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Minnesota Legislature

Office of the Revisor of Statutes

SF 619

as introduced - 91st Legislature (2019 - 2020) Posted on 01/31/2019 02:12pm

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

Current Version - as introduced

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A bill for an act
relating to cannabis; allowing individuals 21 years of age or older to cultivate,
consume, use, and possess cannabis, cannabis products, and cannabis accessories;
providing regulation of cannabis for commercial purposes; modifying the Clean
Indoor Air Act; modifying controlled substance laws; authorizing rulemaking;
taxing certain cannabis sales; providing for expungement of certain crimes;
appropriating money;amending Minnesota Statutes 2018, sections 144.413,
subdivision 4, by adding subdivisions; 144.414, subdivisions 2, 3; 144.4165;
152.01, by adding subdivisions; 152.027, subdivisions 3, 4, by adding a subdivision;
152.092; 152.093; 152.23; 152.27, subdivision 1; 290.0132, by adding a
subdivision; 290.0134, by adding a subdivision; 297A.61, subdivision 4, by adding
subdivisions; 297A.62, subdivision 1, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapters 152; 214; 297A; 609A; proposing
coding for new law as Minnesota Statutes, chapter 340B; repealing Minnesota
Statutes 2018, section 144.414, subdivision 5.

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

ARTICLE 1

REGULATION OF THE PRODUCTION, SALE, AND CONSUMPTION OF
CANNABIS

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 Cannabis. new text end

new text begin (a) "Cannabis" means all parts of the plant of any species of the
genus Cannabis, including all agronomical varieties, whether growing or harvested and
includes:
new text end

new text begin (1) the seeds of the plant;
new text end

new text begin (2) the resin extracted from any part of the plant; and
new text end

new text begin (3) any compound, manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or resin.
new text end

new text begin (b) Cannabis does not include:
new text end

new text begin (1) the mature stalks of the plant and fiber produced from the stalks;
new text end

new text begin (2) oil or cake made from the seeds of the plant;
new text end

new text begin (3) any other compound, manufacture, salt, derivative, mixture, or preparation of the
mature stalks, fiber, oil, or cake;
new text end

new text begin (4) the sterilized seed of the plant which is incapable of germination;
new text end

new text begin (5) industrial hemp or hemp products as defined in section 18K.02, subdivision 3;
new text end

new text begin (6) medical cannabis as defined in section 152.22, subdivision 6; or
new text end

new text begin (7) any other ingredient combined with cannabis to prepare topical or oral administrations,
food, drink, or other product.
new text end

new text begin Subd. 3. new text end

new text begin Cannabis accessory. new text end

new text begin "Cannabis 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 cannabis, or for ingesting, inhaling, or otherwise introducing
cannabis into the human body.
new text end

new text begin Subd. 4. new text end

new text begin Cannabis cultivation facility. new text end

new text begin "Cannabis cultivation facility" means an entity
licensed to cultivate, prepare, and package cannabis and to sell cannabis to cannabis product
manufacturing facilities and to other cannabis cultivation facilities, but not directly to
consumers. A cannabis cultivation facility may not produce cannabis tinctures, extracts, or
other cannabis products.
new text end

new text begin Subd. 5. new text end

new text begin Cannabis establishment. new text end

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

new text begin Subd. 6. new text end

new text begin Cannabis product. new text end

new text begin "Cannabis product" means a product that is comprised of
cannabis and other ingredients and is intended for human consumption, including but not
limited to edible products, ointments, extracts, and tinctures.
new text end

new text begin Subd. 7. new text end

new text begin Cannabis product manufacturing facility. new text end

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

new text begin Subd. 8. new text end

new text begin Cannabis testing facility. new text end

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

new text begin Subd. 9. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of health.
new text end

new text begin Subd. 10. new text end

new text begin Consume. new text end

new text begin "Consume" includes any form of ingestion, introduction, or
absorption into the body, including but not limited to by means of smoking, inhaling, eating,
or application onto the skin.
new text end

new text begin Subd. 11. 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 cannabis, cannabis products, or cannabis accessories for personal consumption
by persons 21 years of age or older, but not for the resale to others.
new text end

new text begin Subd. 12. new text end

new text begin Cultivation permit. new text end

new text begin "Cultivation permit" means a permit issued under section
340B.16.
new text end

new text begin Subd. 13. new text end

new text begin Disqualifying felony offense. new text end

new text begin "Disqualifying felony offense" has the meaning
given in section 152.22, subdivision 3.
new text end

new text begin Subd. 14. new text end

new text begin Immature plant. new text end

new text begin "Immature plant" means a cannabis plant that has not
flowered and does not have buds that may be observed by visual examination.
new text end

new text begin Subd. 15. new text end

new text begin Local government. new text end

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

new text begin Subd. 16. new text end

new text begin Mature plant. new text end

new text begin "Mature plant" means a female cannabis plant that has flowered
and that has buds that may be observed by visual examination.
new text end

new text begin Subd. 17. new text end

new text begin Premises. new text end

new text begin "Premises" means the premises specified on an application for
licensure under this chapter that are owned by or in possession of the licensee and within
which the licensee is authorized to cultivate, manufacture, process, distribute, sell, or test
cannabis or cannabis products according to this chapter.
new text end

new text begin Subd. 18. 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, preventing and
responding to diseases, and, with regard to cannabis, reducing cannabis misuse, preventing
underage cannabis use, ensuring the safety of cannabis products, and ensuring consumers
have access to accurate, science-based information about the effects of cannabis use.
new text end

new text begin Subd. 19. new text end

new text begin Public place. new text end

new text begin "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. 20. new text end

new text begin Retail cannabis store. new text end

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

Sec. 2.

new text begin [340B.03] GENERAL PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) This chapter sets forth the exclusive means by which the
cultivation, production, processing, manufacture, distribution, sale, and testing of cannabis
and cannabis products may occur in this state. It is unlawful to produce, process, cultivate,
manufacture, distribute, or sell cannabis or cannabis products except in compliance with
the terms, conditions, limitations, and restrictions of this chapter or the rules adopted under
this chapter.
new text end

new text begin (b) Nothing in this chapter shall be construed to limit any of the privileges or rights of
a patient enrolled in the medical cannabis registry, registered designated caregiver, or
registered manufacturer provided under sections 152.22 to 152.37.
new text end

new text begin (c) Nothing in this chapter shall be construed to limit any of the privileges or rights of
a person who has a license from the commissioner of agriculture to grow industrial hemp
for commercial purposes under chapter 18K.
new text end

new text begin Subd. 2. new text end

new text begin Possession and consumption of cannabis. new text end

new text begin Notwithstanding subdivision 1, a
person 21 years of age or older may cultivate, possess, purchase, transport, transfer, use,
and consume cannabis, cannabis products, and cannabis accessories as provided in sections
152.0965 and 152.0966.
new text end

new text begin Subd. 3. new text end

new text begin Rights of employers. new text end

new text begin Nothing in this chapter shall be construed to:
new text end

new text begin (1) require an employer to permit or accommodate employees' consumption, possession,
transfer, display, transportation, sale, or cultivation of cannabis or cannabis products in the
workplace or on the employer's property;
new text end

new text begin (2) prevent an employer from adopting a policy that prohibits the consumption of cannabis
or cannabis products in the workplace or to work while under the influence of cannabis; or
new text end

new text begin (3) create a cause of action against an employer who discharges an employee for violating
a policy that restricts or prohibits the consumption of cannabis or cannabis products by
employees.
new text end

new text begin Subd. 4. new text end

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

new text begin (a) Notwithstanding
paragraph (b) or any law to the contrary, an employer may not discipline or discriminate
against an employee or prospective employee because the employee or prospective employee
has metabolites of cannabis in the employee's or prospective employee's blood.
new text end

new text begin (b) Nothing in this chapter prohibits an employer from disciplining, discharging, or
otherwise taking an adverse employment action against an employee for violation of a
workplace drug policy or for working while under the influence of cannabis.
new text end

new text begin Subd. 5. 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 facility, corporation, or any other entity that occupies,
owns, or controls a property from prohibiting or otherwise regulating the possession,
consumption, display, transfer, distribution, sale, transportation, or cultivation of cannabis
or cannabis products on the person's or entity's property.
new text end

new text begin Subd. 6. new text end

new text begin Rights of residential tenants. new text end

new text begin Except as provided in this section, a residential
landlord may not prohibit the possession of cannabis or cannabis products or the consumption
of cannabis or cannabis products by nonsmoking means by a tenant who is 21 years of age
or older unless:
new text end

