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Minnesota Legislature

Office of the Revisor of Statutes

HF 1661

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/18/2019 04:11pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2019
1st Engrossment Posted on 03/13/2019

Current Version - 1st Engrossment

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A bill for an act
relating to agriculture; allowing Minnesota hemp growers to sell Minnesota grown
hemp to manufacturers in the medical cannabis program; amending Minnesota
Statutes 2018, sections 18K.02, subdivision 3; 18K.03; 152.22, by adding a
subdivision; 152.25, subdivision 4; 152.29, subdivisions 1, 2, 3a; 152.31; 152.36,
subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:


Subd. 3.

Industrial hemp.

"Industrial hemp" means the plant Cannabis sativa L. and
any part of the plant, whether growing or not, new text beginincluding the plant's seeds, and all the plant's
derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not,
new text endwith a delta-9 tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis. Industrial hemp is not marijuana as defined in section 152.01,
subdivision 9
.

Sec. 2.

Minnesota Statutes 2018, section 18K.03, is amended to read:


18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.

new text begin Subdivision 1. new text end

new text begin Industrial hemp. new text end

Industrial hemp is an agricultural crop in this state. A
person may possess, transport, process, sell, or buy industrial hemp that is grown pursuant
to this chapter.

new text begin Subd. 2. new text end

new text begin Sale to medical cannabis manufacturers. new text end

new text begin A licensee under this chapter may
sell hemp products derived from industrial hemp grown in this state to medical cannabis
manufacturers as authorized under sections 152.22 to 152.37.
new text end

Sec. 3.

Minnesota Statutes 2018, section 152.22, is amended by adding a subdivision to
read:


new text begin Subd. 5a. new text end

new text begin Hemp. new text end

new text begin "Hemp" means industrial hemp as defined in section 18K.02,
subdivision 3.
new text end

Sec. 4.

Minnesota Statutes 2018, section 152.25, subdivision 4, is amended to read:


Subd. 4.

Reports.

(a) The commissioner shall provide regular updates to the task force
on medical cannabis therapeutic research and to the chairs and ranking minority members
of the legislative committees with jurisdiction over health and human services, public safety,
judiciary, and civil law regardingnew text begin: (1)new text end any changes in federal law or regulatory restrictions
regarding the use of medical cannabisnew text begin and hemp; and (2) the market demand and supply in
this state for hemp products that can be used for medicinal purposes
new text end.

(b) The commissioner may submit medical research based on the data collected under
sections 152.22 to 152.37 to any federal agency with regulatory or enforcement authority
over medical cannabis to demonstrate the effectiveness of medical cannabis for treating a
qualifying medical condition.

Sec. 5.

Minnesota Statutes 2018, section 152.29, subdivision 1, is amended to read:


Subdivision 1.

Manufacturer; requirements.

(a) A manufacturer shall operate four
distribution facilities, which may include the manufacturer's single location for cultivation,
harvesting, manufacturing, packaging, and processing but is not required to include that
location. A manufacturer is required to begin distribution of medical cannabis from at least
one distribution facility by July 1, 2015. All distribution facilities must be operational and
begin distribution of medical cannabis by July 1, 2016. The distribution facilities shall be
located based on geographical need throughout the state to improve patient access. A
manufacturer shall disclose the proposed locations for the distribution facilities to the
commissioner during the registration process. A manufacturer shall operate only one location
where all cultivation, harvesting, manufacturing, packaging, and processing new text beginof medical
cannabis
new text endshall be conducted. Any additional distribution facilities may dispense medical
cannabis and medical cannabis products but may not contain any medical cannabis in a
form other than those forms allowed under section 152.22, subdivision 6, and the
manufacturer shall not conduct any cultivation, harvesting, manufacturing, packaging, or
processing at an additional distribution facility site. Any distribution facility operated by
the manufacturer is subject to all of the requirements applying to the manufacturer under
sections 152.22 to 152.37, including, but not limited to, security and distribution
requirements.

new text begin (b) A manufacturer may obtain hemp from a hemp grower licensed with the commissioner
of agriculture under chapter 18K if the hemp was grown in this state. A manufacturer may
use hemp for the purpose of making available a form allowable under section 152.22,
subdivision 6. Any hemp acquired by a manufacturer under this paragraph is subject to the
same quality control program, security and testing requirements, and any other requirement
for medical cannabis under sections 152.22 to 152.37 and Minnesota Rules, chapter 4770.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end A medical cannabis manufacturer shall contract with a laboratory approved by
the commissioner, subject to any additional requirements set by the commissioner, for
purposes of testing medical cannabis manufactured new text beginor hemp acquired new text endby the medical cannabis
manufacturer as to content, contamination, and consistency to verify the medical cannabis
meets the requirements of section 152.22, subdivision 6. The cost of laboratory testing shall
be paid by the manufacturer.

deleted text begin (c)deleted text endnew text begin (d)new text end The operating documents of a manufacturer must include:

(1) procedures for the oversight of the manufacturer and procedures to ensure accurate
record keeping; deleted text beginand
deleted text end

(2) procedures for the implementation of appropriate security measures to deter and
prevent the theft of medical cannabisnew text begin and hempnew text end and unauthorized entrance into areas
containing medical cannabisdeleted text begin.deleted text endnew text begin and hemp; and
new text end

new text begin (3) procedures for the delivery and transportation of hemp between hemp growers
licensed under chapter 18K and manufacturers.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end A manufacturer shall implement security requirements, including requirements
for new text beginthe delivery and transportation of hemp, new text endprotection of each location by a fully operational
security alarm system, facility access controls, perimeter intrusion detection systems, and
a personnel identification system.

