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HF 766

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/02/2019 03:43pm

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

Current Version - 1st Engrossment

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A bill for an act
relating to health; modifying medical cannabis and industrial hemp requirements;
appropriating money; amending Minnesota Statutes 2018, sections 18K.02,
subdivision 3; 18K.03; 144.99, subdivision 1; 152.22, subdivisions 11, 13, by
adding subdivisions; 152.25, subdivisions 1, 1a, 4; 152.27, subdivisions 2, 3, 4,
6; 152.28, subdivision 1; 152.29, subdivisions 1, 2, 3, 3a; 152.31; 152.33,
subdivision 1; 152.34; 152.36, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 18K.02, subdivision 3, is amended to read:


Subd. 3.

Industrial hemp.

"Industrial hemp" means deleted text beginthe plantdeleted text end new text beginany plant species of the
genus
new text endCannabis deleted text beginsativa L.deleted text end and any deleted text beginpartdeleted text end new text beginparts new text endof the plant, whether growing or not, new text beginincluding
the plant's seeds, and all the plant's derivatives, extracts, cannabinoids, isomers, acids, salts,
and salts of isomers, whether growing or not,
new text endwith a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not
marijuana as defined in section 152.01, subdivision 9.

Sec. 2.

Minnesota Statutes 2018, section 18K.03, is amended to read:


18K.03 AGRICULTURAL CROP; POSSESSION AUTHORIZED.

new text begin Subdivision 1. new text end

new text begin Industrial hemp. new text end

Industrial hemp is an agricultural crop in this state. A
person may possess, transport, process, sell, or buy industrial hemp that is grown pursuant
to this chapter.

new text begin Subd. 2. new text end

new text begin Sale to medical cannabis manufacturers. new text end

new text begin A licensee under this chapter may
sell hemp to a medical cannabis manufacturer as authorized under sections 152.22 to 152.37.
new text end

Sec. 3.

Minnesota Statutes 2018, section 144.99, subdivision 1, is amended to read:


Subdivision 1.

Remedies available.

The provisions of chapters 103I and 157 and sections
115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14),
and (15)
; 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385;
144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98;
144.992; new text begin152.22 to 152.37; new text end326.70 to 326.785; 327.10 to 327.131; and 327.14 to 327.28
and all rules, orders, stipulation agreements, settlements, compliance agreements, licenses,
registrations, certificates, and permits adopted or issued by the department or under any
other law now in force or later enacted for the preservation of public health may, in addition
to provisions in other statutes, be enforced under this section.

Sec. 4.

Minnesota Statutes 2018, section 152.22, is amended by adding a subdivision to
read:


new text begin Subd. 5a. new text end

new text begin Hemp. new text end

new text begin "Hemp" has the meaning given to industrial hemp in section 18K.02,
subdivision 3. Hemp is not marijuana as defined in section 152.01, subdivision 9.
new text end

Sec. 5.

Minnesota Statutes 2018, section 152.22, is amended by adding a subdivision to
read:


new text begin Subd. 5b. new text end

new text begin Hemp grower. new text end

new text begin "Hemp grower" means a person licensed by the commissioner
of agriculture under chapter 18K to grow hemp for commercial purposes.
new text end

Sec. 6.

Minnesota Statutes 2018, section 152.22, subdivision 11, is amended to read:


Subd. 11.

Registered designated caregiver.

"Registered designated caregiver" means
a person who:

(1) is at least deleted text begin21deleted text endnew text begin 18new text end years old;

(2) does not have a conviction for a disqualifying felony offense;

(3) has been approved by the commissioner to assist a patient who has been identified
by a health care practitioner as developmentally or physically disabled and therefore deleted text beginunable
to self-administer medication
deleted text endnew text begin requires assistance in administering medical cannabisnew text end or
deleted text begin acquiredeleted text endnew text begin obtainingnew text end medical cannabis from a distribution facility due to the disability; and

(4) is authorized by the commissioner to assist the patient with the use of medical
cannabis.

Sec. 7.

Minnesota Statutes 2018, section 152.22, subdivision 13, is amended to read:


Subd. 13.

