For the past year, Minnesota’s lower-potency hemp edible (LPHE) market has operated in a state of regulatory grace. As of April 1, 2026, that period has officially ended. The Minnesota Office of Cannabis Management (OCM) has fully assumed the reins, and the rules of the game have shifted from “registration” to “strict licensure.” If you are a manufacturer, retailer, or wholesaler in the hemp space, here are some updates you need to know to stay on the right side of the law.
- The License Switch
Previously, the regulation of LPHE rested with the Minnesota Department of Health (MDH) under Section 151.72 of the Minnesota Statutes. MDH typically required mere registration in order to operate in the LPHE space, but that registration won’t cut it anymore. OCM’s assumption of LPHE regulation now requires distinct licenses. The MDH paradigm of regulation officially sunset on March 31, 2026. OCM accepted new applications for these licenses in October 2025 for the April 1, 2026 cutover, and they will continue to accept and process applications for LPHE licenses post-April 1st going forward.
- Product Classification Shuffle
OCM taking over regulation of hemp in Minnesota also establishes distinct categories of hemp products. Whereas Section 151.72 generally grouped hemp products together, the paradigm under OCM and Chapter 342 generally divides hemp into LPHE and hemp-derived consumer products (HDCP). LPHE includes things like hemp-derived THC beverages, edible products, and tinctures, while HDCP include things like vapes and hemp flower. Whereas operators registered under Section 151.72 might have been able to produce or sell all of these hemp products, licensed operators under LPHE will only be able to produce sell LPHE. HDCP production and sales are no only available under cannabis licenses.
- Packaging and Labels
Whereas MDH had lighter requirements on packaging and labels for hemp products, OCM is now requiring through its Product Compliance Guide that such products include labels and packaging that comply with Chapter 342. Including particular warning labels and increased ingredient transparency.
- Testing Bottleneck
Every batch of cannabis products produced in Minnesota (including LPHE) are required to be tested for potency and contaminates by a facility licensed by OCM. When Chapter 342 originally passed, the assumption was that developing in-state labs to test products would take time, and therefore require temporary reliance on out-of-state labs. These accommodations for out-of-state labs technically expired January 1, 2026. The issue is that few testing labs are presently in operation in Minnesota, thus generating a potential bottleneck in processing the required tests on batches. Luckily, the Minnesota Legislature passed legislation this session to extend to allow out-of-state testing facilities through May 31, 2027, thus hopefully allowing more time for the in-state testing networks to grow.
In short, though there is a lot of activity in the emerging Minnesota hemp market, the regulatory landscape still presents some potential minefields for operators. Particularly considering the fines and license revocations in store for those that don’t comply, the stakes can be significant. With that in mind, it is helpful to get your attorney involved early and often to avoid potential pitfalls.
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