HF 4541

as introduced - 90th Legislature (2017 - 2018) Posted on 05/21/2018 01:53am

A bill for an act
relating to marijuana; allowing individuals 21 years of age or older to consume
and possess marijuana and marijuana products; providing regulation of marijuana
for commercial purposes; authorizing rulemaking; taxing certain marijuana sales;
amending Minnesota Statutes 2016, sections 144.413, subdivision 4, by adding
subdivisions; 144.4165; 152.01, by adding subdivisions; 152.027, subdivisions 3,
4, by adding a subdivision; 152.092; 152.093; 297A.61, subdivision 4, by adding
subdivisions; 297A.62, subdivision 1, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 152; proposing coding for new law as
Minnesota Statutes, chapter 340B; repealing Minnesota Statutes 2016, section
144.414, subdivision 5.

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

ARTICLE 1

REGULATION OF THE PRODUCTION, SALE, AND USE OF MARIJUANA

Section 1.

new text begin [340B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a person 21 years of age or older who purchases
or receives marijuana, marijuana products, or marijuana accessories for personal use by
persons 21 years of age or older, but not for resale to others.
new text end

new text begin Subd. 3. new text end

new text begin Local government. new text end

new text begin "Local government" means a town operating under chapter
368, a county, or a statutory or home rule charter city. A governing body for a town under
this chapter means a town board of supervisors.
new text end

new text begin Subd. 4. new text end

new text begin Marijuana. new text end

new text begin "Marijuana" means all parts of the plant of any species of the genus
Cannabis, including all agronomical varieties, 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, its seeds, or its resin. Marijuana 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; any other compound,
manufacture, salt, derivative, mixture, or preparation from mature stalks, except resin
extracted therefrom, fiber, oil, or cake; or the sterilized seed of the plant which is incapable
of germination.
new text end

new text begin Subd. 5. new text end

new text begin Marijuana accessory. new text end

new text begin "Marijuana accessory" means any equipment, product,
or material of any kind that is 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 holding marijuana, or for ingesting, inhaling, or otherwise introducing
marijuana into the human body.
new text end

new text begin Subd. 6. new text end

new text begin Marijuana concentrate. new text end

new text begin "Marijuana concentrate" means a product that consists
wholly or in part of the resin extracted from any part of the marijuana plant and that has a
THC concentration of greater than ten percent.
new text end

new text begin Subd. 7. new text end

new text begin Marijuana cultivation facility. new text end

new text begin "Marijuana cultivation facility" means an entity
licensed to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana
stores, marijuana product manufacturing facilities, and other marijuana cultivation facilities,
but not to consumers.
new text end

new text begin Subd. 8. new text end

new text begin Marijuana establishment. new text end

new text begin "Marijuana establishment" means a marijuana
cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility,
or a retail marijuana store.
new text end

new text begin Subd. 9. new text end

new text begin Marijuana product manufacturing facility. new text end

new text begin "Marijuana product manufacturing
facility" means an entity licensed to purchase marijuana; manufacture, prepare, and package
marijuana products; and sell marijuana and marijuana products to other marijuana product
manufacturing facilities and to retail marijuana stores, but not to consumers.
new text end

new text begin Subd. 10. new text end

new text begin Marijuana product. new text end

new text begin "Marijuana product" means (1) marijuana concentrates;
or (2) a product that is comprised of marijuana and other ingredients, has a THC concentration
no greater than ten percent, and is intended for human use or consumption including but
not limited to edible products, ointments, and tinctures.
new text end

new text begin Subd. 11. new text end

new text begin Marijuana testing facility. new text end

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

new text begin Subd. 12. new text end

new text begin Public health standards and practices. new text end

new text begin "Public health standards and practices"
means standards and practices based on the principles of protecting and improving individual
and public health by promoting healthy lifestyles, preventing injuries, and preventing and
responding to diseases.
new text end

new text begin Subd. 13. new text end

new text begin Retail marijuana store. new text end

new text begin "Retail marijuana store" means an entity licensed to
purchase marijuana from marijuana cultivation facilities and marijuana, marijuana products,
and marijuana accessories from marijuana product manufacturing facilities and to sell
marijuana, marijuana products, and marijuana accessories to consumers.
new text end

