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Minnesota Legislature

Office of the Revisor of Statutes

HF 2285

as introduced - 91st Legislature (2019 - 2020) Posted on 05/10/2019 03:03pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2019

Current Version - as introduced

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A bill for an act
relating to cannabis; allowing individuals 21 years of age or older to consume and
possess cannabis and cannabis-infused products; providing regulation of cannabis
for commercial purposes; authorizing rulemaking; authorizing fees; providing
penalties; taxing certain cannabis sales; providing expungement of certain crimes;
modifying the Clean Indoor Air Act; amending Minnesota Statutes 2018, sections
144.413, subdivision 4, by adding subdivisions; 144.414, subdivisions 2, 3;
144.4165; 152.01, subdivision 5a; 152.02, subdivision 2; 152.021, subdivisions
1, 2; 152.022, subdivisions 1, 2; 152.023, subdivisions 1, 2; 152.024, subdivisions
1, 2; 152.025, subdivision 1; 152.096, subdivision 1; 290.0132, by adding a
subdivision; 290.0134, by adding a subdivision; 297A.61, subdivisions 3, 4, by
adding subdivisions; 297A.62, subdivision 1, by adding a subdivision; 297A.94;
297A.99, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapters 295; 297A; 609A; proposing coding for new law as Minnesota Statutes,
chapter 340B; repealing Minnesota Statutes 2018, sections 144.414, subdivision
5; 152.01, subdivision 16; 152.027, subdivisions 3, 4.

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

ARTICLE 1

FULL LEGALIZATION ACT

Section 1.

new text begin [340B.01] DEFINITIONS; MINNESOTA CANNABIS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms defined in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Commerce.
new text end

new text begin Subd. 3. new text end

new text begin Cannabinoid profile. new text end

new text begin "Cannabinoid profile" means a list or chart of the chemical
constituents found in a sample testing of a cannabis plant that is processed into usable
cannabis or is used as an ingredient in a cannabis-infused product.
new text end

new text begin Subd. 4. new text end

new text begin Cannabis. new text end

new text begin "Cannabis" means all parts of the plant of the genus cannabis whether
growing or not, the seeds of the plant, the resin extracted from any part of the plant, and
every compound, salt, derivative, mixture, or preparation of the plant, the plant's seeds, or
the plant's resin, including cannabis concentrate that is cultivated, manufactured, distributed,
or sold by a licensed cannabis establishment. Cannabis does not include industrial hemp;
medical cannabis, as defined in section 152.22, subdivision 6; the fiber produced from the
stalks, oil, or cake made from the seeds of the plant; the sterilized seed of the plant that is
incapable of germination; or the weight of any other ingredient combined with cannabis to
prepare topical or oral administrations, food, drink, or other cannabis-infused products.
new text end

new text begin Subd. 5. new text end

new text begin Cannabis accessories. new text end

new text begin "Cannabis accessories" means any equipment, products,
or materials of any kind that are used, intended for use, or designed for use in planting,
propagating, cultivating, growing, harvesting, composting, manufacturing, compounding,
converting, producing, processing, preparing, testing, analyzing, packaging, repackaging,
storing, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise
introducing cannabis into the human body.
new text end

new text begin Subd. 6. new text end

new text begin Cannabis establishment. new text end

new text begin "Cannabis establishment" means a cannabis cultivator,
a cannabis testing facility, a cannabis processor, or a retail cannabis store.
new text end

new text begin Subd. 7. new text end

new text begin Cannabis-infused products. new text end

new text begin "Cannabis-infused product" means a product that
contains cannabis or cannabis extracts and is intended for human use, including but not
limited to an edible product, ointment, or tincture. A cannabis-infused product does not
include usable cannabis.
new text end

new text begin Subd. 8. new text end

new text begin Cannabis processor. new text end

new text begin "Cannabis processor" means a person who processes
cannabis into usable cannabis; packages and labels usable cannabis and viable cannabis
seeds; manufactures, prepares, packages, and labels cannabis-infused products; or sells
cannabis seeds, usable cannabis, and cannabis-infused products to other cannabis processors
and to retail cannabis stores, but not to consumers.
new text end

new text begin Subd. 9. new text end

new text begin Cannabis cultivator. new text end

new text begin "Cannabis cultivator" means a person who cultivates and
sells cannabis at wholesale to cannabis processors and other cannabis cultivators, but not
to consumers.
new text end

new text begin Subd. 10. new text end

new text begin Cannabis testing facility. new text end

new text begin "Cannabis testing facility" means an entity licensed
to analyze and certify the safety and potency of cannabis.
new text end

new text begin Subd. 11. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 12. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a person 21 years of age or older who purchases
cannabis seeds, usable cannabis, or cannabis-infused products for personal use by persons
21 years of age or older, but not for resale to others.
new text end

new text begin Subd. 13. new text end

new text begin Local government. new text end

new text begin "Local government" means a home rule charter or statutory
city or town.
new text end

new text begin Subd. 14. new text end

new text begin Lot. new text end

new text begin "Lot" means a definite quantity of cannabis or usable cannabis identified
by a lot number, each portion or package of which is consistent with the factors that appear
in the labeling.
new text end

new text begin Subd. 15. new text end

new text begin Lot number. new text end

new text begin "Lot number" means a number that specifies the person who
holds a valid license under this chapter and the harvesting or processing date for each lot.
new text end

new text begin Subd. 16. new text end

new text begin Medical cannabis manufacturer. new text end

new text begin "Medical cannabis manufacturer" has the
meaning given in section 152.22, subdivision 7.
new text end

new text begin Subd. 17. new text end

new text begin Premises. new text end

new text begin "Premises" means the premises specified on an application for
licensure under this chapter, which are owned or in possession of the licensee and within
which the licensee is authorized to cultivate, manufacture, process, distribute, sell, or test
cannabis, usable cannabis, or cannabis-infused products according to this chapter.
new text end

new text begin Subd. 18. new text end

new text begin Retail cannabis store. new text end

new text begin "Retail cannabis store" means a person licensed to:
new text end

new text begin (1) purchase cannabis seeds, usable cannabis, and cannabis-infused products from a
cannabis processor; and
new text end

new text begin (2) sell cannabis seeds, usable cannabis, and cannabis-infused products to consumers.
new text end

new text begin Subd. 19. new text end

new text begin Unreasonably impracticable. new text end

new text begin "Unreasonably impracticable" means that the
measures necessary to comply with the rules adopted under this chapter require such a high
investment of risk, money, time, or any other resource or asset that the operation of a cannabis
establishment is not worth carrying out in practice by a reasonably prudent businessperson.
new text end

new text begin Subd. 20. new text end

new text begin Usable cannabis. new text end

new text begin "Usable cannabis" means dried cannabis flowers. Usable
cannabis does not include cannabis-infused products.
new text end

Sec. 2.

new text begin [340B.02] DUTIES OF THE COMMISSIONER OF COMMERCE.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner shall perform the following functions related
to the regulation of cannabis, cannabis products, cannabis accessories, and cannabis
establishments:
new text end

new text begin (1) issue licenses for cannabis establishments according to this chapter;
new text end

new text begin (2) suspend, fine, restrict, or revoke the license of a cannabis establishment that is in
violation of this chapter or rules adopted under the authority of this chapter;
new text end

new text begin (3) impose any penalty authorized by this chapter or rules adopted under the authority
of this chapter;
new text end

new text begin (4) adopt rules to implement this chapter according to section 340B.03;
new text end

new text begin (5) impose any penalty authorized by this chapter or rules adopted under this chapter;
new text end

new text begin (6) assess fees according to this chapter; and
new text end

new text begin (7) administer and enforce this chapter and rules adopted under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Interagency agreements. new text end

new text begin The commissioner may enter into any interagency
agreements with other state agencies for technical services or other assistance related to the
regulatory, enforcement, or inspection duties in this chapter or the rules adopted under the
authority of this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Conflicts of interest. new text end

new text begin The commissioner or any person employed by the
commissioner shall not have a direct or indirect financial interest in any cannabis
establishment.
new text end

Sec. 3.

new text begin [340B.03] ADMINISTRATION AND ENFORCEMENT; RULEMAKING.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin No later than January 1, 2021, the commissioner shall adopt rules
necessary to implement this chapter. The rules shall not prohibit the operation of cannabis
establishments, either expressly or through rules that make their operation unreasonably
impracticable. The rules adopted under this chapter must provide for retail cannabis stores
to begin the sale of cannabis, cannabis-infused products, and cannabis accessories by January
1, 2022.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The rules adopted by the commissioner must address the following:
new text end

new text begin (1) procedures for the issuance, renewal, suspension, and revocation of a license to
operate a cannabis establishment, including procedures for impact zone and microbusiness
licenses;
new text end

new text begin (2) qualifications for licensure that are directly and demonstrably related to the operation
of a cannabis establishment;
new text end

new text begin (3) requirements to prevent the sale or diversion of cannabis, usable cannabis, and
cannabis-infused products to persons under the age of 21 years including restrictions on
advertisements directed toward persons under the age of 21 years;
new text end

new text begin (4) labeling requirements for cannabis seeds, usable cannabis, and cannabis-infused
products;
new text end

new text begin (5) health and safety regulations and standards for the production and processing of
cannabis, usable cannabis, and cannabis-infused products;
new text end

new text begin (6) the nature, form, and capacity of all containers to be used by cannabis establishments
to contain cannabis, cannabis seeds, usable cannabis, and cannabis-infused products, and
their labeling requirements;
new text end

new text begin (7) classes of cannabis, cannabis seeds, usable cannabis, and cannabis-infused products
according to grade, condition, cannabinoid profile, or other qualitative measurements deemed
appropriate by the commissioner in consultation with the commissioner of agriculture,
academic experts, cannabis processors, and cannabis producers;
new text end

new text begin (8) a standardized cannabis serving size amount for edible cannabis-infused products;
new text end

new text begin (9) additional safety standards for cannabis-infused products including but not limited
to safety requirements related to contaminants and potency;
new text end

new text begin (10) accreditation requirements for cannabis testing facilities, in consultation with the
commissioner of agriculture;
new text end

new text begin (11) procedures for identifying, seizing, confiscating, destroying, and donating cannabis,
usable cannabis, and cannabis-infused products, that do not conform to the standards required
by this chapter or the rules adopted pursuant to this chapter;
new text end

new text begin (12) a method of determining lots and lot numbers for purposes of testing cannabis;
new text end

new text begin (13) civil penalties for the failure to comply with the rules adopted under this chapter;
and
new text end

new text begin (14) any other requirement or procedure necessary to carry out the administration of this
chapter.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin The commissioner shall administer and enforce this chapter and
any rules adopted under the authority of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner's discretion. new text end

new text begin If minor violations of this chapter or rules adopted
under this chapter occur or the commissioner believes the public interest is best served by
a suitable notice of warning in writing, this section does not require the commissioner to:
new text end

new text begin (1) report the violation for prosecution;
new text end

new text begin (2) institute seizure proceedings; or
new text end

new text begin (3) issue a withdrawal from distribution, stop-sale, or other order.
new text end

new text begin Subd. 5. new text end

new text begin Civil actions. new text end

new text begin Civil judicial enforcement actions may be brought by the attorney
general in the name of the state on behalf of the commissioner. A county attorney may bring
a civil judicial enforcement action upon the request of the commissioner and agreement by
the attorney general.
new text end

new text begin Subd. 6. new text end

new text begin Injunction. new text end

new text begin The commissioner may apply to a court with jurisdiction for a
temporary or permanent injunction to prevent, restrain, or enjoin violations of this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Criminal actions. new text end

new text begin For a criminal action, the county attorney from the county
where the criminal violation occurred is responsible for prosecuting a violation of this
chapter. If the county attorney refuses to prosecute, the attorney general, by request of the
commissioner, may prosecute.
new text end

Sec. 4.

new text begin [340B.04] GENERAL PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This chapter sets forth the exclusive means by which the
cultivation, manufacture, sale, distribution, dispensing, and testing of cannabis, usable
cannabis, and cannabis-infused products may occur in this state. It is unlawful to produce,
process, cultivate, manufacture, distribute, or sell cannabis, usable cannabis, or
cannabis-infused products except in compliance with the terms, conditions, limitations, and
restrictions under this chapter or the rules adopted under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Rights of employers. new text end

new text begin Nothing in this chapter is intended to require an employer
to permit or accommodate the use, consumption, possession, transfer, display, transportation,
sale, or cultivation of cannabis in the workplace or to permit an employee to work while
under the influence of cannabis.
new text end

new text begin Subd. 3. new text end

new text begin Rights of employees and prospective employees. new text end

new text begin Notwithstanding any law
to the contrary, an employer may not discipline or discriminate against an employee or
prospective employee because the employee or prospective employee has metabolites of
cannabis in the employee's or prospective employee's blood.
new text end

new text begin Subd. 4. new text end

new text begin Rights of property owners. new text end

new text begin Nothing in this chapter prohibits a person,
employer, school, hospital, detention facility, corporation, or any other entity that occupies,
owns, or controls a property from prohibiting or otherwise regulating the possession,
consumption, use, display, transfer, distribution, sale, transportation, or cultivation of
cannabis or cannabis-infused products on the person's or entity's property.
new text end

new text begin Subd. 5. new text end

new text begin Rights of residential tenants. new text end

new text begin A residential tenant who is 21 years of age or
older may possess or use cannabis seeds, usable cannabis, or cannabis-infused products, or
may possess and grow cannabis plants as authorized by this chapter, in a residential building
unless such acts are prohibited by a written lease.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By February 1 of each year beginning in 2021, the commissioner shall
submit a report to the legislative committees with jurisdiction over cannabis, public safety,
and taxes on the following:
new text end

new text begin (1) the progress the commissioner is making on processing cannabis establishment
licenses;
new text end

new text begin (2) an overview of the usable cannabis and cannabis-infused product market, including
but not limited to the actual and anticipated market demand and market supply;
new text end

new text begin (3) detailing the amounts of revenue generated by the sale of cannabis, cannabis seeds,
usable cannabis, cannabis-infused products, and cannabis accessories and the expenses
incurred by the commissioner and other state agencies related to the administration and
enforcement of laws related to this chapter;
new text end

new text begin (4) the number of persons who have filed an application with the commissioner to obtain
a license for a cannabis establishment;
new text end

new text begin (5) the commissioner's enforcement measures taken against persons licensed under this
chapter for violations of this chapter or the rules adopted under this chapter; and
new text end

new text begin (6) the progress the commissioner has made in meeting the equity goals related to impact
zones, minority-owned businesses, and microbusinesses.
new text end

Sec. 5.

