Background

The Minnesota Office of Cannabis Management (OCM) is charged with regulating both cannabis and hemp markets in bifurcated supply chains under Minnesota Statutes, chapter 342. With cannabis licensing now underway, OCM has begun the application and licensing process for lower-potency hemp edible (LPHE) businesses as passed by the Minnesota Legislature to replace the existing hemp registration process under Minnesota Statutes, section 151.72 – which contained the temporary regulations for what was known as hemp-derived cannabinoid products (HDCPs). The transition from temporary regulations to the permanent statutes and related rules will require changes to business practices.

In order to minimize the market disruptions, on July 2, 2025, OCM announced a /ocm/businesses/product-transition-period.jspproduct transition period for the cannabis, hemp, and medical cannabis markets. Recognizing the need expressed by hemp businesses for additional time to prepare for the transition to the law’s licensing framework, OCM now issues this guidance memo which clarifies the prior guidance on the product transition period and provides details on when applicants may expect to be licensed.

Summary

To support continuity for existing hemp-derived businesses, this guidance memo provides hemp manufacturers, hemp wholesalers, and hemp retailers with additional time to prepare for the transition to licensure under chapter 342. OCM will issue licenses to hemp retailers on a rolling basis following the October window. OCM will wait to issue licenses to hemp manufacturers and hemp wholesalers until December 31, 2025. This gives additional time to hemp manufacturers and wholesalers to ensure business practices comply with state law. By authorizing licensed hemp retailers, manufacturers, and wholesalers to sell existing products that are tested, manufactured compliant to section 151.72, and labeled with two symbols, the memo also outlines pathways for existing products to remain on retail shelves through the transition without compromising the public’s health and safety or compliance with statute. Businesses should review the memo carefully to understand how to ensure compliance through the transition.

Licensing timelines

The office opened the window for applications to LPHE manufacturers, LPHE wholesalers, and LPHE retailers on October 1, 2025, and will close the LPHE application window at noon (12 p.m. CDT), Friday, October 31, 2025. The office will review all applications expeditiously to ensure timely conversion from section 151.72 to chapter 342.

LPHE retailers

With the application window now open, the office has begun the review of submitted applications and will issue LPHE retailer licenses on a rolling basis following the October window. Once an application is approved, OCM will invoice the applicant for the license fee, and they will commence operations as an LPHE retailer under section 342.46. Once licensed, LPHE retailers will operate subject to the authorizations and requirements of Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810, including the authorized actions below.

LPHE wholesalers and manufacturers

The office will begin reviewing applications for LPHE manufacturers and LPHE wholesalers immediately and will make any requests to applicants necessary to complete the application process. However, the office will not issue final approvals to hemp manufacturers and wholesalers until December 31, 2025. On, or immediately after December 31, 2025, the office will invoice applicants for the license fee and they will commence operations as LPHE manufacturers and LPHE wholesalers under sections 342.45 and 342.455. Once licensed, LPHE manufacturers and LPHE wholesalers will operate subject the authorizations and requirements of Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810, including authorized actions below.

Product transition period

On July 2, 2025, the office issued guidance to the cannabis, hemp, and medical cannabis markets about a /ocm/businesses/product-transition-period.jspproduct transition period. This period is designed to provide a minimally disruptive transfer between prior governing statutes (section 151.72 and the Therapeutic Research Act) and the new unified regulatory statute (chapter 342). The following guidance clarifies the product transition period and provides additional detail to hemp operators on how to get into and stay in compliance as Minnesota’s hemp market moves under Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810.

Operations prior to licensure (all LPHE licenses)

Under Minnesota Statutes, section 342.18, an LPHE retailer applicant that previously registered with the office pursuant to section 151.72, subdivision 5(b)—and who remains in good standing with the state—may continue operations under an active registration until their application is approved or denied.

Current businesses that manufacture and/or wholesale HDCPs may likewise continue to manufacture, package and test consistent with section 151.72. However, in light of the transition to chapter 342 and the authorized actions below, manufacturers should, at a minimum, update packaging forms and templates to include the universal symbol adopted in Minnesota Rules, part 9810.1400, subp. 3(A), and the warning symbol adopted in part 9810.1400, subp. 3(B). The office hosts downloadable versions of both on its /ocm/businesses/packaging-and-labeling.jspPackaging and Labeling webpage.

Manufacturer operations post-licensure

Once licensed at the end of the year, LPHE manufacturers must adhere to all manufacturing, packaging, labeling and testing requirements in Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810. This includes the following requirements:

• LPHEs must be tested by a licensed testing facility as required in section 342.61, subd. 1.
• Include on the label the name and license numbers (if applicable) for hemp plant part and concentrate suppliers as required in section 342.63.
• Include the universal symbol and warning symbol developed by the office (in rules) as required in section 342.63.
• Only sell LPHEs to other licensed businesses that are authorized to purchase LPHEs.
• Only manufacture LPHEs as defined in section 342.01, subd. 50, and which are in an LPHE approved product category under part 9810.2100, subp. 3. Other hemp products are defined as hemp-derived consumer products in section 342.01, subd. 37, and may only be manufactured, distributed and sold in the cannabis supply chain.

