Your guide to the 2026 cannabis bill

MN CANNABIS UPDATES

Last week, the MN-OCM ordered Legends Technical Services to pause testing  while they came into compliance with adult-use testing standards - evidently they have been testing under a variance for 9 months (as they were the only testing lab for the medical cannabis industry for many years). Issues included both testing standard specifics and security standards.

Jen’s take: It’s a major disruption to an industry that was just starting to emerge from a testing bottleneck. OCM assured me that they gave Legends a one-month final warning that they needed to come into compliance or this would happen. One lesson for all of us: OCM is serious about such warnings. Even if you test 70% of the market capacity. I’m also hearing that Legends now has their paperwork in and is awaiting OCM response. Hopefully this can get back on track shortly.

The Minnesota Legislature passed a 2026 Omnibus Cannabis Bill in the final hours of the session! Read my comprehensive blog about what’s in it, including:

-The legislature approved a complicated compromise that integrates the medical and adult use supply chains, hopefully while improving – not just protecting – patient access. It also includes a ramp to allow micro businesses to apply to grow into mezzo businesses, which is only available if you participate in the medical market as well as the adult use market, and also includes a little spiff for social equity.

-More time to open: People working towards licensure are getting worried about the rule that they must open within 18 months of becoming a qualified applicant. Accordingly, all licensees can get a 6-month initial extension from OCM “upon request”, and possibly a second 6-month extension if they have made good faith attempts to move forward.

-A bridge from hemp to adult-use: since we do not know whether the federal ban in November will happen or not, and we do not know if federal rescheduling will happen or not, the Minnesota Legislature has approved a sort of on-ramp for the hemp THC industry to move even further towards, and into, the adult use cannabis industry: allowing shared ownership for the first time, shared premises (and thus manufacturing equipment), and “ratio” products with hemp CBN in dispensaries.

READ MORE HERE →

I’m hearing OCM has a serious backlog of FPORs to review (the step before licensure). Critically, outdoor cultivation must start ASAP or misses our short season completely.

WCCO did a nice segment on what to expect when you go to a cannabis dispensary in Minnesota! Congrats to Loon Leaf in Blaine for being the setting for this piece.

Report from the NECann Conference:

Congratulations to the 60+ Minnesotans who spoke at the NECann Conference at the Minneapolis Convention Center 2 weeks ago! The Womens' Lounge, the afterparties, and the networking were all top notch.

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The METRC “seed to sale” tracking system is difficult to use, and it’s important to get it right.

Aly Piscatelli of Budding Operations knows more than anyone else I know about guiding operators to success in METRC, and we’re doing a low-cost webinar in a couple of weeks for Minnesota operators specifically! Click through to save your spot now.

Guest Blog: Balancing Light Quality and Worker Safety in Cannabis Cultivation

By Cathy Hovde of Resilient EHS

When designing a commercial indoor cultivation facility, lighting is calculated in terms of photosynthetically active radiation (PAR), micromoles per square meter, and energy overhead. Choosing a specific lighting layout, whether it is double-ended High-Pressure Sodium (HPS) fixtures, ceramic metal halides (CMH), or targeted spectrum LEDs, is driven by crop science. Certain light wavelengths, specifically ultraviolet (UV-A and UV-B) and intense infrared (IR), stimulate the cannabis plant to protect itself by producing extra trichomes, terpenes, and cannabinoids like THC.

However, high-intensity artificial light spectrums introduce physical hazards to the work environment. For facility owners and cultivation directors, managing these hazards requires evaluating structural variables and implementing matched controls to maintain regulatory compliance without disrupting canopy management or biosecurity.

READ MORE HERE →

YOU ASKED: How can I get a license in Minnesota? and When will the application window reopen?

I’ve had several of these inquiries recently. Here’s what I say:

OCM currently has the application window open only for testing labs and events. I do not anticipate a window for the capped licenses (i.e., the ones that went to a lottery) any sooner than fall of 2027. That’s in part because the recent legislation directs OCM to review the number of capped licenses July 1, 2027 (as the first step towards considering whether more should be granted). I also don’t anticipate another window for microlicenses, as more than 1,800 started this race last March. There are a lot of baby licenses out there now, and the Legislature and OCM wants to give them a chance.

There is a secondary market for licenses, however. While they cannot be transferred until a license is issued, clever lawyers have figured out a way to do a 2-step deal where the parties work together to get the license issued and then transferred. So if you are looking to buy, or sell, there is a way.

Confidential Industry Classifieds

• Do you have a micro license you don't plan to use? I can help you get some money for it from hemp operators looking to transition into this market.

