SF 4542

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/27/2026 11:48 a.m.

A bill for an act
relating to cannabis; modifying cannabis event provisions; amending Minnesota
Statutes 2024, sections 342.39, as amended; 342.40, subdivision 1; Minnesota
Statutes 2025 Supplement, sections 342.11; 342.40, subdivision 7; 342.46,
subdivision 8.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 342.11, is amended to read:

342.11 LICENSES; FEES.

(a) The office shall require the payment of application fees, initial licensing fees, and
renewal licensing fees as provided in this section. The initial license fee shall include the
fee for initial issuance of the license and the first annual renewal. The renewal fee shall be
charged at the time of the second renewal and each subsequent annual renewal thereafter.
Nothing in this section prohibits a local unit of government from charging the retailer
registration fee established in section 342.22. Application fees, initial licensing fees, and
renewal licensing fees are nonrefundable.

(b) Application and licensing fees shall be as follows:

(1) for a cannabis microbusiness:

(i) an application fee of $500;

(ii) an initial license fee of $0; and

(iii) a renewal license fee of $2,000;

(2) for a cannabis mezzobusiness:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(3) for a cannabis cultivator:

(i) an application fee of $10,000;

(ii) an initial license fee of $20,000; and

(iii) a renewal license fee of $30,000;

(4) for a cannabis manufacturer:

(i) an application fee of $10,000;

(ii) an initial license fee of $10,000; and

(iii) a renewal license fee of $20,000;

(5) for a cannabis retailer:

(i) an application fee of $2,500;

(ii) an initial license fee of $2,500; and

(iii) a renewal license fee of $5,000;

(6) for a cannabis wholesaler:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(7) for a cannabis transporter:

(i) an application fee of $250;

(ii) an initial license fee of $500; and

(iii) a renewal license fee of $1,000;

(8) for a cannabis testing facility:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(9) for a cannabis delivery service:

(i) an application fee of $250;

(ii) an initial license fee of $500; and

(iii) a renewal license fee of $1,000;

(10) for a cannabis event organizer:

(i) an application fee of $750; deleted text begin and
deleted text end

(ii) an initial license fee of deleted text begin $750 deleted text end new text begin $0 new text end ;

new text begin (iii) a renewal license fee of $750; and
new text end

new text begin (iv) a temporary cannabis event application fee of $750;
new text end

(11) for a lower-potency hemp edible manufacturer:

(i) an application fee of $250;

(ii) an initial license fee of $1,000; and

(iii) a renewal license fee of $1,000;

(12) for a lower-potency hemp edible wholesaler:

(i) an application fee of $250;

(ii) an initial license fee of $10,000; and

(iii) a renewal license fee of $10,000;

(13) for a lower-potency hemp edible retailer:

(i) an application fee of $250 or, if the lower-potency hemp retailer operates more than
one retail location, $250 per retail location;

(ii) an initial license fee of $250 or, if the lower-potency hemp retailer operates more
than one retail location, $250 per retail location; and

(iii) a renewal license fee of $250 or, if the lower-potency hemp retailer operates more
than one retail location, $250 per retail location; and

(14) for a medical cannabis combination business:

(i) an application fee of $10,000;

(ii) an initial license fee of $20,000; and

(iii) a renewal license fee of $70,000.

Sec. 2.

Minnesota Statutes 2024, section 342.39, as amended by Laws 2025 chapter 31,
section 66, is amended to read:

342.39 CANNABIS EVENT ORGANIZER LICENSING.

Subdivision 1.

Authorized actions.

new text begin (a) new text end A cannabis event organizer license entitles the
license holder to organize deleted text begin a deleted text end temporary cannabis new text begin events, with each new text end event lasting no more
than four days new text begin , and perform other actions approved by the office new text end .

new text begin (b) For each temporary cannabis event, the license holder is required to submit additional
information pursuant to section 342.40.
new text end

Subd. 2.

Additional information required.

