1.1 	A bill for an act
1.2 	relating to cannabis; allowing individuals 21 years of age or older to cultivate, 
1.3 	consume, use, and possess cannabis, cannabis products, and cannabis accessories; 
1.4 	providing regulation of cannabis for commercial purposes; modifying the Clean 
1.5 	Indoor Air Act; modifying controlled substance laws; authorizing rulemaking; 
1.6 	taxing certain cannabis sales; providing for expungement of certain crimes; 
1.7 	appropriating money;amending Minnesota Statutes 2018, sections 144.413, 
1.8 	subdivision 4, by adding subdivisions; 144.414, subdivisions 2, 3; 144.4165; 
1.9 	152.01, by adding subdivisions; 152.027, subdivisions 3, 4, by adding a subdivision; 
1.10 	152.092; 152.093; 152.23; 152.27, subdivision 1; 290.0132, by adding a 
1.11 	subdivision; 290.0134, by adding a subdivision; 297A.61, subdivision 4, by adding 
1.12 	subdivisions; 297A.62, subdivision 1, by adding a subdivision; proposing coding 
1.13 	for new law in Minnesota Statutes, chapters 152; 214; 297A; 609A; proposing 
1.14 	coding for new law as Minnesota Statutes, chapter 340B; repealing Minnesota 
1.15 	Statutes 2018, section 144.414, subdivision 5.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	REGULATION OF THE PRODUCTION, SALE, AND CONSUMPTION OF 
1.19 	CANNABIS

1.20 	Section 1. [340B.01] DEFINITIONS.
1.21 		Subdivision 1.Applicability. For purposes of this chapter, the terms defined in this 
1.22 	section have the meanings given them.
1.23 		Subd. 2.Cannabis. (a) "Cannabis" means all parts of the plant of any species of the 
1.24 	genus Cannabis, including all agronomical varieties, whether growing or harvested and 
1.25 	includes:
1.26 	(1) the seeds of the plant;
1.27 	(2) the resin extracted from any part of the plant; and
2.1 	(3) any compound, manufacture, salt, derivative, mixture, or preparation of the plant, 
2.2 	its seeds, or resin.
2.3 	(b) Cannabis does not include:
2.4 	(1) the mature stalks of the plant and fiber produced from the stalks;
2.5 	(2) oil or cake made from the seeds of the plant;
2.6 	(3) any other compound, manufacture, salt, derivative, mixture, or preparation of the 
2.7 	mature stalks, fiber, oil, or cake;
2.8 	(4) the sterilized seed of the plant which is incapable of germination;
2.9 	(5) industrial hemp or hemp products as defined in section 18K.02, subdivision 3;
2.10 	(6) medical cannabis as defined in section 152.22, subdivision 6; or
2.11 	(7) any other ingredient combined with cannabis to prepare topical or oral administrations, 
2.12 	food, drink, or other product.
2.13 		Subd. 3.Cannabis accessory. "Cannabis accessory" means any equipment, product, or 
2.14 	material of any kind that is used, intended for use, or designed for use in planting, 
2.15 	propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, 
2.16 	converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, 
2.17 	storing, vaporizing, or holding cannabis, or for ingesting, inhaling, or otherwise introducing 
2.18 	cannabis into the human body.
2.19 		Subd. 4.Cannabis cultivation facility. "Cannabis cultivation facility" means an entity 
2.20 	licensed to cultivate, prepare, and package cannabis and to sell cannabis to cannabis product 
2.21 	manufacturing facilities and to other cannabis cultivation facilities, but not directly to 
2.22 	consumers. A cannabis cultivation facility may not produce cannabis tinctures, extracts, or 
2.23 	other cannabis products.
2.24 		Subd. 5.Cannabis establishment. "Cannabis establishment" means a cannabis cultivation 
2.25 	facility, a cannabis testing facility, a cannabis product manufacturing facility, or a retail 
2.26 	cannabis store.
2.27 		Subd. 6.Cannabis product. "Cannabis product" means a product that is comprised of 
2.28 	cannabis and other ingredients and is intended for human consumption, including but not 
2.29 	limited to edible products, ointments, extracts, and tinctures.
2.30 		Subd. 7.Cannabis product manufacturing facility. "Cannabis product manufacturing 
2.31 	facility" means an entity licensed to purchase cannabis; manufacture, prepare, and package 
3.1 	cannabis products; and sell cannabis and cannabis products to other cannabis product 
3.2 	manufacturing facilities and to retail cannabis stores, but not directly to consumers.
3.3 		Subd. 8.Cannabis testing facility. "Cannabis testing facility" means an entity licensed 
3.4 	to analyze and certify the safety and potency of cannabis and cannabis products.
3.5 		Subd. 9.Commissioner. "Commissioner" means the commissioner of health.
3.6 		Subd. 10.Consume. "Consume" includes any form of ingestion, introduction, or 
3.7 	absorption into the body, including but not limited to by means of smoking, inhaling, eating, 
3.8 	or application onto the skin.
3.9 		Subd. 11.Consumer. "Consumer" means a person 21 years of age or older who purchases 
3.10 	or receives cannabis, cannabis products, or cannabis accessories for personal consumption 
3.11 	by persons 21 years of age or older, but not for the resale to others.
3.12 		Subd. 12.Cultivation permit. "Cultivation permit" means a permit issued under section 
3.13 	340B.16.
3.14 		Subd. 13.Disqualifying felony offense. "Disqualifying felony offense" has the meaning 
3.15 	given in section 152.22, subdivision 3.
3.16 		Subd. 14.Immature plant. "Immature plant" means a cannabis plant that has not 
3.17 	flowered and does not have buds that may be observed by visual examination.
3.18 		Subd. 15.Local government. "Local government" means a town operating under chapter 
3.19 	368, a statutory or home rule charter city, or in reference to an unincorporated area, a county. 
3.20 	A governing body for a town under this chapter means a town board of supervisors.
3.21 		Subd. 16.Mature plant. "Mature plant" means a female cannabis plant that has flowered 
3.22 	and that has buds that may be observed by visual examination.
3.23 		Subd. 17.Premises. "Premises" means the premises specified on an application for 
3.24 	licensure under this chapter that are owned by or in possession of the licensee and within 
3.25 	which the licensee is authorized to cultivate, manufacture, process, distribute, sell, or test 
3.26 	cannabis or cannabis products according to this chapter.
3.27 		Subd. 18.Public health standards and practices. "Public health standards and practices" 
3.28 	means standards and practices based on the principles of protecting and improving individual 
3.29 	and public health by promoting healthy lifestyles, preventing injuries, preventing and 
3.30 	responding to diseases, and, with regard to cannabis, reducing cannabis misuse, preventing 
3.31 	underage cannabis use, ensuring the safety of cannabis products, and ensuring consumers 
3.32 	have access to accurate, science-based information about the effects of cannabis use.
4.1 		Subd. 19.Public place. "Public place" means a public street, highway, alley, sidewalk, 
4.2 	or boulevard, or property owned, leased, or controlled by a governmental unit.
4.3 		Subd. 20.Retail cannabis store. "Retail cannabis store" means an entity licensed to 
4.4 	purchase cannabis from cannabis cultivation facilities, and cannabis and cannabis products 
4.5 	from cannabis product manufacturing facilities, and to sell cannabis, cannabis products, 
4.6 	and cannabis accessories to consumers.

4.7 	Sec. 2. [340B.03] GENERAL PROVISIONS.
4.8 		Subdivision 1.Scope. (a) This chapter sets forth the exclusive means by which the 
4.9 	cultivation, production, processing, manufacture, distribution, sale, and testing of cannabis 
4.10 	and cannabis products may occur in this state. It is unlawful to produce, process, cultivate, 
4.11 	manufacture, distribute, or sell cannabis or cannabis products except in compliance with 
4.12 	the terms, conditions, limitations, and restrictions of this chapter or the rules adopted under 
4.13 	this chapter.
4.14 	(b) Nothing in this chapter shall be construed to limit any of the privileges or rights of 
4.15 	a patient enrolled in the medical cannabis registry, registered designated caregiver, or 
4.16 	registered manufacturer provided under sections 152.22 to 152.37.
4.17 	(c) Nothing in this chapter shall be construed to limit any of the privileges or rights of 
4.18 	a person who has a license from the commissioner of agriculture to grow industrial hemp 
4.19 	for commercial purposes under chapter 18K.
4.20 		Subd. 2.Possession and consumption of cannabis. Notwithstanding subdivision 1, a 
4.21 	person 21 years of age or older may cultivate, possess, purchase, transport, transfer, use, 
4.22 	and consume cannabis, cannabis products, and cannabis accessories as provided in sections 
4.23 	152.0965 and 152.0966.
4.24 		Subd. 3.Rights of employers. Nothing in this chapter shall be construed to:
4.25 	(1) require an employer to permit or accommodate employees' consumption, possession, 
4.26 	transfer, display, transportation, sale, or cultivation of cannabis or cannabis products in the 
4.27 	workplace or on the employer's property;
4.28 	(2) prevent an employer from adopting a policy that prohibits the consumption of cannabis 
4.29 	or cannabis products in the workplace or to work while under the influence of cannabis; or
4.30 	(3) create a cause of action against an employer who discharges an employee for violating 
4.31 	a policy that restricts or prohibits the consumption of cannabis or cannabis products by 
4.32 	employees.
5.1 		Subd. 4.Rights of employees and prospective employees. (a) Notwithstanding 
5.2 	paragraph (b) or any law to the contrary, an employer may not discipline or discriminate 
5.3 	against an employee or prospective employee because the employee or prospective employee 
5.4 	has metabolites of cannabis in the employee's or prospective employee's blood.
5.5 	(b) Nothing in this chapter prohibits an employer from disciplining, discharging, or 
5.6 	otherwise taking an adverse employment action against an employee for violation of a 
5.7 	workplace drug policy or for working while under the influence of cannabis.
5.8 		Subd. 5.Rights of property owners. Nothing in this chapter prohibits a person, 
5.9 	employer, school, hospital, detention facility, corporation, or any other entity that occupies, 
5.10 	owns, or controls a property from prohibiting or otherwise regulating the possession, 
5.11 	consumption, display, transfer, distribution, sale, transportation, or cultivation of cannabis 
5.12 	or cannabis products on the person's or entity's property.
5.13 		Subd. 6.Rights of residential tenants. Except as provided in this section, a residential 
5.14 	landlord may not prohibit the possession of cannabis or cannabis products or the consumption 
5.15 	of cannabis or cannabis products by nonsmoking means by a tenant who is 21 years of age 
5.16 	or older unless:
5.17 	(1) the tenant is not leasing the entire residential dwelling or rental unit;
5.18 	(2) the residence is incidental to detention or the provision of medical, geriatric, 
5.19 	educational, counseling, religious, or similar service;
5.20 	(3) the residence is a transitional housing facility; or
5.21 	(4) failing to prohibit the possession or consumption of cannabis or cannabis products 
5.22 	would violate federal law or regulations or cause the landlord to lose a monetary- or 
5.23 	licensing-related benefit under federal law or regulations.
5.24 		Subd. 7.Public consumption not authorized. Nothing in this chapter authorizes a 
5.25 	person to consume cannabis in a public place.
5.26 		Subd. 8.Report. By February 1 of each year beginning in 2021, the commissioner shall 
5.27 	submit a report to the legislative committees with jurisdiction over cannabis, public safety, 
5.28 	and taxes on the following:
5.29 	(1) the progress the commissioner is making on processing licenses;
5.30 	(2) an overview of the cannabis and cannabis product market, including but not limited 
5.31 	to the actual and anticipated market demand and market supply;
6.1 	(3) the amounts of revenue generated by the sale of cannabis, cannabis seeds, cannabis 
6.2 	products, and cannabis accessories and the expenses incurred by the commissioner and 
6.3 	other state agencies related to the administration and enforcement of this chapter and related 
6.4 	laws;
6.5 	(4) the number of persons who have filed an application with the commissioner to obtain 
6.6 	a license for a cannabis establishment; and
6.7 	(5) the commissioner's enforcement actions taken against persons licensed under this 
6.8 	chapter for violations of this chapter or the rules adopted under this chapter.

