MN Legislature

Accessibility menu

Bills use visual text formatting such as stricken text to denote deleted language, and underlined text to denote new language. For users of the jaws screenreader it is recommended to configure jaws to use the proofreading scheme which will alter the pitch of the reading voice when reading stricken and underlined text. Instructions for configuring your jaws reader are provided by following this link.
If you can not or do not wish to configure your screen reader, deleted language will begin with the phrase "deleted text begin" and be followed by the phrase "deleted text end", new language will begin with the phrase "new text begin" and be followed by "new text end". Skip to text of HF 2714.

Menu

Revisor of Statutes Menu

HF 2714

as introduced - 90th Legislature (2017 - 2018) Posted on 06/21/2017 11:01am

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

Pdf

Rtf

Version List Authors and Status

A bill for an act
relating to cannabis; proposing an amendment to the Minnesota Constitution by
adding a section to article XIII; 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; amending Minnesota Statutes
2016, sections 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; 297A.61, subdivisions 3, 4,
by adding subdivisions; 297A.62, subdivision 1, by adding a subdivision; 297A.94;
297A.99, subdivision 1; 297D.06; proposing coding for new law in Minnesota
Statutes, chapters 295; 297A; proposing coding for new law as Minnesota Statutes,
chapter 340B; repealing Minnesota Statutes 2016, sections 152.01, subdivision
16; 152.027, subdivisions 3, 4.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.

An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, a section shall be added to article XIII, to read:

Sec. 13.

(a) It is not unlawful and it shall not be an offense under law or be a basis for
seizure or forfeiture of assets under law for a person who is 21 years of age or older to:

(1) possess, use, purchase, or transport cannabis, cannabis accessories, or cannabis-infused
products;

(2) possess, grow, process, or transport for personal use no more than 12 cannabis plants,
with six or fewer being mature, flowering cannabis plants, provided that the cannabis
produced from the plant is not made available for sale;

(3) consume cannabis, provided that the cannabis is not consumed openly in public
except in a manner as provided by law; and

(4) transfer an amount of cannabis as prescribed by law without remuneration to a person
who is 21 years of age or older.

(b) The legislature shall prescribe by law a manner to license and regulate the cultivation,
manufacturing, harvesting, processing, packaging, transporting, displaying, possessing, and
selling of cannabis and cannabis-infused products for commercial purposes.

(c) It is unlawful to cultivate, manufacture, harvest, process, package, transport, display,
possess, or sell cannabis or cannabis-infused products for commercial purposes without
having first obtained a valid license as prescribed by law.

(d) It is unlawful to sell or transfer cannabis, a cannabis-infused product, or a cannabis
accessory to any person who is under the age of 21 years, except that medical cannabis may
be sold or transferred to a person under the age of 21, as prescribed by law.

Sec. 2. SUBMISSION TO VOTERS.

(a) The proposed amendment must be submitted to the people at the 2018 general election.
The question submitted must be:

"Shall the Minnesota Constitution be amended to allow a person who is 21 years of age
or older to personally possess, use, and grow cannabis and to possess cannabis-infused
products, and to require the legislature to prescribe by law a manner to license and regulate
the commercial sale of cannabis and cannabis-infused products?

(b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (a) shall be: "Personal Use and Regulation
of Cannabis."

Yes .
No .
"

ARTICLE 2

MINNESOTA CANNABIS ACT

Section 1.

[340B.01] DEFINITIONS; MINNESOTA CANNABIS ACT.

Subdivision 1.

Scope.

The terms defined in this section apply to this chapter.

Subd. 2.

Bureau.

"Bureau" means the Bureau of Cannabis Oversight.

Subd. 3.

Cannabinoid profile.

"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.

Subd. 4.

Cannabis.

"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.

Subd. 5.

Cannabis accessories.

"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.

Subd. 6.

Cannabis establishment.

"Cannabis establishment" means a cannabis producer,
a cannabis testing facility, a cannabis processor, or a retail cannabis store.

Subd. 7.

Cannabis-infused products.

"Cannabis-infused products" means a product or
products that contain cannabis or cannabis extracts and are intended for human use, including
but not limited to edible products or ointments and tinctures. Cannabis-infused products
does not include usable cannabis.

Subd. 8.

Cannabis processor.

"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.

