Social Equity Verification Process

Social equity verification applications are being accepted on an ongoing, rolling basis.

Email ocm.licensing@state.mn.us with your name to request a social equity verification application. The application will be emailed by donotreply@creativeservices.com.

Social equity verification is the process where OCM confirms an applicant's social equity eligibility. This service is currently free. If you are an applicant who has already had their social equity status verified, your status remains current. You are not required to provide further documentation to verify your status.

Applicants must meet the necessary criteria to be eligible for social equity verification.

Note: Social equity licenses must be owned at least 65% by social equity applicants, which can include one or more people. Each person who makes up the 65% ownership must be verified in order to proceed to applying for a business license. For more information, read Minnesota Statutes, section 342.185 and 342.12(b).

What does it mean to be verified as a social equity applicant and business?

Completing social equity verification is the first step for people who wish to apply for or assume ownership of a cannabis business license with a social equity classification.

Verification alone does not equate to submitting a license application, and social equity verification does not necessarily mean your business will be classified as a social equity business after receiving a license.
An applicant verified as a social equity applicant retains that status in perpetuity.
Once a business is social equity classified it may be promoted as a social equity business. However, any sale (transfer of ownership) will need to maintain at least 65% ownership by social equity verified individuals for at least three years (Minnesota Statutes, section 342.12(b)).

OCM is unable to provide legal or business advice and cannot assist in decisions on which license type to apply for or which license classification to pursue and recommends seeking counsel to make these determinations.

Frequently asked questions

Find answers to a wide range of questions related to social equity and the verification process.

Do I need to meet every single criterion for social equity verification?
Are there new social equity criteria that I might qualify under?
Are there any time restrictions for convictions?
Who should I reach out to for questions about the verification tool?
I lost my URL and want to check on the status of my verification. Who can I reach out to?
I haven’t received a confirmation email after submitting my SEA verification application and materials. What email address should I be looking for?
If I believe that I meet the qualifications for more than one criterion, should I submit multiple verification applications?

No. Individuals interested in being verified as a social equity applicant should submit only one application for consideration. Although you are only required to meet one criterion to qualify, you may submit documentation for more than one criterion under the one application. If you submit multiple criteria, the review will be completed once you have been verified under one criterion. The office will not perform further review.
Do I have to pay for social equity verification process?
Do I have to be a resident of Minnesota to qualify as a social equity applicant?
Does the 65% ownership requirement apply to governance or financial interests?

The statutory language uses the term “ownership and control,” which would include both financial interest and governance control. The statutory requirement that 65% of the controlling ownership of the business entity be controlled by persons verified as social equity applicants was created to allow social equity applicants to access capital not held by traditional banks. The legislature also created a true party of interest requirement to help prevent one person obtaining a license and selling it to someone who is not legally allowed to obtain a license, subverting Minnesota’s commitment to an equitable market. Corporate structures can be complex, and the office cannot provide a comprehensive list of structures that would meet the standards in the statute. Applicants should note that increasing the complexity and nuance of corporate structures may increase the chances of a lengthy review or regulatory challenges. To that end, being approached by an investor offering a complex ownership or debt structure as part of the investment may be a red flag for predatory practices.
Can social equity applicant verification for those with a cannabis offense on their record be provided to OCM using private background checks?

No. OCM has a list of documents on its website that a person can provide for social equity verification under the various criteria. Review Social Equity Qualifications. Applicants can submit as much supporting material as they would like for their social equity verification. The social equity applicant verification process is distinct from the criminal background check required during the application process for licensure.
Will my social equity verification status be valid for future rounds of licensing?