Product Transition Period

The lower-potency hemp edible (LPHE) business licensing application window is now closed. The deadline to complete and submit LPHE business license applications and application fee was noon (12 p.m.) CDT on Friday, October 31. OCM can no longer accept applications. The next window for submitting applications for LPHE licenses is expected in early 2026.

Launching a new retail market for cannabis and hemp-derived products that is governed by one statute (chapter 342), while maintaining existing markets authorized under other statutes (section 151.72 and chapter 152) is complex. Prospective lower-potency hemp edible (LPHE), adult-use cannabis, and medical cannabis businesses have understandably had questions about how to manage the transition between regulatory frameworks, particularly as it pertains to statutory requirements for products and packaging/labeling.

To support the launch of the adult-use cannabis market and provide continuity for existing hemp-derived businesses and medical cannabis patients, in July 2025, OCM authorized a product 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, on October 10, 2025, OCM issued Guidance Memo 2025-03, which clarifies prior guidance and provides details on when applicants for LPHE retailer, manufacturer, and wholesaler licenses can expect to receive a license.

During this transition period, license holders conducting retail sales under Minnesota Statutes, chapter 342, are authorized to sell products compliant under the existing regulated supply chains in section 151.72 and sections 152.22-152.37, including hemp-derived cannabinoid products and medical cannabis, subject to the conditions that follow below.

Below we also outline how the product transition period impacts hemp-derived product retailers, manufacturers, wholesalers, and Minnesota’s medical cannabis program.

Changes to terminology

With the transition of regulation under Minnesota Statutes from chapter 151 to chapter 342, the terminology used in statute for products derived from hemp has changed.

Hemp-derived cannabinoid product: A product containing cannabinoids extracted from hemp and intended for human or animal consumption or for external use. This term was utilized in previous statutory regulations prior to chapter 342 and is no longer a defined product category. Instead, hemp-derived products are defined as either (1) lower-potency hemp edibles or (2) hemp-derived consumer products.

Lower-potency hemp edible (LPHE): Per Minnesota Statutes, chapter 342, an LPHE is an ingestible product containing cannabinoids extracted from hemp, with up to 5 milligrams (mg) of THC per edible or 10 mg of THC per beverage, and may include up to 100 mg of cannabidiol (CBD), cannabigerol (CBG), cannabinol (CBN), or cannabichromene (CBC) per serving. Per Minnesota Rules, part 9810.2100, LPHEs only include the following product categories: edible products, beverage products, and hemp-derived tinctures.

Hemp-derived consumer product: A product containing cannabinoids extracted from hemp that is intended for human or animal consumption. This does not include lower-potency hemp edibles (LPHEs). Per Minnesota Rules, part 9810.2100, the only approved product categories of hemp-derived consumer products are (1) dried hemp flower and (2) hemp-derived oils intended to be consumed by combustion or vaporization of the product and inhalation of smoke, aerosol, or vapor from the product (hemp-derived vapes).

Edible hemp product or hemp product: Generic terms for products derived from hemp. The terms encompass both hemp-derived cannabinoid products and lower-potency hemp edibles (LPHEs) and are not used in statute.

Learn more about terminology and other key changes between temporary regulations in Minnesota Statutes, section 151.72, and the licensing framework under Minnesota Statutes, chapter 342, in the Hemp Registrant to License Holder Conversion Guide.

What the product transition period means for LPHE retailers
OCM will issue licenses to LPHE retailers on a rolling basis following the October 2025 application window. OCM will wait to issue licenses to LPHE manufacturers and LPHE wholesalers until December 31, 2025. This gives additional time to edible hemp product manufacturers and wholesalers to ensure business practices comply with state law.

Through December 31, 2025, cannabis and LPHE license holders authorized to sell LPHEs at retail are able to:
- Purchase edible hemp products that are compliant with section 151.72 from edible hemp product manufacturers that are not yet licensed as LPHE businesses under chapter 342
- Sell edible hemp products that are compliant with section 151.72 to customers
Important note: Manufacturing and selling hemp-derived consumer products is limited to cannabis business license holders. Once licensed, LPHE retailers are not authorized to sell hemp-derived consumer products (hemp flower and vape products).

The edible hemp products purchased and sold by cannabis and LPHE license holders during the transition period must be compliant with all packaging, labeling, and testing requirements as outlined in section 151.72.