new text begin [340B.05] SEIZURE AND CONFISCATION.
new text end

new text begin (a) All cannabis, usable cannabis, and cannabis-infused products produced, processed,
manufactured, kept, stored, sold, distributed, or transported in violation of this chapter or
the rules adopted under this chapter is unlawful property and subject to seizure by the
commissioner or a law enforcement officer.
new text end

new text begin (b) Before issuing a seizure order, the commissioner may remedy violations under this
chapter pursuant to section 340B.17. Seizure orders are subject to the appeals process under
section 340B.19.
new text end

new text begin (c) If cannabis, usable cannabis, or cannabis-infused products have been seized by the
commissioner, the commissioner may transfer the cannabis, usable cannabis, or
cannabis-infused products to law enforcement for use in a criminal investigation.
new text end

new text begin (d) If the commissioner determines that the true owner of any seized cannabis, usable
cannabis, or cannabis-infused products is not involved in the violation resulting in the
seizure, the commissioner shall return the seized property to the true owner.
new text end

Sec. 6.

new text begin [340B.06] CANNABIS ESTABLISHMENTS; LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin (a) No person may operate a cannabis establishment
in this state without first filing an application for and obtaining the proper license from the
commissioner to perform the activities and operations authorized by this chapter.
new text end

new text begin (b) Every cannabis establishment license shall:
new text end

new text begin (1) be issued in the name of the applicant;
new text end

new text begin (2) specify the location of the cannabis establishment; and
new text end

new text begin (3) be used only by the holder of the license;
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) The commissioner may only issue a license to operate as a
cannabis establishment to a person:
new text end

new text begin (1) who, immediately before the date of the person's cannabis establishment license
application has been (i) a resident of this state continuously for at least 2 years, or (ii)
domiciled for a total of 24 months in the immediately preceding 7 years;
new text end

new text begin (2) who is 21 years of age or older;
new text end

new text begin (3) who has not had a license issued under this chapter revoked within five years of the
date of license application; and
new text end

new text begin (4) who has paid any fee associated with the license application.
new text end

new text begin (b) At least 60 percent of all officers, directors, agents, and stockholders of any
corporation applying for a license under this chapter must meet the requirements of paragraph
(a).
new text end

new text begin Subd. 3. new text end

new text begin Application; fee. new text end

new text begin (a) An initial application for a license under this chapter must
be made to the commissioner on a form the commissioner prescribes and must be
accompanied by a $500 fee. If an application is denied, the commissioner shall retain the
application fee to cover the administrative costs related to reviewing the application.
new text end

new text begin (b) The application fee for impact zone applications under section 340B.122 and
microbusiness applications under section 340B.123 is waived.
new text end

new text begin Subd. 4. new text end

new text begin Period of license. new text end

new text begin (a) Licenses issued under this chapter are valid for one year,
except that to coordinate expiration dates, initial licenses may be issued for a shorter period.
new text end

new text begin (b) To renew a cannabis establishment license, a licensee must submit a renewal
application as prescribed by the commissioner and pay the applicable fee under subdivision
8.
new text end

new text begin Subd. 5. new text end

new text begin Separate license required; limitations. new text end

new text begin (a) A separate license is required for
each class of license and the license holder shall perform only the operations authorized by
a license. A license issued under this chapter is not transferable from one person to another
or from one premises to another. A separate license is required for each place in this state
where the operations of a cannabis establishment occur.
new text end

new text begin (b) A person or entity may not hold more than (1) one cannabis cultivator license, (2)
one cannabis processor license, and (3) five retail cannabis store licenses. A person or entity
is prohibited from operating more than two retail cannabis stores in one city.
new text end

new text begin (c) A person or entity holding a cannabis testing facility license may not hold any other
license authorized under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Application process. new text end

new text begin (a) Each application for an annual license to operate a
cannabis establishment shall be submitted to the commissioner.
new text end

new text begin (b) The commissioner shall begin accepting applications on October 1, 2021.
new text end

new text begin (c) The commissioner shall issue an annual license to the applicant within 45 days after
receipt of an application unless the commissioner finds the applicant is not in compliance
with this chapter or the rules adopted under this chapter. Upon denial of an application for
a license to operate a cannabis establishment, the commissioner shall notify the applicant
in writing of the specific reason for denial. An applicant may appeal the commissioner's
denial of the license in a contested case proceeding under chapter 14.
new text end

new text begin (d) The commissioner shall prioritize impact zone, minority-owned, and microbusiness
license applications.
new text end

new text begin Subd. 7. new text end

new text begin Inspection of premises. new text end

new text begin For the purpose of considering any cannabis
establishment license application or for the renewal of a cannabis establishment license, the
commissioner may inspect the cannabis establishment premises and may inquire into all
matters in connection with the construction and operation of a cannabis establishment
premises.
new text end

new text begin Subd. 8. new text end

new text begin Annual fees. new text end

new text begin (a) The annual fees for licenses under this chapter are as follows:
new text end

new text begin (1) for a cannabis cultivator, $.......;
new text end

new text begin (2) for a cannabis processor, $.......;
new text end

new text begin (3) for a retail cannabis store, $.......; and
new text end

new text begin (4) for a cannabis testing facility, $.......
new text end

new text begin (b) The commissioner may structure fees to allow for a tiered licensing system based
on the size or gross sales of the cannabis establishment. Any fee structure adjustment is not
a rule and is not subject to the Administrative Procedure Act in chapter 14.
new text end

new text begin (c) The commissioner may annually adjust the fee amount in paragraph (a) in order to
cover the cost of administering the licensing program.
new text end

new text begin Subd. 9. new text end

new text begin Employees. new text end

new text begin A cannabis establishment is prohibited from employing any person
under 21 years of age.
new text end

Sec. 7.

new text begin [340B.07] RETAIL CANNABIS STORE; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin The commissioner shall only issue a retail cannabis store license
to a person selling usable cannabis, cannabis-infused products, or cannabis accessories
under the terms and conditions of this chapter. No person shall operate a retail cannabis
store without a license issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis and cannabis-infused products; source and transactions. new text end

new text begin A retail
cannabis store shall only transact with a cannabis processor licensed under this chapter for
the purchase of usable cannabis or cannabis-infused products. A transaction between a retail
cannabis store and a cannabis processor must occur on a cannabis processor's licensed
premises or a retail cannabis store's licensed premises.
new text end

new text begin Subd. 3. new text end

new text begin Usable cannabis and cannabis-infused product tracking. new text end

new text begin A retail cannabis
store must track all of its usable cannabis and cannabis-infused products from the point of
transfer from a cannabis processor to the point of sale.
new text end

new text begin Subd. 4. new text end

new text begin Allowed sale. new text end

new text begin A retail cannabis store shall only sell usable cannabis or
cannabis-infused products to a person who has a valid government-issued identification
card showing that the person is 21 years of age or older.
new text end

new text begin Subd. 5. new text end

new text begin Identification verification. new text end

new text begin Before initiating a sale under this chapter, the
employee of the retail cannabis store making the sale must verify that the purchaser has a
valid government-issued identification card showing the purchaser is 21 years of age or
older. If a person under the age of 21 presents a fraudulent proof of age, any action reasonably
relying on the fraudulent proof of age is not grounds for the revocation or suspension of
any license issued under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Packaging; labels. new text end

new text begin All usable cannabis and cannabis-infused products sold in
a retail cannabis store must be packaged and labeled as required by this chapter and any
rules adopted under this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Allowable sales. new text end

new text begin A retail cannabis store must not sell products or services other
than cannabis seeds, usable cannabis, cannabis-infused products, and cannabis accessories.
new text end

new text begin Subd. 8. new text end

new text begin Cannabis consumption on premises. new text end

new text begin An employee of a retail cannabis store
must not consume, or allow to be consumed, any useable cannabis or cannabis-infused
product on the retail cannabis store's licensed premises.
new text end

new text begin Subd. 9. new text end

new text begin Employee training. new text end

new text begin Immediately after beginning employment with a retail
cannabis store, every employee of a retail cannabis store must receive training, as approved
by the commissioner, on the following:
new text end

new text begin (1) the proper handling of usable cannabis and cannabis-infused products;
new text end

new text begin (2) security protocol for retail cannabis stores;
new text end

new text begin (3) inventory accountability procedures; and
new text end

new text begin (4) procedures for verifying the age of consumers in order to prevent sales to persons
under 21 years of age.
new text end

new text begin Subd. 10. new text end

new text begin Location restriction. new text end

new text begin The commissioner shall not issue a license to a person
seeking to locate a retail cannabis store within 500 feet of the perimeter of the grounds of
any elementary or secondary school.
new text end

Sec. 8.

new text begin [340B.08] INDIVIDUAL PRIVACY OF CONSUMERS AT RETAIL
CANNABIS STORES.
new text end

new text begin In order to ensure that individual privacy is protected:
new text end

new text begin (1) a consumer shall not be required to provide a retail cannabis store with personal
information other than government-issued identification to determine the consumer's age
in order to purchase cannabis or cannabis-infused products; and
new text end

new text begin (2) a retail cannabis store shall not be required to acquire and record personal information
about consumers other than information typically acquired in a financial transaction
conducted at an on-sale liquor establishment.
new text end

Sec. 9.

new text begin [340B.09] CANNABIS CULTIVATOR; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin The commissioner shall only issue a cannabis cultivator license
to a person who produces cannabis for sale at wholesale to cannabis processors and other
cannabis cultivators. A person shall not operate as a cannabis cultivator without a license
issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Tracking of cannabis. new text end

new text begin A cannabis cultivator shall track the cannabis that is
cultivated from seed or immature plant to wholesale purchase.
new text end

new text begin Subd. 3. new text end

new text begin Authorized sales. new text end

new text begin A cannabis cultivator shall only sell cannabis at wholesale
to cannabis processors or other cannabis producers.
new text end

Sec. 10.

new text begin [340B.10] CANNABIS PROCESSOR; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin The commissioner shall only issue a cannabis processor license
to a person who processes cannabis into usable cannabis or cannabis-infused products, and
who packages and labels usable cannabis and cannabis-infused products for sale at wholesale
to retail cannabis stores. A person must not process cannabis into usable cannabis for sale
or cannabis-infused products for sale or operate as a cannabis processor without a license
issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis production; tracking. new text end

new text begin A cannabis processor may produce its own
cannabis if it obtains a cannabis cultivator license. A cannabis processor may purchase
cannabis from a cannabis cultivator but must not purchase cannabis from any other person
or entity. A cannabis processor must track all of the cannabis that it processes from the point
the cannabis is either transferred from the cannabis cultivator's cannabis processor division
or from the point when the cannabis is delivered to the cannabis processor from a cannabis
cultivator to the point of transfer to a retail cannabis store.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin A cannabis processor must not:
new text end

new text begin (1) add any cannabis to a food product if the manufacturer of the food product holds a
trademark to the food product's name, except that a cannabis processor may use a trademarked
food product if the cannabis processor uses the food product as a component or as part of
a recipe and if the cannabis processor does not state or advertise to the consumer that the
final cannabis-infused product contains a trademarked food product; and
new text end

new text begin (2) intentionally or knowingly label or package a cannabis-infused product in a manner
that would cause a reasonable consumer confusion as to whether the cannabis-infused
product is a trademarked food product.
new text end

new text begin Subd. 4. new text end

new text begin Processed on licensed premises. new text end

new text begin (a) Usable cannabis and cannabis-infused
products must be prepared on a licensed premises that is used exclusively for the processing,
manufacturing, or preparation of usable cannabis or cannabis-infused products intended for
sale and using equipment that is used exclusively for the processing, manufacturing, or
preparation of usable cannabis or cannabis-infused products.
new text end

new text begin (b) All licensed premises in which usable cannabis or cannabis-infused products are
processed, manufactured, or prepared must meet certain sanitary conditions. The
commissioner shall establish by rule sanitary conditions required for a cannabis processor
licensed premises.
new text end

new text begin Subd. 5. new text end

new text begin Labeling; packaging. new text end

new text begin (a) A cannabis processor must affix a label to all usable
cannabis and cannabis-infused products that the cannabis processor sells to a retail cannabis
store. The label shall specify the ingredients and the concentration of tetrahydrocannabinols
in the usable cannabis or the cannabis-infused product.
new text end

new text begin (b) Usable cannabis transferred from a cannabis processor to a retail cannabis store must
be packaged in plain, opaque, tamper proof, and child proof containers without depictions
of the product, cartoons, or images other than the retail cannabis store's logo.
new text end

new text begin (c) Cannabis-infused products processed by a cannabis processor must be clearly
distinguishable from commercially available products not containing cannabis.
new text end

Sec. 11.

new text begin [340B.11] CANNABIS TESTING FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin The commissioner shall only issue a cannabis testing facility
license to a person who performs testing and research on usable cannabis or cannabis-infused
products that are processed, produced, or offered for sale by an entity licensed under this
chapter. A person may not perform testing or research on usable cannabis or cannabis-infused
products for a cannabis cultivator, cannabis processor, or retail cannabis store without a
license issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The commissioner shall adopt rules related to acceptable testing and
research practices for cannabis testing facilities, including but not limited to testing and
research standards, quality control analysis, equipment certification and calibration, and
chemical identification.
new text end

new text begin Subd. 3. new text end

new text begin Conflicts of interest. new text end

new text begin A person who has an interest in a cannabis testing facility
shall not have any interest in a cannabis cultivator, cannabis processor, or retail cannabis
store.
new text end

Sec. 12.

new text begin [340B.12] CANNABIS TESTING.
new text end

new text begin (a) On a schedule determined by the commissioner by rule, every cannabis cultivator
and cannabis processor shall submit representative samples of cannabis, usable cannabis,
and cannabis-infused products produced or processed by the cannabis cultivator or cannabis
processor to a cannabis testing facility in order to certify that the cannabis, usable cannabis,
or cannabis-infused products comply with the standards prescribed by the commissioner
by rule. At a minimum, the testing shall ensure that the cannabis, usable cannabis, or
cannabis-infused products do not contain contaminants that are injurious to health and to
ensure correct labeling. The testing must include analysis for residual solvents, poisons,
toxins, harmful chemicals, mold, fungus, pesticides, and other contaminants. The cannabis
testing facility shall destroy or return any part of the sample that remains after testing.
new text end

new text begin (b) Cannabis cultivators and cannabis processors must submit the results of the testing
required by this section to the commissioner in the manner prescribed by the commissioner
by rule.
new text end

new text begin (c) If a representative sample inspected and tested under this section does not meet the
standards prescribed by this section or by rules adopted by the commissioner, the
commissioner shall take necessary action to ensure that the entire lot from which the sample
was taken is destroyed. The commissioner shall adopt rules to determine lots and lot numbers
for purposes of this section.
new text end

new text begin (d) A cannabis cultivator or cannabis processor shall not sell cannabis, usable cannabis,
or cannabis-infused products that test positive for any contaminant listed under paragraph
(a) if the contaminants, or level of contaminants, are identified by a cannabis testing facility
as potentially unsafe to the consumer.
new text end

