Cannabis business license and endorsement provisions modification

A bill for an act

relating to cannabis; modifying cannabis business license and endorsement

provisions; providing civil penalties; amending Minnesota Statutes 2024, sections

342.07, subdivision 3; 342.09, subdivision 6; 342.15, subdivisions 2, 5; 342.19,

subdivision 5; 342.25, subdivisions 1, 2, 3, 4, 5, 6, 7; 342.26, subdivisions 1, 2, 3,

4, 5; 342.27, subdivision 1, by adding a subdivision; 342.28, subdivisions 6, 7, 9,

11; 342.29, subdivisions 5, 6, 8, 8a, 10; 342.30, subdivision 3; 342.31, subdivisions

3, 5; 342.32, subdivision 3; 342.45, subdivision 3; 342.515, subdivisions 2, 4, 6;

Minnesota Statutes 2025 Supplement, sections 342.12; 342.28, subdivision 8;

342.29, subdivision 7; 342.30, subdivision 1; 342.32, subdivision 1; 342.44,

subdivision 1; 342.515, subdivisions 1, 7; 342.62, subdivision 2; proposing coding

for new law in Minnesota Statutes, chapter 342.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 342.07, subdivision 3, is amended to read:

Subd. 3.

Edible cannabinoid product handler endorsement.

(a)
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Any person
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A license

holder
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seeking to manufacture, process, sell, handle, or store an edible cannabis product or

lower-potency hemp edible, other than an edible cannabis product or lower-potency hemp

edible that has been placed in its final packaging, must
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first
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apply for and
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obtain an edible

cannabinoid product handler endorsement.

(b) In consultation with the commissioner of agriculture, the office shall establish an

edible cannabinoid product handler endorsement.

(c) The office must regulate edible cannabinoid product handlers in a manner consistent

with Department of Agriculture regulation of food handlers under chapters 28A, 31, and

34A and associated rules, with the following exceptions:

(1) the office must issue an edible cannabinoid product handler endorsement, rather than

a license;

(2) eligibility for an edible cannabinoid product handler endorsement is limited to persons

who possess a valid license issued by the office;

(3) the office may not charge a fee for issuing or renewing the endorsement;

(4) the office must align the term and renewal period for edible cannabinoid product

handler endorsements with the term and renewal period of the license issued by the office;

and

(5) an edible cannabis product or
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a
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lower-potency hemp edible must not be considered

adulterated solely because the product or edible contains tetrahydrocannabinol, cannabis

concentrate, hemp concentrate, artificially derived cannabinoids, or any other material

extracted or derived from a cannabis plant, cannabis flower, hemp plant, or hemp plant

parts.

(d)
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The
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An
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edible cannabinoid product handler endorsement
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must prohibit
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prohibits
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the

manufacture of edible cannabis products at the same premises where food is manufactured,

except for the limited production of edible products produced solely for product development,

sampling, or testing.
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This
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The
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limitation
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in this paragraph
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does not apply to the manufacture

of lower-potency hemp edibles.

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(e) An edible cannabinoid product handler endorsement is available to the following

license holders:

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(1) cannabis microbusinesses;

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(2) cannabis mezzobusinesses;

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(3) cannabis manufacturers;

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(4) lower-potency hemp edible manufacturers; and

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(5) medical cannabis combination businesses.

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(f) A lower-potency hemp edible manufacturer with an edible cannabinoid product

handler endorsement may only manufacture lower-potency hemp edibles and must not add

any cannabis flower, cannabis concentrate, or cannabinoid derived from cannabis flower

or cannabis concentrate to a product consistent with the requirements in section 342.45.

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Sec. 2.

Minnesota Statutes 2024, section 342.09, subdivision 6, is amended to read:

Subd. 6.

Violations; penalties.

(a) In addition to penalties listed in this subdivision, a

person who violates the provisions of this chapter is subject to any applicable criminal

penalty.

(b) The office may assess the following civil penalties on a person who sells
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or intends

to sell
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cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived

consumer products without a license issued under this chapter that authorizes the sale:

(1) if the person sells
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or intends to sell
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up to two ounces of cannabis flower, up to $3,000

or three times the retail market value of the cannabis flower, whichever is greater;

(2) if the person sells
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or intends to sell
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more than two ounces but not more than eight

ounces of cannabis flower, up to $10,000 or three times the retail market value of the cannabis

flower, whichever is greater;

(3) if the person sells
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or intends to sell
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more than eight ounces but not more than one

pound of cannabis flower, up to $25,000 or three times the retail market value of the cannabis

flower, whichever is greater;

(4) if the person sells
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or intends to sell
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more than one pound but not more than five

pounds of cannabis flower, up to $50,000 or three times the retail market value of the

cannabis flower, whichever is greater;

(5) if the person sells
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or intends to sell
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more than five pounds but not more than 25

pounds of cannabis flower, up to $100,000 or three times the retail market value of the

cannabis flower, whichever is greater;

(6) if the person sells
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or intends to sell
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more than 25 pounds but not more than 50 pounds

of cannabis flower, up to $250,000 or three times the retail market value of the cannabis

flower, whichever is greater; and

(7) if the person sells
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or intends to sell
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more than 50 pounds of cannabis flower, up to

$1,000,000 or three times the retail market value of the cannabis flower, whichever is greater.

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(c) If a person possesses twice or more of the amount of cannabis flower or cannabinoid

products allowed in subdivision 1, paragraph (a), the office must consider the possession

as evidence of the person's intent to sell and may assess a civil penalty.

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(c)
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(d)
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The office may assess the following civil penalties on a person who sells cannabis

concentrate without a license issued under this chapter that authorizes the sale:

(1) if the person sells up to eight grams of cannabis concentrate, up to $3,000 or three

times the retail market value of the cannabis concentrate, whichever is greater;

(2) if the person sells more than eight grams but not more than 40 grams of cannabis

concentrate, up to $10,000 or three times the retail market value of the cannabis concentrate,

whichever is greater;

(3) if the person sells more than 40 grams but not more than 80 grams of cannabis

concentrate, up to $25,000 or three times the retail market value of the cannabis concentrate,

whichever is greater;

(4) if the person sells more than 80 grams but not more than 400 grams of cannabis

concentrate, up to $50,000 or three times the retail market value of the cannabis concentrate,

whichever is greater;

(5) if the person sells more than 400 grams but not more than two kilograms of cannabis

concentrate, up to $100,000 or three times the retail market value of the cannabis concentrate,

whichever is greater;

(6) if the person sells more than two kilograms but not more than four kilograms of

cannabis concentrate, up to $250,000 or three times the retail market value of the cannabis

concentrate, whichever is greater; and

(7) if the person sells more than four kilograms of cannabis concentrate, up to $1,000,000

or three times the retail market value of the cannabis concentrate, whichever is greater.