deleted text begin (e)deleted text endnew text begin (f)new text end A manufacturer shall not share office space with, refer patients to a health care
practitioner, or have any financial relationship with a health care practitioner.

deleted text begin (f)deleted text endnew text begin (g)new text end A manufacturer shall not permit any person to consume medical cannabis on the
property of the manufacturer.

deleted text begin (g)deleted text endnew text begin (h)new text end A manufacturer is subject to reasonable inspection by the commissioner.

deleted text begin (h)deleted text endnew text begin (i)new text end For purposes of sections 152.22 to 152.37, a medical cannabis manufacturer is
not subject to the Board of Pharmacy licensure or regulatory requirements under chapter
151.

deleted text begin (i)deleted text endnew text begin (j)new text end A medical cannabis manufacturer may not employ any person who is under 21
years of age or who has been convicted of a disqualifying felony offense. An employee of
a medical cannabis manufacturer must submit a completed criminal history records check
consent form, a full set of classifiable fingerprints, and the required fees for submission to
the Bureau of Criminal Apprehension before an employee may begin working with the
manufacturer. The bureau must conduct a Minnesota criminal history records check and
the superintendent is authorized to exchange the fingerprints with the Federal Bureau of
Investigation to obtain the applicant's national criminal history record information. The
bureau shall return the results of the Minnesota and federal criminal history records checks
to the commissioner.

deleted text begin (j)deleted text endnew text begin (k)new text end A manufacturer may not operate in any location, whether for distribution or
cultivation, harvesting, manufacturing, packaging, or processing, within 1,000 feet of a
public or private school existing before the date of the manufacturer's registration with the
commissioner.

deleted text begin (k)deleted text endnew text begin (l)new text end A manufacturer shall comply with reasonable restrictions set by the commissioner
relating to signage, marketing, display, and advertising of medical cannabis.

new text begin (m) Before a manufacturer acquires hemp, the manufacturer must verify that the person
from whom the manufacturer is acquiring hemp has a valid license issued by the
commissioner of agriculture under chapter 18K.
new text end

Sec. 6.

Minnesota Statutes 2018, section 152.29, subdivision 2, is amended to read:


Subd. 2.

Manufacturer; production.

(a) A manufacturer of medical cannabis shall
provide a reliable and ongoing supply of all medical cannabis new text beginand hemp new text endneeded for the
registry program.

(b) All cultivation, harvesting, manufacturing, packaging, and processing of medical
cannabis new text beginor manufacturing, packaging, or processing of hemp new text endmust take place in an enclosed,
locked facility at a physical address provided to the commissioner during the registration
process.

(c) A manufacturer must process and prepare any medical cannabis new text beginor hemp new text endplant material
into a form allowable under section 152.22, subdivision 6, prior to distribution of any medical
cannabis.

Sec. 7.

Minnesota Statutes 2018, section 152.29, subdivision 3a, is amended to read:


Subd. 3a.

Transportation of medical cannabis; staffing.

A medical cannabis
manufacturer may staff a transport motor vehicle with only one employee if the medical
cannabis manufacturer is transporting medical cannabisnew text begin or hempnew text end to either a certified
laboratory for the purpose of testing or a facility for the purpose of disposal. If the medical
cannabis manufacturer is transporting medical cannabisnew text begin or hempnew text end for any other purpose or
destination, the transport motor vehicle must be staffed with a minimum of two employees
as required by rules adopted by the commissioner.

Sec. 8.

Minnesota Statutes 2018, section 152.31, is amended to read:


152.31 DATA PRACTICES.

(a) Government data in patient files maintained by the commissioner and the health care
practitioner, and data submitted to or by a medical cannabis manufacturer, are private data
on individuals, as defined in section 13.02, subdivision 12, or nonpublic data, as defined in
section 13.02, subdivision 9, but may be used for purposes of complying with chapter 13
and complying with a request from the legislative auditor or the state auditor in the
performance of official duties. The provisions of section 13.05, subdivision 11, apply to a
registration agreement entered between the commissioner and a medical cannabis
manufacturer under section 152.25.

(b) Not public data maintained by the commissioner may not be used for any purpose
not provided for in sections 152.22 to 152.37, and may not be combined or linked in any
manner with any other list, dataset, or database.

new text begin (c) The commissioner may execute data sharing arrangements with the commissioner
of agriculture to verify licensing information, inspection, and compliance related to hemp
growers under chapter 18K.
new text end

Sec. 9.

Minnesota Statutes 2018, section 152.36, subdivision 2, is amended to read:


Subd. 2.

Impact assessment.

The task force shall hold hearings to evaluate the impact
of the use of medical cannabisnew text begin, hemp,new text end and Minnesota's activities involving medical cannabisnew text begin
and hemp
new text end, includingdeleted text begin,deleted text end but not limited to:

(1) program design and implementation;

(2) the impact on the health care provider community;

(3) patient experiences;

(4) the impact on the incidence of substance abuse;

(5) access to and quality of medical cannabisnew text begin and hempnew text end and medical cannabis products;

(6) the impact on law enforcement and prosecutions;

(7) public awareness and perception; and

(8) any unintended consequences.