Adult-use cannabis legalization: What employers and employees need to know about workplace issues.
The legislation creates the framework for adult-use cannabis in Minnesota and establishes a new Office of Cannabis Management, which will regulate cannabis (including for the adult-use market, the Medical Cannabis Program, and for lower-potency hemp edibles) and issue licenses and develop regulations outlining how and when businesses can participate in the industry.
- Go to the Legislation (Chapter 63, HF100).
- The regulatory framework will take time to develop and will require input from communities throughout the state. More information for businesses interested in participating in Minnesota’s adult-use, medical and lower-potency hemp edible markets will be posted on this website when available.
- The legislation proposes that retail sales for adult use cannabis in Minnesota begin in the first quarter of 2025.
- Effective Aug. 1, 2023, the legislation allows Minnesotans 21 and older to possess and use certain amounts of cannabis and cannabis products. Cannabis is still illegal on federal property.
- The legislation allows adults age 21 and older to possess or transport up to 2 ounces of cannabis flower, 8 grams of concentrate and 800 milligrams of edible product (including low-potency hemp-derived product). An adult may also possess up to two pounds of cannabis flower in a private residence.
- People 21 and older can grow a limited amount of cannabis at home.
- The tax on cannabis product sales will be 10% in addition to state and local sales taxes. Local governments will not collect an additional cannabis-specific tax. Learn more at the Department of Revenue's webpage on Cannabis Tax.
- Minnesota continues to have a Medical Cannabis Program, which will move from the Minnesota Department of Health to the Office of Cannabis Management effective March 1, 2025.
- Medical cannabis product sales are not taxed.
- Hemp-derived cannabinoid product will continue to be sold. Regulation of these products will move to the Minnesota Department of Health, and then transfer to the Office of Cannabis Management on March 1, 2025.
Status of Minnesota’s Hemp Program
Minnesota’s Hemp Program will remain. Hemp production and the processing of hemp plants and plant parts harvested from production fields will continue to be regulated by Minnesota Department of Agriculture (MDA). The passage of adult-use cannabis in Minnesota does not change those hemp regulations. Producers will continue to need an annual license from MDA to grow hemp or process grain, fiber, or raw hemp flower in the state.