Subd. 9.

Cannabis producer.

"Cannabis producer" means a person who produces and
sells cannabis at wholesale to cannabis processors and other cannabis producers, but not to
consumers.

Subd. 10.

Cannabis testing facility.

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

Subd. 11.

Commissioner.

"Commissioner" means the commissioner of the Bureau of
Cannabis Oversight.

Subd. 12.

Consumer.

"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.

Subd. 13.

Local government.

"Local government" means a home rule charter or statutory
city or town.

Subd. 14.

Lot.

"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.

Subd. 15.

Lot number.

"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.

Subd. 16.

Medical cannabis manufacturer.

"Medical cannabis manufacturer" has the
meaning given in section 152.22, subdivision 7.

Subd. 17.

Premises.

"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.

Subd. 18.

Retail cannabis store.

"Retail cannabis store" means a person licensed to:

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

(2) sell cannabis seeds, usable cannabis, and cannabis-infused products to consumers.

Subd. 19.

Unreasonably impracticable.

"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.

Subd. 20.

Usable cannabis.

"Usable cannabis" means dried cannabis flowers. Usable
cannabis does not include cannabis-infused products.

Sec. 2.

[340B.02] BUREAU OF CANNABIS OVERSIGHT.

Subdivision 1.

Creation.

The Bureau of Cannabis Oversight is established under the
supervision and control of a commissioner. The commissioner shall be appointed by the
governor under section 15.06.

Subd. 2.

Duties.

The bureau, through its commissioner or the commissioner's designee,
shall:

(1) grant or deny state licenses for cannabis establishments;

(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; and

(3) impose any penalty authorized by this chapter or rules adopted under the authority
of this chapter.

Subd. 3.

Interagency agreements.

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.

Subd. 4.

Conflicts of interest.

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

Sec. 3.

[340B.03] ADMINISTRATION AND ENFORCEMENT; RULEMAKING.

Subdivision 1.

Rulemaking.

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 adopted
rules, subject to the provisions of this chapter, shall provide:

(1) procedures for the issuance, renewal, suspension, and revocation of a license to
operate a cannabis establishment;

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

(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 towards persons under the age of 21 years;

(4) labeling requirements for cannabis seeds, usable cannabis, and cannabis-infused
products;

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

(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;

(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;

(8) a standardized cannabis serving size amount for edible cannabis-infused products;

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

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

(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;

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

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

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

Subd. 2.

Enforcement.

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

Subd. 3.

Commissioner's discretion.

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:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

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

Subd. 4.

Civil actions.

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.

Subd. 5.

Injunction.

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

Subd. 6.

Criminal actions.

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.

Sec. 4.

[340B.04] GENERAL PROVISIONS.

Subdivision 1.

Scope.

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.

Subd. 2.

Rights of employers.

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.

Subd. 3.

Rights of employees and prospective employees.

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.

Subd. 4.

Rights of property owners.

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.

Subd. 5.

Rights of residential tenants.

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.

Subd. 6.

Report.

By February 1 of each year, the commissioner shall submit a report to
the legislative committees with jurisdiction over cannabis, public safety, and taxes on the
following:

(1) the progress the bureau is making on processing licenses;

(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;

(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;

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

(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.

Sec. 5.

[340B.05] SEIZURE AND CONFISCATION.

(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.

(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.

(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.

(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.

Sec. 6.

[340B.06] CANNABIS ESTABLISHMENTS; LICENSE.

Subdivision 1.

License required.

(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.

(b) Every cannabis establishment license shall:

(1) be issued in the name of the applicant;

(2) specify the location of the cannabis establishment; and

(3) be used only by the holder of the license;

Subd. 2.

Eligibility.

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

(1) who has been a resident of this state continuously for at least 90 days prior to the
person's date of license application;

(2) who is 21 years of age or older;

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

(4) who has paid any fee associated with the license application; and

(5) who has provided a surety bond or proof of liquid assets, and is not delinquent on
any local, state, or federal tax.

(b) Paragraph (a) applies to all officers, directors, agents, and stockholders holding five
percent or more of the stock of any corporation applying for a license under this chapter.

Subd. 3.

Application; fee.

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 application fee shall be retained
by the commissioner to cover the administrative costs related to reviewing the application.

Subd. 4.

Bond.

