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North Star Cannabis Consulting Newsletter


| Happy October! That’s Crop-tober to growers, who are beginning to harvest sun-grown flower (this great photo is from reader Brittany Marnell!) It’s been another eventful couple weeks in MN: the adult-use market is opening at last, but the hemp-derived THC industry must go through licensing & statutory changes this fall. Lots of guidance and pointers on that below. And, this is the last call to join the North Star Accelerator Program! If you’re working to build a compliant and profitable adult-use business in MN, join us. I look forward to introducing our new members next week! |  Jen Randolph Reise (photo by Angela Knox) | 
MN CANNABIS UPDATES
Hemp-Derived THC: Licensing, Testing and Packaging Changes are Coming in Really Hot
 Licensing opened yesterday (Oct. 1) for the hemp-derived THC industry, and I was part of a contentious meeting hosted by OCM with lots of folks from the hemp-derived THC industry yesterday. 
Lots of change is coming to this industry this fall, for better or worse! See the Hemp-Derived THC Corner, below, for much more. 
Adult-Use Businesses are Getting Licensed and Opening
Since Legacy Cannabis in Duluth opened two weeks ago, I’ve seen almost daily alerts of new microbusinesses getting their final license and a few more opening their doors! (Note: If you have a Grand Opening / Re-Opening to promote, feel free to send it to me at hello@northstarcannabisconsulting for this newsletter)
Supply of licensed flower remains tight, making consumer prices sky-high. I paid $50 for an 1/8 oz at Legacy Cup, plus taxes. We’ll see supply ease in the next couple of months as more cultivators come online and tribal supply continues to connect with licensed retail outlets.
OCM continues to make progress on licenses:

Truncated; full data is at https://mn.gov/ocm/businesses/licensing/application-data.jsp
- There are now 1,142 microbusinesses that have been preliminarily approved, with 40 fully licensed. 
- Importantly, 2 testing facility licenses have been issued, with more close behind. I still expect there to be a testing crunch for a while, but progress is being made. 
- The first Cultivator and the first Mezzo have both received licenses. 
- And, two Med Combos (Green Goods and Rise) have received licenses, with 3 more Med Combos in Preliminarily Approved status. 
Other Insights
 I had a good meeting with OCM last week, where I teed up some detailed questions for hemp-derived THC retailers who have applied to become full dispensaries. I have a number of folks in that position in the Accelerator and I hoped to get some good clarifications for them and the industry. 
I can share the below insights; others, OCM is still reviewing with Legal and I’ll share once available. 
- Metrc & Hemp-Derived THC Products: Good news! OCM was crystal-clear that low-potency hemp edibles will not have to be tracked in Metrc - not by LPHE licensees, and also not by adult-use retailers. 
- Indoor / Outdoor Growing: Licensed cultivators can switch from one to the other with the growing seasons, but have to 100% switch. In other words, a licensed cultivator could grow up to their canopy limit outdoors in the summertime and, after harvest, start an indoor grow up to their canopy limit. Each location would need to have its own approved Final Plan of Record. OCM listened to our request for combined indoor/outdoor approaches (say, growing 50% of your canopy limit indoor and 50% outdoor), but believes that would require a legislative solution, which they are open to exploring further. 
- THCa Flower: I have received questions about the status of THCa flower POST-licensing, especially since THCa flower is easily obtainable from Wisconsin, where it is considered hemp. In this meeting, we briefly discussed the meaning of "hemp flower" that can be sold by licensed adult-use retailers, and OCM's understanding of that is that it means flower with less than 0.3% total THC, i.e. CBD flower, NOT THCa flower as some had argued. 
Adult-Use Licensee Resources
North Star Accelerator Program
We are accepting applications for the next Q4 cohort of accelerator members!
If you are a building a licensed adult-use business in Minnesota (micro, mezzo, or retail), check out the accelerator for regulatory guidance, community support, and recommendations and referrals that will save you tons of time and money. We’re a group of small entrepreneurs working together to support one another in building compliant and successful businesses.
You do NOT want to snooze on this - the cohort closes TOMORROW, October 3!
From DEED:
Startup and Small Business Resource Fair
Date: Thursday, October 9, 11:00 a.m. to 1:00 p.m.
Location: Great Northern Building (180 E. 5th St., Saint Paul, MN 55101)
OSBI provides innovators with resources and consulting services to scale startups in Minnesota. This casual, open-house-style event allows attendees to have face-to-face conversations with the State’s top small business experts.
Also from DEED: 
Minnesota Cannabis College
Workforce training is coming from the Minnesota Cannabis College, who also just received grant money from MN! Sign up here to get updates
(Have resources to share? Email to me at [email protected])
Get your dispensary running smoothly with our 9 Essential SOP Templates—from security and cash management to inventory, HR, and daily operations.
Hemp-Derived THC Corner
The license application window for lower-potency hemp edible retailers, manufacturers, and wholesalers will be open Oct. 1 - Oct. 31. In other words: if you want to continue to manufacture or sell hemp-derived THC products, you MUST apply for licensure in October (exception: folks who are in process to switch lanes and be a cannabis retailer, and that’s how you will sell hemp-derived THC products). 
And that’s only the tip of the iceberg; changes to labeling, testing, and more will also be painful for manufacturers. The Star Tribune wrote about this today, interviewing some industry leaders and folks at yesterday’s meeting. 
For context, these changes are driven by the difference between Minnesota’s temporary statute for hemp-derived THC (Minn. Stat. 151), which the industry has been operating under since 2023, and the full cannabis statute, Minn. Stat. 342. Minnesota law always contemplated that the hemp-derived THC industry would go through their own licensing process, after which they would be subject to 342. 
But there are a multitude of differences between the two statutes and with what has become normal business practice for the industry, resulting in what feels like a firestorm of changes that become effective this fall. Those include:
- Hemp-derived products may no longer be shipped direct to consumer (DTC) from 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). 
My advice for hemp-derived THC folks:
- Start by figuring out whether you need to apply for a hemp-derived THC Retailer, Manufacturer, and/or Wholesaler license (technically, LPHE-R, LPHE-M, and LPHE-W, respectively). You can hold two or three together, unlike in the adult-use industry. You do NOT need to make this application if you will be dealing with hemp THC products under a pending adult-use license. 
- The deadline for submitting licensing paperwork for all is October 31 at noon. 
- Sign up for OCM’s free webinar on Tuesday, Oct. 7. [Denise add LINK] 
- Review OCM guidance! We’ve collected OCM’s various resources, as well as the ones North Star Consulting is creating, at this Hemp-derived THC Resource Page. Check back between newsletters for more! 
Finally, I wanted to share that, if you listened closely through the required changes and guidance, OCM gave us some clever ways to comply:
- Knowing that testing in Minnesota in January will be tight, manufacturers can test products under Minn. Stat. 151 (i.e., wherever they are testing now) until the end of the year, and label those products with 342-compliant labeling and the words “Manufactured under Minnesota Statutes 151.72.” 
- Similarly, OCM does not want uncompliant product to have to be destroyed. Instead, you may add a “marketing layer” that is 342-compliant on top of the old label. Futsy? Yes. I envision a lot of stickering in our collective futures.  
- Also, while manufacturers have to change to 342 immediately upon licensing, OCM noted that they have some control over the timing of licensing because it is tied to when they pay the license fee. IMHO, that’s much more helpful than the waiting for an email that we are doing on the adult-use side. 
- And, the transition guidance allows retailers to sell products that comply with either 151 or 342 through the end of the year. (Highlight on the slide is mine) 