new text begin (1) the tenant is not leasing the entire residential dwelling or rental unit;
new text end

new text begin (2) the residence is incidental to detention or the provision of medical, geriatric,
educational, counseling, religious, or similar service;
new text end

new text begin (3) the residence is a transitional housing facility; or
new text end

new text begin (4) failing to prohibit the possession or consumption of cannabis or cannabis products
would violate federal law or regulations or cause the landlord to lose a monetary- or
licensing-related benefit under federal law or regulations.
new text end

new text begin Subd. 7. new text end

new text begin Public consumption not authorized. new text end

new text begin Nothing in this chapter authorizes a
person to consume cannabis in a public place.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin By February 1 of each year beginning in 2021, the commissioner shall
submit a report to the legislative committees with jurisdiction over cannabis, public safety,
and taxes on the following:
new text end

new text begin (1) the progress the commissioner is making on processing licenses;
new text end

new text begin (2) an overview of the cannabis and cannabis product market, including but not limited
to the actual and anticipated market demand and market supply;
new text end

new text begin (3) the amounts of revenue generated by the sale of cannabis, cannabis seeds, cannabis
products, and cannabis accessories and the expenses incurred by the commissioner and
other state agencies related to the administration and enforcement of this chapter and related
laws;
new text end

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

new text begin (5) the commissioner's enforcement actions taken against persons licensed under this
chapter for violations of this chapter or the rules adopted under this chapter.
new text end

Sec. 3.

new text begin [340B.04] DUTIES OF COMMISSIONER OF HEALTH.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin The commissioner shall perform the following functions related
to the regulation of cannabis, cannabis products, cannabis accessories, and cannabis
establishments:
new text end

new text begin (1) issue state licenses to qualified cannabis establishments according to this chapter;
new text end

new text begin (2) issue cultivation permits to qualified persons according to this chapter;
new text end

new text begin (3) develop and make available the content of the training course and examination in
section 340B.16, subdivision 6;
new text end

new text begin (4) suspend, restrict, or revoke the license of a cannabis establishment, or take other
corrective action if a cannabis establishment violates this chapter or rules adopted under
this chapter;
new text end

new text begin (5) adopt rules to implement this chapter according to section 340B.05;
new text end

new text begin (6) impose any penalty authorized by this chapter or rules adopted under this chapter;
new text end

new text begin (7) assess fees according to this chapter; and
new text end

new text begin (8) administer and enforce this chapter and rules adopted under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Interagency agreements. new text end

new text begin The commissioner may enter into one or more
interagency agreements with other state agencies for technical services or services related
to the regulatory, enforcement, or inspection duties in this chapter or rules adopted under
this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Conflicts of interest. new text end

new text begin The commissioner or any person employed by the
Department of Health assigned to administer or implement this chapter shall not have a
direct or indirect financial interest in any cannabis establishment.
new text end

Sec. 4.

new text begin [340B.05] RULEMAKING.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin No later than January 1, 2021, the commissioner shall adopt rules
necessary to implement this chapter. In adopting rules under this chapter, the commissioner
shall apply public health standards and practices to protect public health. The rules adopted
by the commissioner under this section must provide for retail cannabis stores to begin the
sale of cannabis, cannabis products, and cannabis accessories by January 1, 2022.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The rules adopted by the commissioner must address the following:
new text end

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

new text begin (2) procedures designed to prevent the sale or diversion of cannabis and cannabis products
to persons under the age of 21;
new text end

new text begin (3) procedures for the delivery and transportation of cannabis and cannabis products
between cannabis establishments;
new text end

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

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

new text begin (6) security requirements for cannabis establishments, including requirements for
protection of each location by a fully operational security alarm system, facility access
controls, a perimeter intrusion detection system, and a personnel identification system;
new text end

new text begin (7) requirements for the storage of cannabis and cannabis products by cannabis
establishments;
new text end

new text begin (8) employment and training requirements, including creating an identification badge
for each employee or agent of cannabis establishments;
new text end

new text begin (9) restrictions on advertising, marketing, and signage, including marketing restrictions
to prevent persons under the age of 21 from being targeted for the sale of cannabis or
cannabis products;
new text end

new text begin (10) restrictions on the display of cannabis and cannabis products to ensure that cannabis
and cannabis products are not displayed in a manner that is visible to the general public
from a public right-of-way;
new text end

new text begin (11) labeling requirements for cannabis and cannabis products sold or distributed by a
cannabis establishment;
new text end

new text begin (12) requirements for the cultivation of cannabis by cannabis cultivation facilities. In
adopting 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 (13) requirements for the testing of cannabis and cannabis products by and research
practices of cannabis testing facilities, including testing and research standards, quality
control analysis, equipment certification and calibration, and chemical identification;
new text end

new text begin (14) standards for the operation of cannabis testing facilities, including requirements for
equipment and qualifications for personnel;
new text end

new text begin (15) record-keeping and audit requirements for cannabis establishments. In adopting
rules under this clause, the commissioner may consult with the commissioner of revenue;
new text end

new text begin (16) safety standards for edible cannabis 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 (17) any other requirements or procedures necessary to administer this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Advisory council of public health professionals. new text end

new text begin (a) The commissioner shall
appoint members to an advisory council of public health professionals to advise the
commissioner on the adoption of rules under this section according to public health standards
and practices and to analyze and evaluate the social and economic impacts of this chapter.
Advisory council membership shall include public health professionals and health care
providers. Cannabis establishment owners, agents, and employees are not eligible to serve
on the advisory council.
new text end

new text begin (b) The advisory council shall be organized and administered under section 15.059.
new text end

Sec. 5.

new text begin [340B.06] CANNABIS ESTABLISHMENTS; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin (a) No person may operate a cannabis establishment
in this state without first obtaining the proper license from the commissioner to perform the
activities and operations authorized by this chapter.
new text end

new text begin (b) Every cannabis establishment license must:
new text end

new text begin (1) be issued in the name of the applicant;
new text end

new text begin (2) specify the location of the cannabis establishment; and
new text end

new text begin (3) be used only by the holder of the license.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A license to operate a cannabis establishment shall only be
issued to a person who:
new text end

new text begin (1) has been a resident of this state for at least two years prior to the date of the application
or has been domiciled in Minnesota for at least 24 months during the previous seven years;
new text end

new text begin (2) is 21 years of age or older;
new text end

new text begin (3) has not had a license issued under this chapter revoked within five years prior to the
date of the license application; and
new text end

new text begin (4) is not delinquent on any local, state, or federal tax.
new text end

new text begin (b) The requirements described in paragraph (a), clauses (2) to (4), apply to all owners,
partners, officers, directors, or agents of any corporation applying for a license under this
chapter. The requirement described in paragraph (a), clause (1), must be met by at least 60
percent of the owners, partners, officers, directors, or agents of any corporation applying
for a license under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Application; fee. new text end

new text begin An initial application for a license under this chapter must
be submitted to the commissioner on a form the commissioner prescribes and must be
accompanied by a $1,000 application fee. If an application is denied, the application fee
shall be retained by the commissioner to cover the administrative costs related to reviewing
the application.
new text end

new text begin Subd. 4. new text end

new text begin Period of license. new text end

new text begin (a) Licenses issued under this chapter are valid for one year,
except that to coordinate expiration dates, initial licenses may be prorated.
new text end

new text begin (b) To renew a cannabis establishment license, a licensee must submit a renewal
application as prescribed by the commissioner and the applicable fee specified under
subdivision 9.
new text end

new text begin Subd. 5. new text end

new text begin Separate license required; limitations. new text end

new text begin (a) A separate license is required for
each class of license and the license holder must perform the operations authorized under
each specified license issued.
new text end

new text begin (b) A separate license is required for each premises located in the state where the
operations of a cannabis establishment occur.
new text end

new text begin (c) No person shall hold more than the following number of licenses at any one time:
new text end

new text begin (1) cannabis cultivation facility, one license;
new text end

new text begin (2) cannabis product manufacturing facility, one license; and
new text end

new text begin (3) retail cannabis store, five licenses, with a limit of two locations per city or town.
new text end

new text begin (d) A person issued a cannabis testing facility license must not hold another license
under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Transferability. new text end

new text begin A license issued under this chapter is not transferable from
one person to another or from one premises to another.
new text end

new text begin Subd. 7. new text end

new text begin Application process. new text end

new text begin (a) Each application for an annual license to operate a
cannabis establishment shall be submitted to the commissioner with the application fee and
applicable fee specified in subdivision 9.
new text end

