Minnesota needs to issue more than 375 adult-use cannabis licenses, study says

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As they work to streamline the adult-use cannabis licensing approval process, Minnesota regulators indicated that the state’s developing recreational market will require more than 375 licensed stores.

Under a legalization bill signed into law in May by Gov. Tim Walz, the state’s Office of Cannabis Management (OCM) is required to issue one dispensary per 12,500 residents.

That mandate will require the OCM to issue at least 381 retail licenses to comply with the law, according to a study the agency released this week gauging consumer demand and other metrics.

In the agency’s annual report sent to the Legislature on Jan. 16, regulators identified several recommendations to improving the application and licensing process, strengthen social equity licensing and unify the supply chain.

Proposals include:

  • Eliminating requirements to secure real estate during initial application.
  • Removing local municipalities from the business licensing process.
  • Consolidating the supply chain for both the medical and adult-use markets.
  • Issuing temporary licenses, particularly for social equity applicants.