HF 5222

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 11:53am

A bill for an act
relating to state government; modifying appropriations to the Office of Cannabis
Management and the Department of Health; modifying cannabis provisions;
appropriating money; amending Minnesota Statutes 2023 Supplement, sections
144.197; 342.72; Laws 2023, chapter 63, article 9, sections 5; 10; 20.

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

ARTICLE 1

APPROPRIATIONS

Section 1.

Laws 2023, chapter 63, article 9, section 5, is amended to read:

Sec. 5. OFFICE OF CANNABIS MANAGEMENT

$

21,614,000

$

deleted text begin 17,953,000 deleted text end new text begin 20,680,000 new text end

The base for this appropriation is deleted text begin $35,587,000 deleted text end new text begin
$36,909,000 new text end in fiscal year 2026 and
deleted text begin $38,144,000 deleted text end new text begin $39,530,000 new text end in fiscal year 2027.

$1,000,000 the second year is for cannabis
industry community renewal grants under
Minnesota Statutes, section 342.70. Of these
amounts, up to three percent may be used for
administrative expenses. The base for this
appropriation is $15,000,000 in fiscal year
2026 and each fiscal year thereafter.

$1,000,000 each year is for transfer to the
CanGrow revolving loan account established
under Minnesota Statutes, section 342.73,
subdivision 4. Of these amounts, up to three
percent may be used for administrative
expenses.

new text begin $1,107,000 the second year is for temporary
regulation under the Health Enforcement
Consolidation Act of 1993 of edible products
extracted from hemp. This is a onetime
appropriation.
new text end

new text begin $771,000 the second year is for testing
products regulated under Minnesota Statutes,
section 151.72, and chapter 342. The base for
this appropriation is $690,000 in fiscal year
2026 and each year thereafter.
new text end

new text begin $849,000 the second year is for the Office of
Cannabis Management to operate a state
reference laboratory. The base for this
appropriation is $632,000 in fiscal year 2026
and $696,000 in fiscal year 2027.
new text end

Sec. 2.

Laws 2023, chapter 63, article 9, section 10, is amended to read:

Sec. 10. HEALTH

Subdivision 1. Total Appropriation

$

3,300,000

$

deleted text begin 20,252,000 deleted text end new text begin 23,025,000 new text end

The base for this appropriation is deleted text begin $19,064,000 deleted text end new text begin
$23,242,000 new text end in fiscal year 2026 and deleted text begin each fiscal
year thereafter deleted text end new text begin $23,178,000 in fiscal year
2027 new text end .

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Youth new text begin Prevention and new text end Education new text begin Program new text end

-0-

deleted text begin 5,000,000 deleted text end new text begin 4,363,000 new text end

For new text begin administration and new text end grants under Minnesota
Statutes, section 144.197, subdivision 1. new text begin Of
the amount appropriated, $2,863,000 is for
program operations and administration and
$1,500,000 is for grants. The base for this
appropriation is $4,534,000 in fiscal year 2026
and $4,470,000 in fiscal year 2027.
new text end

Subd. 3. new text begin Prevention and new text end Education deleted text begin Grants deleted text end for Pregnant or Breastfeeding Individuals

-0-

deleted text begin 2,000,000 deleted text end new text begin 1,788,000 new text end

For deleted text begin grants under deleted text end new text begin a coordinated prevention and
education program for pregnant and
breastfeeding individuals under new text end Minnesota
Statutes, section 144.197, subdivision 2. new text begin The
base for this appropriation is $1,834,000 in
fiscal year 2026 and each year thereafter.
new text end

Subd. 4. Local and Tribal Health Departments

-0-

10,000,000

For new text begin administration and new text end grants under Minnesota
Statutes, section 144.197, subdivision 4. new text begin Of
the amount appropriated, $1,094,000 is for
administration and $8,906,000 is for grants.
new text end

Subd. 5. Cannabis Data Collection and Biennial Reports

493,000

493,000

For reports under Minnesota Statutes, section
144.196.

Subd. 6. Administration for Expungement Orders

71,000

71,000

For administration related to orders issued by
the Cannabis Expungement Board. The base
for this appropriation is $71,000 in fiscal year
2026, $71,000 in fiscal year 2027, $71,000 in
fiscal year 2028, $71,000 in fiscal year 2029,
and $0 in fiscal year 2030.