Sec. 13.

new text begin [340B.121] OFFICE OF EQUITABLE CANNABIS BUSINESS
DEVELOPMENT; ESTABLISHMENT; POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Office established. new text end

new text begin An Office of Equitable Cannabis Business
Development is established in the Department of Commerce. The office is under the
immediate supervision of a director. The director of the office shall be appointed by the
governor and shall serve in the unclassified service. The office may employ staff necessary
to carry out the office's duties under this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Minority-owned business" has the meaning given in section 116J.8737, paragraph
(l).
new text end

new text begin (c) "Impact zone" has the meaning given in section 340B.122.
new text end

new text begin Subd. 3. new text end

new text begin General duties. new text end

new text begin (a) The director shall establish and administer practices and
procedures for promoting participation in the operation of a cannabis establishment by
persons from impact zones or by minority-owned businesses that are considering licensure
as a cannabis establishment.
new text end

new text begin (b) The director shall conduct advertising, promotional campaigns, and disseminate
information to the public to increase awareness for participation in the operation of a cannabis
establishment by persons from impact zones and by minority-owned businesses, concerning
the qualifications and application processes for licensure as a cannabis establishment,
including available grant money under section 340B.26, subdivision 2. The director shall
sponsor seminars and informational programs, as well as provide information on its website,
directed toward persons from impact zones and prospective minority-owned businesses.
The seminars and informational programs must, at a minimum, contain practical information
on business management, marketing, licensure, and other matters that may be helpful in
operating a cannabis establishment.
new text end

new text begin Subd. 4. new text end

new text begin Cannabis establishment promotion. new text end

new text begin (a) The director shall develop, recommend,
and implement policies to promote the formulation and operation of a cannabis establishment
by persons from impact zones and minority-owned businesses. The director, in consultation
with the commissioner, shall make a good faith effort through the office's promotion efforts
to assist in meeting the annual goals set under section 340B.122 for impact-zone cannabis
establishments.
new text end

new text begin (b) The director shall periodically analyze the number of licenses and permits issued by
the commissioner and compare that analysis to the number of impact zone and
minority-owned businesses that submitted applications for licenses. The director shall make
good faith efforts to establish, maintain, and enhance the measures designed to promote the
formulation and operation of a cannabis establishment by persons from impact zones or by
minority-owned businesses and to coordinate and assist the commissioner to incorporate
these licensing measures into the application and review process for issuing licenses for
cannabis establishments.
new text end

new text begin Subd. 5. new text end

new text begin Office recommendations. new text end

new text begin (a) The director may review the commissioner's
policies and procedures for issuing cannabis establishment licenses to persons from impact
zones and minority-owned businesses and make recommendations to improve them.
new text end

new text begin (b) The director shall make recommendations to the commissioner on relevant policy
and implementation matters concerning participation in the operation of a cannabis
establishment by persons from impact zones and minority-owned businesses, as the director
deems appropriate.
new text end

new text begin (c) The director shall prepare information regarding the office's activities pursuant to
this section addressing participation in the operation of a cannabis establishment by persons
from impact zones and minority-owned businesses to be incorporated by the commissioner
in the commissioner's report to the legislature pursuant to section 340B.04, subdivision 6.
new text end

Sec. 14.

new text begin [340B.122] IMPACT ZONES; MINORITY-OWNED BUSINESSES.
new text end

new text begin (a) In reviewing applications for cannabis establishment licensure, the commissioner
shall give first priority to applicants who (1) are current residents of an impact zone; (2)
present a plan to employ a select number of employees who reside in an impact zone,
regardless of where the cannabis establishment is or is intended to be located; and (3) are
a minority-owned business, as defined in section 116J.8737, paragraph (l).
new text end

new text begin (b) For purposes of this section, "impact zone" means a zip code area located within a
city of the first class or a city of the second class for which:
new text end

new text begin (1) past unlawful cannabis enterprises contributed to higher concentrations of law
enforcement activity; and
new text end

new text begin (2) the annual unemployment rate ranks consistently in the top 15 percent of all zip code
areas in the state based upon average annual unemployment rates.
new text end

new text begin (c) The commissioner shall coordinate with the commissioner of employment and
economic development to determine unemployment rates for purposes of paragraph (b).
new text end

new text begin (d) To the extent possible, the commissioner shall annually award at least ten percent
of all cannabis establishment licenses to applicants who have resided in an impact zone for
three or more consecutive years at the time of making the application or to minority-owned
businesses, regardless of where the cannabis establishment is or is intended to be located.
new text end

new text begin (e) To the extent possible, the commissioner shall annually award at least ten percent
of all cannabis establishment licenses to applicants who agree to employ at least ten
employees who reside in an impact zone.
new text end

new text begin (f) Impact-zone and minority-owned business applicants and impact-zone-licensed
cannabis establishments are eligible to receive business development grants under section
340B.26, subdivision 2. The commissioner, in consultation with the commissioner of
employment and economic development, shall adopt rules necessary to implement the grant
program under section 340B.26, subdivision 2.
new text end

Sec. 15.

new text begin [340B.123] MICROBUSINESSES.
new text end

new text begin (a) In reviewing applications for cannabis establishment licensure, the commissioner
shall give second priority to microbusiness applicants.
new text end

new text begin (b) To the extent possible, the commissioner shall annually award at least ten percent
of all cannabis establishment licenses to microbusinesses.
new text end

new text begin (c) For purposes of this section, "microbusiness" means a cannabis establishment:
new text end

new text begin (1) where 100 percent of the ownership interest in the microbusiness is held by residents
of Minnesota who have resided in the state for at least the past two consecutive years;
new text end

new text begin (2) where at least 51 percent of the owners, directors, officers, or employees of the
microbusiness reside within the same city or town where the microbusiness is located or
will be located, or within a city or town bordering the city or town where the microbusiness
is located or will be located and that;
new text end

new text begin (3) has no more than ten employees;
new text end

new text begin (4) operates in a building of no more than 2,500 square feet and, in the case of a cannabis
cultivator, grows cannabis on an area no more than 2,500 square feet measured on a
horizontal plane;
new text end

new text begin (5) possesses no more than 1,000 cannabis plants each month;
new text end

new text begin (6) in the case of a cannabis processor, acquires and processes no more than 1,000 pounds
of cannabis in dried form each month; and
new text end

new text begin (7) in the case of a retail cannabis store, acquires for retail sale no more than 1,000
pounds of cannabis in dried form, or the equivalent amount in any other form, or any
combination thereof, each month.
new text end

new text begin (d) An owner, director, officer, or other person with a financial interest in a microbusiness
and who has decision-making authority for the microbusiness shall not hold any financial
interest in any other licensed cannabis establishment.
new text end

new text begin (e) Microbusiness applicants and microbusiness-licensed cannabis establishments are
eligible to receive business development grants under section 340B.26, subdivision 2. The
commissioner, in consultation with the commissioner of employment and economic
development, shall adopt rules necessary to implement the grant program under section
340B.26, subdivision 2.
new text end

Sec. 16.

new text begin [340B.13] SEED-TO-SALE TRACKING SYSTEM.
new text end

new text begin The commissioner shall develop and maintain a seed-to-sale tracking system that tracks
cannabis produced by a cannabis cultivator from either the seed or immature plant stage,
to the processing stage, and until the cannabis is sold to a consumer as usable cannabis or
a cannabis-infused product at a retail cannabis store to ensure that no cannabis grown or
processed by a cannabis establishment is sold or otherwise transferred except by a retail
cannabis store.
new text end

Sec. 17.

new text begin [340B.14] RECORDS; AUDITS.
new text end

new text begin (a) Each cannabis establishment must keep a complete set of all records necessary to
fully show the business transactions of the cannabis establishment. The records shall be
kept on the premises described in the cannabis establishment's license and in a manner that
ensures permanency and accessibility for inspection at reasonable hours by the commissioner
or the commissioner's designee. The commissioner shall prescribe reasonable and uniform
methods of keeping records and shall provide necessary forms to cannabis establishments.
The commissioner may require a cannabis establishment to furnish any information the
commissioner considers necessary for the proper administration and enforcement of this
chapter and may require an audit be made of the books and records on any occasion that
the commissioner considers necessary. Any accounting required by the commissioner shall
be completed by an auditor selected by the commissioner at the expense of the cannabis
establishment.
new text end

new text begin (b) Each cannabis establishment premises, including any place where a cannabis
establishment grows, stores, cultivates, dispenses, or processes cannabis is subject to
inspection or investigation by the commissioner or the commissioner's designee during
regular business hours and at other times of apparent activity. For examination of any
inventory or books and records required to be kept by the cannabis establishment, access
shall be required during business hours. Where any part of a cannabis establishment's
premises consists of a locked area, upon demand by the commissioner or the commissioner's
designee, the locked area shall be made available without delay to the commissioner.
new text end

new text begin (c) Each cannabis establishment shall retain all books and records necessary to show
fully the cannabis establishment's business transactions for a period of the current tax year
and the three immediately prior tax years.
new text end

Sec. 18.

new text begin [340B.15] LABELING REQUIREMENTS.
new text end

new text begin A cannabis processor must affix a label to all usable cannabis and cannabis-infused
products that the cannabis processor sells to retail cannabis stores. The label must:
new text end

new text begin (1) include the lot number of the useable cannabis or cannabis-infused product;
new text end

new text begin (2) specify the cannabinoid profile of the usable cannabis or cannabis-infused product;
new text end

new text begin (3) include the license number of the cannabis cultivator that grew or produced the
cannabis;
new text end

new text begin (4) include the license number of the cannabis processor that processed the cannabis
into usable cannabis or a cannabis-infused product;
new text end

new text begin (5) include a statement that cannabis must not be legally consumed by persons under
the age of 18;
new text end

new text begin (6) include, for cannabis-infused products, the cannabinoid profile per serving and the
number of servings per package of the cannabis-infused product;
new text end

new text begin (7) include a list of ingredients for cannabis-infused products;
new text end

new text begin (8) include a universal symbol indicating the package contains cannabis; and
new text end

new text begin (9) any other labeling requirement adopted by rule under the authority of this chapter.
new text end

Sec. 19.

new text begin [340B.16] LOCAL GOVERNMENT REGULATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Cannabis lounges. new text end

new text begin (a) For purposes of this section, a "cannabis lounge"
means an establishment that operates to allow persons 21 years of age or older to consume
usable cannabis and cannabis-infused products on the establishment's premises.
new text end

new text begin (b) A cannabis lounge may only operate within the jurisdiction of a local government
that has adopted an ordinance or resolution authorizing and regulating cannabis lounges.
new text end

new text begin (c) A cannabis lounge is subject to the following limitations:
new text end

new text begin (1) all employees of a cannabis lounge must be 21 years of age or older; and
new text end

new text begin (2) a cannabis lounge owner shall not sell cannabis, usable cannabis, or cannabis-infused
products on the premises of a cannabis lounge unless the cannabis lounge is also licensed
as a retail cannabis store under section 340B.07.
new text end

new text begin (d) A local government may provide for additional limitations or requirements on the
location and operation of a cannabis lounge.
new text end

new text begin Subd. 2. new text end

new text begin Local regulations. new text end

new text begin (a) A local government may adopt ordinances or resolutions
governing the time, place, and manner of cannabis establishments or cannabis lounges
within the jurisdiction of the local government, including reasonable zoning rules that limit
the use of land for operation of a cannabis establishment or a cannabis lounge. The local
government may establish civil penalties for violations of the ordinances or resolutions
governing the time, place, or manner of the operation of cannabis establishments or cannabis
lounges.
new text end

new text begin (b) Any ordinance or resolution relating to cannabis establishments adopted by a local
government must not be more restrictive than similar ordinances or resolutions adopted by
the local government that apply to liquor stores or tobacco product shops.
new text end

new text begin Subd. 3. new text end

new text begin Open and public use. new text end

new text begin The governing body of a local government may adopt
an ordinance or resolution providing locations or circumstances in which the consumption
of usable cannabis or cannabis-infused products is allowed on property owned, leased, or
controlled by the local government.
new text end

new text begin Subd. 4. new text end

new text begin Cultivation for personal use. new text end

new text begin A local government is prohibited from enacting
or enforcing an ordinance or resolution that prohibits or limits the production or cultivation
of cannabis outdoors on private residential property by a person who is producing cannabis
within the legal limits for personal use under section 340B.20.
new text end

Sec. 20.

new text begin [340B.17] ADMINISTRATIVE ACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Administrative remedies. new text end

new text begin The commissioner may seek to remedy
violations by written warning, administrative meeting, cease and desist, stop-use, stop-sale,
removal, correction order, or an order, seizure, stipulation, or agreement, if the commissioner
determines that the remedy is in the public interest.
new text end

new text begin Subd. 2. new text end

new text begin Revocation and suspension. new text end

new text begin The commissioner may, after written notice and
hearing, revoke, suspend, or refuse to grant or renew a license if a person violates this
chapter or has a history within the last three years of violation of this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Cancellation of license. new text end

new text begin The commissioner may cancel or revoke a license, or
refuse to grant a license under this chapter if the licensee or applicant has used fraudulent
or deceptive practices in the evasion or attempted evasion of a provision of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Service of order or notice. new text end

new text begin If a person is not available for service of an order,
the commissioner may attach the order to the facility, site, or premises regulated under this
chapter or associated rules and notify the licensee.
new text end

Sec. 21.

new text begin [340B.18] CIVIL PENALTIES.
new text end

new text begin Subdivision 1. new text end

new text begin General penalty. new text end

new text begin Except as otherwise provided, a person who violates
this chapter or an order, standard, stipulation, agreement, or schedule of compliance of the
commissioner is subject to a civil penalty of up to $100 per day of the violation as determined
by the court.
new text end

new text begin Subd. 2. new text end

new text begin Recovery of penalties by civil action. new text end

new text begin The civil penalties and payments provided
for in this chapter may be recovered by a civil action brought by the county attorney or the
attorney general in the name of the state.
new text end

Sec. 22.

new text begin [340B.19] APPEALS OF COMMISSIONER'S ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of appeal. new text end

new text begin (a) After service of an order, a person has 45 days from
receipt of the order to notify the commissioner in writing that the person intends to contest
the order.
new text end

new text begin (b) If the person fails to notify the commissioner that the person intends to contest the
order, the order is a final order of the commissioner and not subject to further judicial or
administrative review.
new text end

new text begin Subd. 2. new text end

new text begin Administrative review. new text end

new text begin If a person notifies the commissioner that the person
intends to contest an order issued under this section, the state Office of Administrative
Hearings must conduct a hearing in accordance with the applicable provisions of chapter
14 for hearings in contested cases.
new text end

new text begin Subd. 3. new text end

new text begin Judicial review. new text end

new text begin Judicial review of a final decision in a contested case is
available as provided in chapter 14.
new text end

