Section 1. Minnesota Statutes 2024, section 342.01, subdivision 14, is amended to read:

Subd. 14.

Cannabis business.

"Cannabis business" means any of the following licensed under this chapter:

(1) cannabis microbusiness;

(2) cannabis mezzobusiness;

(3) cannabis cultivator;

(4) cannabis manufacturer;

(5) cannabis retailer;

(6) cannabis wholesaler;

(7) cannabis transporter;

(8) cannabis testing facility;

(9) cannabis event organizer;

(10) cannabis delivery service; and

(11) deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 2.

Minnesota Statutes 2024, section 342.01, subdivision 20, is amended to read:

Subd. 20.

Cannabis product.

(a) "Cannabis product" means any of the following:

(1) cannabis concentrate;

(2) a product infused with cannabinoids, including but not limited to tetrahydrocannabinol, extracted or derived from cannabis plants or cannabis flower;

new text begin (3) a ratio hemp-infused cannabis product;new text end or

deleted text begin (3)deleted text end new text begin (4)new text end any other product that contains cannabis concentrate.

(b) Cannabis product includes adult-use cannabis products, including but not limited to edible cannabis products and medical cannabinoid products. Cannabis product does not include cannabis flower, artificially derived cannabinoid, lower-potency hemp edibles, hemp-derived consumer products, or hemp-derived topical products.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 342.01, subdivision 48, is amended to read:

Subd. 48.

License holder.

"License holder" means a person, cooperative, or business that holds any of the following licenses:

(1) cannabis microbusiness;

(2) cannabis mezzobusiness;

(3) cannabis cultivator;

(4) cannabis manufacturer;

(5) cannabis retailer;

(6) cannabis wholesaler;

(7) cannabis transporter;

(8) cannabis testing facility;

(9) cannabis event organizer;

(10) cannabis delivery service;

(11) lower-potency hemp edible manufacturer;

(12) lower-potency hemp edible wholesaler;

(13) lower-potency hemp edible retailer; or

(14) deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 342.01, subdivision 50, is amended to read:

Subd. 50.

Lower-potency hemp edible.

(a) "Lower-potency hemp edible" means any product that:

(1) is intended to be eaten or consumed as a beverage by humans;

(2) contains hemp concentrate or an artificially derived cannabinoid, in combination with food ingredients;

(3) is not a drug;

(4) does not contain a cannabinoid derived from cannabis plants or cannabis flower;

(5) is a type of product approved for sale by the office or is substantially similar to a product approved by the office, including but not limited to products that resemble nonalcoholic beverages, candy, and baked goods; and

(6) meets either of the requirements in paragraph (b).

(b) A lower-potency hemp edible includes:

(1) a product that:

(i) is not intended to be consumed as a beverage and consists of servings that contain no more than five milligrams of delta-9 tetrahydrocannabinol; is intended to be consumed as a beverage and contains no more than ten milligrams of delta-9 tetrahydrocannabinol in a single container; is intended to be consumed in any approved manner and consists of servings or a container that contain deleted text begin no more thandeleted text end new text begin up tonew text end 100 milligrams of cannabidiol, new text begin up to 100 milligrams of new text end cannabigerol, new text begin up to 100 milligrams of new text end cannabinol, ornew text begin up to 100 milligrams ofnew text end cannabichromenenew text begin , or any combination of cannabidiol, cannabigerol, cannabinol, and cannabichromene as long as the combination or the individual amounts of each cannabinoid does not exceed 400 milligramsnew text end ; is intended to be consumed in any approved manner and contains no more than the established limit of any other cannabinoid authorized by the office; or is intended to be consumed in any approved manner and contains any combination of those cannabinoids that does not exceed the identified amounts for the applicable product category;

(ii) does not contain more than a combined total of 0.5 milligrams of all other cannabinoids per serving; and

(iii) does not contain an artificially derived cannabinoid other than delta-9 tetrahydrocannabinol, except that a product may include artificially derived cannabinoids created during the process of creating the delta-9 tetrahydrocannabinol that is added to the product, if no artificially derived cannabinoid is added to the ingredient containing delta-9 tetrahydrocannabinol and the ratio of delta-9 tetrahydrocannabinol to all other artificially derived cannabinoids is no less than 20 to one; or

(2) a product that:

(i) contains hemp concentrate processed or refined without increasing the percentage of targeted cannabinoids or altering the ratio of cannabinoids in the extracts or resins of a hemp plant or hemp plant parts beyond the variability generally recognized for the method used for processing or refining or by an amount needed to reduce the total THC in the hemp concentrate; and

(ii) consists of servings that contain no more than five milligrams of total THC.

Sec. 5.

Minnesota Statutes 2024, section 342.01, subdivision 52, is amended to read:

Subd. 52.

