The federal government passed legislation that will significantly impact the federal legality of hemp-derived THC products. On Nov. 12, 2025, President Trump signed the bill into law—which includes a prohibition on hemp-derived products containing more than 0.4 milligrams of THC—that becomes effective Nov. 13, 2026.
As the pending prohibition nears, please be aware that this ban may significantly affect business decisions and businesses should seek legal advice.
This is a complex regulatory issue, and OCM will continue to work with partner agencies, legislators and industry participants to understand the specific impact on Minnesota’s hemp-derived THC industry. As new information is available on the impact of the new federal legislation on Minnesota, the office will make it available to impacted businesses.
While further assessment and dialogue is ongoing, the office will continue to implement chapter 342 as charged.
A hemp business may obtain and hold a lower-potency hemp edible (LPHE) manufacturer license, an LPHE retailer license, and an LPHE wholesaler license at the same time.
LPHE manufacturer, LPHE retailer, and LPHE wholesaler licenses may be held simultaneously with the following other licenses:
Additional LPHE manufacturer, LPHE retailer, and LPHE wholesaler 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 manufacturer, LPHE retailer, and LPHE wholesaler 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 retailer 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 retailers.
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 retailers with a local retail registration.
Businesses preparing to apply for LPHE retailer licenses are encouraged to begin conversations with local governments early to understand the process to obtain a local retail registration after OCM issues the LPHE business license.
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, chapter 9810.
The tested sample was found to meet testing standards established by OCM.
The testing lab received all known information regarding pesticides, 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.
Chapter 342, as passed by the Legislature in 2023, requires certain information to be affixed to the label, which must be on the package. 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 that is not required. Section 342.63 requires confirmation of testing, but does not require the certificate of analysis (COA) to be printed on the label or linked via QR code. The COA must be available upon request.
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.
A person, cooperative, or business holding a lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler license, a lower-potency hemp edible retailer license, or any combination of those licenses, may not hold a cannabis business license.
To obtain LPHE licensure, a business must have a physical 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.
Any LPHE manufacturers not located in Minnesota who want to sell into the state must seek approval from OCM before importation and must work with either a licensed cannabis wholesaler or an LPHE wholesaler with an LPHE importer endorsement. More information can be found in Guidance Memo 2025-02.
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 10 sites, the applicant must first enter the first 10 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 retailer 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. If you are operating more than 10 sites and have questions, please contact customer service.
Unlike for cannabis businesses, the law does not have a classification for social equity 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 to 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. There is a $250 application fee per site required when the application is submitted, and a $250 licensing fee per site, due when the license is ready to be issued.
