Minnesota Cannabis Market

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Currently, only medical is legally authorized in Minnesota with only two licenses for full verticals allocated. Program oversight by the Department of Health, Office of Medical Cannabis.

In May 2014, the Minnesota Senate and House overwhelmingly passed different medical marijuana bills. The Senate bill included more patients, including those with PTSD, severe nausea, wasting, and intractable pain, and more dispensaries while costing significantly less to administer. The House bill reflected several unreasonable demands from law enforcement and then-Governor Mark Dayton, including prohibiting patients from using cannabis flowers or leaves in their natural form, having a monopoly manufacturer, and including an onerous observational study. On May 15, 2014, a committee agreed to a compromise, which the House and Senate signed off on the following day. Dayton signed the bill into law on May 29, 2014. The first dispensary opened a little more than a year later, on July 1, 2015.

Since then, the Department of Health has added additional qualifying conditions, which were excluded from the initial law, most notably intractable pain (which the law required the department to consider within a year), PTSD, chronic pain, and autism.

Due to the onerous and very limited nature of the program, state manufacturers have struggled to turn a profit.

What conditions are approved?

  • Alzheimer's disease;
  • Amyotrophic lateral sclerosis (ALS);
  • Autism spectrum disorder (must meet DSM-5);
  • Cancer*;
  • Chronic motor or vocal tic disorder;
  • Chronic pain;
  • Glaucoma;
  • Inflammatory bowel disease, including Crohn’s disease;
  • Intractable pain;
  • Irritable bowel syndrome (effective Aug. 1, 2023);
  • Obsessive-compulsive disorder (effective Aug. 1, 2023);
  • Obstructive sleep apnea;
  • Post-traumatic stress disorder (PTSD);
  • Seizures, including those characteristic of epilepsy;
  • Severe and persistent muscle spasms, including those characteristic of multiple sclerosis (MS);
  • Sickle cell disease;
  • Terminal illness, with a probable life expectancy of less than one year*;
  • Tourette syndrome;
  • *If your illness or its treatment produces one or more of the following: severe or chronic pain; nausea or severe vomiting; or cachexia or severe wasting.

Administration Methods?

The initial law only allowed administration via liquids, oils, and pills that are made of cannabis, including whole-plant extracts and resins. A bill approved by the legislature in 2021 would allow raw cannabis for adults 21 and older beginning no later than March 1, 2022. The commissioner may add additional types of administration methods.


The proposed adult-use bill introduced on January 5, 2023 is here. Although the Minnesota House passed a similar bill in 2021 after more than a dozen committees reviewed it, this is the first time Minnesota’s had a Senate majority that is open to legalization. A ninth Minnesota House committee has approved the bill on Thursday 2/16 to legalize marijuana—meanwhile, on the Senate side, the legislation that’s being carried by Sen. Lindsey Port (D) cleared its sixth panel on Monday 2/13. The governor recently released his biennial budget request, which included proposed funding to implement marijuana legalization and expungements, and made projections about the millions of dollars in cannabis tax revenue that his office estimates the state will earn after the reform is enacted.

With majorities in both the House and Senate and control over the governorship this session, Democratic-Farmer-Labor party officials are confident that legalization will be enacted in short order following the extensive committee consideration. The current legislation is an iteration of the 2021 House-passed bill from former Majority Leader Ryan Winkler (D). Much of the revised bills that are advancing through committee are consistent with Winkler’s legislation, though there are a few key changes, in addition to the newly adopted amendments. For example, it adds a new license category for businesses that sell “lower-potency edible products” under Minnesota’s unique THC law that the governor signed last year. There would also be reduced regulatory requirements for those licensees, and they’d be able to permit on-site consumption if they have a liquor license, which is meant to ensure that shops currently selling low-THC beverages and edibles don’t face disruption.

The bill’s next stop in the House is the Health Finance and Policy Committee, which is expected to take up the proposal next week. The Senate version will go to the Health & Human Services Committee next week as well.

Here are the main components of the revised marijuana legalization bills, HF 100 and SF 73:

  • Adults 21 and older could purchase up to two ounces of cannabis and cultivate up to eight plants, four of which could be mature.
  • They could possess up to two ounces in a public place and up to five pounds in a private dwelling.
  • Gifting up to two ounces of marijuana without remuneration between adults would be permitted.
  • It would promote social equity, in part by ensuring that diverse licensing by scoring equity applicants higher.
  • Prior marijuana records would also be automatically expunged. The Bureau of Criminal Apprehension would be responsible for identifying people who are eligible for relief and process the expungements.
  • In addition to creating a system of licensed cannabis businesses, municipalities and counties could own and operate government dispensaries.
  • On-site consumption permits could be approved for events, and cannabis delivery services would be permitted under the bill.
  • Unlike in many legal states, local municipalities would be banned from prohibiting marijuana businesses from operating in their areas, though they could set “reasonable” regulations on the time of operation and location of those businesses.
  • Retail cannabis sales would be taxed at eight percent. Part of that revenue would fund substance misuse treatment programs, as well as grants to support farmers.
  • A new Office of Cannabis Management would be established, and it would be responsible for regulating the market and issuing cannabis business licenses. There would be a designated Division of Social Equity.
  • People living in low-income neighborhoods and military veterans who lost honorable status due to a cannabis-related offense would be considered social equity applicants eligible for priority licensing.
  • The legislation as revised fixes an issue in current statute that prohibits liquor stores from selling THC products.
  • It also contains language banning synthetic cannabinoids, which is consistent with Board of Pharmacy rules put into place last year.

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in annual cannabis sales expected by 2025!

The MJBiz Factbook projected that medical marijuana sales in Minnesota could reach as much as $100 million this year and $125 million by 2025.


Minnesota cannabis industry

  • Has a rubric been published (yes/no)?
    • For labs, the link for the application is here. 
  • Has an application release timeline been published (yes/no)?
    • N/A
  • License Restrictions
    • Two manufacturing, currently filled. 
    • Labs are currently open
    • License type proposals for the pending AU bill: 
      • Microbusiness
      • Cultivator
      • Manufacturer
      • Retailer
      • Wholesaler
      • Transporter
      • Testing facility
      • Microbusiness
      • Event Organizer
      • Delivery Service
  • Social equity — things to knowDo we know the total licenses to be made available, by type?
    • Social equity licensure is in the pending AU proposal, but not for the existing medical 
  • Do we know the total licenses to be made available, by type?
    • No
  • What else? Looking for anything noteworthy, risks, anything unique/special etc.
    • Medical is basically shut to two monopolies, and recreational is being pushed with a bill introduced this month. 
  • Articles/Opinions/General Commentary
    • Links to anything about the market // critical information we need to be mindful of.
      • As of September 2021 (most recent data I could find), 26,556 active patients with 52,621 approved for enrollment. 
  • Date our website was last updated for this state: 10/04/2022


Minnesota’s hemp program info can be found here

Minnesota Hemp Industry