(a) The commissioner may not issue a license under this chapter to a
person who has not filed a bond with corporate surety, or cash, or United States government
bonds payable to the state. The proof of financial responsibility must be approved by the
commissioner before the license is issued. The bond must be conditioned on the licensee
obeying all laws governing the cannabis establishment and paying all taxes, fees, penalties,
and other charges when due. The bond must provide that the bond is forfeited to the state
on a violation of law. The amount of each cannabis establishment bond shall not be less
than $10,000. The commissioner shall base the bond amount on the applicant or licensee's
financial statement or any other factor the commissioner determines is relevant to protect
the public's interest.

(b) This subdivision does not apply to cannabis testing facilities.

Subd. 5.

Period of license.

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.

Subd. 6.

Annual fees.

(a) The annual fees for licenses under this chapter are as follows:

(1) for a cannabis producer, $.....;

(2) for a cannabis processor, $.....;

(3) for a retail cannabis store, $.....; and

(4) for a cannabis testing facility, $......

(b) The commissioner may annually adjust the fee amount in paragraph (a) in order to
cover the cost of administering the licensing program.

Subd. 7.

Separate license required; limitations.

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.

Subd. 8.

Application process.

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

(b) The commissioner shall begin accepting applications on October 1, 2019.

(c) The commissioner shall issue an annual license to the applicant within 90 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.

Subd. 9.

Inspection of premises.

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.

Sec. 7.

[340B.07] RETAIL CANNABIS STORE; REQUIREMENTS.

Subdivision 1.

License.

The commissioner may 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. A person may not operate a retail cannabis
store without a license issued by the commissioner under the authority of this chapter.

Subd. 2.

Cannabis and cannabis-infused products; source and transactions.

A retail
cannabis store may 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.

Subd. 3.

Usable cannabis and cannabis-infused product tracking.

A retail cannabis
store shall track all of its usable cannabis and cannabis-infused products from the point of
transfer from a cannabis processor to the point of sale.

Subd. 4.

Allowed sale.

A retail cannabis store may 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.

Subd. 5.

Identification verification.

Prior to 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 shall not be grounds for the revocation or suspension
of any license issued under this chapter.

Subd. 6.

Packaging; labels.

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.

Subd. 7.

Allowable sales.

A retail cannabis store shall not sell products or services other
than cannabis seeds, usable cannabis, cannabis-infused products, and cannabis accessories.

Subd. 8.

Cannabis consumption on premises.

No retail cannabis store or employee of
a retail cannabis store shall consume, or allow to be consumed, any useable cannabis or
cannabis-infused product on the retail cannabis store's licensed premises.

Subd. 9.

Employee training.

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

(1) the proper handling of usable cannabis and cannabis-infused products;

(2) security protocol for cannabis retail stores;

(3) inventory accountability procedures; and

(4) procedures for verifying the age of consumers in order to prevents sales to persons
under 21 years of age.

Sec. 8.

[340B.08] INDIVIDUAL PRIVACY OF CONSUMERS AT RETAIL
CANNABIS STORES.

In order to ensure that individual privacy is protected:

(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

(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.

Sec. 9.

[340B.09] CANNABIS PRODUCER; REQUIREMENTS

Subdivision 1.

License.

The commissioner may only issue a cannabis producer license
to a person who produces cannabis for sale at wholesale to cannabis processors and other
cannabis producers. A person may not operate as a cannabis producer without a license
issued by the commissioner under the authority of this chapter.

Subd. 2.

Tracking of cannabis.

A cannabis producer shall track the cannabis that is
cultivated from seed or immature plant to wholesale purchase.

Subd. 3.

Authorized sales.

A cannabis producer shall only sell cannabis at wholesale
to cannabis processors or other cannabis producers.

Sec. 10.

[340B.10] CANNABIS PROCESSOR; REQUIREMENTS.

Subdivision 1.

License.

The commissioner may 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 cannabis retail stores. A person may 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.

Subd. 2.

Cannabis production; tracking.

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

Subd. 3.

Limitations.

(a) A cannabis processor shall not:

(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

(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.

(b) Usable cannabis or cannabis-infused products shall not be consumed on the premises
of a cannabis processor during the hours of business operations.

Subd. 4.

Processed on licensed premises.

(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.

(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.