Registry verification.

"Registry verification" means the verification provided
by the commissioner that a patient is enrolled in the registry program and that includes the
patient's name, registry number, deleted text beginand qualifying medical conditiondeleted text end and, if applicable, the
name of the patient's registered designated caregiver or parent or legal guardian.

Sec. 8.

Minnesota Statutes 2018, section 152.25, subdivision 1, is amended to read:


Subdivision 1.

Medical cannabis manufacturer registration.

(a) The commissioner
shall register two in-state manufacturers for the production of all medical cannabis within
the state. new text beginA registration agreement between the commissioner and a manufacturer is
nontransferable.
new text endThe commissioner shall register new manufacturers or reregister the existing
manufacturers by December 1 every two years, using the factors described in this subdivision.
The commissioner shall accept applications after December 1, 2014, if one of the
manufacturers registered before December 1, 2014, ceases to be registered as a manufacturer.
The commissioner's determination that no manufacturer exists to fulfill the duties under
sections 152.22 to 152.37 is subject to judicial review in Ramsey County District Court.
Data submitted during the application process are private data on individuals or nonpublic
data as defined in section 13.02 until the manufacturer is registered under this section. Data
on a manufacturer that is registered are public data, unless the data are trade secret or security
information under section 13.37.

(b) As a condition for registration, a manufacturer must agree to:

(1) begin supplying medical cannabis to patients by July 1, 2015; and

(2) comply with all requirements under sections 152.22 to 152.37.

(c) The commissioner shall consider the following factors when determining which
manufacturer to register:

(1) the technical expertise of the manufacturer in cultivating medical cannabis and
converting the medical cannabis into an acceptable delivery method under section 152.22,
subdivision 6;

(2) the qualifications of the manufacturer's employees;

(3) the long-term financial stability of the manufacturer;

(4) the ability to provide appropriate security measures on the premises of the
manufacturer;

(5) whether the manufacturer has demonstrated an ability to meet the medical cannabis
production needs required by sections 152.22 to 152.37; and

(6) the manufacturer's projection and ongoing assessment of fees on patients with a
qualifying medical condition.

(d) If an officer, director, or controlling person of the manufacturer pleads or is found
guilty of intentionally diverting medical cannabis to a person other than allowed by law
under section 152.33, subdivision 1, the commissioner may decide not to renew the
registration of the manufacturer, provided the violation occurred while the person was an
officer, director, or controlling person of the manufacturer.

(e) The commissioner shall require each medical cannabis manufacturer to contract with
an independent laboratory to test medical cannabis produced by the manufacturer. The
commissioner shall approve the laboratory chosen by each manufacturer and require that
the laboratory report testing results to the manufacturer in a manner determined by the
commissioner.

Sec. 9.

Minnesota Statutes 2018, section 152.25, subdivision 1a, is amended to read:


Subd. 1a.

Revocationdeleted text begin,deleted text endnew text begin ornew text end nonrenewaldeleted text begin, or denial of consent to transferdeleted text endnew text begin ofnew text end a medical
cannabis manufacturer registration.

If the commissioner intends to revokedeleted text begin,deleted text endnew text begin ornew text end not renewdeleted text begin,
or deny consent to transfer
deleted text end a registration issued under this section, the commissioner must
first notify in writing the manufacturer against whom the action is to be taken and provide
the manufacturer with an opportunity to request a hearing under the contested case provisions
of chapter 14. If the manufacturer does not request a hearing by notifying the commissioner
in writing within 20 days after receipt of the notice of proposed action, the commissioner
may proceed with the action without a hearing. For revocations, the registration of a
manufacturer is considered revoked on the date specified in the commissioner's written
notice of revocation.

Sec. 10.

Minnesota Statutes 2018, section 152.25, subdivision 4, is amended to read:


Subd. 4.

Reports.

(a) The commissioner shall provide regular updates to the task force
on medical cannabis therapeutic research and to the chairs and ranking minority members
of the legislative committees with jurisdiction over health and human services, public safety,
judiciary, and civil law regardingnew text begin: (1)new text end any changes in federal law or regulatory restrictions
regarding the use of medical cannabisnew text begin or hemp; and (2) the market demand and supply in
this state for products made from hemp that can be used for medicinal purposes
new text end.

