HF 773

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/30/2023 08:36pm

A bill for an act
relating to cannabis; providing for the regulation of the concentration and
conversion of cannabinoids derived from hemp; providing for regulation of the
transportation and testing of concentrated cannabinoids and artificially derived
cannabinoids derived from hemp; providing for the licensing of edible cannabinoid
product manufacturers and distributors; providing for regulation of the
transportation, testing, and labeling of hemp-derived consumer products and edible
cannabinoid products; providing for the regulation of the sale of hemp-derived
consumer products and edible cannabinoid products; providing for enforcement
of regulations; establishing guidelines for local licensing of certain retailers;
establishing a gross receipts tax on edible cannabinoid products; establishing
criminal penalties; authorizing exclusive liquor stores to sell certain products;
requiring reports; appropriating money; amending Minnesota Statutes 2022, sections
13.3806, by adding a subdivision; 18K.02, subdivision 5, by adding subdivisions;
18K.03, by adding a subdivision; 18K.04, subdivisions 1, 4, by adding a
subdivision; 18K.06; 34A.01, subdivision 4; 144.99, subdivision 1; 152.027, by
adding a subdivision; 181.938, subdivision 2; 297A.99, by adding a subdivision;
340A.412, subdivision 14; proposing coding for new law in Minnesota Statutes,
chapters 18K; 152; 295; repealing Minnesota Statutes 2022, section 151.72.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2022, section 18K.02, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Artificially derived cannabinoid. new text end

new text begin "Artificially derived cannabinoid" means
a cannabinoid extracted from hemp plants or hemp plant parts with a chemical makeup that
is changed after extraction to create a different cannabinoid or other chemical compound
by applying a catalyst other than heat or light. Artificially derived cannabinoid includes but
is not limited to any tetrahydrocannabinol created from cannabidiol. Artificially derived
cannabinoid does not include a product containing cannabinoids as defined in section 152.50,
subdivision 15.
new text end

Sec. 2.

Minnesota Statutes 2022, section 18K.02, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Concentrated cannabinoid. new text end

new text begin "Concentrated cannabinoid" means a cannabinoid
extracted from hemp plants or hemp plant parts that is either isolated from other substances
and exists in a pure form or is present in a mixture in an amount greater than the percentage
that naturally occurs in the hemp plant or hemp plant parts. Concentrated cannabinoid does
not include a product containing cannabinoids as defined in section 152.50, subdivision 15.
new text end

Sec. 3.

Minnesota Statutes 2022, section 18K.02, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Conversion of cannabinoids or convert cannabinoids. new text end

new text begin "Conversion of
cannabinoids" or "convert cannabinoids" means the process of creating artificially derived
cannabinoids.
new text end

Sec. 4.

Minnesota Statutes 2022, section 18K.02, subdivision 5, is amended to read:

Subd. 5.

Processing.

"Processing" means rendering by refinement hemp plants or hemp
plant parts from their natural or original state after harvest. Processing includes but is not
limited to decortication, devitalization, chopping, crushing, extraction, new text begin conversion of
cannabinoids, new text end and packaging. Processing does not include typical farm operations such as
sorting, grading, baling, and harvesting.

Sec. 5.

Minnesota Statutes 2022, section 18K.03, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Possession of concentrated cannabinoids or artificially derived
cannabinoids. new text end

new text begin (a) Notwithstanding the provisions of chapter 152 or any other law to the
contrary, a licensee may possess and transport concentrated cannabinoids or artificially
derived cannabinoids provided that the licensee:
new text end

new text begin (1) is authorized to concentrate or convert cannabinoids;
new text end

new text begin (2) complies with an approved plan to secure, store, and dispose of concentrated
cannabinoids or artificially derived cannabinoids;
new text end

new text begin (3) complies with section 18K.045 and any applicable rules regarding the transportation
of concentrated cannabinoids or artificially derived cannabinoids; and
new text end

new text begin (4) complies with any additional requirements or rules adopted by the commissioner.
new text end

new text begin (b) Notwithstanding the provisions of chapter 152 or any other law to the contrary, an
approved laboratory may possess concentrated cannabinoids or artificially derived
cannabinoids during the period that the laboratory is approved by the commissioner to
perform testing on concentrated cannabinoids or artificially derived cannabinoids and the
laboratory maintains any required accreditation.
new text end

new text begin (c) A licensee or laboratory that possesses concentrated cannabinoids or artificially
derived cannabinoids in violation of this subdivision may be subject to any applicable
licensing penalty, criminal penalty, or both.
new text end

Sec. 6.

Minnesota Statutes 2022, section 18K.04, subdivision 1, is amended to read:

Subdivision 1.

Requirement; issuance; presumption.

(a) A person must obtain a license
from the commissioner before (1) growing industrial hemp for commercial or research
purposes, and (2) before processing industrial hemp for commercial purposes.

(b) To obtain a license under paragraph (a), a person must apply to the commissioner
in the form prescribed by the commissioner and must pay the annual registration and
inspection fee established by the commissioner in accordance with section 16A.1285,
subdivision 2.

(c) For a license to grow industrial hemp for commercial or research purposes, the license
application must include the name and address of the applicant and the legal description of
the land area or areas where industrial hemp will be grown by the applicant and any other
information required under Code of Federal Regulations, title 7, part 990.

(d) For a license to process industrial hemp for commercial purposes, the license
application must include the name and address of the applicant, the legal description of the
processing location, new text begin whether the applicant intends to concentrate cannabinoids or convert
cannabinoids into any other type of cannabinoid or other chemical compound, new text end and any other
information required by the commissioner.

(e) A licensee is responsible for compliance with the license requirements irrespective
of the acts or omissions of an authorized representative acting on behalf of the licensee.

(f) When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid until
December 31 of the year of application.

(g) A person licensed under paragraph (a) to grow industrial hemp is presumed to be
growing industrial hemp for commercial or research purposes.

new text begin (h) The commissioner may issue an applicant a full license to grow and process industrial
hemp, including an authorization to concentrate cannabinoids or convert cannabinoids, or
may issue an applicant a partial license that permits only certain specified actions.
new text end

Sec. 7.

Minnesota Statutes 2022, section 18K.04, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Concentration or conversion of cannabinoids. new text end

new text begin (a) An applicant or a licensee
must notify the commissioner if the applicant or licensee intends to concentrate cannabinoids
or convert extracted cannabinoids into any other type of cannabinoid or other chemical
compound, including but not limited to the concentration of any tetrahydrocannabinol or
conversion of cannabidiol into any tetrahydrocannabinol. A licensee may not concentrate
or convert cannabinoids without the express permission of the commissioner.
new text end

new text begin (b) An applicant or a licensee seeking permission to convert cannabinoids must disclose:
new text end

new text begin (1) the method of conversion that will be used, including any specific catalysts that will
be employed;
new text end

new text begin (2) the manner in which artificially derived cannabinoids will be secured and stored;
new text end

new text begin (3) the molecular nomenclature of all cannabinoids or other chemical compound that
will be created;
new text end

new text begin (4) the amount of each cannabinoid or other chemical compound that the applicant or
licensee expects to hold in storage at any time;
new text end

new text begin (5) a plan for the disposal and destruction of any waste products generated in the
conversion process, including any tetrahydrocannabinol or other artificially derived
cannabinoids that are contaminated or that will not be used for commercial or research
purposes; and
new text end

new text begin (6) any other information required by the commissioner.
new text end

new text begin (c) An applicant or a licensee may identify information provided pursuant to paragraph
(b), clause (1), as a trade secret.
new text end

new text begin (d) An applicant or licensee seeking permission to concentrate cannabinoids must
disclose:
new text end

new text begin (1) the manner in which concentrated cannabinoids will be secured and stored;
new text end

new text begin (2) the amount of each cannabinoid that the licensee expects to hold in storage at any
time; and
new text end

new text begin (3) any other information required by the commissioner.
new text end

new text begin (e) On a schedule and in the form and manner established by the commissioner, a licensee
must notify the commissioner of:
new text end

new text begin (1) the amount of each cannabinoid or other chemical compound that the licensee
concentrated or created during the reporting period;
new text end

new text begin (2) the amount of each concentrated cannabinoid or artificially derived cannabinoid
being stored by the licensee; and
new text end

new text begin (3) the amount of concentrated cannabinoid or artificially derived cannabinoid, including
any tetrahydrocannabinol, that the licensee disposed of or destroyed.
new text end

Sec. 8.

Minnesota Statutes 2022, section 18K.04, subdivision 4, is amended to read:

Subd. 4.

Industrial hemp licensing data classification.

(a) In addition to data classified
pursuant to section 13.41, the following data collected, created, or maintained by the
commissioner under this chapter is classified as private data, as defined in section 13.02,
subdivision 12, or nonpublic data, as defined in section 13.02, subdivision 9:

(1) nondesignated addresses provided by licensees and applicants; deleted text begin and
deleted text end

(2) data that identify the specific locations where licensees and applicants grow or
process, or will grow or process, industrial hemp, including but not limited to legal
descriptions, street addresses, geospatial locations, maps, and property boundaries and
dimensions new text begin ; and
new text end

new text begin (3) information provided pursuant to subdivision 1a that is identified as a trade secret,
except that the commissioner is authorized to provide a list of all catalysts identified as
being used to convert cannabinoids to approved independent laboratories in order to facilitate
testing new text end .

(b) The commissioner may disclose data classified as private data or nonpublic data
under this subdivision if the commissioner determines that there is a substantive threat to
human health or safety or to the environment, or to aid in the law enforcement process.

