from applicants OCM rejected and therefore determined were ineligible for the preapproval license lottery. The lottery allowed for 282 license preapprovals across nine license types. These licenses will now be considered during the general licensing period.

The license preapproval process was created as part of the 2024 cannabis legislation and would have allowed some businesses to prepare for operation ahead of the full licensing process. Preapproved cultivators would have been allowed to start growing cannabis. However, retailers would not have been able to sell products until final rulemaking was approved.

Next steps

The 2025 licensing cycle will begin in January, with a social equity verification process. The application window for all applicants will run from Feb. 18 to March 14. OCM tentatively plans to hold a lottery for both social equity and general license applicants in May or June 2025. The lotteries will only be for the capped license categories as outlined in state statute.

View details of the 2025 licensing cycle (pdf).  

Local governments need to register and provide contact information

Minnesota’s cannabis law includes local retail registration, which is distinct from the licensure process run by OCM. To coordinate the local retail registration process with the state license process, OCM is asking local governments to provide contact information and create an account in their licensing software system.

For more information, refer to the OCM FAQ webpage, email [email protected], or read a previous article about OCM’s update for local governments.

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