HF 927

as introduced - 90th Legislature (2017 - 2018) Posted on 04/26/2018 06:57pm

A bill for an act
relating to public safety; allowing individuals 21 years of age and older to consume
and use marijuana, marijuana products, and marijuana accessories for personal
use; providing for regulation of the cultivation, manufacture, distribution, and sale
of marijuana, marijuana products, and marijuana accessories by the commissioner
of health and local governments; permitting activities related to marijuana
establishments; authorizing rulemaking; authorizing the use of certain not public
data; providing criminal penalties; requiring development of a fee schedule and a
tax; amending Minnesota Statutes 2016, sections 152.01, by adding subdivisions;
152.027, subdivision 3, by adding a subdivision; 152.092; 152.093; 152.31;
297D.06; proposing coding for new law in Minnesota Statutes, chapter 152;
proposing coding for new law as Minnesota Statutes, chapter 152B; repealing
Minnesota Statutes 2016, section 152.027, subdivision 4.

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

ARTICLE 1

REGULATION OF THE PRODUCTION AND SALE OF MARIJUANA

Section 1. PURPOSE AND FINDINGS.

(a) In the interest of individual freedom, the efficient use of law enforcement resources,
and enhancing revenue for public purposes, the legislature finds and declares that the use
of marijuana should be legal for persons 21 years of age or older and taxed in a manner
similar to alcohol.

(b) In the interest of the health and public safety of the citizens of Minnesota, the
legislature further finds and declares that marijuana should be regulated in a manner similar
to alcohol so that:

(1) individuals shall have to show proof of age before purchasing marijuana;

(2) selling, distributing, or transferring marijuana to individuals under the age of 21 shall
remain illegal;

(3) driving under the influence of marijuana shall remain illegal;

(4) legitimate, taxpaying business people, and not criminal actors, shall conduct sales
of marijuana; and

(5) marijuana sold in this state shall be labeled and subject to regulations to ensure that
consumers are informed and protected.

(c) In the interest of enacting rational policies for the treatment of all variations of the
cannabis plant, the legislature further finds and declares that industrial hemp shall be
regulated separately from strains of cannabis with higher delta-9 tetrahydrocannabinol
(THC) concentrations.

Sec. 2.

Minnesota Statutes 2016, section 152.31, is amended to read:

152.31 DATA PRACTICES.

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

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

(c) The commissioner may use not public data maintained by the commissioner and
related to a medical cannabis manufacturer in reviewing the medical cannabis manufacturer's
application to operate a marijuana establishment under chapter 152B, to determine the extent
to which the medical cannabis manufacturer has complied with sections 152.22 to 152.37.

Sec. 3.

[152B.01] DEFINITIONS.

Subdivision 1.

Applicability.

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

Subd. 2.

City.

"City" means a home rule charter or statutory city.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of health.

Subd. 4.

Consumer.

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

Subd. 5.

Local government.

"Local government" means a town operating under chapter
368, a county, or a city. A governing body for a town under this chapter means a town board
of supervisors.

Subd. 6.

Marijuana.

"Marijuana" means all parts of the plant of any species of the genus
Cannabis, including all agronomical varieties, whether growing or not; the seeds thereof;
the resin extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or its resin, but does not include
the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation
from mature stalks, except resin extracted therefrom, fiber, oil, or cake, or the sterilized
seed of the plant which is incapable of germination.

Subd. 7.

Marijuana accessory.

"Marijuana accessory" means any equipment, product,
or material of any kind which 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 containing marijuana, or for ingesting, inhaling, or otherwise
introducing marijuana into the human body.

Subd. 8.

Marijuana cultivation facility.

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

Subd. 9.

Marijuana establishment.

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

Subd. 10.

Marijuana product manufacturing facility.

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

Subd. 11.

Marijuana product.

"Marijuana product" means a concentrated marijuana
product or a marijuana product that is comprised of marijuana and other ingredients and is
intended for use or consumption including, but not limited to, edible products, ointments,
and tinctures.

Subd. 12.

Marijuana testing facility.

"Marijuana testing facility" means an entity
licensed to analyze and certify the safety and potency of marijuana.