Sec. 2.

new text begin [340B.03] PERSONAL POSSESSION AND USE OF MARIJUANA.
new text end

new text begin A person who is 21 years of age or older may possess, use, purchase, transport, transfer,
and consume marijuana, marijuana products, and marijuana accessories according to section
152.211.
new text end

Sec. 3.

new text begin [340B.05] REGULATION OF MARIJUANA.
new text end

new text begin Subdivision 1. new text end

new text begin Rulemaking authorized. new text end

new text begin (a) No later than January 1, 2021, the
commissioner of health shall adopt rules to implement this chapter. In adopting rules under
this section, the commissioner must apply public health standards and practices to protect
the public health and must establish standards, procedures, and safeguards to prevent persons
under age 21 from using marijuana and to prevent persons under age 21 from being targeted
for the sale of marijuana, while still permitting persons age 21 and older to possess, use,
and consume marijuana, marijuana products, and marijuana accessories. The rules must
address:
new text end

new text begin (1) procedures for the issuance, renewal, suspension, and revocation of a license to
operate a marijuana establishment;
new text end

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

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

new text begin (4) health and safety regulations and standards for producing and processing marijuana
and marijuana products;
new text end

new text begin (5) safety standards for marijuana products, including safety requirements related to
contaminants and potency;
new text end

new text begin (6) security requirements for marijuana establishments;
new text end

new text begin (7) labeling requirements for marijuana and marijuana products sold or distributed by
a retail marijuana store;
new text end

new text begin (8) requirements for the cultivation of marijuana by marijuana cultivation facilities. In
adopted rules under this clause, the commissioner may consult with the commissioner of
agriculture on topics such as pesticide use;
new text end

new text begin (9) requirements for the testing and labeling of marijuana and marijuana products;
new text end

new text begin (10) record-keeping and audit requirements for marijuana establishments. In adopting
rules under this clause, the commissioner may consult with the commissioner of revenue;
new text end

new text begin (11) safety standards for edible marijuana products, which may include limits on the
types of edible products produced and sold and packaging requirements for edible products,
in order to limit products that may appeal to or be ingested by children; and
new text end

new text begin (12) any other requirements or procedures necessary to administer this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Board of Public Health Professionals. new text end

new text begin (a) The commissioner of health shall
appoint members to a Board of Public Health Professionals to advise the commissioner on
the adoption of rules under subdivision 1 according to public health standards and practices
and to analyze and evaluate the social and economic impacts of this chapter and rules adopted
under subdivision 1. Marijuana establishment owners, agents, and employees are not eligible
to serve on the Board of Public Health Professionals. Board membership shall include public
health professionals and health care providers.
new text end

new text begin (b) The commissioner shall provide administrative support and meeting support to the
board. Applications, terms, compensation, and removal of board members are governed by
section 15.059.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 4.

new text begin [340B.07] LOCAL REGULATIONS.
new text end

new text begin (a) Except as provided in paragraph (b), a local government may adopt ordinances or
regulations that are more restrictive than the requirements in this chapter or more restrictive
than the requirements of rules adopted under this chapter, if the governing body of the local
government determines such ordinances or regulations protect the public health. A local
government may adopt ordinances or regulations:
new text end

new text begin (1) governing the time, place, and manner of the cultivation of marijuana or consumption
or use of marijuana, marijuana products, or marijuana accessories;
new text end

new text begin (2) governing the time, place, and manner of the operation of marijuana establishments
and the number of marijuana establishments within the jurisdiction of the local government;
new text end

new text begin (3) requiring a marijuana establishment to obtain a license issued by the local government,
or other form of authorization required by the local government, in order to operate within
the local government's jurisdiction;
new text end

new text begin (4) regulating the manufacturing, processing, and transporting of marijuana, marijuana
products, and marijuana accessories;
new text end

new text begin (5) establishing civil penalties for a violation of an ordinance or regulation related to
the cultivation of marijuana, consumption of marijuana or marijuana products, or operation
of marijuana establishments; and
new text end

new text begin (6) establishing any other requirements or procedures necessary to regulate the cultivation,
processing, sale, use, and consumption of marijuana and marijuana products in a manner
that protects the public health.
new text end

new text begin (b) A local government shall not adopt a regulation or ordinance to prohibit or establish
criminal penalties for the possession, sale, use, or consumption of marijuana, marijuana
products, or marijuana accessories as authorized under this chapter and chapter 152.
new text end