new text begin (b) The commissioner shall begin accepting applications on October 1, 2021.
new text end

new text begin (c) The commissioner shall issue an annual license to the applicant within 45 days after
receipt of an application unless the commissioner finds the applicant is not in compliance
with this chapter or the rules adopted under this chapter. Upon denial of an application for
a license to operate a cannabis establishment, the commissioner shall notify the applicant
in writing of the specific reason for denial. An applicant may appeal the commissioner's
denial of the license in a contested case proceeding under chapter 14.
new text end

new text begin Subd. 8. new text end

new text begin Inspection of premises. new text end

new text begin For the purpose of considering an initial cannabis
establishment license application or for the renewal of a cannabis establishment license, the
commissioner may inspect the cannabis establishment premises and may inquire into all
matters in connection with the construction and operation of the cannabis establishment.
new text end

new text begin Subd. 9. new text end

new text begin Fees. new text end

new text begin (a) The annual fees for licenses under this chapter are as follows:
new text end

new text begin (1) for a cannabis cultivation facility, $.......;
new text end

new text begin (2) for a cannabis product manufacturing facility, $.......;
new text end

new text begin (3) for a retail cannabis store, $.......; and
new text end

new text begin (4) for a cannabis testing facility, $.......
new text end

new text begin (b) The commissioner may structure fees to allow for a tiered licensing system based
on the size or gross sales of the establishment.
new text end

new text begin (c) The commissioner may annually adjust the fee amount in paragraph (a) to cover the
cost of administering the licensing program.
new text end

new text begin (d) The fees collected under this subdivision shall be deposited by the commissioner in
the state government special revenue fund.
new text end

new text begin Subd. 10. new text end

new text begin Employees. new text end

new text begin A cannabis establishment is prohibited from employing any
person:
new text end

new text begin (1) under 21 years of age; or
new text end

new text begin (2) who has been convicted of a disqualifying felony offense.
new text end

Sec. 6.

new text begin [340B.07] RETAIL CANNABIS STORE; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin No person shall operate a retail cannabis store without a license
issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis and cannabis products; source and transactions. new text end

new text begin A retail cannabis
store may only purchase cannabis or cannabis products from a cannabis cultivation facility
or cannabis product manufacturing facility licensed under this chapter. A purchase transaction
between a retail cannabis store and a cannabis cultivation facility or cannabis product
manufacturing facility must only occur on licensed premises.
new text end

new text begin Subd. 3. new text end

new text begin Cannabis and cannabis product tracking. new text end

new text begin A retail cannabis store must track
all cannabis and cannabis products from the point of transfer from a cannabis product
manufacturing facility to the point of sale.
new text end

new text begin Subd. 4. new text end

new text begin Allowed sale. new text end

new text begin A retail cannabis store may only sell cannabis or cannabis products
to a person who is 21 years of age or older and has a valid government-issued identification
card showing that the person is 21 years of age or older.
new text end

new text begin Subd. 5. new text end

new text begin Identification verification. new text end

new text begin (a) Before initiating a sale under this chapter, an
employee of the retail cannabis store making the sale must verify that the purchaser has
valid proof of age as described in section 340B.17, subdivision 6, showing the purchaser is
21 years of age or older. If a person under the age of 21 presents a fraudulent proof of age,
any action reasonably relying on the fraudulent proof of age shall not be grounds for the
revocation or suspension of any license issued under this chapter.
new text end

new text begin (b) A consumer is not required to provide a retail cannabis store with personal information
other than valid proof of age to determine the consumer's age in order to purchase cannabis
or cannabis products.
new text end

new text begin (c) A retail cannabis store is not required to acquire and record personal information
about consumers other than information typically acquired in a financial transaction
conducted at an on-sale liquor establishment.
new text end

new text begin Subd. 6. new text end

new text begin Packaging; labels. new text end

new text begin All cannabis and cannabis products sold in a retail cannabis
store must be packaged and labeled as required by this chapter and any rules adopted under
this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Allowable sales. new text end

new text begin A retail cannabis store must not sell products or services other
than cannabis, cannabis products, and cannabis accessories.
new text end

new text begin Subd. 8. new text end

new text begin Cannabis consumption on premises. new text end

new text begin Consumption of any cannabis or cannabis
product on the retail cannabis store's licensed premises is prohibited.
new text end

new text begin Subd. 9. new text end

new text begin Deliveries. new text end

new text begin A retail cannabis store is prohibited from delivering, arranging for
the delivery of, or shipping cannabis, cannabis products, or cannabis accessories to an
individual.
new text end

new text begin Subd. 10. new text end

new text begin Employee training. new text end

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

new text begin (1) the proper handling of cannabis and cannabis products;
new text end

new text begin (2) security protocol for retail cannabis stores;
new text end

new text begin (3) inventory accountability procedures; and
new text end

new text begin (4) procedures for verifying the age of consumers in order to prevent sales to persons
under 21 years of age.
new text end

Sec. 7.

new text begin [340B.08] CANNABIS CULTIVATION FACILITY; REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin No person shall operate as a cannabis cultivation facility without
a license issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Tracking of cannabis. new text end

new text begin A cannabis cultivation facility must track the cannabis
that is cultivated from seed or immature plant to the wholesale purchase.
new text end

new text begin Subd. 3. new text end

new text begin Authorized sales. new text end

new text begin A cannabis cultivation facility must only sell cannabis at
wholesale to cannabis product manufacturing facilities, other cannabis cultivation facilities,
or retail cannabis stores.
new text end

Sec. 8.

new text begin [340B.10] CANNABIS PRODUCT MANUFACTURING FACILITY;
REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin No person shall operate a cannabis product manufacturing
facility without a license issued by the commissioner under the authority of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis production; tracking. new text end

new text begin (a) A cannabis product manufacturing facility
may only purchase cannabis from a licensed cannabis cultivation facility or produce its own
cannabis if it holds a cannabis cultivation facility license.
new text end

new text begin (b) A cannabis product manufacturing facility must track all cannabis that it processes
from the point the cannabis is delivered to the cannabis product manufacturing facility from
a cannabis cultivation facility or processed by the cannabis product manufacturing facility
to the point of transfer to a retail cannabis store.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin (a) A cannabis product manufacturing facility must not:
new text end

new text begin (1) add any cannabis to a food product if the manufacturer of the food product holds a
trademark to the food product's name, except that a cannabis product manufacturing facility
may use a trademarked food product if the cannabis product manufacturing facility uses the
food product as a component or as part of a recipe and if the cannabis product manufacturing
facility does not state or advertise to the consumer that the final cannabis-infused product
contains a trademarked food product; or
new text end

new text begin (2) intentionally or knowingly label or package a cannabis product in a manner that
would cause a reasonable consumer confusion as to whether the cannabis product is a
trademarked food product.
new text end

new text begin (b) Cannabis or cannabis products must not be consumed on the premises of a cannabis
product manufacturing facility.
new text end

new text begin Subd. 4. new text end

new text begin Processed on licensed premises. new text end

new text begin (a) Cannabis and cannabis products must be
prepared on the premises of the cannabis product manufacturing facility that is used
exclusively for the processing, manufacturing, or preparation of cannabis or cannabis
products intended for sale and be prepared using equipment that is used exclusively for the
processing, manufacturing, or preparation of cannabis or cannabis products.
new text end

new text begin (b) The premises of the cannabis product manufacturing facility in which cannabis or
cannabis products are processed, manufactured, or prepared must meet all sanitary conditions
established by the commissioner under this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Labeling; packaging. new text end

new text begin (a) A cannabis product manufacturing facility must affix
a label to all cannabis and cannabis products that the cannabis product manufacturing facility
transfers to a retail cannabis store that meets the labeling requirements of this chapter.
new text end

new text begin (b) Cannabis products processed by a cannabis product manufacturing facility must be
clearly distinguishable from commercially available products not containing cannabis.
new text end

Sec. 9.

new text begin [340B.11] CANNABIS TESTING FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin No person shall perform testing or research on cannabis or
cannabis products for a cannabis cultivation facility, cannabis product manufacturing facility,
or retail cannabis store without a license issued by the commissioner under the authority of
this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Conflicts of interest. new text end

new text begin A person who has a direct or indirect financial interest
in a cannabis testing facility must not have a direct or indirect financial interest in a cannabis
cultivation facility, cannabis product manufacturing facility, or retail cannabis store.
new text end

