SF 2791

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/18/2025 03:16 p.m.

A bill for an act
relating to cannabis; modifying use of proceeds from the cannabis gross receipts
tax; establishing the cannabis youth grant program; requiring a report; amending
Minnesota Statutes 2024, section 295.81, subdivision 10; proposing coding for
new law in Minnesota Statutes, chapter 342.

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

Section 1.

Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:

Subd. 10.

Deposit of revenues; account established.

(a) The commissioner must deposit
the revenues, including penalties and interest, derived from the tax imposed by this section
as follows:

(1) 80 percent to the general fund; and

(2) 20 percent to the local government cannabis aid account in the special revenue fund.

(b) The local government cannabis aid account is established in the special revenue fund.

new text begin (c) Of the amount deposited under paragraph (a), clause (1), ten percent is annually
appropriated to the commissioner of children, youth, and families for the cannabis youth
grant program under section 342.71.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received after June 30,
2025.
new text end

Sec. 2.

new text begin [342.71] CANNABIS YOUTH GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The office must establish a cannabis youth grant program
to award grants to programs that promote positive youth development, young people's
self-sufficient transition into adulthood, and young people's health.
new text end

new text begin Subd. 2. new text end

new text begin Eligible programs. new text end

new text begin (a) Cannabis youth grants must be awarded to programs
that do at least one of the following:
new text end

new text begin (1) provide high quality after-school, summer, or youth employment, training, and
entrepreneurship opportunities as a primary prevention and skill-building strategy;
new text end

new text begin (2) employ peer-led youth education and mentorship programs that equip young people
with accurate information, leadership skills, and decision-making tools that mitigate cannabis
use; or
new text end

new text begin (3) invest in youth-led restorative justice initiatives that address past harms of cannabis
criminalization and promote positive community engagement.
new text end

new text begin (b) Cannabis youth grants must be awarded to programs with the following goals:
new text end

new text begin (1) building young people's financial management, employment, and entrepreneurship
skills;
new text end

new text begin (2) improving mental health and young people's sense of belonging in community;
new text end

new text begin (3) preventing early use of cannabis and other controlled substances; and
new text end

new text begin (4) building young people's community engagement and leadership skills.
new text end

new text begin (c) The cannabis youth grant program must prioritize communities disproportionately
impacted by cannabis-related criminalization while ensuring statewide distribution.
new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin Eligible programs must apply for cannabis youth grants on forms
prescribed by the office, describing how the program meets the eligibility requirements in
subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin The office must submit a report to the chairs and
ranking minority members of the legislative committees with jurisdiction over cannabis
that details the cannabis youth grants awarded, including the amount of money awarded,
the use of grant money, and the programs awarded grants.
new text end