A hemp business may obtain a lower-potency hemp edible manufacturer (LPHE-M) license, a lower-potency hemp edible retailer (LPHE-R) license, and a lower-potency hemp edible wholesaler (LPHE-W) license at the same time.
LPHE-M, LPHE-R, and LPHE-W licenses may be held simultaneously with the following licenses:
Additional LPHE-M, LPHE-R, and LPHE-W licenses
An industrial hemp license under Minnesota Statutes, chapter 18K
Other licenses to prepare or sell food
Other licenses to sell tobacco or tobacco-related devices, electronic delivery devices, nicotine and lobelia delivery devices
Other licenses to manufacture or sell alcoholic beverages.
Pursuant to Minnesota Statutes, section 342.43, LPHE-M, LPHE-R, and LPHE-W license holders may not simultaneously hold any type of cannabis business license.
Yes. All LPHE license holders must maintain compliance with state and local building, fire, and zoning regulations. Further, all LPHE retailers must obtain local retail registration before beginning retail sales.
In addition to an OCM-issued license and endorsement, all LPHE-R license holders that obtain a retail endorsement must also obtain a retail registration from their local government before the business can begin retail sales. See Minnesota Statutes, section 342.22.
Applicants and license holders should work directly with local governments to obtain a retail registration.
Local governments may charge an initial retail registration fee of up to $125 per location. Retail registrations may only be issued by the local government after a business receives a license from OCM, the business pays the local retail registration fee, and, if applicable, the business passes any preliminary compliance checks conducted by the local government and is found to be in good standing on any applicable property taxes and assessments.
Local governments may not limit the number of local retail registrations they issue to LPHE-Rs.
Local governments may not prohibit the possession, transportation, or use of LPHEs in their jurisdictions.
Local governments are required to conduct annual compliance and age verification checks of LPHE-Rs with a local retail registration.
As businesses prepare to apply for LPHE-R licenses during the October 1 – October 31 application window, they are encouraged to begin conversations with local governments early to understand the process to obtain a local retail registration after OCM issues the hemp business license.
Yes. To deliver lower-potency hemp edible (LPHE) products to a consumer, a business is required to obtain an LPHE-R license. With the LPHE retailer license, the business can then obtain either a retail endorsement, a delivery endorsement, or both a retail endorsement and a delivery endorsement.
An LPHE retailer business can operate only as a delivery business and not operate a retail location if they only obtain a delivery endorsement and not the retail endorsement. Local retail registration is not required for a delivery-only LPHE retailer business.
Under Minnesota Statutes, chapter 342, LPHE retailers are not permitted to ship directly to consumers. Minnesota Statutes, section 342.46, subdivision 3, requires that before initiating a sale or completing a delivery, an employee of the LPHE retailer must verify that the customer is at least 21 years of age and subdivision 7 further prohibits the sale to a person who is visibly intoxicated. Subdivision 3 requires that the requirements in section 342.27, subdivision 4, apply to a hemp business’s verification of a customer's age.
This means the only permissible means by which an LPHE product may be provided to a customer outside of a retail location is through delivery. LPHE retailer businesses may obtain a delivery endorsement and deliver products directly to a consumer.
Testing standards were adopted and published following rulemaking in April 2025. Find more information about testing in the Cannabis Technical Authority: Standards for Sampling and Testing Cannabis and Hemp Products. All LPHEs, hemp concentrates, or artificially derived cannabinoids offered for sale must comply with the following requirements (Minnesota Statutes, section 342.61):
A representative sample of the batch of the artificially derived cannabinoids, LPHEs, or hemp-derived consumer products has been tested according to Minnesota Statutes, chapter 342 and Minnesota Rules, part 9810.
After January 1, 2026, the testing was completed by a licensed cannabis testing facility.
The tested sample was found to meet testing standards established by OCM.
The testing lab received all known information regarding pesticides, fertilizers, solvents, or other foreign materials, including but not limited to catalysts used in creating artificially derived cannabinoids, applied or added to the batch of LPHEs, whether applied intentionally or accidentally.
Test results for each batch are maintained for at least five years after the date of testing.
Test results are made available for review by any member of the public upon request. Results must be in plain language.
Products derived from hemp—which is grown within a USDA-administered or approved industrial hemp program and contains 0.3% total THC or below—are agricultural commodities. The 2018 Federal Farm Bill prohibits states and Tribes from interfering with the “transportation or shipment of hemp or hemp products.” As such, hemp concentrate commodities do not require special authorization to import or export. However, hemp concentrate containing more than 0.3% total THC or artificially derived, or synthetic cannabinoids not naturally occurring in hemp, is not “hemp” as defined in federal and Minnesota law and is therefore prohibited from crossing state lines.
No. Chapter 342, as passed by the Legislature in 2023, requires certain information to be affixed to the label, which must be on the package. That means a QR code would not suffice for the label requirements in section 342.63. This is different from requirements under section 151.72, which included temporary regulations for hemp-derived products. A QR code could still be utilized by a licensed hemp business to show additional information, like testing results (a certificate of analysis or COA). Section 342.63 requires confirmation of testing, but does not require the specific COA. The COA must be available upon request. A legislative amendment is needed to change these requirements to allow use of a QR code for required label information.