Sec. 23.

new text begin [340B.20] PERSONAL POSSESSION.
new text end

new text begin (a) It is not unlawful and it shall not be the basis for seizure or forfeiture of assets for a
person who is 21 years of age or older:
new text end

new text begin (1) to possess in the person's private dwelling 24 ounces or less of cannabis, cannabis
seeds, usable cannabis, or cannabis-infused products;
new text end

new text begin (2) to possess in public eight ounces or less of cannabis, cannabis seeds, usable cannabis,
or cannabis-infused products;
new text end

new text begin (3) to possess, display, or transport cannabis accessories;
new text end

new text begin (4) to purchase cannabis seeds, usable cannabis, or cannabis-infused products from a
retail cannabis store;
new text end

new text begin (5) to possess, grow, process, or transport no more than 24 cannabis plants, with 12 or
fewer being mature, flowering plants, provided that the cannabis produced by the plants is
not made available for sale;
new text end

new text begin (6) to transfer four ounces or less of usable cannabis without remuneration to a person
who is 21 years of age or older;
new text end

new text begin (7) to consume usable cannabis or cannabis-infused products, provided that nothing in
this section permits consumption that is conducted openly and publicly, except as otherwise
provided by law; and
new text end

new text begin (8) to assist another person who is 21 years of age or older in any of the acts described
under clauses (1) to (7).
new text end

new text begin (b) Nothing in this section permits a person to engage in, and does not prevent the
imposition of any civil, criminal, or other penalties for operating, navigating, or being in
actual physical control of any motor vehicle, aircraft, train, or motorboat, or working on
transportation property, equipment, or facilities while under the influence of cannabis, usable
cannabis, or a cannabis-infused product.
new text end

Sec. 24.

new text begin [340B.21] UNLAWFUL ACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Unlawful sales and possession; level I. new text end

new text begin It is unlawful to sell or possess
without a license issued pursuant to this chapter one or more mixtures of a total weight of
15 kilograms or more containing cannabis or tetrahydrocannabinols, including
cannabis-infused products with an equivalent amount of cannabis, or 500 or more cannabis
plants.
new text end

new text begin Subd. 2. new text end

new text begin Penalty; level I. new text end

new text begin A person convicted under subdivision 1 may be sentenced to
imprisonment for not more than 90 days or to payment of a fine of not more than $....... or
both.
new text end

new text begin Subd. 3. new text end

new text begin Unlawful sales and possession; level II. new text end

new text begin It is unlawful to sell or possess without
a license issued pursuant to this chapter one or more mixtures of a total weight of five
kilograms or more containing cannabis or tetrahydrocannabinols, including cannabis-infused
products with an equivalent amount of cannabis, or 250 or more cannabis plants.
new text end

new text begin Subd. 4. new text end

new text begin Penalty; level II. new text end

new text begin A person convicted under subdivision 3 may be sentenced
to imprisonment for not more than 90 days or to payment of a fine of not more than $.......,
or both.
new text end

new text begin Subd. 5. new text end

new text begin Unlawful sales and possession; level III. new text end

new text begin It is a petty misdemeanor to possess
without a license issued pursuant to this chapter one or more mixtures of a total weight of
24 ounces or more containing cannabis or tetrahydrocannabinols, including cannabis-infused
products with an equivalent amount of cannabis, or 24 or more cannabis plants.
new text end

new text begin Subd. 6. new text end

new text begin Other violations. new text end

new text begin Where no other penalty is specified, a person is guilty of a
misdemeanor if the person violates this chapter, a rule adopted under this chapter, or an
order, standard, stipulation, agreement, or schedule of compliance of the commissioner.
new text end

Sec. 25.

new text begin [340B.22] CONSUMPTION OF CANNABIS OR CANNABIS-INFUSED
PRODUCT IN MOTOR VEHICLE.
new text end

new text begin A person is guilty of a misdemeanor if the person consumes cannabis, usable cannabis,
or a cannabis-infused product in a motor vehicle when the motor vehicle is upon a street or
highway.
new text end

Sec. 26.

new text begin [340B.23] PERSONS UNDER 21; ILLEGAL ACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Consumption. new text end

new text begin It is a petty misdemeanor for any person under the age
of 21 to consume in any manner cannabis, usable cannabis, or a cannabis-infused product.
new text end

new text begin Subd. 2. new text end

new text begin Purchasing. new text end

new text begin It is a petty misdemeanor for any person:
new text end

new text begin (1) to sell, barter, furnish, or give cannabis, cannabis seeds, usable cannabis, or a
cannabis-infused product to a person under the age of 21;
new text end

new text begin (2) under the age of 21 to purchase or attempt to purchase any cannabis, cannabis seeds,
usable cannabis, or cannabis-infused products; and
new text end

new text begin (3) to induce a person over the age of 21 to purchase or procure cannabis, cannabis seeds,
usable cannabis, or cannabis-infused products, or to lend or knowingly permit the use of
the person's driver's license, driver's permit, Minnesota identification card, or other form of
identification by a person under the age of 21 for the purpose of purchasing or attempting
to purchase cannabis, cannabis seeds, usable cannabis, or cannabis-infused products.
new text end

new text begin Subd. 3. new text end

new text begin Possession. new text end

new text begin It is a petty misdemeanor for a person under the age of 21 to possess
cannabis, cannabis seeds, usable cannabis, or cannabis-infused products.
new text end

new text begin Subd. 4. new text end

new text begin Entering licensed premises. new text end

new text begin It is a petty misdemeanor for a person under the
age of 21 to enter a cannabis establishment.
new text end

new text begin Subd. 5. new text end

new text begin Misrepresentation of age. new text end

new text begin It is a petty misdemeanor for a person under the
age of 21 to claim to be 21 years of age or older for the purpose of purchasing cannabis,
cannabis seeds, usable cannabis, or cannabis-infused products.
new text end

new text begin Subd. 6. new text end

new text begin Proof of age defense; seizure of false identification new text end

new text begin (a) Proof of age for
purchasing or consuming cannabis, usable cannabis, or cannabis-infused products may be
established only by a government-issued identification card that includes the photograph
and date of birth of the person.
new text end

new text begin (b) In a prosecution under subdivision 2, clause (1), it is a defense for the defendant to
prove by a preponderance of the evidence that the defendant reasonably and in good faith
relied upon representations of proof of age authorized in paragraph (a) in selling, bartering,
furnishing, or gifting the cannabis, cannabis seeds, usable cannabis, or cannabis-infused
product.
new text end

new text begin (c) A retail cannabis store may seize a form of identification listed under paragraph (a)
if the retail cannabis store has reasonable grounds to believe that the form of identification
has been altered or falsified or is being used to violate any law. A retail cannabis store that
seizes a form of identification as authorized under this paragraph must deliver it to a law
enforcement agency within 24 hours of seizing it.
new text end

Sec. 27.

new text begin [340B.24] CONSUMPTION IN PUBLIC.
new text end

new text begin (a) A person is guilty of a petty misdemeanor if the person consumes cannabis, usable
cannabis, or a cannabis-infused product in a public place, except as otherwise provided by
law or by a local ordinance.
new text end

new text begin (b) For purposes of this section, "public place" means property owned, leased, or
controlled by a governmental unit or private property that is regularly and frequently open
to or made available for use by the public in sufficient numbers to give clear notice of the
property's current dedication to public use. Public place does not include a person's private
dwelling, the place of business owned or managed by a person, or private land possessed
by a person.
new text end

Sec. 28.

new text begin [340B.25] CONTRACTS.
new text end

new text begin A contract related to the operation of a cannabis establishment is enforceable. No contract
entered into by a cannabis establishment or an employee or agent of a cannabis establishment,
or by an entity that allows property to be used by a cannabis establishment or an employee
or agent of a cannabis establishment, shall be unenforceable or void on the basis that
cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling,
possessing, or consuming cannabis is prohibited under federal law.
new text end

Sec. 29.

new text begin [340B.26] CANNABIS ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin There is created in the state treasury a cannabis
account in the special revenue fund for deposit of revenue from the following:
new text end

new text begin (1) all revenues from the gross revenues cannabis tax collected under section 295.65;
new text end

new text begin (2) all revenue collected from the retail sales of cannabis seeds, usable cannabis,
cannabis-infused products, and cannabis accessories under chapter 297A; and
new text end

new text begin (3) all fees and penalties collected under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis account money; use. new text end

new text begin (a) The amount necessary to administer cannabis
taxes under chapters 295 and 297A are annually appropriated from the cannabis account in
the special revenue fund to the commissioner of revenue.
new text end

new text begin (b) The amount necessary to administer this chapter is annually appropriated from the
cannabis account in the special revenue fund to the commissioner.
new text end

new text begin (c) $15,000,000 each fiscal year is appropriated from the cannabis account to the
commissioner to repair the damages done to communities caused by the drug war by
promoting cannabis business development in low-income communities and communities
of color that have been disproportionately targeted for marijuana enforcement. To promote
such business development, the commissioner must, at a minimum, award grants to:
new text end

new text begin (1) impact-zone and minority-owned business applicants or impact-zone licensed persons
as described in section 340B.122; and
new text end

new text begin (2) microbusiness applicants or licensed microbusinesses as described in section
340B.122.
new text end

new text begin (d) The following amounts are annually appropriated from the cannabis account in each
fiscal year to the Board of Regents of the University of Minnesota:
new text end

new text begin (1) $1,000,000 is for the Department of Plant and Microbial Biology Department to
study the genetics, ecology, evolution, and molecular biology of cannabis;
new text end

new text begin (2) $1,000,000 is for the Department of Agronomy and Plant Genetics to develop cannabis
genetic materials that increase the efficiency, reliability, and profitability of cannabis
production and utilization within Minnesota; and
new text end

new text begin (3) $1,000,000 is for the Department of Medicine Research for research into the chemistry
and medical application of cannabis-related compounds.
new text end

new text begin (e) Of the funds remaining in the cannabis account after the appropriation required in
paragraphs (a) to (d), the remaining amount shall be appropriated annually as follows:
new text end

new text begin (1) 50 percent shall be annually appropriated to the commissioner of education for
additional funding for early childhood education and kindergarten through grade 12; and
new text end

new text begin (2) 50 percent shall be annually appropriated to the commissioner of health for the
creation, implementation, operation, and management of a responsible substance use and
chemical dependency education and public health program that contains the following:
new text end

new text begin (i) a public health hotline that provides referrals to substance abuse treatment providers,
utilizes evidence-based or research-based public health approaches to minimizing any harms
associated with substance abuse; and
new text end

new text begin (ii) a grant program for local health departments or other local community agencies that
supports development and implementation of safe and evidence-based cannabis consumption
education, substance abuse education, support for communities experiencing the collateral
consequences related to contact with the justice system, and coordinated intervention
strategies for substance abuse prevention and reduction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The appropriations required under this section are effective for
fiscal year 2022 and thereafter.
new text end

Sec. 30. new text beginAPPROPRIATION.
new text end

new text begin $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the general
fund to the commissioner of commerce to implement Minnesota Statutes, chapter 340B.
new text end

ARTICLE 2

CANNABIS TAXATION

Section 1.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 27. new text end

new text begin Disallowed section 280E expenses; cannabis manufacturers and cannabis
establishments.
new text end

new text begin The amount of expenses disallowed for federal income tax purposes under
section 280E of the Internal Revenue Code as amended through March 31, 2018, is a
subtraction. The subtraction applies to:
new text end

new text begin (1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7,
related to the business of medical cannabis under sections 152.21 to 152.37; and
new text end

new text begin (2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related
to the business of operating as a cannabis establishment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Disallowed section 280E expenses; cannabis manufacturers and cannabis
establishments.
new text end

new text begin The amount of expenses disallowed for federal income tax purposes under
section 280E of the Internal Revenue Code as amended through March 31, 2018, is a
subtraction. The subtraction applies to:
new text end

new text begin (1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7,
related to the business of medical cannabis under sections 152.21 to 152.37; and
new text end

new text begin (2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related
to the business of operating as a cannabis establishment.
new text end

Sec. 3.

new text begin [295.65] GROSS REVENUES CANNABIS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "cannabis" has the meaning given in section 340B.01, subdivision 4;
new text end

new text begin (2) "cannabis-infused products" has the meaning given in section 340B.01, subdivision
7;
new text end

new text begin (3) "cannabis processor" has the meaning given in section 340B.01, subdivision 8;
new text end

new text begin (4) "commissioner" means the commissioner of revenue;
new text end

new text begin (5) "gross revenues" means the total amount received by a cannabis processor in money
or otherwise for the sale of cannabis seeds, usable cannabis, and cannabis-infused products
to retail cannabis stores;
new text end

new text begin (6) "retail cannabis store" has the meaning given in section 340B.01, subdivision 18;
and
new text end

new text begin (7) "usable cannabis" has the meaning given in section 340B.01, subdivision 20.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis tax. new text end

new text begin A tax is imposed on each cannabis processor equal to 15 percent
of a cannabis processor's gross revenues.
new text end

new text begin Subd. 3. new text end

new text begin Estimated tax. new text end

new text begin (a) Each cannabis processor must make estimated payments of
the gross revenue tax required by this section for the calendar year in quarterly installments
to the commissioner by April 15, July 15, October 15, and January 15 of the following
calendar year.
new text end

new text begin (b) Estimated tax payments are not required if: (1) the tax for the current calendar year
is $500 or less; or (2) the tax for the previous calendar year is $500 or less.
new text end

new text begin Subd. 4. new text end

new text begin Electronic payments. new text end

new text begin A cannabis processor with an aggregate tax liability of
$10,000 or more in a fiscal year ending June 30 must remit all liabilities by electronic means
in all subsequent calendar years.
new text end

new text begin Subd. 5. new text end

new text begin Annual return. new text end

new text begin A cannabis processor must file an annual return reconciling
the estimated payments by March 15 of the following calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin The audit, assessment, refund, penalty, interest, enforcement,
collection remedies, appeal, and administrative provisions of chapters 270C and 289A apply
to the taxes imposed under this section.
new text end

new text begin Subd. 7. new text end

new text begin Interest on overpayments. new text end

new text begin Interest must be paid on an overpayment refunded
or credited to the taxpayer from the date of payment of the tax until the date the refund is
paid or credited. For purposes of this subdivision, the date of payment is the due date of the
return or the date of actual payment of the tax, whichever is later.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall deposit all revenues, including
penalties and interest, derived from the tax imposed by this section in the cannabis account
under section 340B.26.
new text end

Sec. 4.