(a) In addition to the information required
to be submitted under section 342.14, subdivision 1, and rules adopted pursuant to that
section, a person, cooperative, or business seeking a cannabis event organizer license must
submit the following information in a form approved by the office:

(1) the type and number of any other cannabis business license held by the applicant;

deleted text begin (2) the address and location where the temporary cannabis event will take place;
deleted text end

deleted text begin (3) the name of the temporary cannabis event;
deleted text end

deleted text begin (4) a diagram of the physical layout of the temporary cannabis event showing where the
event will take place on the grounds, all entrances and exits that will be used by participants
during the event, all cannabis consumption areas, all cannabis retail areas where cannabis
flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products
will be sold, the location where cannabis waste will be stored, and any location where
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
products will be stored;
deleted text end

deleted text begin (5) a list of the name, number, and type of cannabis businesses and hemp businesses
that will sell cannabis plants, adult-use cannabis flower, adult-use cannabis products,
lower-potency hemp edibles, and hemp-derived consumer products at the event, which may
be supplemented or amended within 72 hours of the time at which the cannabis event begins;
deleted text end

deleted text begin (6) the dates and hours during which the cannabis event will take place;
deleted text end

deleted text begin (7) proof of local approval for the cannabis event; and
deleted text end

deleted text begin (8) evidence that the business will comply with the applicable operation requirements
for the license being sought.
deleted text end

deleted text begin (b) A person, cooperative, or business seeking a cannabis event organizer license may
also disclose whether the person or any officer, director, manager, and general partner of a
cannabis business is serving or has previously served in the military.
deleted text end

new text begin (2) a description of the applicant's process for planning and organizing cannabis events,
including:
new text end

new text begin (i) the applicant's method of selecting a venue;
new text end

new text begin (ii) the applicant's method of coordinating with and overseeing vendors that participate
in cannabis events; and
new text end

new text begin (iii) criteria that the applicant will use for selecting cannabis and hemp businesses to
participate in cannabis events;
new text end

new text begin (3) a description of security measures and protocols that the applicant will use, including:
new text end

new text begin (i) the process that the applicant will use for hiring and contracting with licensed security
personnel;
new text end

new text begin (ii) the method that the applicant will use to ensure that security personnel do not consume
cannabis or hemp products before or during cannabis events;
new text end

new text begin (iii) the method that the applicant will use for managing and controlling crowds at
cannabis events;
new text end

new text begin (iv) the method that the applicant will use to ensure that access to an event is limited to
individuals who are at least 21 years of age; and
new text end

new text begin (v) the method that the applicant will use for managing access to consumption and retail
areas;
new text end

new text begin (4) a description of how the applicant will comply with state and local laws and rules at
each cannabis event, including:
new text end

new text begin (i) the applicant's method of verifying that each participating business has a valid license
issued by the office;
new text end

new text begin (ii) the applicant's method for ensuring that cannabis products are only sold by licensed
retailers in designated retail areas; and
new text end

new text begin (iii) the applicant's methods for handling any violations of this chapter or Minnesota
Rules at cannabis events;
new text end

new text begin (5) the applicant's procedures for protecting the health and safety of event participants,
including:
new text end

new text begin (i) emergency response plans, fire safety protocols, and the availability of medical
assistance devices in the case of a medical emergency; and
new text end

new text begin (ii) guidelines for managing consumption areas to prevent over-intoxication and other
health risks;
new text end

new text begin (6) the applicant's procedures for working with licensed cannabis transporters to handle
the transportation of cannabis plants, products, and related items to and from events;
new text end

new text begin (7) the applicant's management and disposal of cannabis waste in compliance with state
laws and rules, including methods for securely collecting, storing, and transporting cannabis
waste from each event site; and
new text end

new text begin (8) the applicant's methods for reporting and documenting cannabis events to regulators
for inspections and post-event evaluations.
new text end

new text begin (b) Any commitment or statement that the applicant makes in an application to the office
is an ongoing material condition of maintaining and renewing the applicant's cannabis event
organizer license.
new text end

new text begin (c) An application for a cannabis event organizer license is not required to include the
information required under section 342.14, subdivision 1, paragraph (a), clauses (5), (6),
(9), and (10).
new text end

new text begin Subd. 2a. new text end

new text begin Attestation required. new text end

new text begin When renewing a cannabis event organizer license, a
cannabis event organizer license holder with ten or more full-time equivalent employees
must submit to the office an attestation signed by a bona fide labor organization stating that
the applicant has entered into a labor peace agreement.
new text end

Subd. 3.

Multiple licenses; limits.

(a) A person, cooperative, or business holding a
cannabis event organizer license may not hold a cannabis testing facility license deleted text begin , a
lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler
license, or a lower-potency hemp edible retailer license deleted text end .