Subd. 5.

Labeling; packaging.

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

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

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

Sec. 11.

[340B.11] CANNABIS TESTING FACILITIES.

Subdivision 1.

License.

The commissioner may 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 producer, cannabis processor, or cannabis retail store without a
license issued by the commissioner under the authority of this chapter.

Subd. 2.

Rules.

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.

Subd. 3.

Conflicts of interest.

A person who has an interest in a cannabis testing facility
shall not have any interest in a cannabis producer, cannabis processor, or cannabis retail
store.

Sec. 12.

[340B.12] CANNABIS TESTING.

(a) On a schedule determined by the commissioner by rule, every cannabis producer
and cannabis processor shall submit representative samples of cannabis, usable cannabis,
or cannabis-infused products produced or processed by the cannabis producer 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.

(b) Cannabis producers 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.

(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.

(d) A cannabis producer 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.

Sec. 13.

[340B.13] SEED-TO-SALE TRACKING SYSTEM.

The commissioner shall develop and maintain a seed-to-sale tracking system that tracks
cannabis produced by a cannabis producer 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.

Sec. 14.

[340B.14] RECORDS; AUDITS.

(a) Each cannabis establishment shall 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.

(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.

(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.

Sec. 15.

[340B.15] LABELING REQUIREMENTS.

A cannabis processor shall affix a label to all usable cannabis and cannabis-infused
products that the cannabis processor sells to retail cannabis stores. The label shall:

(1) include the lot number of the useable cannabis or cannabis-infused product;

(2) specify the cannabinoid profile of the usable cannabis or cannabis-infused product;

(3) include the license number of the cannabis producer that grew or produced the
cannabis;

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

(5) a statement that cannabis may not be legally consumed by persons under the age of
21;

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

(7) include a list of ingredients for cannabis-infused products; and

(8) include a universal symbol indicating the package contains cannabis.

Sec. 16.

[340B.16] LOCAL GOVERNMENT REGULATIONS.

Subdivision 1.

Cannabis lounges.

(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.

(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.

(c) A cannabis lounge is subject to the following limitations:

(1) all employees of a cannabis lounge must be 21 years of age or older;

(2) the sale or service of alcohol or food for consumption on the premises of a cannabis
lounge, excluding nonalcoholic beverages or light snacks without cannabis ingredients, is
prohibited;

(3) a cannabis lounge owner shall not sell cannabis, usable cannabis, or cannabis-infused
products on the premises of a cannabis lounge; and

(4) a cannabis lounge owner shall not allow the sale or exchange of cannabis, usable
cannabis, or cannabis-infused products on the premises of a cannabis lounge.

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

Subd. 2.

Local regulations.

(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.

(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.

Subd. 3.

Open and public use.

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.

Subd. 4.

Cultivation for personal use.

A local government shall not enact or enforce
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.

Sec. 17.

[340B.17] ADMINISTRATIVE ACTIONS.

Subdivision 1.

Administrative remedies.

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.

Subd. 2.

Revocation and suspension.

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.

Subd. 3.

Cancellation of license.

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.

Subd. 4.

Service of order or notice.

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.

Sec. 18.

[340B.18] CIVIL PENALTIES.

Subdivision 1.

General penalty.

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 $7,500 per day of the violation as
determined by the court.

Subd. 2.

Recovery of penalties by civil action.

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.

Sec. 19.

[340B.19] APPEALS OF COMMISSIONER'S ORDER.

Subdivision 1.

Notice of appeal.

(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.

(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.

Subd. 2.

Administrative review.

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.

Subd. 3.

Judicial review.

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

Sec. 20.

[340B.20] PERSONAL POSSESSION.

(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:

(1) to possess, use, display, or transport cannabis, cannabis seeds, usable cannabis, or
cannabis-infused products;

(2) to possess, display, or transport cannabis accessories;

(3) to purchase cannabis seeds, usable cannabis, or cannabis-infused products from a
retail cannabis store;

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

(5) to transfer one ounce or less of usable cannabis without remuneration to a person
who is 21 years of age or older;

(6) 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

(7) to assist another person who is 21 years of age or older in any of the acts described
under clauses (1) to (6).

(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.

Sec. 21.

[340B.21] UNLAWFUL ACTS.

Subdivision 1.