6.9 	Sec. 3. [340B.04] DUTIES OF COMMISSIONER OF HEALTH.
6.10 		Subdivision 1.Duties. The commissioner shall perform the following functions related 
6.11 	to the regulation of cannabis, cannabis products, cannabis accessories, and cannabis 
6.12 	establishments:
6.13 	(1) issue state licenses to qualified cannabis establishments according to this chapter;
6.14 	(2) issue cultivation permits to qualified persons according to this chapter;
6.15 	(3) develop and make available the content of the training course and examination in 
6.16 	section 340B.16, subdivision 6;
6.17 	(4) suspend, restrict, or revoke the license of a cannabis establishment, or take other 
6.18 	corrective action if a cannabis establishment violates this chapter or rules adopted under 
6.19 	this chapter;
6.20 	(5) adopt rules to implement this chapter according to section 340B.05;
6.21 	(6) impose any penalty authorized by this chapter or rules adopted under this chapter;
6.22 	(7) assess fees according to this chapter; and
6.23 	(8) administer and enforce this chapter and rules adopted under this chapter.
6.24 		Subd. 2.Interagency agreements. The commissioner may enter into one or more 
6.25 	interagency agreements with other state agencies for technical services or services related 
6.26 	to the regulatory, enforcement, or inspection duties in this chapter or rules adopted under 
6.27 	this chapter.
6.28 		Subd. 3.Conflicts of interest. The commissioner or any person employed by the 
6.29 	Department of Health assigned to administer or implement this chapter shall not have a 
6.30 	direct or indirect financial interest in any cannabis establishment.

7.1 	Sec. 4. [340B.05] RULEMAKING.
7.2 		Subdivision 1.Scope. No later than January 1, 2021, the commissioner shall adopt rules 
7.3 	necessary to implement this chapter. In adopting rules under this chapter, the commissioner 
7.4 	shall apply public health standards and practices to protect public health. The rules adopted 
7.5 	by the commissioner under this section must provide for retail cannabis stores to begin the 
7.6 	sale of cannabis, cannabis products, and cannabis accessories by January 1, 2022.
7.7 		Subd. 2.Rules. The rules adopted by the commissioner must address the following:
7.8 	(1) procedures for the issuance, renewal, suspension, and revocation of a license to 
7.9 	operate a cannabis establishment;
7.10 	(2) procedures designed to prevent the sale or diversion of cannabis and cannabis products 
7.11 	to persons under the age of 21;
7.12 	(3) procedures for the delivery and transportation of cannabis and cannabis products 
7.13 	between cannabis establishments;
7.14 	(4) health and safety requirements and standards for producing and processing cannabis 
7.15 	and cannabis products;
7.16 	(5) safety standards for cannabis and cannabis products, including safety requirements 
7.17 	related to contaminants and potency;
7.18 	(6) security requirements for cannabis establishments, including requirements for 
7.19 	protection of each location by a fully operational security alarm system, facility access 
7.20 	controls, a perimeter intrusion detection system, and a personnel identification system;
7.21 	(7) requirements for the storage of cannabis and cannabis products by cannabis 
7.22 	establishments;
7.23 	(8) employment and training requirements, including creating an identification badge 
7.24 	for each employee or agent of cannabis establishments;
7.25 	(9) restrictions on advertising, marketing, and signage, including marketing restrictions 
7.26 	to prevent persons under the age of 21 from being targeted for the sale of cannabis or 
7.27 	cannabis products;
7.28 	(10) restrictions on the display of cannabis and cannabis products to ensure that cannabis 
7.29 	and cannabis products are not displayed in a manner that is visible to the general public 
7.30 	from a public right-of-way;
7.31 	(11) labeling requirements for cannabis and cannabis products sold or distributed by a 
7.32 	cannabis establishment;
8.1 	(12) requirements for the cultivation of cannabis by cannabis cultivation facilities. In 
8.2 	adopting rules under this clause, the commissioner may consult with the commissioner of 
8.3 	agriculture on topics such as pesticide use;
8.4 	(13) requirements for the testing of cannabis and cannabis products by and research 
8.5 	practices of cannabis testing facilities, including testing and research standards, quality 
8.6 	control analysis, equipment certification and calibration, and chemical identification;
8.7 	(14) standards for the operation of cannabis testing facilities, including requirements for 
8.8 	equipment and qualifications for personnel;
8.9 	(15) record-keeping and audit requirements for cannabis establishments. In adopting 
8.10 	rules under this clause, the commissioner may consult with the commissioner of revenue;
8.11 	(16) safety standards for edible cannabis products, which may include limits on the types 
8.12 	of edible products produced and sold and packaging requirements for edible products, in 
8.13 	order to limit products that may appeal to or be ingested by children; and
8.14 	(17) any other requirements or procedures necessary to administer this chapter.
8.15 		Subd. 3.Advisory council of public health professionals. (a) The commissioner shall 
8.16 	appoint members to an advisory council of public health professionals to advise the 
8.17 	commissioner on the adoption of rules under this section according to public health standards 
8.18 	and practices and to analyze and evaluate the social and economic impacts of this chapter. 
8.19 	Advisory council membership shall include public health professionals and health care 
8.20 	providers. Cannabis establishment owners, agents, and employees are not eligible to serve 
8.21 	on the advisory council.
8.22 	(b) The advisory council shall be organized and administered under section 15.059.

8.23 	Sec. 5. [340B.06] CANNABIS ESTABLISHMENTS; REQUIREMENTS.
8.24 		Subdivision 1.License required. (a) No person may operate a cannabis establishment 
8.25 	in this state without first obtaining the proper license from the commissioner to perform the 
8.26 	activities and operations authorized by this chapter.
8.27 	(b) Every cannabis establishment license must:
8.28 	(1) be issued in the name of the applicant;
8.29 	(2) specify the location of the cannabis establishment; and
8.30 	(3) be used only by the holder of the license.
9.1 		Subd. 2.Eligibility. (a) A license to operate a cannabis establishment shall only be 
9.2 	issued to a person who:
9.3 	(1) has been a resident of this state for at least two years prior to the date of the application 
9.4 	or has been domiciled in Minnesota for at least 24 months during the previous seven years;
9.5 	(2) is 21 years of age or older;
9.6 	(3) has not had a license issued under this chapter revoked within five years prior to the 
9.7 	date of the license application; and
9.8 	(4) is not delinquent on any local, state, or federal tax.
9.9 	(b) The requirements described in paragraph (a), clauses (2) to (4), apply to all owners, 
9.10 	partners, officers, directors, or agents of any corporation applying for a license under this 
9.11 	chapter. The requirement described in paragraph (a), clause (1), must be met by at least 60 
9.12 	percent of the owners, partners, officers, directors, or agents of any corporation applying 
9.13 	for a license under this chapter.
9.14 		Subd. 3.Application; fee. An initial application for a license under this chapter must 
9.15 	be submitted to the commissioner on a form the commissioner prescribes and must be 
9.16 	accompanied by a $1,000 application fee. If an application is denied, the application fee 
9.17 	shall be retained by the commissioner to cover the administrative costs related to reviewing 
9.18 	the application.
9.19 		Subd. 4.Period of license. (a) Licenses issued under this chapter are valid for one year, 
9.20 	except that to coordinate expiration dates, initial licenses may be prorated.
9.21 	(b) To renew a cannabis establishment license, a licensee must submit a renewal 
9.22 	application as prescribed by the commissioner and the applicable fee specified under 
9.23 	subdivision 9.
9.24 		Subd. 5.Separate license required; limitations. (a) A separate license is required for 
9.25 	each class of license and the license holder must perform the operations authorized under 
9.26 	each specified license issued.
9.27 	(b) A separate license is required for each premises located in the state where the 
9.28 	operations of a cannabis establishment occur.
9.29 	(c) No person shall hold more than the following number of licenses at any one time:
9.30 	(1) cannabis cultivation facility, one license;
9.31 	(2) cannabis product manufacturing facility, one license; and
10.1 	(3) retail cannabis store, five licenses, with a limit of two locations per city or town.
10.2 	(d) A person issued a cannabis testing facility license must not hold another license 
10.3 	under this chapter.
10.4 		Subd. 6.Transferability. A license issued under this chapter is not transferable from 
10.5 	one person to another or from one premises to another.
10.6 		Subd. 7.Application process. (a) Each application for an annual license to operate a 
10.7 	cannabis establishment shall be submitted to the commissioner with the application fee and 
10.8 	applicable fee specified in subdivision 9.
10.9 	(b) The commissioner shall begin accepting applications on October 1, 2021.
10.10 	(c) The commissioner shall issue an annual license to the applicant within 45 days after 
10.11 	receipt of an application unless the commissioner finds the applicant is not in compliance 
10.12 	with this chapter or the rules adopted under this chapter. Upon denial of an application for 
10.13 	a license to operate a cannabis establishment, the commissioner shall notify the applicant 
10.14 	in writing of the specific reason for denial. An applicant may appeal the commissioner's 
10.15 	denial of the license in a contested case proceeding under chapter 14.
10.16 		Subd. 8.Inspection of premises. For the purpose of considering an initial cannabis 
10.17 	establishment license application or for the renewal of a cannabis establishment license, the 
10.18 	commissioner may inspect the cannabis establishment premises and may inquire into all 
10.19 	matters in connection with the construction and operation of the cannabis establishment.
10.20 		Subd. 9.Fees. (a) The annual fees for licenses under this chapter are as follows:
10.21 	(1) for a cannabis cultivation facility, $.......;
10.22 	(2) for a cannabis product manufacturing facility, $.......;
10.23 	(3) for a retail cannabis store, $.......; and
10.24 	(4) for a cannabis testing facility, $.......
10.25 	(b) The commissioner may structure fees to allow for a tiered licensing system based 
10.26 	on the size or gross sales of the establishment.
10.27 	(c) The commissioner may annually adjust the fee amount in paragraph (a) to cover the 
10.28 	cost of administering the licensing program.
10.29 	(d) The fees collected under this subdivision shall be deposited by the commissioner in 
10.30 	the state government special revenue fund.
11.1 		Subd. 10.Employees. A cannabis establishment is prohibited from employing any 
11.2 	person:
11.3 	(1) under 21 years of age; or
11.4 	(2) who has been convicted of a disqualifying felony offense.

