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June 5, 2025
In this issue:
News and Updates
Government relations updates
Resources and Reminders
News and Updates
First lottery for cannabis application licenses held today
The Minnesota Office of Cannabis Management (OCM) held its first lotteries today for social equity applicants and general applicants seeking cannabis business licenses in three license types that are available in limited quantities in state statute: cultivator, manufacturer, and mezzobusiness. For the cannabis retailer license—the fourth type capped in statute—OCM held a lottery drawing for social equity applicants (SEAs) only, preserving some of the advantages to SEAs envisioned in legislation. General applicants seeking a retail license will join SEAs not selected today for a lottery that will be held on July 22, providing another opportunity for SEAs to advance toward receiving a cannabis retail license.
The first four of the day’s lotteries took place at 11 a.m., drawing from a pool of 655 qualified SEAs. The three drawings held at 2 p.m. selected from a pool of 121 general applicants and 493 SEAs whose applications were not selected in the drawings held in the morning.
Applicants selected in the lotteries must still complete final steps in the licensing process before they are granted a business license, including passing background checks, providing a signed labor peace agreement with a bona fide labor organization, securing a site location and approvals from local units of government, and submitting final business plans to OCM.
For more information, go to the License Lottery webpage.
First Tribal-state cannabis compact signed
On May 20, Governor Walz signed the first Tribal-state cannabis compact called for in Minnesota’s cannabis law. The compact is between the White Earth Nation and the state of Minnesota. In establishing Minnesota’s cannabis law, the Legislature called on the governor to negotiate intergovernmental agreements—cannabis compacts—with Tribal Nations sharing territory with Minnesota to promote a cooperative and mutually beneficial relationship between the state and Tribes that enhances public health and safety, ensures a lawful and well-regulated cannabis market, encourages economic development, and provides financial benefits to both the state and Tribal Nations (Minnesota Statutes, section 3.9228).
Our Tribal Nations webpage provides a high-level overview of details that will be common to all compacts, and includes a link to the compact with the White Earth Nation. Please check out these resources for more information.
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Registration for hemp-derived cannabinoid product (HDCP) retailers reopened June 2 and hemp business license window to open in October
On June 2, OCM opened a new window for accepting registrations for businesses seeking to sell hemp-derived cannabinoid products (HDCPs) to consumers. Businesses that sell HDCPs but are not registered with OCM are in violation of Minnesota law and will be subject to enforcement action including the destruction of all the business’s HDCPs and penalties of up to $10,000 for each violation.
The second registration window will remain open until August 31, making it possible for unregistered businesses to become eligible to sell HDCPs, including hemp-derived THC beverages, during the busy summer season.
Businesses who are already registered do not need to register again, as your registration remains valid. To see if you are already registered, please see the excel file of registered businesses on our Registered Businesses webpage. OCM also announced that starting October 1 and continuing through October 31, it will accept business license applications for three license types: lower-potency hemp edible retailers, lower-potency hemp edible manufacturers, and lower-potency hemp edible wholesalers – the last of which is a new license type approved by the 2025 Legislature and signed into law by Governor Tim Walz on Friday, May 23.
All businesses who wish to continue selling low-potency hemp edibles will be required to apply for, and obtain, applicable licensure from OCM. Businesses registered prior to April 14, 2025, will be able to apply to convert to these LPHE license types during the October license application window. New businesses who were not previously registered, and businesses registered after June 1, 2025, will be able to apply for these LPHE licenses during the October license application window as well.
The Hemp Registrant to Licensee Conversion Guide informs businesses who wish to continue selling LPHEs how to stay in compliance until they are licensed for either hemp or cannabis business. The guide provides an overview of the transition process for current hemp registrants, product types, packaging and labeling requirements, product testing requirements, facility requirements, onsite consumption rules, and information on events and deliveries.
Businesses planning on applying for an LPHE license in October are encouraged to read the Hemp Businesses in Minnesota: A guide for lower-potency hemp edible license applicants. This guide goes over the legal framework, the supply chain, registration requirements, licensing timelines, LPHE license types, endorsements, certifications, local government considerations, beginning business operations, allowable business activities, and product requirements.
Patients finding relief from obstructive sleep apnea in largest study ever involving medical cannabis treatment
Patients with obstructive sleep apnea enrolled in Minnesota’s medical cannabis program are finding a noticeable improvement in their quality of sleep within four months of receiving medical cannabis, according to a new study conducted by researchers at the Minnesota Office of Cannabis Management (OCM).
This study, the largest on record involving obstructive sleep apnea (OSA) and medical cannabis patients, analyzed data from 3,102 first-time patients enrolled in the medical cannabis program with obstructive sleep apnea (OSA) between August 1, 2018, and July 31, 2023. The new report draws on data from patient enrollment, medical cannabis purchases, symptom and side-effect ratings at the time of each purchase, and patient survey results to describe the experiences of patients who are certified as having OSA by their health care practitioner.
