Hello local partners, 

As the legislative session has now wrapped up, we wanted to reach out to share updates made to Minnesota Statutes, chapter 342, that will impact local governments, as it relates to cannabis.  

First, we wanted to share an update from OCM. Many local partners have expressed to our office that it would be helpful to have a list outlining what OCM reviews as part of a cannabis business inspection. In response to the feedback, we have now created public-facing pre-license inspection lists specific to each license type on our website: Preparing to Open. Please note that Minnesota Statutes, chapter 342, does not require local governments to inspect any of the items on this list. Review Minnesota Statutes, section 342.22, for information regarding the requirements for annual age-verification compliance checks by local governments, as well as A Guide for Local Government on Adult-Use Cannabis and Lower-Potency Hemp Edible Licenses.  

Changes to Chapter 342: 2026 Legislative Session Recap  

For a high-level overview of all the changes to the cannabis law, please review OCM’s 2026 Legislative Changes to Chapter 342, which we invite you to share with your audiences. 

Listed below are the changes that directly affect local governments.  

• Requires cities that maintain retail registration authority to meet the cap they set in their ordinance (though are not required to seek out businesses to apply) regardless of how many registrations have been issued in the rest of the county. 
  • Adds language to encourage counties to work with cities that have provided consent to issue retail registrations to prevent a concentration of retail locations in one area of the county or otherwise meet local goals. 
• Requires local units of government (LUGs) who conduct age verification compliance checks to submit data on those compliance checks to OCM annually, at a minimum. 
  • This provision takes effect on Aug. 1. OCM will provide guidance for LUGs on how to submit this information. 

• Clarifies that restrictions on time, place, and manner for cannabis businesses should be in ordinance rather than articulated through other methods. 
• Transitions the medical cannabis combination businesses to the new macrobusiness license type. This change is part of a comprehensive effort to streamline the medical and adult-use supply chains, effective Jan. 1, 2027. 
• Allows for a macrobusiness to be denied retail registration if a local government has reached its cap set in its ordinance. Previously, medical cannabis combination businesses could not be denied based on a local government reaching its cap. 
• Clarifies that applicants must comply with state building and fire codes (which may require an applicant to seek out third-party certification if their local government does not enforce codes themselves).  
  • If the local government does not respond to provide certification–either based on its own review or review of third-party materials–OCM can move forward with issuing a license.  

• Removes outdated language that allowed local governments to temporarily prohibit cannabis businesses while they conducted studies to inform cannabis ordinances. 

We encourage local governments interested in future statutory changes to work with the League of Minnesota Cities, Association of Minnesota Counties, and other collaboratives. OCM is able to provide technical assistance for legislative proposals, and we’re looking forward to continued collaboration on these important issues impacting both the state and local government partners as we work together to regulate the cannabis industry across the state. 

As a reminder, OCM’s website has a page containing resources for local governments. Please note that our office is working on updating the resources on the webpage to reflect the latest changes to the statute. We will issue another bulletin when those changes are completed. You can also find information on licenses issued on our Summary Application Data webpage, and information about the cannabis market throughout the state on our Cannabis Market Monitor dashboard.  

As always, please let us know if you have any questions we can answer. You can reach out to our customer service team by filling out the contact form. If you have questions on OCM licensing or Accela, you can reach us at local.licensing.ocm@state.mn.us.  

Past OCM bulletins for local government partners    

• LPHE licensing, retail registration, reopening of hemp application window April 1 (Shared April 1) 
• Lower-potency hemp edible licensing updates for local governments (shared December 19) 
• Important updates for local governments regarding lower-potency hemp edible window (shared September 19)   
• Important Updates for Local Governments and New Version of the Local Government Guide (shared August 12)    
• Local Government Webinar - Revisiting Zoning Compliance Certification and Retail Registration & Upcoming Licensing Windows (shared July 11)     
• Important Updates for Local Governments and New Version of the Local Government Guide (shared July 3)     
• Retail Registration Bulletin (shared June 4)     
• Retail Registration Bulletin (shared May 2)