Understanding business practices will need to change from current practices to meet these chapter 342 compliance requirements, there are options that may be relevant for businesses.
For packaging to be used for multiple batches, a space could be reserved for an adhesive label that would contain the info that changes from batch to batch. Many manufacturers already add batch-specific information such as batch number and expiration date via laser printing or stamping, and that method could also be utilized for this information as well. The rules allow the use of a marketing layer, allowing additional flexibility in updating packaging after bulk purchases.
Beverage manufacturers can also package cans in a box if adding an adhesive label to the marketing layer.
The marketing layer of a label specifically refers to the outermost layer of a retail sale container, such as a bag or box that the package containing the product is placed in, that is predominantly apparent and visible. If the container consists of only a single layer, then the outer surface of the container is the marketing layer. Information required to be displayed on this layer must not be obscured in any way, including under a peel away panel.
Pursuant to Minnesota Statutes, section 342.44, subdivision 1 (c), an applicant for an LPHE manufacturer license must submit an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement as part of the application process.
Applicants for LPHE retailer and wholesaler licenses are not required to submit an attestation.
Yes, with a lower-potency hemp edible retailer license AND an on-site consumption endorsement. Samples must be consumed on the licensed premises. See Minnesota Statutes, section 342.46, subdivision 7.
All LPHE products imported into the state or containing products manufactured or cultivated from out of state must be labeled in a manner that provides customers substantially similar information to the requirements applicable to LPHE products under Minnesota Statutes, section 342.63. The labels must include:
If sourcing hemp parts or hemp concentrate from an industrial hemp grower: The license number of the industrial hemp grower, regardless of state of origin.
If the state of origin licenses the manufacturer: The name and license number of the out-of-state business that manufactured the hemp concentrate, or artificially derived cannabinoid; and, if different, the name and license number of the cannabis out-of-state business that manufactured the product.
If the state of origin does not issue licenses for hemp products: The name of the business, the business address, and state/country of origin.
Applicants will receive a license application number. Application numbers contain an A25, and once the license is issued, a License record is also generated which contains an L25. If a license holder is registering multiple sites under their license, the license number will have the -01, -02, etc. at the end of the license holder’s number.
For example, a lower-potency hemp edible retailer application and then license number will read:
LPDIS-A25-000001, LPDIS-L25-000001
For example, a lower-potency hemp edible manufacturer application and then license number will read:
LPMFR-A25-000001, LPMFR-L25-000001
For example, a lower-potency hemp edible wholesaler application and then license number will read:
LPWHL-A25-000001, LPWHL-L25-000001
Businesses are encouraged to apply early in the application window to obtain their application and license number that is required to be included on product packaging.
To apply for a Minnesota LPHE license, a company must have a physical business location in Minnesota. While there is no residency requirement to apply for a cannabis or hemp license, all hemp and cannabis businesses licensed in Minnesota must maintain a physical location within the state and must be registered with the Minnesota Secretary of State. OCM cannot license businesses outside of Minnesota’s jurisdiction.
Only one photo ID is required, and it should be that of the applicant. This could be an owner or a managerial employee applying on behalf of a company, but please ensure that if a non-owner is acting on behalf of the company, that this individual is explicitly listed as the applicant and/or authorized agent in the Contacts portion of the application. Application processing will be delayed if the photo ID received is that of an individual not explicitly listed as the applicant, authorized agent, or business owner.
To register more than 99 sites, the applicant must first enter the first 99 sites and pay the application fee for those sites. That will create an application number. Then from the main Accela menu, the applicant must select Create an Application and Site Registration and follow the steps to register each additional site, using the application number to connect it to the LPHE-R application when prompted. The applicant will be asked if they have been issued a license to which they will answer No and will proceed with adding sites to their application record.
The office is not issuing social equity classified licenses for hemp businesses. While you have the ability to make that selection in the application system, that selection will not result in the specific social equity license. If you select Yes when asked "Are you applying as a social equity applicant?" a system requirement to upload documentation of verification will be created. It is strongly recommended that you do not select Yes on the social equity question, as that will complicate the application process.
No. The Accela account use to approve zoning compliance of cannabis business site registrations cannot be used toto apply for a municipal lower-potency hemp license. You must create a new account for your lower potency hemp application.
No. All applicants must provide proof of Trade Name Registration issued by the Minnesota Secretary of State. There is no exemption in Minnesota Statutes chapter 342 even if there are exemptions in other statutes. This proof should include the company name along with the assumed name or DBA as listed on the registration. For more information on how to register your business with the Office of the Minnesota Secretary of State, please visit the How to Register Your Business webpage.
All applications must contain at least one Applicant, Authorized Agent, and Business Owner contact. Contacts are required to list their social security number (SSN). For a municipal store, you should provide the name of the city manager or the highest-ranking nonelected official, or general manager/individual responsible for the day-to-day operations of the municipal store.
Unlike other license types, LPHE retail license application fees are per site. In the application system, you may not be charged the full number of site application fees, and OCM will invoice you for additional site application fees at a later date after submitting your application and paying your preliminary fees.