Sec. 9.

new text begin [18K.045] TRANSPORTATION.
new text end

new text begin (a) A licensee or any other person transporting industrial hemp in a form other than as
a concentrated cannabinoid or artificially derived cannabinoid must comply with rules
adopted by the commissioner.
new text end

new text begin (b) A licensee authorized to concentrate cannabinoids or convert cannabinoids may
transport concentrated cannabinoids or artificially derived cannabinoids on public roadways
provided that:
new text end

new text begin (1) all concentrated cannabinoids or artificially derived cannabinoids are packaged in
tamper-evident containers that are not visible or recognizable from outside the transporting
vehicle;
new text end

new text begin (2) the licensee has a shipping manifest in the licensee's possession that describes the
contents of all tamper-evident containers, discloses all concentrated cannabinoids or
artificially derived cannabinoids, and identifies all other items being transported;
new text end

new text begin (3) the transporting vehicle does not bear any markings to indicate that the vehicle
contains industrial hemp, cannabinoids, or any other form of cannabis and does not bear
the name or logo of the licensee;
new text end

new text begin (4) all departures, arrivals, and stops are appropriately documented;
new text end

new text begin (5) at least two designated employees staff any vehicle used to transport concentrated
cannabinoids or artificially derived cannabinoids and at least one employee remains with
the vehicle at all times that the vehicle is transporting concentrated cannabinoids or artificially
derived cannabinoids;
new text end

new text begin (6) no person other than a designated employee enters a vehicle at any time that the
vehicle is transporting concentrated cannabinoids or artificially derived cannabinoids except
that a licensed manufacturer or approved laboratory receiving a shipment may assist in
unloading concentrated cannabinoids or artificially derived cannabinoids from a vehicle;
and
new text end

new text begin (7) the licensee complies with any other rules adopted by the commissioner regarding
the transportation of concentrated cannabinoids or artificially derived cannabinoids.
new text end

new text begin (c) Notwithstanding section 221.025, transportation of concentrated cannabinoids or
artificially derived cannabinoids by a person or entity other than a licensee may only be
performed by a motor carrier of property that is registered with the commissioner of
transportation. A motor carrier of property that is transporting concentrated cannabinoids
or artificially derived cannabinoids must comply with the requirements of paragraph (b).
new text end

Sec. 10.

new text begin [18K.046] TESTING.
new text end

new text begin (a) Testing of industrial hemp other than a concentrated cannabinoid or an artificially
derived cannabinoid must comply with rules adopted by the commissioner.
new text end

new text begin (b) Testing of a concentrated cannabinoid or an artificially derived cannabinoid must
comply with rules adopted by the commissioner and, at a minimum, must:
new text end

new text begin (1) identify contaminants, including residual solvents, foreign material, microbiological
contaminants, heavy metals, pesticide residue, and mycotoxins; and
new text end

new text begin (2) provide a cannabinoid profile that identifies and quantifies the cannabinoids in a
testing sample.
new text end

new text begin (c) The commissioner may require that testing is performed by an independent laboratory
and shall establish a process for laboratory approval. At a minimum, a laboratory must
operate formal management systems under the International Organization for Standardization
to qualify for approval.
new text end

new text begin (d) A licensee must disclose all known information regarding pesticides, fertilizers,
solvents, or other foreign materials applied to industrial hemp or added to industrial hemp
during any production or processing stages. Disclosure must be made to any entity performing
testing or sampling and, upon request, to the commissioner. Disclosure must include all
information known to the licensee regardless of whether the application or addition was
made intentionally or accidentally or by the licensee or any other person or entity.
new text end

new text begin (e) A licensee must allow a sampling agent, the commissioner, or the commissioner's
designee to collect regulatory samples of industrial hemp, including concentrated
cannabinoids and artificially derived cannabinoids.
new text end

new text begin (f) The commissioner shall consult with the commissioner of health to determine the
contaminants that must be identified in testing and to establish standards for allowable levels
of contaminants in concentrated cannabinoids and artificially derived cannabinoids.
new text end

Sec. 11.

new text begin [18K.047] MONITORING SYSTEM.
new text end

new text begin (a) The commissioner shall coordinate with the commissioner of health to identify an
approved monitoring system for the integrated tracking, inventory, and verification of
industrial hemp, including concentrated cannabinoids, as defined in section 18K.02,
subdivision 3b; artificially derived cannabinoids, as defined in section 18K.02, subdivision
3a; and edible cannabinoid products, as defined in section 152.50, subdivision 7.
new text end

new text begin (b) A licensee must use the monitoring system to track all industrial hemp, including
concentrated cannabinoids and artificially derived cannabinoids, and edible cannabinoid
products in the licensee's possession, to the point of disposal, transfer, or sale. For the
purposes of this section, a licensee possesses the industrial hemp, including concentrated
cannabinoids and artificially derived cannabinoids, and edible cannabinoid products that
the licensee cultivates from seed or immature plant, converts from any other cannabinoid,
receives from another licensee, manufactures, or receives from an entity licensed to
manufacture or distribute products containing cannabinoids derived from industrial hemp.
This paragraph does not apply to products lawfully purchased by a licensee for personal
use.
new text end

Sec. 12.

Minnesota Statutes 2022, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, processing,
and licensing of industrial hemp. deleted text begin Notwithstanding section 14.125, the commissioner's
authority to adopt these rules expires June 30, 2022.
deleted text end

(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

new text begin (d) The commissioner may adopt rules governing artificially derived cannabinoids,
including the methods of conversion and the storage, transportation, testing, monitoring,
and disposal of artificially derived cannabinoids. Rules governing artificially derived
cannabinoids for which notice is published in the State Register before July 1, 2024, may
be adopted using the expedited rulemaking process in section 14.389.
new text end

ARTICLE 2

HEALTH POLICY

Section 1.

new text begin [152.50] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of sections 152.50 to 152.65, the terms
defined in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Artificially derived cannabinoid. new text end

new text begin "Artificially derived cannabinoid" has the
meaning given in section 18K.02, subdivision 3a.
new text end

new text begin Subd. 3. new text end

new text begin Batch. new text end

new text begin "Batch" means a specific quantity of a specific edible cannabinoid
product that is manufactured by an edible cannabinoid product manufacturer at the same
time and using the same methods, equipment, and ingredients. A batch is uniform and
intended to meet specifications for identity, strength, purity, and composition, and is
manufactured, numbered, and stored according to a single batch production record executed
and documented during the same cycle of manufacture and produced by a continuous
process.
new text end

new text begin Subd. 4. new text end

new text begin Batch number. new text end

new text begin "Batch number" means a unique numeric or alphanumeric
identifier assigned to a batch of edible cannabinoid products by an edible cannabinoid
product manufacturer.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of health.
new text end

new text begin Subd. 6. new text end

new text begin Concentrated cannabinoid. new text end

new text begin "Concentrated cannabinoid" means a cannabinoid
extracted from hemp plants or hemp plant parts that is either isolated from other substances
and exists in a pure form or is present in a mixture in an amount greater than the percentage
that naturally occurs in the hemp plant or hemp plant parts. Concentrated cannabinoid does
not include a product containing cannabinoids.
new text end

new text begin Subd. 7. new text end

new text begin Edible cannabinoid product. new text end

new text begin "Edible cannabinoid product" means any product
that is:
new text end

new text begin (1) intended to be eaten or consumed as a beverage by humans;
new text end

new text begin (2) contains a cannabinoid in combination with food ingredients or is intended or
generally expected to be added to food ingredients; and
new text end

new text begin (3) is not a drug or medical cannabis product.
new text end

new text begin Subd. 8. new text end

new text begin Hemp-derived consumer product. new text end

new text begin "Hemp-derived consumer product" means
any product intended for human or animal consumption that is harvested from hemp plants
or hemp plant parts or contains cannabinoids extracted from hemp plants or hemp plant
parts. Hemp-derived consumer product does not include edible cannabinoid products or
products for which the United States Food and Drug Administration has issued generally
recognized as safe notices.
new text end

new text begin Subd. 9. new text end

new text begin Hemp plants or hemp plant parts. new text end

new text begin "Hemp plants" or "hemp plant parts" means
any part of the industrial hemp plant, whether growing or not, including the stalk, leaves,
buds, and seeds, but does not include any derivatives, extracts, cannabinoids, isomers, acids,
salts, and salts of isomers that are separated from the plant.
new text end

new text begin Subd. 10. new text end

new text begin Industrial hemp. new text end

new text begin "Industrial hemp" has the meaning given in section 18K.02,
subdivision 3.
new text end

new text begin Subd. 11. new text end

new text begin Label. new text end

new text begin "Label" means a display of written, printed, or graphic matter upon
the immediate container of any product that contains a cannabinoid.
new text end

new text begin Subd. 12. new text end

new text begin Local unit of government. new text end

new text begin "Local unit of government" means a home rule
charter or statutory city, county, town, or other political subdivision.
new text end

new text begin Subd. 13. new text end

new text begin Marijuana. new text end

new text begin "Marijuana" has the meaning given in section 152.01, subdivision
9.
new text end

new text begin Subd. 14. new text end

new text begin Matrix barcode. new text end

new text begin "Matrix barcode" means a code that stores data in a
two-dimensional array of geometrically shaped dark and light cells capable of being read
by the camera of a smartphone or other mobile device.
new text end

new text begin Subd. 15. new text end

new text begin Product containing cannabinoids. new text end

new text begin "Product containing cannabinoids" means
hemp-derived consumer products and edible cannabinoid products.
new text end

Sec. 2.

new text begin [152.51] DUTIES OF COMMISSIONER; INTERAGENCY COOPERATION.
new text end

new text begin Subdivision 1. new text end

new text begin Regulation of cannabinoid products; powers and duties. new text end

new text begin (a) To promote
the public safety and welfare, ensure that consumers have access to relevant information,
and support responsible businesses, the commissioner shall make rules, establish policy,
issue licenses, and take enforcement action to regulate the manufacturing, distribution, and
sale of products containing cannabinoids.
new text end

new text begin (b) The commissioner shall exercise the following powers and duties:
new text end

new text begin (1) establish and regularly update standards for product testing, packaging, marketing,
and labeling;
new text end

new text begin (2) approve cannabinoid product types and identify specific cannabinoids that products
may contain;
new text end

new text begin (3) ensure that products are manufactured using methods and in facilities that meet
appropriate health and safety standards;
new text end

new text begin (4) ensure that artificially derived cannabinoids are stored and disposed of in a secure
manner;
new text end

new text begin (5) ensure that products identified as posing a risk to public health or safety can be
identified and recalled;
new text end

new text begin (6) issue and renew licenses;
new text end

new text begin (7) prevent unauthorized access to products containing cannabinoids by individuals
under 21 years of age;
new text end

new text begin (8) impose and collect civil and administrative penalties;
new text end

new text begin (9) publish such information as may be deemed necessary for the welfare of businesses
that manufacture, distribute, or sell cannabinoid products; employees of those businesses;
and the health and safety of the general public;
new text end

new text begin (10) remain informed regarding developments in laws, policies, and practices affecting
industrial hemp, marijuana, and cannabinoid products;
new text end

new text begin (11) provide reports as required by law; and
new text end

new text begin (12) exercise other powers and authority and perform other duties required of or imposed
upon the commissioner by law.
new text end

new text begin Subd. 2. new text end

new text begin Interagency agreements. new text end

new text begin (a) The commissioner and the commissioner of
agriculture shall enter into interagency agreements to ensure that edible cannabinoid products
are handled, manufactured, and inspected in a manner that is consistent with the relevant
food safety requirements in chapters 28A, 31, and 34A, and associated rules.
new text end

new text begin (b) The commissioner may cooperate and enter into agreements with the commissioners
and directors of other state agencies and departments to promote the beneficial interests of
the state.
new text end

