Administrative Law Judge Approves Cannabis Rules

April 14, 2025

Final rules have been approved for adult-use cannabis in Minnesota, moving the state a step closer to cannabis sales.

On April 2, an administrative law judge (ALJ) issued an order approving draft rules governing Minnesota’s adult-use cannabis market. The Minnesota Office of Cannabis Management (OCM) submitted draft rules to the ALJ after receiving comments from the public. The ALJ approved the rules without changes. 

View the ALJ approved rules on adult-use cannabis (pdf).

What’s next?

The approved rules will go into effect five days after they are published in the State Register. Once the rules are effective, OCM may begin issuing licenses consistent with state law. Uncapped license types that were qualified are in position to receive licenses shortly after rules go into effect. Those license types include:  

  • Microbusinesses
  • Wholesalers
  • Transporters
  • Testing facilities
  • Delivery services

Capped license types will be subject to a lottery, which OCM intends to hold sometime this summer. Those license types include:

  • Cultivators
  • Mezzobusinesses
  • Manufacturers
  • Retailers

A recent court order, however, may affect this timing. On April 4, 2025, a Ramsey County judge ruled that OCM must conduct a social equity lottery, which was abandoned in November 2024 after litigation. OCM issued a statement noting that it will seek dismissal of the case on an expedited basis.  

View OCM’s statement regarding the ruling.

Your next step

LMC will continue to follow the litigation to determine whether it will delay the issuance of cannabis licenses. Until then, cities should prepare for cannabis licenses to be issued in the near future. 

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