HF 2426

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 12:32 p.m.

A bill for an act
relating to commerce; increasing the plant canopy that a medical cannabis
combination business may use to cultivate cannabis that will be sold as medical
cannabis flower or medical cannabinoid products; amending Minnesota Statutes
2024, section 342.515, subdivisions 1, 2, 5, 6; repealing Minnesota Statutes 2024,
section 342.515, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 342.515, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

(a) A person, cooperative, or business holding a
medical cannabis combination business license is prohibited from owning or operating any
other cannabis business or hemp business or holding an active registration agreement under
section 152.25, subdivision 1.

(b) A person or business may hold only one medical cannabis combination business
license.

(c) A medical cannabis combination business license entitles the license holder to perform
any or all of the following within the limits established by this section:

(1) grow cannabis plants from seed or immature plant to mature plant and harvest
adult-use cannabis flower and medical cannabis flower from a mature plant;

(2) make cannabis concentrate;

(3) make hemp concentrate, including hemp concentrate with a delta-9
tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

(4) manufacture artificially derived cannabinoids;

(5) manufacture medical cannabinoid products;

(6) manufacture adult-use cannabis products, lower-potency hemp edibles, and
hemp-derived consumer products for public consumption;

(7) purchase immature cannabis plants and seedlings and cannabis flower from a cannabis
microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler,
or another medical cannabis combination business;

(8) purchase hemp plant parts and propagules from an industrial hemp grower licensed
under chapter 18K;

(9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids
from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a
cannabis wholesaler, or another medical cannabis combination business;

(10) purchase hemp concentrate from an industrial hemp processor licensed under chapter
18K;

(11) new text begin manufacture, new text end package new text begin , new text end and label medical cannabis flower and medical cannabinoid
products for sale to cannabis businesses with a medical cannabis processor endorsement,
cannabis businesses with a medical cannabis retail endorsement, other medical cannabis
combination businesses, and persons in the registry program;

(12) new text begin transport and deliver medical cannabis and medical cannabinoid products to medical
cannabis processors, medical cannabis retailers, other medical cannabis combination
businesses, patients enrolled in the registry program, registered designated caregivers, and
parents, legal guardians, and spouses of an enrolled patient;
new text end

new text begin (13) manufacture, new text end package new text begin , new text end and label adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, and hemp-derived consumer products for sale to
customers new text begin and other cannabis businesses new text end ;

deleted text begin (13) deleted text end new text begin (14) new text end sell medical cannabis flower and medical cannabinoid products to new text begin cannabis
processors, medical cannabis retailers, other medical cannabis combination businesses, and new text end
patients enrolled in the registry program, registered designated caregivers, and parents, legal
guardians, and spouses of an enrolled patient;

deleted text begin (14) deleted text end new text begin (15) new text end sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use
cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and
other products authorized by law to other cannabis businesses and to customers; deleted text begin and
deleted text end

new text begin (16) transport and deliver immature cannabis plants and seedlings, adult-use cannabis
flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer
products, and other products authorized by law to other cannabis businesses and to customers;
and
new text end

deleted text begin (15) deleted text end new text begin (17) new text end perform other actions approved by the office.

(d) A medical cannabis combination business is not required to obtain a medical cannabis
endorsement to perform any actions authorized under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, section 342.515, subdivision 2, is amended to read:

Subd. 2.

Cultivation; size limitations.

(a) new text begin Subject to paragraph (b), new text end a medical cannabis
combination business may cultivate cannabis deleted text begin to be sold as medical cannabis flower or used
in medical cannabinoid products deleted text end in an area of up to deleted text begin 60,000 deleted text end new text begin 90,000 new text end square feet of plant
canopy deleted text begin subject to the limits on adult-use cannabis cultivation in paragraph (c) deleted text end . A medical
cannabis combination business may cultivate cannabis and manufacture cannabis in more
than one location, except the aggregate total of plant canopy in all locations must count
toward the business' canopy limit.

(b) deleted text begin A medical cannabis combination business may cultivate cannabis to be sold as
adult-use cannabis flower or used in adult-use cannabis products in an area authorized by
the office as described in paragraph (c). deleted text end new text begin Notwithstanding paragraph (a), a medical cannabis
combination business may request an increase in the area of plant canopy in which a medical
cannabis combination business is authorized to cultivate cannabis. The office shall increase
the area of plant canopy upon a showing by the medical cannabis business of:
new text end

new text begin (1) the legitimate market need for additional cannabis production;
new text end

new text begin (2) the medical cannabis combination business's ability to meet all requirements and
commitments contained in the business's license application;
new text end

new text begin (3) the medical cannabis combination business's ability to cultivate additional cannabis
at the square footage requested; and
new text end

new text begin (4) the medical cannabis combination business's history of compliance with subdivision
6.
new text end

deleted text begin (c) The office shall authorize a medical cannabis combination business to cultivate
cannabis for sale in the adult-use market in an area of plant canopy that is equal to one-half
of the area the business used to cultivate cannabis sold in the medical market in the preceding
year. The office shall establish an annual verification and authorization procedure. The
office may increase the area of plant canopy in which a medical cannabis combination
business is authorized to cultivate cannabis for sale in the adult-use market between
authorization periods if the business demonstrates a significant increase in the sale of medical
cannabis and medical cannabis products.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2024, section 342.515, subdivision 5, is amended to read:

Subd. 5.

Failure to participate; suspension or revocation of license.

new text begin (a) A medical
cannabis combination business must provide a reliable, ongoing supply of medical cannabis
to the registry program through cultivation by the manufacturer or through the purchase of
cannabis flower and medical cannabinoid products.
new text end

new text begin (b) new text end The office may suspend or revoke a medical cannabis combination business license
if the office new text begin reasonably new text end determines that the business is no longer actively participating in
the medical cannabis market. deleted text begin The office may, by rule, establish minimum requirements
related to cannabis cultivation, manufacturing of medical cannabinoid products, retail sales
of medical cannabis flower and medical cannabinoid products, and other relevant criteria
to demonstrate active participation in the medical cannabis market.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 342.515, subdivision 6, is amended to read:

Subd. 6.

Operations.

A medical cannabis combination business must comply with the
relevant requirements of sections 342.25, 342.26, 342.27, new text begin 342.35, 342.41, 342.42, new text end and
342.51, subdivisions 2 to 5.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 342.515, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: 25-01280

342.515 MEDICAL CANNABIS COMBINATION BUSINESSES.

Subd. 3.

Manufacturing; size limitations.

The office may establish limits on cannabis manufacturing that are consistent with the area of plant canopy a business is authorized to cultivate.