Subd. 13.

Medical cannabis distribution facility.

"Medical cannabis distribution
facility" means a facility operated by a medical cannabis manufacturer and authorized to
dispense medical cannabis.

Subd. 14.

Medical cannabis manufacturer.

"Medical cannabis manufacturer" has the
meaning given in section 152.22, subdivision 7.

Subd. 15.

Retail marijuana store.

"Retail marijuana store" means an entity licensed to
purchase marijuana from marijuana cultivation facilities and marijuana and marijuana
products from marijuana product manufacturing facilities and to sell marijuana and marijuana
products to consumers.

Subd. 16.

Unreasonably impracticable.

"Unreasonably impracticable" means that the
measures necessary to comply with the rules require such a high investment of risk, money,
time, or any other resource or asset that the operation of a marijuana establishment is not
worth being carried out in practice by a reasonably prudent businessperson.

Sec. 4.

[152B.03] REGULATION OF MARIJUANA.

Subdivision 1.

Rulemaking authorized.

No later than July 1, 2019, the commissioner
shall adopt rules necessary to implement this chapter. The rules shall not prohibit the
operation of marijuana establishments, either expressly or through rules that make their
operation unreasonably impracticable. The rules shall include:

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

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

(3) security requirements for marijuana establishments;

(4) requirements to prevent the sale or diversion of marijuana and marijuana products
to persons under the age of 21;

(5) labeling requirements for marijuana and marijuana products sold or distributed by
a marijuana establishment;

(6) health and safety regulations and standards for the manufacture of marijuana products
and the cultivation of marijuana;

(7) restrictions on the advertising and display of marijuana and marijuana products; and

(8) civil penalties for the failure to comply with rules adopted according to this section.

Subd. 2.

Factors in reviewing applications.

In order to ensure the most secure, reliable,
and accountable system for the production and distribution of marijuana and marijuana
products in accordance with this chapter, in any competitive application process the
commissioner shall have as a primary consideration whether an applicant:

(1) has prior experience producing or distributing medical cannabis according to sections
152.22 to 152.37 in the city, county, or town in which the applicant seeks to operate a
marijuana establishment; and

(2) has, during the experience described in clause (1), complied consistently with sections
152.22 to 152.37 and Minnesota Rules, chapter 4770. The commissioner may use not public
data related to the medical cannabis manufacturer and held by the commissioner in making
a determination under this clause.

Sec. 5.

[152B.04] INDIVIDUAL PRIVACY OF CONSUMERS AT RETAIL
MARIJUANA STORES.

In order to ensure that individual privacy is protected:

(1) a consumer shall not be required to provide a retail marijuana store with personal
information other than government-issued identification to determine the consumer's age
in order to purchase marijuana or marijuana products; and

(2) a retail marijuana store shall not be required to acquire and record personal information
about consumers other than information typically acquired in a financial transaction
conducted at an on-sale liquor licensee.

Sec. 6.

[152B.05] LOCAL REGULATIONS.

Subdivision 1.

Jurisdiction.

A county must adopt regulations or ordinances under
subdivision 2 and may adopt regulations or ordinances under subdivision 3. A city or town
may adopt regulations or ordinances under subdivisions 2 and 3. If both a city and county
with overlapping jurisdictions or a county and town with overlapping jurisdictions adopt
regulations or ordinances under subdivision 2 or 3, the county regulations or ordinances
apply only in those portions of the county outside the jurisdiction of the city or town.

Subd. 2.

Marijuana establishment licenses.

No later than October 1, 2019, a county
must adopt and a city or town may adopt regulations or ordinances:

(1) specifying the entity within the local government responsible for processing
applications for a license to operate a marijuana establishment within the boundaries of the
local government; and

(2) providing for the issuance of marijuana establishment licenses if a local government
must issue licenses because the commissioner fails to adopt rules according to section
152B.03 or because the commissioner fails to process and issue licenses as required by
section 152B.06.

Subd. 3.

Other regulations regarding marijuana establishments.