(b) The commissioner may submit medical research based on the data collected under
sections 152.22 to 152.37 to any federal agency with regulatory or enforcement authority
over medical cannabis to demonstrate the effectiveness of medical cannabis for treating a
qualifying medical condition.

Sec. 11.

Minnesota Statutes 2018, section 152.27, subdivision 2, is amended to read:


Subd. 2.

Commissioner duties.

(a) The commissioner shall:

(1) give notice of the program to health care practitioners in the state who are eligible
to serve as health care practitioners and explain the purposes and requirements of the
program;

(2) allow each health care practitioner who meets or agrees to meet the program's
requirements and who requests to participate, to be included in the registry program to
collect data for the patient registry;

(3) provide explanatory information and assistance to each health care practitioner in
understanding the nature of therapeutic use of medical cannabis within program requirements;

(4) create and provide a certification to be used by a health care practitioner for the
practitioner to certify whether a patient has been diagnosed with a qualifying medical
condition and include in the certification an option for the practitioner to certify whether
the patient, in the health care practitioner's medical opinion, is developmentally or physically
disabled and, as a result of that disability, the patient deleted text beginis unable to self-administer medicationdeleted text endnew text begin
requires assistance in administering medical cannabis
new text end or deleted text beginacquiredeleted text endnew text begin obtainingnew text end medical cannabis
from a distribution facility;

(5) supervise the participation of the health care practitioner in conducting patient
treatment and health records reporting in a manner that ensures stringent security and
record-keeping requirements and that prevents the unauthorized release of private data on
individuals as defined by section 13.02;

(6) develop safety criteria for patients with a qualifying medical condition as a
requirement of the patient's participation in the program, to prevent the patient from
undertaking any task under the influence of medical cannabis that would constitute negligence
or professional malpractice on the part of the patient; and

(7) conduct research and studies based on data from health records submitted to the
registry program and submit reports on intermediate or final research results to the legislature
and major scientific journals. The commissioner may contract with a third party to complete
the requirements of this clause. Any reports submitted must comply with section 152.28,
subdivision 2
.

(b) If the commissioner wishes to add a delivery method under section 152.22, subdivision
6, or a qualifying medical condition under section 152.22, subdivision 14, the commissioner
must notify the chairs and ranking minority members of the legislative policy committees
having jurisdiction over health and public safety of the addition and the reasons for its
addition, including any written comments received by the commissioner from the public
and any guidance received from the task force on medical cannabis research, by January
15 of the year in which the commissioner wishes to make the change. The change shall be
effective on August 1 of that year, unless the legislature by law provides otherwise.

Sec. 12.

Minnesota Statutes 2018, section 152.27, subdivision 3, is amended to read:


Subd. 3.

Patient application.

(a) The commissioner shall develop a patient application
for enrollment into the registry program. The application shall be available to the patient
and given to health care practitioners in the state who are eligible to serve as health care
practitioners. The application must include:

(1) the name, mailing address, and date of birth of the patient;

(2) the name, mailing address, and telephone number of the patient's health care
practitioner;

(3) the name, mailing address, and date of birth of the patient's designated caregiver, if
any, or the patient's parent or legal guardian if the parent or legal guardian will be acting as
a caregiver;

(4) a copy of the certification from the patient's health care practitioner that is dated
within 90 days prior to submitting the application which certifies that the patient has been
diagnosed with a qualifying medical condition and, if applicable, that, in the health care
practitioner's medical opinion, the patient is developmentally or physically disabled and,
as a result of that disability, the patient deleted text beginis unable to self-administer medicationdeleted text endnew text begin requires
assistance in administering medical cannabis
new text end or deleted text beginacquiredeleted text endnew text begin obtainingnew text end medical cannabis from
a distribution facility; and

(5) all other signed affidavits and enrollment forms required by the commissioner under
sections 152.22 to 152.37, including, but not limited to, the disclosure form required under
paragraph (c).

