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The legislation creates the framework for adult-use cannabis in Minnesota and establishes a new Office of Cannabis Management, which will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for lower-potency hemp edibles) and issue licenses and develop regulations outlining how and when businesses can participate in the industry. The legislation proposes that retail sales for adult use cannabis in Minnesota begin in the first quarter of 2025. Minnesota will continue to have a Medical Cannabis Program, which will move from the Minnesota Department of Health to the Office of Cannabis Management effective March 1, 2025.

Over the coming months, the new state agency will develop the regulatory framework for legal adult cannabis, and establish processes and timelines to apply for licenses. There are 12 different business licenses a person can apply for in the adult-use market, and there are additional licenses for medical cannabis. To be eligible to operate a business, you need to be at least 21 years old and fill out all necessary paperwork and pay license fees. It’s not cheap – a cultivator license, for example, will cost $10,000 to apply, $20,000 for the initial license, and $30,000 to renew. Costs vary depending on the operation. Smaller businesses seeking a cannabis “microbusiness” license would pay less.

To take advantage of this new and promising market, contact a PayRio representative today to learn about our payment processing solutions for your Minnesota cannabusiness.

Contact PayRio today to learn more about our payment processing solutions for Minnesota cannabusinesses.


Minnesota has a limited history with cannabis legalization. The Minnesota Medical Marijuana Act (SF 2470), signed into law in 2014, safeguards patients suffering from specific severe medical conditions who have received a doctor’s recommendation for using medical cannabis products. This law establishes a regulatory framework for overseeing the production and distribution of authorized cannabis products, which can be administered through liquid, pill, or vaporized methods, while explicitly prohibiting smoking cannabis. SF 2470 does not impose any restrictions on the concentration of THC or CBD in these products, allowing for flexible medical cannabis treatments tailored to address various health conditions.

In 2016, HF 3142 expanded the list of qualifying conditions for patient enrollment in the state system to include intractable pain and PTSD. This legislation also improved transportation laws related to testing and disposal and allowed pharmacists to conduct video conferences with patients. In 2018, the Department of Health added sleep apnea, autism, and Alzheimer’s to the list of qualifying conditions. The Minnesota Department of Corrections also granted permission for individuals on supervised release to use medical cannabis.

In 2019, the state increased the number of legal medical retail facilities from 8 to 16. The Minnesota Department of Health also added chronic pain and macular degeneration to the list of eligible conditions for medical cannabis treatment. In 2020, as part of the state’s COVID emergency plans, Minnesota authorized the continuation of medical cannabis businesses, extended patient access through curbside pickup and home delivery, allowed telemedicine for physician evaluations, and extended existing enrollments.

On May 30, 2023, Minnesota became the 23rd state to legalize cannabis for recreational use. Beginning on August 1, adults 21 and older will be allowed to: possess in public up to 2 ounces of cannabis, 8 grams of concentrate, and products with up to 800 milligrams of THC securely and discreetly cultivate up to eight plants, with up to four flowering and mature at home possess up to 2 pounds of cannabis at home

LAST UPDATED 5/10/2023 – It’s important to remember that laws can be revised and updated frequently, so please keep this in mind.