Unlawful sales and possession; level I.

It is unlawful to sell or possess
one or more mixtures of a total weight of 25 kilograms or more containing cannabis or
tetrahydrocannabinols, including cannabis-infused products with an equivalent amount of
cannabis, or 500 or more cannabis plants, except as allowed by this chapter.

Subd. 2.

Penalty; level I.

A person convicted under subdivision 1 may be sentenced to
imprisonment for not more than three years or to payment of a fine of not more than
$1,000,000, or both.

Subd. 3.

Unlawful sales and possession; level II.

It is unlawful to sell or possess 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 250 or more cannabis plants, except as allowed by this chapter.

Subd. 4.

Penalty; level II.

A person convicted under subdivision 3 may be sentenced
to imprisonment for not more than two years or to payment of a fine of not more than
$500,000, or both.

Subd. 5.

Unlawful sales and possession; level III.

It is unlawful to sell or possess 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 100 or more cannabis plants, except as allowed by this chapter.

Subd. 6.

Penalty; level III.

A person convicted under subdivision 5 may be sentenced
to imprisonment for not more than one year or to payment of a fine of not more than
$100,000, or both.

Subd. 7.

Other violations.

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.

Sec. 22.

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

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.

Sec. 23.

[340B.23] PERSONS UNDER 21; ILLEGAL ACTS.

Subdivision 1.

Consumption.

It is unlawful for any person under the age of 21 to
consume in any manner cannabis, usable cannabis, or a cannabis-infused product.

Subd. 2.

Purchasing.

It is unlawful for any person:

(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;

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

(3) to induce a person under 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.

Subd. 3.

Possession.

It is unlawful for a person under the age of 21 to possess cannabis,
cannabis seeds, usable cannabis, or cannabis-infused products.

Subd. 4.

Entering licensed premises.

It is unlawful for a person under the age of 21 to
enter a cannabis establishment.

Subd. 5.

Misrepresentation of age.

It is unlawful 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.

Subd. 6.

Proof of age defense; seizure of false identification

(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.

(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 giving the cannabis, cannabis seeds, usable cannabis, or cannabis-infused
product.

(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.

Subd. 7.

Misdemeanor.

A violation of this section is a misdemeanor.

Sec. 24.

[340B.24] CONSUMPTION IN PUBLIC.

(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.

(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.

Sec. 25.

[340B.25] CANNABIS FUND.

Subdivision 1.

Creation of fund.

There is created in the state treasury a cannabis fund
as a special revenue fund for deposit of revenue from the following:

(1) all revenues from the gross revenues cannabis tax collected under section 295.65;

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

(3) all fees and penalties collected under this chapter.

Subd. 2.

Cannabis fund money; use.

(a) The commissioner of management and budget
shall annually appropriate from the cannabis fund to the commissioner an amount necessary
to administer this chapter.

(b) Of the funds remaining in the cannabis fund after the appropriation required in
paragraph (a), the remaining amount shall be appropriated annually as follows:

(1) 40 percent shall be annually appropriated to the commissioner of human services
for mental health services under chapter 245;

(2) 40 percent shall be annually appropriated to the commissioner of education for
additional funding for early childhood education and kindergarten through grade 12; and

(3) 20 percent shall be annually appropriated to the commissioner of health for the
creation, implementation, operation, and management of a cannabis education and public
health program that contains the following:

(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 cannabis use;

(ii) a grant program for local health departments or other local community agencies that
supports development and implementation of coordinated intervention strategies for the
prevention and reduction of cannabis use by youth; and

(iii) media-based education campaigns across television, Internet, radio, print, and
out-of-home advertising, separately targeting youth and adults, that provides medically and
scientifically accurate information about the health and safety risks posed by cannabis use.

Sec. 26.

[340B.26] MEDICAL CANNABIS PROVISIONS UNAFFECTED.

Nothing in this chapter shall be construed:

(1) to limit any privileges or rights in sections 152.22 to 152.37 of a medical cannabis
patient; designated caregiver, parent, or legal guardian under section 152.27, subdivision 4
or 5; or medical cannabis manufacturer;

(2) to permit a medical cannabis distribution facility to distribute cannabis to a person
who is not a medical cannabis patient enrolled in the registry established according to
sections 152.22 to 152.37;

(3) to permit a medical cannabis distribution facility to purchase cannabis or
cannabis-infused products in a manner or from a source not authorized under sections 152.22
to 152.37;

(4) to permit a medical cannabis distribution facility to operate on the same premises as
a retail cannabis store; or

(5) to discharge the commissioner of health from the commissioner's duties to regulate
medical cannabis under sections 152.22 to 152.37.