(b) The commissioner shall require a patient to resubmit a copy of the certification from
the patient's health care practitioner on a yearly basis and shall require that the recertification
be dated within 90 days of submission.

(c) The commissioner shall develop a disclosure form and require, as a condition of
enrollment, all patients to sign a copy of the disclosure. The disclosure must include:

(1) a statement that, notwithstanding any law to the contrary, the commissioner, or an
employee of any state agency, may not be held civilly or criminally liable for any injury,
loss of property, personal injury, or death caused by any act or omission while acting within
the scope of office or employment under sections 152.22 to 152.37; and

(2) the patient's deleted text beginacknowledgementdeleted text endnew text begin acknowledgmentnew text end that enrollment in the patient registry
program is conditional on the patient's agreement to meet all of the requirements of sections
152.22 to 152.37.

Sec. 13.

Minnesota Statutes 2018, section 152.27, subdivision 4, is amended to read:


Subd. 4.

Registered designated caregiver.

(a) The commissioner shall register a
designated caregiver for a patient if the patient's health care practitioner has certified that
the patient, in the health care practitioner's medical opinion, is developmentally or physically
disabled and, as a result of that disability, the patient deleted text beginis unable to self-administer medication
or acquire
deleted text endnew text begin requires assistance in administering medical cannabis or obtainingnew text end medical
cannabis from a distribution facility and the caregiver has agreed, in writing, to be the
patient's designated caregiver. As a condition of registration as a designated caregiver, the
commissioner shall require the person to:

(1) be at least deleted text begin21deleted text endnew text begin 18new text end years of age;

(2) agree to only possess deleted text beginanydeleted text endnew text begin the patient'snew text end medical cannabis for purposes of assisting the
patient; and

(3) agree that if the application is approved, the person will not be a registered designated
caregiver for more than one patient, unless the patients reside in the same residence.

(b) The commissioner shall conduct a criminal background check on the designated
caregiver prior to registration to ensure that the person does not have a conviction for a
disqualifying felony offense. Any cost of the background check shall be paid by the person
seeking registration as a designated caregiver.

new text begin (c) Nothing in sections 152.22 to 152.37 shall be construed to prevent a person registered
as a designated caregiver from also being enrolled in the registry program as a patient and
possessing and using medical cannabis as a patient.
new text end

Sec. 14.

Minnesota Statutes 2018, section 152.27, subdivision 6, is amended to read:


Subd. 6.

Patient enrollment.

(a) After receipt of a patient's application, application fees,
and signed disclosure, the commissioner shall enroll the patient in the registry program and
issue the patient and patient's registered designated caregiver or parent or legal guardian, if
applicable, a registry verification. The commissioner shall approve or deny a patient's
application for participation in the registry program within 30 days after the commissioner
receives the patient's application and application fee. The commissioner may approve
applications up to 60 days after the receipt of a patient's application and application fees
until January 1, 2016. A patient's enrollment in the registry program shall only be denied
if the patient:

(1) does not have certification from a health care practitioner that the patient has been
diagnosed with a qualifying medical condition;

(2) has not signed and returned the disclosure form required under subdivision 3,
paragraph (c), to the commissioner;

(3) does not provide the information required;

(4) has previously been removed from the registry program for violations of section
152.30 or 152.33; or

(5) provides false information.

(b) The commissioner shall give written notice to a patient of the reason for denying
enrollment in the registry program.

(c) Denial of enrollment into the registry program is considered a final decision of the
commissioner and is subject to judicial review under the Administrative Procedure Act
pursuant to chapter 14.

(d) A patient's enrollment in the registry program may only be revoked upon the death
of the patient or if a patient violates a requirement under section 152.30 or 152.33.

(e) The commissioner shall develop a registry verification to provide to the patient, the
health care practitioner identified in the patient's application, and to the manufacturer. The
registry verification shall include:

(1) the patient's name and date of birth;

(2) the patient registry number assigned to the patient;new text begin and
new text end

deleted text begin (3) the patient's qualifying medical condition as provided by the patient's health care
practitioner in the certification; and
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end the name and date of birth of the patient's registered designated caregiver, if any,
or the name of the patient's parent or legal guardian if the parent or legal guardian will be
acting as a caregiver.

