Minnesota Cannabis Attorney

Minnesota legalized cannabis for recreational use (in addition to medical use) for adults aged 21 or over in May 2023.

In doing so, the cannabis industry in Minnesota became a fully regulated and taxed industry, which benefits the state and opens up many opportunities for aspiring entrepreneurs looking to enter the industry.

Medical cannabis has been available in Minnesota since 2014 but the decriminalization of recreational cannabis is a major step that was well-received by citizens here.

The free availability of cannabis is not, however, without its critics and it is still illegal at a federal level. Consequently, the industry will be tightly regulated to ensure that businesses toe the line with state and local laws.

Because of the recency of the legislation, we can expect to see it evolve in the coming years as the industry beds down. The experience and insight of a seasoned cannabis attorney are essential if you want to start a cannabis business in Minnesota and remain for the long run.

At Cannabis Law Solutions, we’ve helped many business owners across the country handle the inevitable challenges of forming entities, preparing and applying for licenses and complying with the evolving regulations in states that have recently passed bills to legalize recreational cannabis for adults.

Our comprehensive understanding of Minnesota cannabis law can help you navigate the complex legal landscape here and capitalize on the opportunities in all sectors of the industry.

Cannabis business services

Our experienced cannabis attorneys can assist with the following legal services:

• Business Entity Formation
• Business License
• Regulatory Compliance
• Administrative Law
• Corporate & Transactional
• Disputes and Litigation
• Enforcement Actions
• Real Estate, Land Use & Zoning
• Permitting and Licensing
• Mergers & Acquisitions

Laws for possession (personal use) in Minnesota

The decriminalization of cannabis in Minnesota opens up opportunities for businesses with valid licenses but this comes with many caveats for personal use. Exceeding certain limits is still illegal and can lead to jail time.

These are the new laws relating to personal use/possession in Minnesota:

Up to 2oz in public

• No incarceration, fine or other penalty

Up to 2lbs in a private residence

• No incarceration, fine or other penalty

Possession of over 2oz-4oz in public

• Petty misdemeanor offense with a $300 fine

Possession of 4oz-1lb in public

• Third-degree possession with up to 90 days in jail and a $1,000 fine

Possession of 1lb-2lbs in public

• Second-degree possession with up to one year in jail and a $3,000 fine

Possession of 2lbs-10kg in public

• First-degree possession with up to five years in jail and a $10,000 fine

Laws for cannabis cultivation in Minnesota

The Minnesota cannabis cultivation laws are as follows:

Up to 8 plants in total (4 mature)

• No incarceration, fine or other penalty

9-16 plants in total (4 mature)

• A civil penalty only with a fine of $500/plant

17-23 plants

• Cultivation of cannabis in the second degree with a jail sentence of up to one year and a $3,000 fine

Over 23 plants

• Cultivation of cannabis in the first degree with a jail sentence of up to 5 years and a $10,000 fine

Minnesota cannabis license types and fees

Cannabis business license applications will be assessed by the new Office of Cannabis Management, which issues licenses and determines regulations for the adult-use cannabis industry in the state.

Local governments can determine where businesses are allowed to operate in their communities.

Over 15 different license categories have been established by the new adult-use and medical-use cannabis regulations (which include new lower potency hemp regulations).

Following are the details of the licenses and their associated application/license fees:

• Cannabis microbusiness: application fee $500; no initial license fee; renewal license fee $2,000.
• Cannabis mezzobusiness: application fee $5,000; initial license fee $5,000; renewal license fee $10,000.
• Cannabis cultivator: application fee $10,000; initial license fee $20,000; renewal license fee $30,000.
• Cannabis manufacturer: application fee $10,000; initial license fee $10,000; renewal license fee $20,000.
• Cannabis retailer: application fee $2,500; initial license fee $2,500; renewal license fee $5,000.
• Cannabis wholesaler: application fee $5,000; initial license fee $5,000; renewal license fee $10,000.
• Cannabis transporter: application fee $250; initial license fee $500; renewal license fee $1,000.
• Cannabis testing facility: application fee $10,000; initial license fee $10,000; renewal license fee $20,000.
• Cannabis event organizer: application fee $750; initial license fee $750.
• Cannabis delivery service: application fee $250; initial license fee $500; renewal license fee $1,000.
• Lower-potency hemp edible manufacturer: application fee $250; initial license fee $1,000; renewal license fee $1,000.
• Lower-potency hemp edible retailer: application fee $250 per retail location; initial license fee $250 per retail location; renewal license fee $250 per retail location.
• Medical cannabis cultivator: application fee $250; no initial license fee; no renewal license fee.
• Medical cannabis processor: application fee $250; no initial license fee; no renewal license fee.
• Medical cannabis retailer: application fee $250; no initial license fee; no renewal license fee.
• Medical cannabis combination business: application fee $10,000; initial license fee $20,000; renewal license fee $70,000.

Note that the application fees are non-refundable. Applicants must be 21 years of age or older and a Minnesota resident.

At present, there is no restriction on the number of licenses that may be issued. Applications are scored according to security, business strength, social equity plans, environmental plans and other factors.

Cannabis microbusiness vs cannabis mezzobusiness

The Minnesota legislation, like in many states that have legalized recreational cannabis use for adults, generally restricts the scope of activities permitted for businesses by license type. So, a cultivator cannot be a retailer or a wholesaler cannot be a transporter, etc.

Two classes of licenses are slightly different though:

• Microbusiness: a microbusiness license allows entrepreneurs to cultivate, manufacture and sell marijuana within certain limits on how much can be grown and how many stores can be operated. Current cultivation limits are up to 5,000 square feet of indoor plant canopy or up to one-half acre of mature, flowering plants outside. One dispensary is permitted.
• Mezzobusiness: a mezzobusiness license is similar to a microbusiness license but on a larger scale (“mezzo” is Italian for “medium”). The limits on cultivation and dispensing are different. Current cultivation limits are up to 15,000 square feet of indoor plant canopy or up to one acre of mature, flowering plants outside. Three separate dispensaries are permitted.

Cannabis business legal planning, advice and support in Minnesota

At Cannabis Law Solutions, we are familiar with the challenges of obtaining a license and the maze of regulations that new cannabis businesses must comply with.

The expertise of our cannabis business attorneys can help you plan, incorporate, protect and grow a successful cannabis business in Minnesota. We have been supporting cultivators, manufacturers, retailers and other entities for many years.

For informed legal advice, call 866-329-0729 for a consultation with a knowledgeable cannabis attorney at Cannabis Law Solutions.