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 hemp-derived, 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, OCM has authorized a product transition period through December 31, 2025. 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 (HDCPs) and medical cannabis.
Below we outline how this product transition period impacts hemp-derived product retailers, manufacturers, and Minnesota’s medical cannabis program.
Through December 31, 2025, cannabis and hemp license holders authorized to sell lower-potency hemp edible products at retail are now able to:
The hemp-derived products purchased and sold by cannabis and hemp 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-derived businesses may continue selling hemp-derived products compliant with section 151.72. Once licensed, both cannabis retail businesses and lower-potency hemp edible (LPHE) retailer license holders will now be able to continue sales of hemp-derived products compliant under section 151.72 through December 31, 2025.
After December 31, 2025, all hemp and cannabis business license holders authorized to retail must follow all product requirements under chapter 342, including packaging, labeling, and testing.
To prepare for the LPHE licensing window and the regulatory transition from section 151.72 to chapter 342, including how requirements will shift after December 31, 2025, read the Hemp Registrant to License Holder Conversion Guide and Hemp Business Guide.
Once a hemp-derived manufacturer currently manufacturing products under section 151.72 receives a hemp 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 hemp-derived products compliant with section 151.72; it does not authorize the manufacture of products compliant with section 151.72 that are not compliant with 342.
Hemp-derived manufacturing businesses should prepare for the transition to licensure and assess stock and sell any remaining product that is not compliant with chapter 342 before licensure. To prepare for the LPHE licensing window, opening October 1, and the regulatory transition from section 151.72 to chapter 342, including how requirements will shift after December 31, 2025, read the Hemp Registrant to License Holder Conversion Guide and Hemp Business Guide.
Chapter 342 created a new licensing framework for the medical cannabis program. To prevent disruption in medical cannabis patients’ access to medical cannabis during the operational transition from sections 152.22-152.37 to chapter 342, the office will authorize 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 licensure 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.
Once a medical cannabis combination business is licensed, all new products cultivated and manufactured by the license holder must be tested according to and otherwise compliant with all of chapter 342, chapter 9810, and the office’s Cannabis Technical Authority.