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(d)
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(e)
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The office may assess the following civil penalties on a person who imports or

sells products infused with tetrahydrocannabinol without a license issued under this chapter

that authorizes the importation or sale:

(1) if the person imports or sells products infused with up to 800 milligrams of

tetrahydrocannabinol, up to $3,000 or three times the retail market value of the infused

product, whichever is greater;

(2) if the person imports or sells products infused with a total of more than 800 milligrams

but not more than four grams of tetrahydrocannabinol, up to $10,000 or three times the

retail market value of the infused product, whichever is greater;

(3) if the person imports or sells products infused with a total of more than four grams

but not more than eight grams of tetrahydrocannabinol, up to $25,000 or three times the

retail market value of the infused product, whichever is greater;

(4) if the person imports or sells products infused with a total of more than eight grams

but not more than 40 grams of tetrahydrocannabinol, up to $50,000 or three times the retail

market value of the infused product, whichever is greater;

(5) if the person imports or sells products infused with a total of more than 40 grams

but not more than 200 grams of tetrahydrocannabinol, up to $100,000 or three times the

retail market value of the infused product, whichever is greater;

(6) if the person imports or sells products infused with a total of more than 200 grams

but not more than 400 grams of tetrahydrocannabinol, up to $250,000 or three times the

retail market value of the infused product, whichever is greater; and

(7) if the person imports or sells products infused with a total of more than 400 grams

of tetrahydrocannabinol, up to $1,000,000 or three times the retail market value of the

infused product, whichever is greater.

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(e)
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(f)
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The office may assess a civil penalty of up to $500 for each plant grown in excess

of the limit on a person who grows more than eight cannabis plants or more than four mature,

flowering plants, without a license to cultivate cannabis issued under this chapter.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 342.12, is amended to read:

342.12 LICENSES; TRANSFERS; ADJUSTMENTS.

(a) Licenses issued under this chapter that are available to all applicants pursuant to

section
342.14, subdivision 1b
, paragraph (c), may be freely transferred subject to the prior

written approval of the office unless the license holder has not received a final site inspection

or the license holder is a social equity applicant.

(b) Licenses issued as social equity licenses pursuant to either section
342.14, subdivision

1b, paragraph (b), or section
342.175
, paragraph (b), may only be transferred to another

social equity applicant for three years after the date on which the office issues the license.

Three years after the date of issuance, a license holder may transfer a license to any entity.

Transfer of a license that was issued as a social equity license must be reviewed by the

Division of Social Equity and is subject to the prior written approval of the office.

(c) Preliminary license approval issued pursuant to section
342.14, subdivision 5
, may

not be transferred.

(d) A new license must be obtained when
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:
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(1) the form of the licensee's legal business structure converts or changes to a different

type of legal business structure; or

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(2)
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the
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licensee
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license holder
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dissolves; consolidates; reorganizes; undergoes bankruptcy,

insolvency, or receivership proceedings; merges with another legal organization; or assigns

all or substantially all of its assets for the benefit of creditors.

(e) Licenses must be renewed annually.

(f) License holders may petition the office to adjust the tier of a license issued within a

license category if the license holder meets all applicable requirements.

(g) The office by rule may permit the relocation of a licensed cannabis business; permit

the relocation of an approved operational location, including a cultivation, manufacturing,

processing, or retail location; adopt requirements for the submission of a license relocation

application; establish standards for the approval of a relocation application; and charge a

fee not to exceed $250 for reviewing and processing applications. Relocation of a licensed

premises pursuant to this paragraph does not extend or otherwise modify the license term

of the license subject to relocation.

Sec. 4.

Minnesota Statutes 2024, section 342.15, subdivision 2, is amended to read:

Subd. 2.

Criminal offenses; disqualifications.

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(a)
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The office may by rule determine

whether any felony convictions, including but not limited to convictions for noncannabis

controlled substance crimes in the first or second degree, human trafficking, labor trafficking,

fraud, or financial crimes, disqualify an individual from holding or receiving a cannabis

business license issued under this chapter or working for a cannabis business, and the length

of any such disqualification. In adopting rules pursuant to this subdivision, the office shall

not disqualify an individual for a violation of section
152.025
.

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(b) The office must not issue a cannabis business license to any person or business who

was convicted of illegally selling cannabis after August 1, 2023, unless five years have

passed since the date of conviction.

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(c) The office must not issue a cannabis business license to any person or business who

violated this chapter after August 1, 2023, unless five years have passed since the date of

violation. The office may set aside the violation if the office finds that the violation occurred

as a result of a mistake made in good faith and the violation did not involve gross negligence,

an illegal sale of cannabis, or cause harm to the public. The office must not issue a license

to any person or business who the office has assessed a fine to under section
342.09
,

subdivision 6.

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Sec. 5.

Minnesota Statutes 2024, section 342.15, subdivision 5, is amended to read:

Subd. 5.

Civil and regulatory offenses; disqualifications.

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(a)
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The office may determine

whether any civil or regulatory violations, as determined by another state agency, local unit

of government, or any other jurisdiction, disqualify an individual from holding or receiving

a cannabis business license issued under this chapter or disqualify an individual from working

for a cannabis business, and the length of the disqualification. Upon the office's request, a

state agency, as defined in section
13.02, subdivision 17
, except for the Department of

Revenue, may release civil investigative data, including data classified as protected nonpublic

or confidential under section
13.39, subdivision 2
, if the request is related to a specific

applicant and the data is necessary to make a determination under this section.

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(b) The office must not issue a cannabis business license to any person or business who

violated this chapter after August 1, 2023, unless five years have passed since the date of

the violation. The office may set aside the violation if the office finds that the violation:

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(1) occurred as a result of a mistake made in good faith;

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(2) did not involve gross negligence;

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(3) did not involve an illegal sale of cannabis; and

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(4) did not cause harm to the public.

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(c) The office must not issue a cannabis business license to any person or business who

was assessed a fine by the office under section 342.09, subdivision 6.

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(d) The office may determine the length of a disqualification for a true party of interest

who owns or controls more than ten percent of a cannabis business that had a cannabis

business license or hemp business license revoked by the office under section 342.21.

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Sec. 6.

Minnesota Statutes 2024, section 342.19, subdivision 5, is amended to read:

Subd. 5.

Violations; administrative orders and penalties.

(a) The office may issue an

administrative order to any licensed cannabis business or hemp business that the office

determines has committed a violation of this chapter or rules adopted pursuant to this chapter.

The administrative order may require the business to correct the violation or to cease and

desist from committing the violation. The order must state the deficiencies that constitute

the violation and the time by which the violation must be corrected. If the business believes

that the information in the administrative order is in error, the business may ask the office

to consider the parts of the order that are alleged to be in error. The request must be in

writing, delivered to the office by certified mail within seven days after receipt of the order,

and provide documentation to support the allegation of error. The office must respond to a

request for reconsideration within 15 days after receiving the request. A request for

reconsideration does not stay the correction order unless the office issues a supplemental

order granting additional time. The office's disposition of a request for reconsideration is

final.

(b) For each violation of this chapter or rules adopted pursuant to this chapter, the office

may issue to each cannabis business or hemp business a monetary penalty of up to $10,000,

an amount that deprives the business of any economic advantage gained by the violation,

or both.

(c) An administrative penalty may be recovered in a civil action in the name of the state

brought in the district court of the county where the violation is alleged to have occurred

or the district court where the office is housed.

(d) In addition to penalties listed in this subdivision, a person or business who violates

the provisions of this chapter is subject to any applicable criminal penalty.

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(e) If any product regulated under this chapter is present on the premises of a business

conducting retail sales, the office must consider the presence of the product as evidence of

the business's intent to offer the product for sale.

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Sec. 7.

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[342.245] ENDORSEMENTS.

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(a) The office must provide endorsement application forms to applicants.

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(b) The office may deny an endorsement application if:

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(1) the license holder has previously had an endorsement suspended, revoked, or canceled

by the office within the last five years;

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(2) the license holder owes outstanding fines to the office for violations; or

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(3) the license holder does not meet the requirements to: (i) conduct activities authorized

by the endorsement; or (ii) conduct activities authorized by the endorsement at the specific

location indicated on the application.

