Garner, Ginsburg & Johnsen, P.A. Law Offices

MINNESOTA CANNABIS LICENSE TYPES: CANNABIS EVENT ORGANIZER LICENSING

One of the more interesting licenses in Minnesota’s cannabis framework is the event organizer license. 

1. Authorized Actions: An event organizer license will permit the holder to organize temporary cannabis events that last no more than four days. 
2. Additional Information Required: In addition to standard license application information, event organizer license applicants must provide a lot of additional information, including: (1) the type and number of other cannabis licenses held by the applicant; (2) the address and location where the event will take place; (3) the name of the temporary cannabis event; (4) a diagram of the physical layout of the temporary cannabis event showing where the event will take place, all entrances and exits that will be used; (5) all cannabis consumption areas; (6) all cannabis retail areas where cannabis will be sold; (6) the location(s) where waste will be stored; (7) any location where cannabis products will be stored; (8) a list of the name, number, and types of cannabis and hemp businesses that will sell products at the event (and the list may be supplemented); (9) the dates and hours of the event; (10) proof of local approval for the event; and (10) evidence that the applicant will comply with operational requirements.
3. Multiple Licenses: Cannabis event organizer licensees cannot hold testing facility licenses, and cannot hold any lower-potency hemp edible manufacturer or retailer license. It is likely that the law prohibits lower-potency hemp licensees from hosting cannabis events because lower-potency hemp licensees are only in the business of hemp-derived products, not cannabis.

When a cannabis event licensee hosts an event, there are a number of operational requirements that they must meet. 

1. Local Approval: A cannabis event organizer must receive local approval (including any required permits or licenses issued by a local unit of government). This means that local units of government will likely – at some point – implement their own cannabis event license applications.
2. Charging Fees: An event organizer licensee may charge an entrance fee to the event and may also charge a fee to cannabis or hemp businesses in exchange for space to display and sell cannabis and hemp products, but the fee cannot be based on or tied to the sale of cannabis products. In other words, the event organizer will likely charge a flat fee – if the event organizer could make money based on gross sales of vendors, it would be akin to the event organizer actually selling cannabis (albeit indirectly).
3. Security: An event organizer must hire or contract licensed security personnel to provide security services at the event. Security personnel are not permitted to consume cannabis or hemp products for at least 24 hours before the event or during the event.
4. Age Restrictions: Attendees must all be at least 21 years of age.
5. Waste: All cannabis and hemp products not removed by a customer or business must be disposed of in a manner approved by the Office.
6. Transportation of Products: All cannabis and hemp products intended for display, sale, or use at the event must be transported to and from the event by a licensed cannabis transporter, potentially meaning that retail licensees bringing products to the event must still hire licensed transporters to bring products to the event. 
7. Event Sales: Those with retail licenses or endorsements (including the event organizer) may be authorized to sell cannabis and hemp products at the event, but the sales must all take place in a designated area as shown on the diagram submitted to the Office as part of the application. Retailers may also only sell from their authorized space – in other words, sellers cannot roam the event and sell anywhere other than their designated space.
8. Product Sample Restrictions: Retailers at an event may display “one sample” of each plant or type of product available for sale but they must be stored in jars or display cases accompanied with required label information. The samples may not consist of more than 8 grams of flower or concentrate, or an edible product infused with more than 100 milligrams of THC. Attendees are permitted to smell the sample products prior to purchase.
9. Retailer Restrictions: The law imposes some requirements that may be difficult to comply with, including (1) they may not sell to persons who are “visibly intoxicated”; (2) they may not sell more to a person than the person is legally permitted to possess; (3) they may not sell medical cannabis products; (4) they may not give away cannabis or hemp products; and (5) they may not use vending machines.
10. Secured Storage: Aside from the samples permitted to be on display, all products must be stored in a secure locked container that it not accessible to the public and the container may not be left unattended. 
11. Statewide Monitoring System: Cannabis at all events must be accounted for in the statewide monitoring system just like they would have to be accounted for in other licensed businesses.
12. On-Site Consumption: Events may permit on-site consumption in a designated area, but the consumption area may not be “visible from any public place,” and neither alcohol nor tobacco may be used at the event. Moreover, cities or counties may enact and enforce more stringent measures to protect individuals from secondhand smoke or vapor.

The event organizer license comes with significant business opportunities but compliance is going to require serious planning and flexibility.