Social Equity Verification in Minnesota
The Minnesota Office of Cannabis Management (OCM) will be accepting social equity verification applications from January 15 to January 30, 2025. Anyone who wants to participate in Minnesota’s upcoming licensing round as a social equity applicant will need to secure this verification through the OCM. If you qualify for social equity status, you should unquestionably apply for verification since doing so will give you a higher chance of securing a license in the Minnesota cannabis lottery draw.
Not sure if you qualify? Read on to find all of the eligibility criteria, and the application process!
Understanding Minnesota’s Social Equity Framework
In order to launch an inclusive and equitable cannabis market, Minnesota wants to focus on correcting the historical injustices caused by cannabis prohibition in the past. As a result, the Adult-Use Cannabis Act of 2023 lets people clear minor cannabis charges from their records, giving them a fresh start.
The Cannabis Act also created the OCM, which oversees initiatives like the Social Equity Program. The purpose of this program is to ensure that marginalized communities get an equal opportunity in the legal cannabis market by giving verified applicants priority access to cannabis licensing opportunities.
Who’s Eligible For Social Equity in Minnesota?
- Convicted of cannabis-related offenses before May 1, 2023.
- Had a parent, guardian, spouse, or dependent convicted of cannabis-related offenses before May 1, 2023.
- Was a dependent of someone convicted of cannabis-related offenses before May 1, 2023.
- Military veteran or National Guard member, including those with service-related disabilities or who lost honorable status due to cannabis-related offenses.
- Farmed for 3+ years, managing daily operations on a farm with gross sales between $5,000 and $100,000 annually.
- Lived for at least 5 years in areas with:
- High cannabis enforcement rates.
- Poverty rates of 20% or higher.
- Median family income below 80% of the state or metro average.
- At least 20% of households receiving SNAP assistance.
- High vulnerability per CDC’s Social Vulnerability Index.
How To Verify Your Social Equity Status
If an applicant meets one or more of the criteria above, they need to complete the social equity verification process by submitting the required documentation between January 15th and 30th, 2025. OCM will give more details on what specific requirements your business needs to prepare for the next steps.
After the window closes, OCM will review applications and conduct background checks to verify eligibility. Failing to apply for verification before the deadline will disqualify the applicant from applying for social equity license consideration.
General and Social Equity Lottery
Once verified as a social equity applicant, businesses can now apply for a cannabis license through OCM. The application window for both social equity and general licenses will start on the 18th of February and end on the 14th of March 2025. The license types for social equity applicants are:
- Mezzobusiness
- Microbusiness
- Cultivator
- Retailer
- Wholesaler
- Transporter
- Testing Facility
- Delivery Service
In the previous cycle, two-thirds of social equity applicants received denial notices. OCM is giving them another chance to re-submit for verification to apply for a cannabis license with no cap or enter the Minnesota lottery pool.
Mezzobusiness, Cultivator, Manufacturer, and Retailer licenses are only available in limited quantities. Since the social equity lottery will be held before the general Minnesota cannabis lottery cycle, the non-selected applicants get another chance to enter the general license lottery.
How Important Is Social Equity Verification?
Social Equity Verification ensures that minority individuals and communities get the rare opportunity they deserve, rather than allowing big conglomerates to dominate. It is of great importance that the OCM verifies if an applicant is eligible for these opportunities.
Verified applicants not only qualify for the social equity lottery but also gain access to the general lottery. This increases the chances of securing a cannabis license with a cap. It is estimated that roughly around 30-40% of adults in the United States can qualify for social equity cannabis licenses in Minnesota. The verification process also weeds out applicants who plan to use a “straw applicant scheme” or submit numerous applications with the intention to sell them for a profit.
Why Work With CannDelta?
CannDelta’s team of cannabis consultants and professionals have extensively helped businesses across the United States secure their cannabis licenses and kick off operations while ensuring compliance.
From the social equity verification process to the cannabis license application to the business launch, CannDelta is committed to ensuring your smooth entry into the Minnesota cannabis market. Our experts can guide you through each step to meet all the criteria for success.
Reach out to CannDelta to schedule a consultation and let’s start your cannabis business journey in Minnesota!
Frequently Asked Questions
What Is A Cannabis Social Equity Program In Minnesota?
The Social Equity Program is an initiative by Minnesota’s Office of Cannabis Management (OCM). It provides individuals from communities that have been disproportionately affected by past cannabis prohibition laws, and other marginalized groups, with a fair opportunity to participate in the legal cannabis market that will probably launch in 2025. The program also provides special resources, funding, and support for those who are verified with social equity status.
What Can We Expect From A Cannabis Social Equity Program In Minnesota In 2025?
Minnesota’s Office of Cannabis Management (OCM) is committed to creating an inclusive cannabis market set to launch in 2025 through its social equity program. From January 15 to 30, 2025, OCM will once again accept applications for social equity verification. This is to prepare for the cannabis license application set to take place between February 18 and March 14. For licenses with caps, a special lottery for social equity applicants will be held in May or June 2025. The OCM has yet to announce the exact dates for the Minnesota lottery cycle and the other details for the verification process. Stay updated by checking OCM’s announcements or the CannDelta Minnesota page.
What Are The Requirements For The Social Equity Lottery In Minnesota?
To qualify for the social equity lottery for cannabis licenses in Minnesota, you must meet at least one of the eligibility criteria set by the Office of Cannabis Management (OCM). 65% of the owners of a business must have verified social equity status. Every individual must:
- Have a past conviction for a cannabis-related offense before May 1, 2023, or have a family member with such conviction.
- Have lived in an area with a high poverty rate, high cannabis enforcement, low median income, or high rate of SNAP beneficiaries for five years.
- Be a military veteran or a National Guard.
All the documentation must be submitted to OCM for verification before proceeding to the cannabis license application.