Sec. 5.

new text begin [340B.09] GENERAL REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Marijuana establishments. new text end

new text begin No person may operate a marijuana
establishment in this state without first obtaining the proper license from the commissioner
of health to perform the activities and operations authorized by this chapter, and obtaining
the proper authorization, if any, required by the local government of the jurisdiction in
which the marijuana establishment is located. No person under 21 years of age may be
employed by a marijuana establishment.
new text end

new text begin Subd. 2. new text end

new text begin Rights of employers. new text end

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

new text begin Subd. 3. new text end

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

new text begin Notwithstanding any law
to the contrary, an employer is prohibited from disciplining or discriminating against an
employee or prospective employee because the employee or prospective employee has
metabolites of marijuana in the employee's or prospective employee's blood, urine, or saliva.
It is not a violation of subdivision 2 for an employer to restrict the use or consumption of
marijuana or marijuana products by employees during nonworking hours if:
new text end

new text begin (1) the employer's restriction relates to a bona fide occupational requirement and is
reasonably related to employment activities or responsibilities of a particular employee or
group of employees; or
new text end

new text begin (2) it is necessary to avoid a conflict of interest or the appearance of a conflict of interest
with any responsibilities owed by the employee to the employer.
new text end

new text begin Subd. 4. new text end

new text begin Rights of property owners. new text end

new text begin Nothing in this chapter prohibits a person,
employer, school, hospital, detention or correctional 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 marijuana or marijuana products on the person's or entity's property.
new text end

new text begin Subd. 5. new text end

new text begin Rights of residential tenants. new text end

new text begin A residential tenant who is 21 years of age or
older may possess, use, and consume marijuana and marijuana products and may possess
and grow marijuana plants as authorized by this chapter, in a residential building, but
smoking a marijuana product or consuming a marijuana product by use of an electronic
delivery device may be prohibited by a written lease, by law or ordinance, or by written
housing policies.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective January 1, 2021, unless another effective date is specified.
new text end

ARTICLE 2

TAXATION

Section 1.

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.

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

Sec. 2.

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

new text begin Subd. 59. new text end

new text begin Marijuana. new text end

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

Sec. 3.

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

new text begin Subd. 60. new text end

new text begin Marijuana accessory. new text end

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

Sec. 4.

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

new text begin Subd. 61. new text end

new text begin Marijuana product. new text end

new text begin "Marijuana product" has the meaning given in section
340B.01, subdivision 10.
new text end

Sec. 5.

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

Subdivision 1.

Generally.

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

Sec. 6.

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

new text begin Subd. 3a. new text end

new text begin Marijuana rate. new text end

new text begin A sales tax of ....... percent is imposed on the gross receipts
from the retail sales made in this state of marijuana, marijuana products, and marijuana
accessories.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective for sales and purchases made after December 31, 2020.
new text end

ARTICLE 3

CLEAN INDOOR AIR ACT; CONTROLLED SUBSTANCE ACT

Section 1.

Minnesota Statutes 2016, section 144.413, subdivision 4, is amended to read:

Subd. 4.

Smoking.

"Smoking" means inhaling or exhaling smoke from any lighted cigar,
cigarette, new text begin or new text end pipe deleted text begin , deleted text end new text begin ; any lighted marijuana; new text end or any other lighted tobacco new text begin product, marijuana
product, new text end or plant product. Smoking also includes carrying a lighted cigar, cigarette, pipe, new text begin
marijuana, new text end or any other lighted tobacco new text begin product, marijuana product, new text end or plant product intended
for inhalation. new text begin Smoking also includes the use of an electronic delivery device or inhaling
and exhaling the vapor from such a device.
new text end

Sec. 2.