• Is anyone setting up harvest / trim crews for hire?

• Do you have something to advertise here?

Contact Jen @ [email protected] 

OTHER CANNABIS NEWS

Federal

After state-legal medical cannabis was rescheduled to Schedule III of the Controlled Substances Act last month, medical companies are wrestling with the impact of rescheduling and whether they should register with the DEA. Jen's take: I learned a lot from this webinar from national law firm Vicente last week. My main takeaway? The big winner of rescheduling in this way was the state-legal medical companies in medical-only states like FL and TX. In other words, Trulieve, whose CEO Kim Rivers is a confidante of Pres. Trump's.

Democratic lawmakers asked Pres. Trump to free federal prisoners convicted of non-violent cannabis crimes. As reported by Ganjapreneur, “The letter notes that the administration’s decision to move cannabis from Schedule I under the Controlled Substances Act to Schedule III “does not provide relief for anyone currently in federal prison from a marijuana conviction.” The letter notes that data from the U.S. Sentencing Commission estimates that there are about 3,000 people federally incarcerated for cannabis trafficking offenses, and another hundreds or thousands serving mandatory minimum sentences of five years or longer."

After media reports noticed updates to TSA's website, TSA said that its rules on medical cannabis have “not changed” based on the rescheduling announcement. The PreRoll said, "The agency emphasized that its screening procedures have long been focused on aviation security rather than drug enforcement, and that officers do not actively search for illegal substances. However, if cannabis is discovered during screening, it may still be referred to law enforcement, with final decisions left to the on-site officer and applicable federal, state, or local law." Jen's take: In other words, they are not looking for weed, and have not been looking for weed, but are not quite willing to say that.

The Guardian (UK) reported on the looming U.S. federal hemp ban, which would criminalize even the full-spectrum CBD products allowed under Trump's Medicare pilot.

The IRS is suing MSO TerrAscend USA to claw back over $8 million of tax refunds that had been claimed by TerrAscend, relating to 280E taxes for previous tax years. As MJBizDaily reported, "While many operators are hopeful that federal marijuana rescheduling will eventually include retroactive 280E relief, clearing the books, the TerrAscend situation suggests the government will maintain what’s always been its position: Those taxes are owed." And these are huge amounts of money! Back taxes that are potentially owed by publicly traded MSOs reached $1.6 billion by early 2026. For more, read Marc Hauser's analysis on this.

Here's a great source of data on the cannabis and hemp industries on a national basis, including for your investor pitch deck: this report from First Citizens Bank (February 2026). I appreciated its data on how cannabis founders fund their companies in a market in which raising capital is exceptionally difficult.

A new survey found that 67% of Gen Z have consumed cannabis, and 28% report daily use. The primary drawback reported? "17% said they had spent money they couldn’t afford on cannabis."

And another poll of U.S. adults “shows that they think marijuana is less cool than math or country music—but is cooler than guns, sports betting and cryptocurrency."

Around the States

Illinois: In a case with implications for cannabis DUI testing and convictions across the country, a Chicago man is free after spending a year in jail. His conviction rested on cannabis DUI testing that was found to be "scientifically erroneous evidence" - faulty results from a lab that showed he had twice the legal limit of THC in his blood when he hit and killed a motorcyclist. "At issue are flawed methodologies that measured THC levels incorrectly, potentially flagging drivers as above the legal limits. Thousands of court cases across metro Chicago could be impacted," the article said.

Minnesota: MN-based MSO Vireo Health is on a buying spree, including a number of non-plant-touching businesses

New York: Operators are attempting to get monetary assistance paying for METRC.

Virginia: Governor Abigail Spanberger vetoed legislation that would have launched regulated recreational cannabis sales beginning in 2027.

Cannabis in Medical News

A new study published in Preventative Medicine found that states that have legalized cannabis see significantly fewer opioid overdoses, lending more scientific credence to the idea that cannabis is safer than opioids, and that people are using it to treat pain. Cultivated Daily notes, " Effects were strongest among adults 18–34 and among people without past opioid prescriptions — suggesting substitution for illicit, not just prescribed, opioids." Full study is here.

Another study looked at Colorado adults 60+ buying cannabis edibles for the first time, and found that "most are seeking relief from pain, poor sleep, or mental health concerns — and making product decisions based on word of mouth rather than physician guidance," reports Cultivated Daily.

And a study out of Israel found that CBG shows promise in treating rheumatoid arthritis, due to its anti-inflammatory effects.

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