Minnesota Draft Cannabis Rules Provide Clarity on Licensed Cannabis Business Operations

By Jason Tarasek, Colleen Mitchell

Jan 23, 2025

The Minnesota Office of Cannabis Management (OCM) recently published a notice of intent to adopt expedited rules and opened a 30-day public comment period.

Members of the public can submit formal comments on draft rules through the Office of Administrative Hearings (OAH) website until 4:30 p.m. on Wednesday, February 12. Instructions on how to use the system are available on the OAH website. Interested parties can view submitted comments in real time. Your comments, suggestions, and feedback will play an important role in shaping regulations. Contact us if you would like assistance in submitting an impactful public comment.

Key Highlights of the Minnesota Draft Cannabis Rules

The proposed rules are largely operational guidelines for licensees. Significantly, despite the recent controversy related to certain license applications, they are silent on True Party Of Interest provisions. Below are notable highlights of the draft rules.

Co-location Rules

The rules clarify that vertically integrated license holders are not required to co-locate all operations. Rather, a licensee may perform “each activity at a separate location.”

Separate licensees, however, cannot co-locate “on the same premises.” Neither the rules nor the underlying statute define “premises.”

THC Concentrate Limits

Adult-use vapes are limited to 70% THC. Some observers expect commenters to seek an exemption for vape cartridges, and a majority of the comments submitted to date have taken issue with this potency limitation.

Cultivation Canopy Measurements

Regarding indoor cultivation, the rules indicate that canopy is measured by calculating the total square footage of each distinct cultivation area containing mature, flowering cannabis plants. Distinct cultivation areas include trays, tables, and shelves or may be demarcated by trellising, tiers, or other identifiable boundaries.

For outdoor mixed-light facilities, cultivation may occur in a greenhouse or hoop house, and acreage is calculated based on the total area of “mature, flowering cannabis plants minus any clearly demarcated walkways.”

The canopy acreage for cultivation occurring “completely outdoors” is the total area of the field containing mature, flowering cannabis plants minus any vehicle access roads and completely fallow areas where no cultivation is occurring.

Production Capacity for Manufacturers

The draft rules provide the following annual limits on the following volume of cannabis or its dry-weight equivalent of raw concentrates to manufacture regulated products for certain license types:

  • Mezzobusiness license: 30,000 pounds

  • Microbusiness license: 10,000 pounds

Delivery Requirements

Cannabis delivery licensees must ensure that each delivery vehicle is “staffed by at least two individuals, and at least one individual must remain with the vehicle at all times.” As to this proposal, observers expect commenters to suggest that one delivery person is sufficient. In the absence of a relaxation of this requirement, cannabis delivery might be rendered economically infeasible.

Additionally, deliveries may only be made to consumers who have pre-paid for orders, and a delivery driver may not transport more than $5,000 worth of regulated products on a single delivery route.

Tribal Dispensaries

The rules provide that local governments may include dispensaries operating under a Tribal compact or Tribal license toward the number of dispensaries that it may limit pursuant to statute.

Preparing for Minnesota Cannabis License Applications

Some rules are important as prospective licensees prepare their license applications, in addition to those that will apply to operating businesses. For example, cannabis cultivator and manufacturer applicants must submit detailed operational plans to OCM that include an overview of production methods, sanitation procedures, security specifications, recordkeeping protocols, and more.

It's never too early to begin preparing for licensing. With the help of Vicente’s Minnesota Team, you can start building your team, forming your business, applying for trademark protection, engaging in community outreach, finding real estate, and more.

Make Your Voices Heard!

Remember, the public comment period for OCM’s draft regulations closes on February 12. Contact us if you would like to discuss the proposed regulations or would like assistance in submitting an impactful public comment.

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