Hello local government partners,
We are reaching out to remind you of the upcoming window for lower-potency hemp edible (LPHE) licenses, which opens at 8 a.m. October 1 and closes at noon on October 31. As we announced earlier this spring, this is the opportunity for current registered retailers or businesses new to selling hemp-derived cannabinoid products to apply for a license. Following the close of the application window on October 31, a pending application or a license will be required to continue sales. Any retailers who do not apply for licensure will need to stop retail sales of lower-potency hemp edible products.
There are several differences between the lower-potency hemp edible business licensing process and the adult-use cannabis business licensing process. Please review the following in order to prepare for the window.
Lower-potency hemp edible licensing – Local compliance
During the October application window, businesses will be eligible to apply for the following licenses:
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Lower-potency hemp edible (LPHE) retailer
As covered in the Local Government Guide, the licensing process for LPHE businesses is outlined in Minnesota Statues, section 342.44. This process is different from the licensing process for cannabis businesses as outlined in Minnesota Statutes, section 342.14. Notably, state law does not require OCM to obtain proactive approval from local governments during the application process. However, similar to cannabis businesses, LPHE businesses are required to maintain compliance with state and local building, fire, and zoning codes, requirements, and regulations.
To implement the process as outlined in law, LPHE applicants are required to attest in their application that they are compliant with local regulations. This also means that a local government will not be notified via Accela that an LPHE applicant intends to operate in their municipality. However, OCM will notify the local government when a LPHE applicant receives their license.
Lower-potency hemp edible retailer licenses – Local retail registration
LPHE retailer applicants are required to apply for and obtain local retail registration from their local governments – this requirement is in addition to applying for and receiving licensure from OCM. Local governments are responsible for implementing the local retail registration process, and local governments should work directly with businesses to prepare for this process in advance of and during the LPHE licensing window in October. Once OCM issues an LPHE retailer license to a business, they will notify the local government, and the local government can then issue the local retail registration. Please make sure to register an account in Accela in order to receive all communication regarding licensure in your municipality.
Local governments may prepare for this process by accepting applications in advance of and during the licensing window. We encourage all local governments to keep engaging with potential applicants to inform them of any local approval process, including but not limited to the retail registration process. For guidance on the local retail registration process, please review the model ordinance, Local Government Guide, Retail Registration Form and Checklist, and visit our general licensing webpage.
The fees a local government may charge a business for a retail registration application, issuance, and renewal fee are limited in statute. The initial and renewal fee for LPHE retailers can be up to $125.
A local government may not limit the number of LPHE businesses in their jurisdiction. This is different than local retail registrations for cannabis businesses that may be limited.