Medical cannabinoid product.

deleted text begin (a)deleted text end "Medical cannabinoid product" means a new text begin cannabis new text end product thatdeleted text begin :deleted text end

deleted text begin (1) consists of or contains cannabis concentrate or hemp concentrate or is infused with cannabinoids, including but not limited to artificially derived cannabinoids; and deleted text end

deleted text begin (2)deleted text end is provided to a patient enrolled in the registry program; new text begin a visiting patient; new text end a registered designated caregiver; or a parent, legal guardian, or spouse of an enrolled patient, by a registered designated caregiver, cannabis retailer, or cannabis business with a medical cannabis retail endorsement to treat or alleviate the symptoms of a qualifying medical condition.

deleted text begin (b) A medical cannabinoid product must be in the form of: deleted text end

deleted text begin (1) liquid, including but not limited to oil; deleted text end

deleted text begin (2) pill; deleted text end

deleted text begin (3) liquid or oil for use with a vaporized delivery method; deleted text end

deleted text begin (4) water-soluble cannabinoid multiparticulate, including granules, powder, and sprinkles; deleted text end

deleted text begin (5) orally dissolvable product, including lozenges, gum, mints, buccal tablets, and sublingual tablets; deleted text end

deleted text begin (6) edible products in the form of gummies and chews; deleted text end

deleted text begin (7) topical formulation; or deleted text end

deleted text begin (8) any allowable form or delivery method approved by the office. deleted text end

deleted text begin (c) Medical cannabinoid product does not include adult-use cannabis products or hemp-derived consumer products. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 6.

Minnesota Statutes 2024, section 342.01, subdivision 54, is amended to read:

Subd. 54.

Medical cannabis flower.

"Medical cannabis flower" means cannabis flower provided to a patient enrolled in the registry program or a visiting patient; a registered designated caregiver; or a parent, legal guardian, or spouse of an enrolled patient by a registered designated caregiver, cannabis retailer, or cannabis business with a medical cannabis retail endorsement to treat or alleviate the symptoms of a qualifying medical condition. deleted text begin Medical cannabis flower does not include adult-use cannabis flower.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 7.

Minnesota Statutes 2024, section 342.01, is amended by adding a subdivision to read:

new text begin Subd. 63a. new text end

new text begin Ratio hemp-infused cannabis product. new text end

new text begin (a) "Ratio hemp-infused cannabis product" means a product that: new text end

new text begin (1) contains cannabis extracts in combination with cannabinoids derived from hemp as defined by United States Code, title 7, section 1639o(1), that are not artificially derived cannabinoids and have been approved by the office as nonintoxicating, in the same or different concentrations than naturally occur in the plant; and new text end

new text begin (2) is a product category approved by the office. new text end

new text begin (b) Ratio hemp-infused cannabis products must not include more than 100 milligrams of cannabidiol, cannabigerol, cannabinol, or cannabichromene per serving. new text end

new text begin (c) If a ratio hemp-infused cannabis product is meant to be eaten, the product must not include more than ten milligrams of THC per serving and 200 milligrams of THC per package. new text end

new text begin (d) If a ratio hemp-infused cannabis product is meant to be consumed as a beverage, the product must not include more than ten milligrams of THC per serving, and a single beverage container may not contain more than two servings. new text end

new text begin (e) If a ratio hemp-infused cannabis product is meant to be used as a transdermal or topical product, the product must not include more than the limit approved by the office in rule. new text end

new text begin (f) If a ratio hemp-infused cannabis product is designed for a vaporized delivery method, the product must not exceed the limit approved by the office in rule. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 8.

Minnesota Statutes 2024, section 342.02, subdivision 2, is amended to read:

Subd. 2.

Powers and duties.

(a) The office has the following powers and duties:

(1) to develop, maintain, and enforce an organized system of regulation for the cannabis industry and hemp consumer industry;

(2) to establish programming, services, and notification to protect, maintain, and improve the health of citizens;

(3) to prevent unauthorized access to cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products by individuals under 21 years of age;

(4) to establish and regularly update standards for product manufacturing, testing, packaging, and labeling, including requirements for an expiration, sell-by, or best-used-by date;

(5) to promote economic growth with an emphasis on growth in areas that experienced a disproportionate, negative impact from cannabis prohibition;

(6) to issue and renew licenses;

(7) to require fingerprints from individuals determined to be subject to fingerprinting, including the submission of fingerprints to the Federal Bureau of Investigation where required by law and to obtain criminal conviction data for individuals seeking a license from the office on the individual's behalf or as a cooperative member or director, manager, or general partner of a business entity;

(8) to receive reports required by this chapter and inspect the premises, records, books, and other documents of license holders to ensure compliance with all applicable laws and rules;

(9) to authorize the use of unmarked motor vehicles to conduct seizures or investigations pursuant to the office's authority;

(10) to impose and collect civil and administrative penalties as provided in this chapter;

(11) to publish such information as may be deemed necessary for the welfare of cannabis businesses, cannabis workers, hemp businesses, and hemp workers and the health and safety of citizens;

(12) to make loans and grants in aid to the extent that appropriations are made available for that purpose;