(a) A local
government may adopt ordinances or regulations that do not conflict with this chapter:

(1) governing the time, place, and manner of marijuana establishment operations, and
the number of marijuana establishments within the jurisdiction of the local government;

(2) establishing procedures for the issuance, suspension, and revocation of licenses
issued by the local government in accordance with section 152B.06, subdivision 2 or 3;

(3) establishing a schedule of annual operating, licensing, and application fees for
marijuana establishments. An application fee established according to this clause shall be
due only if an application is submitted to a local government under section 152B.06,
subdivision 3. A licensing fee established according to this clause shall be due only if a
local government issues a license under section 152B.06, subdivision 2 or 3; and

(4) establishing civil penalties for violations of ordinances or regulations governing the
time, place, or manner of the operation of marijuana establishments.

(b) A local government may adopt ordinances or regulations that prohibit the operation
of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana
testing facilities, or retail marijuana stores.

Sec. 7.

[152B.06] PROCEDURES FOR LICENSURE OF MARIJUANA
ESTABLISHMENTS.

Subdivision 1.

Application for state license.

Each application for an annual license to
operate a marijuana establishment shall be submitted to the commissioner. The commissioner
shall:

(1) begin accepting and processing applications on October 1, 2019;

(2) immediately forward a copy of each application and half of the license application
fee to the local government for the location in which the applicant intends to operate the
marijuana establishment;

(3) issue an annual license to the applicant within 90 days after receipt of an application
unless the commissioner finds the applicant is not in compliance with rules adopted according
to section 152B.03 or the commissioner is notified by the applicable local government that
the applicant is not in compliance with ordinances and regulations adopted according to
section 152B.05 and in effect at the time of application. Where a local government has
adopted a numerical limit on the number of marijuana establishments licenses and a greater
number of applicants seek licenses than the number of licenses available, the commissioner
shall solicit and consider input from the local government regarding the local government's
preferences for licensure; and

(4) upon denial of an application, notify the applicant in writing of the specific reason
for its denial.

Subd. 2.

Application for local license due to lack of action on application for state
license.

(a) An applicant who has submitted an application to the commissioner according
to subdivision 1 may resubmit its application directly to a local government according to
section 152B.05 if:

(1) the commissioner does not issue a license to an applicant within 90 days after receipt
of the application submitted in accordance with subdivision 1 and does not notify the
applicant, in writing, of the reason for the denial or lack of action within the 90-day period;
or

(2) the commissioner has adopted rules according to section 152B.03, subdivision 1,
and has accepted applications according to subdivision 1 but has not issued any licenses by
January 1, 2020.

(b) A local government that receives an application under paragraph (a) may issue a
license to the applicant. A local government issuing a license under this subdivision shall
do so within 90 days after receipt of the application unless the local government determines
that the applicant is not in compliance with regulations or ordinances adopted according to
section 152B.05 and provides notice of this noncompliance to the applicant.

(c) A local government shall notify the commissioner of all local licenses issued under
this subdivision.

(d) If an application is submitted under this subdivision, the commissioner shall, if the
local government so requests, forward to the local government the remainder of the
application fee paid to the commissioner with the applicant's initial application.

(e) A license issued by a local government under this subdivision shall have the same
force and effect as a license issued by the commissioner under subdivision 1. The holder
of a local license shall not be subject to regulation or enforcement by the commissioner
during the term of the local license. A local government may issue a subsequent or renewed
license under this subdivision on an annual basis only if the applicant first submits an
application to the commissioner under subdivision 1 and resubmits that application to the
local government under this subdivision.

Subd. 3.

Application for local license if commissioner does not adopt rules.

If the
commissioner does not adopt rules required by section 152B.03, an applicant may submit
an application directly to a local government after October 1, 2019, and the local government
may issue an annual license to the applicant. A local government issuing a license under
this subdivision shall do so within 90 days after receipt of the application unless it determines
that the applicant is not in compliance with regulations or ordinances adopted according to
section 152B.05 in effect at the time of application and provides notice of this noncompliance
to the applicant. A local government shall notify the commissioner if the local government
issues an annual license to the applicant under this subdivision. A license issued by a local
government under this subdivision shall have the same force and effect as a license issued
by the commissioner in accordance with subdivision 1. The holder of a local license shall
not be subject to regulation or enforcement by the commissioner during the term of that
local license. A local government may issue a subsequent or renewed license under this
subdivision on an annual basis if the commissioner has not adopted rules required by section
152B.03 at least 90 days prior to the date upon which a subsequent or renewed license would
be effective, or if the commissioner has adopted rules according to section 152B.03 but has
not, at least 90 days after the adoption of the rules, issued licenses pursuant to subdivision
1.