In addition, once licensed at the end of the year, an LPHE manufacturer may sell existing product in its possession that it manufactured to another license holder, if the product meets all of the following conditions:

• It was manufactured consistent and in compliance with section 151.72.
• It was tested prior to the issuance of the LPHE manufacturers invoice by either a Minnesota licensed testing facility or any laboratory that has been accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization with specific accreditation for cannabis testing.
• It is labeled with the universal symbol adopted in part 9810.1400, subp. 3(A) and the warning symbol adopted in part 9810.1400, subp. 3(B) on the outer most layer of packaging.
• It is not past the product’s expiration or best used by date.

Wholesale operations post licensure

Once licensed at the end of the year, LPHE wholesalers must adhere to all wholesaling requirements in Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810. This includes the requirement that:

• Any product imported into Minnesota marketed as an LPHE must meet all of the following conditions:
  • It was tested by a Minnesota licensed testing facility.
  • It was manufactured in a state with substantially similar hemp regulations to Minnesota, or the wholesaler shows OCM that the manufacturer engages in practices consistent with those required/ for Minnesota LPHE manufacturer license holders (for more information see newly issued Guidance Memo 2025-02).
  • It meets all Minnesota statutory and regulatory requirements, including potency or milligram limits, packaging and labeling requirements, and product form.
• Any products intended for export are physically separated from all LPHEs and must be in packaging that clearly states that the products are not for sale in Minnesota.

In addition, once licensed at the end of the year, an LPHE wholesaler may buy from and sell to another license holder:

• Products manufactured, packaged, labeled, and tested according to chapter 342
• Products described as authorized to be sold above by LPHE manufacturers to other license holders
• Products in the possession of the LPHE wholesaler purchased prior to the issuance of the LPHE wholesaler invoice, if the product meets all of the following conditions:
  • It was manufactured consistent and in compliance with section 151.72
  • It was tested prior to the issuance of the LPHE wholesaler invoice by either a Minnesota licensed testing facility or any laboratory that has been accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization with specific accreditation for cannabis testing.
  • It is labeled with the universal symbol adopted in part 9810.1400, subp. 3(A) and the warning symbol adopted in part 9810.1400, subp. 3(B) on the outer most layer of packaging.
  • It is not past the product’s expiration or best used by date.

Retail operations post licensure

Once licensed (on a rolling basis through the end of the year following the October application window), LPHE retailers must adhere to all retailing requirements in Minnesota Statutes, chapter 342 and Minnesota Rules, chapter 9810. In addition, to ease testing concerns, ensure continuous supply, and prevent manufactured product from going to waste, LPHE retailers are authorized to sell:

• Products manufactured, packaged, labeled, and tested according to chapter 342
• Products described as authorized to be sold above by LPHE manufacturers to other license holders
• Products described as authorized to be sold above by LPHE wholesalers to other license holders
• Products in the possession of the LPHE retailer prior to January 1, 2026, if the product meets all of the following conditions:
  • It was manufactured consistent and in compliance with section 151.72.
  • It was tested prior to January 1, 2026, by either a Minnesota licensed testing facility or any laboratory that has been accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization with specific accreditation for cannabis testing.
  • It is labeled with the universal symbol adopted in part 9810.1400, subp. 3(A) and the warning symbol adopted in part 9810.1400, subp. 3(B) on the outer most layer of packaging.
  • It is not past the product’s expiration or best used by date.

Additional resources

• /ocm/assets/2410008_OCM_Hemp_Registrant_to_Licensee_Conversion_Guide_v1.3_tcm1202-683554.pdfHemp Registrant to License Holder Conversion Guide (published 5/9/2025, last updated 9/19/2025)
• /ocm/assets/2410008_OCM_Hemp_Businesses_in_Minnesota_Guide_v1.3_tcm1202-683553.pdfHemp Businesses in Minnesota: A guide for lower-potency hemp edible license applicants (published 5/9/2025, last updated 9/19/2025)
• /ocm/businesses/product-transition-period.jspProduct Transition Period webpage (published 7/2/2025)
• /ocm/assets/2506002_OCM_Packaging_and_Labeling_Guide_1.0_tcm1202-701233.pdfPackaging and Labeling Guide (published 8/8/2025)
• /ocm/businesses/licensing/process.jspLicensing Support Documents (published 9/19/2025)
• Guidance Memo 25-02: Standards for out-of-state hemp product importing (published 10/10/2025)