Subd. 7. Grants to the Minnesota Poison Control System

910,000

810,000

For new text begin administration and new text end grants under Minnesota
Statutes, section 145.93. new text begin Of the amount
appropriated in fiscal year 2025, $15,000 is
for administration and $795,000 is for grants.
new text end

Subd. 8. Temporary Regulation of Edible Products Extracted from Hemp

1,107,000

deleted text begin 1,107,000 deleted text end new text begin -0- new text end

For temporary regulation under the health
enforcement consolidation act of edible
products extracted from hemp. new text begin The
commissioner may transfer encumbrances and
unobligated amounts to the Office of Cannabis
Management for this purpose. new text end This is a
onetime appropriation.

Subd. 9. Testing deleted text begin . deleted text end

719,000

deleted text begin 771,000 deleted text end new text begin -0- new text end

For testing of edible cannabinoid products.
deleted text begin The base for this appropriation is $690,000 in
fiscal year 2026 and each fiscal year thereafter. deleted text end new text begin
The commissioner may transfer encumbrances
and unobligated amounts to the Office of
Cannabis Management for this purpose.
new text end

new text begin Subd. 10. new text end new text begin Substance Use Treatment, Recovery, and Prevention new text end

new text begin -0- new text end

new text begin 5,500,000 new text end

new text begin For the purposes outlined in Minnesota
Statutes, section 342.72. The base for this
appropriation is $5,500,000 in fiscal year 2026
and each fiscal year thereafter.
new text end

Sec. 3.

Laws 2023, chapter 63, article 9, section 20, is amended to read:

Sec. 20. TRANSFERS.

deleted text begin (a) deleted text end $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are transferred
from the general fund to the dual training account in the special revenue fund under
Minnesota Statutes, section 136A.246, subdivision 10, for grants to employers in the legal
cannabis industry. The base for this transfer is $1,000,000 in fiscal year 2026 and each fiscal
year thereafter. The commissioner may use up to six percent of the amount transferred for
administrative costs. The commissioner shall give priority to applications from employers
who are, or who are training employees who are, eligible to be social equity applicants
under Minnesota Statutes, section 342.17. After June 30, 2025, any unencumbered balance
from this transfer may be used for grants to any eligible employer under Minnesota Statutes,
section 136A.246.

deleted text begin (b) $5,500,000 in fiscal year 2024 and $5,500,000 in fiscal year 2025 are transferred
from the general fund to the substance use treatment, recovery, and prevention grant account
established under Minnesota Statutes, section 342.72. The base for this transfer is $5,500,000
in fiscal year 2026 and each fiscal year thereafter.
deleted text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

Minnesota Statutes 2023 Supplement, section 144.197, is amended to read:

144.197 CANNABIS new text begin AND SUBSTANCE MISUSE PREVENTION AND
new text end EDUCATION PROGRAMS.

Subdivision 1.

Youth new text begin prevention and new text end education new text begin program new text end .

The commissioner of health,
in consultation with the commissioners of human services and education and in collaboration
with local health departments new text begin and Tribal health departments new text end , shall conduct a long-term,
coordinated deleted text begin education deleted text end program to raise public awareness about deleted text begin and address the top three deleted text end new text begin
substance misuse prevention, treatment options, and recovery options. The program must
address new text end adverse health effects deleted text begin , as determined by the commissioner, deleted text end associated with the use
of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products by persons under age 25. In conducting this education program, the
commissioner shall engage and consult with youth around the state on program content and
on methods to effectively disseminate program information to youth around the state.

Subd. 2.

new text begin Prevention and new text end education new text begin program new text end for pregnant and breastfeeding
individuals deleted text begin ; deleted text end new text begin and new text end individuals who may become pregnant.

The commissioner of health,
in consultation with the commissioners of human services and education, shall conduct a
long-term, coordinated new text begin prevention new text end program deleted text begin to educate deleted text end new text begin focused on preventing substance use
for new text end pregnant individuals, breastfeeding individuals, and individuals who may become
pregnant new text begin and raising public awareness of the risks of substance use while pregnant or
breastfeeding. The program must include education new text end on the adverse health effects of prenatal
exposure to cannabis flower, cannabis products, lower-potency hemp edibles, or
hemp-derived consumer products and on the adverse health effects experienced by infants
and children who are exposed to cannabis flower, cannabis products, lower-potency hemp
edibles, or hemp-derived consumer products in breast milk, from secondhand smoke, or by
ingesting cannabinoid products. This new text begin prevention and new text end education program must also educate
individuals on what constitutes a substance use disorder, signs of a substance use disorder,
and treatment options for persons with a substance use disorder. new text begin This prevention and
education program must also provide resources, including training resources, technical
assistance, or educational materials for local public health home visiting programs, Tribal
home visiting programs, and child welfare workers.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Home visiting programs. deleted text end

deleted text begin The commissioner of health shall provide training,
technical assistance, and education materials to local public health home visiting programs
and Tribal home visiting programs and child welfare workers regarding the safe and unsafe
use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products in homes with infants and young children. Training, technical assistance,
and education materials shall address substance use, the signs of a substance use disorder,
treatment options for persons with a substance use disorder, the dangers of driving under
the influence of cannabis flower, cannabis products, lower-potency hemp edibles, or
hemp-derived consumer products, how to safely consume cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products in homes with infants
and young children, and how to prevent infants and young children from being exposed to
cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products by ingesting cannabinoid products or through secondhand smoke.
deleted text end

