The sky is not falling: how Minnesota is successfully regulating intoxicating hemp

minnesota hemp

California’s recently passed emergency regulation to prohibit any amount of THC in hemp products, even in non-intoxicating CBD, aims to close a loophole created by the Agriculture Improvement Act of 2018—commonly known as the Farm Bill. This law legalized the production and sale of hemp federally but did not address the regulation of intoxicating hemp-derived products. These include compounds like Delta-8 THC, HHC, THC-A, and other novel synthetically-derived intoxicants. The new regulation seeks to curb the proliferation of these products, which are widely sold in liquor stores, gas stations, and smoke shops.

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California’s regulation highlights the pressing challenges states face in the absence of coherent federal guidelines as they try to balance public health and safety with industry innovation and growth. Unfortunately, California’s approach exemplifies arbitrary, panic-driven restrictions—hasty solutions to navigating unclear federal policies. Worse, it likely reflects regulatory capture, where the incumbent cannabis industry successfully lobbied for the government to use its authority to protect its market share from disruption by hemp-derived products. Instead of advancing smart, thoughtful regulation, California’s actions move us further away from the goal of assessing cannabis products, including hemp, based on their actual effects, uses, and risks.

It doesn’t have to be this way. In Minnesota, we’ve taken a different path—one that offers a model for effectively and safely regulating intoxicating hemp-derived products to the benefit of consumers and smaller businesses.

Minnesota’s balanced and thoughtful approach

In contrast to California’s restrictive measures, Minnesota has embraced a more measured and adaptable approach to regulating hemp-derived products. Our framework creates fairness, balance, and shared opportunities across both the hemp-derived market and the adult-use cannabis market. We’ve chosen regulation over prohibition, allowing the industry to grow while safeguarding consumer safety.

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A key aspect of Minnesota’s approach is distinguishing between different types of cannabinoids. The state has wisely banned synthetic intoxicating cannabinoids like HHC and Delta-8 THC, which carry unknown and potentially concerning risks. However, we allow products containing hemp-derived Delta-9 THC, provided they meet stringent labeling, packaging, testing, and advertising requirements. This thoughtful regulation ensures consumers have access to safe, tested products without pushing the industry into the shadows.

Fairness and opportunity in Minnesota’s cannabis market

Minnesota’s approach is not just about consumer protection; it’s about creating opportunities for local businesses. By supporting a regulated hemp-derived market, we’ve fostered a safe and vibrant cannabis industry that has expanded opportunities for local entrepreneurs and businesses like breweries, restaurants, and health and wellness stores. These businesses have embraced the innovation sparked by the integration of hemp-derived products into the broader market.

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Moreover, Minnesota’s framework includes a more stringent potency cap on intoxicating hemp-derived products compared to adult-use cannabis. This ensures a balance between public safety and industry growth, allowing for the creation of innovative products, particularly in the beverage sector, where hemp-derived THC-infused drinks are thriving.

A blueprint for sustainable regulation

While California’s reactionary policy creates uncertainty and stifles innovation, Minnesota’s adaptable and forward-thinking regulations provide a path for long-term sustainability. Our model strikes the right balance between consumer safety and market growth, avoiding the pitfalls of over-regulation that can devastate small businesses and limit consumer choice.

By regulating rather than banning, Minnesota protects both consumers and the industry. Clear guidelines and thoughtful oversight, rather than blanket prohibitions, allow innovation to flourish while ensuring public safety. As other states grapple with hemp regulation complexities, Minnesota stands as a blueprint for how to responsibly and sustainably regulate intoxicating hemp-derived products.

*This article was submitted by a guest contributor. The author is solely responsible for the contents.

Leili Fatehi Leili Fatehi, a key architect of Minnesota’s cannabis legalization policy, continues to play a key role in shaping the state's emerging cannabis industry through her work as Partner and Principal at Blunt Strategies, the state's first cannabis-specific strategic consulting firm.