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Minnesota Officials Award State’s First Marijuana Business License

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Minnesota officials have issued the state’s first recreational marijuana business license following the enactment of legalization in 2023.

The Office of Cannabis Management (OCM) announced on Wednesday that it has issued the license to Herb Quest, LLC, a cultivation microbusiness.

“Issuing the first business license is a major milestone for the office,” OCM Interim Director Eric Taubel said in a press release.

“With our first licensed cultivator now able to begin growing plants, and more than 600 businesses within the final steps of completing their applications and securing approvals from local governments, we are now seeing the first pieces of Minnesota’s adult-use market fall into place,” he said.

Additionally, OCM said it’s taking further steps to build up in the industry and create opportunities to entrepreneurs, including opening a new licensing window for cannabis testing facilities, accepting the first applications for marijuana event licenses and verifying more social equity status requests.

For cannabis testing facilities, licensing applications will open on August 1. To prevent delays, lawmakers enacted a policy change to the process that also allows such licenses to be issued as applicants are awaiting accreditation from the International Standards Organization (ISO).

“ISO accreditation is a lengthy process, so we wanted to provide a shorter runway for labs who wish to enter Minnesota’s cannabis market in such an essential way while also helping other cannabis business owners get up and running with safe, tested products,” Max Zappia, OCM’s chief regulatory officer, said. “Having testing facilities with capacity is essential to our mission to establish an equitable cannabis industry that prioritizes public health and safety, consumer confidence, and market integrity.”

Applications for cannabis event organizer licenses will also start being accepted on August 1.

“Pursuant to Minnesota law, cannabis events must be limited to ages 21 and older and may not include the sale or consumption of alcohol,” regulators said. “Cannabis events may feature the on-site sale and use of adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products.”

Unlike other license types, the event organizer license is temporary and people will need to apply for new ones per event.

Meanwhile, shortly after Minnesota lawmakers passed a bill to end the criminalization of bong water containing trace amount of drugs, Gov. Tim Walz (DFL) has signed the measure into law late last month.

The change addresses an existing policy that had allowed law enforcement to treat quantities of bong water greater than four ounces as equivalent to the pure, uncut version of whatever drug the device was used to consume.

Also in Minnesota, a Native American tribe last month opened the state’s first-ever legal recreational marijuana store outside of a reservation. The new shop, in Moorhead, will be followed next month by another location in St. Cloud that will also be operated by the White Earth Nation.

The launch of the new shop comes after Walz signed of a landmark agreement last month to allow the tribe to operate up to eight retail marijuana stores across the state.

Minnesota’s 2023 cannabis legalization law allows tribes within the state to open marijuana businesses before state licensing of businesses begins. Following the law’s enactment, a number of tribal governments, including White Earth Nation, the Red Lake Band of Chippewa Indians and the Leech Lake Band of Ojibwe, made early moves to enter the market.

Separately, as the state’s adult-use cannabis market gets up and running, more than a dozen cities and counties are seeking to open their own government-run stores.

At least 13 cities and counties have applied for licenses to operate their own marijuana stores. The city of Anoka, for one, broke ground last month on a new $2.7 million facility, though the city’s liquor and cannabis operations manager says they’re still waiting on final approval from OCM.

Other municipalities seeking licenses to run their own dispensaries include St. Joseph and Osseo, which are reportedly waiting to secure licenses before breaking ground on the facilities.


Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.


Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

By law, Minnesota allows local governments to limit the number of retailers in their jurisdictions, though it requires leaders to allow at least one marijuana store for every 12,500 residents.

Separately in Minnesota, a state appeals court is set to decide whether state officials have the authority to prosecute tribal members for cannabis crimes committed on tribal land. The case centers on a White Earth citizen who allegedly sold cannabis from his tobacco store on reservation land in Mahnomen.

In April, meanwhile, state officials moved to delay a separate drug reform—the opening of safe drug consumption sites, meant to allow people to use drugs in a safer, supervised setting.

“More work needs to be done on a state and federal level before these services can be implemented in a way that is safe for participants and Harm Reduction programs,” a representative for the Department of Human Services (DHS) Behavioral Health Administration said at the time.

In March, lawmakers also filed legislation that would create a system to allow legal access to psilocybin for medical purposes. That came just days after the introduction of a separate bill that would legalize personal psilocybin use and possession among adults.

Alaska Activists Launch Campaign To Put Psychedelics Legalization Measure On 2026 Ballot

Photo courtesy of Brian Shamblen.

