Medical Marijuana Manufacturer Application Clarification and Updated FAQs

Application Clarification

Minnesota Department of Health published clarifications regarding questions they had received from potential medical marijuana manufacturers.

Individual Tax Returns

A number of potential medical marijuana manufacturers raise questions and concerns regarding the Request for Application requirements to provide one year of income tax returns for all investors in the applicant company. Some people voiced concerns that this requirement was intrusive while others claimed that this information would not satisfy the departments desire to select a manufacturer who is financially stable. The Department relented and agreed to remove the income tax information requirements in the final version of Request for Application.

Registration or Oversight Fee

Several potential medical marijuana manufacturers question the Department of Health on whether there would be a yearly registration fee once the two medical marijuana manufacturers are selected. The Department of Health stated that there will be a fee however, the fee will not be associated with registration, but rather an “oversight fee.” Supposedly, this “oversight fee” will “cover the cost the Department of Health incurs to provide oversight of the medical cannabis manufacturers” according to the Department of Health. The Department of Health expects the fee to be between $75,000 and $100,000 and luckily will not be collected until the distribution of medical cannabis begins in July 2015.


Updated Frequently Asked Questions

Minnesota Department of health is continuing to get questions from potential medical marijuana manufacturers regarding the draft rules and request for application. Below are some updated answers to questions:

  • A manufacturing facility can share roof with other non-medical marijuana operations. The Minnesota Department of Health suggested, however, that a potential applicant should be clear about whether there are any doors or entryways between the two operations and if security measures exist to control access to the cannabis.
  • Perimeter fencing is currently not required in the draft rules, but manufacturers may choose to have fencing if desired.
  • The request for application does not specifically require a Conditional Use Permit.
  • Currently under the draft rules a “man trap” is not required. (A man trap is a physical security access control system comprising a small space with two sets of interlocking doors, such that the first set of doors was closed for the second set opens.)
  • Bulletproof glass is currently not required under the draft manufacturer rules.
  • Normal building codes regarding restroom facilities and handicap in general requirements apply for the dispensaries. The Department of Health states that the program will be “serving patients so accommodating needs and accessibility should be thoroughly considered.” The same goes for specific parking requirements at each dispensary.
  • There are no specific parking requirements regarding legal street parking dispensary locations in the current draft manufacturer rules.
  • Background checks on an investor’s spouse are not necessary unless the spouse will be an investor as well.
  • If manufacturers are unable to fulfill patient requests for products that are on their established product list in the manufacturer will be viewed as not keeping up with patient demand.
  • The addition of more manufacturers would require new legislation. The Minnesota Department of Health is not allowed to add additional manufacturers to the program.

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