A law enacted at the end of the 2023 legislative session legalized adult-use cannabis in Minnesota and established a regulatory framework over the cannabis industry. The law established a new "Office of Cannabis Management" (OCM) to issue licenses and develop regulations outlining how and when businesses can participate in the new adult-use industry in Minnesota.

A license from the OCM is required in order to sell cannabis products in Minnesota. Visit OCM’s website at State Office of Cannabis Management (OCM). 

Before operating any business within the City that is licensed by OCM, the business must register with the City. See the Registration section below.

Adult Use Cannabis

OCM’s website provides information about the following license types, including if and when application will be accepted: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, event organizer, and medical cannabis combination business. You must have a valid license from OCM before you can register with the City. You must register with the City before you can operate.

Lower-Potency Hemp Edibles

Liquor stores may sell low-potency THC beverages only, no other edibles. Breweries and distilleries may only sell beverages and edibles that they manufacture on the premises.

Businesses with OCM-issued low-potency hemp edible manufacturer and retailer licenses and City-issued registrations may only sell hemp-derived THC beverages and edibles (i.e. gummies). All other sales of THC infused hemp-derived consumer products are prohibited. The only artificially derived cannabinoid allowed in low-potency hemp edible products is Delta-9. Any products with Delta-8 or Delta-10 are prohibited.

Cannabis Tax

All sellers of taxable cannabis products must register with the Minnesota Department of Revenue to remit the Cannabis Tax. More information is available on the Minnesota Department of Revenue site:  MN Department of Revenue - Cannabis Tax

Zoning Requirements

Check Local Zoning Ordinances – Before obtaining a license from OCM or applying for a registration from the City, verify the proposed business location falls within the approved zoning district and whether you need a conditional use permit by contacting the Community Development Department at 651-430-8820. The table below identifies the various cannabis and lower-potency uses in the zoning districts where they are allowed and whether they are permitted or conditional uses:

Distance from Other Cannabis Businesses – Regulations may also require a certain distance between each cannabis business, to avoid clustering. Businesses must comply with additional requirements such as security measures and operational guidelines. Reach out to the Community Development Department to find out the rules and regulations surrounding your business.

Zoning Maps: 

           Business Park Cannabis and Low Potency Retail Map

Registration 

The City will only issue three adult use cannabis retail registrations. This cap on registrations does not apply to a medical cannabis combination business, event organizers or lower-potency hemp edible retailers. 

City of Stillwater Registration form

Off-sale exclusive liquor stores must obtain a Lower-Potency Hemp Edible Retailer license and register with the City. Breweries and distilleries that manufacture their own THC beverages or edibles, must obtain a Lower-Potency Hemp Edible Retailer license and register with the City. On-site consumption is only allowed at breweries and distilleries who manufacture their own products and have an on-sale liquor license.  

All applicants must:

1. Obtain zoning approval and/or receive a conditional use permit
2. Provide a copy of all State licenses issued by OCM
3. Complete the Cannabis Registration form
4. Pay the nonrefundable registration fee and renewal for each type of retail license for which the business is applying; and
5. Comply with all additional statutory, regulatory, and licensing requirements for each type of retail license the business will operate.

Minnesota Resources

Minnesota Office of Cannabis Management

League of Minnesota Cities Adult-Use Cannabis FAQs

Additional resources available from Washington County