Before and pending licensure, registered hemp businesses may continue selling edible hemp products compliant with section 151.72. Once licensed, both cannabis retail businesses and LPHE retailers may continue sales of edible hemp products subject to requirements as outlined in Guidance Memo 2025-03 and products compliant under chapter 342. Review the Guidance Memo's Retail operations post licensure section for further details.

OCM has resources to help businesses navigate the regulatory transition from section 151.72 to chapter 342, including how requirements will shift after December 31, 2025. Learn more by selecting the following links:
- Hemp Registrant to License Holder Conversion Guide (updated 9/19/2025)
- Hemp Businesses in Minnesota: A guide for lower-potency hemp edible license applicants (updated 9/19/2025)
- Guidance Memo 2025-03: Hemp Product Transition Authorized Activities and License Issuance Timelines (published 10/10/2025)
- Packaging and Labeling Guide for Cannabis and Lower-Potency Hemp Edible Products (updated 8/8/2025)
What the transition period means for hemp product manufacturers
Per Guidance Memo 2025-03, OCM will wait to issue licenses to LPHE manufacturers until December 31, 2025. This gives additional time to hemp product manufacturers to ensure business practices comply with state law.

After the new year, once an edible hemp product manufacturer currently manufacturing products under section 151.72 receives an LPHE or cannabis business license, they must only produce and sell products that are compliant with chapter 342. The product transition period authorizes the purchase and retail sale of edible hemp products incompliance with section 151.72; it does not authorize the manufacture of products compliant with section 151.72 but not compliant with chapter 342 after receiving an LPHE license.

Important note: Manufacturing and selling hemp-derived consumer products is limited to cannabis business license holders. LPHE manufacturers are not authorized to manufacture hemp-derived consumer products (hemp flower and vape products).

Edible hemp product manufacturing businesses should prepare for the transition to licensure at the end of the year by assessing stock and ensuring existing products can remain compliant by reviewing the requirements outlined in Guidance Memo 2025-03. 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 Packaging and Labeling webpage.

OCM has resources to help businesses navigate the regulatory transition from section 151.72 to chapter 342, including how requirements will shift after December 31, 2025. Learn more by selecting the following links:
- Hemp Registrant to License Holder Conversion Guide (updated 9/19/2025)
- Hemp Businesses in Minnesota: A guide for lower-potency hemp edible license applicants (updated 9/19/2025)
- Guidance Memo 2025-03: Hemp Product Transition Authorized Activities and License Issuance Timelines (published 10/10/2025)
- Packaging and Labeling Guide for Cannabis and Lower-Potency Hemp Edible Products (updated 8/8/2025)
What the transition period means for the medical cannabis program and medical cannabis patients

Chapter 342 created a new licensing framework for the medical cannabis program. To prevent disruption in medical cannabis patients’ access to medicine during the operational transition from sections 152.22-152.37 to chapter 342, the office authorized medical cannabis combination business license holders that previously held a registration agreement with the state’s medical cannabis program to sell medical cannabis products manufactured and tested prior to receiving a license and compliant under Minnesota Statutes, section 152.22, and Minnesota Rules, chapter 4770, to medical cannabis registry patients. This authorization also applies to limited product designated for sale to adult-use consumers subject to registration agreements.

All products sold by a medical cannabis combination business under this authorization must comply with the packaging and labeling requirements in chapter 342 and Minnesota Rules, chapter 9810. A new marketing layer, as that term is defined in part 9810.0200, subpart 38, may be utilized. Review the Packaging and Labeling Guide for Cannabis and Lower-Potency Hemp Edible Products (updated 8/8/2025) for more information.

Once a medical cannabis combination business is licensed, all new products cultivated or manufactured by the license holder must be tested according to and otherwise compliant with all of chapter 342, chapter 9810, and OCM’s Cannabis Technical Authority.
What the transition period means for cannabis events

Before and pending licensure, registered hemp product businesses may also sell hemp products compliant with section 151.72 at licensed cannabis events. The hemp products purchased and sold during the transition period must be compliant with all packaging, labeling, and testing requirements as outlined in section 151.72. The cannabis event license holder must provide their list of vendors, including registered edible hemp product businesses to OCM in their application.