Sec. 8.

[152B.07] EMPLOYERS, DRIVING, MINORS, AND CONTROL OF
PROPERTY.

Subdivision 1.

Employers.

Nothing in this chapter or chapter 152 is intended to require
an employer to permit or accommodate the use, consumption, possession, transfer, display,
transportation, sale, or cultivation of marijuana in the workplace or to affect the authority
of employers to have policies restricting or prohibiting the use of marijuana by employees.

Subd. 2.

Driving under the influence.

Nothing in this chapter or chapter 152 is intended
to allow driving under the influence of marijuana or to supersede section 169A.20.

Subd. 3.

Consumption of marijuana or marijuana products in a motor vehicle.

Nothing in this chapter or chapter 152 is intended to allow the consumption of marijuana
or marijuana products in a motor vehicle or to supersede section 152.027, subdivision 3a.

Subd. 4.

Persons under age 21.

Nothing in this chapter or chapter 152 is intended to
permit the transfer of marijuana, with or without remuneration, to a person under the age
of 21 or to allow a person under the age of 21 to purchase, possess, use, transport, grow, or
consume marijuana.

Subd. 5.

Control of property.

Nothing in this chapter or chapter 152 shall prohibit a
person, employer, school, hospital, detention facility, corporation, or any other entity who
occupies, owns, or controls a property from prohibiting or otherwise regulating the
possession, consumption, use, display, transfer, distribution, sale, transportation, or cultivation
of marijuana on or in that property.

Sec. 9.

[152B.08] MEDICAL CANNABIS PROVISIONS UNAFFECTED.

Nothing in this chapter shall be construed:

(1) to limit any privileges or rights in sections 152.22 to 152.37 of a medical cannabis
patient; designated caregiver, parent, or legal guardian under section 152.27, subdivision 4
or 5; or medical cannabis manufacturer;

(2) to permit a medical cannabis distribution facility to distribute marijuana to a person
who is not a medical cannabis patient enrolled in the registry established according to
sections 152.22 to 152.37;

(3) to permit a medical cannabis distribution facility to purchase marijuana or marijuana
products in a manner or from a source not authorized under sections 152.22 to 152.37;

(4) to permit a medical cannabis distribution facility to operate on the same premises as
a retail marijuana store; or

(5) to discharge the commissioner from the commissioner's duties to regulate medical
cannabis under sections 152.22 to 152.37.

Sec. 10.

Minnesota Statutes 2016, section 297D.06, is amended to read:

297D.06 PHARMACEUTICALS EXCEPTION FOR LAWFUL POSSESSION.

Nothing in this chapter requires The following persons are not required to pay the tax
under this chapter:

(1) persons registered under chapter 151 or lawfully in possession of marijuana or a
controlled substance;

(2) persons lawfully in possession of medical cannabis obtained according to sections
152.22 to 152.37;

(3) persons licensed to grow, process, and sell marijuana and marijuana products under
chapter 152B;

(4) persons who have lawfully purchased marijuana or marijuana products from a retail
marijuana store licensed under chapter 152B; and

(5) persons who are otherwise lawfully in possession of marijuana or a controlled
substance to pay the tax required under this chapter.

Sec. 11. FEE SCHEDULE FOR LICENSURE OF MARIJUANA
ESTABLISHMENTS.

Subdivision 1.

Definition.

For purposes of this section, "marijuana establishment" has
the meaning given in Minnesota Statutes, section 152B.01, subdivision 9.

Subd. 2.

Fee schedule.

