Walz extends out-of-state testing for hemp THC products
Gov. Tim Walz has extended permission for hemp THC products to be tested by out-of-state laboratories through May 2027. Lawmakers are meanwhile weighing broader changes to let businesses operate across medical, adult-use and hemp markets — a shift that comes as the Office of Cannabis Management estimates potential market capacity at about 2 million square feet versus roughly 400,000 today — while tribes and operators warn frequent rule changes jeopardize stability and investment.
📊 Relevant Data
In Minnesota, more than one-third of adults (between 30% and 40%) may qualify for social equity cannabis business licenses, based on criteria aimed at those harmed by past cannabis criminalization.
More than one-third of adults may qualify for social equity cannabis licenses — Minnesota Reformer
Nationally, more than 80% of cannabis business owners are White, despite equity programs designed to increase diversity in the industry.
2026 Cannabis Industry Statistics — Flowhub
Minnesota has signed cannabis compacts with four Native American tribes, including White Earth Nation, Mille Lacs Band of Ojibwe, Prairie Island Indian Community, and another, allowing them off-reservation market access.
Governor Walz signs Tribal-state cannabis compact with Mille Lacs Band of Ojibwe — MN.gov
Hemp-derived cannabis products generated more than $11.5 million in sales tax revenue in Minnesota in 2024.
US government funding bill could decimate MN's THC industry, strip millions in tax revenue — YouTube (FOX 9 Minneapolis-St. Paul)
As of January 2026, 118 cannabis business licenses were issued in Minnesota, with more than half (55%) issued to businesses qualifying under social equity provisions.
Office of Cannabis Management launches market dashboard — MN.gov
📌 Key Facts
- Lawmakers are considering a broader package of cannabis and hemp regulatory changes intended to make it easier for businesses to operate across medical, adult‑use and hemp markets — an effort that goes beyond the previously reported lab‑testing issue.
- The Minnesota Office of Cannabis Management estimates the state market could support about 2 million square feet of cannabis cultivation, compared with roughly 400,000 square feet today, and says medical cannabis firms control at least 30% of current capacity.
- Native American tribes, including the Prairie Island Indian Community, are urging lawmakers to pause additional rule changes for a couple of years to let the new market stabilize, warning that constant shifts jeopardize a 'robust and competitive market.'
- Operators such as Minny Grown in Cannon Falls — which have already invested in shifting from hemp to adult‑use cannabis — say the ever‑shifting regulatory structure makes planning and investment difficult.
- Sen. Nick Frentz warned frequent legislative changes send the message that lawmakers may keep rewriting the rules year after year, effectively forcing businesses to aim at a moving target.
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Lawmakers are now considering a broader package of cannabis and hemp regulatory changes that would make it easier for businesses to operate across medical, adult‑use, and hemp markets, beyond the previously reported lab‑testing issue.
- The Minnesota Office of Cannabis Management estimates the state market can support about 2 million square feet of cannabis cultivation, versus roughly 400,000 square feet today, with medical cannabis firms controlling at least 30% of that capacity.
- Native American tribes, including the Prairie Island Indian Community, are asking lawmakers to hold off on more rule changes for a couple of years to let the new market stabilize, warning that constant shifts jeopardize a 'robust and competitive market.'
- Operators like Minny Grown in Cannon Falls, which have already sunk money into shifting from hemp to adult‑use cannabis, say the ever‑shifting regulatory structure makes planning and investment difficult.
- Sen. Nick Frentz publicly warned that frequent changes send a message that the Legislature may keep rewriting the rules year after year, effectively forcing businesses to aim at a moving target.