Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hemp Wholesalers topic
No spam. Unsubscribe anytime.
Committee considers bill to close wholesaler licensing gap for low‑potency hemp beverages
Summary
Representatives and industry witnesses debated House File 17-35, a proposal to allow certain wholesalers to continue distributing low-potency hemp-derived THC beverages. The committee adopted a technical A1 amendment and laid the bill over for further stakeholder negotiation.
House File 17-35, carried by Representative West, was presented to the Minnesota House Commerce Committee as an attempt to resolve a perceived licensing gap that prevents some wholesalers from lawfully distributing low‑potency hemp-derived THC beverages under the incoming cannabis licensing framework.
Representative West said the draft is an initial attempt to fix a gap for wholesalers who currently sell federally legal, hemp-derived THC beverages but could face licensure ambiguity in the new regime. "If a wholesaler only wants to sell and wholesale low potency hemp edible products, they don't have that same option," said Brant Irwin, president of the Minnesota Beer Wholesalers Association, who testified in support.
The hearing drew multiple industry voices with differing views. Joel Carlson of the Minnesota Wine and Spirit Wholesalers supported the bill as written; Carol Moss, a cannabis industry practitioner, opposed the bill in its current form and argued it would unfairly privilege liquor wholesalers and create financial barriers for existing hemp wholesalers. Mike Borger Pepping and Robert Smith, wholesalers with hemp experience, said the bill as drafted could exclude non-liquor distributors and omit compliance requirements that currently apply to cannabis wholesalers.
Representative West moved and the committee adopted the A1 amendment, which struck language requiring multiple signatures for corporate applicants — a change the Office of Cannabis Management supported as a technical simplification. Members discussed multiple stakeholder concerns and Representative West said he would continue work with interested parties so "all stakeholders are happy." The bill was laid over for possible inclusion to allow additional negotiation among wholesalers, the Office of Cannabis Management and legislators.
Lawmakers noted the issue's timeline is connected to the statutory transition of hemp regulation from Chapter 152 into the Chapter 342 framework and said stakeholders want clarity before the licensing regime moves forward.
