Having trouble viewing this email? View it as a Web page.

Oct. 15, 2024

Welcome!

This marks the official launch of the Cannabis Compliance Connector, a newsletter that will link you to information and updates from OCM's Compliance and Enforcement Team. This newsletter is another way for us to be a resource and partner for businesses, every step of the way. We plan to publish every other month.

OCM continues work to curb illegal sales of cannabis flower

In March, OCM began enforcement actions to combat illegal sales of cannabis flower across the state. While Minnesota has legalized the sale of hemp-derived cannabinoid consumer products, selling cannabis flower is illegal, outside of dispensaries operated by one of Minnesota's 11 tribal nations, because OCM has not issued any cannabis business licenses.  

Initial inspections are focused on education to help businesses achieve compliance. In many cases retailers are permitted to voluntarily destroy flower they offer for sale during the first inspection. In subsequent inspections, product will be destroyed or embargoed and the business may be fined and cited for violations of Chapter 342.  

Through Sept. 6, inspectors have destroyed 34,056 retail units of noncompliant hemp-derived cannabinoid products, representing an estimated retail value of $878,490. Through the same time period, OCM has destroyed nearly 190 pounds of cannabis flower offered for sale without a license, representing an estimated retail value of $564,900. 

What you need to know

These activities are NOT legal: Selling any cannabis through websites, yard signs, and posters for businesses offering delivery services. Selling any cannabis by subscription, delivery fee, or other alternative payment models (for instance, buying a t-shirt and getting free cannabis with the purchase).

Current status of hemp-derived cannabinoid products

On July 1, regulation of hemp-derived cannabinoid products moved from the Minnesota Department of Health (MDH) to OCM. All registrations for those retailers automatically became OCM registrations without having to register again.

These products are still regulated under Minnesota Statutes, section 151.72, until OCM issues licenses to lower-potency hemp edible manufacturers and retailers, which is anticipated to occur in summer 2025. When applications for lower-potency hemp business licenses open, retailers and manufacturers that want to do business in Minnesota must apply.

There will no limits to the number of lower-potency hemp licenses available. Any questions related to hemp-derived or any other cannabinoid products should be directed to cannabis.info@state.mn.us.

Important updates and reminders

When regulatory authority of Minnesota Statutes, section 151.72, moved from MDH to OCM, some interpretative changes were made. For example, nonintoxicating cannabinoids sold as soft gels (including CBD soft gels), capsules, and tablets are now considered edible products and are allowed for sale in Minnesota. The only hemp-derived cannabinoids that are permitted to be included in edibles and beverages are delta-9 and delta-8 THC, and non-intoxicating cannabinoids such as CBD, CBN, and CBG. This applies to all products containing cannabinoids, even those that a person may not expect would contain cannabinoids, such as mushroom gummies. Retailers selling hemp-derived cannabinoid products should always check their products to make sure they have QR codes that link to valid certificates of analysis (COAs), which show testing results for the products. OCM inspectors will pull products that do not have COAs linked via QR code. Check out OCM’s new Hemp-Derived Cannabinoid Product Compliance Quick Guide (PDF) to help streamline your product label review process. Penalties incurred due to violations of Minnesota Statutes, section 151.72, may affect a business’s ability to receive adult-use or lower-potency hemp edible business licenses in the future. Penalties incurred due to violations of Minnesota Statutes, section 342.19, will affect a business’s ability to receive adult-use or lower-potency hemp business licenses in the future. Minnesota law requires that OCM deny an application for a cannabis business license for five years by anyone issued a penalty under Minnesota Statutes Chapter 342.