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Texas and the U.S. House Ag Committee vs. hemp
North Star Cannabis Consulting Newsletter
Welcome to the post-lottery Minnesota cannabis market! The 249 lottery winners and the approx. 1,800 uncapped license applicants are off to the races to secure property and work through city licensing and OCM paperwork. I broke it all down here. I’ve had a wonderful response to the North Star Accelerator Program to help licensees launch quickly and compliantly. Want to join us before next Tuesday’s call? There’s just a couple of the (cheap) Founding Member slots left. I’m also looking for companies interested in being Preferred Providers to the Accelerator. One specific area of need this week: architects and companies that can do a build-out in MN. Do you have reccs? Email me at [email protected]. | ![]() Jen Randolph Reise (photo by Angela Knox) |
Minnesota's Tribal Cannabis Compacts: Bridging Two Markets
New on the blog!
What do the tribal compacts between Minnesota and the tribes allow? With the help of some experts, let’s set the story straight. READ HERE →
MINNESOTA CANNABIS NEWS
MN-OCM Issued New Guidance about LPHE Licenses
There is now new guidance for businesses that desire to stay in the hemp-derived THC market. Businesses will apply for a lower-potency hemp edible (LPHE) license during the October licensing period:
OCM is accepting registrations from new businesses as well as changes to existing registrations
If you have a current registration it must be in good standing with OCM
You must apply by August 31, 2025
Registered businesses selling hemp-derived cannabinoid products may continue sales until their LPHE or cannabis business license is issued
Anyone who does not apply must cease all sales of hemp-derived cannabinoid products on October 31, 2025 [note from Jen: unless they are licensed to sell these products under the adult-use statute, of course!]
Helpful guides are available on the OCM website here.
Muni Dispensaries
At least 13 municipalities in Minnesota have applied to open dispensaries, according to the Mankato Free Press. According to that story, Anoka will likely be the first muni to open, and it “is aiming to finish construction of its cannabis store in December and hopes to open in January.”
Olmsted County is Setting Up a Lottery of Its Own
Olmstead County opened their lottery for retail registrations (although it requires zoning certification), moving towards awarding the lucky winners of their limited spots.
Panel: NEXT STEPS FOR APPLICANTS
On June 6, on the eve of the lottery, I participated in the “Next Steps for Cannabis Applicants” panel put on by the Minnesota Craft Cannabis Guild with Interim OCM Director Eric Taubel and attorney Carol Moss. Watch the replay here. Lots of good discussion about working with cities, steps needed to licensing, and how OCM thinks about enforcement.
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OTHER CANNABIS NEWS
National Intoxicating Hemp Ban Threatened, Again
The U.S. House Agriculture Committee released a first draft of the 2026 proposed Farm Bill with language that would ban hemp-derived THC (“intoxicating hemp”) products. It is similar to the Miller amendment that failed in 2024. The US Hemp Roundtable said, “Rep. Andy Harris is at it again, reviving his crusade to dismantle the hemp industry by quietly inserting harmful language into a federal spending bill,” the organization wrote in a June 4 statement, calling on its members and supporters to contact their representatives to oppose the provisions.
“Buried on page 113 … is a provision that redefines hemp in a way that could ban the vast majority of safe, legal hemp-derived products sold nationwide—any product with any ‘quantifiable’ level of THC,” according to the USHR. Read more here.
Jen’s take: I’ve heard there is a full committee meeting today. Just like last year, this is a measure to watch, as it would be catastrophic for the hemp-derived THC industry – but I’m not sure of its chances of passage out of committee, out of the House, or all the way to becoming law.
Other National Policy
We’re farther from national rescheduling than ever. Cultivated News reported that “Federal Republicans are seizing the moment to push back on cannabis reform. The Republican-led House Appropriations Committee attached a report to a big 2026 spending bill that directs HHS to complete a report on the rescheduling recommendation — but not in a good way.”
Cultivated News reported that, “The Food and Drug Administration expanded its anti-cannabinoid stance in a warning letter to the owners of Dozo, an online retailer that sells products containing a variety of cannabinoids – beyond just THCa and Delta-9 THC.”
