As we previously wrote about here back in January, the Minnesota Office of Cannabis Management (“OCM”) cobbled together a plan for an interagency team-up with the Department of Health that aimed to stop the sale of illegal hemp flower throughout the North Star State. The plan aimed to prevent retailers from selling hemp flower that contained more than the legally permissible hemp limit by using the OCM’s enforcement power and the Department of Health’s inspectors. Now, “[t]hat interagency agreement is in place,” said Office of Cannabis Management Interim Director Charlene Briner, after she signed it last week. She went on to explain that the OCM is contacting hemp retailers regarding upcoming inspections and that they would receive a memo regarding the new regulatory system. “The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label of hemp flower,” the memo stated. “Under an agreement between The Minnesota Department of Health (MDH) and OCM, inspectors from MDH will begin to examine any flower products being sold during their regular inspections to determine whether they are indeed hemp flower or cannabis flower.”
The new enforcement initiative is significant and should not be taken lightly by hemp retailers. As the memo explained, “[u]nder state law, OCM may assess fines in excess of $1 million for violations” and the OCM has the ability to “embargo any product it has probable cause to believe” is violating the law. Thus, until licensed dispensaries come online sometime next year (or if you are very, very optimistic sometime later this year), hemp-derived products (edibles, beverages and flowers) must be made from plants that have a THC content of 0.3 percent or less.
David Standa (david.standa@gmlaw.com) continues to follow the Minnesota cannabis industry closely. Feel free to contact him directly with any questions about the low-potency hemp market or the upcoming recreational application window.