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This past session, OCM identified opportunities to build upon the structure of Minnesota’s cannabis law and advanced a series of proposals for the 2025 legislative session. The final omnibus cannabis policy bill, Senate File (SF) 2370, passed on a voice vote in Conference Committee on May 16, before passing the Senate 34-33 and the House 80-50 on May 17. Governor Walz signed the bill into law on May 23, and the changes are now in effect.
The omnibus bill (now law!) included many of OCM’s recommendations as well as several new provisions from the Legislature, including many that impact licensing and businesses.
The following is a summary of key changes in the cannabis policy legislation in the 2025 session, effective upon enactment.
Changes to cannabis business licensing.
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Creates a new license variance process for cannabis testing facility applicants to address potential bottlenecks in testing capacity by allowing applicants to obtain a license while pending ISO accreditation.
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Adds clarity in the role of local retail registration, as local governments may issue local retail registration to an applicant with preliminary approval (which is prior to full licensure).
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Updates cannabis business application requirements to remove the requirement of two corporate officers' signatures and other duplicative requirements.
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Expands social equity criteria to include stays of adjudication and adjudications of delinquency in line with the justice-impacted vision.
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Allows for samples at licensed cannabis events (21+).
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Modifies requirements for transporter licensees. Removes randomized route requirements and the requirement to staff transporter vehicles with a minimum of two employees.
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Clarifies authorized activities for cannabis business licenses.
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Allows medical cannabis combination businesses to transport adult-use and medical cannabis and to deliver medical cannabis.
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Allows cities or counties to operate a municipal cannabis store and also hold a lower-potency hemp edible retailer license.
Changes to hemp business licensing and lower-potency hemp edible (LPHE) industry regulation
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Increases allowable limitations of CBD, CBG, CBN, and CBC amounts in an LPHE product from 25 mg to 100 mg.
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Creates a new LPHE wholesaler license type, including the ability to import LPHEs.
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Adds hemp product exporter endorsement for LPHE wholesaler licenses and LPHE manufacturer licenses.
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Adds new delivery endorsement for LPHE retailer licenses, allowing delivery of LPHE to consumers aged 21 and older.
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Allows LPHE beverages to include 10 mg in one single container as one serving size, rather than allowing two serving sizes of 5 mg each in one single container.
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Allows LPHE retailers with an on-site consumption endorsement to sell and permit consumption of LPHE beverages at an event hosted off-site, subject to local approval and other requirements.
Changes to the medical cannabis program
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Strengthens civil and criminal protections for medical cannabis patients, including the option for injunctive relief, and extends these protections to Tribal medical cannabis patients.
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Allows remote access to consultation for medical cannabis patients.
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Continues Tribal medical cannabis patients' reciprocity to access medical products.
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Establishes reciprocity for visiting patients from other states to access medical products.
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Directs OCM to develop a proposal to streamline the adult-use and medical cannabis supply chains.
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Aligns OCM with the state enterprise in Minnesota Statutes, section 10.65, to establish best practices for government-to-government relationships with Tribal Nations.
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Clarifies several definitions and other technical changes to improve implementation work.
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Clarifies cannabis expungement law (these changes will be overseen by the Cannabis Expungement Board).
The legislative session ended on May 19. There were several bills that passed and were signed into law by Governor Walz, and there are several pieces of legislation, including many agency budget bills, that are not complete. It is anticipated that the Governor will call a special session as legislative discussions continue in working groups. The omnibus commerce finance bill, which includes funding for OCM’s operations, has been agreed to by the commerce working group. The agreement passed on a voice vote. When a special session is called, it will be voted on in both chambers. We will provide updates when a special session is called by the governor.
Legislative changes: Implementation and updated guidance
OCM is working diligently to update guidance on the website to reflect the statutory changes included in this new law. All interested parties are encouraged to review the legislation directly as well to understand and track the changes, especially as licensing continues to roll out and interested businesses are making critical decisions impacted by these changes. Please watch out for updated guidance over the next several weeks and check dates on guidance documents to ensure you are utilizing the most up-to-date information.
Find local government guidance documents on the Local Governments webpage and licensing guidance on the General Licensing Process webpage.
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Resources and Reminders
Metrc: Digital tracking of cannabis from seed to sale
OCM has contracted with the company, Metrc, to develop and administer a digital tracking infrastructure, which traces cannabis and hemp products starting from cultivation through processing, testing, distribution and sale.
All cannabis and hemp businesses in Minnesota will need to create a Metrc account and attach serialized tags to every plant and product. State regulations require that all product is followed from seed to sale, from the first stages of growth to eventual retail sale.
Licensed businesses must use the statewide monitoring system (including software, tagging, and labeling tools) and are responsible for all costs to purchase and use the system. A high-speed internet connection is required to use Metrc.
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