More Guidance, More Questions: MN Hemp Industry Update

October 17, 2025

It’s been a dizzying couple of weeks trying to keep up with Minnesota’s hemp THC (excuse me, low-potency hemp edible (LPHE)) changes as we move to Minn. Stat. 342.

The Issues:

The Minnesota OCM has been taking heat as the transition from the old hemp statute (151) to the full cannabis statute (342) reveals pain points like:

• Hemp-derived products may no longer be shipped direct to consumer (DTC) in Minnesota, because the statute requires personal delivery to check the consumer’s ID and that they are not intoxicated. This is an enormous change for manufacturers and retailers that have been selling DTC.

• Manufacturers must change their labeling to comply with Minn. Stat. 342 rather than the temporary statute, Minn. Stat. 151, effective upon their license being issued.* Those changes include adding specific warning symbols and required information no longer being able to be provided via QR code.

• To be legal to sell in Minnesota, all products have to be tested in Minnesota, beginning Jan. 1, 2026.

• Hemp-derived THC retailers will need to get a retail registration from their local government, who must grant it (there are no opt-outs, caps, or zoning, unlike the adult-use industry. We are seeing cities being confused and/or playing games, though, which is not a good sign).

What’s New

*The good news: On Friday, Oct. 10, OCM released Guidance Memo 2025-3, which does extend timelines for labeling and other updates. It provides that OCM will wait to actually issue licenses to hemp manufacturers and wholesalers until Dec. 31, 2025. That gives manufacturers and wholesalers until the end of the year to design and implement revised labels that comply with Sec. 342.

Retail licenses, however, will be reviewed and granted on a rolling basis this fall. That means retailers will not be able to mail hemp-derived THC products direct to consumer once licensed. Under the previously-published Transition Guidance, retailers can sell both products compliant with Sec. 151 and with 342 until the end of 2025.

And, there is no delay to the license application deadline. It remains Oct. 31 at noon.

The bad news: on Oct. 10, OCM also released Guidance Memo 2025-2, which will require additional paperwork to import hemp THC products from states other than HI, KY, NY, and UT, because most states don’t really regulate hemp-derived products. In short, a wholesaler or an out-of-state manufacturer will need to write a detailed letter, attaching documentation, making the case that the out-of-state manufacturer follows high standards in five required categories.

And, the head-scratcher: Guidance Memo 2025-4, released yesterday, Oct. 15, attempts to address questions from industry participants who own brands, but do not do their own manufacturing / packaging / shipping.

Finally, OCM quietly released revised FAQs for hemp businesses. I note:

• An individual who holds any share of a cannabis licensed business cannot hold any share of a hemp business.

• Using “marketing layers” can help with transition labeling issues

What’s Next

In order to get the license application done by Oct. 31, I suggest:

• Focus first on the question of which license(s) you will apply for.

• Gather pieces that may take a minute.

  • Manufacturers need a labor peace agreement.

  • Retailers selling for on-site consumption (e.g. a restaurant or bar) will need to supply proof of insurance.

  • Whoever is filing needs a valid photo ID and the company’s Certificate of Organization and DBA filing, if any.

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