In August 2023, Governor Tim Walz enacted the Minnesota cannabis statute which legalized the sale and use of cannabis to adults.
Specifically, Minn. Stat. § 342.2 allows a cannabis business with a license or endorsement authorizing the retail sale of cannabis flower, cannabis products and cannabis paraphernalia to sell cannabis paraphernalia.
Cannabis paraphernalia is defined as all equipment, products, and materials of any kind that are knowingly or intentionally used primarily in ingesting and healing or otherwise introducing cannabis flower or cannabis products into the human body.
Based on this law, while a licensed cannabis business may sell cannabis paraphernalia –the statute is silent on whether other businesses can sell cannabis paraphernalia or not. The Office of Cannabis Management admits that other locations for sales is subject for local government to decide. Because Minnesota law is silent on other businesses, that leaves room for cities to regulate this issue.
Recently, tobacco store owners approached the City of Cottage Grove as the City did not allow business owners other than those with a cannabis license to sell cannabis paraphernalia. Tobacco store owners presented a compelling argument that because Minnesota law was silent on whether tobacco stores could sell cannabis paraphernalia it was up to the City of Cottage Grove to make a determination. Other neighboring cities specifically allowed tobacco stores and other retail style establishments to sell cannabis paraphernalia which meant a loss of business for Cottage Grove businesses.
Along with our clients, we worked with the City Attorney’s Office and public safety o address this issue. Ultimately the City Council decided in September 2025 to allow tobacco store owners to sell cannabis paraphernalia.
Specifically, the sale of cannabis paraphernalia in Cottage Grove is allowed at a cannabis retail, and lower potency hemp edible retail and licensed tobacco retailers that meet the requirements of the tobacco ordinance. Only businesses with a tobacco license that have 50% or more of gross sales from tobacco products can sell cannabis paraphernalia.
The new Cottage Grove ordinance on cannabis paraphernalia was effective Saturday, September 20, 2025 and is a significant victory for tobacco store owners in Cottage Grove.
If you are a business owner operating in another city and have questions about that city’s regulations of the sale of cannabis paraphernalia and what options you have, please contact Kathleen Loucks and Christopher Luehr at Lommen Abdo to discuss your options.