Minnesota Cannabis Legalization and the Significance of Words
July 14, 2023You probably already know that cannabis was legalized in Minnesota in 2023. Opening a cannabis business is not as simple as putting up a sign and stocking inventory. There are a number of things you should know if you plan to get into a cannabis business and we’re going to address some of those in this post.
First, let’s be clear about the language we use because it can get confusing and statutory definitions are very important in this law. We are often asked what the difference is between hemp and marijuana. And where does “cannabis” fit in this discussion?
Scientifically speaking, hemp and marijuana are the same plant – cannabis. Various federal and state laws allowing for production of hemp, however, have created a distinction between marijuana and hemp – a hemp plant has less than .3% THC. Any cannabis plant that has a concentration of more than .3% THC for most legal purposes is marijuana. Yet both hemp and marijuana are the same cannabis plant.
The word “marijuana,” however, is rooted in racism (if you are interested in learning more, read Smoke Signals by Martin A. Lee). In fact, the prohibition on cannabis (which is the term we will use from here on out) is also rooted in racism. Harry Anslinger, the first commissioner of the U.S. Treasury Department’s Federal Bureau of Narcotics pushed hard for complete prohibition of cannabis. He is credited with making racist statements in his effort to ban cannabis by stirring up fear among white voters, including: “There are 100,000 total marijuana smokers in the US, and most are Negroes, Hispanics, Filipinos and entertainers. Their Satanic music, jazz and swing result from marijuana use. This marijuana causes white women to seek sexual relations with Negroes, entertainers and any others.” He also began to refer to cannabis as ‘marijuana,’ adopting the Spanish-sounding word (and pronouncing it mari-huana) to further instill a sense that cannabis was for “them” and not “us.”
HEMP VS. CANNABIS WHAT’S LEGAL IN MINNESOTA
Minnesota chose to use the word “cannabis” for cannabis plants with over .3% THC and “hemp” for cannabis plants with a concentration of .3% THC or less to avoid giving further credence to prohibition’s racist past. So forget marijuana for purposes of opening a cannabis business. (We are not saying that using the word “marijuana” is necessarily racist in and of itself, but it certainly can be depending on context.)
Currently, in Minnesota, you cannot open a ‘cannabis’ business but you can open a hemp business that produces and/or sells edible products containing THC so long as the THC is derived from hemp plants. Fortunately, at this point, it is fairly easy to open a hemp edible business. There are, however, a number of restrictions and requirements you have to be aware of (e.g., packaging requirements, labeling requirements, total THC restrictions, age verification, etc.), if you want to open any sort of cannabis business in Minnesota any time soon, it has to be a hemp business. You would operate under Minn. Stat. 151.72, which allows for the sale of products containing hemp-derived THC of up to 5mg per serving.
LAWYERS WHO UNDERSTAND YOUR BUSINESS NEEDS
As you have read, Minnesota cannabis legalization is complicated. Before getting into the business, it is important you review that statute and discuss questions with a lawyer that has been working in the cannabis industry for more than just a few months. And keep in mind that sellers of THC products must register with the Department of Health by October 1, 2023 (and pay a 10% sales tax on hemp-derived edible products). If you have any questions about opening a hemp business, please reach out to us at 612-259-4806.