Minnesota Statutes 2016, section 144.413, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Electronic delivery device. new text end

new text begin "Electronic delivery device" has the meaning given
in section 609.685, subdivision 1, except that electronic delivery device also includes a
product containing or delivering marijuana or marijuana derivatives through inhalation of
vapor from the product.
new text end

Sec. 3.

Minnesota Statutes 2016, section 144.413, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Marijuana. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 144.413, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Marijuana product. new text end

new text begin "Marijuana product" has the meaning given in section
340B.01, subdivision 10.
new text end

Sec. 5.

Minnesota Statutes 2016, section 144.4165, is amended to read:

144.4165 TOBACCO PRODUCTS new text begin , MARIJUANA, AND MARIJUANA PRODUCTS new text end
PROHIBITED IN PUBLIC SCHOOLS.

new text begin Subdivision 1. new text end

new text begin Tobacco products. new text end

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

new text begin Subd. 2. new text end

new text begin Marijuana and marijuana products. new text end

new text begin No person shall at any time smoke,
ingest, consume, or otherwise use marijuana or a marijuana product in a public school, as
defined in section 120A.05, subdivisions 9, 11, and 13, and no person shall possess any of
these items in a public school. This prohibition extends to all facilities, whether owned,
rented, or leased, and all vehicles that a school district owns, leases, rents, contracts for, or
controls.
new text end

Sec. 6.

Minnesota Statutes 2016, section 152.01, is amended by adding a subdivision to
read:

new text begin Subd. 9b. new text end

new text begin Marijuana accessory. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 152.01, is amended by adding a subdivision to
read:

new text begin Subd. 9c. new text end

new text begin Marijuana product. new text end

new text begin "Marijuana product" has the meaning given in section
340B.01, subdivision 10.
new text end

Sec. 8.

Minnesota Statutes 2016, section 152.027, subdivision 3, is amended to read:

Subd. 3.

Possession of new text begin a marijuana product or new text end 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, new text begin a marijuana product or new text end more than deleted text begin 1.4 grams deleted text end new text begin one ounce new text end 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.

Sec. 9.

Minnesota Statutes 2016, section 152.027, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Consumption of a marijuana product or marijuana in a motor vehicle.
new text end

new text begin A person is guilty of a misdemeanor if the person consumes a marijuana product or smokes,
ingests, consumes, or otherwise uses marijuana in a motor vehicle when the motor vehicle
is on a street or highway.
new text end

Sec. 10.

Minnesota Statutes 2016, section 152.027, subdivision 4, is amended to read:

Subd. 4.

Possession or sale of small amounts of marijuana.

(a) new text begin Except as provided in
section 152.211, new text end 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.

Sec. 11.

Minnesota Statutes 2016, section 152.092, is amended to read:

152.092 POSSESSION OF DRUG PARAPHERNALIA PROHIBITED.

(a) new text begin Except as provided in section 152.211 or 152.212, new text end it is unlawful for any person
knowingly or intentionally to use or to possess drug paraphernalia. Any violation of this
section is a petty misdemeanor.

(b) A person who violates paragraph (a) and has previously violated paragraph (a) on
two or more occasions has committed a crime and may be sentenced to imprisonment for
up to 90 days or to payment of a fine up to $1,000, or both.

Sec. 12.

Minnesota Statutes 2016, section 152.093, is amended to read:

152.093 MANUFACTURE OR DELIVERY OF DRUG PARAPHERNALIA
PROHIBITED.

new text begin Except as provided in section 152.211 or 152.212, new text end it is unlawful for any person knowingly
or intentionally to deliver drug paraphernalia or knowingly or intentionally to possess or
manufacture drug paraphernalia for delivery. Any violation of this section is a misdemeanor.