Sec. 3.

new text begin [152.52] RULEMAKING.
new text end

new text begin (a) The commissioner shall adopt rules governing the manufacture, distribution, and
sale of products containing cannabinoids.
new text end

new text begin (b) Rules adopted under paragraph (a) must include but not be limited to provisions
governing:
new text end

new text begin (1) the supervision and inspection of the manufacture, distribution, and retail sale of
products containing cannabinoids;
new text end

new text begin (2) the secure storage and disposal of artificially derived cannabinoids;
new text end

new text begin (3) the testing of products containing cannabinoids;
new text end

new text begin (4) the use of background check results required to approve or deny a license application;
and
new text end

new text begin (5) any other provision or procedure necessary to carry out the purposes of sections
152.50 to 152.65.
new text end

new text begin (c) Rules governing the manufacture, distribution, and sale of products containing
cannabinoids for which notice is published in the State Register before July 1, 2024, may
be adopted using the expedited rulemaking process in section 14.389.
new text end

Sec. 4.

new text begin [152.53] HEMP-DERIVED CONSUMER PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies to the manufacture, marketing, distribution,
and sale of hemp-derived consumer products.
new text end

new text begin Subd. 2. new text end

new text begin Approved cannabinoids. new text end

new text begin (a) Products manufactured, marketed, distributed,
and sold under this section may contain cannabidiol, cannabigerol, or both. Except as
provided in paragraph (c), products may not contain any other cannabinoid unless approved
by the commissioner.
new text end

new text begin (b) The commissioner may approve any cannabinoid and authorize the cannabinoid's
use in manufacturing, marketing, distribution, and sales under this section if the commissioner
determines that the cannabinoid does not impair the human central nervous system; muscles;
or audio, visual, or mental processes.
new text end

new text begin (c) Products manufactured, marketed, distributed, and sold under this section may contain
cannabinoids other than cannabidiol, cannabigerol, or any other cannabinoid approved by
the commissioner provided that the cannabinoids are naturally occurring in hemp plants or
hemp plant parts and the total of all other cannabinoids present in a product does not exceed
one milligram per package.
new text end

new text begin Subd. 3. new text end

new text begin Approved products. new text end

new text begin Products sold to consumers under this section may only
be manufactured, marketed, distributed, intended, or generally expected to be used by
applying the product externally to a part of the body of a human or animal.
new text end

new text begin Subd. 4. new text end

new text begin Testing requirements. new text end

new text begin (a) The commissioner shall establish the types of
cannabinoids and contaminants for which testing must be completed and the acceptable
minimum standards of any contaminant for which testing is required. The commissioner
must make testing requirement information available to the general public and any entity
manufacturing, testing, marketing, distributing, or selling products that contain cannabinoids.
new text end

new text begin (b) A manufacturer of a product regulated under this section must submit representative
samples of each batch of the product to an independent, approved laboratory in order to
certify that the product complies with the standards in this section and established by the
commissioner. Testing must be consistent with generally accepted industry standards for
herbal and botanical substances, and, at a minimum, the testing must determine:
new text end

new text begin (1) if the product contains the amount or percentage of cannabinoids that is stated on
the label of the product;
new text end

new text begin (2) the types and amounts of cannabinoids present in a product for which testing is
required by the commissioner;
new text end

new text begin (3) if the product contains any cannabinoid, other than cannabidiol, cannabigerol, or a
cannabinoid approved by the commissioner, in an amount that exceeds the standard
established in subdivision 2, paragraph (c);
new text end

new text begin (4) if the product contains any contaminants for which testing is required by the
commissioner, including residual solvents, foreign material, microbiological contaminants,
heavy metals, pesticide residue, and mycotoxins in amounts that exceed the acceptable
minimum standards established by the commissioner; and
new text end

new text begin (5) if the product contains any tetrahydrocannabinol and, if so, if the product contains
more than a total of 0.3 percent by weight of all tetrahydrocannabinols.
new text end

new text begin (c) Upon the request of the commissioner, the manufacturer of the product must provide
the commissioner with the results of the testing required in this section.
new text end

new text begin (d) A manufacturer must allow a sampling agent, the commissioner, or the commissioner's
designee to collect regulatory samples of products regulated under this section.
new text end

new text begin (e) A product whose test results are inconsistent with the product's label or show that
the product's contents do not meet the standards established in law or by the commissioner
must not be sold to consumers, except that the commissioner may allow a product to be
sold after being relabeled to be consistent with the test results if the product otherwise
complies with this section.
new text end

new text begin (f) Testing of the industrial hemp from which the cannabinoid was derived, or possession
of a certificate of analysis for such industrial hemp, does not meet the testing requirements
of this section.
new text end

new text begin Subd. 5. new text end

new text begin Labeling. new text end

new text begin (a) A product regulated under this section must bear a label that
contains, at a minimum:
new text end

new text begin (1) the name, address or location, contact phone number, and website of the manufacturer
of the product;
new text end

new text begin (2) the name and address of the independent, accredited laboratory used by the
manufacturer to test the product; and
new text end

new text begin (3) an accurate statement of the amount or percentage of cannabinoids for which testing
is required by the commissioner found in each unit of the product meant to be consumed.
new text end

new text begin (b) The information in paragraph (a) may be provided on an outer package if the
immediate container that holds the product is too small to contain all of the information.
new text end

new text begin (c) The information required in paragraph (a) may be provided through the use of a
scannable barcode or matrix barcode that links to a page on the manufacturer's website if
that page contains all of the information required by this subdivision.
new text end

new text begin (d) The label must also include a statement that the product does not claim to diagnose,
treat, cure, or prevent any disease, does not claim that the product may be used to alter the
structure or function of human or animal bodies, and has not been evaluated or approved
by the United States Food and Drug Administration unless the product has been so approved.
The labeling must not contain any statement, artwork, or design that is inconsistent with
the required statement.
new text end

new text begin (e) The information required by this subdivision must be prominently and conspicuously
placed on the label or displayed on the website in terms that can be easily read and understood
by the consumer.
new text end

new text begin Subd. 6. new text end

new text begin Prohibitions. new text end

new text begin (a) A product sold to consumers under this section must not be
manufactured, marketed, distributed, or intended:
new text end

new text begin (1) for external or internal use in the diagnosis, cure, mitigation, treatment, or prevention
of disease in humans or other animals;
new text end

new text begin (2) to affect the structure or any function of the bodies of humans or other animals;
new text end

new text begin (3) to be consumed by combustion or vaporization of the product and inhalation of
smoke, aerosol, or vapor from the product;
new text end

new text begin (4) to be consumed through chewing, drinking, or swallowing; or
new text end

new text begin (5) to be consumed through injection or application to a mucous membrane or nonintact
skin.
new text end

new text begin (b) A product manufactured, marketed, distributed, or sold to consumers under this
section must not:
new text end

new text begin (1) consist, in whole or in part, of any filthy, putrid, or decomposed substance;
new text end

new text begin (2) have been produced, prepared, packed, or held under unsanitary conditions where
the product may have been rendered injurious to health, or where the product may have
been contaminated with filth;
new text end

new text begin (3) be packaged in a container that is composed, in whole or in part, of any poisonous
or deleterious substance that may render the contents of the product injurious to health;
new text end

new text begin (4) contain any additives or excipients that have been found by the United States Food
and Drug Administration to be unsafe for human or animal consumption;
new text end

new text begin (5) contain a cannabinoid or an amount or percentage of cannabinoids that is different
than the information stated on the label;
new text end

new text begin (6) contain a cannabinoid, other than cannabidiol, cannabigerol, or a cannabinoid
approved by the commissioner, in an amount that exceeds the standard established in
subdivision 2, paragraph (c); or
new text end

new text begin (7) contain any contaminants for which testing is required by the commissioner in
amounts that exceed the acceptable minimum standards established by the commissioner.
new text end

new text begin (c) No product containing any cannabinoid may be sold to any individual who is under
21 years of age.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement; penalties. new text end

new text begin (a) The commissioner may enforce this section under
the relevant provisions of sections 144.989 to 144.993.
new text end

new text begin (b) Notwithstanding section 144.99, subdivision 11, a person who commits any of the
following acts regarding a product regulated under this section is guilty of a gross
misdemeanor:
new text end

new text begin (1) knowingly altering or otherwise falsifying testing results;
new text end

new text begin (2) knowingly providing false information on a product label; or
new text end

new text begin (3) intentionally making a false material statement to the commissioner.
new text end

new text begin (c) Any person who sells a product regulated under this section to a person under 21
years of age, except a sale for no remuneration, is guilty of a misdemeanor. It is an affirmative
defense to a charge under this paragraph if the defendant proves by a preponderance of the
evidence that the defendant reasonably and in good faith relied on proof of age as described
in section 152.64, subdivision 5.
new text end

Sec. 5.

new text begin [152.54] LICENSING AND ENFORCEMENT; EDIBLE CANNABINOID
PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Licenses; types. new text end

new text begin The commissioner shall issue the following types of
licenses:
new text end

new text begin (1) edible cannabinoid product manufacturer licenses; and
new text end

new text begin (2) edible cannabinoid product distributor licenses.
new text end

new text begin Subd. 2. new text end

new text begin Record of retail licensees. new text end

new text begin The commissioner shall maintain a list of the name,
address, trade name, license effective date, and license expiration date of any entity licensed
by a local government to sell edible cannabinoid products. The commissioner shall update
the record to reflect any license suspension, revocation, or cancellation.
new text end

new text begin Subd. 3. new text end

new text begin Fees; renewal; transfer. new text end

new text begin Licenses issued under sections 152.50 to 152.65 must
be renewed annually. Licenses may not be transferred. The commissioner may impose an
annual licensing fee that does not exceed $500.
new text end

new text begin Subd. 4. new text end

new text begin Licensing disqualifications and requirements. new text end

new text begin (a) The commissioner shall,
by rule, establish a list of criminal offenses for which a conviction presumptively disqualifies
a person from receiving or maintaining a license to manufacture or distribute edible
cannabinoid products and may establish a time period after which a conviction may no
longer be used to presumptively disqualify a person. The commissioner must not include a
violation of chapter 152 involving the possession of marijuana or a conviction for a
comparable offense in another jurisdiction on the list of presumptively disqualifying offenses.
new text end

new text begin (b) A person convicted of a presumptively disqualifying offense may submit information
to demonstrate that the person does not pose a risk of harm to any person, will remain law
abiding, and will comply with the provisions of sections 152.50 to 152.65. If the
commissioner determines that the person has submitted sufficient information, the
commissioner may set aside the presumptive disqualification.
new text end