11.5 	Sec. 6. [340B.07] RETAIL CANNABIS STORE; REQUIREMENTS.
11.6 		Subdivision 1.License. No person shall operate a retail cannabis store without a license 
11.7 	issued by the commissioner under the authority of this chapter.
11.8 		Subd. 2.Cannabis and cannabis products; source and transactions. A retail cannabis 
11.9 	store may only purchase cannabis or cannabis products from a cannabis cultivation facility 
11.10 	or cannabis product manufacturing facility licensed under this chapter. A purchase transaction 
11.11 	between a retail cannabis store and a cannabis cultivation facility or cannabis product 
11.12 	manufacturing facility must only occur on licensed premises.
11.13 		Subd. 3.Cannabis and cannabis product tracking. A retail cannabis store must track 
11.14 	all cannabis and cannabis products from the point of transfer from a cannabis product 
11.15 	manufacturing facility to the point of sale.
11.16 		Subd. 4.Allowed sale. A retail cannabis store may only sell cannabis or cannabis products 
11.17 	to a person who is 21 years of age or older and has a valid government-issued identification 
11.18 	card showing that the person is 21 years of age or older.
11.19 		Subd. 5.Identification verification. (a) Before initiating a sale under this chapter, an 
11.20 	employee of the retail cannabis store making the sale must verify that the purchaser has 
11.21 	valid proof of age as described in section 340B.17, subdivision 6, showing the purchaser is 
11.22 	21 years of age or older. If a person under the age of 21 presents a fraudulent proof of age, 
11.23 	any action reasonably relying on the fraudulent proof of age shall not be grounds for the 
11.24 	revocation or suspension of any license issued under this chapter.
11.25 	(b) A consumer is not required to provide a retail cannabis store with personal information 
11.26 	other than valid proof of age to determine the consumer's age in order to purchase cannabis 
11.27 	or cannabis products.
11.28 	(c) A retail cannabis store is not required to acquire and record personal information 
11.29 	about consumers other than information typically acquired in a financial transaction 
11.30 	conducted at an on-sale liquor establishment.
12.1 		Subd. 6.Packaging; labels. All cannabis and cannabis products sold in a retail cannabis 
12.2 	store must be packaged and labeled as required by this chapter and any rules adopted under 
12.3 	this chapter.
12.4 		Subd. 7.Allowable sales. A retail cannabis store must not sell products or services other 
12.5 	than cannabis, cannabis products, and cannabis accessories.
12.6 		Subd. 8.Cannabis consumption on premises. Consumption of any cannabis or cannabis 
12.7 	product on the retail cannabis store's licensed premises is prohibited.
12.8 		Subd. 9.Deliveries. A retail cannabis store is prohibited from delivering, arranging for 
12.9 	the delivery of, or shipping cannabis, cannabis products, or cannabis accessories to an 
12.10 	individual.
12.11 		Subd. 10.Employee training. Immediately after beginning employment with a retail 
12.12 	cannabis store, every employee of a retail cannabis store must receive training, as approved 
12.13 	by the commissioner, on the following:
12.14 	(1) the proper handling of cannabis and cannabis products;
12.15 	(2) security protocol for retail cannabis stores;
12.16 	(3) inventory accountability procedures; and
12.17 	(4) procedures for verifying the age of consumers in order to prevent sales to persons 
12.18 	under 21 years of age.

12.19 	Sec. 7. [340B.08] CANNABIS CULTIVATION FACILITY; REQUIREMENTS.
12.20 		Subdivision 1.License. No person shall operate as a cannabis cultivation facility without 
12.21 	a license issued by the commissioner under the authority of this chapter.
12.22 		Subd. 2.Tracking of cannabis. A cannabis cultivation facility must track the cannabis 
12.23 	that is cultivated from seed or immature plant to the wholesale purchase.
12.24 		Subd. 3.Authorized sales. A cannabis cultivation facility must only sell cannabis at 
12.25 	wholesale to cannabis product manufacturing facilities, other cannabis cultivation facilities, 
12.26 	or retail cannabis stores.

12.27 	Sec. 8. [340B.10] CANNABIS PRODUCT MANUFACTURING FACILITY; 
12.28 	REQUIREMENTS.
12.29 		Subdivision 1.License. No person shall operate a cannabis product manufacturing 
12.30 	facility without a license issued by the commissioner under the authority of this chapter.
13.1 		Subd. 2.Cannabis production; tracking. (a) A cannabis product manufacturing facility 
13.2 	may only purchase cannabis from a licensed cannabis cultivation facility or produce its own 
13.3 	cannabis if it holds a cannabis cultivation facility license.
13.4 	(b) A cannabis product manufacturing facility must track all cannabis that it processes 
13.5 	from the point the cannabis is delivered to the cannabis product manufacturing facility from 
13.6 	a cannabis cultivation facility or processed by the cannabis product manufacturing facility 
13.7 	to the point of transfer to a retail cannabis store.
13.8 		Subd. 3.Limitations. (a) A cannabis product manufacturing facility must not:
13.9 	(1) add any cannabis to a food product if the manufacturer of the food product holds a 
13.10 	trademark to the food product's name, except that a cannabis product manufacturing facility 
13.11 	may use a trademarked food product if the cannabis product manufacturing facility uses the 
13.12 	food product as a component or as part of a recipe and if the cannabis product manufacturing 
13.13 	facility does not state or advertise to the consumer that the final cannabis-infused product 
13.14 	contains a trademarked food product; or
13.15 	(2) intentionally or knowingly label or package a cannabis product in a manner that 
13.16 	would cause a reasonable consumer confusion as to whether the cannabis product is a 
13.17 	trademarked food product.
13.18 	(b) Cannabis or cannabis products must not be consumed on the premises of a cannabis 
13.19 	product manufacturing facility.
13.20 		Subd. 4.Processed on licensed premises. (a) Cannabis and cannabis products must be 
13.21 	prepared on the premises of the cannabis product manufacturing facility that is used 
13.22 	exclusively for the processing, manufacturing, or preparation of cannabis or cannabis 
13.23 	products intended for sale and be prepared using equipment that is used exclusively for the 
13.24 	processing, manufacturing, or preparation of cannabis or cannabis products.
13.25 	(b) The premises of the cannabis product manufacturing facility in which cannabis or 
13.26 	cannabis products are processed, manufactured, or prepared must meet all sanitary conditions 
13.27 	established by the commissioner under this chapter.
13.28 		Subd. 5.Labeling; packaging. (a) A cannabis product manufacturing facility must affix 
13.29 	a label to all cannabis and cannabis products that the cannabis product manufacturing facility 
13.30 	transfers to a retail cannabis store that meets the labeling requirements of this chapter.
13.31 	(b) Cannabis products processed by a cannabis product manufacturing facility must be 
13.32 	clearly distinguishable from commercially available products not containing cannabis.

14.1 	Sec. 9. [340B.11] CANNABIS TESTING FACILITIES.
14.2 		Subdivision 1.License. No person shall perform testing or research on cannabis or 
14.3 	cannabis products for a cannabis cultivation facility, cannabis product manufacturing facility, 
14.4 	or retail cannabis store without a license issued by the commissioner under the authority of 
14.5 	this chapter.
14.6 		Subd. 2.Conflicts of interest. A person who has a direct or indirect financial interest 
14.7 	in a cannabis testing facility must not have a direct or indirect financial interest in a cannabis 
14.8 	cultivation facility, cannabis product manufacturing facility, or retail cannabis store.

14.9 	Sec. 10. [340B.12] CANNABIS TESTING.
14.10 		Subdivision 1.Testing required of cannabis and cannabis products. On a schedule 
14.11 	determined by the commissioner, every cannabis cultivation facility and cannabis product 
14.12 	manufacturing facility must submit representative samples of cannabis and cannabis products 
14.13 	produced or processed by the cannabis cultivation facility or cannabis product manufacturing 
14.14 	facility to a cannabis testing facility in order to certify that the cannabis or cannabis products 
14.15 	comply with the standards prescribed by the commissioner. At a minimum, the testing must 
14.16 	ensure that the cannabis or cannabis products do not contain contaminants that are injurious 
14.17 	to the health of consumers and are correctly labeled to indicate the delta-9 
14.18 	tetrahydrocannabinol and cannabidiol content of the cannabis or cannabis product. The 
14.19 	testing must include analysis for residual solvents, poisons, toxins, harmful chemicals, 
14.20 	pathogenic mold, fungus, banned or excessive pesticide residue, heavy metal, and other 
14.21 	contaminants. The cannabis testing facility must destroy or return to the cannabis cultivation 
14.22 	facility or cannabis product manufacturing facility any part of the sample that remains after 
14.23 	testing.
14.24 		Subd. 2.Submission of testing results. Cannabis cultivation facilities and cannabis 
14.25 	product manufacturing facilities must submit the results of the testing required by this section 
14.26 	to the commissioner in the manner prescribed by the commissioner.
14.27 		Subd. 3.When lot must be destroyed. If a representative sample inspected and tested 
14.28 	under this section does not meet the standards prescribed by the commissioner, the 
14.29 	commissioner shall take necessary action to ensure that the entire lot from which the sample 
14.30 	was taken is destroyed. The commissioner shall adopt rules to determine lots and lot numbers 
14.31 	for purposes of this section.
14.32 		Subd. 4.Sale of contaminated lots prohibited. A cannabis cultivation facility or 
14.33 	cannabis product manufacturing facility must not sell cannabis or cannabis products that 
15.1 	test positive for any contaminant identified under subdivision 1 if the contaminants or level 
15.2 	of contaminants are identified by a cannabis testing facility as potentially unsafe to the 
15.3 	consumer.

15.4 	Sec. 11. [340B.13] SEED-TO-SALE TRACKING SYSTEM.
15.5 	The commissioner shall develop and maintain a seed-to-sale tracking system that tracks 
15.6 	cannabis produced by a cannabis cultivation facility from either the seed or immature plant 
15.7 	stage to the processing stage until the cannabis is sold to a consumer as cannabis or cannabis 
15.8 	product at a retail cannabis store. The tracking system developed by the commissioner must 
15.9 	ensure that no cannabis produced or processed by a cannabis cultivation facility or cannabis 
15.10 	product manufacturing facility is sold except by a retail cannabis store.