Subd. 4.

Local and Tribal health departments.

The commissioner of health shall
distribute grants to local health departments and Tribal health departments for these
departments to create deleted text begin and disseminate educational materials on cannabis flower, cannabis
products, lower-potency hemp edibles, and hemp-derived consumer products and to provide
safe use and prevention training, education, technical assistance, and community engagement
regarding cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived
consumer products. deleted text end new text begin programs focusing on substance misuse prevention, treatment, and
recovery. The programs may be created for the uses described in Minnesota Statutes, section
342.72, and specific cannabis-related initiatives.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 342.72, is amended to read:

342.72 SUBSTANCE USE TREATMENT, RECOVERY, AND PREVENTION
GRANTS.

Subdivision 1.

Account established; appropriation.

A substance use treatment, recovery,
and prevention grant deleted text begin account deleted text end is created deleted text begin in the special revenue fund deleted text end . Money deleted text begin in the account,
including interest earned, deleted text end is appropriated to the deleted text begin office deleted text end new text begin commissioner of health new text end for the purposes
specified in this section. deleted text begin Of the amount transferred from the general fund to the account,
the office may use up to five percent for administrative expenses.
deleted text end

deleted text begin Subd. 2. deleted text end

deleted text begin Acceptance of gifts and grants. deleted text end

deleted text begin Notwithstanding sections 16A.013 to 16A.016,
the office may accept money contributed by individuals and may apply for grants from
charitable foundations to be used for the purposes identified in this section. The money
accepted under this section must be deposited in the substance use treatment, recovery, and
prevention grant account created under subdivision 1.
deleted text end

Subd. 3.

Disposition of money; grants.

(a) Money in the substance use treatment,
recovery, and prevention grant account must be distributed as follows:

(1) at least 75 percent of the money is for grants for substance use disorder and mental
health recovery and prevention programs. Funds must be used for recovery and prevention
activities and supplies that assist individuals and families to initiate, stabilize, and maintain
long-term recovery from substance use disorders and co-occurring mental health conditions.
Recovery and prevention activities may include prevention education, school-linked
behavioral health, school-based peer programs, peer supports, self-care and wellness,
culturally specific healing, community public awareness, mutual aid networks, telephone
recovery checkups, mental health warmlines, harm reduction, recovery community
organization development, first episode psychosis programs, and recovery housing; and

(2) up to 25 percent of the money is for substance use disorder treatment programs as
defined in chapter 245G and may be used to implement, strengthen, or expand supportive
services and activities that are not covered by medical assistance under chapter 256B,
MinnesotaCare under chapter 256L, or the behavioral health fund under chapter 254B.
Services and activities may include adoption or expansion of evidence-based practices;
competency-based training; continuing education; culturally specific and culturally responsive
services; sober recreational activities; developing referral relationships; family preservation
and healing; and start-up or capacity funding for programs that specialize in adolescent,
culturally specific, culturally responsive, disability-specific, co-occurring disorder, or family
treatment services.

(b) The deleted text begin office deleted text end new text begin commissioner of health new text end shall consult with the Governor's Advisory Council
on Opioids, Substance Use, and Addiction; the commissioner of human services; and deleted text begin the
commissioner of health deleted text end new text begin the Office of Cannabis Management new text end to develop an appropriate
application process, establish grant requirements, determine what organizations are eligible
to receive grants, and establish reporting requirements for grant recipients.

Subd. 4.

Reports to the legislature.

By January 15, deleted text begin 2024 deleted text end new text begin 2025 new text end , and each January 15
thereafter, the deleted text begin office deleted text end new text begin commissioner of health new text end must submit a report to the chairs and ranking
minority members of the committees of the house of representatives and the senate having
jurisdiction over health and human services policy and finance that details grants awarded
from the substance use treatment, recovery, and prevention grant account, including the
total amount awarded, total number of recipients, and geographic distribution of those
recipients.