HF 5282

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/04/2024 02:52pm

A bill for an act
relating to state government; modifying the licensure of businesses engaged in
cannabis sales; regulating the transfer and sharing of data between state agencies;
imposing penalties; authorizing rulemaking; amending Minnesota Statutes 2023
Supplement, sections 342.15, by adding a subdivision; 342.19, by adding a
subdivision; 342.62, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 342.15, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Civil and regulatory offenses; disqualifications. new text end

new text begin The office may, by rule,
determine whether any civil or regulatory violations, as determined by another state agency,
local unit of government, or any other jurisdiction, disqualify an individual from holding
or receiving a cannabis business license issued under this chapter or disqualify an individual
from working for a cannabis business, and the length of the disqualification. The office
must have access to all investigative or regulatory data, regardless of its data classification
under chapter 13, relating to an individual who applies for a cannabis license or applies to
work for a cannabis business, when the data is held by any other state agency that has
regulatory authority over the individual.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 342.19, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Inspection of unlicensed businesses and facilities. new text end

new text begin (a) The office may inspect
any commercial premises that are not licensed under this chapter where cultivation,
manufacturing, processing, or sale of cannabis plants, cannabis flower, cannabis concentrate,
artificially derived cannabinoids, hemp-derived consumer products, or edible cannabinoid
products is taking place.
new text end

new text begin (b) A representative of the office performing an inspection under this subdivision must
present appropriate credentials to the owner, operator, or agent in charge and clearly state
the purpose of the inspection.
new text end

new text begin (c) To determine if any person is engaging in activities that are regulated by this chapter
and not authorized without the possession of a license, and to determine the appropriate
penalty under section 342.09, subdivision 6, a representative of the office may, after providing
the notice required under paragraph (b), enter the commercial premises and perform any of
the following:
new text end

new text begin (1) inspect and investigate the commercial premises;
new text end

new text begin (2) inspect and copy records; and
new text end

new text begin (3) question privately any employer, owner, operator, agent, or employee of the
commercial operation.
new text end

new text begin (d) Entry of a commercial premises must take place during regular working hours or at
other reasonable times.
new text end

new text begin (e) If the office finds any cannabis plant, cannabis flower, cannabis product, artificially
derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product on
the inspected commercial premises, the office may either immediately seize the item or
affix to the item a tag, withdrawal from distribution order, or other appropriate marking
providing notice that the cannabis plant, cannabis flower, cannabis product, artificially
derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product is, or
is suspected of being, possessed or distributed in violation of this chapter, and has been
detained or embargoed, and warning all persons not to remove or dispose of the item by
sale or otherwise until permission for removal or disposal is given by the office or the court.
It is unlawful for a person to remove or dispose of a detained or embargoed cannabis plant,
cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp
edible, or hemp-derived consumer product by sale or otherwise without the office's or a
court's permission and each transaction may be treated as a sale for the purposes of imposing
a penalty pursuant to section 342.09, subdivision 6.
new text end

new text begin (f) If the office has seized, detained, or embargoed any item pursuant to paragraph (e),
the office must:
new text end

new text begin (1) petition the district court in the county in which the item was found for an order
authorizing destruction of the product; and
new text end

new text begin (2) notify the county attorney in the county where the item was found of the office's
actions.
new text end

new text begin (g) If the court finds that the seized, detained, or embargoed cannabis plant, cannabis
flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or
hemp-derived consumer product was possessed or distributed in violation of this chapter
or rules adopted under this chapter, the office may destroy the cannabis plant, cannabis
flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or
hemp-derived consumer product at the expense of the person who possessed or distributed
the item in violation of this chapter, and all court costs, fees, storage, and other proper
expenses must be assessed against the person or the person's agent.
new text end

new text begin (h) The provisions of subdivision 2, paragraph (f), apply to any analysis or examination
performed under this subdivision.
new text end

new text begin (i) The authorization under paragraph (e) does not apply to any cannabis flower, cannabis
product, lower-potency hemp edible, or hemp-derived consumer product lawfully purchased
for personal use.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 342.62, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Prohibition of the sale of certain empty packaging. new text end

new text begin No person may sell, offer
for sale, or facilitate the sale of empty packaging that, if used, would be a violation of this
section. Enforcement of this subdivision is subject to section 8.31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin TRANSFER OF ACTIVE AND INACTIVE COMPLAINTS.
new text end

new text begin The Department of Health shall transfer all data, including not public data as defined in
Minnesota Statutes, section 13.02, subdivision 8a, on active complaints and inactive
complaints involving alleged violations of Minnesota Statutes 2023 Supplement, section
151.72, as well as registration data collected under Minnesota Statutes 2023 Supplement,
section 151.72, subdivision 5b, to the Office of Cannabis Management. The Department of
Health and the Office of Cannabis Management shall ensure that the transfer takes place in
a manner and on a schedule that prioritizes public health.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 5. new text begin TRANSFER OF MEDICAL PROGRAM.
new text end

new text begin (a) Notwithstanding the data's classification under Minnesota Statutes, chapter 13, the
Office of Cannabis Management may access data maintained by the commissioner of health
related to the responsibilities transferred under Minnesota Statutes, section 342.02,
subdivision 3. Data sharing authorized by this subdivision includes not public data as defined
in Minnesota Statutes, section 13.02, subdivision 8a, on active complaints and inactive
complaints involving any alleged violation of Minnesota Statutes, sections 152.22 to 152.37,
by a medical cannabis manufacturer. Data sharing under this paragraph further includes
data in patient files maintained by the commissioner and the health care practitioner, and
data submitted to or by a medical cannabis manufacturer classified as private data on
individuals, as defined in Minnesota Statutes, section 13.02, subdivision 12, or nonpublic
data, as defined in Minnesota Statutes, section 13.02, subdivision 9. Any data shared under
this section retain the data's classification from the agency holding the data.
new text end

new text begin (b) All rules adopted by the commissioner of health pursuant to Minnesota Statutes,
sections 152.22 to 152.37, including but not limited to Minnesota Rules, chapter 4770,
remain effective and shall be enforced until amended or repealed consistent with Minnesota
Statutes, section 15.039, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end