15.11 	Sec. 12. [340B.14] RECORDS; AUDITS.
15.12 	(a) Each cannabis establishment must keep a complete set of books and records necessary 
15.13 	to show the business transactions of the cannabis establishment for the current tax year and 
15.14 	the three preceding tax years. The records must be kept on the premises described in the 
15.15 	cannabis establishment's license and in a manner that ensures permanency and accessibility 
15.16 	for inspection at reasonable hours by the commissioner or the commissioner's designee. 
15.17 	The commissioner shall prescribe reasonable and uniform methods of keeping records and 
15.18 	shall provide all necessary forms to cannabis establishments.
15.19 	(b) The commissioner may require a cannabis establishment to furnish any information 
15.20 	the commissioner considers necessary for the proper administration and enforcement of this 
15.21 	chapter and may require an audit of the books and records on any occasion that the 
15.22 	commissioner considers necessary. Any accounting required by the commissioner shall be 
15.23 	completed by an auditor selected by the commissioner at the expense of the cannabis 
15.24 	establishment.
15.25 	(c) The premises of each cannabis establishment, including any place where a cannabis 
15.26 	establishment grows, stores, cultivates, distributes, or processes cannabis, is subject to 
15.27 	inspection or investigation by the commissioner or the commissioner's designee during 
15.28 	regular business hours and at other times of apparent activity. A cannabis establishment 
15.29 	must provide access during business hours for examination of any inventory or books and 
15.30 	records required to be kept by the cannabis establishment. If any part of a cannabis 
15.31 	establishment's premises contains a locked area, upon demand by the commissioner or the 
15.32 	commissioner's designee, the locked area must be made available without delay to the 
15.33 	commissioner or the commissioner's designee.

16.1 	Sec. 13. [340B.15] PACKAGE AND LABELING REQUIREMENTS.
16.2 		Subdivision 1.Retail cannabis store. Prior to the sale of cannabis or a cannabis product, 
16.3 	a retail cannabis store must ensure that cannabis or cannabis products:
16.4 	(1) are properly packaged in compliance with the United States Poison Prevention 
16.5 	Packing Act regarding child-resistant packaging;
16.6 	(2) do not include any false or misleading statements regarding health or physical benefits;
16.7 	(3) are packaged in plain, opaque, tamperproof, and childproof containers without 
16.8 	depictions of the product, cartoons, or images other than the cannabis retail store's logo or 
16.9 	business name;
16.10 	(4) are packaged in containers that are recyclable or reusable, to the extent such containers 
16.11 	are available; and
16.12 	(5) include a symbol or other easily recognizable mark indicating that the package 
16.13 	contains cannabis.
16.14 		Subd. 2.Cannabis product manufacturing facility. A cannabis product manufacturing 
16.15 	facility must affix a label to all cannabis and cannabis products that the cannabis 
16.16 	manufacturing facility transfers to retail cannabis stores. The label must:
16.17 	(1) include the lot number of the cannabis or cannabis product;
16.18 	(2) specify the ingredients and the concentration of tetrahydrocannabinols in the cannabis 
16.19 	or cannabis product;
16.20 	(3) specify the cannabinoid profile of the cannabis or cannabis product;
16.21 	(4) include the license number of the cannabis cultivation facility that grew or produced 
16.22 	the cannabis;
16.23 	(5) include the license number and name of the cannabis product manufacturing facility 
16.24 	that processed the cannabis into cannabis or a cannabis product;
16.25 	(6) include a statement that cannabis may not be legally consumed by persons under the 
16.26 	age of 21;
16.27 	(7) include, for cannabis products, the cannabinoid profile per serving and the number 
16.28 	of servings per package of the cannabis product;
16.29 	(8) include a list of ingredients for cannabis products; and
16.30 	(9) include a universal symbol indicating the package contains cannabis.

17.1 	Sec. 14. [340B.16] PERMIT TO CULTIVATE CANNABIS FOR PERSONAL 
17.2 	CONSUMPTION.
17.3 		Subdivision 1.Cultivation permit required. In order for a person to cultivate cannabis 
17.4 	for personal consumption under section 340B.03 and not for sale to others, a person must 
17.5 	hold a cultivation permit issued by the commissioner.
17.6 		Subd. 2.Application; action on application. (a) An applicant for a cultivation permit 
17.7 	must submit to the commissioner:
17.8 	(1) a completed permit application on forms provided by the commissioner. The permit 
17.9 	application must include:
17.10 	(i) the applicant's name, address, contact information, and date of birth; and
17.11 	(ii) information on the physical location at which the applicant plans to cultivate cannabis 
17.12 	for personal consumption, and steps the applicant will take to ensure that cannabis under 
17.13 	cultivation is not accessible to persons under age 21;
17.14 	(2) a cultivation permit fee of $.......;
17.15 	(3) an accurate photocopy of the applicant's current driver's license or identification card 
17.16 	issued by the state or a tribal government, or an accurate photocopy of the photo page of 
17.17 	the applicant's passport, in order to verify that the applicant is 21 years of age or older;
17.18 	(4) evidence of having completed the training course and passed the examination specified 
17.19 	in subdivision 6 within 90 days prior to submitting the application; and
17.20 	(5) a signed statement by the applicant that the information in the application is true and 
17.21 	correct to the best of the applicant's knowledge and belief.
17.22 	(b) The commissioner shall begin accepting cultivation permit applications no later than 
17.23 	December 1, 2019, and shall begin issuing cultivation permits no later than January 1, 2020. 
17.24 	The commissioner shall approve or deny an application for a cultivation permit within 30 
17.25 	days after receiving the items listed in paragraph (a). If a person's application for a permit 
17.26 	is approved, the commissioner shall assign a cultivation permit number to the person and 
17.27 	shall issue to the person a permit that lists the person's name and date of birth, the cultivation 
17.28 	permit number, the physical location at which the person is authorized to cultivate cannabis 
17.29 	for personal use, and the expiration date of the permit. The commissioner shall provide 
17.30 	written notice to a person specifying the reasons for denial if the person's application is 
17.31 	denied. An application for a cultivation permit shall be denied only if the applicant:
17.32 	(1) did not submit all of the items listed in paragraph (a);
18.1 	(2) submitted false information; or
18.2 	(3) is under age 21.
18.3 	(c) Denial of a cultivation permit is considered a final decision of the commissioner and 
18.4 	is subject to judicial review under chapter 14.
18.5 		Subd. 3.Notification to commissioner. A person holding a cultivation permit must 
18.6 	notify the commissioner of a permanent change in name, address, contact information, or 
18.7 	the physical location at which the person is cultivating cannabis within 30 days after the 
18.8 	change takes place.
18.9 		Subd. 4.Permit expiration and renewal. A cultivation permit issued under this section 
18.10 	is valid for two years and expires two years after the date of issuance. No earlier than 90 
18.11 	days before the permit expires and no later than the expiration date of the permit, a person 
18.12 	holding a cultivation permit may renew the permit by submitting to the commissioner the 
18.13 	items listed in subdivision 2, paragraph (a), clauses (1) and (5), and a cultivation permit 
18.14 	renewal fee of $....... A person holding a cultivation permit who seeks to renew the permit 
18.15 	after the expiration date of the permit, but less than 30 days after the expiration date, may 
18.16 	renew the permit by submitting to the commissioner the items listed in subdivision 2, 
18.17 	paragraph (a), clauses (1) and (5); a cultivation permit renewal fee of $.......; and a late fee 
18.18 	of $....... A person holding a cultivation permit who seeks to renew the permit 30 days or 
18.19 	more after the expiration date of the permit must submit to the commissioner the items listed 
18.20 	in subdivision 2, paragraph (a).
18.21 		Subd. 5.Fees. Cultivation permit fees, cultivation permit renewal fees, and late fees are 
18.22 	nonrefundable. The commissioner shall deposit cultivation permit fees, cultivation permit 
18.23 	renewal fees, and late fees collected under this section into the state government special 
18.24 	revenue fund. Fees collected under this section are appropriated to the commissioner for 
18.25 	purposes of administering this section.
18.26 		Subd. 6.Training course and examination on laws regarding cannabis cultivation 
18.27 	and related cannabis laws. (a) In order to obtain a cultivation permit, a person must have 
18.28 	completed a training course and passed a written or online examination on laws regarding 
18.29 	cannabis cultivation and related cannabis laws. The commissioner must develop the content 
18.30 	of the training course and examination and must make the training course and examination 
18.31 	available to the public in an online format. A cannabis establishment may offer an in-person 
18.32 	training course and examination that includes at least the content developed by the 
18.33 	commissioner.
19.1 	(b) A training course required by this subdivision must provide information on state 
19.2 	laws governing the personal possession and consumption of cannabis, including information 
19.3 	on:
19.4 	(1) illegal conduct regarding the sale, transfer, or consumption of cannabis, including 
19.5 	providing or selling cannabis to persons under age 21 and operating a motor vehicle, aircraft, 
19.6 	train, or motorboat while under the influence of cannabis;
19.7 	(2) limits in state law on the total number of cannabis plants and the number of mature 
19.8 	plants that a person may cultivate at one time;
19.9 	(3) requirements regarding where cannabis may be cultivated, and steps persons 
19.10 	cultivating cannabis must take to ensure cannabis being cultivated is not accessible to persons 
19.11 	under age 21;
19.12 	(4) locations where cannabis consumption is prohibited under state law and locations 
19.13 	where cannabis consumption may be limited by an entity that controls the property; and
19.14 	(5) the authority of a local government to adopt ordinances or regulations governing the 
19.15 	time, place, and manner of cannabis cultivation or the consumption of cannabis or cannabis 
19.16 	products.
19.17 	(c) The examination required by this subdivision must test knowledge of the information 
19.18 	listed in paragraph (b).
19.19 		Subd. 7.Use of permit. A person holding a cultivation permit must maintain the permit 
19.20 	at the physical location at which the person cultivates cannabis and must provide the permit 
19.21 	upon lawful demand of a peace officer, as defined in section 626.84, subdivision 1.
19.22 		Subd. 8.Permit suspension or revocation. The commissioner shall establish grounds 
19.23 	and procedures for revoking or suspending a cultivation permit.

