Lower-potency hemp edible licensing update and revisions to Guidance Memo 2025-03

Dear applicant, 

You are receiving this message if you have applied for one or more of the three lower-potency hemp edible (LPHE) license types (retailer, wholesaler or manufacturer). This message includes important updates to the office’s timeline for issuing licenses to LPHE wholesaler and manufacturer applicants, and updates to guidance about the product transition period (note that we have revised Guidance Memo 2025-03). 

To address the complexities of transitioning from one regulatory system to a new one, and in order to provide continuity for existing hemp-derived businesses, the office authorized a product transition period earlier this year. In order to avoid the untenable situation where some license holders are operating under new regulations while others are operating under old regulations, the guidance memo set a single date to issue all LPHE manufacturing and wholesale licenses.     

There are a number of challenges facing applicants that have evolved since the office issued the Guidance Memo 2025-03 and the hemp license application window closed: 

• The announced federal ban on hemp-derived THC products coming in November 2026 and yesterday’s executive order concerning the federal rescheduling of cannabis have created uncertainty about the future of the hemp industry.  

• While testing infrastructure is still building in the state, there is also increased demand from cannabis businesses for product testing performed by the three state-licensed testing facilities that is impacting overall capacity to support both cannabis and hemp market demands. 

• After the initial review of applications received in October, the office issued 107 requests for more information to LPHE manufacturer and wholesaler applicants to allow businesses the opportunity to correct issues in their application and for the timely schedule of inspections to move toward licensure. 

To address these challenges facing the market, we are updating our timing for issuing licenses to LPHE businesses. The office will license LPHE wholesalers and manufacturers simultaneously on or after March 31, 2026, allowing them to continue to operate under Minnesota Statutes, section 151.72, past January 1, 2026, until they are licensed – including the ability to utilize out-of-state testing laboratories. We will continue to review and license LPHE retailer applications on a rolling basis, and businesses may continue to operate while pending application review as detailed in previous guidance.  

LPHE retailer license holders may continue to sell products consistent with the updated product transition guidance, ensuring that existing products that are tested and manufactured compliant with existing regulations do not have to be removed from shelves. 

Please review the updated Guidance Memo 2025-03 for full details. 

While these updates to the licensing timeline address several difficulties in transition, we understand that several businesses in the industry have identified additional concerns with the law’s requirements for labeling and testing standards for license holders. The office does not have the authority to change statute or to selectively enforce statutes, so the law’s requirement for licensed LPHE manufacturers to utilize in-state testing and meet labeling standards is expressly written in statute and requires legislative action to change [refer to Minnesota Statutes, section 342.61, subd. 1(b)].  

The office will support legislative discussions to address these concerns to enact a legislative solution that better meets business needs while ensuring continued protection of public health and safety. 

Thank you, 
Office of Cannabis Management