Sec. 27. EFFECTIVE DATE.

This article is effective January 1, 2019, if the constitutional amendment proposed in
article 1, section 1, is adopted by the voters.

ARTICLE 3

CANNABIS TAXATION

Section 1.

[295.65] GROSS REVENUES CANNABIS TAX.

Subdivision 1.

Definitions.

For purposes of this section, the following terms have the
meanings given:

(1) "cannabis" has the meaning given in section 340B.01, subdivision 3;

(2) "cannabis-infused products" has the meaning given in section 340B.01, subdivision
6;

(3) "cannabis processor" has the meaning given in section 340B.01, subdivision 7.

(4) "commissioner" means the commissioner of revenue;

(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;

(6) "retail cannabis store" has the meaning given in section 340B.01, subdivision 14;
and

(7) "usable cannabis" has the meaning given in section 340B.01, subdivision 17.

Subd. 2.

Cannabis tax.

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

Subd. 3.

Estimated tax.

(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.

(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.

Subd. 4.

Electronic payments.

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.

Subd. 5.

Annual return.

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

Subd. 6.

Administration.

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.

Subd. 7.

Interest on overpayments.

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.

Subd. 8.

Deposit of revenues.

The commissioner shall deposit all revenues, including
penalties and interest, derived from the tax imposed by this section in the cannabis fund
under section 340B.25.

Sec. 2.

Minnesota Statutes 2016, 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;

(4) dietary supplements; and

(5) all food sold through vending machines.

(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, or athletic
events, or cannabis lounges as defined in section 340B.16 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.

Sec. 3.

Minnesota Statutes 2016, 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.

(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.

Sec. 4.

Minnesota Statutes 2016, section 297A.61, is amended by adding a subdivision to
read:


Subd. 58.

Cannabis.

"Cannabis" has the meaning given in section 340B.01, subdivision
4.

Sec. 5.

Minnesota Statutes 2016, section 297A.61, is amended by adding a subdivision to
read:


Subd. 59.

Cannabis accessories.

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

Sec. 6.

Minnesota Statutes 2016, section 297A.61, is amended by adding a subdivision to
read:


Subd. 60.

Cannabis-infused products.

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

Sec. 7.

Minnesota Statutes 2016, section 297A.61, is amended by adding a subdivision to
read:


Subd. 61.

Usable cannabis.

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

Sec. 8.

Minnesota Statutes 2016, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

Generally.

Except as otherwise provided in subdivision 3 or 3a 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. 9.

Minnesota Statutes 2016, section 297A.62, is amended by adding a subdivision to
read:


Subd. 3a.

Cannabis rate.

A sales tax of 12 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.

Sec. 10.

Minnesota Statutes 2016, 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) 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.

(e) 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.

(f) The revenue dedicated under paragraph (e) 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 (e) 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 (e) must be allocated for field operations.

(g) 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 fund under section 340B.25.

(g) (h) The revenues deposited under paragraphs (a) to (f) (g) 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. 11.

Minnesota Statutes 2016, 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) under section
297A.9935, (4)
if permitted by special law, or (4) (5) 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. 12.

[297A.9935] LOCAL CANNABIS TAX.

Subdivision 1.

Authorization.

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 electors 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.

Subd. 2.

Joint powers agreement.

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.

Subd. 3.

Collection.

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.

Sec. 13.

Minnesota Statutes 2016, section 297D.06, is amended to read:


297D.06 PHARMACEUTICALS EXCEPTION FOR LAWFUL POSSESSION.

Nothing in this chapter requires The following persons are not required to pay the tax
under this chapter:

(1) persons registered under chapter 151 or lawfully in possession of cannabis or a
controlled substance;

(2) persons lawfully in possession of medical cannabis obtained according to sections
152.22 to 152.37;

(3) persons licensed to grow, process, and sell cannabis, usable cannabis, and
cannabis-infused products under chapter 340B;

(4) persons who have lawfully purchased usable cannabis or cannabis-infused products
from a retail cannabis store licensed under chapter 340B; and

(5) persons who are otherwise lawfully in possession of marijuana cannabis or a controlled
substance to pay the tax required under this chapter.