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Delaware Lawmaker Pulls Bill to Restrict Intoxicating Hemp Products

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A Delaware lawmaker has pulled a bill that sought to restrict the sale of intoxicating hemp products to state-licensed cannabis stores and only allow sales of cannabis-infused beverages at liquor stores, WHYY News reports. State Rep. Debra Heffernan (D) indicated she pulled the proposal after pushback from CBD store owners, customers, and cannabis advocates, but that she plans to create a new bill “in the coming months” for consideration next session.  

“While I still believe in the importance of increasing safety testing and ensuring age verification for cannabinoid intoxicating products, I believe that further and wider conversations need to be had with business owners in this area and our new marijuana commissioner.” — Heffernan, in a statement posted to Facebook 

Joshua Sanderlin, Delaware’s Marijuana Commissioner, told WHYY News last week that he believes cannabis-infused drinks should be sold at retail dispensaries as long as they are produced in the state. He added that “there are no regulations” on intoxicating hemp products produced outside of Delaware and that “getting some” regulations and testing for the products “is the most important thing” facing regulators.    

Jena Murray, president of the U.S. Hemp Roundtable who works for a CBD company and is a resident of Delaware, told WHYY that an email campaign by her organization’s members and media stories led to Heffernan’s decision to pull the bill. She said the hemp industry in the state is looking forward to assisting in crafting “a bill that is really comprehensive and robust to protect children and adults as well.”  

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Hemp Companies Sue Maryland Over Cannabis Licensing

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A Maryland hemp industry association and hemp businesses are suing the state over cannabis licensing and seized products, the Baltimore Sun reports. The Maryland Hemp Coalition, 10 businesses owners, and consumers of the products at the heart of the lawsuit argue that state laws illegally regulate hemp-derived products that are federally legal and that state agents are now selectively enforcing “erroneous testing standards” to seize items from shelves.  

The lawsuit also attacks state laws that cap cannabis licenses and how they are issued, including the state’s lottery for new businesses and social equity provisions. Nevin Young, the attorney representing the groups, told the Sun that the state’s licensing system was an unnecessary control intended to inflate cannabis prices and increase business values. He called it “communist cannabis.” 

The lawsuit asks a federal judge to rule that the social equity program and limits on the number of cannabis licenses, and how they’re issued, are unconstitutional. 

In a statement, Levi Sellers, president of the Maryland Hemp Coalition, said the law is “a model of regulatory overreach and economic favoritism,” and that the state is “stripping the rights of compliant hemp businesses and handing the market to politically connected cannabis dispensaries.”  

The state issued 205 licenses last year via its social equity lottery. The lawsuit describes that lottery as a “monopolized licensing scheme thinly disguised as being focused upon ‘social equity’” that has “no rational relationship to any public safety or health concerns.”     

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Missouri Hemp Groups Seek to Deregulate Cannabis via Ballot Initiative

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Hemp business owners in Missouri are organizing an initiative petition to deregulate cannabis in the state to allow for sales at stores that sell alcohol and tobacco, the Missouri Independent reports. In a call on Monday led by the hemp company American Shaman, advocates stated the goal of the effort is to repeal the state’s constitutional amendment that legalized cannabis in the state and replace it with language that directs state lawmakers to create regulations for cannabis that are “no more burdensome than what we already have for alcohol and tobacco,” industry lobbyist Eapen Thampy said during the call.  

“Part of the idea here is to remove that regulatory mandate in the Missouri Constitution. We devolve regulatory authority back to the Missouri General Assembly, the elected representative of the people where it belongs.” — Thampy, during the call, via the Independent 

The language of the petition is not yet finalized but Thampy indicated that it would ensure cannabis remained legal while the new rules are adopted by lawmakers, remove criminal offenses for possession over the legal limits, and retain current tax rates on cannabis products.   

The proposal comes amid a crackdown on hemp businesses in the state – last month, state Attorney General Andrew Bailey (R) sent 18 cease and desist letters demanding that hemp retailers stop selling hemp flower products in the state.  

Thampy told the Independent that the campaign seeks “to give the marijuana operators an opportunity to pursue the consumer dollar in the mass market, as the hemp side already does.” However, Andrew Mullins, executive director for the Missouri Cannabis Trade Association, called the plan a “bait and switch.” 

“Missourians aren’t about to take hundreds of millions away from local communities, veterans and our justice system,” he told the Independent, “all in hopes that politicians will eventually replace it with something down the road.”  

The advocates of the plan expect the draft language of the initiative to be submitted to the Missouri Secretary of State by August. 

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