Minnesota Statutes 2018, section 297A.61, subdivision 3, is amended to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited to,
each of the transactions listed in this subdivision. In applying the provisions of this chapter,
the terms "tangible personal property" and "retail sale" include the taxable services listed
in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
services, unless specifically provided otherwise. Services performed by an employee for
an employer are not taxable. Services performed by a partnership or association for another
partnership or association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed
between members of an affiliated group of corporations are not taxable. For purposes of
the preceding sentence, "affiliated group of corporations" means those entities that would
be classified as members of an affiliated group as defined under United States Code, title
26, section 1504, disregarding the exclusions in section 1504(b).

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration in
money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy; and

(4) dietary supplements.

(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten computer
software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas,deleted text begin ordeleted text end athletic
events,new text begin or cannabis lounges as defined in section 340B.16new text end and the making available of
amusement devices, tanning facilities, reducing salons, steam baths, health clubs, and spas
or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground, motel,
or trailer camp, including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a specific facility,
other than the renting or leasing of it for a continuous period of 30 days or more under an
enforceable written agreement that may not be terminated without prior notice and including
accommodations intermediary services provided in connection with other services provided
under this clause;

(3) nonresidential parking services, whether on a contractual, hourly, or other periodic
basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its members
sports and athletic facilities, without regard to whether a separate charge is assessed for use
of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public on
the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership dues.
Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:

(i) public roads;

(ii) cartways; and

(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services provided
by coin operated facilities operated by the customer, and rustproofing, undercoating, and
towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and pest
control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
or any organization at the direction of a county for monitoring and electronic surveillance
of persons placed on in-home detention pursuant to court order or under the direction of the
Minnesota Department of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
lines. Services performed under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or professional
or upon written referral from a licensed health care facility or professional for treatment of
illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and other
similar arrangements, but excluding veterinary and horse boarding services.

(h) A sale and a purchase includes the furnishing for a consideration of tangible personal
property or taxable services by the United States or any of its agencies or instrumentalities,
or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication services,
and pay television services. Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service,
mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this paragraph
are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if the
installation charges would be subject to the sales tax if the installation were provided by
the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
subdivision
11.

(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.

(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
includes all charges included in the privilege of admission's sales price, without deduction
for amenities that may be provided, unless the amenities are separately stated and the
purchaser of the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.

Sec. 5.

Minnesota Statutes 2018, section 297A.61, subdivision 4, is amended to read:


Subd. 4.

Retail sale.

(a) A "retail sale" means:

(1) any sale, lease, or rental of tangible personal property for any purpose, other than
resale, sublease, or subrent of items by the purchaser in the normal course of business as
defined in subdivision 21; and

(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale
by the purchaser in the normal course of business as defined in subdivision 21.

(b) A sale of property used by the owner only by leasing it to others or by holding it in
an effort to lease it, and put to no use by the owner other than resale after the lease or effort
to lease, is a sale of property for resale.

(c) A sale of master computer software that is purchased and used to make copies for
sale or lease is a sale of property for resale.

(d) A sale of building materials, supplies, and equipment to owners, contractors,
subcontractors, or builders for the erection of buildings or the alteration, repair, or
improvement of real property is a retail sale in whatever quantity sold, whether the sale is
for purposes of resale in the form of real property or otherwise.

(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for
installation of the floor covering is a retail sale and not a sale for resale since a sale of floor
covering which includes installation is a contract for the improvement of real property.

(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery,
plants, sod, trees, and similar items that includes installation is a contract for the improvement
of real property.

(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is
not considered a sale of property for resale.

(h) A sale of tangible personal property utilized or employed in the furnishing or
providing of services under subdivision 3, paragraph (g), clause (1), including, but not
limited to, property given as promotional items, is a retail sale and is not considered a sale
of property for resale.

(i) A sale of tangible personal property used in conducting lawful gambling under chapter
349 or the State Lottery under chapter 349A, including, but not limited to, property given
as promotional items, is a retail sale and is not considered a sale of property for resale.

(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense
goods or services, including, but not limited to, coin-operated devices, is a retail sale and
is not considered a sale of property for resale.

(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
payment becomes due under the terms of the agreement or the trade practices of the lessor
or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision
11
, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than
10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is
executed.

(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
title or possession of the tangible personal property.

(m) A sale of a bundled transaction in which one or more of the products included in
the bundle is a taxable product is a retail sale, except that if one of the products is a
telecommunication service, ancillary service, Internet access, or audio or video programming
service, and the seller has maintained books and records identifying through reasonable and
verifiable standards the portions of the price that are attributable to the distinct and separately
identifiable products, then the products are not considered part of a bundled transaction.
For purposes of this paragraph:

(1) the books and records maintained by the seller must be maintained in the regular
course of business, and do not include books and records created and maintained by the
seller primarily for tax purposes;

(2) books and records maintained in the regular course of business include, but are not
limited to, financial statements, general ledgers, invoicing and billing systems and reports,
and reports for regulatory tariffs and other regulatory matters; and

(3) books and records are maintained primarily for tax purposes when the books and
records identify taxable and nontaxable portions of the price, but the seller maintains other
books and records that identify different prices attributable to the distinct products included
in the same bundled transaction.

(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body
shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail
sale of the paint and materials. The motor vehicle repair or body shop that purchases motor
vehicle repair paint and motor vehicle repair materials for resale must either:

(1) separately state each item of paint and each item of materials, and the sales price of
each, on the invoice to the purchaser; or

(2) in order to calculate the sales price of the paint and materials, use a method which
estimates the amount and monetary value of the paint and materials used in the repair of
the motor vehicle by multiplying the number of labor hours by a rate of consideration for
the paint and materials used in the repair of the motor vehicle following industry standard
practices that fairly calculate the gross receipts from the retail sale of the motor vehicle
repair paint and motor vehicle repair materials. An industry standard practice fairly calculates
the gross receipts if the sales price of the paint and materials used or consumed in the repair
of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or
body shop business. Under this clause, the invoice must either separately state the "paint
and materials" as a single taxable item, or separately state "paint" as a taxable item and
"materials" as a taxable item. This clause does not apply to wholesale transactions at an
auto auction facility.

(o) A sale of specified digital products or other digital products to an end user with or
without rights of permanent use and regardless of whether rights of use are conditioned
upon payment by the purchaser is a retail sale. When a digital code has been purchased that
relates to specified digital products or other digital products, the subsequent receipt of or
access to the related specified digital products or other digital products is not a retail sale.

(p) A payment made to a cooperative electric association or public utility as a contribution
in aid of construction is a contract for improvement to real property and is not a retail sale.

new text begin (q) A sale of cannabis seeds, usable cannabis, cannabis-infused products, or cannabis
accessories by a retail cannabis store is a retail sale and is not considered a sale of property
for resale.
new text end

Sec. 6.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 59. new text end

new text begin Cannabis. new text end

new text begin "Cannabis" has the meaning given in section 340B.01, subdivision
4.
new text end

Sec. 7.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 60. new text end

new text begin Cannabis accessories. new text end

new text begin "Cannabis accessories" has the meaning given in
section 340B.01, subdivision 5.
new text end

Sec. 8.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 61. new text end

new text begin Cannabis-infused products. new text end

new text begin "Cannabis-infused products" has the meaning
given in section 340B.01, subdivision 7.
new text end

Sec. 9.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 62. new text end

new text begin Usable cannabis. new text end

new text begin "Usable cannabis" has the meaning given in section 340B.01,
subdivision 20.
new text end

Sec. 10.

Minnesota Statutes 2018, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

Generally.

Except as otherwise provided in subdivision 3new text begin or 3anew text end or in this
chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as defined
in section 297A.61, subdivision 4, made in this state or to a destination in this state by a
person who is required to have or voluntarily obtains a permit under section 297A.83,
subdivision 1
.

Sec. 11.

Minnesota Statutes 2018, section 297A.62, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Cannabis rate. new text end

new text begin A sales tax of 10 percent is imposed on the gross receipts
from the retail sales of cannabis seeds, usable cannabis, cannabis-infused products, cannabis
accessories, and the privilege of admission to a cannabis lounge made in this state.
new text end

Sec. 12.

Minnesota Statutes 2018, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. For the remittances between July 1,
2017, and June 30, 2019, the monthly deposit amount is $2,628,000. For remittances in
each subsequent fiscal year, the monthly deposit amount is $12,137,000. For purposes of
this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11,
and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories,
and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph,
"tire" means any tire of the type used on highway vehicles, if wholly or partially made of
rubber and if marked according to federal regulations for highway use.

(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

(i) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

new text begin (k) The commissioner shall deposit the revenues, including interest and penalties,
collected from the taxes derived from the sales of cannabis seeds, usable cannabis,
cannabis-infused products, cannabis accessories, and the privilege of admission to a cannabis
lounge in the state treasury and deposit them in the cannabis account under section 340B.26.
new text end

deleted text begin (k)deleted text endnew text begin (l)new text end The revenues deposited under paragraphs (a) to deleted text begin(j)deleted text endnew text begin (k)new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

Sec. 13.

Minnesota Statutes 2018, section 297A.99, subdivision 1, is amended to read:


Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) new text beginunder section
297A.9935, (4)
new text endif permitted by special law, or deleted text begin(4)deleted text endnew text begin (5)new text end if the political subdivision enacted
and imposed the tax before January 1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a special
excise tax on motor vehicles.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local option sales tax.

(e) Notwithstanding paragraph (d), a political subdivision may expend funds to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted under subdivision 2;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed sales tax on consumer purchases;
and

(5) provide facts and data related to the programs and projects to be funded with the
sales tax.

Sec. 14.

new text begin [297A.9935] LOCAL CANNABIS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding section 477A.016 or any other law, a
statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the governing board of the town at the annual town meeting, or at a special town
meeting, impose a tax of up to three percent on the gross receipts from the retail sale of
cannabis seeds, usable cannabis, cannabis-infused products, cannabis accessories, or the
privilege of admission to a cannabis lounge.
new text end

new text begin Subd. 2. new text end

new text begin Joint powers agreement. new text end

new text begin Any statutory or home rule charter city, town, or
county when the county board is acting as a town board with respect to an unorganized
territory, may enter into a joint exercise of powers agreement pursuant to section 471.59
for the purpose of imposing the tax and disposing of its proceeds pursuant to this section.
new text end

new text begin Subd. 3. new text end

new text begin Collection. new text end

new text begin The statutory or home rule charter city may agree with the
commissioner of revenue that a tax imposed pursuant to this section shall be collected by
the commissioner together with the tax imposed by chapter 297A, and subject to the same
interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
remitted to the city.
new text end

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective for sales and purchases made after December 31, 2021.
new text end

ARTICLE 3

CLEAN INDOOR AIR ACT

Section 1.

Minnesota Statutes 2018, section 144.413, subdivision 4, is amended to read:


Subd. 4.

Smoking.

"Smoking" means inhaling or exhaling smoke from any lighted cigar,
cigarette, new text beginor new text endpipedeleted text begin,deleted text endnew text begin; any lighted cannabis;new text end or any other lighted tobacco new text beginproduct, cannabis
product,
new text endor plant product. Smoking also includesnew text begin: (1)new text end carrying a lighted cigar, cigarette, new text beginor
new text end pipedeleted text begin,deleted text endnew text begin; any lighted cannabis;new text end or any other lighted tobacco new text beginproduct, cannabis product, new text endor plant
product intended for inhalationnew text begin; and (2) inhaling or exhaling vapor from or any other use
of an electronic delivery device or an electronic cannabis delivery device
new text end.

Sec. 2.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Cannabis. new text end

new text begin "Cannabis" has the meaning given in section 340B.01, subdivision
4.
new text end

Sec. 3.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 7. new text end

new text begin Cannabis-infused product. new text end

new text begin "Cannabis-infused product" has the meaning given
in section 340B.01, subdivision 7.
new text end

Sec. 4.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Electronic cannabis delivery device. new text end

new text begin "Electronic cannabis delivery device"
means any product containing or delivering cannabis or cannabis derivatives that can be
used by a person to simulate smoking in the delivery of cannabis or cannabis derivatives
through inhalation of vapor from the product. Electronic cannabis delivery device includes
any component part of a product, whether or not marketed or sold separately.
new text end

Sec. 5.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Electronic delivery device. new text end

new text begin "Electronic delivery device" has the meaning given
in section 609.685, subdivision 1.
new text end

Sec. 6.

Minnesota Statutes 2018, section 144.414, subdivision 2, is amended to read:


Subd. 2.

Day care premises.

deleted text begin(a)deleted text end Smoking is prohibited in a day care center licensed
under Minnesota Rules, parts 9503.0005 to 9503.0170, or in a family home or in a group
family day care provider home licensed under Minnesota Rules, parts 9502.0300 to
9502.0445, during its hours of operation. The proprietor of a family home or group family
day care provider must disclose to parents or guardians of children cared for on the premises
if the proprietor permits smoking outside of its hours of operation. Disclosure must include
posting on the premises a conspicuous written notice and orally informing parents or
guardians.

deleted text begin (b) For purposes of this subdivision, the definition of smoking includes the use of
electronic cigarettes, including the inhaling and exhaling of vapor from any electronic
delivery device as defined in section 609.685, subdivision 1.
deleted text end

Sec. 7.

Minnesota Statutes 2018, section 144.414, subdivision 3, is amended to read:


Subd. 3.

Health care facilities and clinics.

(a) Smoking is prohibited in any area of a
hospital, health care clinic, doctor's office, licensed residential facility for children, or other
health care-related facility, except that a patient or resident in a nursing home, boarding
care facility, or licensed residential facility for adults may smoke in a designated separate,
enclosed room maintained in accordance with applicable state and federal laws.

(b) Except as provided in section 246.0141, smoking by patients in a locked psychiatric
unit may be allowed in a separated well-ventilated area in the unit under a policy established
by the administrator of the program that allows the treating physician to approve smoking
if, in the opinion of the treating physician, the benefits to be gained in obtaining patient
cooperation with treatment outweigh the negative impacts of smoking.

deleted text begin (c) For purposes of this subdivision, the definition of smoking includes the use of
electronic cigarettes, including the inhaling and exhaling of vapor from any electronic
delivery device as defined in section 609.685, subdivision 1.
deleted text end

Sec. 8.