new text begin (c) The commissioner shall, by rule, establish other requirements for license holders or
applicants, including requirements that license holders or applicants must:
new text end

new text begin (1) be 21 years of age or older;
new text end

new text begin (2) have completed an application for licensure or application for renewal and have fully
and truthfully complied with all information requests of the commissioner relating to license
application and renewal;
new text end

new text begin (3) have paid the applicable application or licensing fee; and
new text end

new text begin (4) not be employed by the commissioner or any state agency with regulatory authority
under sections 152.50 to 152.65 or the rules adopted pursuant to those sections.
new text end

new text begin Subd. 5. new text end

new text begin Application contents, process, and fee. new text end

new text begin (a) License applications must be made
in the form and manner required by the commissioner and shall include all information
required by the board.
new text end

new text begin (b) The applicant for a license must submit a completed criminal history records check
consent form, a full set of classifiable fingerprints, and the required fees to the commissioner.
Upon receipt of this information, the commissioner must submit the completed criminal
history records check consent form, full set of classifiable fingerprints, and required fees
to the Bureau of Criminal Apprehension. After receiving this information, the bureau must
conduct a Minnesota criminal history records check of the license applicant. The bureau
may exchange a license applicant's fingerprints with the Federal Bureau of Investigation to
obtain the applicant's national criminal history record information. The bureau must return
the results of the Minnesota and federal criminal history records checks to the commissioner
to determine if the applicant is disqualified under subdivision 4.
new text end

new text begin (c) If the commissioner receives an application that fails to provide the required
information, the commissioner shall issue a deficiency notice to the applicant. The applicant
shall have ten business days from the date of the deficiency notice to submit the required
information. Failure by an applicant to submit all required information will result in the
application being rejected.
new text end

new text begin (d) Within 90 days of receiving a completed application, the commissioner shall issue
the appropriate license or send the applicant a notice of rejection setting forth specific
reasons why the commissioner did not approve the application.
new text end

new text begin (e) The commissioner may charge a nonrefundable fee, not to exceed $200, to cover the
costs associated with reviewing and processing applications.
new text end

new text begin Subd. 6. new text end

new text begin Inspection and enforcement. new text end

new text begin (a) The commissioner may enforce sections
152.50 to 152.65, including enforcement against a retailer licensed to sell edible cannabinoid
products by a local unit of government, under the provisions of sections 144.989 to 144.993.
new text end

new text begin (b) The authority issuing a license to sell edible cannabinoid products may take the
enforcement actions described in section 152.63, subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Not public data. new text end

new text begin (a) The following data collected, created, or maintained by
the commissioner is classified as nonpublic data, pursuant to section 13.02, subdivision 9,
or private data on individuals, pursuant to section 13.02, subdivision 12:
new text end

new text begin (1) data submitted by an applicant for a cannabis business license, other than the
applicant's name, designated address, and trade name;
new text end

new text begin (2) the identity of a complainant who has made a report concerning a license holder or
an applicant that appears in inactive complaint data unless the complainant consents to the
disclosure;
new text end

new text begin (3) the nature or content of unsubstantiated complaints when the information is not
maintained in anticipation of legal action;
new text end

new text begin (4) inactive investigative data relating to violations of statutes or rules;
new text end

new text begin (5) the record of any disciplinary proceeding except as limited by paragraph (b);
new text end

new text begin (6) data identifying retail customers of a licensed retailer; and
new text end

new text begin (7) data identifying employees of a licensed manufacturer, distributor, or retailer of
edible cannabinoid products.
new text end

new text begin (b) Minutes, application data on license holders except nondesignated addresses, orders
for hearing, findings of fact, conclusions of law, and specifications of the final disciplinary
action contained in the record of the disciplinary action are classified as public, pursuant to
section 13.02, subdivision 15. If there is a public hearing concerning the disciplinary action,
the entire record concerning the disciplinary proceeding is public data pursuant to section
13.02, subdivision 15. If the license holder and the commissioner agree to resolve a complaint
without a hearing, the agreement and the specific reasons for the agreement are public data.
new text end

new text begin (c) The commissioner must not share data classified as nonpublic or private data on
individuals under this subdivision or other data identifying an individual applicant or license
holder with any federal agency, federal department, or federal entity unless specifically
ordered to do so by a state or federal court.
new text end

new text begin (d) The commissioner must establish written procedures to ensure that only individuals
authorized by law may enter, update, or access the data classified as nonpublic or private
data on individuals in this subdivision. An authorized individual's ability to enter, update,
or access data in the system must correspond to the official duties or training level of the
individual and to the statutory authorization granting access for that purpose. All queries
and responses and all actions in which not public data are entered, updated, accessed, shared,
or disseminated, must be recorded in a data audit trail. Data contained in the audit trail have
the same classification as the underlying data tracked by the audit trail.
new text end

Sec. 6.

new text begin [152.55] POSSESSION OF CONCENTRATED CANNABINOIDS AND
ARTIFICIALLY DERIVED CANNABINOIDS.
new text end

new text begin (a) Notwithstanding any other provision of this chapter or any other law to the contrary,
a licensee may possess concentrated cannabinoids and artificially derived cannabinoids
provided the licensee:
new text end

new text begin (1) is authorized to manufacture products from concentrated cannabinoids and artificially
derived cannabinoids;
new text end

new text begin (2) complies with an approved plan to secure, store, and dispose of concentrated
cannabinoids and artificially derived cannabinoids; and
new text end

new text begin (3) complies with any additional requirements or rules adopted by the commissioner.
new text end

new text begin (b) Notwithstanding any other provision of this chapter or any other law to the contrary,
an approved laboratory may possess concentrated cannabinoids and artificially derived
cannabinoids during the period that the laboratory is approved by the commissioner to
perform testing on edible cannabinoid products and the laboratory maintains any required
accreditation.
new text end

new text begin (c) A licensee or laboratory that possesses concentrated cannabinoids or artificially
derived cannabinoids in violation of this section may be subject to any applicable licensing
penalty, criminal penalty, or both.
new text end

Sec. 7.

new text begin [152.56] STATEWIDE MONITORING SYSTEM.
new text end

new text begin (a) The commissioner shall coordinate with the commissioner of agriculture to identify
an approved monitoring system for the integrated tracking, inventory, and verification of
industrial hemp, concentrated cannabinoids, artificially derived cannabinoids, and edible
cannabinoid products.
new text end

new text begin (b) A licensee must use the monitoring system to track all industrial hemp, concentrated
cannabinoids, artificially derived cannabinoids, and edible cannabinoid products in the
licensee's possession to the point of disposal, transfer, or sale. For the purposes of this
section, a licensee possesses the industrial hemp, concentrated cannabinoids, artificially
derived cannabinoids, and edible cannabinoid products that the licensee cultivates from
seed or immature plant, concentrates, converts from any other cannabinoid, receives from
an entity licensed to cultivate or process industrial hemp, manufactures, or receives from
an entity licensed to manufacture or distribute products containing cannabinoids derived
from industrial hemp. This paragraph does not apply to products lawfully purchased by a
licensee for personal use.
new text end

Sec. 8.

new text begin [152.57] EDIBLE CANNABINOID PRODUCTS; CANNABINOID LIMITS;
APPROVAL OF PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Limits on tetrahydrocannabinol. new text end

new text begin (a) No edible cannabinoid product
may contain more than a total of 0.3 percent of all tetrahydrocannabinols, as measured by
weight.
new text end

new text begin (b) An edible cannabinoid product that meets the requirement under paragraph (a) must
not contain more than a total of five milligrams of all tetrahydrocannabinols in a single
serving. A single package that consists of multiple servings may not contain more than a
total of 50 milligrams of all tetrahydrocannabinols.
new text end

new text begin Subd. 2. new text end

new text begin Limits on artificially derived cannabinoids. new text end

new text begin An edible cannabinoid product
may contain delta-8 tetrahydrocannabinol, delta-9 tetrahydrocannabinol, or both. No edible
cannabinoid product may contain any other artificially derived cannabinoid, including but
not limited to THC-O, THC-P, or HHC unless the commissioner authorizes the use of the
artificially derived cannabinoid in edible cannabinoid products.
new text end

new text begin Subd. 3. new text end

new text begin Approval of product types. new text end

new text begin (a) No edible cannabinoid product may be sold
unless the product complies with a category or type of product approved by the commissioner.
new text end

new text begin (b) The commissioner shall approve types or categories of edible cannabinoid products
for retail sale.
new text end

new text begin (c) The commissioner shall not approve any edible cannabinoid product that:
new text end

new text begin (1) bears the likeness or contains characteristics of a real or fictional person, animal, or
fruit;
new text end

new text begin (2) is modeled after a brand of products primarily consumed by or marketed to children;
new text end

new text begin (3) is designed to appeal to persons under age 21;
new text end

new text begin (4) is made by applying extracted, converted, or concentrated tetrahydrocannabinol to
a finished food product that does not contain cannabinoids and is sold to consumers, including
but not limited to a candy or snack food;
new text end

new text begin (5) is or appears to be a lollipop or ice cream;
new text end

new text begin (6) cannot be:
new text end

new text begin (i) packaged in a single serving container;
new text end

new text begin (ii) packaged in such a way that each serving is clearly indicated through the use of
individual pieces that constitute a serving; or
new text end

new text begin (iii) prepared or packaged in such a way that an individual serving size is indicated
through the use of scoring, individual wrapping, or other indicators that appear on the edible
cannabinoid product; or
new text end

new text begin (7) contains an ingredient, other than an ingredient extracted or derived from hemp plants
or hemp plant parts, that is not approved by the United States Food and Drug Administration
for use in food.
new text end

new text begin (d) The commissioner shall not approve any product intended to be consumed by
combustion or vaporization of the product and inhalation of smoke, aerosol, or vapor from
the product.
new text end

Sec. 9.