Sec. 10.

new text begin [340B.12] CANNABIS TESTING.
new text end

new text begin Subdivision 1. new text end

new text begin Testing required of cannabis and cannabis products. new text end

new text begin On a schedule
determined by the commissioner, every cannabis cultivation facility and cannabis product
manufacturing facility must submit representative samples of cannabis and cannabis products
produced or processed by the cannabis cultivation facility or cannabis product manufacturing
facility to a cannabis testing facility in order to certify that the cannabis or cannabis products
comply with the standards prescribed by the commissioner. At a minimum, the testing must
ensure that the cannabis or cannabis products do not contain contaminants that are injurious
to the health of consumers and are correctly labeled to indicate the delta-9
tetrahydrocannabinol and cannabidiol content of the cannabis or cannabis product. The
testing must include analysis for residual solvents, poisons, toxins, harmful chemicals,
pathogenic mold, fungus, banned or excessive pesticide residue, heavy metal, and other
contaminants. The cannabis testing facility must destroy or return to the cannabis cultivation
facility or cannabis product manufacturing facility any part of the sample that remains after
testing.
new text end

new text begin Subd. 2. new text end

new text begin Submission of testing results. new text end

new text begin Cannabis cultivation facilities and cannabis
product manufacturing facilities must submit the results of the testing required by this section
to the commissioner in the manner prescribed by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin When lot must be destroyed. new text end

new text begin If a representative sample inspected and tested
under this section does not meet the standards prescribed by the commissioner, the
commissioner shall take necessary action to ensure that the entire lot from which the sample
was taken is destroyed. The commissioner shall adopt rules to determine lots and lot numbers
for purposes of this section.
new text end

new text begin Subd. 4. new text end

new text begin Sale of contaminated lots prohibited. new text end

new text begin A cannabis cultivation facility or
cannabis product manufacturing facility must not sell cannabis or cannabis products that
test positive for any contaminant identified under subdivision 1 if the contaminants or level
of contaminants are identified by a cannabis testing facility as potentially unsafe to the
consumer.
new text end

Sec. 11.

new text begin [340B.13] SEED-TO-SALE TRACKING SYSTEM.
new text end

new text begin The commissioner shall develop and maintain a seed-to-sale tracking system that tracks
cannabis produced by a cannabis cultivation facility from either the seed or immature plant
stage to the processing stage until the cannabis is sold to a consumer as cannabis or cannabis
product at a retail cannabis store. The tracking system developed by the commissioner must
ensure that no cannabis produced or processed by a cannabis cultivation facility or cannabis
product manufacturing facility is sold except by a retail cannabis store.
new text end

Sec. 12.

new text begin [340B.14] RECORDS; AUDITS.
new text end

new text begin (a) Each cannabis establishment must keep a complete set of books and records necessary
to show the business transactions of the cannabis establishment for the current tax year and
the three preceding tax years. The records must be kept on the premises described in the
cannabis establishment's license and in a manner that ensures permanency and accessibility
for inspection at reasonable hours by the commissioner or the commissioner's designee.
The commissioner shall prescribe reasonable and uniform methods of keeping records and
shall provide all necessary forms to cannabis establishments.
new text end

new text begin (b) The commissioner may require a cannabis establishment to furnish any information
the commissioner considers necessary for the proper administration and enforcement of this
chapter and may require an audit of the books and records on any occasion that the
commissioner considers necessary. Any accounting required by the commissioner shall be
completed by an auditor selected by the commissioner at the expense of the cannabis
establishment.
new text end

new text begin (c) The premises of each cannabis establishment, including any place where a cannabis
establishment grows, stores, cultivates, distributes, or processes cannabis, is subject to
inspection or investigation by the commissioner or the commissioner's designee during
regular business hours and at other times of apparent activity. A cannabis establishment
must provide access during business hours for examination of any inventory or books and
records required to be kept by the cannabis establishment. If any part of a cannabis
establishment's premises contains a locked area, upon demand by the commissioner or the
commissioner's designee, the locked area must be made available without delay to the
commissioner or the commissioner's designee.
new text end

Sec. 13.

new text begin [340B.15] PACKAGE AND LABELING REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Retail cannabis store. new text end

new text begin Prior to the sale of cannabis or a cannabis product,
a retail cannabis store must ensure that cannabis or cannabis products:
new text end

new text begin (1) are properly packaged in compliance with the United States Poison Prevention
Packing Act regarding child-resistant packaging;
new text end

new text begin (2) do not include any false or misleading statements regarding health or physical benefits;
new text end

new text begin (3) are packaged in plain, opaque, tamperproof, and childproof containers without
depictions of the product, cartoons, or images other than the cannabis retail store's logo or
business name;
new text end

new text begin (4) are packaged in containers that are recyclable or reusable, to the extent such containers
are available; and
new text end

new text begin (5) include a symbol or other easily recognizable mark indicating that the package
contains cannabis.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis product manufacturing facility. new text end

new text begin A cannabis product manufacturing
facility must affix a label to all cannabis and cannabis products that the cannabis
manufacturing facility transfers to retail cannabis stores. The label must:
new text end

new text begin (1) include the lot number of the cannabis or cannabis product;
new text end

new text begin (2) specify the ingredients and the concentration of tetrahydrocannabinols in the cannabis
or cannabis product;
new text end

new text begin (3) specify the cannabinoid profile of the cannabis or cannabis product;
new text end

new text begin (4) include the license number of the cannabis cultivation facility that grew or produced
the cannabis;
new text end

new text begin (5) include the license number and name of the cannabis product manufacturing facility
that processed the cannabis into cannabis or a cannabis product;
new text end

new text begin (6) include a statement that cannabis may not be legally consumed by persons under the
age of 21;
new text end

new text begin (7) include, for cannabis products, the cannabinoid profile per serving and the number
of servings per package of the cannabis product;
new text end

new text begin (8) include a list of ingredients for cannabis products; and
new text end

new text begin (9) include a universal symbol indicating the package contains cannabis.
new text end

Sec. 14.

new text begin [340B.16] PERMIT TO CULTIVATE CANNABIS FOR PERSONAL
CONSUMPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Cultivation permit required. new text end

new text begin In order for a person to cultivate cannabis
for personal consumption under section 340B.03 and not for sale to others, a person must
hold a cultivation permit issued by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Application; action on application. new text end

new text begin (a) An applicant for a cultivation permit
must submit to the commissioner:
new text end

new text begin (1) a completed permit application on forms provided by the commissioner. The permit
application must include:
new text end

new text begin (i) the applicant's name, address, contact information, and date of birth; and
new text end

new text begin (ii) information on the physical location at which the applicant plans to cultivate cannabis
for personal consumption, and steps the applicant will take to ensure that cannabis under
cultivation is not accessible to persons under age 21;
new text end

new text begin (2) a cultivation permit fee of $.......;
new text end

new text begin (3) an accurate photocopy of the applicant's current driver's license or identification card
issued by the state or a tribal government, or an accurate photocopy of the photo page of
the applicant's passport, in order to verify that the applicant is 21 years of age or older;
new text end

new text begin (4) evidence of having completed the training course and passed the examination specified
in subdivision 6 within 90 days prior to submitting the application; and
new text end

new text begin (5) a signed statement by the applicant that the information in the application is true and
correct to the best of the applicant's knowledge and belief.
new text end

new text begin (b) The commissioner shall begin accepting cultivation permit applications no later than
December 1, 2019, and shall begin issuing cultivation permits no later than January 1, 2020.
The commissioner shall approve or deny an application for a cultivation permit within 30
days after receiving the items listed in paragraph (a). If a person's application for a permit
is approved, the commissioner shall assign a cultivation permit number to the person and
shall issue to the person a permit that lists the person's name and date of birth, the cultivation
permit number, the physical location at which the person is authorized to cultivate cannabis
for personal use, and the expiration date of the permit. The commissioner shall provide
written notice to a person specifying the reasons for denial if the person's application is
denied. An application for a cultivation permit shall be denied only if the applicant:
new text end

new text begin (1) did not submit all of the items listed in paragraph (a);
new text end

new text begin (2) submitted false information; or
new text end

new text begin (3) is under age 21.
new text end

new text begin (c) Denial of a cultivation permit is considered a final decision of the commissioner and
is subject to judicial review under chapter 14.
new text end

new text begin Subd. 3. new text end

new text begin Notification to commissioner. new text end

new text begin A person holding a cultivation permit must
notify the commissioner of a permanent change in name, address, contact information, or
the physical location at which the person is cultivating cannabis within 30 days after the
change takes place.
new text end