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(c) The office must not charge a fee to an applicant for an endorsement application.

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(d) The office must align the term and renewal period for an endorsement with the term

and renewal period of the applicant's license.

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Sec. 8.

Minnesota Statutes 2024, section 342.25, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

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Every
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(a) A
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cannabis business
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with a license or

endorsement authorizing the cultivation of cannabis
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seeking to cultivate cannabis
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must
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comply with the requirements of this section
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apply for and obtain a cannabis cultivation

endorsement
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.

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(b) A cannabis cultivation endorsement is available to the following license holders:

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(1) cannabis microbusinesses;

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(2) cannabis mezzobusinesses;

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(3) cannabis cultivators; and

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(4) medical cannabis combination businesses.

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Sec. 9.

Minnesota Statutes 2024, section 342.25, subdivision 2, is amended to read:

Subd. 2.

Cultivation records.

A business
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licensed or authorized to cultivate cannabis
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with a cannabis cultivation endorsement
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must prepare a cultivation record for each batch

of cannabis plants and cannabis flower in the form required by the office and must maintain

each record for at least five years.
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The
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A
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cultivation record must include the quantity and

timing,
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where
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if
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applicable, of each pesticide, fertilizer, soil amendment, or plant amendment

used to cultivate the batch, as well as any other information required by the office in rule.
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The
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A
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cannabis business must
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present
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provide
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cultivation records to the office, the

commissioner of agriculture, or the commissioner of health upon request.

Sec. 10.

Minnesota Statutes 2024, section 342.25, subdivision 3, is amended to read:

Subd. 3.

Agricultural chemicals and other inputs.

A business
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licensed or authorized

to cultivate cannabis
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with a cannabis cultivation endorsement
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is subject to rules promulgated

by the office in consultation with the commissioner of agriculture, subject to subdivision

5, governing the use of pesticides, fertilizers, soil amendments, plant amendments, and other

inputs to cultivate cannabis.

Sec. 11.

Minnesota Statutes 2024, section 342.25, subdivision 4, is amended to read:

Subd. 4.

Cultivation plan.

A business
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licensed or authorized to cultivate cannabis
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with

a cannabis cultivation endorsement
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must prepare, maintain, and execute an operating plan

and a cultivation plan as directed by the office in rule, which must include but is not limited

to:

(1) water usage;

(2) recycling;

(3) solid waste disposal; and

(4) a pest management protocol that incorporates integrated pest management principles

to control or prevent the introduction of pests to the cultivation site.

Sec. 12.

Minnesota Statutes 2024, section 342.25, subdivision 5, is amended to read:

Subd. 5.

Agricultural chemicals and other inputs; pollinator protection.

(a) A business
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licensed or authorized to cultivate cannabis
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with a cannabis cultivation endorsement
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must

comply with chapters 18B, 18C, 18D, and any other pesticide, fertilizer, soil amendment,

and plant amendment laws and rules enforced by the commissioner of agriculture.

(b) A business
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licensed or authorized to cultivate cannabis
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with a cannabis cultivation

endorsement
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must not apply pesticides when pollinators are present or allow pesticides to

drift to flowering plants that are attractive to pollinators.

Sec. 13.

Minnesota Statutes 2024, section 342.25, subdivision 6, is amended to read:

Subd. 6.

Adulteration prohibited.

A business
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licensed or authorized to cultivate cannabis
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with a cannabis cultivation endorsement
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must not treat or otherwise adulterate cannabis

plants or cannabis flower with any substance or compound that has the effect or intent of

altering the color, appearance, weight, potency, or odor of the cannabis.

Sec. 14.

Minnesota Statutes 2024, section 342.25, subdivision 7, is amended to read:

Subd. 7.

Indoor or outdoor cultivation authorized; security.

A business
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licensed or

authorized to cultivate cannabis
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with a cannabis cultivation endorsement
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may cultivate

cannabis plants indoors or outdoors, subject to the security, fencing, lighting, and any other

requirements imposed by the office in rule.

Sec. 15.

Minnesota Statutes 2024, section 342.26, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

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Every
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(a) A
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cannabis business
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with a license or

endorsement authorizing the creation of cannabis concentrate and manufacture of cannabis

products and hemp-derived consumer products for public consumption must comply with

the requirements of this section
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seeking to manufacture cannabis products must apply for

and obtain the applicable endorsement according to subdivisions 3 and 4
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.

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(b) An endorsement under subdivisions 3 and 4 is available to the following license

holders:

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(1) cannabis microbusinesses;

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(2) cannabis mezzobusinesses;

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(3) cannabis manufacturers; and

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(4) medical cannabis combination businesses.

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Sec. 16.

Minnesota Statutes 2024, section 342.26, subdivision 2, is amended to read:

Subd. 2.

All manufacturer operations.

(a) Cannabis manufacturing must take place in

an enclosed, locked facility that is used exclusively for the manufacture of cannabis products,

creation of hemp concentrate, creation of artificially derived cannabinoids, creation of

lower-potency hemp edibles, or creation of hemp-derived consumer products, except that

a business that also holds a cannabis cultivator license may operate in a facility that shares

general office space, bathrooms, entryways, and walkways.

(b) Cannabis manufacturing must take place on equipment that is used exclusively for

the manufacture of cannabis products, creation of hemp concentrate, creation of artificially

derived cannabinoids, creation of lower-potency hemp edibles, or creation of hemp-derived

consumer products.

(c) A business
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licensed or authorized to manufacture cannabis products
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with an

endorsement under subdivision 3 or 4
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must comply with all applicable packaging, labeling,

and health and safety requirements.

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(d) A cannabis business with a production of consumer product endorsement may not

manufacture, import, export, or sell a cannabinoid product that uses an electronic delivery

device with an embedded or inseparable battery.

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EFFECTIVE DATE.

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Paragraph (d) is effective January 1, 2027.

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Sec. 17.

Minnesota Statutes 2024, section 342.26, subdivision 3, is amended to read:

Subd. 3.

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Cannabis
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extraction and concentration
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endorsement, hemp extraction and

concentration endorsement, and creation of artificially derived cannabinoids

endorsement
new text end
.

(a) A
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cannabis
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business
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licensed or authorized
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seeking
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to manufacture
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cannabis products that creates
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cannabis concentrate
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, hemp concentrate, or artificially derived

cannabinoids
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must
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apply for and
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obtain
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an
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a cannabis extraction and concentration
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endorsement
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from the office
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.

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(b) A cannabis business seeking to manufacture hemp concentrate must apply for and

obtain a hemp extraction and concentration endorsement.

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(c) A cannabis business seeking to manufacture artificially derived cannabinoids must

apply for and obtain a creation of artificially derived cannabinoids endorsement. A cannabis

business must hold a hemp extraction and concentration endorsement to apply for and obtain

a creation of artificially derived cannabinoids endorsement.

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(b)
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(d)
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A business
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licensed or authorized to manufacture cannabis products
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with a

cannabis extraction and concentration endorsement, hemp extraction and concentration

endorsement, or creation of artificially derived cannabinoids endorsement
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must inform the

office of all methods of extraction and concentration that the manufacturer intends to use

and identify the volatile chemicals, if any, that will be involved in the creation of cannabis

concentrate or hemp concentrate. A cannabis
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manufacturer
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business with a cannabis

extraction and concentration endorsement, hemp extraction and concentration endorsement,

or creation of artificially derived cannabinoids endorsement
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may not use a method of

extraction and concentration or a volatile chemical without approval by the office.

