SF 4540

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/27/2026 09:05 a.m.

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) deleted text begin Any person deleted text end new text begin A license
holder new text end 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 deleted text begin first deleted text end new text begin apply for and new text end 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 new text begin a new text end 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) deleted text begin The deleted text end new text begin An new text end edible cannabinoid product handler endorsement deleted text begin must prohibit deleted text end new text begin prohibits new text end 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. deleted text begin This deleted text end new text begin The new text end limitation new text begin in this paragraph new text end does not apply to the manufacture
of lower-potency hemp edibles.

new text begin (e) An edible cannabinoid product handler 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 manufacturers;
new text end

new text begin (4) lower-potency hemp edible manufacturers; and
new text end

new text begin (5) medical cannabis combination businesses.
new text end

new text begin (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.
new text end

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 new text begin or intends
to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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 new text begin or intends to sell new text end 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.

new text begin (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.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end 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.

deleted text begin (d) deleted text end new text begin (e) new text end 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.

deleted text begin (e) deleted text end new text begin (f) new text end 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 deleted text begin :
deleted text end

deleted text begin (1) the form of the licensee's legal business structure converts or changes to a different
type of legal business structure; or
deleted text end

deleted text begin (2) deleted text end the deleted text begin licensee deleted text end new text begin license holder new text end 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.

deleted text begin (a) deleted text end 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.

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

Sec. 5.

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

Subd. 5.

Civil and regulatory offenses; disqualifications.

new text begin (a) new text end 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.

new text begin (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:
new text end

new text begin (1) occurred as a result of a mistake made in good faith;
new text end

new text begin (2) did not involve gross negligence;
new text end

new text begin (3) did not involve an illegal sale of cannabis; and
new text end

new text begin (4) did not cause harm to the public.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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.

new text begin (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.
new text end

Sec. 7.

new text begin [342.245] ENDORSEMENTS.
new text end

new text begin (a) The office must provide endorsement application forms to applicants.
new text end

new text begin (b) The office may deny an endorsement application if:
new text end

new text begin (1) the license holder has previously had an endorsement suspended, revoked, or canceled
by the office within the last five years;
new text end

new text begin (2) the license holder owes outstanding fines to the office for violations; or
new text end

new text begin (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.
new text end

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

new text begin (d) The office must align the term and renewal period for an endorsement with the term
and renewal period of the applicant's license.
new text end

Sec. 8.

Minnesota Statutes 2024, section 342.25, 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 cultivation of cannabis deleted text end new text begin seeking to cultivate cannabis 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 cultivation
endorsement new text end .

new text begin (b) A cannabis cultivation 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 cultivators; and
new text end

new text begin (4) medical cannabis combination businesses.
new text end

Sec. 9.

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

Subd. 2.

Cultivation records.

A business deleted text begin licensed or authorized to cultivate cannabis deleted text end new text begin
with a cannabis cultivation endorsement new text end 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. deleted text begin The deleted text end new text begin A new text end cultivation record must include the quantity and
timing, deleted text begin where deleted text end new text begin if new text end 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.
deleted text begin The deleted text end new text begin A new text end cannabis business must deleted text begin present deleted text end new text begin provide new text end 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 deleted text begin licensed or authorized
to cultivate cannabis deleted text end new text begin with a cannabis cultivation endorsement new text end 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 deleted text begin licensed or authorized to cultivate cannabis deleted text end new text begin with
a cannabis cultivation endorsement new text end 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
deleted text begin licensed or authorized to cultivate cannabis deleted text end new text begin with a cannabis cultivation endorsement new text end 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 deleted text begin licensed or authorized to cultivate cannabis deleted text end new text begin with a cannabis cultivation
endorsement new text end 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 deleted text begin licensed or authorized to cultivate cannabis deleted text end new text begin
with a cannabis cultivation endorsement new text end 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 deleted text begin licensed or
authorized to cultivate cannabis deleted text end new text begin with a cannabis cultivation endorsement new text end 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.

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 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 deleted text end new text begin seeking to manufacture cannabis products must apply for
and obtain the applicable endorsement according to subdivisions 3 and 4 new text end .

new text begin (b) An endorsement under subdivisions 3 and 4 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 manufacturers; and
new text end

new text begin (4) medical cannabis combination businesses.
new text end

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 deleted text begin licensed or authorized to manufacture cannabis products deleted text end new text begin with an
endorsement under subdivision 3 or 4 new text end must comply with all applicable packaging, labeling,
and health and safety requirements.

new text begin (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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (d) is effective January 1, 2027.
new text end

Sec. 17.

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

Subd. 3.

new text begin Cannabis new text end extraction and concentration new text begin endorsement, hemp extraction and
concentration endorsement, and creation of artificially derived cannabinoids
endorsement new text end .

(a) A new text begin cannabis new text end business deleted text begin licensed or authorized deleted text end new text begin seeking new text end to manufacture
deleted text begin cannabis products that creates deleted text end cannabis concentrate deleted text begin , hemp concentrate, or artificially derived
cannabinoids deleted text end must new text begin apply for and new text end obtain deleted text begin an deleted text end new text begin a cannabis extraction and concentration
new text end endorsement deleted text begin from the office deleted text end .

new text begin (b) A cannabis business seeking to manufacture hemp concentrate must apply for and
obtain a hemp extraction and concentration endorsement.
new text end

new text begin (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.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end 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 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 deleted text begin manufacturer deleted text end new text begin business with a cannabis
extraction and concentration endorsement, hemp extraction and concentration endorsement,
or creation of artificially derived cannabinoids endorsement new text end may not use a method of
extraction and concentration or a volatile chemical without approval by the office.

deleted text begin (c) deleted text end new text begin (e) new text end 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 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 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 may not use a method of
conversion or a catalyst without approval by the office.

deleted text begin (d) deleted text end new text begin (f) new text end 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 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.