As predicted, today at noon, Governor Walz will be signing into law, the Recreational Cannabis bill. What that means for the off sale retailer is BIG NEWS! Starting tomorrow, May 31st, liquor stores will be legally allowed to sell all low potency hemp derived THC products. Yes, all of the hemp derived beverages, gummies and other items will be allowable for you to sell. There are a couple of points of interest:
- All beverages can be sold from the customer accessible reach in coolers, floor displays or any place you wish to put them.
- All products that are not beverages must be sold from behind a counter or in a locked case.
- All customers that are purchasing these products must show a proper and approved ID. We strongly encourage you all to follow this one as our concern is the random compliance checks that will happen with these new products. We do not know how these compliance checks will happen but we are assuming that they will be similar to the alcohol and tobacco checks you are already subject to.
- You will be responsible for collecting a 10% sales tax on these new products plus local sales tax as well. This will begin on July 1, 2023.
- There will be a massive influx of products not just from Minnesota producers but also from out of state. Labeling requirements and proper dosage requirements have been in place since last July so we can only assume these will remain.
- Please go to https://cannabis.mn.gov/business.html for most things you will need. There will be separate licensing requirements and fees to pay as this moves along. The first being October 1st, 2023 where you will be required to register with the Minnesota Department of Health and will eventually be moved to the Office of Cannabis Management. This web page will also allow you to sign up for email updates and alerts which will be critical for you to follow as there will be regulatory and licensing changes throughout the coming months and years.
For on premise retailers: not much changes other than registering with the Department of Health by October 1st, 2023 and the new 10% added sales tax calculation that is explained above. The biggest hurdle we will all have to go through is the liability coverage (for cannabis) that is almost nonexistent here in Minnesota. If you can find the coverage, I have been hearing that it is very expensive and I have also heard that current liability coverage companies are being very strict with their clients as far as how these new products could affect your current coverages. PLEASE check with your liability insurance providers as they will have to navigate you through those waters.
If you have any questions, please call or email. MLBA has been very active in this space and are proud that we are now going to be involved in this low potency hemp derived THC space! Happy selling and please do so responsibly!!!
Tony Chesak
MLBA Executive Director