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June 3, 2025
Welcome!
It's an exciting time at the Office of Cannabis Management (OCM)! Now that the cannabis rules (Minnesota Rules, chapter 9810) have officially been adopted, we look toward the first Minnesota cannabis businesses opening their doors. Preliminary cannabis application approvals have started to go out, and OCM is looking forward to partnering with applicants through the final steps of the process, including on-site inspections for all prospective licensees. In this month's issue, we will share about the inspection process and provide information on cannabis testing. You’ll also find continued education about the hemp-derived cannabinoid market, which is still under regulation of Minnesota Statutes, section 151.72.
In this issue:
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 License Holder 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.
Pre-license inspections – What to expect
Note: This information applies to the cannabis pre-license inspection process only. Registrants applying for or converting to a hemp license later this year will follow a similar, but modified process.
OCM has begun issuing preliminary application approvals for uncapped cannabis license types; however, before a business can begin operations, a few additional steps need to happen. Read on for additional details around the process for submitting your final plans of record and receiving a pre-license inspection.
For an in-depth look at all steps and requirements following preliminary approval, please review the Qualified Applicant Guide.
After an applicant receives preliminary approval from OCM, they will need to submit site location details, final plans of record, and receive zoning compliance certification. Once OCM has received these items, the enforcement and compliance team will coordinate with licensing on the next stage of the process: reviewing final plans of record for compliance with statute and rules and conducting an on-site inspection.
OCM has 90 days to either approve or deny applications following receipt of the final plans of record and site registration. The relative tightness of this timeline means that applicants should not submit their site registration until they are ready to open their business and are prepared for a pre-license inspection. A preliminarily approved business should not complete site registration until they have received all local zoning approvals, are compliant with state fire and building codes, and are less than 90 days from being able to open their doors. Applicants with preliminary approval have 18 months to complete these steps and prepare for final conversion to full licensure. A notice of preliminary approval is intended to demonstrate an applicant's preparedness and qualifications on the pathway to licensure and can be a tool utilized for securing funds, receiving local approvals, and preparing to be in full compliance.
OCM has received over 3,500 cannabis applications and expects a steady flow of businesses reaching the milestone of pre-license inspection readiness over the coming weeks. The office will work through reviews and inspection scheduling in the order in which site registration and final plans of record are received.
To ensure an efficient process and minimize revisions, applicants should pay close attention to detail on all final plans of records being submitted. Submissions need to include detailed descriptions of your plans and/or processes. These should be consistent with state regulations to avoid a delay in your pre-license inspection.
Once final plans of record are deemed complete and compliant, an assigned inspector will conduct a pre-inspection phone call to assess site readiness, followed by a scheduled on-site inspection.
Once the on-site inspection is passed, applicants can proceed to pay their final license fee and receive a license!
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Recalls
Several manufacturers have issued recalls on products which are non-compliant in Minnesota and must not be sold. If you wholesale or distribute products which have been recalled, it is your responsibility to remove them from the marketplace and to inform your customers that the products must not be sold. Please be diligent in removing recalled products immediately.
Thank you for your cooperation. By complying with recalls, you help to ensure the safety of your customers, and your business’ compliance with Minnesota regulations.
Once licensing goes into effect, OCM will post all recalled hemp and cannabis products on the website. Here are specific products which have been recalled in Minnesota to-date:
- Beezwax Limited Edition Disposables (2.2 g)
- Beezwax 3 g and 5.5 g Disposable Vapes, various flavors not marked “Low Dose”
- Tidal Wave Ocean 3.5 g Disposable Vapes, White Widow and Gorilla Glue
- Psyched and Third Eye Extracts mushroom and blue lotus edible and vape products
- SKOL Lemon Cherry Gelato gummies, batch number LCG-5D9-0324
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Q & A: On-sale alcohol establishments selling HDCPs
Q: Are customers required to pay only in cash?
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A: No. People may purchase HDCPs with credit cards, debit cards, checks, and cash, depending on which payment type(s) the business accepts.
Q: Is there a drink limit for each customer?
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A: There is no defined drink limit. On-sale alcohol establishments must ensure that they do not sell intoxicating products to someone who the retailer knows (or reasonably should know) is intoxicated.
Q: Is there a requirement to create separate bills for HDCPs versus other products?
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A: No, an establishment is not required to separate bills for HDCPs and other products. Please consult the Department of Revenue for any questions regarding how to implement taxation and any requirements (answer updated 6/11/2025).
Q: When an on-sale alcohol establishment orders HDCP from a distributor, are they required to list alcohol and HDCP products on separate invoices?
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A: There is no requirement for alcohol and HDCP to be invoiced separately.
Q: Can a retailer with an on-sale alcohol license sell HDCPs for off-site consumption?
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A: Yes, an on-sale alcohol establishment is able to sell HDCPs for off-site consumption without a separate license.
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Did you know? Lotus, kratom and kava products might contain THC and other cannabinoids!
OCM investigations of alternative products offered by many retailers who sell HDCPs show the presence of THC, synthetic or artificially derived cannabinoids. Some kratom, kava, and lotus products contain cannabinoids even though their labels do not indicate so. Any products that contain intoxicating cannabinoids without the proper labeling are noncompliant with Minnesota Statutes, section 151.72 and should be removed from retail sale.
Independent laboratory analysis of certain varieties of edible lotus products shows a range of intoxicating cannabinoids, with some as high as 45 mg per serving. For consumers who are subject to toxicology screens at work, you may wish to avoid these products.
If you have questions about whether a product is safe to consume, look for label statements that might suggest it contains intoxicating ingredients such as:
- This product can cause intoxication and a positive drug test.
- Do not use while operating motor vehicles.
- Do not operate heavy machinery while using this product.
- This product may cause drowsiness.
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Surveillance testing
The office is partnering with the Department of Agriculture to establish a Minnesota Cannabis Reference Lab. The reference lab will function as the referee lab for contested sample results, conduct investigations based on public health reports, and test industry wide surveillance samples. Surveillance testing is a parallel path whereby OCM will have inspectors collect samples directly from licensees, throughout the state, for evaluation separately from the required batch analysis. Surveillance sampling will not be used to test every product in the industry, but a representative sampling of all products. The testing results from the surveillance sampling will be compared to:
- Crop inputs reported by cultivators.
- Manufacturing inputs reported by manufacturers.
- Testing results from compliance batch analysis from the licensed testing labs.
By comparing the surveillance sampling results to the batch analysis results, OCM will be able to assess if the current batch testing program is catching all of the contaminants and risks in the system and assess the overall compliance of the industry, including:
- Are licensees taking appropriate and representative samples of their product for lab testing?
- Are cultivators reporting all crop inputs?
- Are manufacturers reporting all processing inputs?
- Are testing labs accurately reporting the lab testing results?
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