MN CANNABIS NEWS
Legacy Cup was a gorgeous day, with a packed and chill crowd at Surly Field and a line to get in all day! Congratulations to the winners (listed here).


Jen with Lynn Wachtler of Bloom magazine and Ceres Medical
Nice profile of micro cultivator Roots & Resin Farms, from MPR
OTHER CANNABIS NEWS
Around the U.S.
Michigan: The MI House of Representatives has approved a 24% wholesale tax on recreational marijuana products. If approved by the Senate and signed into the law, the tax would take effect in January 2026.
Illinois: Gov. Pritzer has threatened to ban hemp-derived THC products in Illinois, Axios reports, after the state legislature failed to pass any regulatory framework.
Missouri regulators published an annual report on the state's marijuana programs.
New York now has over 1,900 adult-use cannabis licenses, 57% of which are held by social equity applicants. 
Oklahoma narcotics agents have seized 577 pounds of processed cannabis and 18,644 plants from a licensed operator as part of an investigation into illegal cannabis cultivation and diversion of regulated products. Officials said they served a warrant at the licensee, New Good Harvest 999 LLC, and discovered the illegal grow operation.
Federal
I was going to write a whole bit about how the Hemp-Derived THC industry is being threatened nationally by Congressional Action. That appears to be stalled by the government shutdown, for now. #silverlinings?
From Cultivated: Pres. Trump posted an ad for The Commonwealth Project, which works to "integrate medical cannabis into mainstream health care for seniors.” The ad touts the 2018 Farm Bill, which he signed into law, as the first step in getting widespread access to CBD and other cannabis compounds. The ad calls for more research into the benefits of medical cannabis. Interesting!
From Ganjapreneur: Recent drug trials testing a full-spectrum cannabis extract found the experimental drug was an effective treatment for chronic lower back pain. Participants taking the experimental drug reported pain relief and improved sleep quality, and the study did not identify serious side effects or signs of addiction.
Fifty-three percent of Americans say that cannabis is “not at all dangerous” or “not very dangerous,” according to a recent poll by the right-leaning Rasmussen. The survey included Republicans and Democrats but only had 1300 participants.
ISO: Industry Classifieds
Have a property or services to offer to my readers? Or, looking for one? You can do so either by providing your info openly (a classic “I’m seeking xyz, contact me at __), or confidentially (having interested parties contact me to be connected to you). Contact me for more info and pricing: [email protected]
Minnesota Women’s Cannabis Collective (MNWCC) is creating space for women to lead, connect, and thrive in cannabis.
This October, don’t miss our big lineup:
- First Annual Meeting: Tue, Oct 21 Eastside Food Co-op 
- Engaging Virtual Lunch & Learn: Wed, Oct 22 Online Event 
- Festive Halloween Happy Hour: Thu, Oct 30 Location is TBD - Check out the full calendar at mnwcc.com and join us as we continue blazing our way through grass ceilings, together we grow, together we rise! 
UPCOMING EVENTS
|  CannaJoyMN Store EventsOctober events: Home Grow Get Togethers, Free Growing Presentation, Scrap & Yap and Game Nights |  Rise & GrindOctober 7th (and every Tuesday) - Rise & Grind @ MAC Social Club, Minneapolis | 
|  Autumn Brew ReviewOctober 11 - Celebrate everything MN including unlimited Craft Brew samples including THC beverages @ Boom Island Park, Minneapolis |  MJBizConDecember 2-5 - Jen is speaking on December 4 about Minnesota, alongside other MN leaders. Use the link below to get 15% off your tickets @ Las Vegas Convention Center | 
MOCHI MOMENT

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