Federal rescheduling, a Klobuchar-Rand bill, and NECann in MN

MN CANNABIS UPDATES

MN-OCM has now issued more than 200 cannabis licenses, including 52 for cultivation activities. There are also 2 new testing labs, Adams Independent Testing and True North Analytical (more info on OCM's Licensed Testing Facilities webpage)

Minnesota March retail sales: $13 million adult-use + $9 million medical sales.

MN Legislative Update: The Minnesota Legislature is in session until May 18, and both uncontroversial and controversial cannabis law changes are still being negotiated. Kudos to industry group SotaCANN for advocating at the Capitol, navigating the politics of the near-deadlocked divided Legislature (Senate is 34-33 DFL; House is 67-67 DFL and GOP!). Based on SotaCANN’s last update, things in play include allowing licensees to transport directly to testing facilities; a proposed ban on single-use vapes; various technical changes brought forward by OCM; reopening the transport license for new applications; decreasing the size of the required testing sample; easing social equity investment rules; and unifying the now-bifurcated supply chain between medical and adult-use. It’s not clear what, if any, of these issues will move forward.

MN-OCM announced recipients of CanGrow grant funding, including to two good friends of this newsletter: the Minnesota Cannabis College and Oaksterdam University! Also announced: applications are due by June 1 for the next round of funding. These grants are made to eligible organizations who then will provide educational resources, guidance, and low-interest loans for farmers who want to be part of the legal cannabis industry. (See info from Oaksterdam below)

A new study from the Minnesota Department of Health found that cannabis use in Minnesota's youth has continued to decline as Minnesota legalizes.

In spite of what was said in last week's Nuggets, the Minnesota Cannabis College is still looking for a new home where they can both conduct licensed cultivation operations and teach classes. Have a lead? Reach out to Alysha at [email protected]

LAST CALL for FREE Minnesota Farmer Training with Oaksterdam and Jen Randolph Reise

The Minnesota Office of Cannabis Management (OCM) has selected Oaksterdam University to administer the state’s CanGrow grant program to help farmers enter or expand into the cannabis industry.

Space is limited to just 15 farmers, so make sure you reach out to [email protected] to express your interest today!

Oaksterdam will support up to 15 Minnesota cannabis farmers in developing and maintaining cultivation plans. This is more than a requirement—it is a roadmap for business development and implementing SOPs that increase efficiencies, reduce waste, and help the business stay compliant. We pair our industry-recognized Horticulture Mastery Certification with one-on-one coaching from our Chair of Horticulture, Joey Ereñeta, and Minnesota attorney and cannabis business consultant, Jen Randolph Reise.

Do you know a farmer in Minnesota who may be interested and qualify? Reach out to [email protected] to let us know!

OTHER CANNABIS NEWS

Federal

Federal Rescheduling Movement:

The Trump Administration announced last week that state-legal medical operations were rescheduled immediately to Schedule III of the Controlled Substances Act.

Adult-use cannabis operations are also moved forward but not as quickly: the acting Attorney General announced a formal administrative hearing process would be held June 29 - July 15. Experts on a powerhouse webinar on Monday from national law firm Vicente said that, best case, we could see a final rescheduling order by the end of the year. But they cautioned that that timing is subject to risks of delay (like happened to the previous round of rescheduling hearings under the Biden administration), litigation (prohibitionist groups have already hired Bill Barr to bring challenges), and political uncertainty.

Jen’s take: Reminder that whether there is a final rescheduling order by the end of 2026 is important because that drives whether adult-use operations will have to pay the crushing extra federal taxes under Section 280E for 2026. With that looking unlikely, a big loser here is the hemp THC industry - unless it can get its own fix (see below). Read More

The DEA has already launched an online portal for registering medical cannabis companies. Note from Jen: National cannabis law firm Vicente warned in Monday's webinar that companies should understand the pros and cons of registration before taking that step.

New Federal Hemp Legislation

On 4/20, Sens. Amy Klobuchar and Rand Paul introduced the bipartisan Hemp Safety Enforcement Act. This bill would preserve the hemp THC industry, which is facing down a near-total federal ban that will come into effect Nov. 12, 2026 unless federal changes are passed, by allowing states and tribes to opt out of federal rules and take full control of hemp regulation. It requires minimum age limits and bans synthetic cannabinoids, protects interstate commerce, and preserves consumer access to safe hemp products.

Jen’s take: This state-by-state approach feels very smart for this moment. I hope Congress can get this done! I’m also hearing other folks expecting that hemp beverages, at least, will get saved at the 11th hour. Stay tuned…

Around the States

Colorado: A proposal in the CO Legislature would allow for sales of up to 10-mg hemp THC drinks in bars, restaurants, and liquor stores, inspired by Minnesota.

Illinois: IL made $31.8 million in forgivable loans to social equity cannabis businesses, the third round of loans under the state program.

Massachusetts: MA made significant changes to its cannabis rules, including authorizing consumption lounges and allowing licensees to hold more licenses together.

Missouri: MO Gov. Mike Kehoe signed a bill to effectively ban the manufacturing and sale of intoxicating hemp products, reports Ganjapreneur.

Virginia: Lawmakers rejected Gov. Spanberger's proposed changes to the adult-use legalization bill. Stay tuned: will the Gov. now sign the bill as is, and launch a MSO market on Jan. 1, 2027?

Confidential Industry Classifieds

Seeking Outdoor Growing Space
Do you have property in a cannabis-friendly community that you are interested in leasing to licensed cultivators? Contact Jen at [email protected] to be put in contact with potential tenant seeking to lease 3-5 acres to grow outdoors. Ideally western metro / within an hour out.

Seeking Dispensary Space to Lease
Do you have a retail storefront that would make a good dispensary? Contact Jen at [email protected] to be put in contact with potential tenant seeking to lease space.

Guest Blog: Cannabis Dust Exposure: What Minnesota Micro-Business Owners Must Know to Stay MNOSHA Compliant

By Cathy Hovde of Resilient EHS

When you are running a micro cannabis business, your focus is naturally pulled in a hundred directions at once: perfecting your craft, securing your license, and keeping the lights on. In the rush to get operations off the ground, it is easy to forget that the plant itself can be a potent occupational hazard.

READ MORE HERE →

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