new text begin [152.58] TESTING OF EDIBLE CANNABINOID PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Standards established by the commissioner. new text end

new text begin (a) The commissioner
shall establish a process for independent laboratories and permit laboratories to apply for
approval in the form and manner determined by the commissioner. At a minimum, a
laboratory must operate formal management systems under the International Organization
for Standardization and be able to enter information into the statewide monitoring system
to qualify for approval. The commissioner shall identify approved independent laboratories
on the commissioner's public-facing website.
new text end

new text begin (b) The commissioner, in consultation with the commissioner of agriculture, shall
establish and regularly update requirements for the testing of edible cannabinoid products,
including a list of:
new text end

new text begin (1) cannabinoids for which testing must be performed;
new text end

new text begin (2) contaminants, including residual solvents, foreign material, microbiological
contaminants, heavy metals, pesticide residue, and mycotoxins, for which testing must be
completed, and the acceptable minimum standards of any contaminant for which testing is
required; and
new text end

new text begin (3) all catalysts identified as being used to manufacture artificially derived cannabinoids,
indicating whether testing must be performed to determine the presence of a residual catalyst.
new text end

new text begin (c) The commissioner must make the lists established pursuant to paragraph (b), clauses
(1) and (2), available to the general public and any entity manufacturing, testing, marketing,
distributing, or selling products that contain cannabinoids. The commissioner must make
the lists established pursuant to paragraph (b), clause (3), available to approved independent
laboratories and laboratories operated by a state government agency, office, or department.
new text end

new text begin Subd. 2. new text end

new text begin Testing by manufacturers and distributors. new text end

new text begin (a) A licensed manufacturer,
distributor, or retailer must not sell, offer for sale, or otherwise transfer edible cannabinoid
products to another licensee or customer unless a representative sample of the batch of
edible cannabinoid products has been tested according to this section and any relevant rules
adopted by the commissioner, and has been found to meet the applicable testing standards.
new text end

new text begin (b) A licensed manufacturer of edible cannabinoid products shall make each batch
available for testing by an approved independent laboratory pursuant to a schedule and in
a manner established by the commissioner. A distributor of edible cannabinoid products
manufactured by an entity that is not a licensed manufacturer may make each batch available
for testing by an approved independent laboratory if the commissioner authorizes the testing
after determining that the process used in the manufacture of the edible cannabinoid product
will assure consistency within each batch.
new text end

new text begin (c) If a certification from an approved independent laboratory verifies that an edible
cannabinoid product meets the applicable testing standards, a licensed manufacturer,
distributor, or retailer may sell, offer for sale, or otherwise transfer the batch from which
the sample was taken to another licensee or customer. If a sample does not meet the
applicable testing standards, the batch from which the sample was taken shall be subject to
procedures established by the commissioner for such batches, including destruction,
remediation, or retesting.
new text end

new text begin (d) The licensed manufacturer or distributor on whose behalf testing was performed
must retain the test results for at least five years after the date of testing. Upon request of
the commissioner, the manufacturer or distributor must make the results available for
inspection or provide a copy to the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Confirmatory tests. new text end

new text begin A licensed manufacturer, distributor, or retailer must allow
a sampling agent, the commissioner, or the commissioner's designee to collect and test
regulatory samples of edible cannabinoid products.
new text end

Sec. 10.

new text begin [152.59] SAFETY OF FOOD INGREDIENTS.
new text end

new text begin The commissioner, in consultation with the commissioner of agriculture, shall establish
rules and policies, perform inspections, and require or perform product testing to ensure
that the food ingredients and processes used in manufacturing edible cannabinoid products
comply with the requirements related to food safety that appear in chapters 28A, 31, and
34A, and associated rules.
new text end

Sec. 11.

new text begin [152.60] PACKAGING, LABELING, AND MARKETING OF EDIBLE
CANNABINOID PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Packaging. new text end

new text begin (a) All edible cannabinoid products sold to customers must
be packaged as required under this section and any relevant rules adopted by the
commissioner.
new text end

new text begin (b) An edible cannabinoid product must be prepackaged in packaging or a container that
is child-resistant, tamper-evident, and opaque or placed in packaging or a container that is
child-resistant, tamper-evident, and opaque at the final point of sale to a customer. The
requirement that packaging be child-resistant does not apply to an edible cannabinoid product
that is intended to be consumed as a beverage and that contains no more than a total of 0.25
milligrams of all tetrahydrocannabinols.
new text end

new text begin (c) An edible cannabinoid product must not be packaged:
new text end

new text begin (1) in a way that resembles the trademarked, characteristic, or product-specialized
packaging of any commercially available food product;
new text end

new text begin (2) bears the likeness or contains cartoon-like characteristics of a real or fictional person,
animal, or fruit that is designed or likely to appeal to persons under 21 years of age; or
new text end

new text begin (3) in a container that includes a statement, artwork, or design that could reasonably
mislead any person to believe that the package contains anything other than an edible
cannabinoid product.
new text end

new text begin Subd. 2. new text end

new text begin Labeling. new text end

new text begin (a) All edible cannabinoid products sold to customers must be labeled
as required under this section and any relevant rules adopted by the commissioner.
new text end

new text begin (b) An edible cannabinoid product sold to customers must bear a label that contains, at
a minimum:
new text end

new text begin (1) the name, address or location, contact phone number, and website of the manufacturer
of the product;
new text end

new text begin (2) the name and address of the approved independent laboratory used by the
manufacturer to test the product;
new text end

new text begin (3) the batch number;
new text end

new text begin (4) the cannabinoid profile;
new text end

new text begin (5) the serving size;
new text end

new text begin (6) the total number of milligrams of all tetrahydrocannabinols in a single serving, and,
if a package contains more than a single serving, the total number of milligrams of all
tetrahydrocannabinols per package;
new text end

new text begin (7) a list of ingredients, including identification of any major food allergens declared
by name;
new text end

new text begin (8) a statement that the product does not claim to diagnose, treat, cure, or prevent any
disease, does not claim that the product may be used to alter the structure or function of
human or animal bodies, and has not been evaluated or approved by the United States Food
and Drug Administration unless the product has been so approved. The labeling must not
contain any statement, artwork, or design that is inconsistent with the required statement;
and
new text end

new text begin (9) the following statement: "Keep this product out of reach of children."
new text end

new text begin (c) The information in paragraph (b) may be provided on an outer package if the
immediate container that holds the product is too small to contain all of the information.
new text end

new text begin (d) The information required in paragraph (b), clauses (1), (2), (3), and (4), may be
provided through the use of a scannable barcode or matrix barcode that links to a page on
a website maintained by the manufacturer or distributor if that page contains all of the
information required by this subdivision.
new text end

new text begin (e) The information required by this subdivision must be prominently and conspicuously
placed on the label or displayed on the website in terms that can be easily read and understood
by the consumer.
new text end

new text begin Subd. 3. new text end

new text begin Marketing. new text end

new text begin (a) No licensee or other person shall publish or cause to be published
an advertisement for an edible cannabinoid product in a manner that:
new text end

new text begin (1) contains false or misleading statements;
new text end

new text begin (2) contains unverified claims about the health or therapeutic benefits or effects of
consuming edible cannabinoid products;
new text end

new text begin (3) promotes the overconsumption of edible cannabinoid products;
new text end

new text begin (4) depicts a person under 21 years of age consuming an edible cannabinoid product; or
new text end

new text begin (5) includes an image or phrase designed or likely to appeal to persons under 21 years
of age or encourage consumption by persons under 21 years of age.
new text end

new text begin (b) No licensee or other person shall publish or cause to be published an advertisement
for edible cannabinoid products in any print publication or on radio, television, or any other
medium if 30 percent or more of the audience of that medium is reasonably expected to be
individuals who are under 21 years of age, as determined by reliable, current audience
composition data.
new text end

new text begin (c) No licensee or other person shall utilize unsolicited pop-up advertisements on the
Internet or advertising directed toward location-based devices, including but not limited to
cellular telephones, to advertise edible cannabinoid products unless:
new text end

new text begin (1) the advertising occurs via a mobile device application that is installed on the device
by the device's owner and includes a permanent and easy to implement opt-out feature; and
new text end

new text begin (2) the owner of the device is 21 years of age or older.
new text end

Sec. 12.

new text begin [152.61] MANUFACTURE OF EDIBLE CANNABINOID PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized actions. new text end

new text begin An edible cannabinoid product manufacturer license
entitles the license holder to:
new text end

new text begin (1) purchase industrial hemp, concentrated cannabinoids, and artificially derived
cannabinoids from a person or entity licensed to grow or process industrial hemp;
new text end

new text begin (2) manufacture edible cannabinoid products for public consumption;
new text end

new text begin (3) package and label edible cannabinoid products;
new text end

new text begin (4) sell or distribute edible cannabinoid products manufactured by the licensee to licensed
distributors or retailers; and
new text end

new text begin (5) perform other actions approved by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin (a) Manufacturing of edible cannabinoid products must take
place:
new text end

new text begin (1) in an enclosed facility that:
new text end

new text begin (i) has appropriate locks or other restrictions to control access; and
new text end

new text begin (ii) meets the sanitary standards specified by the commissioner; and
new text end

new text begin (2) on equipment that is used exclusively for the manufacture of products containing
cannabinoids.
new text end

new text begin (b) A licensed manufacturer must comply with all applicable testing, storage, packaging,
labeling, and health and safety requirements described in sections 152.50 to 152.65.
new text end

new text begin (c) Upon the sale of any edible cannabinoid product to a licensed distributor or retailer,
a licensed manufacturer must provide a label that meets the requirements of section 152.60,
subdivision 2, or provide sufficient information for the distributor or retailer to properly
label the edible cannabinoid product.
new text end

new text begin (d) A licensed manufacturer must record all transactions involving industrial hemp,
artificially derived cannabinoids, and edible cannabinoid products in the statewide monitoring
system.
new text end

new text begin Subd. 3. new text end

new text begin Falsification of records; criminal penalty. new text end

new text begin Notwithstanding section 144.99,
subdivision 11, a person, including a licensed manufacturer, who intentionally alters or
falsifies any information required to be included on the label of an edible cannabinoid
product is guilty of a gross misdemeanor and may be sentenced to imprisonment for not
more than one year or to payment of a fine of not more than $3,000, or both.
new text end

Sec. 13.

