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.
📌 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.
📊 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
📰 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.