19.24 	Sec. 15. [340B.17] PERSONS UNDER 21; ILLEGAL ACTS.
19.25 		Subdivision 1.Consumption. It is a misdemeanor for a retail cannabis store to permit 
19.26 	any person under the age of 21 years to consume cannabis or cannabis products on the 
19.27 	retailer's premises. As used in this subdivision, "consume" includes the physical condition 
19.28 	of having consumed cannabis or a cannabis product.
19.29 		Subd. 2.Purchasing. (a) It is a petty misdemeanor for any person under the age of 21 
19.30 	years to purchase or attempt to purchase cannabis or a cannabis product from a retail cannabis 
19.31 	store unless under the supervision of a responsible person over the age of 21 for training, 
19.32 	education, or research purposes. Prior notification of the licensing authority is required 
20.1 	unless the supervised cannabis or cannabis product purchase attempt is for professional 
20.2 	research conducted by postsecondary educational institutions or state, county, or local health 
20.3 	departments.
20.4 	(b) It is a misdemeanor for any person to induce a person under the age of 21 years to 
20.5 	purchase or procure cannabis or a cannabis product from a retail cannabis store, or to lend 
20.6 	to or knowingly permit the use of the person's driver's license, permit, Minnesota 
20.7 	identification card, or other form of identification by a person under the age of 21 years for 
20.8 	the purpose of purchasing or attempting to purchase cannabis or a cannabis product from 
20.9 	a retail cannabis store.
20.10 		Subd. 3.Entering licensed premises. It is a petty misdemeanor for a person under the 
20.11 	age of 21 years to enter a retail cannabis store for the purpose of purchasing cannabis or a 
20.12 	cannabis product.
20.13 		Subd. 4.Misrepresentation of age. It is a petty misdemeanor for a person under the 
20.14 	age of 21 years to claim to be 21 years old or older for the purpose of purchasing cannabis 
20.15 	or cannabis products from a retail cannabis store.
20.16 		Subd. 5.Attainment of age. With respect to purchasing, possessing, consuming, selling, 
20.17 	furnishing, and serving cannabis or cannabis products, a person is not 21 years of age until 
20.18 	8:00 a.m. on the day of the person's 21st birthday.
20.19 		Subd. 6.Proof of age; defense; seizure of false identification. (a) Proof of age for 
20.20 	purchasing or consuming cannabis or cannabis products may be established only by one of 
20.21 	the following:
20.22 	(1) a valid driver's license or identification card issued by Minnesota, another state, a 
20.23 	tribal government, or a province of Canada, and including the photograph and date of birth 
20.24 	of the licensed person;
20.25 	(2) a valid military identification card issued by the United States Department of Defense;
20.26 	(3) a valid U.S. passport;
20.27 	(4) a valid instructional permit issued under section 171.05 to a person of legal age to 
20.28 	purchase cannabis or cannabis products, and including a photograph and the date of birth 
20.29 	of the person issued the permit; or
20.30 	(5) in the case of a foreign national, a valid passport.
21.1 	(b) In a prosecution under subdivision 1, it is a defense for the defendant to prove by a 
21.2 	preponderance of the evidence that the defendant reasonably and in good faith relied upon 
21.3 	representations of proof of age authorized in paragraph (a).
21.4 	(c) A retail cannabis store may seize a form of identification listed under paragraph (a) 
21.5 	if the retail cannabis store has reasonable grounds to believe that the form of identification 
21.6 	has been altered or falsified or is being used to violate any law. A retail cannabis store that 
21.7 	seizes a form of identification as authorized under this paragraph must deliver it to a law 
21.8 	enforcement agency within 24 hours of seizure.

21.9 	Sec. 16. [340B.18] LOCAL REGULATIONS.
21.10 	(a) Except as provided in paragraph (b), a local government may adopt ordinances or 
21.11 	regulations to prohibit the establishment of retail cannabis stores or cannabis product 
21.12 	manufacturing facilities in the jurisdiction of local government, or regulations that are more 
21.13 	restrictive than the requirements in this chapter or more restrictive than the requirements 
21.14 	of rules adopted under this chapter, if the governing body of the local government determines 
21.15 	the ordinances or regulations are necessary to protect the public health. A local government 
21.16 	may adopt ordinances or regulations:
21.17 	(1) prohibiting the establishment of retail cannabis stores or cannabis product 
21.18 	manufacturing facilities in the jurisdiction of the local government;
21.19 	(2) governing the time, place, and manner of the cultivation of cannabis or consumption 
21.20 	or use of cannabis, cannabis products, or cannabis accessories;
21.21 	(3) governing the time, place, and manner of the operation of cannabis establishments 
21.22 	and the number of cannabis establishments operating within the jurisdiction of the local 
21.23 	government;
21.24 	(4) establishing civil penalties for a violation of an ordinance or regulation related to 
21.25 	the cultivation of cannabis, consumption of cannabis or cannabis products, or operation of 
21.26 	cannabis establishments; and
21.27 	(5) establishing any other requirements or procedures necessary to regulate the cultivation, 
21.28 	processing, sale, use, or consumption of cannabis and cannabis products in a manner that 
21.29 	protects the public health.
21.30 	(b) A local government shall not adopt a regulation or ordinance to prohibit or establish 
21.31 	criminal penalties for the cultivation, possession, use, or consumption of cannabis, cannabis 
21.32 	products, or cannabis accessories as authorized under this chapter and chapter 152.

22.1 	Sec. 17. [340B.19] CONTRACTS.
22.2 	A contract related to the operation of a cannabis establishment is enforceable. No contract 
22.3 	entered into by a cannabis establishment or an employee or agent of a cannabis establishment, 
22.4 	or by an entity that allows property to be used by a cannabis establishment or an employee 
22.5 	or agent of a cannabis establishment, shall be unenforceable or void on the basis that 
22.6 	cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling, 
22.7 	possessing, or consuming cannabis is prohibited under federal law.

22.8 	Sec. 18. [340B.25] CANNABIS ACCOUNT.
22.9 		Subdivision 1.Creation of account. There is created in the state treasury a cannabis 
22.10 	account in the special revenue fund for deposit of all revenue collected from the retail sales 
22.11 	of cannabis, cannabis products, and cannabis accessories under chapter 297A.
22.12 		Subd. 2.Cannabis account appropriations. (a) The amount necessary to administer 
22.13 	the tax under chapter 297A is appropriated from the cannabis account in the special revenue 
22.14 	fund to the commissioner of revenue.
22.15 	(b) Of the funds remaining in the cannabis account after the appropriation required in 
22.16 	paragraph (a), $10,000,000 each fiscal year is appropriated to the commissioner of 
22.17 	employment and economic development to be distributed as grants for business development. 
22.18 	These grants must be awarded to small businesses, as defined under section 645.445, that 
22.19 	either:
22.20 	(1) employ at least one person with a criminal record; or
22.21 	(2) are located in a historically disadvantaged area, defined as a census tract that has a 
22.22 	poverty rate of at least 20 percent as reported in the most recently completed decennial 
22.23 	census published by the United States Bureau of the Census.
22.24 	(c) Of the funds remaining in the cannabis account after the appropriation required in 
22.25 	paragraph (b), the following amounts are appropriated or transferred each fiscal year as 
22.26 	follows:
22.27 	(1) ten percent is appropriated to the commissioner of human services for mental health 
22.28 	services under chapter 245;
22.29 	(2) ten percent is appropriated to the commissioner of public safety to train peace officers 
22.30 	on how to recognize cannabis impairment;
22.31 	(3) ten percent is appropriated to the commissioner of health to conduct research on the 
22.32 	public health impacts of consuming cannabis and cannabis products;
23.1 	(4) ten percent is appropriated to the commissioner of health for the creation, 
23.2 	implementation, operation, and management of a cannabis education and public health 
23.3 	program that contains:
23.4 	(i) a public health hotline that provides referrals to substance abuse treatment providers, 
23.5 	utilizes evidence-based or research-based public health approaches to minimize any harms 
23.6 	associated with cannabis consumption;
23.7 	(ii) a grant program for community health boards, tribal governments, and other local 
23.8 	community agencies to support development and implementation of coordinated intervention 
23.9 	strategies to prevent and reduce consumption of cannabis and cannabis products by youth; 
23.10 	and
23.11 	(iii) media-based education campaigns across television, Internet, radio, print, and 
23.12 	out-of-home advertising, separately targeting youth and adults, that provide medically and 
23.13 	scientifically accurate information about the health and safety risks posed by the consumption 
23.14 	of cannabis and cannabis products; and
23.15 	(5) 60 percent shall be transferred to the general fund.

23.16 	Sec. 19. APPROPRIATION.
 23.17 	$....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the state 
23.18 	government special revenue fund to the commissioner of health to implement Minnesota 
23.19 	Statutes, chapter 340B.

23.20 	ARTICLE 2
23.21 	TAXATION

23.22 	Section 1. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
23.23 	to read:
23.24 		Subd. 27.Disallowed section 280E expenses; cannabis manufacturers and cannabis 
23.25 	establishments. The amount of expenses disallowed for federal income tax purposes under 
23.26 	section 280E of the Internal Revenue Code as amended through March 31, 2018, is a 
23.27 	subtraction. The subtraction applies to:
23.28 	(1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7, 
23.29 	related to the business of medical cannabis under sections 152.21 to 152.37; and
23.30 	(2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related 
23.31 	to the business of operating as a cannabis establishment.

24.1 	Sec. 2. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
24.2 	to read:
24.3 		Subd. 17.Disallowed section 280E expenses; cannabis manufacturers and cannabis 
24.4 	establishments. The amount of expenses disallowed for federal income tax purposes under 
24.5 	section 280E of the Internal Revenue Code as amended through March 31, 2018, is a 
24.6 	subtraction. The subtraction applies to:
24.7 	(1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7, 
24.8 	related to the business of medical cannabis under sections 152.21 to 152.37; and
24.9 	(2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related 
24.10 	to the business of operating as a cannabis establishment.