new text begin [152.62] DISTRIBUTION OF EDIBLE CANNABINOID PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized actions. new text end

new text begin An edible cannabinoid product distributor license
entitles the license holder to:
new text end

new text begin (1) purchase edible cannabinoid products from manufacturers;
new text end

new text begin (2) sell edible cannabinoid products that meet the requirements of sections 152.50 to
152.65 to licensed retailers; and
new text end

new text begin (3) perform other actions approved by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin A licensed distributor must:
new text end

new text begin (1) ensure that edible cannabinoid products are stored in a manner that prevents any
cross contamination;
new text end

new text begin (2) ensure that any edible cannabinoid products intended for distribution are stored in
an enclosed facility with appropriate locks or other restrictions to control access;
new text end

new text begin (3) store edible cannabinoid products in clean and sanitary conditions, free from
infestation by insects, rodents, or other pests; and
new text end

new text begin (4) maintain accurate records and ensure that appropriate labels remain affixed to edible
cannabinoid products.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of products manufactured outside of the state. new text end

new text begin (a) A licensed
distributor may perform the actions described in subdivision 1 related to edible cannabinoid
products manufactured outside of this state provided that:
new text end

new text begin (1) the manufacturer is licensed in another state and subject to regulations designed to
protect the health and safety of consumers and those regulations are substantially similar
to the regulations in this state; or
new text end

new text begin (2) the distributor establishes, to the satisfaction of the commissioner, that the
manufacturer engages in practices that are substantially similar to the practices required for
licensure of manufacturers in this state.
new text end

new text begin (b) A distributor must enter all relevant information regarding an edible cannabinoid
product manufactured in another state into the statewide monitoring system before the
product may be distributed to a licensed retailer. Relevant information includes information
regarding the cultivation, processing, and testing of the industrial hemp used in the
manufacture of the edible cannabinoid product. If information regarding the industrial hemp
or edible cannabinoid product was submitted to a statewide monitoring system used in
another state, the commissioner may require submission of any information provided to
that statewide monitoring system and shall assist in the transfer of data from another state
as needed and in compliance with any data classification established by either state.
new text end

new text begin Subd. 4. new text end

new text begin Violations in other jurisdictions. new text end

new text begin The commissioner may suspend, revoke, or
cancel the license of a distributor who is prohibited from distributing edible cannabinoid
products in any other jurisdiction, convicted of an offense involving the distribution of
edible cannabinoid products in any other jurisdiction, or found liable for distributing any
product that injured customers in any other jurisdiction. A licensee shall disclose to the
commissioner all relevant information related to the licensee's actions in another jurisdiction.
Failure to disclose relevant information may result in disciplinary action by the commissioner,
including the suspension, revocation, or cancellation of a license.
new text end

new text begin Subd. 5. new text end

new text begin Reliance on product label no defense. new text end

new text begin Notwithstanding any law to the contrary,
it is not a defense in any civil or criminal action that a licensed distributor relied on
information on a product label or otherwise provided by a manufacturer who is not a licensed
edible cannabinoid manufacturer.
new text end

new text begin Subd. 6. new text end

new text begin Unlicensed distribution; distribution of noncompliant products; distribution
to unlicensed retailers; criminal penalty. new text end

new text begin Notwithstanding section 144.99, subdivision
11, a person, including a licensed distributor, who does any of the following is guilty of a
gross misdemeanor and may be sentenced to imprisonment for not more than one year or
to payment of a fine of not more than $3,000, or both:
new text end

new text begin (1) distributes an edible cannabinoid product without first obtaining a license from the
commissioner;
new text end

new text begin (2) distributes an edible cannabinoid product to a retailer that does not comply with the
limits on the amount or types of cannabinoids a product can contain;
new text end

new text begin (3) distributes an edible cannabinoid product to a retailer that does not comply with the
applicable testing, packaging, or labeling requirements; or
new text end

new text begin (4) distributes an edible cannabinoid product to a retailer who is not licensed to sell
edible cannabinoid products.
new text end

Sec. 14.

new text begin [152.63] EDIBLE CANNABINOID PRODUCT RETAILER LICENSES;
LOCAL UNITS OF GOVERNMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance by local unit of government. new text end

new text begin (a) A city or town may issue
annual edible cannabinoid product retailer licenses to persons within the city or town's
jurisdiction. A county board may issue annual edible cannabinoid product retailer licenses
to persons in an area of the county that is unorganized or unincorporated.
new text end

new text begin (b) Any ordinance adopted by a local unit of government and any license issued by a
local unit of government must comply with the requirements and limits under this section.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin The annual license fee for an edible cannabinoid product retailer license
is the fee set by the local unit of government issuing the license. The fee must be set at an
amount equal to the median amount of the annual license fee that the local unit of government
charges for an off-sale intoxicating liquor license and the annual license fee that the local
unit of government charges for a license to sell cigarettes and tobacco. The license fee is
intended to cover the costs of issuing the license, inspecting the licensee, and other directly
related costs of enforcement.
new text end

new text begin Subd. 3. new text end

new text begin Persons eligible; transfer of licenses. new text end

new text begin (a) A local unit of government may
issue an edible cannabinoid product retailer license to a person who:
new text end

new text begin (1) is at least 21 years of age;
new text end

new text begin (2) has completed an application for licensure or application for renewal and has fully
and truthfully complied with all information requests relating to license application and
renewal;
new text end

new text begin (3) has paid any applicable licensing fee;
new text end

new text begin (4) is not employed by the commissioner or any state agency with regulatory authority
under sections 152.50 to 152.65 or the rules adopted pursuant to those sections; and
new text end

new text begin (5) is of good moral character and repute.
new text end

new text begin (b) In determining whether a person is of good moral character and repute, the local unit
of government may rely on the list of disqualifying offenses established by the commissioner,
but must not disqualify an application for a violation of chapter 152 involving the possession
of marijuana or a conviction for a comparable offense in another jurisdiction.
new text end

new text begin (c) Licenses may not be transferred.
new text end

new text begin Subd. 4. new text end

new text begin Background check. new text end

new text begin (a) The chief of police is responsible for conducting a
background check for an applicant prior to a city or town's issuance of an edible cannabinoid
product retailer license. A county sheriff is responsible for conducting a background check
for an applicant prior to the county's issuance of an edible cannabinoid product retailer
license and for those cities and towns that do not have a police department.
new text end

new text begin (b) The applicant for a retail license must submit a completed criminal history records
check consent form, a full set of classifiable fingerprints, and the required fees to the
appropriate authority. Upon receipt of this information, the appropriate authority must
submit the completed criminal history records check consent form, full set of classifiable
fingerprints, and required fees to the Bureau of Criminal Apprehension. After receiving this
information, the bureau must conduct a Minnesota criminal history records check of the
license applicant. The bureau may exchange a license applicant's fingerprints with the
Federal Bureau of Investigation to obtain the applicant's national criminal history record
information. The bureau must return the results of the Minnesota and federal criminal history
records checks to the commissioner to determine if the applicant is disqualified under
subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Retail locations; restrictions on the time, place, and manner of operations. new text end

new text begin A
local unit of government may adopt reasonable restrictions on the time, place, and manner
of the retail sale of edible cannabinoid products. A local unit of government may prohibit
the sale of edible cannabinoid products within 500 feet of a school, day care, nursing home,
or house of worship.
new text end

new text begin Subd. 6. new text end

new text begin Notice to commissioner. new text end

new text begin Within ten days of the issuance of an edible
cannabinoid product retailer license, a local unit of government shall inform the commissioner
of the licensee's name, address, trade name, and the effective date and expiration date of
the license. The local unit of government shall also inform the commissioner of a license
cancellation, suspension, or revocation during the license period.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement by local unit of government. new text end

new text begin On a finding that a license holder
failed to comply with an applicable statute, rule, or ordinance relating to edible cannabinoid
products, or failed to comply with a lawful license condition duly imposed by the authority
issuing the license or agreed to by the license holder, the authority issuing a retail license
under this section may revoke the license, suspend the license for up to 60 days, impose a
civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions.
No suspension or revocation takes effect until the license holder has been given an
opportunity for a hearing under sections 14.57 to 14.69 of the Administrative Procedure
Act. This section does not require a city, town, or county to conduct the hearing before an
employee of the Office of Administrative Hearings. Imposition of a penalty or suspension
by the issuing authority does not preclude imposition of an additional penalty or suspension
by the commissioner.
new text end

Sec. 15.

new text begin [152.64] EDIBLE CANNABINOID PRODUCT RETAILER OPERATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized actions. new text end

new text begin An edible cannabinoid product retailer license
entitles the license holder to purchase edible cannabinoid products from a licensed
manufacturer or licensed distributor, sell and deliver edible cannabinoid products to customers
who are 21 years of age or older, and perform other actions approved by the commissioner
and licensing authority.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin A licensed retailer must:
new text end

new text begin (1) ensure that all edible cannabinoid products are stored in a manner that prohibits
access by persons under 21 years of age;
new text end

new text begin (2) ensure that all edible cannabinoid products offered for sale comply with the applicable
testing, packaging, and labeling requirements;
new text end

new text begin (3) ensure that all edible cannabinoid products offered for sale comply with the limits
on the amount and types of cannabinoids that an edible cannabinoid product can contain;
new text end

new text begin (4) record all transactions involving edible cannabinoid products in the statewide
monitoring system;
new text end

new text begin (5) comply with state and local building, fire, and zoning requirements or regulations;
and
new text end

new text begin (6) ensure that the retail premises is maintained in clean and sanitary conditions, free
from infestation by insects, rodents, or other pests.
new text end

new text begin Subd. 3. new text end

new text begin Prohibitions. new text end

new text begin A licensed retailer must not:
new text end

new text begin (1) sell an edible cannabinoid product to a person who is visibly intoxicated;
new text end

new text begin (2) operate a drive-through window;
new text end

new text begin (3) allow for the dispensing of edible cannabinoid products from vending machines;
new text end

new text begin (4) sell edible cannabinoid products if the retailer knows that the statewide monitoring
system is not operational; or
new text end

new text begin (5) sell edible cannabinoid products to a customer without verifying that the customer
is at least 21 years of age.
new text end

new text begin Subd. 4. new text end

new text begin Signage. new text end

new text begin At each location where edible cannabinoid products are sold, the
licensee shall display a sign in plain view to provide public notice that selling any edible
cannabinoid product to any person under 21 years of age is illegal and subject to penalties.
The notice shall be placed in a conspicuous location in the licensed establishment and shall
be readily visible to any person who is purchasing or attempting to purchase edible
cannabinoid products. The sign shall provide notice that all persons responsible for selling
edible cannabinoid products must verify the age of any customer who is under 30 years of
age by means of photographic identification containing the bearer's date of birth.
new text end

new text begin Subd. 5. new text end

new text begin Age verification. new text end

new text begin (a) Prior to initiating a sale or delivery, an employee of a
licensed retailer must verify that a customer is 21 years of age or older.
new text end

new text begin (b) Proof of age may be established only by one of the following:
new text end

new text begin (1) a valid driver's license or identification card issued by Minnesota, another state, or
a province of Canada that includes the photograph and date of birth of the licensed person;
new text end

new text begin (2) a valid Tribal identification card as defined in section 171.072, paragraph (b);
new text end

new text begin (3) a valid passport issued by the United States;
new text end

new text begin (4) a valid instructional permit issued under section 171.05 to a person of legal age to
purchase adult-use cannabis or adult-use cannabis products that includes a photograph and
the date of birth of the person issued the permit; or
new text end

new text begin (5) in the case of a foreign national, a valid passport.
new text end

