HF 4203

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:11 a.m.

KEY: ~~stricken~~ = removed, old language.

underscored = added, new language.

Version List HF4203 Authors and Status

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Introduction PDF	Posted on 03/12/2026

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A bill for an act
relating to cannabis; modifying studies and an annual market analysis conducted
by the Office of Cannabis Management; requiring reports; amending Minnesota
Statutes 2025 Supplement, section 342.04.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 342.04, is amended to read:

342.04 STUDIES; REPORTS.

new text begin Subdivision 1. new text end

new text begin Studies required. new text end

(a) The office shall conduct a study to determine the
expected size and growth of the regulated cannabis industry and hemp consumer industry,
including an estimate of the demand for cannabis flower and cannabis products, the number
and geographic distribution of cannabis businesses needed to meet that demand, and the
anticipated business from residents of other states.

(b) The office shall conduct a study to determine the size of the illicit cannabis market,
the sources of illicit cannabis flower and illicit cannabis products in the state, the locations
of citations issued and arrests made for cannabis offenses, and the subareas, such as census
tracts or neighborhoods, that experience a disproportionately large amount of cannabis
enforcement.

(1) the number of accidents involving one or more drivers who admitted to using cannabis
flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products,
or who tested positive for cannabis or tetrahydrocannabinol;

(2) the number of arrests of individuals for impaired driving in which the individual
tested positive for cannabis or tetrahydrocannabinol; and

(3) the number of convictions for driving under the influence of cannabis flower, cannabis
products, lower-potency hemp edibles, hemp-derived consumer products, or
tetrahydrocannabinol.

(d) The office shall provide preliminary reports on the studies conducted pursuant to
paragraphs (a) to (c) to the legislature by January 15, 2024, and shall provide final reports
to the legislature by January 15, 2025. The reports may be consolidated into a single report
by the office.

deleted text begin (e) The office shall collect existing data from the Department of Human Services,
Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals
licensed under chapter deleted text end deleted text begin 144 deleted text end deleted text begin on the utilization of mental health and substance use disorder
services, emergency room visits, and commitments to identify any increase in the services
provided or any increase in the number of visits or commitments. The office shall also obtain
summary data from existing first episode psychosis programs on the number of persons
served by the programs and number of persons on the waiting list. All information collected
by the office under this paragraph shall be included in the report required under paragraph
(f).
deleted text end

new text begin Subd. 2. new text end

new text begin Annual market analysis. new text end

deleted text begin (f)deleted text end new text begin (a)new text end The office shall conduct an annual market
analysis on the status of the regulated cannabis industry deleted text begin and submit a report of the findingsdeleted text end .
new text begin An annual market analysis under this subdivision must include:
new text end

new text begin (1) the number of licenses issued by the office;
new text end

new text begin (2) recommendations on the number of licenses that the office should make available;
new text end

new text begin (3) information about the stability of the regulated market, including an assessment of
the available supply and whether the supply is sufficient for consumer demand in the state;
new text end

new text begin (4) the impact of unregulated sales of cannabis flower and cannabis products on the
regulated market; and
new text end

new text begin (5) the integrity of the medical cannabis patient registry program.
new text end

new text begin (b) The office may solicit the input of consumers, market stakeholders, and potential
new applicants for the annual market analysis under paragraph (a). new text end The office shall submit
the deleted text begin report by January 15, 2025, and each January 15 thereafter and the report may be
combined with the annual report submitted by the office. The process of completing the
market analysis must include holding public meetings to solicit the input of consumers,
market stakeholders, and potential new applicants and must include an assessment as to
whether the office has issued the necessary number of licenses in order to:deleted text end new text begin annual market
analysis under paragraph (a) as part of the annual report required in subdivision 3.
new text end

deleted text begin (1) ensure the sufficient supply of cannabis flower and cannabis products to meet demand;
deleted text end

deleted text begin (2) provide market stability;
deleted text end

deleted text begin (3) ensure a competitive market; and
deleted text end

deleted text begin (4) limit the sale of unregulated cannabis flower and cannabis products.
deleted text end

new text begin Subd. 3. new text end

new text begin Annual report required. new text end

deleted text begin (g)deleted text end new text begin (a)new text end The office shall submit an annual report to
the legislature by January 15deleted text begin , 2024, anddeleted text end each deleted text begin January 15 thereafterdeleted text end new text begin yearnew text end . The annual report
deleted text begin shalldeleted text end new text begin mustnew text end include but not be limited to the following:

(1) the status of the regulated cannabis industry;