24.11 	Sec. 3. Minnesota Statutes 2018, section 297A.61, subdivision 4, is amended to read:
24.12 		Subd. 4.Retail sale. (a) A "retail sale" means:
24.13 	(1) any sale, lease, or rental of tangible personal property for any purpose, other than 
24.14 	resale, sublease, or subrent of items by the purchaser in the normal course of business as 
24.15 	defined in subdivision 21; and
24.16 	(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale 
24.17 	by the purchaser in the normal course of business as defined in subdivision 21.
24.18 	(b) A sale of property used by the owner only by leasing it to others or by holding it in 
24.19 	an effort to lease it, and put to no use by the owner other than resale after the lease or effort 
24.20 	to lease, is a sale of property for resale.
24.21 	(c) A sale of master computer software that is purchased and used to make copies for 
24.22 	sale or lease is a sale of property for resale.
24.23 	(d) A sale of building materials, supplies, and equipment to owners, contractors, 
24.24 	subcontractors, or builders for the erection of buildings or the alteration, repair, or 
24.25 	improvement of real property is a retail sale in whatever quantity sold, whether the sale is 
24.26 	for purposes of resale in the form of real property or otherwise.
24.27 	(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for 
24.28 	installation of the floor covering is a retail sale and not a sale for resale since a sale of floor 
24.29 	covering which includes installation is a contract for the improvement of real property.
24.30 	(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 
24.31 	for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, 
25.1 	plants, sod, trees, and similar items that includes installation is a contract for the improvement 
25.2 	of real property.
25.3 	(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is 
25.4 	not considered a sale of property for resale.
25.5 	(h) A sale of tangible personal property utilized or employed in the furnishing or 
25.6 	providing of services under subdivision 3, paragraph (g), clause (1), including, but not 
25.7 	limited to, property given as promotional items, is a retail sale and is not considered a sale 
25.8 	of property for resale.
25.9 	(i) A sale of tangible personal property used in conducting lawful gambling under chapter 
25.10 	349 or the State Lottery under chapter 349A, including, but not limited to, property given 
25.11 	as promotional items, is a retail sale and is not considered a sale of property for resale.
25.12 	(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense 
25.13 	goods or services, including, but not limited to, coin-operated devices, is a retail sale and 
25.14 	is not considered a sale of property for resale.
25.15 	(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 
25.16 	payment becomes due under the terms of the agreement or the trade practices of the lessor 
25.17 	or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 
25.18 	11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 
25.19 	10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is 
25.20 	executed.
25.21 	(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 
25.22 	title or possession of the tangible personal property.
25.23 	(m) A sale of a bundled transaction in which one or more of the products included in 
25.24 	the bundle is a taxable product is a retail sale, except that if one of the products is a 
25.25 	telecommunication service, ancillary service, Internet access, or audio or video programming 
25.26 	service, and the seller has maintained books and records identifying through reasonable and 
25.27 	verifiable standards the portions of the price that are attributable to the distinct and separately 
25.28 	identifiable products, then the products are not considered part of a bundled transaction. 
25.29 	For purposes of this paragraph:
25.30 	(1) the books and records maintained by the seller must be maintained in the regular 
25.31 	course of business, and do not include books and records created and maintained by the 
25.32 	seller primarily for tax purposes;
26.1 	(2) books and records maintained in the regular course of business include, but are not 
26.2 	limited to, financial statements, general ledgers, invoicing and billing systems and reports, 
26.3 	and reports for regulatory tariffs and other regulatory matters; and
26.4 	(3) books and records are maintained primarily for tax purposes when the books and 
26.5 	records identify taxable and nontaxable portions of the price, but the seller maintains other 
26.6 	books and records that identify different prices attributable to the distinct products included 
26.7 	in the same bundled transaction.
26.8 	(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body 
26.9 	shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail 
26.10 	sale of the paint and materials. The motor vehicle repair or body shop that purchases motor 
26.11 	vehicle repair paint and motor vehicle repair materials for resale must either:
26.12 	(1) separately state each item of paint and each item of materials, and the sales price of 
26.13 	each, on the invoice to the purchaser; or
26.14 	(2) in order to calculate the sales price of the paint and materials, use a method which 
26.15 	estimates the amount and monetary value of the paint and materials used in the repair of 
26.16 	the motor vehicle by multiplying the number of labor hours by a rate of consideration for 
26.17 	the paint and materials used in the repair of the motor vehicle following industry standard 
26.18 	practices that fairly calculate the gross receipts from the retail sale of the motor vehicle 
26.19 	repair paint and motor vehicle repair materials. An industry standard practice fairly calculates 
26.20 	the gross receipts if the sales price of the paint and materials used or consumed in the repair 
26.21 	of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or 
26.22 	body shop business. Under this clause, the invoice must either separately state the "paint 
26.23 	and materials" as a single taxable item, or separately state "paint" as a taxable item and 
26.24 	"materials" as a taxable item. This clause does not apply to wholesale transactions at an 
26.25 	auto auction facility.
26.26 	(o) A sale of specified digital products or other digital products to an end user with or 
26.27 	without rights of permanent use and regardless of whether rights of use are conditioned 
26.28 	upon payment by the purchaser is a retail sale. When a digital code has been purchased that 
26.29 	relates to specified digital products or other digital products, the subsequent receipt of or 
26.30 	access to the related specified digital products or other digital products is not a retail sale.
26.31 	(p) A payment made to a cooperative electric association or public utility as a contribution 
26.32 	in aid of construction is a contract for improvement to real property and is not a retail sale.
26.33 	(q) A sale of cannabis, cannabis products, or cannabis accessories by a retail cannabis 
26.34 	store is a retail sale and is not considered a sale of property for resale.

27.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.2 	December 31, 2021.

27.3 	Sec. 4. Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to 
27.4 	read:
27.5 		Subd. 59.Cannabis. "Cannabis" has the meaning given in section 340B.01, subdivision 
27.6 	2.

27.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.8 	December 31, 2021.

27.9 	Sec. 5. Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to 
27.10 	read:
27.11 		Subd. 60.Cannabis accessory. "Cannabis accessory" has the meaning given in section 
27.12 	340B.01, subdivision 3.

27.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.14 	December 31, 2021.

27.15 	Sec. 6. Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to 
27.16 	read:
27.17 		Subd. 61.Cannabis product. "Cannabis product" has the meaning given in section 
27.18 	340B.01, subdivision 6.

27.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.20 	December 31, 2021.

27.21 	Sec. 7. Minnesota Statutes 2018, section 297A.62, subdivision 1, is amended to read:
27.22 		Subdivision 1.Generally. Except as otherwise provided in subdivision 3 or 3a or in this 
27.23 	chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as defined 
27.24 	in section 297A.61, subdivision 4, made in this state or to a destination in this state by a 
27.25 	person who is required to have or voluntarily obtains a permit under section 297A.83, 
27.26 	subdivision 1.

27.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.28 	December 31, 2021.

28.1 	Sec. 8. Minnesota Statutes 2018, section 297A.62, is amended by adding a subdivision to 
28.2 	read:
28.3 		Subd. 3a.Cannabis rate. A sales tax of ... percent is imposed on the gross receipts from 
28.4 	the retail sales of cannabis, cannabis products, and cannabis accessories in this state.

28.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
28.6 	December 31, 2021.

28.7 	Sec. 9. [297A.9935] LOCAL CANNABIS TAX.
28.8 		Subdivision 1.Authorization. Notwithstanding section 477A.016 or any other law, a 
28.9 	statutory or home rule charter city may by ordinance, and a town may by the affirmative 
28.10 	vote of the governing board of the town at the annual town meeting, or at a special town 
28.11 	meeting, impose a tax of up to ... percent on the gross receipts from the retail sale of cannabis, 
28.12 	cannabis products, or cannabis accessories.
28.13 		Subd. 2.Joint powers agreement. Any statutory or home rule charter city, town, or 
28.14 	county when the county board is acting as a town board with respect to an unorganized 
28.15 	territory, may enter into a joint exercise of powers agreement pursuant to section 471.59 
28.16 	for the purpose of imposing the tax and disposing of its proceeds pursuant to this section.
28.17 		Subd. 3.Collection. The statutory or home rule charter city may agree with the 
28.18 	commissioner of revenue that a tax imposed pursuant to this section shall be collected by 
28.19 	the commissioner together with the tax imposed by this chapter, and subject to the same 
28.20 	interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be 
28.21 	remitted to the city.

28.22 	ARTICLE 3
28.23 	CLEAN INDOOR AIR ACT

28.24 	Section 1. Minnesota Statutes 2018, section 144.413, subdivision 4, is amended to read:
28.25 		Subd. 4.Smoking. "Smoking" means inhaling or exhaling smoke from any lighted cigar, 
28.26 	cigarette, or pipe,; any lighted cannabis; or any other lighted tobacco product, cannabis 
28.27 	product, or plant product. Smoking also includes: (1) carrying a lighted cigar, cigarette, or 
28.28 	pipe,; any lighted cannabis; or any other lighted tobacco product, cannabis product, or plant 
28.29 	product intended for inhalation; and (2) inhaling or exhaling vapor from or any other use 
28.30 	of an electronic delivery device or an electronic cannabis delivery device.

29.1 	Sec. 2. Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to 
29.2 	read:
29.3 		Subd. 6.Cannabis. "Cannabis" has the meaning given in section 340B.01, subdivision 
29.4 	2.

29.5 	Sec. 3. Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to 
29.6 	read:
29.7 		Subd. 7.Cannabis product. "Cannabis product" has the meaning given in section 
29.8 	340B.01, subdivision 6.

29.9 	Sec. 4. Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to 
29.10 	read:
29.11 		Subd. 8.Electronic cannabis delivery device. "Electronic cannabis delivery device" 
29.12 	means any product containing or delivering cannabis or cannabis derivatives that can be 
29.13 	used by a person to simulate smoking in the delivery of cannabis or cannabis derivatives 
29.14 	through inhalation of vapor from the product. Electronic cannabis delivery device includes 
29.15 	any component part of a product, whether or not marketed or sold separately.

29.16 	Sec. 5. Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to 
29.17 	read:
29.18 		Subd. 9.Electronic delivery device. "Electronic delivery device" has the meaning given 
29.19 	in section 609.685, subdivision 1.

29.20 	Sec. 6. Minnesota Statutes 2018, section 144.414, subdivision 2, is amended to read:
29.21 		Subd. 2.Day care premises. (a) Smoking is prohibited in a day care center licensed 
29.22 	under Minnesota Rules, parts 9503.0005 to 9503.0170, or in a family home or in a group 
29.23 	family day care provider home licensed under Minnesota Rules, parts 9502.0300 to 
29.24 	9502.0445, during its hours of operation. The proprietor of a family home or group family 
29.25 	day care provider must disclose to parents or guardians of children cared for on the premises 
29.26 	if the proprietor permits smoking outside of its hours of operation. Disclosure must include 
29.27 	posting on the premises a conspicuous written notice and orally informing parents or 
29.28 	guardians.
29.29 	(b) For purposes of this subdivision, the definition of smoking includes the use of 
29.30 	electronic cigarettes, including the inhaling and exhaling of vapor from any electronic 
29.31 	delivery device as defined in section 609.685, subdivision 1.

30.1 	Sec. 7. Minnesota Statutes 2018, section 144.414, subdivision 3, is amended to read:
30.2 		Subd. 3.Health care facilities and clinics. (a) Smoking is prohibited in any area of a 
30.3 	hospital, health care clinic, doctor's office, licensed residential facility for children, or other 
30.4 	health care-related facility, except that a patient or resident in a nursing home, boarding 
30.5 	care facility, or licensed residential facility for adults may smoke in a designated separate, 
30.6 	enclosed room maintained in accordance with applicable state and federal laws.
30.7 	(b) Except as provided in section 246.0141, smoking by patients in a locked psychiatric 
30.8 	unit may be allowed in a separated well-ventilated area in the unit under a policy established 
30.9 	by the administrator of the program that allows the treating physician to approve smoking 
30.10 	if, in the opinion of the treating physician, the benefits to be gained in obtaining patient 
30.11 	cooperation with treatment outweigh the negative impacts of smoking.
30.12 	(c) For purposes of this subdivision, the definition of smoking includes the use of 
30.13 	electronic cigarettes, including the inhaling and exhaling of vapor from any electronic 
30.14 	delivery device as defined in section 609.685, subdivision 1.

30.15 	Sec. 8. Minnesota Statutes 2018, section 144.4165, is amended to read:
30.16 	144.4165 TOBACCO PRODUCTS, CANNABIS, CANNABIS PRODUCTS, 
30.17 	ELECTRONIC DELIVERY DEVICES, AND ELECTRONIC CANNABIS DELIVERY 
30.18 	DEVICES PROHIBITED IN PUBLIC SCHOOLS.
30.19 		Subdivision 1.Tobacco products; electronic delivery devices. No person shall at any 
30.20 	time smoke, chew, or otherwise ingest tobacco or a tobacco product, or inhale or exhale 
30.21 	vapor from an electronic delivery device as defined in section 609.685, subdivision 1, in a 
30.22 	public school, as defined in section 120A.05, subdivisions 9, 11, and 13, and no person 
30.23 	under the age of 18 shall possess any of these items. This prohibition extends to all facilities, 
30.24 	whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents, 
30.25 	contracts for, or controls. Nothing in this section shall prohibit the lighting of tobacco by 
30.26 	an adult as a part of a traditional Indian spiritual or cultural ceremony. For purposes of this 
30.27 	section, an Indian is a person who is a member of an Indian tribe as defined in section 
30.28 	260.755 subdivision 12.
30.29 		Subd. 2.Cannabis, cannabis products, electronic cannabis delivery devices. Except 
30.30 	as permitted under section 152.345, no person shall at any time engage in any of the following 
30.31 	in a public school, as defined in section 120A.05, subdivisions 9, 11, and 13:
30.32 	(1) smoke, ingest, consume, or otherwise use cannabis or a cannabis product;
30.33 	(2) inhale or exhale vapor from an electronic cannabis delivery device; or
31.1 	(3) possess any of the items listed in clause (1) or (2).