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(c)
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(e)
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A business
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licensed or authorized to manufacture cannabis products
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with a cannabis

extraction and concentration endorsement, hemp extraction and concentration endorsement,

or creation of artificially derived cannabinoids endorsement
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must inform the office of all

methods of conversion that the manufacturer will use, including any specific catalysts that

the manufacturer will employ, to create artificially derived cannabinoids and the molecular

nomenclature of all cannabinoids or other chemical compounds that the manufacturer will

create. A business
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licensed or authorized to manufacture cannabis products
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with a cannabis

extraction and concentration endorsement, hemp extraction and concentration endorsement,

or creation of artificially derived cannabinoids endorsement
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may not use a method of

conversion or a catalyst without approval by the office.

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(d)
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(f)
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A business
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licensed or authorized to manufacture cannabis products
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new text begin
with a cannabis

extraction and concentration endorsement, hemp extraction and concentration endorsement,

or creation of artificially derived cannabinoids endorsement
new text end
must obtain a certification from

an independent third-party industrial hygienist or professional engineer approving:

(1) all electrical, gas, fire suppression, and exhaust systems; and

(2) the plan for safe storage and disposal of hazardous substances, including but not

limited to any volatile chemicals.

deleted text begin

(e)
deleted text end

new text begin
(g)
new text end
A business
deleted text begin
licensed or authorized to manufacture cannabis products that

manufactures
deleted text end
new text begin
with a cannabis extraction and concentration endorsement may manufacture
new text end

cannabis concentrate from cannabis flower received from an unlicensed person who is at

least 21 years of age
new text begin
and
new text end
must comply with all health and safety requirements established

by the office. At a minimum, the office shall require the manufacturer to:

(1) store the cannabis flower in an area that is segregated from cannabis flower and hemp

plant parts received from a licensed cannabis business;

(2) perform the extraction and concentration on equipment that is used exclusively for

extraction or concentration of cannabis flower received from unlicensed individuals;

(3) store any cannabis concentrate in an area that is segregated from cannabis concentrate,

hemp concentrate, or artificially derived cannabinoids derived or manufactured from cannabis

flower or hemp plant parts received from a licensed cannabis business; and

(4) provide any cannabis concentrate only to the person who provided the cannabis

flower.

deleted text begin

(f)
deleted text end

new text begin
(h)
new text end
Upon the sale of cannabis concentrate, hemp concentrate, or artificially derived

cannabinoids to any person, cooperative, or business, a business
deleted text begin
licensed or authorized to

manufacture cannabis products
deleted text end
new text begin
with a cannabis extraction and concentration endorsement,

hemp extraction and concentration endorsement, or creation of artificially derived

cannabinoids endorsement
new text end
must provide a statement to the buyer that discloses the method

of extraction and concentration or conversion used and any solvents, gases, or catalysts,

including but not limited to any volatile chemicals, involved in that method.

Sec. 18.

Minnesota Statutes 2024, section 342.26, subdivision 4, is amended to read:

Subd. 4.

new text begin
Edible cannabinoid product handler endorsement and
new text end
production of

consumer products
new text begin
endorsement
new text end
.

(a) A
new text begin
cannabis
new text end
business
deleted text begin
licensed or authorized to

manufacture cannabis products that produces edible cannabis products or lower-potency

hemp edibles
deleted text end

new text begin
seeking to produce edible cannabis products or lower-potency hemp edibles
new text end

must
new text begin
apply for and
new text end
obtain an edible cannabinoid product handler endorsement from the

office.

new text begin

(b) A cannabis business with an edible cannabinoid product handler endorsement must

comply with the requirements in section 342.07, subdivision 3.

new text end

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
A
new text begin
cannabis
new text end
business
deleted text begin
licensed or authorized to manufacture cannabis products
deleted text end

new text begin

seeking to produce hemp-derived consumer products or cannabis products other than edible

cannabis products
new text end
must
new text begin
apply for and
new text end
obtain
deleted text begin
an
deleted text end

new text begin
a production of consumer products
new text end

endorsement
deleted text begin
from the office to produce:
deleted text end
new text begin
.
new text end

deleted text begin

(1) cannabis products other than edible cannabis products; or

deleted text end

deleted text begin

(2) hemp-derived consumer products other than lower-potency hemp edibles.

deleted text end

deleted text begin

(c)
deleted text end
new text begin
(d) A cannabis business with an endorsement under this subdivision must ensure that
new text end

all areas within the licensed premises of
deleted text begin
a
deleted text end
new text begin
the
new text end
business
deleted text begin
licensed or authorized to manufacture

cannabis products producing cannabis products, lower-potency hemp edibles, or

hemp-derived consumer products must
deleted text end
meet the sanitary standards specified in rules adopted

by the office.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
A
new text begin
cannabis
new text end
business
deleted text begin
licensed or authorized to manufacture cannabis products
deleted text end
new text begin

with an endorsement under this subdivision
new text end
may only add chemicals or compounds approved

by the office to cannabis concentrate, hemp concentrate, or artificially derived cannabinoids.

deleted text begin

(e)
deleted text end
new text begin
(f)
new text end
Upon the sale of any cannabis product, lower-potency hemp edible, or

hemp-derived consumer product to a cannabis business or hemp business, a
new text begin
cannabis
new text end
business
deleted text begin

licensed or authorized to manufacture cannabis products
deleted text end
new text begin
with an endorsement under this

subdivision
new text end
must provide a statement to the buyer that discloses the product's ingredients,

including but not limited to any chemicals or compounds and any major food allergens

declared by name.

deleted text begin

(f)
deleted text end
new text begin
(g)
new text end
A business
deleted text begin
licensed or authorized to manufacture cannabis products shall
deleted text end
new text begin
with

an endorsement under this subdivision must
new text end
not add any cannabis flower, cannabis

concentrate, artificially derived cannabinoid, hemp plant part, or hemp concentrate to a

product
deleted text begin
where
deleted text end
new text begin
if
new text end
the manufacturer of the product holds a trademark to the product's name,

except that a business licensed or authorized to manufacture cannabis products may use a

trademarked food product if the manufacturer uses the product as a component or as part

of a recipe and
deleted text begin
where
deleted text end
new text begin
if
new text end
the business licensed or authorized to manufacture cannabis products

does not state or advertise to the customer that the final retail cannabis product, lower-potency

hemp edible, or hemp-derived consumer product contains a trademarked food product.

Sec. 19.

Minnesota Statutes 2024, section 342.26, subdivision 5, is amended to read:

Subd. 5.

Exception.

Nothing in this section applies to the operations of a lower-potency

hemp edible manufacturer.
new text begin
A lower-potency hemp edible manufacturer must comply with

section 342.45 and applicable rules.
new text end

Sec. 20.

Minnesota Statutes 2024, section 342.27, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

deleted text begin
Every
deleted text end
new text begin
(a) A
new text end
cannabis business
deleted text begin
with a license or

endorsement authorizing the
deleted text end
new text begin
seeking to conduct
new text end
retail
deleted text begin
sale
deleted text end
new text begin
sales
new text end
of cannabis flower
deleted text begin
or
deleted text end
new text begin
,
new text end

cannabis products
new text begin
, hemp-derived consumer products, or lower-potency hemp edible products
new text end

must
deleted text begin
comply with the requirements of this section
deleted text end
new text begin
apply for and obtain a cannabis retail

operations endorsement
new text end
.

new text begin

(b) A cannabis retail operations endorsement is available to the following license holders:

new text end

new text begin

(1) cannabis microbusinesses;

new text end

new text begin

(2) cannabis mezzobusinesses;

new text end

new text begin

(3) cannabis retailers; and

new text end

new text begin

(4) medical cannabis combination businesses.

new text end

Sec. 21.