Minnesota Statutes 2018, section 144.4165, is amended to read:


144.4165 TOBACCO PRODUCTSnew text begin, CANNABIS, CANNABIS PRODUCTSnew text endnew text begin,
ELECTRONIC DELIVERY DEVICES, AND ELECTRONIC CANNABIS DELIVERY
DEVICES
new text end PROHIBITED IN PUBLIC SCHOOLS.

new text begin Subdivision 1. new text end

new text begin Tobacco products; electronic delivery devices. new text end

No person shall at any
time smoke, chew, or otherwise ingest tobacco or a tobacco product, or inhale or exhale
vapor from an electronic delivery device deleted text beginas defined in section 609.685, subdivision 1,deleted text end in a
public school, as defined in section 120A.05, subdivisions 9, 11, and 13, and no person
under the age of 18 shall possess any of these items. This prohibition extends to all facilities,
whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents,
contracts for, or controls. Nothing in this section shall prohibit the lighting of tobacco by
an adult as a part of a traditional Indian spiritual or cultural ceremony. For purposes of this
section, an Indian is a person who is a member of an Indian tribe as defined in section
260.755 subdivision 12.

new text begin Subd. 2. new text end

new text begin Cannabis, cannabis products, electronic cannabis delivery devices. new text end

new text begin Except
as permitted under section 152.345, no person shall at any time engage in any of the following
in a public school, as defined in section 120A.05, subdivisions 9, 11, and 13:
new text end

new text begin (1) smoke, ingest, consume, or otherwise use cannabis or a cannabis-infused product;
new text end

new text begin (2) inhale or exhale vapor from an electronic cannabis delivery device; or
new text end

new text begin (3) possess any of the items listed in clause (1) or (2).
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 144.414, subdivision 5, new text end new text begin is repealed.
new text end

ARTICLE 4

CONTROLLED SUBSTANCE ACT CONFORMING CHANGES AND
EXPUNGEMENT

Section 1.

Minnesota Statutes 2018, section 152.01, subdivision 5a, is amended to read:


Subd. 5a.

Hallucinogen.

"Hallucinogen" means any hallucinogen listed in section 152.02,
subdivision 2
, paragraph (d), or Minnesota Rules, part 6800.4210, item Cdeleted text begin, except marijuana
and Tetrahydrocannabinols
deleted text end.

Sec. 2.

Minnesota Statutes 2018, section 152.02, subdivision 2, is amended to read:


Subd. 2.

Schedule I.

(a) Schedule I consists of the substances listed in this subdivision.

(b) Opiates. Unless specifically excepted or unless listed in another schedule, any of the
following substances, including their analogs, isomers, esters, ethers, salts, and salts of
isomers, esters, and ethers, whenever the existence of the analogs, isomers, esters, ethers,
and salts is possible:

(1) acetylmethadol;

(2) allylprodine;

(3) alphacetylmethadol (except levo-alphacetylmethadol, also known as levomethadyl
acetate);

(4) alphameprodine;

(5) alphamethadol;

(6) alpha-methylfentanyl benzethidine;

(7) betacetylmethadol;

(8) betameprodine;

(9) betamethadol;

(10) betaprodine;

(11) clonitazene;

(12) dextromoramide;

(13) diampromide;

(14) diethyliambutene;

(15) difenoxin;

(16) dimenoxadol;

(17) dimepheptanol;

(18) dimethyliambutene;

(19) dioxaphetyl butyrate;

(20) dipipanone;

(21) ethylmethylthiambutene;

(22) etonitazene;

(23) etoxeridine;

(24) furethidine;

(25) hydroxypethidine;

(26) ketobemidone;

(27) levomoramide;

(28) levophenacylmorphan;

(29) 3-methylfentanyl;

(30) acetyl-alpha-methylfentanyl;

(31) alpha-methylthiofentanyl;

(32) benzylfentanyl beta-hydroxyfentanyl;

(33) beta-hydroxy-3-methylfentanyl;

(34) 3-methylthiofentanyl;

(35) thenylfentanyl;

(36) thiofentanyl;

(37) para-fluorofentanyl;

(38) morpheridine;

(39) 1-methyl-4-phenyl-4-propionoxypiperidine;

(40) noracymethadol;

(41) norlevorphanol;

(42) normethadone;

(43) norpipanone;

(44) 1-(2-phenylethyl)-4-phenyl-4-acetoxypiperidine (PEPAP);

(45) phenadoxone;

(46) phenampromide;

(47) phenomorphan;

(48) phenoperidine;

(49) piritramide;

(50) proheptazine;

(51) properidine;

(52) propiram;

(53) racemoramide;

(54) tilidine;

(55) trimeperidine;

(56) N-(1-Phenethylpiperidin-4-yl)-N-phenylacetamide (acetyl fentanyl);

(57) 3,4-dichloro-N-[(1R,2R)-2-(dimethylamino)cyclohexyl]-N-
methylbenzamide(U47700);

(58) N-phenyl-N-[1-(2-phenylethyl)piperidin-4-yl]furan-2-carboxamide(furanylfentanyl);
and

(59) 4-(4-bromophenyl)-4-dimethylamino-1-phenethylcyclohexanol (bromadol).

(c) Opium derivatives. Any of the following substances, their analogs, salts, isomers,
and salts of isomers, unless specifically excepted or unless listed in another schedule,
whenever the existence of the analogs, salts, isomers, and salts of isomers is possible:

(1) acetorphine;

(2) acetyldihydrocodeine;

(3) benzylmorphine;

(4) codeine methylbromide;

(5) codeine-n-oxide;

(6) cyprenorphine;

(7) desomorphine;

(8) dihydromorphine;

(9) drotebanol;

(10) etorphine;

(11) heroin;

(12) hydromorphinol;

(13) methyldesorphine;

(14) methyldihydromorphine;

(15) morphine methylbromide;

(16) morphine methylsulfonate;

(17) morphine-n-oxide;

(18) myrophine;

(19) nicocodeine;

(20) nicomorphine;

(21) normorphine;

(22) pholcodine; and

(23) thebacon.

(d) Hallucinogens. Any material, compound, mixture or preparation which contains any
quantity of the following substances, their analogs, salts, isomers (whether optical, positional,
or geometric), and salts of isomers, unless specifically excepted or unless listed in another
schedule, whenever the existence of the analogs, salts, isomers, and salts of isomers is
possible:

(1) methylenedioxy amphetamine;

(2) methylenedioxymethamphetamine;

(3) methylenedioxy-N-ethylamphetamine (MDEA);

(4) n-hydroxy-methylenedioxyamphetamine;

(5) 4-bromo-2,5-dimethoxyamphetamine (DOB);

(6) 2,5-dimethoxyamphetamine (2,5-DMA);

(7) 4-methoxyamphetamine;

(8) 5-methoxy-3, 4-methylenedioxyamphetamine;

(9) alpha-ethyltryptamine;

(10) bufotenine;

(11) diethyltryptamine;

(12) dimethyltryptamine;

(13) 3,4,5-trimethoxyamphetamine;

(14) 4-methyl-2, 5-dimethoxyamphetamine (DOM);

(15) ibogaine;

(16) lysergic acid diethylamide (LSD);

(17) mescaline;

(18) parahexyl;

(19) N-ethyl-3-piperidyl benzilate;

(20) N-methyl-3-piperidyl benzilate;

(21) psilocybin;

(22) psilocyn;

(23) tenocyclidine (TPCP or TCP);

(24) N-ethyl-1-phenyl-cyclohexylamine (PCE);

(25) 1-(1-phenylcyclohexyl) pyrrolidine (PCPy);

(26) 1-[1-(2-thienyl)cyclohexyl]-pyrrolidine (TCPy);

(27) 4-chloro-2,5-dimethoxyamphetamine (DOC);

(28) 4-ethyl-2,5-dimethoxyamphetamine (DOET);

(29) 4-iodo-2,5-dimethoxyamphetamine (DOI);

(30) 4-bromo-2,5-dimethoxyphenethylamine (2C-B);

(31) 4-chloro-2,5-dimethoxyphenethylamine (2C-C);

(32) 4-methyl-2,5-dimethoxyphenethylamine (2C-D);

(33) 4-ethyl-2,5-dimethoxyphenethylamine (2C-E);

(34) 4-iodo-2,5-dimethoxyphenethylamine (2C-I);

(35) 4-propyl-2,5-dimethoxyphenethylamine (2C-P);

(36) 4-isopropylthio-2,5-dimethoxyphenethylamine (2C-T-4);

(37) 4-propylthio-2,5-dimethoxyphenethylamine (2C-T-7);

(38) 2-(8-bromo-2,3,6,7-tetrahydrofuro [2,3-f][1]benzofuran-4-yl)ethanamine
(2-CB-FLY);

(39) bromo-benzodifuranyl-isopropylamine (Bromo-DragonFLY);

(40) alpha-methyltryptamine (AMT);

(41) N,N-diisopropyltryptamine (DiPT);

(42) 4-acetoxy-N,N-dimethyltryptamine (4-AcO-DMT);

(43) 4-acetoxy-N,N-diethyltryptamine (4-AcO-DET);

(44) 4-hydroxy-N-methyl-N-propyltryptamine (4-HO-MPT);

(45) 4-hydroxy-N,N-dipropyltryptamine (4-HO-DPT);

(46) 4-hydroxy-N,N-diallyltryptamine (4-HO-DALT);

(47) 4-hydroxy-N,N-diisopropyltryptamine (4-HO-DiPT);

(48) 5-methoxy-N,N-diisopropyltryptamine (5-MeO-DiPT);

(49) 5-methoxy-?-methyltryptamine (5-MeO-AMT);

(50) 5-methoxy-N,N-dimethyltryptamine (5-MeO-DMT);

(51) 5-methylthio-N,N-dimethyltryptamine (5-MeS-DMT);

(52) 5-methoxy-N-methyl-N-isopropyltryptamine (5-MeO-MiPT);

(53) 5-methoxy-?-ethyltryptamine (5-MeO-AET);

(54) 5-methoxy-N,N-dipropyltryptamine (5-MeO-DPT);

(55) 5-methoxy-N,N-diethyltryptamine (5-MeO-DET);

(56) 5-methoxy-N,N-diallyltryptamine (5-MeO-DALT);

(57) methoxetamine (MXE);

(58) 5-iodo-2-aminoindane (5-IAI);

(59) 5,6-methylenedioxy-2-aminoindane (MDAI);

(60) 2-(4-bromo-2,5-dimethoxyphenyl)-N-(2-methoxybenzyl)ethanamine (25B-NBOMe);

(61) 2-(4-chloro-2,5-dimethoxyphenyl)-N-(2-methoxybenzyl)ethanamine (25C-NBOMe);

(62) 2-(4-iodo-2,5-dimethoxyphenyl)-N-(2-methoxybenzyl)ethanamine (25I-NBOMe);

(63) 2-(2,5-Dimethoxyphenyl)ethanamine (2C-H);

(64) 2-(4-Ethylthio-2,5-dimethoxyphenyl)ethanamine (2C-T-2);

(65) N,N-Dipropyltryptamine (DPT);

(66) 3-[1-(Piperidin-1-yl)cyclohexyl]phenol (3-HO-PCP);

(67) N-ethyl-1-(3-methoxyphenyl)cyclohexanamine (3-MeO-PCE);

(68) 4-[1-(3-methoxyphenyl)cyclohexyl]morpholine (3-MeO-PCMo);

(69) 1-[1-(4-methoxyphenyl)cyclohexyl]-piperidine (methoxydine, 4-MeO-PCP);

(70) 2-(2-Chlorophenyl)-2-(ethylamino)cyclohexan-1-one (N-Ethylnorketamine,
ethketamine, NENK);

(71) methylenedioxy-N,N-dimethylamphetamine (MDDMA);

(72) 3-(2-Ethyl(methyl)aminoethyl)-1H-indol-4-yl (4-AcO-MET); and

(73) 2-Phenyl-2-(methylamino)cyclohexanone (deschloroketamine).

(e) Peyote. All parts of the plant presently classified botanically as Lophophora williamsii
Lemaire, whether growing or not, the seeds thereof, any extract from any part of the plant,
and every compound, manufacture, salts, derivative, mixture, or preparation of the plant,
its seeds or extracts. The listing of peyote as a controlled substance in Schedule I does not
apply to the nondrug use of peyote in bona fide religious ceremonies of the American Indian
Church, and members of the American Indian Church are exempt from registration. Any
person who manufactures peyote for or distributes peyote to the American Indian Church,
however, is required to obtain federal registration annually and to comply with all other
requirements of law.

(f) Central nervous system depressants. Unless specifically excepted or unless listed in
another schedule, any material compound, mixture, or preparation which contains any
quantity of the following substances, their analogs, salts, isomers, and salts of isomers
whenever the existence of the analogs, salts, isomers, and salts of isomers is possible:

(1) mecloqualone;

(2) methaqualone;

(3) gamma-hydroxybutyric acid (GHB), including its esters and ethers;

(4) flunitrazepam; and

(5) 2-(2-Methoxyphenyl)-2-(methylamino)cyclohexanone (2-MeO-2-deschloroketamine,
methoxyketamine).

(g) Stimulants. Unless specifically excepted or unless listed in another schedule, any
material compound, mixture, or preparation which contains any quantity of the following
substances, their analogs, salts, isomers, and salts of isomers whenever the existence of the
analogs, salts, isomers, and salts of isomers is possible:

(1) aminorex;

(2) cathinone;

(3) fenethylline;

(4) methcathinone;

(5) methylaminorex;

(6) N,N-dimethylamphetamine;

(7) N-benzylpiperazine (BZP);

(8) methylmethcathinone (mephedrone);

(9) 3,4-methylenedioxy-N-methylcathinone (methylone);

(10) methoxymethcathinone (methedrone);

(11) methylenedioxypyrovalerone (MDPV);

(12) 3-fluoro-N-methylcathinone (3-FMC);

(13) methylethcathinone (MEC);

(14) 1-benzofuran-6-ylpropan-2-amine (6-APB);

(15) dimethylmethcathinone (DMMC);

(16) fluoroamphetamine;

(17) fluoromethamphetamine;

(18) ?-methylaminobutyrophenone (MABP or buphedrone);

(19) 1-(1,3-benzodioxol-5-yl)-2-(methylamino)butan-1-one (butylone);

(20) 2-(methylamino)-1-(4-methylphenyl)butan-1-one (4-MEMABP or BZ-6378);

(21) 1-(naphthalen-2-yl)-2-(pyrrolidin-1-yl) pentan-1-one (naphthylpyrovalerone or
naphyrone);

(22) (alpha-pyrrolidinopentiophenone (alpha-PVP);

(23) (RS)-1-(4-methylphenyl)-2-(1-pyrrolidinyl)-1-hexanone (4-Me-PHP or MPHP);

(24) 2-(1-pyrrolidinyl)-hexanophenone (Alpha-PHP);

(25) 4-methyl-N-ethylcathinone (4-MEC);

(26) 4-methyl-alpha-pyrrolidinopropiophenone (4-MePPP);

(27) 2-(methylamino)-1-phenylpentan-1-one (pentedrone);

(28) 1-(1,3-benzodioxol-5-yl)-2-(methylamino)pentan-1-one (pentylone);

(29) 4-fluoro-N-methylcathinone (4-FMC);

(30) 3,4-methylenedioxy-N-ethylcathinone (ethylone);

(31) alpha-pyrrolidinobutiophenone (?-PBP);

(32) 5-(2-Aminopropyl)-2,3-dihydrobenzofuran (5-APDB);

(33) 1-phenyl-2-(1-pyrrolidinyl)-1-heptanone (PV8);

(34) 6-(2-Aminopropyl)-2,3-dihydrobenzofuran (6-APDB);

(35) 4-methyl-alpha-ethylaminopentiophenone (4-MEAPP);

(36) 4'-chloro-alpha-pyrrolidinopropiophenone (4'-chloro-PPP);

(37) 1-(1,3-Benzodioxol-5-yl)-2-(dimethylamino)butan-1-one (dibutylone, bk-DMBDB);

(38) 1-(3-chlorophenyl) piperazine (meta-chlorophenylpiperazine or mCPP); and

(39) any other substance, except bupropion or compounds listed under a different
schedule, that is structurally derived from 2-aminopropan-1-one by substitution at the
1-position with either phenyl, naphthyl, or thiophene ring systems, whether or not the
compound is further modified in any of the following ways:

(i) by substitution in the ring system to any extent with alkyl, alkylenedioxy, alkoxy,
haloalkyl, hydroxyl, or halide substituents, whether or not further substituted in the ring
system by one or more other univalent substituents;

(ii) by substitution at the 3-position with an acyclic alkyl substituent;

(iii) by substitution at the 2-amino nitrogen atom with alkyl, dialkyl, benzyl, or
methoxybenzyl groups; or

(iv) by inclusion of the 2-amino nitrogen atom in a cyclic structure.