31.2 	Sec. 9. REPEALER.
 31.3 	Minnesota Statutes 2018, section 144.414, subdivision 5, is repealed.

31.4 	ARTICLE 4
31.5 	CONTROLLED SUBSTANCES ACT; EXPUNGEMENT

31.6 	Section 1. Minnesota Statutes 2018, section 152.01, is amended by adding a subdivision 
31.7 	to read:
31.8 		Subd. 9b.Cannabis product. (a) "Cannabis product" has the meaning given in section 
31.9 	340B.01, subdivision 6.
31.10 	(b) When determining the weight of a cannabis product for purposes of this chapter, 
31.11 	only the weight of the cannabis used in the product may be considered.

31.12 	Sec. 2. Minnesota Statutes 2018, section 152.01, is amended by adding a subdivision to 
31.13 	read:
31.14 		Subd. 9c.Consume. "Consume" includes any form of ingestion, introduction, or 
31.15 	absorption into the body, including but not limited to by means of smoking, inhaling, eating, 
31.16 	or application onto the skin.

31.17 	Sec. 3. Minnesota Statutes 2018, section 152.027, subdivision 3, is amended to read:
31.18 		Subd. 3.Possession of a cannabis product or marijuana in a motor vehicle. A person 
31.19 	is guilty of a misdemeanor if the person is the owner of a private motor vehicle, or is the 
31.20 	driver of the motor vehicle if the owner is not present, and possesses on the person, or 
31.21 	knowingly keeps or allows to be kept within the area of the vehicle normally occupied by 
31.22 	the driver or passengers, more than 1.4 grams one ounce of marijuana, more than eight 
31.23 	grams of concentrated cannabis, or cannabis products that cumulatively contain more than 
31.24 	800 milligrams of delta-9 tetrahydrocannabinol. This area of the vehicle does not include 
31.25 	the trunk of the motor vehicle if the vehicle is equipped with a trunk, or another area of the 
31.26 	vehicle not normally occupied by the driver or passengers if the vehicle is not equipped 
31.27 	with a trunk. A utility or glove compartment is deemed to be within the area occupied by 
31.28 	the driver and passengers.

32.1 	Sec. 4. Minnesota Statutes 2018, section 152.027, is amended by adding a subdivision to 
32.2 	read:
32.3 		Subd. 3a.Consumption of cannabis product or marijuana in motor vehicle. A person 
32.4 	is guilty of a misdemeanor if the person consumes a cannabis product or marijuana in a 
32.5 	motor vehicle when the motor vehicle is on a street or highway.

32.6 	Sec. 5. Minnesota Statutes 2018, section 152.027, subdivision 4, is amended to read:
32.7 		Subd. 4.Possession or sale of small amounts of marijuana. (a) Except as provided in 
32.8 	section 152.0965, a person who unlawfully sells a small amount of marijuana for no 
32.9 	remuneration, or who unlawfully possesses a small amount of marijuana is guilty of a petty 
32.10 	misdemeanor and shall be required to participate in a drug education program unless the 
32.11 	court enters a written finding that a drug education program is inappropriate. The program 
32.12 	must be approved by an area mental health board with a curriculum approved by the state 
32.13 	alcohol and drug abuse authority.
32.14 	(b) A person convicted of an unlawful sale under paragraph (a) who is subsequently 
32.15 	convicted of an unlawful sale under paragraph (a) within two years is guilty of a misdemeanor 
32.16 	and shall be required to participate in a chemical dependency evaluation and treatment if 
32.17 	so indicated by the evaluation.
32.18 	(c) A person who is convicted of a petty misdemeanor under paragraph (a) who willfully 
32.19 	and intentionally fails to comply with the sentence imposed, is guilty of a misdemeanor. 
32.20 	Compliance with the terms of the sentence imposed before conviction under this paragraph 
32.21 	is an absolute defense.

32.22 	Sec. 6. Minnesota Statutes 2018, section 152.092, is amended to read:
32.23 	152.092 POSSESSION OF DRUG PARAPHERNALIA PROHIBITED.
32.24 	(a) Except as provided in section 152.0965 or 152.0966, it is unlawful for any person 
32.25 	knowingly or intentionally to use or to possess drug paraphernalia. Any violation of this 
32.26 	section is a petty misdemeanor.
32.27 	(b) A person who violates paragraph (a) and has previously violated paragraph (a) on 
32.28 	two or more occasions has committed a crime and may be sentenced to imprisonment for 
32.29 	up to 90 days or to payment of a fine up to $1,000, or both.

33.1 	Sec. 7. Minnesota Statutes 2018, section 152.093, is amended to read:
33.2 	152.093 MANUFACTURE OR DELIVERY OF DRUG PARAPHERNALIA 
33.3 	PROHIBITED.
33.4 	Except as provided in section 152.0965 or 152.0966, it is unlawful for any person 
33.5 	knowingly or intentionally to deliver drug paraphernalia or knowingly or intentionally to 
33.6 	possess or manufacture drug paraphernalia for delivery. Any violation of this section is a 
33.7 	misdemeanor.

33.8 	Sec. 8. [152.0965] PERSONAL POSSESSION, CONSUMPTION, AND 
33.9 	CULTIVATION OF CANNABIS.
33.10 		Subdivision 1.Definitions. For purposes of this section and section 152.0966:
33.11 	(1) "cannabis," "cannabis accessory," "cannabis cultivation facility," "cannabis product 
33.12 	manufacturing facility," "cannabis testing facility," "cultivation permit," "consumer," 
33.13 	"immature plant," "mature plant," and "retail cannabis store" have the meanings given in 
33.14 	section 340B.01;
33.15 	(2) "concentrated cannabis" means a cannabis concentrate that consists wholly or in part 
33.16 	of resin extracted from any part of the cannabis plant and that has a tetrahydrocannabinol 
33.17 	concentration of greater than ten percent;
33.18 	(3) "electronic cannabis delivery device" means any product containing or delivering 
33.19 	cannabis or cannabis derivatives that can be used by a person to simulate smoking in the 
33.20 	delivery of cannabis or cannabis derivatives through inhalation of vapor from the product. 
33.21 	Electronic cannabis delivery device includes any component part of a product, whether or 
33.22 	not marketed or sold separately;
33.23 	(4) "motor vehicle" has the meaning given in section 169.011, subdivision 42; and
33.24 	(5) "public place" means a public street, highway, alley, sidewalk, or boulevard, or 
33.25 	property owned, leased, or controlled by a governmental unit.
33.26 		Subd. 2.Authorized acts. (a) A person who is 21 years of age or older may:
33.27 	(1) possess or transport one ounce or less of cannabis, eight grams or less of concentrated 
33.28 	cannabis, or cannabis products that cumulatively do not contain more than 800 milligrams 
33.29 	of delta-9 tetrahydrocannabinol;
33.30 	(2) purchase from a retail cannabis store one ounce or less of cannabis, eight grams or 
33.31 	less of concentrated cannabis, or cannabis products that cumulatively do not contain more 
33.32 	than 800 milligrams of delta-9 tetrahydrocannabinol;
34.1 	(3) possess, use, or transport cannabis accessories or purchase cannabis accessories from 
34.2 	a retail cannabis store;
34.3 	(4) possess, cultivate, process, or transport no more than four cannabis plants, with two 
34.4 	or fewer being mature plants and the remaining number being immature plants, provided 
34.5 	the cannabis produced by the plants is not made available for sale and the person possesses 
34.6 	a cultivation permit;
34.7 	(5) transfer one ounce or less of cannabis, eight grams or less of concentrated cannabis, 
34.8 	or cannabis products that cumulatively do not contain more than 800 milligrams of delta-9 
34.9 	tetrahydrocannabinol without remuneration to a person who is 21 years of age or older;
34.10 	(6) consume cannabis or cannabis products, provided that nothing in this section permits 
34.11 	a person to:
34.12 	(i) smoke cannabis or use an electronic cannabis delivery device in violation of sections 
34.13 	144.411 to 144.417; or
34.14 	(ii) consume cannabis or cannabis products or use an electronic cannabis delivery device 
34.15 	in a public place, on private property without the consent of the property owner, or in a 
34.16 	manner that endangers others; and
34.17 	(7) assist another person who is 21 years of age or older in any of the acts described in 
34.18 	clauses (1) to (6).
34.19 	(b) The authorized acts in paragraph (a) shall not be the basis for seizure or forfeiture 
34.20 	of assets.
34.21 		Subd. 3.Prohibited acts. Nothing in this section permits a person to engage in, and 
34.22 	does not prevent the imposition of any civil, criminal, or other penalties for, operating, 
34.23 	navigating, or being in actual physical control of any motor vehicle, aircraft, train, or 
34.24 	motorboat, or working on transportation property, equipment, or facilities while under the 
34.25 	influence of cannabis.

34.26 	Sec. 9. [152.0966] ACTIVITIES RELATED TO COMMERCIAL CULTIVATION, 
34.27 	TRANSPORTATION, MANUFACTURE, AND SALE OF CANNABIS, CANNABIS 
34.28 	PRODUCTS, AND CANNABIS ACCESSORIES.
34.29 	(a) A person who is 21 years of age or older may:
34.30 	(1) manufacture, possess, or purchase cannabis accessories or sell cannabis accessories 
34.31 	to a person who is 21 years of age or older;
35.1 	(2) conduct any of the following activities if the person has a current, valid license to 
35.2 	operate a retail cannabis store or is acting in the person's capacity as an owner, employee, 
35.3 	or agent of a licensed retail cannabis store: possess, display, or transport cannabis or cannabis 
35.4 	products; purchase cannabis from a cannabis cultivation facility; purchase cannabis or 
35.5 	cannabis products from a cannabis product manufacturing facility; or sell cannabis or 
35.6 	cannabis products to consumers;
35.7 	(3) conduct any of the following activities if the person has a current, valid license to 
35.8 	operate a cannabis cultivation facility or is acting in the person's capacity as an owner, 
35.9 	employee, or agent of a licensed cannabis cultivation facility: cultivate, harvest, process, 
35.10 	package, transport, display, or possess cannabis; deliver or transfer cannabis to a cannabis 
35.11 	testing facility; sell cannabis to a cannabis cultivation facility, a cannabis product 
35.12 	manufacturing facility, or a retail cannabis store; or purchase cannabis from a cannabis 
35.13 	cultivation facility;
35.14 	(4) conduct any of the following activities if the person has a current, valid license to 
35.15 	operate a cannabis product manufacturing facility or is acting in the person's capacity as an 
35.16 	owner, employee, or agent of a licensed cannabis product manufacturing facility: package, 
35.17 	process, transport, manufacture, display, or possess cannabis or cannabis products; deliver 
35.18 	or transfer cannabis or cannabis products to a cannabis testing facility; sell cannabis or 
35.19 	cannabis products to a retail cannabis store or a cannabis product manufacturing facility; 
35.20 	purchase cannabis from a cannabis cultivation facility; or purchase cannabis or cannabis 
35.21 	products from a cannabis product manufacturing facility;
35.22 	(5) conduct any of the following activities if the person has a current, valid license to 
35.23 	operate a cannabis testing facility or is acting in the person's capacity as an owner, employee, 
35.24 	or agent of a licensed cannabis testing facility: possess, test, repackage, store, transport, 
35.25 	display, transfer, or deliver cannabis or cannabis products; or
35.26 	(6) lease or otherwise allow the use of property owned, occupied, or controlled by any 
35.27 	person, corporation, or other entity for any of the activities conducted lawfully according 
35.28 	to this section and chapter 340B.
35.29 	(b) The authorized acts in paragraph (a) shall not be the basis for seizure or forfeiture 
35.30 	of assets.

