MN CANNABIS UPDATES

Last-Minute Testing Extension for Minnesota’s Hemp THC Industry

Separate from the federal hemp ban set to come into effect on Nov. 12, 2026, Minnesota's hemp THC industry has been scrambling to comply with changes in state regulation of the Low-Potency Hemp Edible industry that by law go into effect when licensing of that industry goes into effect. Those changes include packaging and labeling changes, no more mailing direct to consumer, and that all product testing must be completed in Minnesota. OCM had already delayed licensing effectiveness to the end of the year rather than as each license was approved, to create more transition time and certainty. 

However, a testing bottleneck still loomed, especially as the adult-use industry is getting online and also needs to test in Minnesota, and only three labs are licensed so far. 

After a lot of communication from the industry, on Friday afternoon (12/19) OCM announced that they were delaying the licensing effectiveness of Low-Potency Hemp Edible licenses until March 31, 2026 through a revised Guidance Memo 2025-3. That means that the LPHE industry can continue to test out of state until March 31. 

Jen's take: I'm glad to see OCM finding ways to give more flexibility to an industry that certainly needs it. I wish they weren't setting up a pattern of making favorable changes at the last minute, as it enrages the industry players who work proactively to avoid issues and encourages others to wait to be saved. But there were numerous breweries and other manufacturers who said they would cease operations Jan. 1 because they had no access to testing, and I'm glad they now have access until at least March 31. 

Federal Rescheduling Restarted

On Thursday (12/18), Pres. Trump signed an executive order directing federal agencies to continue the administrative process of moving cannabis from Schedule I of the Controlled Substances Act to Schedule III. 

This is simultaneously a huge win for the industry (Schedule III = no more extra 280E federal taxes! Medical research can happen!) and a nothingburger. It restarts an administrative process that Pres. Biden had started and which had faltered because of opposition from the DEA and prohibitionist voices, who hope to still stop the rescheduling again. In other words - nothing is effective yet.

It does not release/resentence federal cannabis prisoners.

Schedule III is a heavily controlled process that is entirely different than the state-legal frameworks that have been been built - in other words, the medical and adult-use industries as they operate now will still be federally illegal even after Schedule III becomes effective.

It sets up a fight with Big Pharma.

Clemon Dabney (“Doctor Dabs”) did a great job laying out the issues in his Star Tribune piece this week (gift link!).

Some commentators are arguing that Pres. Trump should go farther and fully legalize cannabis in this moment of change. Jeremy Berke of Cultivated had a great OpEd in MSNBC laying out how full legalization would be of political advantage to Trump. 

More dominoes may fall! At a minimum, I hope the federal government will finally move the SAFER Banking legislation so banks and credit cards will serve state-legal cannabis businesses. 

And, rescheduling cannabis does not affect the ban on intoxicating hemp that will go into effect in November 2026, absent further changes at the federal level. However, powerhouse cannabis law firm Vicente expressed optimism in a 12/22 webinar about the tone shift about hemp within Trump’s executive order.

Clearly, a complex set of issues and more work is needed. Stay tuned!

Easy setup, easy money

Your time is better spent creating content, not managing ad campaigns. Google AdSense's automatic ad placement and optimization handles the heavy lifting for you, ensuring the highest-paying, most relevant ads appear on your site.

Earn with Google AdSense