Minnesota Statutes 2024, section 342.27, is amended by adding a subdivision to

read:

new text begin

Subd. 2a.

new text end

new text begin

Cannabis flower packaging endorsement.

new text end

new text begin

(a) A cannabis business seeking

to package cannabis flower at a point of retail sale must apply for and obtain a cannabis

flower packaging endorsement.

new text end

new text begin

(b) A cannabis business with a cannabis flower packaging endorsement must package

cannabis flower in a container that:

new text end

new text begin

(1) complies with all packaging requirements in section 342.62;

new text end

new text begin

(2) complies with all applicable rules; and

new text end

new text begin

(3) includes an affixed label on the container that, at the final point of sale to a customer,

meets all requirements in section 342.63 and applicable rules.

new text end

new text begin

(c) A cannabis business with a cannabis flower packaging endorsement may store bulk

cannabis flower intended to be packaged at the point of sale outside of the secure storage

area during operating hours. At the end of operating hours, the business must ensure that

bulk cannabis flower is placed in the secure storage area.

new text end

new text begin

(d) A cannabis flower packaging endorsement is available to the following license holders

only if the license holder holds a cannabis retail operations endorsement:

new text end

new text begin

(1) cannabis microbusinesses;

new text end

new text begin

(2) cannabis mezzobusinesses;

new text end

new text begin

(3) cannabis retailers; or

new text end

new text begin

(4) medical cannabis combination businesses.

new text end

Sec. 22.

Minnesota Statutes 2024, section 342.28, subdivision 6, is amended to read:

Subd. 6.

new text begin
Cannabis
new text end
cultivation endorsement.

A cannabis microbusiness that cultivates

cannabis plants and harvests cannabis flower must
new text begin
apply for and obtain a cannabis cultivation

endorsement and
new text end
comply with the requirements in section
342.25
.

Sec. 23.

Minnesota Statutes 2024, section 342.28, subdivision 7, is amended to read:

Subd. 7.

new text begin
Cannabis
new text end
extraction and concentration endorsement
new text begin
, hemp extraction and

concentration endorsement, and creation of artificially derived cannabinoids

endorsement
new text end
.

new text begin
(a)
new text end
A cannabis microbusiness
deleted text begin
that creates
deleted text end
new text begin
seeking to manufacture
new text end
cannabis

concentrate must
new text begin
apply for and obtain a cannabis extraction and concentration endorsement

and
new text end
comply with the requirements in section
342.26
, subdivisions 2 and 3.

new text begin

(b) A cannabis microbusiness seeking to manufacture hemp concentrate must apply for

and obtain a hemp extraction and concentration endorsement and comply with the

requirements in section 342.26, subdivisions 2 and 3.

new text end

new text begin

(c) A cannabis microbusiness seeking to manufacture artificially derived cannabinoids

must apply for and obtain a creation of artificially derived cannabinoids endorsement and

comply with the requirements in section 342.26, subdivisions 2 and 3.

new text end

Sec. 24.

Minnesota Statutes 2025 Supplement, section 342.28, subdivision 8, is amended

to read:

Subd. 8.

Production of consumer products endorsement
new text begin
and edible cannabinoid

product handler endorsement
new text end
.

new text begin
(a)
new text end
A cannabis microbusiness
deleted text begin
that manufactures edible
deleted text end
new text begin

seeking to manufacture
new text end
cannabis products
deleted text begin
, lower-potency hemp products,
deleted text end
or hemp-derived

consumer products must
new text begin
apply for and obtain a production of consumer products endorsement

and
new text end
comply with the requirements in section
342.26, subdivisions 2
and 4.

new text begin

(b) A cannabis microbusiness seeking to manufacture edible cannabis products or

lower-potency hemp edibles must apply for and obtain an edible cannabinoid product handler

endorsement and comply with the requirements in section 342.26, subdivisions 2 and 4.

new text end

Sec. 25.

Minnesota Statutes 2024, section 342.28, subdivision 9, is amended to read:

Subd. 9.

Retail operations endorsement.

new text begin
(a)
new text end
A cannabis microbusiness
deleted text begin
that operates
deleted text end
new text begin

seeking to operate
new text end
a retail location must
new text begin
apply for and obtain a cannabis retail operations

endorsement and
new text end
comply with the requirements in section
342.27
.

new text begin

(b) A cannabis microbusiness with a cannabis retail operations endorsement may apply

for and obtain a cannabis flower packaging endorsement subject to the requirements in

section 342.27, subdivision 2a.

new text end

Sec. 26.

Minnesota Statutes 2024, section 342.28, subdivision 11, is amended to read:

Subd. 11.

Transportation between facilities.

A cannabis microbusiness
deleted text begin
may
deleted text end
new text begin
seeking

to
new text end
transport immature cannabis plants and seedlings, cannabis flower, cannabis products,

artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp

edibles, and hemp-derived consumer products between facilities operated by the cannabis

microbusiness
deleted text begin
if
deleted text end
new text begin
must apply for and obtain an internal transporter endorsement. To obtain

an internal transporter endorsement,
new text end
the cannabis microbusiness
new text begin
must
new text end
:

(1)
deleted text begin
provides
deleted text end
new text begin
provide
new text end
the office with the information described in section
342.35,

subdivision 2
; and

(2)
deleted text begin
complies
deleted text end
new text begin
comply
new text end
with the requirements of section
342.36
.

Sec. 27.

Minnesota Statutes 2024, section 342.29, subdivision 5, is amended to read:

Subd. 5.

new text begin
Cannabis
new text end
cultivation endorsement.

A cannabis mezzobusiness
deleted text begin
that cultivates
deleted text end

new text begin

seeking to cultivate
new text end
cannabis plants and
deleted text begin
harvests
deleted text end

new text begin
harvest
new text end
cannabis flower must
new text begin
apply for

and obtain a cannabis cultivation endorsement and
new text end
comply with the requirements in section

342.25
.

Sec. 28.

Minnesota Statutes 2024, section 342.29, subdivision 6, is amended to read:

Subd. 6.

new text begin
Cannabis
new text end
extraction and concentration endorsement
new text begin
, hemp extraction and

concentration endorsement, and creation of artificially derived cannabinoids

endorsement
new text end
.

new text begin
(a)
new text end
A cannabis mezzobusiness
deleted text begin
that creates
deleted text end
new text begin
seeking to manufacture
new text end
cannabis

concentrate must
new text begin
apply for and obtain a cannabis extraction and concentration endorsement

and
new text end
comply with the requirements in section
342.26
, subdivisions 2 and 3.

new text begin

(b) A cannabis mezzobusiness seeking to manufacture hemp concentrate must apply for

and obtain a hemp extraction and concentration endorsement and comply with the

requirements in section 342.26, subdivisions 2 and 3.

new text end

new text begin

(c) A cannabis mezzobusiness seeking to manufacture artificially derived cannabinoids

must apply for and obtain a creation of artificially derived cannabinoids endorsement and

comply with the requirements in section 342.26, subdivisions 2 and 3.

new text end

Sec. 29.