Sec. 15.

Minnesota Statutes 2018, section 152.28, subdivision 1, is amended to read:


Subdivision 1.

Health care practitioner duties.

(a) Prior to a patient's enrollment in
the registry program, a health care practitioner shall:

(1) determine, in the health care practitioner's medical judgment, whether a patient suffers
from a qualifying medical condition, and, if so determined, provide the patient with a
certification of that diagnosis;

(2) determine whether a patient is developmentally or physically disabled and, as a result
of that disability, the patient deleted text beginis unable to self-administer medication or acquiredeleted text end new text beginrequires
assistance in administering medical cannabis or obtaining
new text end medical cannabis from a
distribution facility, and, if so determined, include that determination on the patient's
certification of diagnosis;

(3) advise patients, registered designated caregivers, and parents or legal guardians who
are acting as caregivers of the existence of any nonprofit patient support groups or
organizations;

(4) provide explanatory information from the commissioner to patients with qualifying
medical conditions, including disclosure to all patients about the experimental nature of
therapeutic use of medical cannabis; the possible risks, benefits, and side effects of the
proposed treatment; the application and other materials from the commissioner; and provide
patients with the Tennessen warning as required by section 13.04, subdivision 2; and

(5) agree to continue treatment of the patient's qualifying medical condition and report
medical findings to the commissioner.

(b) Upon notification from the commissioner of the patient's enrollment in the registry
program, the health care practitioner shall:

(1) participate in the patient registry reporting system under the guidance and supervision
of the commissioner;

(2) report health records of the patient throughout the ongoing treatment of the patient
to the commissioner in a manner determined by the commissioner and in accordance with
subdivision 2;

(3) determine, on a yearly basis, if the patient continues to suffer from a qualifying
medical condition and, if so, issue the patient a new certification of that diagnosis; and

(4) otherwise comply with all requirements developed by the commissioner.

new text begin (c) A health care practitioner may conduct a patient assessment to issue a recertification
as required under paragraph (b), clause (3), via telemedicine as defined under section
62A.671, subdivision 9.
new text end

deleted text begin (c)deleted text endnew text begin (d)new text end Nothing in this section requires a health care practitioner to participate in the
registry program.

Sec. 16.

Minnesota Statutes 2018, section 152.29, subdivision 1, is amended to read:


Subdivision 1.

Manufacturer; requirements.

(a) A manufacturer shall operate deleted text beginfourdeleted text endnew text begin
eight
new text end distribution facilities, which may include the manufacturer's single location for
cultivation, harvesting, manufacturing, packaging, and processing but is not required to
include that location. deleted text beginA manufacturer is required to begin distribution of medical cannabis
from at least one distribution facility by July 1, 2015. All distribution facilities must be
operational and begin distribution of medical cannabis by July 1, 2016. The distribution
facilities shall be located
deleted text endnew text begin The commissioner shall designate the geographical service areas
to be served by each manufacturer
new text endbased on geographical need throughout the state to
improve patient access. deleted text beginA manufacturer shall disclose the proposed locations for the
distribution facilities to the commissioner during the registration process.
deleted text end new text beginA manufacturer
shall not have more than two distribution facilities in each geographical service area assigned
to the manufacturer by the commissioner.
new text endA manufacturer shall operate only one location
where all cultivation, harvesting, manufacturing, packaging, and processing shall be
conducted. deleted text beginAnydeleted text endnew text begin This location may be one of the manufacturer's distribution facility sites.
The
new text end additional distribution facilities may dispense medical cannabis and medical cannabis
products but may not contain any medical cannabis in a form other than those forms allowed
under section 152.22, subdivision 6, and the manufacturer shall not conduct any cultivation,
harvesting, manufacturing, packaging, or processing at deleted text beginan additionaldeleted text endnew text begin the othernew text end distribution
facility deleted text beginsitedeleted text endnew text begin sitesnew text end. Any distribution facility operated by the manufacturer is subject to all of
the requirements applying to the manufacturer under sections 152.22 to 152.37, including,
but not limited to, security and distribution requirements.

