By: David Standa, Esq.
Possession and consumption of recreational cannabis officially became legal in Minnesota on Aug. 1, but Minnesota’s cannabis-establishment application window is several months away. That means, for now, the only way to legally purchase recreational marijuana is to visit a dispensary on Minnesota’s tribal lands as we wrote about here . However, due to a law that was passed last year removing hemp from the state’s-controlled substances list, there is a flourishing hemp-derived, low-potency THC market. In fact, MJBizDaily recently reported that the market has topped $1 million in monthly sales fueled by easy retail access at grocery stores, convenience stores, restaurants, and breweries.
The recreational cannabis bill touches on the hemp-derived market and requires companies selling those products to register with the Minnesota Department of Health (MDH). The MDH recently opened the registration portal , and companies must register by October 1, 2023. Companies not currently selling hemp-derived products but intending to do so in the future and businesses that open after Oct. 1 must register before they sell any hemp-derived cannabinoid product in or into Minnesota. It is important to note that the new law requires registration by both companies selling directly to consumers, like breweries operating within the state, and out-of-state companies that sell products online or to businesses in Minnesota. In other words, the registration requirement applies to more than just Minnesota businesses, and if a company is selling any kind of hemp-derived products via the internet (setting aside potential issues over the DEA’s recent interpretations of synthetically derived cannabinoid products) it is possible it will have customers in Minnesota, which would require it to register with the MDH.
As a refresher, there are dosing restrictions and packaging requirements for hemp-derived low-potency THC products in Minnesota. As detailed by the MDH:
If the lower-potency hemp product is intended to be consumed as a beverage, the container may not contain more than 2 servings and no more than 5 mg of delta-9 THC per serving or, and 10 mg total THC.
If the product is an edible, the package cannot contain more than 5 mg delta-8 or delta-9 THC per serving and 50 mg total THC.
Each serving must be scored, wrapped, or another indicator that clearly distinguishes each serving.
Edibles cannot contain synthetic cannabinoids or artificially derived cannabinoids (other than delta-8 or delta-9 THC).
Edibles must be in a child-resistant, tamper-evident, and opaque package or container.
Synthetic cannabinoids or other artificially derived cannabinoids (other than delta-8 or delta-9 THC) are prohibited. THC-P, THC-O, and HHC are prohibited.
The product cannot contain any ingredient not approved by the U.S. Food and Drug Administration (FDA) for use in food.
The product cannot be a commercially available candy or snack food item where CBD or hemp THC has been applied to or added.
The product must not be packaged in a container that includes a statement, artwork, or design that could reasonably mislead any person to believe that the package contains anything other than an edible cannabinoid product.
The product cannot be contaminated or have more than trace amounts of mold, residual solvents or other catalysts from processing, pesticides, fertilizers, or heavy metals.
Packaging must include, at a minimum:
The name, location, contact phone number, and website of the product manufacturer;
The batch number;
The name and address of the independent, accredited laboratory used by the manufacturer to test the product and;
An accurate statement of the amount or percentage of cannabinoids found in each unit of product meant to be consumed.
For edibles or beverages, the label must include:
The name, location, contact phone number, and website of the product manufacturer;
The batch number;
The name and address of the independent, accredited laboratory used by the manufacturer to test the product and;
An accurate statement of the amount or percentage of cannabinoids found in each unit of product meant to be consumed.
There are also restrictions on certain kinds of products and testing requirements. For example, products containing nonintoxicating cannabinoids intended to be smoked or vaped are not allowed in Minnesota. Testing of products must be consistent with generally accepted industry standards for herbal and botanical substances. The products must be tested in a batch and the batch number must be included on the package label. For more information, both the MDH and the Minnesota Department of Agriculture have posted guidance on their websites available here and here .
Minnesota’s hemp-derived, low-potency THC market is unique in the cannabis space, and several companies are having success with beverage and edible sales. For that success to continue, it is important to stay up to date on the new regulations and to ensure compliance with all registration and regulatory requirements.
David Standa ([email protected]
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