(2) the status of the illicit cannabis market deleted text begin anddeleted text end new text begin ;
new text end

new text begin (3) the status of thenew text end hemp consumer industry;

deleted text begin (3) the number of accidents, arrests, and convictions involving drivers who admitted to
using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products or who tested positive for cannabis or tetrahydrocannabinol;
deleted text end

(4) the change in potency, if any, of cannabis flower and cannabis products available
through the regulated market;

(5) progress on providing opportunities to individuals and communities that experienced
a disproportionate, negative impact from cannabis prohibition, including but not limited to
providing relief from criminal convictions and increasing economic opportunities;

(6) the status of racial and geographic diversity in the cannabis industry;new text begin and
new text end

(7) proposed legislative changes, including but not limited to recommendations to
streamline licensing systems and related administrative processesdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (8) information on the adverse effects of second-hand smoke from any cannabis flower,
cannabis products, and hemp-derived consumer products that are consumed by the
combustion or vaporization of the product and the inhalation of smoke, aerosol, or vapor
from the product; and
deleted text end

deleted text begin (9) recommendations for the levels of funding for:
deleted text end

deleted text begin (i) a coordinated education program to address and raise public awareness about the top
three adverse health effects, as determined by the commissioner of health, associated with
the use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products by individuals under 21 years of age;
deleted text end

deleted text begin (ii) a coordinated education program to educate pregnant individuals, breastfeeding
individuals, and individuals who may become pregnant on the adverse health effects of
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
products;
deleted text end

deleted text begin (iii) training, technical assistance, and educational materials for home visiting programs,
Tribal home visiting programs, and child welfare workers regarding safe and unsafe use of
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
products in homes with infants and young children;
deleted text end

deleted text begin (iv) model programs to educate middle school and high school students on the health
effects on children and adolescents of the use of cannabis flower, cannabis products,
lower-potency hemp edibles, hemp-derived consumer products, and other intoxicating or
controlled substances;
deleted text end

deleted text begin (v) grants issued through the CanTrain, CanNavigate, CanStartup, and CanGrow
programs;
deleted text end

deleted text begin (vi) grants to organizations for community development in social equity communities
through the CanRenew program;
deleted text end

deleted text begin (vii) training of peace officers and law enforcement agencies on changes to laws involving
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
products and the law's impact on searches and seizures;
deleted text end

deleted text begin (viii) training of peace officers to increase the number of drug recognition experts;
deleted text end

deleted text begin (ix) training of peace officers on the cultural uses of sage and distinguishing use of sage
from the use of cannabis flower, including whether the Board of Peace Officer Standards
and Training should approve or develop training materials;
deleted text end

deleted text begin (x) the retirement and replacement of drug detection canines; and
deleted text end

deleted text begin (xi) the Department of Human Services and county social service agencies to address
any increase in demand for services.
deleted text end

deleted text begin (g) In developing the recommended funding levels under paragraph (f), clause (9), items
(vii) to (xi), the office shall consult with local law enforcement agencies, the Minnesota
Chiefs of Police Association, the Minnesota Sheriff's Association, the League of Minnesota
Cities, the Association of Minnesota Counties, and county social services agencies.
deleted text end

new text begin (b) The annual report under this subdivision must include:
new text end

new text begin (1) an assessment of available data and updated information regarding the impact of
cannabis use on impaired driving;
new text end

new text begin (2) an assessment of available data and updated information regarding the impact of the
adverse effects of secondhand smoke from cannabis flower and cannabis products;
new text end

new text begin (3) updated information from the Department of Human Services, Department of Health,
Direct Care and Treatment, Minnesota state courts, and hospitals licensed under chapter
144 regarding the utilization of mental health and substance use disorder services, emergency
room visits, and civil commitments; and
new text end

new text begin (4) updated information about existing summary data on first episode psychosis programs.
new text end

new text begin Subd. 4. new text end

new text begin Collaboration with other agencies and organizations. new text end

new text begin The office must
collaborate with state agencies and leading organizations with expertise on cannabis-related
programs to support education, prevention, and public safety initiatives, including:
new text end

new text begin (1) the Department of Employment and Economic Development;
new text end

new text begin (2) the Department of Health;
new text end

new text begin (3) the Department of Public Safety;
new text end

new text begin (4) the Department of Education;
new text end

new text begin (5) the Department of Human Services;
new text end

new text begin (6) the Department of Children, Youth, and Families;
new text end

new text begin (7) Direct Care and Treatment;
new text end

new text begin (8) local government organizations;
new text end

new text begin (9) law enforcement agencies; and
new text end

new text begin (10) county social service agencies.
new text end

Office of the Revisor of Statutes