new text begin (b) A manufacturer may acquire hemp from a hemp grower. A manufacturer may
manufacture or process hemp into an allowable form of medical cannabis under section
152.22, subdivision 6. Hemp acquired by a manufacturer under this paragraph is subject to
the same quality control program, security and testing requirements, and other requirements
that apply to medical cannabis plant material under sections 152.22 to 152.37 and Minnesota
Rules, chapter 4770.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end A medical cannabis manufacturer shall contract with a laboratory approved by
the commissioner, subject to any additional requirements set by the commissioner, for
purposes of testing medical cannabis manufactured by the medical cannabis manufacturer
as to content, contamination, and consistency to verify the medical cannabis meets the
requirements of section 152.22, subdivision 6. The cost of laboratory testing shall be paid
by the manufacturer.

deleted text begin (c)deleted text endnew text begin (d)new text end The operating documents of a manufacturer must include:

(1) procedures for the oversight of the manufacturer and procedures to ensure accurate
record keeping; deleted text beginand
deleted text end

(2) procedures for the implementation of appropriate security measures to deter and
prevent the theft of medical cannabis new text beginor hempnew text end and unauthorized entrance into areas containing
medical cannabisdeleted text begin.deleted text endnew text begin or hemp; and
new text end

new text begin (3) procedures for the transportation and delivery of hemp from hemp growers to
manufacturers.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end A manufacturer shall implement security requirements, including requirements
for new text beginthe transportation and delivery of hemp from hemp growers to manufacturers,new text end protection
of each location by a fully operational security alarm system, facility access controls,
perimeter intrusion detection systems, and a personnel identification system.

deleted text begin (e)deleted text endnew text begin (f)new text end A manufacturer shall not share office space with, refer patients to a health care
practitioner, or have any financial relationship with a health care practitioner.

deleted text begin (f)deleted text endnew text begin (g)new text end A manufacturer shall not permit any person to consume medical cannabis on the
property of the manufacturer.

deleted text begin (g)deleted text endnew text begin (h)new text end A manufacturer is subject to reasonable inspection by the commissioner.

deleted text begin (h)deleted text endnew text begin (i)new text end For purposes of sections 152.22 to 152.37, a medical cannabis manufacturer is
not subject to the Board of Pharmacy licensure or regulatory requirements under chapter
151.

deleted text begin (i)deleted text endnew text begin (j)new text end A medical cannabis manufacturer may not employ any person who is under 21
years of age or who has been convicted of a disqualifying felony offense. An employee of
a medical cannabis manufacturer must submit a completed criminal history records check
consent form, a full set of classifiable fingerprints, and the required fees for submission to
the Bureau of Criminal Apprehension before an employee may begin working with the
manufacturer. The bureau must conduct a Minnesota criminal history records check and
the superintendent is authorized to exchange the fingerprints with the Federal Bureau of
Investigation to obtain the applicant's national criminal history record information. The
bureau shall return the results of the Minnesota and federal criminal history records checks
to the commissioner.

deleted text begin (j)deleted text endnew text begin (k)new text end A manufacturer may not operate in any location, whether for distribution or
cultivation, harvesting, manufacturing, packaging, or processing, within 1,000 feet of a
public or private school existing before the date of the manufacturer's registration with the
commissioner.

deleted text begin (k)deleted text endnew text begin (l)new text end A manufacturer shall comply with reasonable restrictions set by the commissioner
relating to signage, marketing, display, and advertising of medical cannabis.

new text begin (m) Before a manufacturer acquires hemp from a hemp grower, the manufacturer must
verify that the hemp grower has a valid license issued by the commissioner of agriculture
under chapter 18K.
new text end

Sec. 17.

Minnesota Statutes 2018, section 152.29, subdivision 2, is amended to read:


Subd. 2.

Manufacturer; production.

(a) A manufacturer of medical cannabis shall
provide a reliable and ongoing supply of all medical cannabis needed for the registry programnew text begin
through cultivation by the manufacturer and through the purchase of hemp from hemp
growers
new text end.