(b) The office by rule may limit the number of cannabis event licenses that a person or
business may hold.

(c) For purposes of this subdivision, restrictions on the number or type of license that a
business may hold apply to every cooperative member or every director, manager, and
general partner of a cannabis business.

Sec. 3.

Minnesota Statutes 2024, section 342.40, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Local deleted text end new text begin Temporary event new text end approval.

new text begin (a) To host a temporary cannabis
event under this section, new text end a cannabis event organizer must deleted text begin receive deleted text end new text begin submit a site registration
with the following information to the office in a form approved by the office:
new text end

new text begin (1) proof that the event has received new text end local approval, including deleted text begin obtaining deleted text end new text begin proof that the
cannabis event organizer has obtained new text end any necessary permits or licenses issued by a local
unit of government deleted text begin , before holding a cannabis event. deleted text end new text begin ;
new text end

new text begin (2) the address and location where the temporary cannabis event will take place;
new text end

new text begin (3) the name of the temporary cannabis event;
new text end

new text begin (4) a diagram of the physical layout of the temporary cannabis event showing where the
event will take place on the grounds; all entrances and exits that will be used by participants
during the event; all cannabis consumption areas; all cannabis retail areas where cannabis
flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products
will be sold; the location where cannabis waste will be stored; and any location where
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
products will be stored;
new text end

new text begin (5) a list that includes: (i) the name of each cannabis business and hemp business that
will sell cannabis plants, adult-use cannabis flower, adult-use cannabis products,
lower-potency hemp edibles, and hemp-derived consumer products at the temporary cannabis
event; (ii) the type of each business participating in the temporary cannabis event; and (iii)
the number of businesses participating in the temporary cannabis event. The list may be
amended up to 72 hours before the temporary cannabis event begins;
new text end

new text begin (6) the dates and hours during which the temporary cannabis event will take place; and
new text end

new text begin (7) evidence that the cannabis event organizer will comply with all applicable operation
requirements.
new text end

new text begin (b) Upon review of the temporary cannabis event application materials submitted by the
license holder, the office may deny a temporary cannabis event if:
new text end

new text begin (1) the application is incomplete;
new text end

new text begin (2) the temporary cannabis event does not have local approval;
new text end

new text begin (3) the application contains a materially false statement about the applicant or omits
information required under subdivision 1;
new text end

new text begin (4) the license holder fails to pay the applicable application fee in section 342.11,
paragraph (b), clause (10), item (iv); and
new text end

new text begin (5) the license holder fails to pass any applicable site inspection for the temporary
cannabis event.
new text end

new text begin (c) The office may request additional information from any applicant if the office
determines that the information is necessary to review or process the application. If the
applicant does not provide the additional requested information within seven calendar days
of the office's request for information, the office may deny the application.
new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 342.40, subdivision 7, is amended
to read:

Subd. 7.

Cannabis event sales.

(a) Cannabis microbusinesses with a retail endorsement,
cannabis mezzobusinesses with a retail endorsement, cannabis retailers, medical cannabis
combination businesses operating a retail location, and lower-potency hemp edible retailers,
including the cannabis event organizer, may be authorized to sell cannabis plants, adult-use
cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products to customers at a cannabis event.

(b) All sales of cannabis plants, adult-use cannabis flower, adult-use cannabis products,
lower-potency hemp edibles, and hemp-derived consumer products at a cannabis event must
take place in a retail area as designated in the premises diagram.

(c) Authorized retailers may only conduct sales within their specifically assigned area.

(d) Authorized retailers must verify the age of all customers pursuant to section 342.27,
subdivision 4, before completing a sale and may not sell cannabis plants, adult-use cannabis
flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products to an individual under 21 years of age.

(e) Authorized retailers may display one sample of each type of cannabis plant, adult-use
cannabis flower, adult-use cannabis product, lower-potency hemp edible, and hemp-derived
consumer product available for sale. new text begin Display new text end samples of adult-use cannabis and adult-use
cannabis products must be stored in a sample jar or display case and be accompanied by a
label or notice containing the information required to be affixed to the packaging or container
containing adult-use cannabis flower and adult-use cannabis products sold to customers. A
new text begin display new text end sample may not consist of more than eight grams of adult-use cannabis flower or
adult-use cannabis concentrate, or an edible cannabis product infused with more than 100
milligrams of tetrahydrocannabinol. A cannabis retailer may allow customers to smell the
adult-use cannabis flower or adult-use cannabis product before purchase.