Sec. 14. EFFECTIVE DATE.

This article is effective for sales and purchases made after January 1, 2019, if the
constitutional amendment proposed in article 1, section 1, is adopted by the voters.

ARTICLE 4

CONTROLLED SUBSTANCE ACT CONFORMING CHANGES

Section 1.

Minnesota Statutes 2016, 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 C, except marijuana
and Tetrahydrocannabinols
.

Sec. 2.

Minnesota Statutes 2016, 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).

(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;

(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-propyltryptamine (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); and

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

(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); and

(35) 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) Marijuana, tetrahydrocannabinols, and Synthetic cannabinoids. Unless specifically
excepted or unless listed in another schedule, any natural or 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) marijuana;

(2) tetrahydrocannabinols naturally contained in a plant of the genus Cannabis, 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;

(3) (2) 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 allkyl, 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); and

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

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

Sec. 3.

Minnesota Statutes 2016, 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; or

(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 units; or .

(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.

Sec. 4.

Minnesota Statutes 2016, section 152.021, subdivision 2, is amended to read:


Subd. 2.

Possession crimes.

(a) 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; or

(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 units; or .

(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.

(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. 5.

Minnesota Statutes 2016, 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) on 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;

(6) 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

(7) (6) 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; or

(ii) one or more mixtures containing methamphetamine or amphetamine; or .

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

Sec. 6.

Minnesota Statutes 2016, 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; or

(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 units; or .

(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.

(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 2016, 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; or

(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 drug; or .

(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.

Sec. 8.

Minnesota Statutes 2016, 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; or

(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

(6) (5) the 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 2016, 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 III, except marijuana or Tetrahydrocannabinols;

(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; or

(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 V; or .

(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.

Sec. 10.

Minnesota Statutes 2016, 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 III, except marijuana or Tetrahydrocannabinols,
with the intent to sell it.

Sec. 11.

Minnesota Statutes 2016, 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 if:

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

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

Sec. 12.

Minnesota Statutes 2016, 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 chapter, except possession or distribution for no remuneration of a
small amount of marijuana as defined in section 152.01, subdivision 16,
is 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. REPEALER.

Minnesota Statutes 2016, sections 152.01, subdivision 16; and 152.027, subdivisions 3
and 4,
are repealed.

Sec. 14. EFFECTIVE DATE.

This article is effective January 1, 2019, if the constitutional amendment proposed in
article 1, section 1, is adopted by the voters.

APPENDIX

Repealed Minnesota Statutes: 17-1493

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.

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15
1.16 1.17
1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16
2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28
2.29 2.30
2.31 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2
5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20
5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13
7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20
8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 9.1 9.2 9.3
9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2 11.3
11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11
12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20
12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29
13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11
14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25
14.26 14.27 14.28 14.29 14.30 14.31 14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16
15.17 15.18 15.19 15.20 15.21 15.22 15.23
15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14
16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4
18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18
18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26
18.27 18.28 18.29 18.30 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9
19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32
20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25
20.26 20.27 20.28 20.29 20.30
21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4
22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14
22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12
23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27
23.28 23.29 23.30
24.1 24.2
24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10
25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2
29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26
31.27 31.28 31.29 31.30
32.1 32.2 32.3 32.4
32.5 32.6 32.7 32.8
32.9 32.10 32.11 32.12
32.13 32.14 32.15 32.16 32.17 32.18
32.19 32.20 32.21 32.22 32.23
32.24 32.25 32.26 32.27 32.28 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22
34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14
35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30
36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14
36.15 36.16 36.17
36.18 36.19
36.20 36.21 36.22 36.23
36.24 36.25 36.26 36.27 36.28 36.29 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12
49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 50.1 50.2 50.3 50.4 50.5
50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29
51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32
52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24
52.25 52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9
53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 54.1 54.2 54.3
54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15
54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23
54.24 54.25 54.26 54.27 54.28 54.29 54.30
55.1 55.2 55.3 55.4 55.5 55.6
55.7 55.8 55.9
55.10 55.11 55.12

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569