Minnesota’s modest adult-use cannabis industry is not yet a year old, but lawmakers are already making tweaks with an eye toward “opening up a little more opportunity” for license-holders – including marijuana social equity as well as hemp THC businesses.
Lawmakers in the state Legislature also made some changes for operators with medical cannabis businesses in the annual omnibus cannabis bill, the state House of Representatives said in a press release.
The bill “tweak(s) what the (cannabis) industry wants tweaked,” according to lawmakers.
However, it significantly reduces the cannabis cultivation canopy allowed for vertically integrated so-called “macrobusiness” permit holders.
After approval in the state House, the omnibus bill squeaked by the state Senate on a 34-33 vote on Sunday. It awaits Gov. Tim Walz’s signature to become law.
What are the new changes to Minnesota cannabis laws?
Under the bill, a “medical combination” business license that imposed upon operators a ratio of medical-to-adult-use production is eliminated.
There are only two medical combination licenses active, according to state Office of Cannabis Management data.
In its place is a “macrobusiness” license that will become available Jan. 1, 2027.
Macrobusiness holders will be limited to 38,000 square feet of canopy, down from the maximum of 90,000 square feet available under current law for a holder of a combination permit.
The bill also:
- Allows hemp business permit holders who may become federally illegal in November to pursue a cannabis business license
- Legalizes a “ratio hemp-infused cannabis product” category, capped at no more than 10 milligrams of THC per serving or 200 milligrams per package for edibles and 20 milligrams of THC per beverage container, plus 100 milligrams of a secondary cannabinoid like CBD or CBN
- Opens marijuana social equity to outside investors, with individuals allowed to have up to four marijuana social equity permits each, with up to 33% ownership
What’s the current status of the Minnesota cannabis industry?
Non-tribal adult-use cannabis sales began last September in Minnesota, where state law also allows operators of liquor stores to enter the THC space via low-dose hemp-derived THC beverages.
Through the end of April, sales stood at $80 million, according to state data.
Though monthly adult-use sales have nearly doubled, from $8 million in November to nearly $15 million in April, the state is still pacing well below an MJBiz Factbook projection that estimated first-year sales could reach $430 million.
Combined medical and adult-use sales in April stood at $25 million, according to the state OCM.
Complications appeared early, with limited licensed cannabis cultivation canopy reducing the amount and variety of product available and few licensed transporters to supply the existing medical-only retailers allowed to convert to adult-use.
So far in Minnesota, Native American tribes have proven more ambitious and nimble, with Native retailers the first to offer sales and a Native-owned cannabis consumption lounge the first to open in the state.