new text begin (c) A licensed retailer may seize a customer's form of identification listed under paragraph
(b) if the licensed retailer has reasonable grounds to believe that the form of identification
has been altered or falsified or is being used to violate any law. A licensed retailer that seizes
a form of identification as authorized under this paragraph must deliver it to a law
enforcement agency within 24 hours of seizing it.
new text end

new text begin (d) The commissioner may authorize the use of age-verification software or other
processes to permit the purchase of edible cannabinoid products from a licensed retailer's
website.
new text end

new text begin Subd. 6. new text end

new text begin Deliveries. new text end

new text begin Only a licensed retailer may deliver edible cannabinoid products
from the retailer's store to the residence of a purchaser or other location, provided that such
delivery must be made only to a person who is 21 years of age or older. A licensed retailer
may refuse to sell or deliver edible cannabinoid products to any person whom the retailer
has reason to believe is ineligible to buy edible cannabinoid products or when the retailer
believes that the person intends to deliver an edible cannabinoid product to an ineligible
consumer. The licensed retailer must verify that the person receiving the delivery is the
person who purchased the edible cannabinoid product and is 21 years of age or older.
new text end

new text begin Subd. 7. new text end

new text begin Violations; criminal penalty. new text end

new text begin Notwithstanding section 144.99, subdivision
11, a person, including a licensed retailer, who commits any of the following acts from the
premises of a licensed retailer or another business that sells retail goods to customers is
guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than
one year or to payment of a fine of not more than $3,000, or both:
new text end

new text begin (1) the person sells an edible cannabinoid product knowing that the product does not
comply with the limits on the amount or types of cannabinoids a product can contain;
new text end

new text begin (2) the person sells an edible cannabinoid product knowing that the product does not
comply with the applicable testing, packaging, or labeling requirements; or
new text end

new text begin (3) the person sells an edible cannabinoid product to a person under 21 years of age,
except that it is an affirmative defense to a charge under this clause if the defendant proves
by a preponderance of the evidence that the defendant reasonably and in good faith relied
on proof of age as described in subdivision 5.
new text end

Sec. 16.

new text begin [152.65] REPORT.
new text end

new text begin By January 15 of each year, the commissioner shall submit a report to the legislative
committees and divisions with jurisdiction over health policy and finance on the regulation
of edible cannabinoid products. The report shall describe all actions taken by the
commissioner in the previous year, identify all rules adopted by the commissioner regarding
edible cannabinoid products, list the total number of manufacturing licenses and distributor
licenses issued by the board and the total number of retailer licenses issued by local units
of government, summarize enforcement actions taken by the commissioner, and include
proposed legislative changes, if any.
new text end

ARTICLE 3

TAXATION OF EDIBLE CANNABINOID PRODUCTS

Section 1.

new text begin [295.81] EDIBLE CANNABINOID PRODUCT GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Edible cannabinoid product" has the meaning given in section 152.50, subdivision
7.
new text end

new text begin (d) "Edible cannabinoid product retailer" means a retailer that sells edible cannabinoid
products, including a:
new text end

new text begin (1) retailer maintaining a place of business in this state;
new text end

new text begin (2) marketplace provider maintaining a place of business in this state, as defined in
section 297A.66, subdivision 1, paragraph (a);
new text end

new text begin (3) retailer not maintaining a place of business in this state; and
new text end

new text begin (4) marketplace provider not maintaining a place of business in this state, as defined in
section 297A.66, subdivision 1, paragraph (b).
new text end

new text begin (e) "Gross receipts" means the total amount received, in money or by barter or exchange,
for all sales at retail of edible cannabinoid products as measured by the sales price, but does
not include:
new text end

new text begin (1) any taxes imposed directly on the consumer that are separately stated on the invoice,
bill of sale, or similar document given to the purchaser; and
new text end

new text begin (2) discounts, including cash, terms, or coupons, that are not reimbursed by a third party
and that are allowed by the seller and taken by a purchaser on a sale.
new text end

new text begin (f) "On-site sale" means the sale of edible cannabinoid products for consumption on the
premises of an establishment licensed under section 152.63, including establishments with
an intoxicating liquor license.
new text end

new text begin (g) "Retail sale" has the meaning given in section 297A.61, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Gross receipts tax imposed. new text end

new text begin (a) A tax is imposed on each edible cannabinoid
retailer equal to 2.5 percent of gross receipts from retail sales in Minnesota of edible
cannabinoid products. The edible cannabinoid retailer may but is not required to collect the
tax from the purchaser. If separately stated on the invoice, bill of sale, or similar document
given to the purchaser, the tax is excluded from the sales price for purposes of the tax
imposed under chapter 297A.
new text end

new text begin (b) If a product subject to the tax imposed by this section is bundled in a single transaction
with a product or service that is not subject to the tax imposed by this section, the entire
sales price of the transaction is subject to the tax imposed by this section.
new text end

new text begin (c) The tax imposed under this section is in addition to the tax imposed by chapter 297A
on the sale or use of edible cannabinoid products.
new text end

new text begin Subd. 3. new text end

new text begin Use tax imposed; credit for taxes paid. new text end

new text begin (a) A person that receives edible
cannabinoid products for use or storage in Minnesota, other than from an edible cannabinoid
retailer that paid the tax under subdivision 2, is subject to tax at the rate imposed under
subdivision 2. Liability for the tax is incurred when the person has possession of the edible
cannabinoid product in Minnesota. The tax must be remitted to the commissioner in the
same manner prescribed for taxes imposed under chapter 297A.
new text end

new text begin (b) A person that has paid taxes to another state or any subdivision thereof on the same
transaction and is subject to tax under this section is entitled to a credit for the tax legally
due and paid to another state or subdivision thereof to the extent of the lesser of (1) the tax
actually paid to the other state or subdivision thereof, or (2) the amount of tax imposed by
Minnesota on the transaction subject to tax in the other state or subdivision thereof.
new text end

new text begin Subd. 4. new text end

new text begin Exemptions. new text end

new text begin (a) The tax imposed under this section does not apply to sales of
medical cannabis and medical cannabis products purchased by or for the patients enrolled
in the registry program.
new text end

new text begin (b) The use tax imposed under subdivision 2, paragraph (b), does not apply to the
possession, use, or storage of edible cannabinoid products if (1) the edible cannabinoid
products have an aggregate cost in any calendar month to the customer of $100 or less, and
(2) the edible cannabinoid products were carried into this state by the customer.
new text end

new text begin (c) Unless otherwise specified in this section, the exemptions applicable to taxes imposed
under chapter 297A are not applicable to the taxes imposed under this section.
new text end

new text begin Subd. 5. new text end

new text begin Tax collection required. new text end

new text begin An edible cannabinoid retailer with nexus in
Minnesota, who is not subject to tax under subdivision 2, is required to collect the tax
imposed under subdivision 3 from the purchaser of the edible cannabinoid product and give
the purchaser a receipt for the tax paid. The tax collected must be remitted to the
commissioner in the same manner prescribed for the taxes imposed under chapter 207A.
new text end

new text begin Subd. 6. new text end

new text begin Taxes paid to another state or any subdivision thereof; credit. new text end

new text begin An edible
cannabinoid retailer that has paid taxes to another state or any subdivision thereof measured
by gross receipts and is subject to tax under this section on the same gross receipts is entitled
to a credit for the tax legally due and paid to another state or any subdivision thereof to the
extent of the lesser of (1) the tax actually paid to the other state or any subdivision thereof,
or (2) the amount of tax imposed by Minnesota on the gross receipts subject to tax in the
other taxing state or any subdivision thereof.
new text end

new text begin Subd. 7. new text end

new text begin Sourcing of sales. new text end

new text begin The provisions of section 297A.668 apply to the taxes
imposed by this section.
new text end

new text begin Subd. 8. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A, except the requirement to file returns and remit taxes due electronically, apply to the
tax imposed under this section.
new text end

new text begin Subd. 9. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) An edible cannabinoid retailer must report the
tax on a return prescribed by the commissioner and must remit the tax with the return. The
return and the tax must be filed and paid using the filing cycle and due dates provided for
taxes imposed under section 289A.20, subdivision 4, and chapter 297A.
new text end

new text begin (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date that the refund is paid or credited. For purposes
of this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end

new text begin Subd. 10. new text end

new text begin Deposit of revenue. new text end

new text begin The commissioner shall deposit all revenues, including
penalties and interest, derived from the tax imposed by this section in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received after December
31, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 297A.99, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Edible cannabinoid product local tax prohibited. new text end

new text begin A political subdivision
of this state is prohibited from imposing a tax under this section solely on the sale of edible
cannabinoid products.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 4

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 13.3806, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Edible cannabinoid products data. new text end

new text begin Data held by the commissioner of health
in connection with the licensing of manufacturers, distributors, and retailers of edible
cannabinoid products are classified under section 152.54, subdivision 7.
new text end

Sec. 2.

Minnesota Statutes 2022, section 34A.01, subdivision 4, is amended to read:

Subd. 4.

Food.

"Food" means every ingredient used for, entering into the consumption
of, or used or intended for use in the preparation of food, drink, confectionery, or condiment
for humans or other animals, whether simple, mixed, or compound; and articles used as
components of these ingredients, except that edible cannabinoid products, as defined in
section deleted text begin 151.72, subdivision 1, paragraph (c) deleted text end new text begin 152.50, subdivision 7 new text end , are not food.

Sec. 3.

Minnesota Statutes 2022, section 144.99, subdivision 1, is amended to read:

Subdivision 1.

Remedies available.

The provisions of chapters 103I and 157 and sections
115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14),
and (15); 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385;
144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98;
144.992; 152.22 to 152.37; new text begin 152.50 to 152.65; new text end 326.70 to 326.785; 327.10 to 327.131; and
327.14 to 327.28 and all rules, orders, stipulation agreements, settlements, compliance
agreements, licenses, registrations, certificates, and permits adopted or issued by the
department or under any other law now in force or later enacted for the preservation of
public health may, in addition to provisions in other statutes, be enforced under this section.

Sec. 4.

Minnesota Statutes 2022, section 152.027, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Sale or possession of edible cannabinoid products. new text end

new text begin (a) As used in this section,
"edible cannabinoid product" has the meaning given in section 152.50, subdivision 7.
new text end

new text begin (b) A person under 21 years of age who unlawfully possesses any amount of an edible
cannabinoid product is guilty of a petty misdemeanor.
new text end

new text begin (c) A person who unlawfully sells an edible cannabinoid product, except a sale for no
remuneration to a person who is 21 years of age or older, is guilty of a misdemeanor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2022, section 181.938, subdivision 2, is amended to read:

Subd. 2.