By January 1, 2019, the commissioner of health shall submit to
the legislature a proposed schedule of annual application, licensing, and renewal fees for
marijuana establishments authorized under Minnesota Statutes, chapter 152B. The
commissioner shall set proposed fees for each type of marijuana establishment in accordance
with Minnesota Statutes, section 16A.1285, subdivision 2. No fee shall exceed $5,000 unless
the commissioner determines that a greater fee is necessary to recover its costs under
Minnesota Statutes, chapter 152B.

Subd. 3.

Limit on fees charged to medical cannabis manufacturers.

In the fee schedule
required under subdivision 2, the application fee shall not exceed $500 for a medical cannabis
manufacturer that:

(1) is registered under Minnesota Statutes, sections 152.22 to 152.37, to manufacture
and distribute medical cannabis as of the effective date of Minnesota Statutes, chapter 152B;
and

(2) chooses to apply for a separate marijuana establishment license under Minnesota
Statutes, chapter 152B.

Sec. 12. TAXATION OF MARIJUANA.

By January 1, 2019, the commissioner of revenue shall submit to the legislature proposed
legislation for a tax to be levied upon marijuana sold or otherwise transferred by a marijuana
cultivation facility to a marijuana product manufacturing facility or to a retail marijuana
store, at a rate not to exceed 15 percent prior to January 1, 2021, and at a rate determined
by law thereafter. In its proposed legislation, the commissioner shall include procedures for
the collection of these taxes. The proposal required by this section shall not include levying
a tax on medical cannabis dispensed at a medical cannabis distribution facility under
Minnesota Statutes, sections 152.22 to 152.37.

Sec. 13. EFFECTIVE DATE.

This section is effective January 1, 2018.

ARTICLE 2

MARIJUANA FOR PERSONAL USE

Section 1.

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

Subd. 9b.

Marijuana accessory.

"Marijuana accessory" has the meaning given in section
152B.01, subdivision 7.

Sec. 2.

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

Subd. 9c.

Marijuana product.

"Marijuana product" has the meaning given in section
152B.01, subdivision 11.

Sec. 3.

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

Subd. 3.

Possession of a marijuana product or marijuana in a motor vehicle.

A
person is guilty of a misdemeanor if the person is the owner of a private motor vehicle, or
is the driver of the motor vehicle if the owner is not present, and possesses on the person,
or knowingly keeps or allows to be kept within the area of the vehicle normally occupied
by the driver or passengers, a marijuana product or more than 1.4 grams one ounce of
marijuana. This area of the vehicle does not include the trunk of the motor vehicle if the
vehicle is equipped with a trunk, or another area of the vehicle not normally occupied by
the driver or passengers if the vehicle is not equipped with a trunk. A utility or glove
compartment is deemed to be within the area occupied by the driver and passengers.

Sec. 4.

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

Subd. 3a.

Consumption of a marijuana product or marijuana in a motor vehicle.

A person is guilty of a misdemeanor if the person consumes a marijuana product or marijuana
in a motor vehicle when the motor vehicle is upon a street or highway.

Sec. 5.

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

152.092 POSSESSION OF DRUG PARAPHERNALIA PROHIBITED.

(a) Except as provided in section 152.211 or 152.212, 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. 6.

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

152.093 MANUFACTURE OR DELIVERY OF DRUG PARAPHERNALIA
PROHIBITED.

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

Sec. 7.

[152.211] PERSONAL USE OF MARIJUANA.

(a) The following acts are not violations of this chapter and are not a basis for seizure
or forfeiture of assets for persons 21 years of age or older:

(1) to possess, use, display, purchase, or transport marijuana accessories, marijuana
products, or one ounce or less of marijuana;

(2) to possess, grow, process, or transport no more than six marijuana plants, with three
or fewer being mature, flowering plants, and possession of the marijuana produced by the
plants on the premises where the plants were grown, provided that the growing takes place
in an enclosed, locked space, is not conducted openly or publicly, and is not made available
for sale;

(3) to transfer one ounce or less of marijuana without remuneration to a person who is
21 years of age or older;

(4) to consume marijuana, provided that nothing in this section shall permit consumption
that is conducted openly and publicly or in a manner that endangers others; or

(5) to assist another person who is 21 years of age or older in any of the acts described
in clauses (1) to (4).

