Businesses cry foul over new THC shipping rules
Minnesota will soon require licensing for low-potency THC businesses to ship products within state limits – a regulation they say puts them at a disadvantage to other states. FOX 9’s Corin Hoggard explains.
CANNON FALLS, Minn. (FOX 9) – Minnesota’s low-potency THC businesses are facing new challenges with upcoming state licensing rules.
Minnesota’s new licensing rules
What we know:
Minnesota will soon require licensing for businesses dealing with low-potency THC products. This change will prohibit these businesses from shipping products directly to people within the state.
Local businesses, like Minny Grown, are concerned about losing a significant portion of their sales.
Zach Rohr, from Minny Grown, said, “It would have a huge effect on our business. I mean, we probably lose about 20% of our sales overnight.”
The backstory:
THC manufacturers and retailers across Minnesota are just learning about these new restrictions.
Many of them rely on shipping products to rural communities where local retailers are scarce.
David Mendolia from St. Paul Cannabis highlighted the issue, noting that these areas often lack other options. Minnesota licensees can also get a delivery endorsement.
“So that means we could still deliver the product ourselves locally, but again that’s not really the niche consumer that’s accessing shipping in Minnesota,” Mendolia said.
Challenges for local businesses
What they’re saying:
A spokesperson for the Office of Cannabis Management explained that the rule aims to prevent sales to minors and intoxicated individuals.
However, some businesses already use age verification for deliveries, and argue that the state’s rules won’t affect out-of-state competitors.
Rohr questioned, “How can the OCM and the state of Minnesota regulate a company sitting in Wisconsin or South Dakota who wants to ship these products to someone’s front door in Minneapolis?”
What you can do:
Cannabis attorneys are working to convince the Office of Cannabis Management to reconsider the rule.
Susan Burns from SBurns Legal explained that business owners might need to litigate to prevent enforcement or defend themselves if enforcement occurs.
What’s next:
Businesses must apply for their hemp licenses by the end of the month, and the shipping restrictions will take effect once they receive their licenses.
What we don’t know:
It remains unclear how Minnesota plans to address the competition from out-of-state businesses that can continue shipping THC products into the state.
The Source: FOX 9’s Corin Hoggard spoke with multiple sources for information contained in this story.
