The first step in a process to give early licenses to prospective cannabis businesses came to an end Wednesday.

Veterans, people living in areas with high poverty and people convicted of low-level marijuana crimes are eligible for the social equity applicant status.

Documents had to be submitted to the Office of Cannabis Management for verification by 11:59 p.m. on Wednesday. The system opened on June 24.

Meanwhile, the state published a guide for local governments, including long-awaited sample ordinances for cities to work off of as they implement restrictions on June 25.

“We have not had an opportunity to review those regulations,” said Corrine Heine, the city attorney, at Monday’s meeting.

Minnetonka city leaders shared during a council meeting on Monday that the timing has created a challenging situation for local municipalities.

The Minnetonka City Council considered a temporary moratorium on cannabis business operations until the city’s zoning can be updated.

According to the ordinance, city staff did not see a need for a moratorium previously because the city expected to have time to review the model ordinances and adopt changes before licenses were issued. During the last legislative session, however, lawmakers gave the Office of Cannabis Management the ability to preapprove licenses for social equity applicants. Those who are selected can begin cultivating cannabis before a final license is issued, likely before the end of the year.

Preapproval of the first licenses is expected this fall.

“At this time, we do not have revisions in place that would establish distance restrictions, for example, from schools, daycare centers, other locations like that,” said Heine.

A prospective business owner told the council the ordinance could force social equity applicants to open their businesses elsewhere. She’s worried the delay in getting started will result in her business being edged out of Minnetonka.

“All of the money that I had that I’m putting into this, I have saved every single cent that I have earned,” she said. “The big people are going to come in with all of their money and they’re going to be able to do it very quickly I unfortunately have to work very slowly.”

The council approved the ordinance, which sets a deadline for developing restrictions by Dec. 2. The moratorium expires on Jan. 1, 2025. Council members agreed they hope to have the ordinance finalized sooner, possibly by the fall.

Dozens of cities statewide have implemented cannabis moratoriums, which was allowed by the state law.

“I feel for the social equity applicants,” said Mayor Brad Wiersum. “The idea with that was to kind of give them a head start, but you give them a head start, but guess what, nobody gets a start.”