Minnesota Statutes 2025 Supplement, section 342.29, subdivision 7, is amended

to read:

Subd. 7.

Production of consumer products endorsement
new text begin
and edible cannabinoid

product handler endorsement
new text end
.

new text begin
(a)
new text end
A cannabis mezzobusiness
deleted text begin
that manufactures edible
deleted text end
new text begin

seeking to manufacture
new text end
cannabis products
deleted text begin
, lower-potency hemp products,
deleted text end
or hemp-derived

consumer products must
new text begin
apply for and obtain a production of consumer products endorsement

and
new text end
comply with the requirements in section
342.26, subdivisions 2
and 4.

new text begin

(b) A cannabis mezzobusiness seeking to manufacture edible cannabis products or

lower-potency hemp edibles must apply for and obtain an edible cannabinoid product handler

endorsement and comply with the requirements in section 342.26, subdivisions 2 and 4.

new text end

Sec. 30.

Minnesota Statutes 2024, section 342.29, subdivision 8, is amended to read:

Subd. 8.

Retail operations endorsement.

new text begin
(a)
new text end
A cannabis mezzobusiness
deleted text begin
that operates
deleted text end
new text begin

seeking to operate
new text end
a retail location must
new text begin
apply for and obtain a cannabis retail operations

endorsement and
new text end
comply with the requirements in section
342.27
.

new text begin

(b) A cannabis mezzobusiness with a cannabis retail operations endorsement may apply

for and obtain a cannabis flower packaging endorsement subject to the requirements in

section 342.27, subdivision 2a.

new text end

Sec. 31.

Minnesota Statutes 2024, section 342.29, subdivision 8a, is amended to read:

Subd. 8a.

Multiple endorsements required.

new text begin
(a)
new text end
Within 18 months of receiving a cannabis

mezzobusiness license, a cannabis mezzobusiness must
new text begin
apply for and
new text end
obtain at least two of

the
new text begin
following
new text end
endorsements
deleted text begin
identified in subdivisions 5, 6, 7, and 8.
deleted text end
new text begin
:
new text end

new text begin

(1) a cannabis cultivation endorsement under section 342.25;

new text end

new text begin

(2) a cannabis extraction and concentration endorsement under section 342.26;

new text end

new text begin

(3) a hemp extraction and concentration endorsement under section 342.26;

new text end

new text begin

(4) a creation of artificially derived cannabinoids endorsement under section 342.26;

new text end

new text begin

(5) an edible cannabinoid product handler endorsement under section 342.26;

new text end

new text begin

(6) a production of consumer products endorsement under section 342.26; or

new text end

new text begin

(7) a cannabis retail operations endorsement under section 342.27.

new text end

new text begin

(b)
new text end
If a cannabis mezzobusiness fails to obtain multiple endorsements within 18 months,

the office may suspend, revoke, or not renew the license as provided in section
342.21
.

Sec. 32.

Minnesota Statutes 2024, section 342.29, subdivision 10, is amended to read:

Subd. 10.

Transportation between facilities.

A cannabis mezzobusiness
deleted text begin
may
deleted text end
new text begin
seeking

to
new text end
transport immature cannabis plants and seedlings, cannabis flower, cannabis products,

artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp

edibles, and hemp-derived consumer products between facilities operated by the cannabis

mezzobusiness
deleted text begin
if
deleted text end
new text begin
must apply for and obtain an internal transporter endorsement. To obtain

an internal transporter endorsement,
new text end
the cannabis mezzobusiness
new text begin
must
new text end
:

(1)
deleted text begin
provides
deleted text end
new text begin
provide
new text end
the office with the information described in section
342.35,

subdivision 2
; and

(2)
deleted text begin
complies
deleted text end
new text begin
comply
new text end
with the requirements of section
342.36
.

Sec. 33.

Minnesota Statutes 2025 Supplement, section 342.30, subdivision 1, is amended

to read:

Subdivision 1.

Authorized actions.

new text begin

(a) A cannabis cultivator seeking to cultivate cannabis

must apply for and obtain a cannabis cultivation endorsement.

new text end

new text begin

(b)
new text end
A cannabis cultivator
deleted text begin
license entitles the license holder to
deleted text end
new text begin
with a cannabis cultivation

endorsement may
new text end
:

(1) grow cannabis plants within the approved amount of space from seed or immature

plant to mature plant;

(2) harvest cannabis flower from a mature plant;

(3) package and label immature cannabis plants and seedlings and cannabis flower for

sale to other cannabis businesses;

(4) sell immature cannabis plants and seedlings and cannabis flower to other cannabis

businesses;

(5) transport cannabis flower to a cannabis manufacturer located on the same premises;

and

(6) perform other actions approved by the office.

Sec. 34.

Minnesota Statutes 2024, section 342.30, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to

be submitted under section
342.14, subdivision 1
, and rules adopted pursuant to that section,

a person, cooperative, or business seeking a cannabis
deleted text begin
cultivator license
deleted text end
new text begin
cultivation

endorsement
new text end
must submit the following information in a form approved by the office:

(1) an operating plan demonstrating the proposed size and layout of the cultivation

facility; plans for wastewater and waste disposal for the cultivation facility; plans for

providing electricity, water, and other utilities necessary for the normal operation of the

cultivation facility; and plans for compliance with the applicable building code and federal

and state environmental and workplace safety requirements;

(2) a cultivation plan demonstrating the proposed size and layout of the cultivation

facility that will be used exclusively for cultivation including the total amount of plant

canopy; and

(3) evidence that the business will comply with the applicable operation requirements

for the license being sought.

Sec. 35.

Minnesota Statutes 2024, section 342.31, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to

be submitted under section
342.14, subdivision 1
, and rules adopted pursuant to that section,

a person, cooperative, or business seeking a cannabis
deleted text begin
manufacturer license
deleted text end
new text begin
extraction and

concentration endorsement, a hemp extraction and concentration endorsement, a creation

of artificially derived cannabinoids endorsement, a production of consumer products

endorsement, or an edible product handler endorsement
new text end
must submit the following

information in a form approved by the office:

(1) an operating plan demonstrating the proposed layout of the facility, including a

diagram of ventilation and filtration systems; plans for wastewater and waste disposal for

the manufacturing facility; plans for providing electricity, water, and other utilities necessary

for the normal operation of the manufacturing facility; and plans for compliance with

applicable building code and federal and state environmental and workplace safety

requirements; and

(2) evidence that the business will comply with the applicable operation requirements

for the endorsement being sought.

Sec. 36.

Minnesota Statutes 2024, section 342.31, subdivision 5, is amended to read:

Subd. 5.

Manufacturing operations.

A cannabis manufacturer must comply with the

requirements in section
342.26
.
new text begin
A cannabis manufacturer must apply for and obtain a

cannabis extraction and concentration endorsement, a hemp extraction and concentration

endorsement, a creation of artificially derived cannabinoids endorsement, a production of

consumer products endorsement, or an edible product handler endorsement before conducting

activities authorized only under the applicable endorsement.
new text end

Sec. 37.

Minnesota Statutes 2025 Supplement, section 342.32, subdivision 1, is amended

to read:

Subdivision 1.

