Navigating Minnesota’s New Rules for Manufacturers and Sellers of Lower Potency Hemp-Derived Edible Products

By Andrea Golan

Aug 23, 2023

Unlike so many other state cannabis laws that impose separate and distinct regulatory frameworks for hemp and cannabis, Minnesota’s newly enacted recreational cannabis law (“Adult-Use Act”) incorporates hemp-derived cannabinoids into its state-legal cannabis industry.

While adult-use sales might not begin until 2025, the new law makes some significant changes to Minnesota’s existing rules governing the manufacture and sale of hemp-derived cannabinoid products. Some of those changes went into effect with the passage of the Adult-Use Act. Others do not take effect until 2025. We describe here some of the most notable changes.

Sellers of Edible Hemp Cannabinoid Products Must Register with the State of Minnesota

The Adult-Use Act requires every person selling “edible cannabinoid products to consumers” to register (free of charge) with the Minnesota Department of Health (DPH) by October 1, 2023. After October 1, sales of edible cannabinoid products by a person not registered are prohibited. The registration form was released on August 1, 2023.

"Edible cannabinoid product" is defined in the Adult-Use Act to mean any product that is intended to be eaten or consumed as a beverage by humans, contains a cannabinoid in combination with food ingredients, and is not a drug. This includes products containing CBD. By this definition, sellers of hemp extracts without additional ingredients are not considered “edible cannabinoid products.”

It is important to note that DPH takes a more expansive view as to whom is required to register than what is required under the Adult-Use Act. The Minnesota DPH registration form identifies manufacturers and retailers, exclusive liquor stores, breweries that make hemp-THC beverages (even co-packers who do not sell such products directly to consumers), and out-of-state companies that sell online or to businesses in Minnesota as “sellers.” This broad view of “seller” is not supported by the Adult-Use Act which requires persons who sell edible cannabinoid products to consumers to register with the State. Nonetheless, it may be best to err on the side of caution and submit the registration if your business activity qualifies you as a “seller” based on DPH’s broad view.

The registration form notifies registrants that their “establishment may be inspected by DPH to ensure the establishment is in compliance with all applicable laws and regulations.”

Cannabinoid Limits for Food and Beverages

Prior to the passage of the Adult-Use Act, there was no limitation imposed on the number of servings per container in an edible cannabinoid product and both food and beverages were subject to the 50 mg THC limit. Now, beverages are limited to two servings and may contain a maximum of 5 mg of any THC per serving. Products intended to be eaten may contain up to 5 mg of any THC per serving and 50 mg of total THC.

Hemp-Derived Cannabinoid Product Categories Prohibited in Minnesota

The Adult-Use Act clarifies that the following product categories are not permitted for sale in Minnesota:

Products intended to be smoked or vaped
Capsules
Tinctures (by their traditional definition as a compound dissolved in alcohol)
Raw flower that has had CBD or THC applied (raw hemp flower with not more than 0.3% total THC on a dry-weight basis is not regulated through the Adult-Use Act but is otherwise permitted for sale through Minnesota’s industrial hemp statute)
Products intended for injection or absorbed through the mucous membrane

Change in Regulatory Authority for Hemp-Derived Products

Oversight for hemp-derived products has moved from Minnesota’s Board of Pharmacy to the Department of Health. On March 1, 2025, oversight will be transferred to the Office of Cannabis Management.

Minnesota’s Cannabis Tax Applies to Edible Hemp-Derived Cannabinoid Products

Starting July 1, 2023, edible cannabinoid products are subject to the 10% Cannabis Tax. Nonintoxicating topical products are not subject to the 10% Cannabis Tax. See here for cannabis tax information.

How Will Cultivation, Manufacturing, Distribution and Sales of Hemp-Derived Cannabinoid Products Be Regulated in Minnesota Under the Adult-Use Act?

Stay tuned for the next post detailing how the cultivation, manufacture, distribution, and sale of hemp-derived cannabinoid products will be regulated under Minnesota’s new adult-use framework.

If you have questions about Minnesota’s hemp-derived cannabinoid or cannabis programs, reach out to Vicente’s Minnesota team at minnesota@vicentellp.com.

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