Sec. 13.

new text begin [152.211] PERSONAL POSSESSION AND USE OF MARIJUANA.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized acts. new text end

new text begin (a) A person who is 21 years of age or older may:
new text end

new text begin (1) possess, use, or transport marijuana products or one ounce or less of marijuana;
new text end

new text begin (2) purchase marijuana products or one ounce or less of marijuana, from a retail marijuana
store;
new text end

new text begin (3) possess, use, transport, or purchase marijuana accessories from a retail marijuana
store;
new text end

new text begin (4) transfer marijuana products, one ounce or less of marijuana, or marijuana accessories,
without remuneration to a person who is 21 years of age or older;
new text end

new text begin (5) consume marijuana or marijuana products, provided that nothing in this section
permits a person to smoke marijuana in violation of sections 144.411 to 144.417, or to
consume marijuana or marijuana products in a public place, on private property without the
consent of the property owner, or in a manner that endangers others; and
new text end

new text begin (6) assist another person who is 21 years of age or older in any of the acts described in
clauses (1) to (5).
new text end

new text begin (b) Acts listed in paragraph (a) shall not be the basis for seizure or forfeiture of assets.
new text end

new text begin (c) For purposes of this section, "public place" means a public street, highway, alley,
sidewalk, or boulevard, or property owned, leased, or controlled by a governmental unit.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited acts. new text end

new text begin 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 marijuana.
new text end

Sec. 14.

new text begin [152.212] ACTIVITIES RELATED TO THE CULTIVATION,
TRANSPORTATION, MANUFACTURE, AND SALE OF MARIJUANA,
MARIJUANA PRODUCTS, AND MARIJUANA ACCESSORIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "marijuana cultivation facility,"
"marijuana product manufacturing facility," "marijuana testing facility," and "retail marijuana
store" have the meanings given in section 340B.01.
new text end

new text begin Subd. 2. new text end

new text begin Acts not violations of chapter. new text end

new text begin (a) A person who is 21 years of age or older
may:
new text end

new text begin (1) manufacture, possess, or purchase marijuana accessories or sell marijuana accessories
to a person who is 21 years of age or older;
new text end

new text begin (2) conduct any of the following activities if the person has a current, valid license to
operate a retail marijuana store or is acting in the person's capacity as an owner, employee,
or agent of a licensed retail marijuana store: possess, display, or transport marijuana or
marijuana products; purchase marijuana from a marijuana cultivation facility; purchase
marijuana or marijuana products from a marijuana product manufacturing facility; or sell
marijuana or marijuana products to consumers;
new text end

new text begin (3) conduct any of the following activities if the person has a current, valid license to
operate a marijuana cultivation facility or is acting in the person's capacity as an owner,
employee, or agent of a licensed marijuana cultivation facility: cultivate, harvest, process,
package, transport, display, or possess marijuana; deliver or transfer marijuana to a marijuana
testing facility; sell marijuana to a marijuana cultivation facility, a marijuana product
manufacturing facility, or a retail marijuana store; or purchase marijuana from a marijuana
cultivation facility;
new text end

new text begin (4) conduct any of the following activities if the person has a current, valid license to
operate a marijuana product manufacturing facility or is acting in the person's capacity as
an owner, employee, or agent of a licensed marijuana product manufacturing facility:
package, process, transport, manufacture, display, or possess marijuana or marijuana
products; deliver or transfer marijuana or marijuana products to a marijuana testing facility;
sell marijuana or marijuana products to a retail marijuana store or a marijuana product
manufacturing facility; purchase marijuana from a marijuana cultivation facility; or purchase
marijuana or marijuana products from a marijuana product manufacturing facility;
new text end

new text begin (5) conduct any of the following activities if the person has a current, valid license to
operate a marijuana testing facility or is acting in the person's capacity as an owner, employee,
or agent of a licensed marijuana testing facility: possess, cultivate, process, repackage, store,
transport, display, transfer, or deliver marijuana or marijuana products; or
new text end

new text begin (6) lease or otherwise allow the use of property owned, occupied, or controlled by any
person, corporation, or other entity for any of the activities conducted lawfully in accordance
with this section.
new text end

new text begin (b) Acts listed in paragraph (a) shall not be the basis for seizure or forfeiture of assets.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 144.414, subdivision 5, new text end new text begin is repealed.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Statutes: 18-7911

144.414 PROHIBITIONS.

Subd. 5.

Electronic cigarettes.

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

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

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

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

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

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