Product Transition Period

The product transition period ended on March 31, 2026.

Lower-potency hemp edible (LPHE) business license applications are being accepted and reviewed on an ongoing, rolling basis. Apply on Accela.

Launching a new retail market for cannabis and hemp-derived products governed by one statute (chapter 342), while maintaining existing markets authorized under other statutes (section 151.72 and chapter 152) was complex. Prospective lower-potency hemp edible (LPHE), adult-use cannabis, and medical cannabis businesses 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, OCM issued Guidance Memo 2025-03 on Oct. 10, 2025, and updated it on Dec. 19, 2025, and Feb. 24, 2026, to clarify prior guidance and provide 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, were 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.

Changes to terminology

With the transition of regulation under Minnesota Statutes from section 151.72 to chapter 342, the terminology used in statute for products derived from hemp 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.

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 historical guide, Hemp Registrant to License Holder Conversion Guide.