(h) deleted text beginMarijuana, tetrahydrocannabinols, anddeleted text end Synthetic cannabinoids. Unless specifically
excepted or unless listed in another schedule, any deleted text beginnatural ordeleted text end synthetic material, compound,
mixture, or preparation that contains any quantity of the following substances, their analogs,
isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, whenever the existence
of the isomers, esters, ethers, or salts is possible:

(1) deleted text beginmarijuana;
deleted text end

deleted text begin (2) tetrahydrocannabinols naturally contained in a plant of the genus Cannabis,deleted text end synthetic
equivalents of the substances contained in the cannabis plant or in the resinous extractives
of the plant, or synthetic substances with similar chemical structure and pharmacological
activity to those substances contained in the plant or resinous extract, including, but not
limited to, 1 cis or trans tetrahydrocannabinol, 6 cis or trans tetrahydrocannabinol, and 3,4
cis or trans tetrahydrocannabinol;

deleted text begin (3)deleted text endnew text begin (2)new text end synthetic cannabinoids, including the following substances:

(i) Naphthoylindoles, which are any compounds containing a 3-(1-napthoyl)indole
structure with substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl,
alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or
2-(4-morpholinyl)ethyl group, whether or not further substituted in the indole ring to any
extent and whether or not substituted in the naphthyl ring to any extent. Examples of
naphthoylindoles include, but are not limited to:

(A) 1-Pentyl-3-(1-naphthoyl)indole (JWH-018 and AM-678);

(B) 1-Butyl-3-(1-naphthoyl)indole (JWH-073);

(C) 1-Pentyl-3-(4-methoxy-1-naphthoyl)indole (JWH-081);

(D) 1-[2-(4-morpholinyl)ethyl]-3-(1-naphthoyl)indole (JWH-200);

(E) 1-Propyl-2-methyl-3-(1-naphthoyl)indole (JWH-015);

(F) 1-Hexyl-3-(1-naphthoyl)indole (JWH-019);

(G) 1-Pentyl-3-(4-methyl-1-naphthoyl)indole (JWH-122);

(H) 1-Pentyl-3-(4-ethyl-1-naphthoyl)indole (JWH-210);

(I) 1-Pentyl-3-(4-chloro-1-naphthoyl)indole (JWH-398);

(J) 1-(5-fluoropentyl)-3-(1-naphthoyl)indole (AM-2201).

(ii) Napthylmethylindoles, which are any compounds containing a
1H-indol-3-yl-(1-naphthyl)methane structure with substitution at the nitrogen atom of the
indole ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl,
1-(N-methyl-2-piperidinyl)methyl or 2-(4-morpholinyl)ethyl group, whether or not further
substituted in the indole ring to any extent and whether or not substituted in the naphthyl
ring to any extent. Examples of naphthylmethylindoles include, but are not limited to:

(A) 1-Pentyl-1H-indol-3-yl-(1-naphthyl)methane (JWH-175);

(B) 1-Pentyl-1H-indol-3-yl-(4-methyl-1-naphthyl)methane (JWH-184).

(iii) Naphthoylpyrroles, which are any compounds containing a 3-(1-naphthoyl)pyrrole
structure with substitution at the nitrogen atom of the pyrrole ring by an alkyl, haloalkyl,
alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or
2-(4-morpholinyl)ethyl group whether or not further substituted in the pyrrole ring to any
extent, whether or not substituted in the naphthyl ring to any extent. Examples of
naphthoylpyrroles include, but are not limited to,
(5-(2-fluorophenyl)-1-pentylpyrrol-3-yl)-naphthalen-1-ylmethanone (JWH-307).

(iv) Naphthylmethylindenes, which are any compounds containing a naphthylideneindene
structure with substitution at the 3-position of the indene ring by an alkyl, haloalkyl, alkenyl,
cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or
2-(4-morpholinyl)ethyl group whether or not further substituted in the indene ring to any
extent, whether or not substituted in the naphthyl ring to any extent. Examples of
naphthylemethylindenes include, but are not limited to,
E-1-[1-(1-naphthalenylmethylene)-1H-inden-3-yl]pentane (JWH-176).

(v) Phenylacetylindoles, which are any compounds containing a 3-phenylacetylindole
structure with substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl,
alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or
2-(4-morpholinyl)ethyl group whether or not further substituted in the indole ring to any
extent, whether or not substituted in the phenyl ring to any extent. Examples of
phenylacetylindoles include, but are not limited to:

(A) 1-(2-cyclohexylethyl)-3-(2-methoxyphenylacetyl)indole (RCS-8);

(B) 1-pentyl-3-(2-methoxyphenylacetyl)indole (JWH-250);

(C) 1-pentyl-3-(2-methylphenylacetyl)indole (JWH-251);

(D) 1-pentyl-3-(2-chlorophenylacetyl)indole (JWH-203).

(vi) Cyclohexylphenols, which are compounds containing a
2-(3-hydroxycyclohexyl)phenol structure with substitution at the 5-position of the phenolic
ring by an alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl,
1-(N-methyl-2-piperidinyl)methyl or 2-(4-morpholinyl)ethyl group whether or not substituted
in the cyclohexyl ring to any extent. Examples of cyclohexylphenols include, but are not
limited to:

(A) 5-(1,1-dimethylheptyl)-2-[(1R,3S)-3-hydroxycyclohexyl]-phenol (CP 47,497);

(B) 5-(1,1-dimethyloctyl)-2-[(1R,3S)-3-hydroxycyclohexyl]-phenol
(Cannabicyclohexanol or CP 47,497 C8 homologue);

(C) 5-(1,1-dimethylheptyl)-2-[(1R,2R)-5-hydroxy-2-(3-hydroxypropyl)cyclohexyl]
-phenol (CP 55,940).

(vii) Benzoylindoles, which are any compounds containing a 3-(benzoyl)indole structure
with substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl, alkenyl,
cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or
2-(4-morpholinyl)ethyl group whether or not further substituted in the indole ring to any
extent and whether or not substituted in the phenyl ring to any extent. Examples of
benzoylindoles include, but are not limited to:

(A) 1-Pentyl-3-(4-methoxybenzoyl)indole (RCS-4);

(B) 1-(5-fluoropentyl)-3-(2-iodobenzoyl)indole (AM-694);

(C) (4-methoxyphenyl-[2-methyl-1-(2-(4-morpholinyl)ethyl)indol-3-yl]methanone (WIN
48,098 or Pravadoline).

(viii) Others specifically named:

(A) (6aR,10aR)-9-(hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)
-6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol (HU-210);

(B) (6aS,10aS)-9-(hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)
-6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol (Dexanabinol or HU-211);

(C) 2,3-dihydro-5-methyl-3-(4-morpholinylmethyl)pyrrolo[1,2,3-de]
-1,4-benzoxazin-6-yl-1-naphthalenylmethanone (WIN 55,212-2);

(D) (1-pentylindol-3-yl)-(2,2,3,3-tetramethylcyclopropyl)methanone (UR-144);

(E) (1-(5-fluoropentyl)-1H-indol-3-yl)(2,2,3,3-tetramethylcyclopropyl)methanone
(XLR-11);

(F) 1-pentyl-N-tricyclo[3.3.1.13,7]dec-1-yl-1H-indazole-3-carboxamide
(AKB-48(APINACA));

(G) N-((3s,5s,7s)-adamantan-1-yl)-1-(5-fluoropentyl)-1H-indazole-3-carboxamide
(5-Fluoro-AKB-48);

(H) 1-pentyl-8-quinolinyl ester-1H-indole-3-carboxylic acid (PB-22);

(I) 8-quinolinyl ester-1-(5-fluoropentyl)-1H-indole-3-carboxylic acid (5-Fluoro PB-22);

(J) N-[(1S)-1-(aminocarbonyl)-2-methylpropyl]-1-pentyl-1H-indazole- 3-carboxamide
(AB-PINACA);

(K) N-[(1S)-1-(aminocarbonyl)-2-methylpropyl]-1-[(4-fluorophenyl)methyl]-
1H-indazole-3-carboxamide (AB-FUBINACA);

(L) N-[(1S)-1-(aminocarbonyl)-2-methylpropyl]-1-(cyclohexylmethyl)-1H-
indazole-3-carboxamide(AB-CHMINACA);

(M) (S)-methyl 2-(1-(5-fluoropentyl)-1H-indazole-3-carboxamido)-3- methylbutanoate
(5-fluoro-AMB);

(N) [1-(5-fluoropentyl)-1H-indazol-3-yl](naphthalen-1-yl) methanone (THJ-2201);

(O) (1-(5-fluoropentyl)-1H-benzo[d]imidazol-2-yl)(naphthalen-1-yl)methanone)
(FUBIMINA);

(P) (7-methoxy-1-(2-morpholinoethyl)-N-((1S,2S,4R)-1,3,3-trimethylbicyclo
[2.2.1]heptan-2-yl)-1H-indole-3-carboxamide (MN-25 or UR-12);

(Q) (S)-N-(1-amino-3-methyl-1-oxobutan-2-yl)-1-(5-fluoropentyl)
-1H-indole-3-carboxamide (5-fluoro-ABICA);

(R) N-(1-amino-3-phenyl-1-oxopropan-2-yl)-1-(5-fluoropentyl)
-1H-indole-3-carboxamide;

(S) N-(1-amino-3-phenyl-1-oxopropan-2-yl)-1-(5-fluoropentyl)
-1H-indazole-3-carboxamide;

(T) methyl 2-(1-(cyclohexylmethyl)-1H-indole-3-carboxamido) -3,3-dimethylbutanoate;

(U) N-(1-amino-3,3-dimethyl-1-oxobutan-2-yl)-1(cyclohexylmethyl)-1
H-indazole-3-carboxamide (MAB-CHMINACA);

(V) N-(1-Amino-3,3-dimethyl-1-oxo-2-butanyl)-1-pentyl-1H-indazole-3-carboxamide
(ADB-PINACA);

(W) methyl (1-(4-fluorobenzyl)-1H-indazole-3-carbonyl)-L-valinate (FUB-AMB);

(X) N-[(1S)-2-amino-2-oxo-1-(phenylmethyl)ethyl]-1-(cyclohexylmethyl)-1H-Indazole-
3-carboxamide. (APP-CHMINACA);

(Y) quinolin-8-yl 1-(4-fluorobenzyl)-1H-indole-3-carboxylate (FUB-PB-22); and

(Z) methyl N-[1-(cyclohexylmethyl)-1H-indole-3-carbonyl]valinate (MMB-CHMICA).

(i) A controlled substance analog, to the extent that it is implicitly or explicitly intended
for human consumption.

Sec. 3.

Minnesota Statutes 2018, section 152.021, subdivision 1, is amended to read:


Subdivision 1.

Sale crimes.

A person is guilty of controlled substance crime in the first
degree if:

(1) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of 17 grams or more containing cocaine or methamphetamine;

(2) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of ten grams or more containing cocaine or methamphetamine
and:

(i) the person or an accomplice possesses on their person or within immediate reach, or
uses, whether by brandishing, displaying, threatening with, or otherwise employing, a
firearm; or

(ii) the offense involves two aggravating factors;

(3) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of ten grams or more containing heroin;

(4) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of 50 grams or more containing a narcotic drug other than
cocaine, heroin, or methamphetamine;new text begin or
new text end

(5) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of 50 grams or more containing amphetamine, phencyclidine,
or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 200 or
more dosage unitsdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (6) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of 25 kilograms or more containing marijuana or
Tetrahydrocannabinols.
deleted text end

Sec. 4.

Minnesota Statutes 2018, section 152.021, subdivision 2, is amended to read:


Subd. 2.

Possession crimes.

deleted text begin(a)deleted text end A person is guilty of a controlled substance crime in
the first degree if:

(1) the person unlawfully possesses one or more mixtures of a total weight of 50 grams
or more containing cocaine or methamphetamine;

(2) the person unlawfully possesses one or more mixtures of a total weight of 25 grams
or more containing cocaine or methamphetamine and:

(i) the person or an accomplice possesses on their person or within immediate reach, or
uses, whether by brandishing, displaying, threatening with, or otherwise employing, a
firearm; or

(ii) the offense involves two aggravating factors;

(3) the person unlawfully possesses one or more mixtures of a total weight of 25 grams
or more containing heroin;

(4) the person unlawfully possesses one or more mixtures of a total weight of 500 grams
or more containing a narcotic drug other than cocaine, heroin, or methamphetamine;new text begin or
new text end

(5) the person unlawfully possesses one or more mixtures of a total weight of 500 grams
or more containing amphetamine, phencyclidine, or hallucinogen or, if the controlled
substance is packaged in dosage units, equaling 500 or more dosage unitsdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (6) the person unlawfully possesses one or more mixtures of a total weight of 50
kilograms or more containing marijuana or Tetrahydrocannabinols, or possesses 500 or
more marijuana plants.
deleted text end

deleted text begin (b) For the purposes of this subdivision, the weight of fluid used in a water pipe may
not be considered in measuring the weight of a mixture except in cases where the mixture
contains four or more fluid ounces of fluid.
deleted text end

Sec. 5.

Minnesota Statutes 2018, section 152.022, subdivision 1, is amended to read:


Subdivision 1.

Sale crimes.