35.31 	Sec. 10. Minnesota Statutes 2018, section 152.27, subdivision 1, is amended to read:
35.32 		Subdivision 1.Patient registry program; establishment. (a) The commissioner shall 
35.33 	establish a patient registry program to evaluate data on patient demographics, effective 
36.1 	treatment options, clinical outcomes, and quality-of-life outcomes for the purpose of reporting 
36.2 	on the benefits, risks, and outcomes regarding patients with a qualifying medical condition 
36.3 	engaged in the therapeutic use of medical cannabis.
36.4 	(b) The establishment of the registry program shall not be construed or interpreted to 
36.5 	condone or promote the illicit recreational use of marijuana cannabis in a manner not 
36.6 	authorized under sections 152.0965 and 152.0966 and chapter 340B.

36.7 	Sec. 11. [609A.05] EXPUNGEMENT OF CERTAIN MARIJUANA OFFENSES.
36.8 		Subdivision 1.Eligibility. Notwithstanding any law to the contrary, a court shall issue 
36.9 	an order of expungement sealing all records relating to an arrest, indictment, information, 
36.10 	trial, or verdict for any person found guilty of an act committed before August 1, 2019, in 
36.11 	violation of:
36.12 	(1) section 152.027, subdivision 3 or 4;
36.13 	(2) Minnesota Statutes 1988, section 152.09, subdivision 1, clause (2), and sentenced 
36.14 	under Minnesota Statutes 1988, section 152.15, subdivision 2, clause (5) or (6); or
36.15 	(3) Minnesota Statutes 1974, section 152.09, with respect to a small amount of marijuana.
36.16 		Subd. 2.Attorney general to identify eligible individuals. On or before January 15, 
36.17 	2020, the attorney general shall consult with the Bureau of Criminal Apprehension and the 
36.18 	judicial branch and identify past convictions that qualify for expungement pursuant to 
36.19 	subdivision 1. The attorney general shall notify the prosecutorial office that had jurisdiction 
36.20 	over the offense of all cases that qualify for expungement, and shall make a reasonable and 
36.21 	good faith effort to notify any individual whose offense qualifies for expungement.
36.22 		Subd. 3.Prosecutorial rights and responsibilities. (a) Upon receipt of the notice 
36.23 	described in subdivision 2, the prosecutorial office that had jurisdiction over the offense 
36.24 	shall have 30 days to review the case to determine whether it meets the requirements of 
36.25 	subdivision 1, send notice of that decision to the court, and make a reasonable and good 
36.26 	faith effort to send notice of that decision to the individual whose offense was identified by 
36.27 	the attorney general.
36.28 	(b) Notice sent under this section shall include the name of the individual who committed 
36.29 	the offense, the date of the offense, and the court case number.
36.30 		Subd. 4.Hearing on petition to expunge. (a) An individual who received notice pursuant 
36.31 	to subdivision 3 stating that the offense committed by the individual is not eligible for 
36.32 	expungement, who received notice pursuant to subdivision 2 and did not receive notice 
37.1 	pursuant to subdivision 3 within 60 days, or who did not receive notice pursuant to this 
37.2 	section on or before March 1, 2020, may file a petition seeking expungement under this 
37.3 	section. The filing fee under section 357.021, subdivision 2, clause (1), shall be waived.
37.4 	(b) The petition for expungement shall be signed under oath by the petitioner and shall 
37.5 	state the following:
37.6 	(1) the petitioner's full name and all other legal names or aliases by which the petitioner 
37.7 	has been known at any time;
37.8 	(2) the petitioner's date of birth; and
37.9 	(3) the date of the offense and the court case number of the offense for which 
37.10 	expungement is sought.
37.11 	(c) The petitioner shall serve by mail the petition for expungement on the prosecutorial 
37.12 	office that had jurisdiction over the offense for which expungement is sought.
37.13 	(d) Unless the prosecutorial office that had jurisdiction over the offense notifies the court 
37.14 	that the offense is eligible for expungement, a hearing on the petition shall be held within 
37.15 	a reasonable time after service of the petition.
37.16 	(e) At a hearing on a petition filed under this section, the court shall determine whether 
37.17 	the offense meets the requirements of subdivision 1.
37.18 	(f) Nothing in this section prevents an individual from filing a petition for expungement 
37.19 	pursuant to any other law.
37.20 		Subd. 5.Order of expungement. (a) Upon receiving notice that an offense qualifies 
37.21 	for expungement from the prosecutorial office that had jurisdiction over the offense, or after 
37.22 	determining that an offense qualifies for expungement following a hearing, the court shall 
37.23 	issue an order sealing all records relating to an arrest, indictment, information, trial, or 
37.24 	verdict.
37.25 	(b) The court administrator shall send a copy of an expungement order to each agency 
37.26 	and jurisdiction whose records are affected by the terms of the order and send a letter to the 
37.27 	person whose offense has been expunged identifying each agency that received the order.
37.28 	(c) Data on the person whose offense has been expunged in a letter sent under this 
37.29 	subdivision are private data on individuals as defined in section 13.02.
37.30 	(d) The effect of an order for expungement under this section is to restore the person, 
37.31 	in the contemplation of the law, to the status the person occupied before the arrest, indictment, 
37.32 	information, trial, or verdict. The person shall not be held guilty of perjury or otherwise of 
38.1 	giving a false statement if the person fails to acknowledge the arrest, indictment, information, 
38.2 	trial, or verdict in response to an inquiry made for any purpose.

38.3 	ARTICLE 5
38.4 	MISCELLANEOUS PROVISIONS

38.5 	Section 1. Minnesota Statutes 2018, section 152.23, is amended to read:
38.6 	152.23 LIMITATIONS.
38.7 	(a) Nothing in sections 152.22 to 152.37 permits any person to engage in and does not 
38.8 	prevent the imposition of any civil, criminal, or other penalties for:
38.9 	(1) undertaking any task under the influence of medical cannabis that would constitute 
38.10 	negligence or professional malpractice;
38.11 	(2) possessing or engaging in the use of medical cannabis:
38.12 	(i) on a school bus or van, except as permitted under section 152.345;
38.13 	(ii) on the grounds of any preschool or primary, elementary, or secondary school, except 
38.14 	as permitted under section 152.345;
38.15 	(iii) in any correctional facility; or
38.16 	(iv) on the grounds of any child care facility or home day care;
38.17 	(3) vaporizing medical cannabis pursuant to section 152.22, subdivision 6:
38.18 	(i) on any form of public transportation;
38.19 	(ii) where the vapor would be inhaled by a nonpatient minor child; or
38.20 	(iii) in any public place, including any indoor or outdoor area used by or open to the 
38.21 	general public or a place of employment as defined under section 144.413, subdivision 1b; 
38.22 	and
38.23 	(4) operating, navigating, or being in actual physical control of any motor vehicle, 
38.24 	aircraft, train, or motorboat, or working on transportation property, equipment, or facilities 
38.25 	while under the influence of medical cannabis.
38.26 	(b) Nothing in sections 152.22 to 152.37 require the medical assistance and 
38.27 	MinnesotaCare programs to reimburse an enrollee or a provider for costs associated with 
38.28 	the medical use of cannabis. Medical assistance and MinnesotaCare shall continue to provide 
38.29 	coverage for all services related to treatment of an enrollee's qualifying medical condition 
38.30 	if the service is covered under chapter 256B or 256L.

39.1 	Sec. 2. [152.345] POSSESSION AND USE OF MEDICAL CANNABIS ON SCHOOL 
39.2 	GROUNDS.
39.3 	(a) A student who is enrolled as a patient in the registry program is permitted to possess 
39.4 	or self-administer medical cannabis, or have medical cannabis administered, on the grounds 
39.5 	of a preschool, elementary school, or secondary school; on a school bus or van; or at a 
39.6 	school-sponsored event if:
39.7 	(1) the student possesses or self-administers medical cannabis, or has medical cannabis 
39.8 	administered, in compliance with policies or guidelines adopted by the school board regarding 
39.9 	possession, storage, administration methods, persons authorized to administer medical 
39.10 	cannabis, and locations for administration; and
39.11 	(2) the medical cannabis is administered or self-administered in a manner that does not 
39.12 	disrupt the educational environment or cause exposure to other students.
39.13 	(b) Only a student who is 18 years of age or older is permitted to self-administer medical 
39.14 	cannabis under this section.

39.15 	Sec. 3. [214.1015] EMPLOYMENT WITH OR PROVIDING SERVICES TO 
39.16 	CANNABIS ESTABLISHMENT.
39.17 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
39.18 	(b) "Cannabis establishment" has the meaning given in section 340B.01, subdivision 5.
39.19 	(c) "Licensing board" means a health-related licensing board, a non-health-related 
39.20 	licensing board, or a state agency that issues an occupational license.
39.21 		Subd. 2.Discipline; denial of licensure prohibited. Notwithstanding any law to the 
39.22 	contrary, a licensing board is prohibited from:
39.23 	(1) taking disciplinary action against a regulated person solely for providing advice or 
39.24 	services to a cannabis establishment licensed under chapter 340B or an entity seeking 
39.25 	licensure as a cannabis establishment under chapter 340B; or
39.26 	(2) denying a license to an applicant for licensure solely because the applicant was 
39.27 	previously employed by a cannabis establishment licensed in this or another state.

APPENDIX 

Repealed Minnesota Statutes: 19-2541 

144.414 PROHIBITIONS.Subd. 5.Electronic cigarettes. 
(a) The use of electronic cigarettes, including the inhaling or exhaling of vapor from any electronic delivery device, as defined in section 609.685, subdivision 1, is prohibited in the following locations: 

(1) any building owned or operated by the state, home rule charter or statutory city, county, township, school district, or other political subdivision; 

(2) any facility owned by Minnesota State Colleges and Universities and the University of Minnesota; 

(3) any facility licensed by the commissioner of human services; or 

(4) any facility licensed by the commissioner of health, but only if the facility is also subject to federal licensing requirements. 

(b) Nothing in this subdivision shall prohibit political subdivisions or businesses from adopting more stringent prohibitions on the use of electronic cigarettes or electronic delivery devices.