Authorized actions.

new text begin

(a) A cannabis retailer seeking to conduct retail

sales of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived

consumer products must apply for and obtain a cannabis retail operations endorsement.

new text end

new text begin

(b)
new text end
A cannabis retailer
deleted text begin
license entitles the license holder to
deleted text end
new text begin
with a cannabis retail

operations endorsement may
new text end
:

(1) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products,

lower-potency hemp edibles, and hemp-derived consumer products from cannabis

microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers,

cannabis wholesalers, and medical cannabis combination businesses;

(2) purchase lower-potency hemp edibles from a licensed lower-potency hemp edible

manufacturer or lower-potency hemp edible wholesaler;

(3) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use

cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and

other products authorized by law to customers; and

(4) perform other actions approved by the office.

Sec. 38.

Minnesota Statutes 2024, section 342.32, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to

be submitted under section
342.14, subdivision 1
, and rules adopted pursuant to that section,

a person, cooperative, or business seeking a cannabis retail
deleted text begin
license
deleted text end
new text begin
operations endorsement
new text end

must submit the following information in a form approved by the office:

(1) a list of every retail license held by the applicant and, if the applicant is a business,

every retail license held, either as an individual or as part of another business, by each

officer, director, manager, and general partner of the cannabis business;

(2) an operating plan demonstrating the proposed layout of the facility, including a

diagram of ventilation and filtration systems; policies to avoid sales to individuals who are

under 21 years of age; identification of a restricted area for storage; and plans to prevent

the visibility of cannabis flower, cannabis products, lower-potency hemp edibles, and

hemp-derived consumer products to individuals outside the retail location; and

(3) evidence that the business will comply with the applicable operation requirements

for the license being sought.

Sec. 39.

Minnesota Statutes 2025 Supplement, section 342.44, subdivision 1, is amended

to read:

Subdivision 1.

Application; contents.

(a) Except as otherwise provided in this

subdivision, the provisions of this chapter relating to license applications, license selection

criteria, general ownership disqualifications and requirements, and general operational

requirements do not apply to hemp businesses.

(b) The office shall establish forms and procedures for the processing of hemp licenses

issued under this chapter. At a minimum, any application to obtain or renew a hemp license

shall include the following information, if applicable:

(1) the name, address, and date of birth of the applicant;

(2) the address and legal property description of the business;

(3) proof of trade name registration;

(4) certification that the applicant will comply with the requirements of this chapter

relating to the ownership and operation of a hemp business;

(5) identification of one or more controlling persons or managerial employees as agents

who shall be responsible for dealing with the office on all matters; and

(6) a statement that the applicant agrees to respond to the office's supplemental requests

for information.

(c) An applicant for a lower-potency hemp edible manufacturer license must submit an

attestation signed by a bona fide labor organization stating that the applicant has entered

into a labor peace agreement. A labor peace agreement entered into on or after August 15,

2025, must address the duration of the election.

new text begin

(d) The office may determine whether any civil or regulatory violation as determined

by the office, another state agency, a local government, or any other jurisdiction disqualifies

an individual or business from receiving a hemp business license issued under this chapter.

The office may determine the length of the disqualification.

new text end

Sec. 40.

Minnesota Statutes 2024, section 342.45, subdivision 3, is amended to read:

Subd. 3.

Extraction and concentration.

(a) A lower-potency hemp edible manufacturer
deleted text begin

that creates
deleted text end
new text begin
seeking to create
new text end
hemp concentrate
deleted text begin
or
deleted text end
new text begin
must apply for and obtain a lower-potency

hemp extraction and concentration endorsement. A lower-potency hemp edible manufacturer

seeking to create
new text end
artificially derived cannabinoids must
new text begin
apply for and
new text end
obtain
deleted text begin
an
deleted text end
new text begin
a

lower-potency hemp creation of artificially derived cannabinoid
new text end
endorsement from the

office.

(b) A lower-potency hemp edible manufacturer
deleted text begin
seeking an
deleted text end
new text begin
with a lower-potency hemp

extraction and concentration
new text end
endorsement
deleted text begin
to create hemp concentrate
deleted text end
must inform the office

of all methods of extraction and concentration that the manufacturer intends to use and

identify the volatile chemicals, if any, that will be involved in the creation of hemp

concentrate. A lower-potency hemp edible manufacturer may not use a method of extraction

and concentration or a volatile chemical without approval by the office.

(c) A lower-potency hemp edible manufacturer
deleted text begin
seeking an
deleted text end
new text begin
with a lower-potency hemp

creation of artificially derived cannabinoid
new text end
endorsement
deleted text begin
to create artificially derived

cannabinoids
deleted text end
must inform the office of all methods of conversion that the manufacturer will

use, including any specific catalysts that the manufacturer will employ, to create artificially

derived cannabinoids and the molecular nomenclature of all cannabinoids or other chemical

compounds that the manufacturer will create. A
deleted text begin
business licensed or authorized to

manufacture lower-potency hemp edibles
deleted text end
new text begin
lower-potency hemp edible manufacturer
new text end
may

not use a method of conversion or a catalyst without approval by the office.

(d) A lower-potency hemp edible manufacturer
new text begin
with a lower-potency hemp extraction

and concentration endorsement or a lower-potency hemp creation of artificially derived

cannabinoid endorsement
new text end
must obtain a certification from an independent third-party

industrial hygienist or professional engineer approving:

(1) all electrical, gas, fire suppression, and exhaust systems; and

(2) the plan for safe storage and disposal of hazardous substances, including but not

limited to any volatile chemicals.

(e) Upon the sale of hemp concentrate or artificially derived cannabinoids to any person,

cooperative, or business, a lower-potency hemp edible manufacturer must provide a statement

to the buyer that discloses the method of extraction and concentration or conversion used

and any solvents, gases, or catalysts, including but not limited to any volatile chemicals

involved in that method.

Sec. 41.

Minnesota Statutes 2025 Supplement, section 342.515, subdivision 1, is amended

to read:

Subdivision 1.

Authorized actions.

(a) A person, cooperative, or business holding a

medical cannabis combination business license is prohibited from owning or operating any

other cannabis business or hemp business or holding an active registration agreement under
new text begin

Minnesota Statutes 2024,
new text end
section
152.25, subdivision 1
.

(b) A person or business may hold only one medical cannabis combination business

license.

(c) A medical cannabis combination business license
new text begin
, consistent with the specific license

endorsements,
new text end
entitles the license holder to perform any or all of the following within the

limits established by this section:

(1) grow cannabis plants from seed or immature plant to mature plant and harvest

adult-use cannabis flower and medical cannabis flower from a mature plant;

(2) make cannabis concentrate;

(3) make hemp concentrate, including hemp concentrate with a delta-9

tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

(4) manufacture artificially derived cannabinoids;

(5) manufacture medical cannabinoid products;

(6) manufacture adult-use cannabis products, lower-potency hemp edibles, and

hemp-derived consumer products for public consumption;

(7) purchase immature cannabis plants and seedlings and cannabis flower from a cannabis

microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler,

or another medical cannabis combination business;

(8) purchase hemp plant parts and propagules from an industrial hemp grower licensed

under chapter 18K;

(9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids

from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a

cannabis wholesaler, or another medical cannabis combination business;

(10) purchase hemp concentrate from an industrial hemp processor licensed under chapter

18K;

(11) manufacture, package, and label medical cannabis flower and medical cannabinoid

products for sale to cannabis businesses with a medical cannabis processor endorsement,

cannabis businesses with a medical cannabis retail endorsement, other medical cannabis

combination businesses, and persons in the registry program;

(12) transport and deliver medical cannabis flower and medical cannabinoid products

to medical cannabis processors, medical cannabis retailers, other medical cannabis

combination businesses, patients enrolled in the registry program, registered designated

caregivers, and parents, legal guardians, and spouses of an enrolled patient;

(13) manufacture, package, and label adult-use cannabis flower, adult-use cannabis

products, lower-potency hemp edibles, and hemp-derived consumer products for sale to

customers and other cannabis businesses;

(14) sell medical cannabis flower and medical cannabinoid products to other cannabis

businesses with a medical endorsement, other medical cannabis combination businesses,

and patients enrolled in the registry program, registered designated caregivers, and parents,

legal guardians, and spouses of an enrolled patient;

(15) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use

cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and

other products authorized by law to other cannabis businesses and to customers;

(16) transport immature cannabis plants and seedlings, adult-use cannabis flower,

adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products,

and other products authorized by law to other cannabis businesses;

(17) sell and transport lower-potency hemp edibles to lower-potency hemp edible retailers

and lower-potency hemp edible wholesalers; and

(18) perform other actions approved by the office.

deleted text begin

(d) A medical cannabis combination business is not required to obtain a medical cannabis

endorsement to perform any actions authorized under this section.

deleted text end

Sec. 42.