A defeat for a Massachusetts case in the First Circuit Court of Appeals; this case was brought by the cannabis industry in an attempt to overturn the Controlled Substances Act. The plaintiffs are expected to appeal to the Supreme Court.
At the same time, the hemp-derived THC market is booming!
DoorDash highlighted the growing interest in hemp-derived THC products, reporting that “From December 2024 to January 2025, DoorDash orders with hemp THC beverages grew 19% and orders with hemp THC edibles were up 15% — perhaps signaling that consumers are exploring new rituals during Dry January.” 2025 Doordash Delivery Trends Report
And Jack Daniel’s maker said during a recent earnings call that consumers choosing cannabis over alcohol is one of the reasons for its sluggish whiskey sales. Read more.
Around the U.S.
Texas: Gov. Abbott is “debating” whether to sign a bill that would destroy the hemp industry there: The bill would make it illegal to sell or possess hemp products with any amount of any cannabinoid other than CBD or CBG. The only state with similarly restrictive regulations is California, notes NPR. Gov. Abbott has until June 22 to veto, or the bill will become law.
Alabama: Governor Kay Ivey signed a bill imposing new regulations on consumable hemp products.
Alaska: Alaska’s 2023 intoxicating hemp ban was found to be constitutional in a recent federal court decision, meaning that these products can (continue to) be sold only in licensed dispensaries. More
North Carolina’s governor, Josh Stein, has created an Advisory Council on Cannabis and messaged that he would like to explore adult-use legalization and close access to intoxicating hemp for minors.
Medical Research
Cultivated Live reports:
More patients are choosing pot over pills 💊
Previous studies have shown that states with legal medical cannabis see declines in rates of opiate use. A new National Institutes of Health-funded study shows similar results with other medications, where the availability of medical cannabis caused a reduction in use of anti-anxiety, migraine and sleep medications in two-thirds of patients. There were also lesser reductions detected in the use of anti-depressants and alcohol.”
Evidence supports cannabis oil treatment for epileptic seizures 💧
A new study out of Toronto, found that medical cannabis oil was successful in reducing or eliminating seizures in patients with epilepsy. The study included 15 minors and four adults with drug-resistant epilepsy. While receiving cannabis oil treatment, the average patient experienced 245 days without a seizure. Five patients went longer than a year with no seizure.
Cannabis consumers have healthier lungs than cigarette smokers 🚬
Research published in the journal Current Problems in Radiology found that long term users of cannabis were far less likely to show as much lung damage than their cigarette-smoking counterparts. Emphysema and hyperinflation, which are commonly found in smokers, were rare among cannabis users.
Research shows cannabinol can slow breast cancer 🔬
French researchers found that when cannabinol, a compound found in the cannabis plant, is combined with breast cancer medication exemestane, there was a significant improvement in treating the disease. The study, published in the European Journal of Pharmacology, indicates that cannabis can be used as more than anti-nausea treatment during chemotherapy.
What Else I’m Reading:
What Canada’s Legal Cannabis Market Can Teach U.S. Producers and Policy Makers (Cannabis Business Times)
With Federal Legalization Stalled, Cannabis Companies Are Finding A New Green Rush In Europe (Forbes)
What is the Formula for a Great Cannabis Business? (Mitchell Osak, June 12, 2025, Cannabis Management Review)
UPCOMING EVENTS
![]() LinkedIn Live: Ask Me AnythingJuly 13 - Chat live with Jen to learn about MN’s unique cannabis industry. Intended for media and national industry interested in MN. | ![]() CannaJoyMN Store EventsJune events: Game Nights, Home Grow Get Togethers, Autoflowers Outdoors |
![]() Rise & GrindJune 17 (and every Tuesday) - Rise & Grind @ MAC Social Club, Minneapolis | ![]() Earl Giles Industry NightJune 18 (and every Wednesday) - Canna Club Happy Hour @ Earl Giles, Minneapolis |
![]() CannaCon St. PaulAugust 12-13 - Midwest’s premier cannabis B2B event @ RiverCentre, St. Paul | ![]() Legacy Cup 2025September 27 - Tickets on Sale Now! @ Surly Festival Field, Minneapolis |
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