HF 4387

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2022 12:33pm

A bill for an act
relating to health; modifying provisions governing medical cannabis manufacturer
registration and registration renewal; amending Minnesota Statutes 2020, sections
152.25, subdivision 1; 152.35.

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

Section 1.

Minnesota Statutes 2020, section 152.25, subdivision 1, is amended to read:

Subdivision 1.

Medical cannabis manufacturer registration new text begin and renewal new text end .

(a) The
commissioner shall register deleted text begin two deleted text end new text begin at least four new text end in-state manufacturers for the production of
all medical cannabis within the state. deleted text begin A deleted text end new text begin The new text end registration deleted text begin agreement between the commissioner
and a manufacturer deleted text end is new text begin valid for two years, unless revoked under subdivision 1a, and is
new text end nontransferable. deleted text begin The commissioner shall register new manufacturers or reregister the existing
manufacturers by December 1 every two years, using the factors described in this subdivision.
The commissioner shall accept applications after December 1, 2014, if one of the
manufacturers registered before December 1, 2014, ceases to be registered as a manufacturer.
The commissioner's determination that no manufacturer exists to fulfill the duties under
sections 152.22 to 152.37 is subject to judicial review in Ramsey County District Court. deleted text end new text begin
Once the commissioner has registered more than two manufacturers, registration renewal
for at least one manufacturer must occur each year. The commissioner shall begin registering
additional manufacturers by December 1, 2022. The commissioner shall renew a registration
if the manufacturer meets the factors described in this subdivision and submits the registration
renewal fee under section 152.35. new text end Data submitted during the application process are private
data on individuals or nonpublic data as defined in section 13.02 until the manufacturer is
registered under this section. Data on a manufacturer that is registered are public data, unless
the data are trade secret or security information under section 13.37.

(b) As a condition for registration deleted text begin , a manufacturer must agree to deleted text end new text begin or registration renewal new text end :

deleted text begin (1) begin supplying medical cannabis to patients by July 1, 2015; and
deleted text end

deleted text begin (2) deleted text end new text begin (1) a manufacturer must new text end comply with all requirements under sections 152.22 to
152.37 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) if the manufacturer is a business entity, the manufacturer must be incorporated in
the state or otherwise formed or organized under the laws of the state, and at least 75 percent
of the business must be owned by Minnesota residents.
new text end

(c) The commissioner shall consider the following factors when determining which
manufacturer to register new text begin or when determining whether to renew a registration new text end :

(1) the technical expertise of the manufacturer in cultivating medical cannabis and
converting the medical cannabis into an acceptable delivery method under section 152.22,
subdivision 6;

(2) the qualifications of the manufacturer's employees;

(3) the long-term financial stability of the manufacturer;

(4) the ability to provide appropriate security measures on the premises of the
manufacturer;

(5) whether the manufacturer has demonstrated an ability to meet the medical cannabis
production needs required by sections 152.22 to 152.37; and

(6) the manufacturer's projection and ongoing assessment of fees on patients with a
qualifying medical condition.

(d) If an officer, director, or controlling person of the manufacturer pleads or is found
guilty of intentionally diverting medical cannabis to a person other than allowed by law
under section 152.33, subdivision 1, the commissioner may decide not to renew the
registration of the manufacturer, provided the violation occurred while the person was an
officer, director, or controlling person of the manufacturer.

deleted text begin (e) The commissioner shall require each medical cannabis manufacturer to contract with
an independent laboratory to test medical cannabis produced by the manufacturer. The
commissioner shall approve the laboratory chosen by each manufacturer and require that
the laboratory report testing results to the manufacturer in a manner determined by the
commissioner.
deleted text end

Sec. 2.

Minnesota Statutes 2020, section 152.35, is amended to read:

152.35 FEES; DEPOSIT OF REVENUE.

(a) The commissioner shall collect an enrollment fee of $200 from patients enrolled
under this section. If the patient provides evidence of receiving Social Security disability
insurance (SSDI), Supplemental Security Income (SSI), veterans disability, or railroad
disability payments, or being enrolled in medical assistance or MinnesotaCare, then the fee
shall be $50. For purposes of this section:

(1) a patient is considered to receive SSDI if the patient was receiving SSDI at the time
the patient was transitioned to retirement benefits by the United States Social Security
Administration; and

(2) veterans disability payments include VA dependency and indemnity compensation.

Unless a patient provides evidence of receiving payments from or participating in one of
the programs specifically listed in this paragraph, the commissioner of health must collect
the $200 enrollment fee from a patient to enroll the patient in the registry program. The fees
shall be payable annually and are due on the anniversary date of the patient's enrollment.
The fee amount shall be deposited in the state treasury and credited to the state government
special revenue fund.

(b) The commissioner shall collect deleted text begin an deleted text end new text begin a registration new text end application fee of $20,000 from
each entity submitting an application for registration as a medical cannabis manufacturer.
Revenue from the fee shall be deposited in the state treasury and credited to the state
government special revenue fund. new text begin If the commissioner decides not to register an entity that
applies for registration, the commissioner shall reimburse the entity $10,000 of the entity's
registration application fee no later than 30 days after providing the entity with notice of
the decision.
new text end

(c) The commissioner shall establish and collect deleted text begin an annual deleted text end new text begin a biennial registration renewal new text end
fee from a medical cannabis manufacturer equal to the cost of regulating and inspecting the
manufacturer deleted text begin in that year deleted text end new text begin for the upcoming registration period new text end . Revenue from the fee deleted text begin amount deleted text end
shall be deposited in the state treasury and credited to the state government special revenue
fund.

(d) A medical cannabis manufacturer may charge patients enrolled in the registry program
a reasonable fee for costs associated with the operations of the manufacturer. The
manufacturer may establish a sliding scale of patient fees based upon a patient's household
income and may accept private donations to reduce patient fees.