new text begin Subd. 4. new text end

new text begin Permit expiration and renewal. new text end

new text begin A cultivation permit issued under this section
is valid for two years and expires two years after the date of issuance. No earlier than 90
days before the permit expires and no later than the expiration date of the permit, a person
holding a cultivation permit may renew the permit by submitting to the commissioner the
items listed in subdivision 2, paragraph (a), clauses (1) and (5), and a cultivation permit
renewal fee of $....... A person holding a cultivation permit who seeks to renew the permit
after the expiration date of the permit, but less than 30 days after the expiration date, may
renew the permit by submitting to the commissioner the items listed in subdivision 2,
paragraph (a), clauses (1) and (5); a cultivation permit renewal fee of $.......; and a late fee
of $....... A person holding a cultivation permit who seeks to renew the permit 30 days or
more after the expiration date of the permit must submit to the commissioner the items listed
in subdivision 2, paragraph (a).
new text end

new text begin Subd. 5. new text end

new text begin Fees. new text end

new text begin Cultivation permit fees, cultivation permit renewal fees, and late fees are
nonrefundable. The commissioner shall deposit cultivation permit fees, cultivation permit
renewal fees, and late fees collected under this section into the state government special
revenue fund. Fees collected under this section are appropriated to the commissioner for
purposes of administering this section.
new text end

new text begin Subd. 6. new text end

new text begin Training course and examination on laws regarding cannabis cultivation
and related cannabis laws.
new text end

new text begin (a) In order to obtain a cultivation permit, a person must have
completed a training course and passed a written or online examination on laws regarding
cannabis cultivation and related cannabis laws. The commissioner must develop the content
of the training course and examination and must make the training course and examination
available to the public in an online format. A cannabis establishment may offer an in-person
training course and examination that includes at least the content developed by the
commissioner.
new text end

new text begin (b) A training course required by this subdivision must provide information on state
laws governing the personal possession and consumption of cannabis, including information
on:
new text end

new text begin (1) illegal conduct regarding the sale, transfer, or consumption of cannabis, including
providing or selling cannabis to persons under age 21 and operating a motor vehicle, aircraft,
train, or motorboat while under the influence of cannabis;
new text end

new text begin (2) limits in state law on the total number of cannabis plants and the number of mature
plants that a person may cultivate at one time;
new text end

new text begin (3) requirements regarding where cannabis may be cultivated, and steps persons
cultivating cannabis must take to ensure cannabis being cultivated is not accessible to persons
under age 21;
new text end

new text begin (4) locations where cannabis consumption is prohibited under state law and locations
where cannabis consumption may be limited by an entity that controls the property; and
new text end

new text begin (5) the authority of a local government to adopt ordinances or regulations governing the
time, place, and manner of cannabis cultivation or the consumption of cannabis or cannabis
products.
new text end

new text begin (c) The examination required by this subdivision must test knowledge of the information
listed in paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin Use of permit. new text end

new text begin A person holding a cultivation permit must maintain the permit
at the physical location at which the person cultivates cannabis and must provide the permit
upon lawful demand of a peace officer, as defined in section 626.84, subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Permit suspension or revocation. new text end

new text begin The commissioner shall establish grounds
and procedures for revoking or suspending a cultivation permit.
new text end

Sec. 15.

new text begin [340B.17] PERSONS UNDER 21; ILLEGAL ACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Consumption. new text end

new text begin It is a misdemeanor for a retail cannabis store to permit
any person under the age of 21 years to consume cannabis or cannabis products on the
retailer's premises. As used in this subdivision, "consume" includes the physical condition
of having consumed cannabis or a cannabis product.
new text end

new text begin Subd. 2. new text end

new text begin Purchasing. new text end

new text begin (a) It is a petty misdemeanor for any person under the age of 21
years to purchase or attempt to purchase cannabis or a cannabis product from a retail cannabis
store unless under the supervision of a responsible person over the age of 21 for training,
education, or research purposes. Prior notification of the licensing authority is required
unless the supervised cannabis or cannabis product purchase attempt is for professional
research conducted by postsecondary educational institutions or state, county, or local health
departments.
new text end

new text begin (b) It is a misdemeanor for any person to induce a person under the age of 21 years to
purchase or procure cannabis or a cannabis product from a retail cannabis store, or to lend
to or knowingly permit the use of the person's driver's license, permit, Minnesota
identification card, or other form of identification by a person under the age of 21 years for
the purpose of purchasing or attempting to purchase cannabis or a cannabis product from
a retail cannabis store.
new text end

new text begin Subd. 3. new text end

new text begin Entering licensed premises. new text end

new text begin It is a petty misdemeanor for a person under the
age of 21 years to enter a retail cannabis store for the purpose of purchasing cannabis or a
cannabis product.
new text end

new text begin Subd. 4. new text end

new text begin Misrepresentation of age. new text end

new text begin It is a petty misdemeanor for a person under the
age of 21 years to claim to be 21 years old or older for the purpose of purchasing cannabis
or cannabis products from a retail cannabis store.
new text end

new text begin Subd. 5. new text end

new text begin Attainment of age. new text end

new text begin With respect to purchasing, possessing, consuming, selling,
furnishing, and serving cannabis or cannabis products, a person is not 21 years of age until
8:00 a.m. on the day of the person's 21st birthday.
new text end

new text begin Subd. 6. new text end

new text begin Proof of age; defense; seizure of false identification. new text end

new text begin (a) Proof of age for
purchasing or consuming cannabis or cannabis products may be established only by one of
the following:
new text end

new text begin (1) a valid driver's license or identification card issued by Minnesota, another state, a
tribal government, or a province of Canada, and including the photograph and date of birth
of the licensed person;
new text end

new text begin (2) a valid military identification card issued by the United States Department of Defense;
new text end

new text begin (3) a valid U.S. passport;
new text end

new text begin (4) a valid instructional permit issued under section 171.05 to a person of legal age to
purchase cannabis or cannabis products, and including a photograph and the date of birth
of the person issued the permit; or
new text end

new text begin (5) in the case of a foreign national, a valid passport.
new text end

new text begin (b) In a prosecution under subdivision 1, it is a defense for the defendant to prove by a
preponderance of the evidence that the defendant reasonably and in good faith relied upon
representations of proof of age authorized in paragraph (a).
new text end

new text begin (c) A retail cannabis store may seize a form of identification listed under paragraph (a)
if the retail cannabis store has reasonable grounds to believe that the form of identification
has been altered or falsified or is being used to violate any law. A retail cannabis store that
seizes a form of identification as authorized under this paragraph must deliver it to a law
enforcement agency within 24 hours of seizure.
new text end

Sec. 16.

new text begin [340B.18] LOCAL REGULATIONS.
new text end

new text begin (a) Except as provided in paragraph (b), a local government may adopt ordinances or
regulations to prohibit the establishment of retail cannabis stores or cannabis product
manufacturing facilities in the jurisdiction of local government, 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
the ordinances or regulations are necessary to protect the public health. A local government
may adopt ordinances or regulations:
new text end

new text begin (1) prohibiting the establishment of retail cannabis stores or cannabis product
manufacturing facilities in the jurisdiction of the local government;
new text end

new text begin (2) governing the time, place, and manner of the cultivation of cannabis or consumption
or use of cannabis, cannabis products, or cannabis accessories;
new text end

new text begin (3) governing the time, place, and manner of the operation of cannabis establishments
and the number of cannabis establishments operating within the jurisdiction of the local
government;
new text end

new text begin (4) establishing civil penalties for a violation of an ordinance or regulation related to
the cultivation of cannabis, consumption of cannabis or cannabis products, or operation of
cannabis establishments; and
new text end

new text begin (5) establishing any other requirements or procedures necessary to regulate the cultivation,
processing, sale, use, or consumption of cannabis and cannabis 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 cultivation, possession, use, or consumption of cannabis, cannabis
products, or cannabis accessories as authorized under this chapter and chapter 152.
new text end

Sec. 17.

new text begin [340B.19] CONTRACTS.
new text end

new text begin A contract related to the operation of a cannabis establishment is enforceable. No contract
entered into by a cannabis establishment or an employee or agent of a cannabis establishment,
or by an entity that allows property to be used by a cannabis establishment or an employee
or agent of a cannabis establishment, shall be unenforceable or void on the basis that
cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling,
possessing, or consuming cannabis is prohibited under federal law.
new text end

