LPHE License Renewal

Per Minnesota Statutes, section 342.44(b), LPHE business license holders are required to renew their license annually with the Office of Cannabis Management (OCM). Renewal applications must be completed through the license holder’s Accela account.

OCM will notify license holders when the renewal application becomes available, 90 days before the license expiration date. Licenses must be renewed on or before the expiration date listed on the license to continue authorized business activities.

If a license renewal has not been approved by the expiration date—even if it is under review—the license holder must cease all operations as of the expiration date.

To avoid interruption to business operations, OCM recommends that license holders submit renewal applications as soon as possible, and at least 30 days before the license expiration date.

Renewal fees

Pursuant to Minnesota Statutes, section 342.11(a), the first annual renewal fee is included within the initial license issuance so there is not a fee associated with the first renewal. Beginning with the second annual renewal, license holders must pay the applicable renewal fee [Minnesota Statutes, section 342.11(b)].

License type	Renewal fee
Lower-potency hemp edible retailer	$250 per retail location
Lower-potency hemp edible manufacturer	$1,000
Lower-potency hemp edible wholesaler	$10,000

All renewal fees are nonrefundable, regardless of the outcome of the renewal application per Minnesota Statutes, section 342.11(a).

Accessing the renewal application

Ninety days before license expiration:

A notification email will be sent to each contact on file.
A Renewal Application link will appear within the license record in Accela.

If a renewal application has not been submitted after the initial 90-day notification, automated reminder notifications will be sent to business contacts at 60 days and again at 30 days before the license expiration date. License holders should begin the renewal process promptly to avoid operational disruptions.

Renewal application requirements

Contact and business information verification

License holders must attest that all contact and business information is accurate and up to date.

License holders are responsible for notifying OCM immediately of any contact or business information changes.

If updates are needed, they cannot be completed within the renewal application. Changes must be submitted to the office using the processes outlined on OCM’s Making Business Changes webpage, before your renewal application.
Annual diversity report
Pursuant to Minnesota Statutes, section 342.23, subd. 2, cannabis and hemp license holders must submit an annual report describing diversity within business ownership, management, employment, and contracted services. This section of the license renewal collects information about the ownership, management, workforce, and contracted services associated with the licensed business.

When completing this section, each individual should be counted only once according to their highest role within the organization. For example, if an individual is both an owner and an employee, they should only be counted in the owner category. The information collected supports OCM’s statutory annual diversity reporting obligations and helps monitor participation and economic inclusion across Minnesota’s cannabis industry. The data collected help OCM monitor participation in state-recognized small business programs and assess economic inclusion within the cannabis industry.

The annual diversity report includes the following questions.
- Workforce demographics – For each category below, license holders must report the race, ethnicity, and gender of individuals included in the category:
  - Business owners
  - Management
  - Employees
  - Contractors
- Supplier and contractor participation – License holders must also report whether the suppliers or contractors they work with are:
  - Social equity licensed cannabis businesses
  - Tribal cannabis businesses
  - Certified targeted group (TG), economically disadvantaged (ED), or veteran-owned (VO) small businesses (optional)
These businesses must be certified through the state of Minnesota Equity in Procurement (TG/ED/VO) Directory administered by the Office of State Procurement.

This section collects additional information regarding whether those contractors participate in state-recognized equity procurement programs or operate under a Tribal regulatory authority.

A targeted group small business is defined by the Minnesota Department of Administration as a business majority-owned and operated by women, persons with a substantial physical disability, or specific minority groups. The following certification categories may apply to contractors and/or suppliers as well as employees:
- Black-owned businesses
- Indigenous-owned businesses
- Hispanic-owned businesses
- Asian-owned businesses
- Persons with disability owned businesses
- Economically disadvantaged small business
- Veteran-owned small business
- Woman-owned business
Definitions for completing the diversity report

The definitions below apply only for purposes of completing the annual diversity report required under Minnesota Statutes, section 342.23, subd. 2, and do not alter or replace statutory definitions used for licensing or compliance.
- Owners: Business owners are individuals or entities that hold a direct or indirect ownership interest in the licensed business. This includes any individual or entity with an ownership interest as described in Minnesota Statutes, section 342.185, subd. 1(g).
- Management: Management is comprised of individuals who exercise operational control or decision-making authority over the business and are not counted in the business owner category. This includes officers, directors, managers, general managers, or any person with the authority to direct policies, supervise operations, hire or fire staff, manage or control finances, or make binding business decisions, whether or not they have an ownership interest. (Refer to control and managerial authority concepts in Minnesota Statutes, chapter 342 and Minnesota Statutes, chapters 302A and 322C for corporate and LLC governance.)
- Employees: Employees are people who perform services for hire for the employer cannabis business, provided that the services have been performed predominately within this state, and have not been counted in any previous categories. The category includes anyone who has been separated from employment for less than one year. The category does not include independent contractors. (Refer to Minnesota Statutes, section 181.960.)
- Contractors: Individuals or entities providing services who are not classified as employees and who meet Minnesota’s independent contractor standards and have not been counted in any of the previous categories. These individuals typically receive compensation reported on a Form 1099-MISC and maintain control over how their work is performed. (Refer to Minnesota Statutes, section 181.723, subd. 4, and Minnesota Rules, part 3315.0555 for independent contractor standards.)
- Suppliers: Cannabis business license holders with whom the license holder conducts business to obtain goods or services. Suppliers are considered a subset of contractors and should already be included in the contractor count when reporting.
 Labor peace agreement (LPA) - (LPHE manufacturers only)

Lower-potency hemp edible manufacturer license holders must attest that their labor peace agreement remains active and that no material changes have occurred since submission [Minnesota Statutes, section 342.44, subd. 1(c)].