(b) All cultivationdeleted text begin,deleted text endnew text begin andnew text end harvestingnew text begin performed by the manufacturernew text end, new text beginand allnew text endnew text begin new text endmanufacturing,
packaging, and processing of medical cannabis new text beginand hemp, new text endmust take place in an enclosed,
locked facility at a physical address provided to the commissioner during the registration
process.

(c) A manufacturer must process and prepare any medical cannabis plant material new text beginor
hemp plant material
new text endinto a form allowable under section 152.22, subdivision 6, prior to
distribution of any medical cannabis.

Sec. 18.

Minnesota Statutes 2018, section 152.29, subdivision 3, is amended to read:


Subd. 3.

Manufacturer; distribution.

(a) A manufacturer shall require that employees
licensed as pharmacists pursuant to chapter 151 be the only employees to give final approval
for the distribution of medical cannabis to a patient.new text begin A manufacturer may transport medical
cannabis or medical cannabis products that have been cultivated, harvested, manufactured,
packaged, and processed by that manufacturer to another registered manufacturer for the
other manufacturer to distribute.
new text end

(b) A manufacturer may deleted text begindispensedeleted text endnew text begin distributenew text end medical cannabis products, whether or not
the products have been manufactured by deleted text beginthedeleted text endnew text begin thatnew text end manufacturerdeleted text begin, but is not required to dispense
medical cannabis products
deleted text end.

(c) Prior to distribution of any medical cannabis, the manufacturer shall:

(1) verify that the manufacturer has received the registry verification from the
commissioner for that individual patient;

(2) verify that the person requesting the distribution of medical cannabis is the patient,
the patient's registered designated caregiver, or the patient's parent or legal guardian listed
in the registry verification using the procedures described in section 152.11, subdivision
2d
;

(3) assign a tracking number to any medical cannabis distributed from the manufacturer;

(4) ensure that any employee of the manufacturer licensed as a pharmacist pursuant to
chapter 151 has consulted with the patient to determine the proper dosage for the individual
patient after reviewing the ranges of chemical compositions of the medical cannabis and
the ranges of proper dosages reported by the commissioner. For purposes of this clause, a
consultation may be conducted remotely using a videoconference, so long as the employee
providing the consultation is able to confirm the identity of the patient, the consultation
occurs while the patient is at a distribution facility, and the consultation adheres to patient
privacy requirements that apply to health care services delivered through telemedicine;

(5) properly package medical cannabis in compliance with the United States Poison
Prevention Packing Act regarding child-resistant packaging and exemptions for packaging
for elderly patients, and label distributed medical cannabis with a list of all active ingredients
and individually identifying information, including:

(i) the patient's name and date of birth;

(ii) the name and date of birth of the patient's registered designated caregiver or, if listed
on the registry verification, the name of the patient's parent or legal guardian, if applicable;

(iii) the patient's registry identification number;

(iv) the chemical composition of the medical cannabis; and

(v) the dosage; and

(6) ensure that the medical cannabis distributed contains a maximum of a deleted text begin30-daydeleted text end new text begin90-daynew text end
supply of the dosage determined for that patient.

(d) A manufacturer shall require any employee of the manufacturer who is transporting
medical cannabis or medical cannabis products to a distribution facility new text beginor to another
registered manufacturer
new text endto carry identification showing that the person is an employee of
the manufacturer.

Sec. 19.

Minnesota Statutes 2018, section 152.29, subdivision 3a, is amended to read:


Subd. 3a.

Transportation of medical cannabisnew text begin or hempnew text end; staffing.

A medical cannabis
manufacturer may staff a transport motor vehicle with only one employee if the medical
cannabis manufacturer is transporting medical cannabis new text beginor hemp new text endto either a certified
laboratory for the purpose of testing or a facility for the purpose of disposal. If the medical
cannabis manufacturer is transporting medical cannabis new text beginor hemp new text endfor any other purpose or
destination, the transport motor vehicle must be staffed with a minimum of two employees
as required by rules adopted by the commissioner.

Sec. 20.

