For Immediate Release
Governor Tim Walz signs bipartisan bill allowing Minnesota hemp businesses to continue using
out-of-state testing facilities through May 2027
Change in statute will offer immediate relief to hemp and cannabis businesses
experiencing product testing delays
St. Paul, Minn. – Today, Governor Tim Walz signed a bill passed by the Minnesota Legislature allowing businesses manufacturing lower-potency hemp edibles (LPHEs) to continue using out-of-state testing facilities until May 31, 2027, as long as those labs are able to meet criteria established by the Minnesota Office of Cannabis Management (OCM). Championed by legislative partners Senator Lindsey Port and Representative Jess Hanson, the allowance will immediately relieve pressure on both the hemp and cannabis supply chains created by limited capacity of the state’s current three licensed testing facilities to keep up with product demand created by eager customers and new businesses entering the market.
Business leaders in the state’s LPHE industry—which includes low-dose THC edibles and the THC beverages that have become ubiquitous in Minnesota breweries—worked with OCM and state legislators to craft this bipartisan bill. OCM Executive Director Eric Taubel testified in support of the change as it provides immediate relief to licensed LPHE and cannabis businesses who are facing extended wait times for products to be tested.
“Minnesota is not alone – every state has had challenges with lab capacity at launch of their adult-use markets, because of the rush of new businesses preparing to enter the market needing to test new products,” said Taubel. “Cannabis and hemp businesses have been frustrated with this bottleneck in the supply chain. This bill allows us to build our in-state capacity while hemp businesses continue using out-of-state testing facilities until next year.
The change in state law comes at a time of new uncertainty for hemp businesses across the country due to federal legislation. Last November, President Trump signed a spending bill containing a provision that will ban hemp-derived products containing more than 0.4 milligrams of THC in November 2026, which could have a devastating effect on the LPHE market, including the THC beverage industry in Minnesota.
“At a time when hemp businesses are facing uncertainty from the federal government on whether there will even be a low-dose THC market after this year, in Minnesota we are finding ways to ensure that hemp businesses are able to operate safely and have products available to customers who are demanding them,” continued Taubel.
Regardless of the outcome of the federal ban on hemp products in November, OCM will continue to support businesses and engage with members of the hemp industry as they determine their path forward. OCM is implementing Minnesota Statutes, chapter 342, as charged and will continue to monitor and share the impact of potential federal legislation on licensed businesses as it becomes available.
The passing of this bill comes after OCM announced last week that the office would again begin accepting applications for LPHE licenses beginning April 1. All hemp license types will be available, including LPHE manufacturer, wholesaler, and retailer. Applications will be accepted and reviewed on an ongoing, rolling basis. Also beginning April 1, all hemp businesses will transition to regulation under chapter 342. Once licensed by OCM, all license holders must adhere to the requirements of statute and rule, including the product testing, labeling, and local registration requirements of licensure. LPHE license holders should review Guidance Memo 2025-03 as well as the resources available on OCM’s website for more information about the transition to licensure.
For more information about out-of-state compliance testing requirements for hemp products manufactured or sold by licensed businesses under this new bill, visit OCM’s Standards for Sampling and Testing Cannabis and Hemp Products webpage, or read OCM's Cannabis Technical Authority.
For more information about applying for an LPHE license, visit mn.gov/ocm/businesses/licensing/process.
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