Sec. 18.

new text begin [340B.25] CANNABIS ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin There is created in the state treasury a cannabis
account in the special revenue fund for deposit of all revenue collected from the retail sales
of cannabis, cannabis products, and cannabis accessories under chapter 297A.
new text end

new text begin Subd. 2. new text end

new text begin Cannabis account appropriations. new text end

new text begin (a) The amount necessary to administer
the tax under chapter 297A is appropriated from the cannabis account in the special revenue
fund to the commissioner of revenue.
new text end

new text begin (b) Of the funds remaining in the cannabis account after the appropriation required in
paragraph (a), $10,000,000 each fiscal year is appropriated to the commissioner of
employment and economic development to be distributed as grants for business development.
These grants must be awarded to small businesses, as defined under section 645.445, that
either:
new text end

new text begin (1) employ at least one person with a criminal record; or
new text end

new text begin (2) are located in a historically disadvantaged area, defined as a census tract that has a
poverty rate of at least 20 percent as reported in the most recently completed decennial
census published by the United States Bureau of the Census.
new text end

new text begin (c) Of the funds remaining in the cannabis account after the appropriation required in
paragraph (b), the following amounts are appropriated or transferred each fiscal year as
follows:
new text end

new text begin (1) ten percent is appropriated to the commissioner of human services for mental health
services under chapter 245;
new text end

new text begin (2) ten percent is appropriated to the commissioner of public safety to train peace officers
on how to recognize cannabis impairment;
new text end

new text begin (3) ten percent is appropriated to the commissioner of health to conduct research on the
public health impacts of consuming cannabis and cannabis products;
new text end

new text begin (4) ten percent is appropriated to the commissioner of health for the creation,
implementation, operation, and management of a cannabis education and public health
program that contains:
new text end

new text begin (i) a public health hotline that provides referrals to substance abuse treatment providers,
utilizes evidence-based or research-based public health approaches to minimize any harms
associated with cannabis consumption;
new text end

new text begin (ii) a grant program for community health boards, tribal governments, and other local
community agencies to support development and implementation of coordinated intervention
strategies to prevent and reduce consumption of cannabis and cannabis products by youth;
and
new text end

new text begin (iii) media-based education campaigns across television, Internet, radio, print, and
out-of-home advertising, separately targeting youth and adults, that provide medically and
scientifically accurate information about the health and safety risks posed by the consumption
of cannabis and cannabis products; and
new text end

new text begin (5) 60 percent shall be transferred to the general fund.
new text end

Sec. 19. new text beginAPPROPRIATION.
new text end

new text begin $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the state
government special revenue fund to the commissioner of health to implement Minnesota
Statutes, chapter 340B.
new text end

ARTICLE 2

TAXATION

Section 1.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:


new text begin Subd. 27. new text end

new text begin Disallowed section 280E expenses; cannabis manufacturers and cannabis
establishments.
new text end

new text begin The amount of expenses disallowed for federal income tax purposes under
section 280E of the Internal Revenue Code as amended through March 31, 2018, is a
subtraction. The subtraction applies to:
new text end

new text begin (1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7,
related to the business of medical cannabis under sections 152.21 to 152.37; and
new text end

new text begin (2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related
to the business of operating as a cannabis establishment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Disallowed section 280E expenses; cannabis manufacturers and cannabis
establishments.
new text end

new text begin The amount of expenses disallowed for federal income tax purposes under
section 280E of the Internal Revenue Code as amended through March 31, 2018, is a
subtraction. The subtraction applies to:
new text end

new text begin (1) a medical cannabis manufacturer, as defined under section 152.22, subdivision 7,
related to the business of medical cannabis under sections 152.21 to 152.37; and
new text end

new text begin (2) a cannabis establishment, as defined under section 340B.01, subdivision 5, related
to the business of operating as a cannabis establishment.
new text end

Sec. 3.

Minnesota Statutes 2018, 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 cannabis, cannabis products, or cannabis accessories by a retail cannabis
store is a retail sale and is not considered a sale of property for resale.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 4.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 59. new text end

new text begin Cannabis. new text end

new text begin "Cannabis" has the meaning given in section 340B.01, subdivision
2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 5.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 60. new text end

new text begin Cannabis accessory. new text end

new text begin "Cannabis accessory" has the meaning given in section
340B.01, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 6.

Minnesota Statutes 2018, section 297A.61, is amended by adding a subdivision to
read:


new text begin Subd. 61. new text end

new text begin Cannabis product. new text end

new text begin "Cannabis product" has the meaning given in section
340B.01, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 7.

Minnesota Statutes 2018, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

Generally.

Except as otherwise provided in subdivision 3new text begin or 3anew 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
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 8.

Minnesota Statutes 2018, section 297A.62, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Cannabis rate. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2021.
new text end

Sec. 9.

new text begin [297A.9935] LOCAL CANNABIS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding section 477A.016 or any other law, a
statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the governing board of the town at the annual town meeting, or at a special town
meeting, impose a tax of up to ... percent on the gross receipts from the retail sale of cannabis,
cannabis products, or cannabis accessories.
new text end

new text begin Subd. 2. new text end

new text begin Joint powers agreement. new text end

new text begin Any statutory or home rule charter city, town, or
county when the county board is acting as a town board with respect to an unorganized
territory, may enter into a joint exercise of powers agreement pursuant to section 471.59
for the purpose of imposing the tax and disposing of its proceeds pursuant to this section.
new text end

new text begin Subd. 3. new text end

new text begin Collection. new text end

new text begin The statutory or home rule charter city may agree with the
commissioner of revenue that a tax imposed pursuant to this section shall be collected by
the commissioner together with the tax imposed by this chapter, and subject to the same
interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
remitted to the city.
new text end

ARTICLE 3

CLEAN INDOOR AIR ACT

Section 1.

Minnesota Statutes 2018, 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 beginor new text endpipedeleted text begin,deleted text endnew text begin; any lighted cannabis;new text end or any other lighted tobacco new text beginproduct, cannabis
product,
new text endor plant product. Smoking also includesnew text begin: (1)new text end carrying a lighted cigar, cigarette, new text beginor
new text end pipedeleted text begin,deleted text endnew text begin; any lighted cannabis;new text end or any other lighted tobacco new text beginproduct, cannabis product, new text endor plant
product intended for inhalationnew text begin; and (2) inhaling or exhaling vapor from or any other use
of an electronic delivery device or an electronic cannabis delivery device
new text end.

Sec. 2.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Cannabis. new text end

new text begin "Cannabis" has the meaning given in section 340B.01, subdivision
2.
new text end

Sec. 3.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 7. new text end

new text begin Cannabis product. new text end

new text begin "Cannabis product" has the meaning given in section
340B.01, subdivision 6.
new text end

Sec. 4.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Electronic cannabis delivery device. new text end

new text begin "Electronic cannabis delivery device"
means any product containing or delivering cannabis or cannabis derivatives that can be
used by a person to simulate smoking in the delivery of cannabis or cannabis derivatives
through inhalation of vapor from the product. Electronic cannabis delivery device includes
any component part of a product, whether or not marketed or sold separately.
new text end

Sec. 5.

Minnesota Statutes 2018, section 144.413, is amended by adding a subdivision to
read:


new text begin Subd. 9. 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.
new text end

Sec. 6.

Minnesota Statutes 2018, section 144.414, subdivision 2, is amended to read:


Subd. 2.

Day care premises.

deleted text begin(a)deleted text end Smoking is prohibited in a day care center licensed
under Minnesota Rules, parts 9503.0005 to 9503.0170, or in a family home or in a group
family day care provider home licensed under Minnesota Rules, parts 9502.0300 to
9502.0445, during its hours of operation. The proprietor of a family home or group family
day care provider must disclose to parents or guardians of children cared for on the premises
if the proprietor permits smoking outside of its hours of operation. Disclosure must include
posting on the premises a conspicuous written notice and orally informing parents or
guardians.

deleted text begin (b) For purposes of this subdivision, the definition of smoking includes the use of
electronic cigarettes, including the inhaling and exhaling of vapor from any electronic
delivery device as defined in section 609.685, subdivision 1.
deleted text end

Sec. 7.

Minnesota Statutes 2018, section 144.414, subdivision 3, is amended to read:


Subd. 3.

Health care facilities and clinics.

(a) Smoking is prohibited in any area of a
hospital, health care clinic, doctor's office, licensed residential facility for children, or other
health care-related facility, except that a patient or resident in a nursing home, boarding
care facility, or licensed residential facility for adults may smoke in a designated separate,
enclosed room maintained in accordance with applicable state and federal laws.

