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Notice to Unlawful Cannabis Sellers
<br />This notice is to inform you that your current course of action may run afoul of Minnesota law, and
<br />continuing this course of action may result in civil actions and potential criminal prosecution. To avoid
<br />such outcomes, you should immediately cease and desist any plans to engage in the unlicensed sale of
<br />cannabis and cannabis products.
<br />Minnesota Statutes, Chapter 342 (www.revisor.mn.gov/statutes/cite/342) governs Minnesota’s
<br />cannabis market, and empowers OCM to ensure regulatory compliance. Minnesota Statutes, chapter
<br />342.09, subdivision 4 (www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.4) prohibits the retail sale
<br />of cannabis flower and cannabis products “without a license issued under this chapter that authorizes
<br />the sale.” To date the Office of Cannabis Management has not issued any retail, or other, cannabis
<br />licenses. As such, your plan to sell cannabis in a retail setting at this date would be in flagrant violation
<br />of the law. Be aware that under Minnesota Statutes, 342.09, subdivision 6
<br />(www.revisor.mn.gov/statutes/cite/342.09#stat.342.09.6), OCM may assess fines in excess of a
<br />$1,000,000 for violations of this law.
<br />Likewise, under Minnesota Statutes, chapter 342.19 (www.revisor.mn.gov/statutes/cite/342.19), OCM
<br />is empowered to embargo any product that it has “probable cause to believe . . . is being distributed in
<br />violation of this chapter or rules adopted under this chapter[.]” It is believed that products attempted
<br />to be sold at your retail location might be distributed in violation of the law, and would therefore be
<br />subject to embargo by OCM. Under Minnesota Statutes, chapter 342.19, subd. 2
<br />(www.revisor.mn.gov/statutes/cite/342.19#stat.342.19.2), once embargoed OCM “shall release the
<br />cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency
<br />hemp edible, or hemp-derived consumer product when this chapter and rules adopted under this
<br />chapter have been complied with or the item is found not to be in violation of this chapter or rules
<br />adopted under this chapter.”
<br />While Minnesota has legalized the sale of adult-use of cannabis flower, cannabis products, lower-potency
<br />hemp edibles, or hemp-derived consumer products, the legislature did add new statutory provisions,
<br />Minnesota Statutes, chapter 152.0264 (www.revisor.mn.gov/statutes/cite/152.0264), making illegal the
<br />unlawful sale of cannabis. As there are not yet any licenses issued by OCM for the cultivation,
<br />manufacture, wholesale, transportation, or retail of cannabis, any sales of cannabis products in excess of
<br />the limits in 152.0264 is illegal.
<br />If you are only planning to sell cannabinoid products that are derived from hemp, you should ensure that
<br />the sale of those products is consistent with Minnesota Statutes, chapter 151.72
<br />(www.revisor.mn.gov/statutes/cite/151.72), including but not limited to the requirement that your
<br />business be registered with the Commissioner of Health, and that all products are in compliance with the
<br />relevant statutes.
<br />Finally, in addition to the state laws outlined above, please be aware that any retail location must be in
<br />compliance with local government ordinances and zoning requirements.
<br />OCM takes seriously its charge to enforce Minnesota Statutes, Chapter 342, and its responsibility to
<br />ensure a safe and legal cannabis market. In order to avoid the above-described actions, all attempts to
<br />open a cannabis retail dispensary in Minnesota without the appropriate license should be ceased.
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