If changes have occurred, license holders must notify OCM and submit updated attestation documentation that has been signed by a bona fide labor organization. The documentation must state that the business has entered into a labor peace agreement.
Workers’ compensation insurance
Pursuant to Minnesota Statutes, section 176.182, license holders are required to provide OCM with proof of workers’ compensation insurance coverage in compliance with Minnesota Statutes, section 176.181, subd. 2.

Information required

All renewal applicants must provide the following information as part of the renewal application:
- The name of the workers’ compensation insurance carrier.
- The policy number or self-insurance identification number.
- The policy coverage dates or self-insurance effective dates.
- Alternately, an attestation that the business is exempted from coverage requirements, per Minnesota Statutes, section 176.182.
License holders do not need to upload proof of workers’ compensation insurance during renewal unless the business is self-insured. Businesses that are self-insured must upload a copy of their permit to self-insure issued from the Minnesota Department of Commerce.

OCM must withhold licensure, renewal, or permission to operate if the required workers’ compensation information is not provided, as required under Minnesota Statutes, section 176.182.
Supporting documents
License holders may be prompted to upload one or more of the following required documents:
- Permit to self-insure for workers’ compensation: License holders that are self-insured for workers’ compensation insurance must upload a copy of their permit to self-insure issued by the Minnesota Department of Commerce.
- Attestation of labor peace agreement (LPA) (LPHE manufacturer only): Required for lower-potency hemp edible manufacturers.
- Updated product list (LPHE manufacturer only): Lower-potency hemp edible manufacturer with an edible cannabinoid product handler endorsement must submit an updated product list using the OCM Product List Template (.xls).
  - The product list includes:
    - Product name and description
    - Ingredients and flavoring ingredients
    - Ingredient brand names and vendors (including contact information)
    - Packaging
    - Intended use and consumers (medical, adult-use, or both)
    - Shelf life
    - Safety labeling instructions
    - Storage and distribution requirements
    - Planned annual volume
Final plans of record (FPOR)

License holders must attest that all final plans of record are current. Renewal applications cannot be submitted until all FPORs are up to date. If material changes have occurred, license holders must first submit the Final Plan of Record Material Changes Update Form and complete that process before completing the renewal application.

Material updates affecting LPHE manufacturing should be provided to OCM at least 10 days prior to implementation. For more information around material changes to FPORs, please see OCM’s Making Business Changes webpage.
Attestations and submission
Before submitting the renewal application, license holders must review and acknowledge a series of attestations confirming that the information provided is complete and accurate.

Once the renewal application is successfully submitted:
- A confirmation email will be sent to the license holder.
- OCM will review the renewal application and may request additional information if needed.
Communication regarding the processing of your renewal application will be sent to the email address(es) listed on the application. Please add NoReply@accela.com to your saved contacts and monitor your email for correspondence. Renewal fees are not paid at the time of submission.
Payment
Following OCM’s review of the renewal application, an invoice will be issued to the license holder for payment of the applicable renewal fee. Renewal fees apply beginning with the second annual renewal.

By submitting payment of the renewal invoice, the license holder acknowledges that:
- Renewal fees are nonrefundable.
- Payment of the renewal fee does not guarantee license renewal.
- The license holder agrees not to dispute or initiate a chargeback for the renewal fee once payment has been processed.
After payment is received and all renewal requirements are satisfied, OCM will notify the license holder if the license renewal has been approved or if additional action is required. Successful license renewals will be issued when the review is complete, but the date of expiration will reflect one year from the previous expiration date.

Grounds for renewal application denial

Per Minnesota Statutes, section 342.44, an application may denied if an applicant fails to provide:

The name, address, and date of birth of the applicant.
The address and legal property description of the business.
Proof of trade name registration.
Certification that the applicant will comply with the requirements of this chapter relating to the ownership and operation of a hemp business.
Identification of one or more controlling persons or managerial employees as agents who shall be responsible for dealing with the office on all matters; and
A statement that the applicant agrees to respond to the office's supplemental requests for information.
An attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement. The labor peace agreement must address the duration of the election (LPHE manufacturer only).

License nonrenewal

The office may not renew a license when the office has cause to believe that an LPHE business has violated an ownership or operational requirement in Minnesota Statutes, chapter 342 or Minnesota Rules, chapter 9810. The office may not renew a license if an LPHE business does not have tax clearance pursuant to Minnesota Statutes, section 270C.72. If the office proceeds with nonrenewal, the office will notify the license holder in writing, specify the grounds for nonrenewal, and will schedule a denial hearing at least 20 days after the notification.