(b) Nothing in this section permits a person to engage in, and does not prevent the
imposition of any civil, criminal, or other penalties for, operating, navigating, or being in
actual physical control of any motor vehicle, aircraft, train, or motorboat, or working on
transportation property, equipment, or facilities while under the influence of marijuana.

Sec. 8.

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

Subdivision 1.

Definitions.

For purposes of this section, "marijuana cultivation facility,"
"marijuana product manufacturing facility," "marijuana testing facility," and "retail marijuana
store" have the meanings given in section 152B.01.

Subd. 2.

Acts not violations of chapter.

The following acts are not violations of this
chapter and are not a basis for seizure or forfeiture of assets for persons 21 years of age or
older:

(1) manufacture, possession, or purchase of marijuana accessories or the sale of marijuana
accessories to a person who is 21 years of age or older;

(2) possessing, displaying, or transporting marijuana or marijuana products; purchase
of marijuana from a marijuana cultivation facility; purchase of marijuana or marijuana
products from a marijuana product manufacturing facility; or the sale of marijuana or
marijuana products to consumers, if the person conducting the activities described in this
clause has a current, valid license to operate a retail marijuana store or is acting in the
person's capacity as an owner, employee, or agent of a licensed retail marijuana store;

(3) cultivating, harvesting, processing, packaging, transporting, displaying, or possessing
marijuana; delivery or transfer of marijuana to a marijuana testing facility; selling marijuana
to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail
marijuana store; or the purchase of marijuana from a marijuana cultivation facility, if the
person conducting the activities described in this clause has a current, valid license to operate
a marijuana cultivation facility or is acting in the person's capacity as an owner, employee,
or agent of a licensed marijuana cultivation facility;

(4) packaging, processing, transporting, manufacturing, displaying, or possessing
marijuana or marijuana products; delivery or transfer of marijuana or marijuana products
to a marijuana testing facility; selling marijuana or marijuana products to a retail marijuana
store or a marijuana product manufacturing facility; the purchase of marijuana from a
marijuana cultivation facility; or the purchase of marijuana or marijuana products from a
marijuana product manufacturing facility, if the person conducting the activities described
in this clause has a current, valid license to operate a marijuana product manufacturing
facility or is acting in the person's capacity as an owner, employee, or agent of a licensed
marijuana product manufacturing facility;

(5) possessing, cultivating, processing, repackaging, storing, transporting, displaying,
transferring, or delivering marijuana or marijuana products if the person conducting the
activities described in this clause has a current, valid license to operate a marijuana testing
facility or is acting in the person's capacity as an owner, employee, or agent of a licensed
marijuana testing facility; or

(6) leasing or otherwise allowing the use of property owned, occupied, or controlled by
any person, corporation, or other entity for any of the activities conducted lawfully in
accordance with this section.

Sec. 9. REPEALER.

Minnesota Statutes 2016, section 152.027, subdivision 4, is repealed.

Sec. 10. EFFECTIVE DATE.

This article is effective January 1, 2018.

APPENDIX

Repealed Minnesota Statutes: 17-2248

152.027 OTHER CONTROLLED SUBSTANCE OFFENSES.

Subd. 4.

Possession or sale of small amounts of marijuana.

(a) A person who unlawfully sells a small amount of marijuana for no remuneration, or who unlawfully possesses a small amount of marijuana is guilty of a petty misdemeanor and shall be required to participate in a drug education program unless the court enters a written finding that a drug education program is inappropriate. The program must be approved by an area mental health board with a curriculum approved by the state alcohol and drug abuse authority.

(b) A person convicted of an unlawful sale under paragraph (a) who is subsequently convicted of an unlawful sale under paragraph (a) within two years is guilty of a misdemeanor and shall be required to participate in a chemical dependency evaluation and treatment if so indicated by the evaluation.

(c) A person who is convicted of a petty misdemeanor under paragraph (a) who willfully and intentionally fails to comply with the sentence imposed, is guilty of a misdemeanor. Compliance with the terms of the sentence imposed before conviction under this paragraph is an absolute defense.