Recent Cannabis Legislation in Minnesota

Last verified: March 2026

2025: The Year Rules Took Shape

While HF 100 passed in 2023, much of 2025 was spent translating the law into operational reality. The year brought the first administrative rules, the first license lotteries, and a significant tax increase — all while the Office of Cannabis Management prepared for the September launch of retail sales.

Chapter 31 Amendments (2025)

The legislature passed Chapter 31, amending HF 100 in several significant ways:

• Tax increase: Cannabis gross receipts tax increased from 10% to 15% (effective May 2025)
• Revenue reallocation: Changes to how cannabis tax revenue is distributed (Local Government Cannabis Aid was later repealed in January 2026)
• OCM enforcement tools: Additional authority for the Office of Cannabis Management to address unlicensed operations and compliance violations
• Licensing refinements: Adjustments to license categories and application processes

Chapter 9810 Rules Adopted (April 14, 2025)

The OCM formally adopted Chapter 9810 administrative rules on April 14, 2025 — the detailed regulatory framework governing every aspect of licensed cannabis operations in Minnesota. The rules cover cultivation standards, manufacturing processes, testing requirements, packaging and labeling, retail operations, transportation, security, record-keeping, and compliance procedures.

These rules were essential to launching retail sales. Without them, the OCM could not issue licenses or allow dispensaries to open.

License Lotteries Launched

The first social equity license lottery took place on June 5, 2025, awarding 249 licenses to qualified applicants. The lottery system was designed to prevent the pay-to-play dynamics and first-come-first-served rushes that plagued cannabis licensing in other states, instead prioritizing applicants from communities disproportionately impacted by cannabis prohibition.

2026 Legislative Session

The 2026 legislative session began February 17, 2026. Several significant cannabis bills have been introduced as the state refines its regulatory framework based on the first months of retail operations.

HF 4203 — Omnibus Cannabis Bill

The most significant cannabis legislation of the 2026 session, HF 4203 is a bipartisan omnibus bill sponsored by Rep. Jessica Hanson and Rep. Nolan West. Key proposals include:

Macrobusiness License

The most contentious provision would create a new macrobusiness license to replace the existing medical cannabis combination license structure. This would allow larger vertically-integrated operations — a departure from the social equity-focused small-business model that HF 100 was designed to promote. Critics argue the macrobusiness license would give an unfair advantage to the two original medical cannabis operators (who already have cultivation, manufacturing, and retail infrastructure) while undermining the lottery-based licensing system designed to level the playing field.

QR Code Labeling

Would require cannabis products to include QR codes on packaging that link to detailed lab testing results, cultivation information, and product details. This would give consumers easy access to transparency information beyond what fits on a physical label.

OCM Enforcement Tools

Additional enforcement authority for the Office of Cannabis Management, building on the tools added in the 2025 Chapter 31 amendments. The bill addresses gaps identified during the first months of retail operations.

Local Government Registration Changes

Modifications to the process by which local governments interact with the licensing system, aimed at streamlining coordination between the OCM and municipal governments.

HF 4229 — Cannabis Youth Grant Program

HF 4229 would establish a Cannabis Youth Grant Program funded by cannabis tax revenue. The program would support youth education, prevention, and intervention programs related to substance use, with a focus on communities disproportionately impacted by cannabis prohibition.

Federal Hemp THC Ban

The most significant threat to Minnesota's cannabis market is not coming from St. Paul — it's coming from Washington.

What the Federal Ban Does

The federal legislation, passed in November 2025 and effective November 12, 2026, bans hemp-derived products containing more than 0.4 mg of total THC per container. For context, Minnesota's current THC beverages contain up to 5 mg per serving (10 mg per package) — more than 10 times the new federal limit.

The ban would effectively eliminate:

• THC seltzers and sodas sold at liquor stores, breweries, and taprooms statewide
• THC-infused edibles available at convenience stores and other retailers
• A market estimated at $200 million+ annually
• Products available at 5,000+ retail locations across Minnesota

Industry Response

The Craft Brewers Guild and other industry groups are actively fighting the federal ban. Minnesota's craft brewing scene was an early adopter of THC seltzers and beverages, and many breweries now derive significant revenue from THC products. The Guild argues that the ban would devastate small businesses that invested in THC product lines based on clear state law.

State Response

Minnesota legislators are exploring legislative responses to the federal ban. Options under consideration include:

• Moving THC beverages entirely under the OCM-licensed cannabis retail framework (requiring a cannabis license to sell)
• Establishing state-level protections that may conflict with federal law
• Working with other states on coordinated federal advocacy

The challenge is that even if Minnesota keeps THC beverages legal under state law, federal enforcement could target manufacturers, distributors, and retailers — creating legal uncertainty that may chill the market regardless of state action.

Official Sources

• Office of Cannabis Management
• Minnesota Bill Tracker — Revisor of Statutes
• Minnesota Statutes Chapter 342
• Department of Revenue — Cannabis Tax