(b) Except as provided in section 246.0141, smoking by patients in a locked psychiatric
unit may be allowed in a separated well-ventilated area in the unit under a policy established
by the administrator of the program that allows the treating physician to approve smoking
if, in the opinion of the treating physician, the benefits to be gained in obtaining patient
cooperation with treatment outweigh the negative impacts of smoking.

deleted text begin (c) For purposes of this subdivision, the definition of smoking includes the use of
electronic cigarettes, including the inhaling and exhaling of vapor from any electronic
delivery device as defined in section 609.685, subdivision 1.
deleted text end

Sec. 8.

Minnesota Statutes 2018, section 144.4165, is amended to read:


144.4165 TOBACCO PRODUCTSnew text begin, CANNABIS, CANNABIS PRODUCTSnew text endnew text begin,
ELECTRONIC DELIVERY DEVICES, AND ELECTRONIC CANNABIS DELIVERY
DEVICES
new text end PROHIBITED IN PUBLIC SCHOOLS.

new text begin Subdivision 1. new text end

new text begin Tobacco products; electronic delivery devices. 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 beginas 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 Cannabis, cannabis products, electronic cannabis delivery devices. new text end

new text begin Except
as permitted under section 152.345, no person shall at any time engage in any of the following
in a public school, as defined in section 120A.05, subdivisions 9, 11, and 13:
new text end

new text begin (1) smoke, ingest, consume, or otherwise use cannabis or a cannabis product;
new text end

new text begin (2) inhale or exhale vapor from an electronic cannabis delivery device; or
new text end

new text begin (3) possess any of the items listed in clause (1) or (2).
new text end

Sec. 9.new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 144.414, subdivision 5, new text end new text begin is repealed.
new text end

ARTICLE 4

CONTROLLED SUBSTANCES ACT; EXPUNGEMENT

Section 1.

Minnesota Statutes 2018, section 152.01, is amended by adding a subdivision
to read:


new text begin Subd. 9b. new text end

new text begin Cannabis product. new text end

new text begin (a) "Cannabis product" has the meaning given in section
340B.01, subdivision 6.
new text end

new text begin (b) When determining the weight of a cannabis product for purposes of this chapter,
only the weight of the cannabis used in the product may be considered.
new text end

Sec. 2.

Minnesota Statutes 2018, section 152.01, is amended by adding a subdivision to
read:


new text begin Subd. 9c. new text end

new text begin Consume. new text end

new text begin "Consume" includes any form of ingestion, introduction, or
absorption into the body, including but not limited to by means of smoking, inhaling, eating,
or application onto the skin.
new text end

Sec. 3.

Minnesota Statutes 2018, section 152.027, subdivision 3, is amended to read:


Subd. 3.

Possession of new text begina cannabis product or new text endmarijuana in a motor vehicle.

A person
is guilty of a misdemeanor if the person is the owner of a private motor vehicle, or is the
driver of the motor vehicle if the owner is not present, and possesses on the person, or
knowingly keeps or allows to be kept within the area of the vehicle normally occupied by
the driver or passengers, more than deleted text begin1.4 gramsdeleted text endnew text begin one ouncenew text end of marijuananew text begin, more than eight
grams of concentrated cannabis, or cannabis products that cumulatively contain more than
800 milligrams of delta-9 tetrahydrocannabinol
new text end. 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. 4.

Minnesota Statutes 2018, section 152.027, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

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

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

Sec. 5.

Minnesota Statutes 2018, section 152.027, subdivision 4, is amended to read:


Subd. 4.

Possession or sale of small amounts of marijuana.

(a) new text beginExcept as provided in
section 152.0965,
new text enda 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. 6.

Minnesota Statutes 2018, section 152.092, is amended to read:


152.092 POSSESSION OF DRUG PARAPHERNALIA PROHIBITED.

(a)new text begin Except as provided in section 152.0965 or 152.0966,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. 7.

Minnesota Statutes 2018, section 152.093, is amended to read:


152.093 MANUFACTURE OR DELIVERY OF DRUG PARAPHERNALIA
PROHIBITED.

new text begin Except as provided in section 152.0965 or 152.0966, new text endit 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. 8.

new text begin [152.0965] PERSONAL POSSESSION, CONSUMPTION, AND
CULTIVATION OF CANNABIS.
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 and section 152.0966:
new text end

new text begin (1) "cannabis," "cannabis accessory," "cannabis cultivation facility," "cannabis product
manufacturing facility," "cannabis testing facility," "cultivation permit," "consumer,"
"immature plant," "mature plant," and "retail cannabis store" have the meanings given in
section 340B.01;
new text end

new text begin (2) "concentrated cannabis" means a cannabis concentrate that consists wholly or in part
of resin extracted from any part of the cannabis plant and that has a tetrahydrocannabinol
concentration of greater than ten percent;
new text end

new text begin (3) "electronic cannabis delivery device" means any product containing or delivering
cannabis or cannabis derivatives that can be used by a person to simulate smoking in the
delivery of cannabis or cannabis derivatives through inhalation of vapor from the product.
Electronic cannabis delivery device includes any component part of a product, whether or
not marketed or sold separately;
new text end

new text begin (4) "motor vehicle" has the meaning given in section 169.011, subdivision 42; and
new text end

new text begin (5) "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 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 or transport one ounce or less of cannabis, eight grams or less of concentrated
cannabis, or cannabis products that cumulatively do not contain more than 800 milligrams
of delta-9 tetrahydrocannabinol;
new text end

new text begin (2) purchase from a retail cannabis store one ounce or less of cannabis, eight grams or
less of concentrated cannabis, or cannabis products that cumulatively do not contain more
than 800 milligrams of delta-9 tetrahydrocannabinol;
new text end

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

new text begin (4) possess, cultivate, process, or transport no more than four cannabis plants, with two
or fewer being mature plants and the remaining number being immature plants, provided
the cannabis produced by the plants is not made available for sale and the person possesses
a cultivation permit;
new text end

new text begin (5) transfer one ounce or less of cannabis, eight grams or less of concentrated cannabis,
or cannabis products that cumulatively do not contain more than 800 milligrams of delta-9
tetrahydrocannabinol without remuneration to a person who is 21 years of age or older;
new text end

new text begin (6) consume cannabis or cannabis products, provided that nothing in this section permits
a person to:
new text end

new text begin (i) smoke cannabis or use an electronic cannabis delivery device in violation of sections
144.411 to 144.417; or
new text end

new text begin (ii) consume cannabis or cannabis products or use an electronic cannabis delivery device
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 (7) assist another person who is 21 years of age or older in any of the acts described in
clauses (1) to (6).
new text end

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

new text begin Subd. 3. 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 cannabis.
new text end

Sec. 9.

new text begin [152.0966] ACTIVITIES RELATED TO COMMERCIAL CULTIVATION,
TRANSPORTATION, MANUFACTURE, AND SALE OF CANNABIS, CANNABIS
PRODUCTS, AND CANNABIS ACCESSORIES.
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 cannabis accessories or sell cannabis 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 cannabis store or is acting in the person's capacity as an owner, employee,
or agent of a licensed retail cannabis store: possess, display, or transport cannabis or cannabis
products; purchase cannabis from a cannabis cultivation facility; purchase cannabis or
cannabis products from a cannabis product manufacturing facility; or sell cannabis or
cannabis 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 cannabis cultivation facility or is acting in the person's capacity as an owner,
employee, or agent of a licensed cannabis cultivation facility: cultivate, harvest, process,
package, transport, display, or possess cannabis; deliver or transfer cannabis to a cannabis
testing facility; sell cannabis to a cannabis cultivation facility, a cannabis product
manufacturing facility, or a retail cannabis store; or purchase cannabis from a cannabis
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 cannabis product manufacturing facility or is acting in the person's capacity as an
owner, employee, or agent of a licensed cannabis product manufacturing facility: package,
process, transport, manufacture, display, or possess cannabis or cannabis products; deliver
or transfer cannabis or cannabis products to a cannabis testing facility; sell cannabis or
cannabis products to a retail cannabis store or a cannabis product manufacturing facility;
purchase cannabis from a cannabis cultivation facility; or purchase cannabis or cannabis
products from a cannabis 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 cannabis testing facility or is acting in the person's capacity as an owner, employee,
or agent of a licensed cannabis testing facility: possess, test, repackage, store, transport,
display, transfer, or deliver cannabis or cannabis 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 according
to this section and chapter 340B.
new text end

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

Sec. 10.

