Press Release: Minnesota Office of Cannabis Management will resume accepting applications for lower-potency hemp edible retailer, manufacturer and wholesaler business licenses on April 1

Last October, OCM received more than 2,200 applications from hemp businesses – including more than 2,000 from retailers seeking to continue or begin selling LPHEs in businesses ranging from smoke shops, big box liquor stores, nail salons and event venues. By March 31, all applicants for LPHE licenses from 2025 will receive an approval or denial from OCM. Those who wish to reapply—or apply for the first time—may do so, beginning April 1. Updated resources for LPHE license applicants will be available on OCM’s website on April 1. 

“We know there are businesses waiting eagerly for the office to reopen applications for LPHE licenses, whether because their application was denied or they missed the opportunity to apply during last year’s window,” said OCM Executive Director Eric Taubel. “With a federal ban of these products approaching in November—and uncertainty over efforts to delay or overturn that ban—we are offering Minnesota businesses a way to continue to participate in the market in a way that ensures products are safe and businesses are compliant with state law.”  

Last November, President Trump signed a bill into law containing a provision that will ban hemp-derived products containing more than 0.4 mg of THC in November 2026, which could greatly impact the viability of operating an LPHE business—including the hemp beverage industry, which was born in and has thrived in Minnesota. Recent bipartisan discussions about the federal ban have demonstrated that Minnesota’s home-grown, hemp-derived product industry is at the forefront of innovation, and the state’s approach to regulating LPHE products could serve as a model for others to follow.    

Like other states launching adult-use cannabis programs, the capacity for licensed testing facilities to keep up with the demand for product testing has been a challenge. Last fall—anticipating a potential bottleneck in product testing capacity—OCM authorized a product transition period for the state’s cannabis, hemp, and medical cannabis markets. By informing LPHE manufacturer and wholesaler applicants that they would not receive their licenses before March 31, 2026, OCM effectively created a three-month period for them to prepare for the transition from operating under the previous hemp edible cannabinoid product framework (Minnesota Statutes, section 151.72) to the state’s new cannabis and hemp law and licensing framework (Minnesota Statutes, chapter 342). That transition period will come to a close on March 31.  

Hemp industry participants have worked with state legislators to advance a bipartisan bill that would extend an expired allowance for hemp products to be tested by labs outside of the state, as long as those labs are able to meet criteria established by OCM. In the event that the Minnesota Legislature does not pass a testing bill before the end of March, LPHE businesses should be prepared to move all hemp testing in-state, which may require increased lead time for testing hemp and cannabis products while lab capacity is still building.   

“We are working closely with applicants for testing facility licenses to ensure that they move as smoothly as possible through the process in order to address the testing capacity needs the industry is experiencing,” said Taubel.  

Regardless of the outcome of the federal ban on hemp products in November, OCM will continue to offer support to business owners and provide guidance moving forward as businesses determine their path ahead in light of the evolving federal landscape. OCM will work with partner agencies, legislators and industry participants to understand the specific impacts on Minnesota’s hemp-derived THC industry.   

For more information, visit mn.gov/ocm.