A person is guilty of controlled substance crime in the
second degree if:

(1) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of ten grams or more containing a narcotic drug other than
heroin;

(2) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of three grams or more containing cocaine or
methamphetamine and:

(i) the person or an accomplice possesses on their person or within immediate reach, or
uses, whether by brandishing, displaying, threatening with, or otherwise employing, a
firearm; or

(ii) the offense involves three aggravating factors;

(3) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of three grams or more containing heroin;

(4) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of ten grams or more containing amphetamine, phencyclidine,
or hallucinogen or, if the controlled substance is packaged in dosage units, equaling 50 or
more dosage units;

(5) deleted text beginon one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of ten kilograms or more containing marijuana or
Tetrahydrocannabinols;
deleted text end

deleted text begin (6)deleted text end the person unlawfully sells any amount of a Schedule I or II narcotic drug to a person
under the age of 18, or conspires with or employs a person under the age of 18 to unlawfully
sell the substance; or

deleted text begin (7)deleted text endnew text begin (6)new text end the person unlawfully sells any of the following in a school zone, a park zone, a
public housing zone, or a drug treatment facility:

(i) any amount of a Schedule I or II narcotic drug, lysergic acid diethylamide (LSD),
3,4-methylenedioxy amphetamine, or 3,4-methylenedioxymethamphetamine;new text begin or
new text end

(ii) one or more mixtures containing methamphetamine or amphetaminedeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (iii) one or more mixtures of a total weight of five kilograms or more containing marijuana
or Tetrahydrocannabinols.
deleted text end

Sec. 6.

Minnesota Statutes 2018, section 152.022, subdivision 2, is amended to read:


Subd. 2.

Possession crimes.

(a) A person is guilty of controlled substance crime in the
second degree if:

(1) the person unlawfully possesses one or more mixtures of a total weight of 25 grams
or more containing cocaine or methamphetamine;

(2) the person unlawfully possesses one or more mixtures of a total weight of ten grams
or more containing cocaine or methamphetamine and:

(i) the person or an accomplice possesses on their person or within immediate reach, or
uses, whether by brandishing, displaying, threatening with, or otherwise employing, a
firearm; or

(ii) the offense involves three aggravating factors;

(3) the person unlawfully possesses one or more mixtures of a total weight of six grams
or more containing heroin;

(4) the person unlawfully possesses one or more mixtures of a total weight of 50 grams
or more containing a narcotic drug other than cocaine, heroin, or methamphetamine;new text begin or
new text end

(5) the person unlawfully possesses one or more mixtures of a total weight of 50 grams
or more containing amphetamine, phencyclidine, or hallucinogen or, if the controlled
substance is packaged in dosage units, equaling 100 or more dosage unitsdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (6) the person unlawfully possesses one or more mixtures of a total weight of 25
kilograms or more containing marijuana or Tetrahydrocannabinols, or possesses 100 or
more marijuana plants.
deleted text end

(b) For the purposes of this subdivision, the weight of fluid used in a water pipe may
not be considered in measuring the weight of a mixture except in cases where the mixture
contains four or more fluid ounces of fluid.

Sec. 7.

Minnesota Statutes 2018, section 152.023, subdivision 1, is amended to read:


Subdivision 1.

Sale crimes.

A person is guilty of controlled substance crime in the third
degree if:

(1) the person unlawfully sells one or more mixtures containing a narcotic drug;

(2) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures containing phencyclidine or hallucinogen, it is packaged in dosage units,
and equals ten or more dosage units;

(3) the person unlawfully sells one or more mixtures containing a controlled substance
classified in Schedule I, II, or III, except a Schedule I or II narcotic drug, to a person under
the age of 18;new text begin or
new text end

(4) the person conspires with or employs a person under the age of 18 to unlawfully sell
one or more mixtures containing a controlled substance listed in Schedule I, II, or III, except
a Schedule I or II narcotic drugdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (5) on one or more occasions within a 90-day period the person unlawfully sells one or
more mixtures of a total weight of five kilograms or more containing marijuana or
Tetrahydrocannabinols.
deleted text end

Sec. 8.

Minnesota Statutes 2018, section 152.023, subdivision 2, is amended to read:


Subd. 2.

Possession crimes.

(a) A person is guilty of controlled substance crime in the
third degree if:

(1) on one or more occasions within a 90-day period the person unlawfully possesses
one or more mixtures of a total weight of ten grams or more containing a narcotic drug other
than heroin;

(2) on one or more occasions within a 90-day period the person unlawfully possesses
one or more mixtures of a total weight of three grams or more containing heroin;

(3) on one or more occasions within a 90-day period the person unlawfully possesses
one or more mixtures containing a narcotic drug, it is packaged in dosage units, and equals
50 or more dosage units;

(4) on one or more occasions within a 90-day period the person unlawfully possesses
any amount of a schedule I or II narcotic drug or five or more dosage units of lysergic acid
diethylamide (LSD), 3,4-methylenedioxy amphetamine, or
3,4-methylenedioxymethamphetamine in a school zone, a park zone, a public housing zone,
or a drug treatment facility;new text begin or
new text end

deleted text begin (5) on one or more occasions within a 90-day period the person unlawfully possesses
one or more mixtures of a total weight of ten kilograms or more containing marijuana or
Tetrahydrocannabinols; or
deleted text end

deleted text begin (6)deleted text end new text begin(5) new text endthe person unlawfully possesses one or more mixtures containing
methamphetamine or amphetamine in a school zone, a park zone, a public housing zone,
or a drug treatment facility.

(b) For the purposes of this subdivision, the weight of fluid used in a water pipe may
not be considered in measuring the weight of a mixture except in cases where the mixture
contains four or more fluid ounces of fluid.

Sec. 9.

Minnesota Statutes 2018, section 152.024, subdivision 1, is amended to read:


Subdivision 1.

Sale crimes.

A person is guilty of controlled substance crime in the fourth
degree if:

(1) the person unlawfully sells one or more mixtures containing a controlled substance
classified in Schedule I, II, or IIIdeleted text begin, except marijuana or Tetrahydrocannabinolsdeleted text end;

(2) the person unlawfully sells one or more mixtures containing a controlled substance
classified in Schedule IV or V to a person under the age of 18;new text begin or
new text end

(3) the person conspires with or employs a person under the age of 18 to unlawfully sell
a controlled substance classified in Schedule IV or Vdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (4) the person unlawfully sells any amount of marijuana or Tetrahydrocannabinols in a
school zone, a park zone, a public housing zone, or a drug treatment facility, except a small
amount for no remuneration.
deleted text end

Sec. 10.

Minnesota Statutes 2018, section 152.024, subdivision 2, is amended to read:


Subd. 2.

Possession crimes.

A person is guilty of controlled substance crime in the
fourth degree if:

(1) the person unlawfully possesses one or more mixtures containing phencyclidine or
hallucinogen, it is packaged in dosage units, and equals ten or more dosage units; or

(2) the person unlawfully possesses one or more mixtures containing a controlled
substance classified in Schedule I, II, or IIIdeleted text begin, except marijuana or Tetrahydrocannabinols,deleted text end
with the intent to sell it.

Sec. 11.

Minnesota Statutes 2018, section 152.025, subdivision 1, is amended to read:


Subdivision 1.

Sale crimes.

A person is guilty of a controlled substance crime in the
fifth degree and upon conviction may be sentenced as provided in subdivision 4 ifdeleted text begin:
deleted text end

deleted text begin (1) the person unlawfully sells one or more mixtures containing marijuana or
tetrahydrocannabinols, except a small amount of marijuana for no remuneration; or
deleted text end

deleted text begin (2)deleted text end the person unlawfully sells one or more mixtures containing a controlled substance
classified in Schedule IV.

Sec. 12.

Minnesota Statutes 2018, section 152.096, subdivision 1, is amended to read:


Subdivision 1.

Prohibited acts; penalties.

Any person who conspires to commit any
act prohibited by this chapterdeleted text begin, except possession or distribution for no remuneration of a
small amount of marijuana as defined in section 152.01, subdivision 16,
deleted text endis guilty of a felony
and upon conviction may be imprisoned, fined, or both, up to the maximum amount
authorized by law for the act the person conspired to commit.

Sec. 13.

new text begin [609A.05] EXPUNGEMENT OF CERTAIN MARIJUANA OFFENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin Notwithstanding any law to the contrary, a court shall issue
an order of expungement sealing all records relating to an arrest, indictment, information,
trial, or verdict for any person found guilty of an act committed before August 1, 2020, in
violation of a section or provision or a predecessor section or provision of chapter 152 that
is repealed by this act.
new text end

new text begin Subd. 2. new text end

new text begin Attorney general to identify eligible individuals. new text end

new text begin On or before January 15,
2020, the attorney general shall consult with the Bureau of Criminal Apprehension and the
judicial branch and identify past convictions that qualify for expungement pursuant to
subdivision 1. The attorney general shall notify the prosecutorial office that had jurisdiction
over the offense of all cases that qualify for expungement, and shall make a reasonable and
good faith effort to notify any individual whose offense qualifies for expungement.
new text end

new text begin Subd. 3. new text end

new text begin Prosecutorial rights and responsibilities. new text end

new text begin (a) Upon receipt of the notice
described in subdivision 2, the prosecutorial office that had jurisdiction over the offense
shall have 30 days to review the case to determine whether it meets the requirements of
subdivision 1, send notice of that decision to the court, and make a reasonable and good
faith effort to send notice of that decision to the individual whose offense was identified by
the attorney general.
new text end

new text begin (b) Notice sent under this section shall include the name of the individual who committed
the offense, the date of the offense, and the court case number.
new text end

new text begin Subd. 4. new text end

new text begin Hearing on petition to expunge. new text end

new text begin (a) An individual who received notice pursuant
to subdivision 3 stating that the offense committed by the individual is not eligible for
expungement, who received notice pursuant to subdivision 2 and did not receive notice
pursuant to subdivision 3 within 60 days, or who did not receive notice pursuant to this
section on or before March 1, 2020, may file a petition seeking expungement under this
section. The filing fee under section 357.021, subdivision 2, clause (1), shall be waived.
new text end

new text begin (b) The petition for expungement shall be signed under oath by the petitioner and shall
state the following:
new text end

new text begin (1) the petitioner's full name and all other legal names or aliases by which the petitioner
has been known at any time;
new text end

new text begin (2) the petitioner's date of birth; and
new text end

new text begin (3) the date of the offense and the court case number of the offense for which
expungement is sought.
new text end

new text begin (c) The petitioner shall serve by mail the petition for expungement on the prosecutorial
office that had jurisdiction over the offense for which expungement is sought.
new text end

new text begin (d) Unless the prosecutorial office that had jurisdiction over the offense notifies the court
that the offense is eligible for expungement, a hearing on the petition shall be held within
a reasonable time after service of the petition.
new text end

new text begin (e) At a hearing on a petition filed under this section, the court shall determine whether
the offense meets the requirements of subdivision 1.
new text end

new text begin (f) Nothing in this section prevents an individual from filing a petition for expungement
pursuant to any other law.
new text end

new text begin Subd. 5. new text end

new text begin Order of expungement. new text end

new text begin (a) Upon receiving notice that an offense qualifies
for expungement from the prosecutorial office that had jurisdiction over the offense, or after
determining that an offense qualifies for expungement following a hearing, the court shall
issue an order sealing all records relating to an arrest, indictment, information, trial, or
verdict.
new text end

new text begin (b) The court administrator shall send a copy of an expungement order to each agency
and jurisdiction whose records are affected by the terms of the order and send a letter to the
person whose offense has been expunged identifying each agency that received the order.
new text end

new text begin (c) Data on the person whose offense has been expunged in a letter sent under this
subdivision are private data on individuals as defined in section 13.02.
new text end

new text begin (d) The effect of an order for expungement under this section is to restore the person,
in the contemplation of the law, to the status the person occupied before the arrest, indictment,
information, trial, or verdict. The person shall not be held guilty of perjury or otherwise of
giving a false statement if the person fails to acknowledge the arrest, indictment, information,
trial, or verdict in response to an inquiry made for any purpose.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 152.01, subdivision 16; and 152.027, subdivisions 3
and 4,
new text end new text begin are repealed.
new text end

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective January 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-3985

144.414 PROHIBITIONS.

Subd. 5.

Electronic cigarettes.

(a) The use of electronic cigarettes, including the inhaling or exhaling of vapor from any electronic delivery device, as defined in section 609.685, subdivision 1, is prohibited in the following locations:

(1) any building owned or operated by the state, home rule charter or statutory city, county, township, school district, or other political subdivision;

(2) any facility owned by Minnesota State Colleges and Universities and the University of Minnesota;

(3) any facility licensed by the commissioner of human services; or

(4) any facility licensed by the commissioner of health, but only if the facility is also subject to federal licensing requirements.

(b) Nothing in this subdivision shall prohibit political subdivisions or businesses from adopting more stringent prohibitions on the use of electronic cigarettes or electronic delivery devices.

152.01 DEFINITIONS.

Subd. 16.

Small amount.

"Small amount" as applied to marijuana means 42.5 grams or less. This provision shall not apply to the resinous form of marijuana. The weight of fluid used in a water pipe may not be considered in determining a small amount except in cases where the marijuana is mixed with four or more fluid ounces of fluid.

152.027 OTHER CONTROLLED SUBSTANCE OFFENSES.

Subd. 3.

Possession of marijuana in a motor vehicle.

A person is guilty of a misdemeanor if the person is the owner of a private motor vehicle, or is the driver of the motor vehicle if the owner is not present, and possesses on the person, or knowingly keeps or allows to be kept within the area of the vehicle normally occupied by the driver or passengers, more than 1.4 grams of marijuana. This area of the vehicle does not include the trunk of the motor vehicle if the vehicle is equipped with a trunk, or another area of the vehicle not normally occupied by the driver or passengers if the vehicle is not equipped with a trunk. A utility or glove compartment is deemed to be within the area occupied by the driver and passengers.

Subd. 4.

Possession or sale of small amounts of marijuana.

(a) A person who unlawfully sells a small amount of marijuana for no remuneration, or who unlawfully possesses a small amount of marijuana is guilty of a petty misdemeanor and shall be required to participate in a drug education program unless the court enters a written finding that a drug education program is inappropriate. The program must be approved by an area mental health board with a curriculum approved by the state alcohol and drug abuse authority.

(b) A person convicted of an unlawful sale under paragraph (a) who is subsequently convicted of an unlawful sale under paragraph (a) within two years is guilty of a misdemeanor and shall be required to participate in a chemical dependency evaluation and treatment if so indicated by the evaluation.

(c) A person who is convicted of a petty misdemeanor under paragraph (a) who willfully and intentionally fails to comply with the sentence imposed, is guilty of a misdemeanor. Compliance with the terms of the sentence imposed before conviction under this paragraph is an absolute defense.