Minnesota Statutes 2018, section 152.27, subdivision 1, is amended to read:


Subdivision 1.

Patient registry program; establishment.

(a) The commissioner shall
establish a patient registry program to evaluate data on patient demographics, effective
treatment options, clinical outcomes, and quality-of-life outcomes for the purpose of reporting
on the benefits, risks, and outcomes regarding patients with a qualifying medical condition
engaged in the therapeutic use of medical cannabis.

(b) The establishment of the registry program shall not be construed or interpreted to
condone or promote the deleted text beginillicitdeleted text end recreational use of deleted text beginmarijuanadeleted text endnew text begin cannabis in a manner not
authorized under sections 152.0965 and 152.0966 and chapter 340B
new text end.

Sec. 11.

new text begin [609A.05] EXPUNGEMENT OF CERTAIN MARIJUANA OFFENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin Notwithstanding any law to the contrary, a court shall issue
an order of expungement sealing all records relating to an arrest, indictment, information,
trial, or verdict for any person found guilty of an act committed before August 1, 2019, in
violation of:
new text end

new text begin (1) section 152.027, subdivision 3 or 4;
new text end

new text begin (2) Minnesota Statutes 1988, section 152.09, subdivision 1, clause (2), and sentenced
under Minnesota Statutes 1988, section 152.15, subdivision 2, clause (5) or (6); or
new text end

new text begin (3) Minnesota Statutes 1974, section 152.09, with respect to a small amount of marijuana.
new text end

new text begin Subd. 2. new text end

new text begin Attorney general to identify eligible individuals. new text end

new text begin On or before January 15,
2020, the attorney general shall consult with the Bureau of Criminal Apprehension and the
judicial branch and identify past convictions that qualify for expungement pursuant to
subdivision 1. The attorney general shall notify the prosecutorial office that had jurisdiction
over the offense of all cases that qualify for expungement, and shall make a reasonable and
good faith effort to notify any individual whose offense qualifies for expungement.
new text end

new text begin Subd. 3. new text end

new text begin Prosecutorial rights and responsibilities. new text end

new text begin (a) Upon receipt of the notice
described in subdivision 2, the prosecutorial office that had jurisdiction over the offense
shall have 30 days to review the case to determine whether it meets the requirements of
subdivision 1, send notice of that decision to the court, and make a reasonable and good
faith effort to send notice of that decision to the individual whose offense was identified by
the attorney general.
new text end

new text begin (b) Notice sent under this section shall include the name of the individual who committed
the offense, the date of the offense, and the court case number.
new text end

new text begin Subd. 4. new text end

new text begin Hearing on petition to expunge. new text end

new text begin (a) An individual who received notice pursuant
to subdivision 3 stating that the offense committed by the individual is not eligible for
expungement, who received notice pursuant to subdivision 2 and did not receive notice
pursuant to subdivision 3 within 60 days, or who did not receive notice pursuant to this
section on or before March 1, 2020, may file a petition seeking expungement under this
section. The filing fee under section 357.021, subdivision 2, clause (1), shall be waived.
new text end

new text begin (b) The petition for expungement shall be signed under oath by the petitioner and shall
state the following:
new text end

new text begin (1) the petitioner's full name and all other legal names or aliases by which the petitioner
has been known at any time;
new text end

new text begin (2) the petitioner's date of birth; and
new text end

new text begin (3) the date of the offense and the court case number of the offense for which
expungement is sought.
new text end

new text begin (c) The petitioner shall serve by mail the petition for expungement on the prosecutorial
office that had jurisdiction over the offense for which expungement is sought.
new text end

new text begin (d) Unless the prosecutorial office that had jurisdiction over the offense notifies the court
that the offense is eligible for expungement, a hearing on the petition shall be held within
a reasonable time after service of the petition.
new text end

new text begin (e) At a hearing on a petition filed under this section, the court shall determine whether
the offense meets the requirements of subdivision 1.
new text end

new text begin (f) Nothing in this section prevents an individual from filing a petition for expungement
pursuant to any other law.
new text end

new text begin Subd. 5. new text end

new text begin Order of expungement. new text end

new text begin (a) Upon receiving notice that an offense qualifies
for expungement from the prosecutorial office that had jurisdiction over the offense, or after
determining that an offense qualifies for expungement following a hearing, the court shall
issue an order sealing all records relating to an arrest, indictment, information, trial, or
verdict.
new text end

new text begin (b) The court administrator shall send a copy of an expungement order to each agency
and jurisdiction whose records are affected by the terms of the order and send a letter to the
person whose offense has been expunged identifying each agency that received the order.
new text end

new text begin (c) Data on the person whose offense has been expunged in a letter sent under this
subdivision are private data on individuals as defined in section 13.02.
new text end

new text begin (d) The effect of an order for expungement under this section is to restore the person,
in the contemplation of the law, to the status the person occupied before the arrest, indictment,
information, trial, or verdict. The person shall not be held guilty of perjury or otherwise of
giving a false statement if the person fails to acknowledge the arrest, indictment, information,
trial, or verdict in response to an inquiry made for any purpose.
new text end

ARTICLE 5

MISCELLANEOUS PROVISIONS

Section 1.

Minnesota Statutes 2018, section 152.23, is amended to read:


152.23 LIMITATIONS.

(a) Nothing in sections 152.22 to 152.37 permits any person to engage in and does not
prevent the imposition of any civil, criminal, or other penalties for:

(1) undertaking any task under the influence of medical cannabis that would constitute
negligence or professional malpractice;

(2) possessing or engaging in the use of medical cannabis:

(i) on a school bus or vannew text begin, except as permitted under section 152.345new text end;

(ii) on the grounds of any preschool deleted text beginor primarydeleted text endnew text begin, elementary,new text end or secondary schoolnew text begin, except
as permitted under section 152.345
new text end;

(iii) in any correctional facility; or

(iv) on the grounds of any child care facility or home day care;

(3) vaporizing medical cannabis pursuant to section 152.22, subdivision 6:

(i) on any form of public transportation;

(ii) where the vapor would be inhaled by a nonpatient minor child; or

(iii) in any public place, including any indoor or outdoor area used by or open to the
general public or a place of employment as defined under section 144.413, subdivision 1b;
and

(4) 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 medical cannabis.

(b) Nothing in sections 152.22 to 152.37 require the medical assistance and
MinnesotaCare programs to reimburse an enrollee or a provider for costs associated with
the medical use of cannabis. Medical assistance and MinnesotaCare shall continue to provide
coverage for all services related to treatment of an enrollee's qualifying medical condition
if the service is covered under chapter 256B or 256L.

Sec. 2.

new text begin [152.345] POSSESSION AND USE OF MEDICAL CANNABIS ON SCHOOL
GROUNDS.
new text end

new text begin (a) A student who is enrolled as a patient in the registry program is permitted to possess
or self-administer medical cannabis, or have medical cannabis administered, on the grounds
of a preschool, elementary school, or secondary school; on a school bus or van; or at a
school-sponsored event if:
new text end

new text begin (1) the student possesses or self-administers medical cannabis, or has medical cannabis
administered, in compliance with policies or guidelines adopted by the school board regarding
possession, storage, administration methods, persons authorized to administer medical
cannabis, and locations for administration; and
new text end

new text begin (2) the medical cannabis is administered or self-administered in a manner that does not
disrupt the educational environment or cause exposure to other students.
new text end

new text begin (b) Only a student who is 18 years of age or older is permitted to self-administer medical
cannabis under this section.
new text end

Sec. 3.

new text begin [214.1015] EMPLOYMENT WITH OR PROVIDING SERVICES TO
CANNABIS ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Cannabis establishment" has the meaning given in section 340B.01, subdivision 5.
new text end

new text begin (c) "Licensing board" means a health-related licensing board, a non-health-related
licensing board, or a state agency that issues an occupational license.
new text end

new text begin Subd. 2. new text end

new text begin Discipline; denial of licensure prohibited. new text end

new text begin Notwithstanding any law to the
contrary, a licensing board is prohibited from:
new text end

new text begin (1) taking disciplinary action against a regulated person solely for providing advice or
services to a cannabis establishment licensed under chapter 340B or an entity seeking
licensure as a cannabis establishment under chapter 340B; or
new text end

new text begin (2) denying a license to an applicant for licensure solely because the applicant was
previously employed by a cannabis establishment licensed in this or another state.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-2541

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.