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June 24, 2024
Guidance on Cannabis License Prohibitions
Dear Registered Hemp-Derived Cannabinoid Business:
This communication is to inform you of recent changes to Minnesota’s cannabis and hemp laws and the impact those changes may have on potential cannabis license applicants. Last session, the Minnesota Legislature modified Minnesota Statutes, section 342.15, which governs the disqualification of applicants for licenses. These changes direct OCM that it must not issue a cannabis license to:
- Anyone convicted in a criminal court of illegally selling cannabis after August 1, 2023, unless five years have passed since the date of conviction.
- Any person or business who violates Chapter 342, including selling cannabis flower and other products without a license.
- Any person or business who is assessed a fine under section 342.09, subdivision 6.
Additionally, the legislature provided the OCM the authority to deny an application based on the violation of other state or local government regulatory systems. This includes violations of the state’s regulation of hemp-derived cannabinoid products under Minnesota Statutes, section 151.72. As OCM has previously communicated, inspections of hemp flower or THCA flower are conducted pursuant to Chapter 342, by the inspectors at the Office of Medical Cannabis, under the supervision and authority of OCM.
To that end, any cannabis or THCA flower that exceeds 0.3% Total THC is not hemp and therefore is not licensed for retail sale at this time. Total THC is determined post-decarboxylation, which means THCA is included in the calculation. OCM has been in the field doing flower inspections since April with a focus on educating to compliance. As inspectors begin the process of follow-up visits, continued sales of non-compliant flower products will be treated as violations of Chapter 342. Similarly, refusal to allow an OCM inspector to enter or conduct their investigation is a violation of section 342.19.
What does this mean for anyone considering participating in either the cannabis or hemp-derived license market? Any business that has been determined to be in violation of Chapter 342 by OCM after August 1, 2023, is statutorily prohibited from being granted a license by OCM. It is the responsibility of every business to ensure regulatory compliance.
Finally, as a reminder, the Office of Cannabis Management will issue licenses for lower-potency hemp edible retailers and lower-potency hemp edible manufacturing once licenses for cannabis activity have been issued. Once lower-potency hemp-derived licenses are open for application, anyone who wants to continue sales or manufacturing will need to apply. The disqualifications listed above will also apply to hemp-derived licenses. If all application requirements are met and the hemp-derived license applicant is in good standing and has not incurred a disqualification, a license will be issued.
Questions should be sent to the Office of Cannabis Management at cannabis.info@state.mn.us.
View the legislative changes enacted in 2024 here: Chapter 121 - MN Laws
 Charlene Briner
Interim Director
Office of Cannabis Management
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