Minnesota Statutes 2024, section 342.515, subdivision 2, is amended to read:

Subd. 2.

Cultivation; size limitations.

(a) A medical cannabis combination business
new text begin

with a cannabis cultivation endorsement
new text end
may cultivate cannabis to be sold as medical

cannabis flower or used in medical cannabinoid products in an area of up to 60,000 square

feet of plant canopy subject to the limits on adult-use cannabis cultivation in paragraph (c).

A medical cannabis combination business may cultivate cannabis and manufacture cannabis

in more than one location, except the aggregate total of plant canopy in all locations must

count toward the business' canopy limit.

(b) A medical cannabis combination business may cultivate cannabis to be sold as

adult-use cannabis flower or used in adult-use cannabis products in an area authorized by

the office as described in paragraph (c).

(c) The office shall authorize a medical cannabis combination business to cultivate

cannabis for sale in the adult-use market in an area of plant canopy that is equal to one-half

of the area the business used to cultivate cannabis sold in the medical market in the preceding

year. The office shall establish an annual verification and authorization procedure. The

office may increase the area of plant canopy in which a medical cannabis combination

business is authorized to cultivate cannabis for sale in the adult-use market between

authorization periods if the business demonstrates a significant increase in the sale of medical

cannabis and medical cannabis products.

Sec. 43.

Minnesota Statutes 2024, section 342.515, subdivision 4, is amended to read:

Subd. 4.

Retail locations.

A medical cannabis combination business
new text begin
with a cannabis

retail operations endorsement
new text end
may operate up to one retail location in each congressional

district. A medical cannabis combination business must offer medical cannabis flower,

medical cannabinoid products, or both at every retail location.

Sec. 44.

Minnesota Statutes 2024, section 342.515, subdivision 6, is amended to read:

Subd. 6.

Operations.

A medical cannabis combination business
deleted text begin
must comply with the

relevant requirements of
deleted text end

new text begin
may apply for and obtain any endorsement identified in
new text end
sections

342.25
,
342.26
,
342.27
, and
342.51
deleted text begin
, subdivisions 2 to 5
deleted text end
.

Sec. 45.

Minnesota Statutes 2025 Supplement, section 342.515, subdivision 7, is amended

to read:

Subd. 7.

Transportation.

new text begin
(a)
new text end
A medical cannabis combination business
deleted text begin
may
deleted text end
new text begin
seeking

to:
new text end

new text begin

(1)
new text end
transport immature cannabis plants and seedlings, cannabis flower, cannabis products,

artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp

edibles, and hemp-derived consumer products
deleted text begin
if the
deleted text end
new text begin
between facilities operated by the

business must apply for and obtain an internal transporter endorsement; or

new text end

new text begin

(2) transport immature cannabis plants and seedlings, cannabis flower, cannabis products,

artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp

edibles, and hemp-derived consumer products to other cannabis and hemp businesses must

apply for and obtain an external transporter endorsement.

new text end

new text begin

(b) A
new text end
medical cannabis combination business
new text begin
seeking an endorsement under paragraph

(a) must
new text end
:

(1)
deleted text begin
provides
deleted text end
new text begin
provide
new text end
the office with the information described in section
342.35,

subdivision 2
; and

(2)
deleted text begin
complies
deleted text end
new text begin
comply
new text end
with the requirements of section
342.36
.

Sec. 46.

Minnesota Statutes 2025 Supplement, section 342.62, subdivision 2, is amended

to read:

Subd. 2.

Packaging requirements.

(a)
deleted text begin
Except as provided in paragraph (b),
deleted text end
All
deleted text begin
cannabis

flower,
deleted text end
cannabis products, lower-potency hemp edibles, and hemp-derived consumer products

sold to customers or patients must be
deleted text begin
:
deleted text end

deleted text begin

(1)
deleted text end
prepackaged in packaging or a container that is child-resistant, tamper-evident, and

opaque
deleted text begin
; or
deleted text end
new text begin
.
new text end

deleted text begin

(2) placed in packaging or a container that is plain, child-resistant, tamper-evident, and

opaque at the final point of sale to a customer.

deleted text end

new text begin

(b) All cannabis flower sold to customers or patients must be prepackaged unless the

business selling the cannabis flower holds a cannabis flower packaging endorsement.

new text end

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
The requirement that packaging be child-resistant does not apply to a

lower-potency hemp edible that is intended to be consumed as a beverage.

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
If a cannabis product, lower-potency hemp edible, or a hemp-derived consumer

product is packaged in a manner that includes more than a single serving, each serving must

be indicated by scoring, wrapping, or other indicators designating the individual serving

size.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
Notwithstanding paragraph
deleted text begin
(c)
deleted text end
new text begin
(d)
new text end
, any edible cannabinoid products that are

intended to be combined with food or beverage products before consumption must indicate

a single serving using one of the following methods:

(1) the product is packaged in individual servings;

(2) the product indicates a single serving by scoring or use of another indicator that

appears on the product; or

(3) the product is sold with a calibrated dropper, measuring spoon, or similar device for

measuring a single serving.

deleted text begin

(e)
deleted text end
new text begin
(f)
new text end
A package containing multiple servings of a lower-potency hemp edible that is

not intended to be consumed as a beverage must not contain:

(1) more than 50 milligrams of delta-9 tetrahydrocannabinol;

(2) more than 1,000 milligrams of cannabidiol, cannabigerol, cannabinol, or

cannabichromene
deleted text begin
:
deleted text end
new text begin
;
new text end

(3) more than the established limit of any other cannabinoid authorized by the office;

or

(4) any combination of those cannabinoids that exceeds the identified amounts for the

applicable product category.

deleted text begin

(f)
deleted text end
new text begin
(g)
new text end
A single container containing a lower-potency hemp edible
deleted text begin
product
deleted text end
that is intended

to be consumed as a beverage must not contain:

(1) more than ten milligrams of delta-9 tetrahydrocannabinol;

(2) more than 200 milligrams of cannabidiol, cannabigerol, cannabinol, or

cannabichromene;

(3) more than the established limit of any other cannabinoid authorized by the office;

or

(4) any combination of those cannabinoids that exceeds the identified amounts for the

applicable product category.

deleted text begin

(g)
deleted text end
new text begin
(h)
new text end
Edible cannabis products and lower-potency hemp edibles containing more than

a single serving must be prepackaged
deleted text begin
or placed at the final point of sale
deleted text end
in packaging or a

container that is resealable.