Prohibited practice.

new text begin (a) new text end An employer may not refuse to hire a job applicant
or discipline or discharge an employee because the applicant or employee engages in or has
engaged in the use or enjoyment of lawful consumable products, if the use or enjoyment
takes place off the premises of the employer during nonworking hours. For purposes of this
section, "lawful consumable products" means products whose use or enjoyment is lawful
and which are consumed during use or enjoyment, and includes food, alcoholic or
nonalcoholic beverages, deleted text begin and deleted text end tobacco new text begin , and edible cannabinoid products as defined in section
152.50, subdivision 7 new text end .

new text begin (b) An edible cannabinoid product is a lawful consumable product for the purpose of
Minnesota law, regardless of whether federal or other state law considers cannabis use,
possession, impairment, sale, or transfer to be unlawful. Nothing in this section shall be
construed to limit an employer's ability to discipline or discharge an employee for cannabis
use, possession, impairment, sale, or transfer during working hours, on work premises, or
while operating an employer's vehicle, machinery, or equipment.
new text end

Sec. 6.

Minnesota Statutes 2022, section 340A.412, subdivision 14, is amended to read:

Subd. 14.

Exclusive liquor stores.

(a) Except as otherwise provided in this subdivision,
an exclusive liquor store may sell only the following items:

(1) alcoholic beverages;

(2) tobacco products;

(3) ice;

(4) beverages, either liquid or powder, specifically designated for mixing with intoxicating
liquor;

(5) soft drinks;

(6) liqueur-filled candies;

(7) food products that contain more than one-half of one percent alcohol by volume;

(8) cork extraction devices;

(9) books and videos on the use of alcoholic beverages;

(10) magazines and other publications published primarily for information and education
on alcoholic beverages;

(11) multiple-use bags designed to carry purchased items;

(12) devices designed to ensure safe storage and monitoring of alcohol in the home, to
prevent access by underage drinkers;

(13) home brewing equipment;

(14) clothing marked with the specific name, brand, or identifying logo of the exclusive
liquor store, and bearing no other name, brand, or identifying logo;

(15) citrus fruit; deleted text begin and
deleted text end

(16) glassware new text begin ; and
new text end

new text begin (17) edible cannabinoid products as defined in section 152.50, subdivision 7 new text end .

(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
license may sell food for on-premise consumption when authorized by the municipality
issuing the license.

(c) An exclusive liquor store may offer live or recorded entertainment.

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 151.72, new text end new text begin is repealed.
new text end

ARTICLE 5

APPROPRIATIONS

Section 1. new text begin DEPARTMENT OF HEALTH; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
fund to the commissioner of health to perform the duties related to regulating edible
cannabinoid products described in Minnesota Statutes, sections 152.50 to 152.65.
new text end

Sec. 2. new text begin DEPARTMENT OF AGRICULTURE; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
fund to the commissioner of agriculture for the regulation of concentrated cannabinoids and
artificially derived cannabinoids as described in Minnesota Statutes, chapter 18K.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-02009

151.72 SALE OF CERTAIN CANNABINOID PRODUCTS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have the meanings given.

(b) "Certified hemp" means hemp plants that have been tested and found to meet the requirements of chapter 18K and the rules adopted thereunder.

(c) "Edible cannabinoid product" means any product that is intended to be eaten or consumed as a beverage by humans, contains a cannabinoid in combination with food ingredients, and is not a drug.

(d) "Hemp" has the meaning given to "industrial hemp" in section 18K.02, subdivision 3.

(e) "Label" has the meaning given in section 151.01, subdivision 18.

(f) "Labeling" means all labels and other written, printed, or graphic matter that are:

(1) affixed to the immediate container in which a product regulated under this section is sold;

(2) provided, in any manner, with the immediate container, including but not limited to outer containers, wrappers, package inserts, brochures, or pamphlets; or

(3) provided on that portion of a manufacturer's website that is linked by a scannable barcode or matrix barcode.

(g) "Matrix barcode" means a code that stores data in a two-dimensional array of geometrically shaped dark and light cells capable of being read by the camera on a smartphone or other mobile device.

(h) "Nonintoxicating cannabinoid" means substances extracted from certified hemp plants that do not produce intoxicating effects when consumed by any route of administration.

Subd. 2.

Scope.

(a) This section applies to the sale of any product that contains cannabinoids extracted from hemp and that is an edible cannabinoid product or is intended for human or animal consumption by any route of administration.

(b) This section does not apply to any product dispensed by a registered medical cannabis manufacturer pursuant to sections 152.22 to 152.37.

(c) The board must have no authority over food products, as defined in section 34A.01, subdivision 4, that do not contain cannabinoids extracted or derived from hemp.

Subd. 3.

Sale of cannabinoids derived from hemp.

(a) Notwithstanding any other section of this chapter, a product containing nonintoxicating cannabinoids, including an edible cannabinoid product, may be sold for human or animal consumption only if all of the requirements of this section are met, provided that a product sold for human or animal consumption does not contain more than 0.3 percent of any tetrahydrocannabinol and an edible cannabinoid product does not contain an amount of any tetrahydrocannabinol that exceeds the limits established in subdivision 5a, paragraph (f).

(b) No other substance extracted or otherwise derived from hemp may be sold for human consumption if the substance is intended:

(1) for external or internal use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals; or

(2) to affect the structure or any function of the bodies of humans or other animals.

(c) No product containing any cannabinoid or tetrahydrocannabinol extracted or otherwise derived from hemp may be sold to any individual who is under the age of 21.

(d) Products that meet the requirements of this section are not controlled substances under section 152.02.

Subd. 4.

Testing requirements.

(a) A manufacturer of a product regulated under this section must submit representative samples of the product to an independent, accredited laboratory in order to certify that the product complies with the standards adopted by the board. Testing must be consistent with generally accepted industry standards for herbal and botanical substances, and, at a minimum, the testing must confirm that the product:

(1) contains the amount or percentage of cannabinoids that is stated on the label of the product;

(2) does not contain more than trace amounts of any mold, residual solvents, pesticides, fertilizers, or heavy metals; and

(3) does not contain more than 0.3 percent of any tetrahydrocannabinol.

(b) Upon the request of the board, the manufacturer of the product must provide the board with the results of the testing required in this section.

(c) Testing of the hemp from which the nonintoxicating cannabinoid was derived, or possession of a certificate of analysis for such hemp, does not meet the testing requirements of this section.

Subd. 5.

Labeling requirements.

(a) A product regulated under this section must bear a label that contains, at a minimum:

(1) the name, location, contact phone number, and website of the manufacturer of the product;

(2) the name and address of the independent, accredited laboratory used by the manufacturer to test the product; and

(3) an accurate statement of the amount or percentage of cannabinoids found in each unit of the product meant to be consumed.

(b) The information in paragraph (a) may be provided on an outer package if the immediate container that holds the product is too small to contain all of the information.

(c) The information required in paragraph (a) may be provided through the use of a scannable barcode or matrix barcode that links to a page on the manufacturer's website if that page contains all of the information required by this subdivision.

(d) The label must also include a statement stating that the product does not claim to diagnose, treat, cure, or prevent any disease and has not been evaluated or approved by the United States Food and Drug Administration (FDA) unless the product has been so approved.

(e) The information required by this subdivision must be prominently and conspicuously placed on the label or displayed on the website in terms that can be easily read and understood by the consumer.

(f) The labeling must not contain any claim that the product may be used or is effective for the prevention, treatment, or cure of a disease or that it may be used to alter the structure or function of human or animal bodies, unless the claim has been approved by the FDA.

Subd. 5a.

Additional requirements for edible cannabinoid products.

(a) In addition to the testing and labeling requirements under subdivisions 4 and 5, an edible cannabinoid must meet the requirements of this subdivision.

(b) An edible cannabinoid product must not:

(1) bear the likeness or contain cartoon-like characteristics of a real or fictional person, animal, or fruit that appeals to children;

(2) be modeled after a brand of products primarily consumed by or marketed to children;

(3) be made by applying an extracted or concentrated hemp-derived cannabinoid to a commercially available candy or snack food item;

(4) contain an ingredient, other than a hemp-derived cannabinoid, that is not approved by the United States Food and Drug Administration for use in food;

(5) be packaged in a way that resembles the trademarked, characteristic, or product-specialized packaging of any commercially available food product; or

(6) be packaged in a container that includes a statement, artwork, or design that could reasonably mislead any person to believe that the package contains anything other than an edible cannabinoid product.

(c) An edible cannabinoid product must be prepackaged in packaging or a container that is child-resistant, tamper-evident, and opaque or placed in packaging or a container that is child-resistant, tamper-evident, and opaque at the final point of sale to a customer. The requirement that packaging be child-resistant does not apply to an edible cannabinoid product that is intended to be consumed as a beverage and which contains no more than a trace amount of any tetrahydrocannabinol.

(d) If an edible cannabinoid product is intended for more than a single use or contains multiple servings, each serving must be indicated by scoring, wrapping, or other indicators designating the individual serving size.

(e) A label containing at least the following information must be affixed to the packaging or container of all edible cannabinoid products sold to consumers:

(1) the serving size;

(2) the cannabinoid profile per serving and in total;

(3) a list of ingredients, including identification of any major food allergens declared by name; and

(4) the following statement: "Keep this product out of reach of children."

(f) An edible cannabinoid product must not contain more than five milligrams of any tetrahydrocannabinol in a single serving, or more than a total of 50 milligrams of any tetrahydrocannabinol per package.

Subd. 6.

Enforcement.

(a) A product regulated under this section, including an edible cannabinoid product, shall be considered an adulterated drug if:

(1) it consists, in whole or in part, of any filthy, putrid, or decomposed substance;

(2) it has been produced, prepared, packed, or held under unsanitary conditions where it may have been rendered injurious to health, or where it may have been contaminated with filth;

(3) its container is composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health;

(4) it contains any food additives, color additives, or excipients that have been found by the FDA to be unsafe for human or animal consumption;

(5) it contains an amount or percentage of nonintoxicating cannabinoids that is different than the amount or percentage stated on the label;

(6) it contains more than 0.3 percent of any tetrahydrocannabinol or, if the product is an edible cannabinoid product, an amount of tetrahydrocannabinol that exceeds the limits established in subdivision 5a, paragraph (f); or

(7) it contains more than trace amounts of mold, residual solvents, pesticides, fertilizers, or heavy metals.

(b) A product regulated under this section shall be considered a misbranded drug if the product's labeling is false or misleading in any manner or in violation of the requirements of this section.

(c) The board's authority to issue cease and desist orders under section 151.06; to embargo adulterated and misbranded drugs under section 151.38; and to seek injunctive relief under section 214.11, extends to any violation of this section.