(f) The notice requirements under section 342.27, subdivision 6, apply to authorized
retailers offering cannabis plants, adult-use cannabis flower, adult-use cannabinoid products,
and hemp-derived consumer products for sale at a cannabis event.

(g) Authorized retailers may not:

(1) sell adult-use cannabis flower, adult-use cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products to a person who is visibly intoxicated;

(2) knowingly sell more cannabis plants, adult-use cannabis flower, adult-use cannabis
products, lower-potency hemp edibles, or hemp-derived consumer products than a customer
is legally permitted to possess;

(3) sell medical cannabis flower or medical cannabinoid products; or

(4) allow for the dispensing of cannabis plants, cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products in vending machines.

(h) Except for new text begin display new text end samples of a cannabis plant, adult-use cannabis flower, adult-use
cannabis product, lower-potency hemp edible, and hemp-derived consumer product, all
cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency
hemp edibles, and hemp-derived consumer products for sale at a cannabis event must be
stored in a secure, locked container that is not accessible to the public. Such items being
stored at a cannabis event shall not be left unattended.

(i) All cannabis plants, adult-use cannabis flower, adult-use cannabis products,
lower-potency hemp edibles, and hemp-derived consumer products for sale at a cannabis
event must comply with this chapter and rules adopted pursuant to this chapter regarding
the testing, packaging, and labeling of those items.

(j) new text begin Authorized retailers must record in the statewide monitoring system new text end all cannabis
plants, adult-use cannabis flower, and adult-use cannabis products sold, new text begin distributed, new text end damaged,
or destroyed at deleted text begin a deleted text end new text begin the new text end cannabis event deleted text begin must be recorded in the statewide monitoring system deleted text end .

Sec. 5.

Minnesota Statutes 2025 Supplement, section 342.46, subdivision 8, is amended
to read:

Subd. 8.

On-site consumption.

(a) A lower-potency hemp edible retailer may permit
on-site consumption of lower-potency hemp edibles on a portion of its premises if it has an
on-site consumption endorsement.

(b) The office shall issue an on-site consumption endorsement to any lower-potency
hemp edible retailer that also holds an on-sale license issued under chapter 340A.

(c) A lower-potency hemp edible retailer must ensure that lower-potency hemp edibles
sold for on-site consumption comply with this chapter and rules adopted pursuant to this
chapter regarding testing.

(d) Lower-potency hemp edibles sold for on-site consumption, other than lower-potency
hemp edibles that are intended to be consumed as a beverage, must be served in the required
packaging, but may be removed from the products' packaging by customers and consumed
on site.

(e) Lower-potency hemp edibles that are intended to be consumed as a beverage may
be served outside of the edibles' packaging if the information that is required to be contained
on the label of a lower-potency hemp edible is posted or otherwise displayed by the
lower-potency hemp edible retailer. Hemp workers who serve beverages under this paragraph
are not required to obtain an edible cannabinoid product handler endorsement under section
342.07, subdivision 3.

(f) Food and beverages not otherwise prohibited by this subdivision may be prepared
and sold on site if the lower-potency hemp edible retailer complies with all relevant state
and local laws, ordinances, licensing requirements, and zoning requirements.

(g) A lower-potency hemp edible retailer may offer recorded or live entertainment if the
lower-potency hemp edible retailer complies with all relevant state and local laws, ordinances,
licensing requirements, and zoning requirements.

(h) In addition to the prohibitions under subdivision 7, a lower-potency hemp edible
retailer with an on-site consumption endorsement may not:

(1) sell, give, furnish, or in any way procure for another lower-potency hemp edibles
for the use of an obviously intoxicated person;

(2) sell lower-potency hemp edibles that are designed or reasonably expected to be mixed
with an alcoholic beverage; or

(3) permit lower-potency hemp edibles that have been removed from the products'
packaging to be removed from the premises of the lower-potency hemp edible retailer.

(i) A lower-potency hemp edible retailer is permitted to sell and may permit the
consumption of lower-potency hemp edibles deleted text begin that are intended to be consumed as a beverage deleted text end
at an event hosted off site if:

(1) the event has been authorized by the local unit of government exercising jurisdiction
over the location;

(2) the event organizer holds an on-sale license issued under chapter 340A; and

(3) the event does not exceed four days.