Minnesota Statutes 2018, section 152.31, is amended to read:


152.31 DATA PRACTICES.

(a) Government data in patient files maintained by the commissioner and the health care
practitioner, and data submitted to or by a medical cannabis manufacturer, are private data
on individuals, as defined in section 13.02, subdivision 12, or nonpublic data, as defined in
section 13.02, subdivision 9, but may be used for purposes of complying with chapter 13
and complying with a request from the legislative auditor or the state auditor in the
performance of official duties. The provisions of section 13.05, subdivision 11, apply to a
registration agreement entered between the commissioner and a medical cannabis
manufacturer under section 152.25.

(b) Not public data maintained by the commissioner may not be used for any purpose
not provided for in sections 152.22 to 152.37, and may not be combined or linked in any
manner with any other list, dataset, or database.

new text begin (c) The commissioner may execute data sharing arrangements with the commissioner
of agriculture to verify licensing, inspection, and compliance information related to hemp
growers under chapter 18K.
new text end

Sec. 21.

Minnesota Statutes 2018, section 152.33, subdivision 1, is amended to read:


Subdivision 1.

Intentional diversion; criminal penalty.

In addition to any other
applicable penalty in law, a manufacturer or an agent of a manufacturer who intentionally
transfers medical cannabis to a person other than new text beginanother registered manufacturer, new text enda patient,
a registered designated caregiver or, if listed on the registry verification, a parent or legal
guardian of a patient is guilty of a felony punishable by imprisonment for not more than
two years or by payment of a fine of not more than $3,000, or both. A person convicted
under this subdivision may not continue to be affiliated with the manufacturer and is
disqualified from further participation under sections 152.22 to 152.37.

Sec. 22.

Minnesota Statutes 2018, section 152.34, is amended to read:


152.34 HEALTH CARE FACILITIES.

(a) Health care facilities licensed under chapter 144A, new text beginhospice providers licensed under
chapter 144A,
new text endboarding care homes new text beginor supervised living facilities new text endlicensed under section
144.50, assisted living facilities, deleted text beginanddeleted text end facilities owned, controlled, managed, or under common
control with hospitals licensed under chapter 144, new text beginand other health facilities licensed by the
commissioner of health,
new text endmay adopt reasonable restrictions on the use of medical cannabis
by a patient enrolled in the registry program who resides at or is actively receiving treatment
or care at the facility. The restrictions may include a provision that the facility will not store
or maintain the patient's supply of medical cannabis, that the facility is not responsible for
providing the medical cannabis for patients, and that medical cannabis be used only in a
place specified by the facility.

(b) Any employee or agent of a facility listed in this section or a person licensed under
chapter 144E is not subject to violations under this chapter for possession of medical cannabis
while carrying out employment duties, including providing or supervising care to a registered
patient, or distribution of medical cannabis to a registered patient who resides at or is actively
receiving treatment or care at the facility with which the employee or agent is affiliated.
Nothing in this section shall require the facilities to adopt such restrictions and no facility
shall unreasonably limit a patient's access to or use of medical cannabis to the extent that
use is authorized by the patient under sections 152.22 to 152.37.

Sec. 23.

Minnesota Statutes 2018, section 152.36, subdivision 2, is amended to read:


Subd. 2.

Impact assessment.

The task force shall hold hearings to evaluate the impact
of the use of medical cannabisnew text begin and hempnew text end and Minnesota's activities involving medical
cannabisnew text begin and hempnew text end, including, but not limited to:

(1) program design and implementation;

(2) the impact on the health care provider community;

(3) patient experiences;

(4) the impact on the incidence of substance abuse;

(5) access to and quality of medical cannabisnew text begin, hemp,new text end and medical cannabis products;

(6) the impact on law enforcement and prosecutions;

(7) public awareness and perception; and

(8) any unintended consequences.

Sec. 24. new text beginAPPROPRIATION.
new text end

new text begin $1,759,000 in fiscal year 2020 and $2,259,000 in fiscal year 2021 are appropriated from
the state government special revenue fund to the commissioner of health for administration
of the medical cannabis program under Minnesota Statutes, sections 152.22 to 152.37.
new text end