Minnesota expands cannabis licensing, raises hemp THC limits in regulatory update

State adds new license category and boosts allowable hemp THC as market enters second year of retail operations.

FILE — statehouse · B.D. Gilfry / CC BY-SA 2.0

Minnesota has tweaked its cannabis regulatory framework to introduce a new license category and raise permissible THC levels for hemp products, according to MJBizDaily. The moves follow the governor's May 28 signing of a cannabis omnibus bill and House passage of a related licensing measure on May 17, signaling ongoing legislative refinement of the state's year-old recreational market.

The timing aligns with rapid expansion on the ground: Minnesota has moved from first retail openings in April 2026 through $50 million in cumulative sales by early June, with May alone generating $17.6 million. However, growth has surfaced bottlenecks—a testing lab closure in mid-June and reported backlogs among retailers suggest compliance infrastructure may be straining under volume.

Stakeholders should monitor how the new license category and hemp rules reshape supply and competition. Ongoing municipal tensions (Osseo pushback documented in July) and regulator outreach (Mankato Q&A in July) suggest local implementation remains contested even as state law expands.