(13) to authorize research and studies on cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, hemp-derived consumer products, the cannabis industry, and the hemp consumer industry;

(14) to provide reports as required by law;

(15) to develop a warning label regarding the effects of the use of cannabis flower and cannabis products by persons 25 years of age or younger;

(16) to determine, based on a review of medical and scientific literature, whether it is appropriate to require additional health and safety warnings containing information that is both supported by credible science and helpful to consumers in considering potential health risks from the use of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products, including but not limited to warnings regarding any risks associated with use by pregnant or breastfeeding individuals, or by individuals planning to become pregnant, and the effects that use has on brain development for individuals under the age of 25;

(17) to establish limits on the potency of cannabis flower and cannabis products that can be sold to customers by licensed cannabis retailers, licensed cannabis microbusinesses, and licensed cannabis mezzobusinesses with an endorsement to sell cannabis flower and cannabis products to customers;

(18) to establish rules authorizing an increase in plant canopy limits and outdoor cultivation limits to meet market demand and limiting cannabis manufacturing consistent with the goals identified in subdivision 1;

(19) to order a person or business that cultivates cannabis flower or manufactures or produces cannabis products, medical cannabinoid products, artificially derived cannabinoids, lower-potency hemp edibles, hemp-derived consumer products, or hemp-derived topical products to recall any cannabis flower, product, or ingredient containing cannabinoids that is used in a product if the office determines that the flower, product, or ingredient represents a risk of causing a serious adverse incident; and

(20) to exercise other powers and authority and perform other duties required by law.

(b) In addition to the powers and duties in paragraph (a), the office has the following powers and duties until January 1, 2027:

(1) to establish limits on the potency of adult-use cannabis flower and adult-use cannabis products that can be sold to customers by licensed cannabis retailers, licensed cannabis microbusinesses, and licensed cannabis mezzobusinesses with an endorsement to sell adult-use cannabis flower and adult-use cannabis products to customers; and

(2) to permit, upon application to the office in the form prescribed by the director of the office, a deleted text begin licenseedeleted text end new text begin license holdernew text end under this chapter to perform any activity if such permission is substantially necessary for the deleted text begin licenseedeleted text end new text begin license holdernew text end to perform any other activity permitted by the applicant's license and is not otherwise prohibited by law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2025 Supplement, section 342.04, is amended to read:

342.04 STUDIES; REPORTS.

new text begin Subdivision 1. new text end

new text begin Studies required. new text end

(a) The office shall conduct a study to determine the expected size and growth of the regulated cannabis industry and hemp consumer industry, including an estimate of the demand for cannabis flower and cannabis products, the number and geographic distribution of cannabis businesses needed to meet that demand, and the anticipated business from residents of other states.

(b) The office shall conduct a study to determine the size of the illicit cannabis market, the sources of illicit cannabis flower and illicit cannabis products in the state, the locations of citations issued and arrests made for cannabis offenses, and the subareas, such as census tracts or neighborhoods, that experience a disproportionately large amount of cannabis enforcement.

(c) The office shall conduct a study on impaired driving to determine:

(1) the number of accidents involving one or more drivers who admitted to using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products, or who tested positive for cannabis or tetrahydrocannabinol;

(2) the number of arrests of individuals for impaired driving in which the individual tested positive for cannabis or tetrahydrocannabinol; and

(3) the number of convictions for driving under the influence of cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or tetrahydrocannabinol.

(d) The office shall provide preliminary reports on the studies conducted pursuant to paragraphs (a) to (c) to the legislature by January 15, 2024, and shall provide final reports to the legislature by January 15, 2025. The reports may be consolidated into a single report by the office.

deleted text begin (e) The office shall collect existing data from the Department of Human Services, Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals licensed under chapter deleted text end deleted text begin 144 deleted text end deleted text begin on the utilization of mental health and substance use disorder services, emergency room visits, and commitments to identify any increase in the services provided or any increase in the number of visits or commitments. The office shall also obtain summary data from existing first episode psychosis programs on the number of persons served by the programs and number of persons on the waiting list. All information collected by the office under this paragraph shall be included in the report required under paragraph (f). deleted text end

new text begin Subd. 2. new text end

new text begin Annual market analysis. new text end

deleted text begin (f)deleted text end new text begin (a)new text end The office shall conduct an annual market analysis on the status of the regulated cannabis industry deleted text begin and submit a report of the findingsdeleted text end . new text begin An annual market analysis under this subdivision must include:new text end

new text begin (1) the number of licenses issued by the office; new text end

new text begin (2) recommendations on the number of licenses that the office should make available; new text end

new text begin (3) information about the stability of the regulated market, including an assessment of the available supply and whether the supply is sufficient for consumer demand in the state; new text end

new text begin (4) the impact of unregulated sales of cannabis flower and cannabis products on the regulated market; and new text end

new text begin (5) the status of the medical cannabis patient registry program. new text end

new text begin (b) The office may solicit the input of consumers, market stakeholders, and potential new applicants for the annual market analysis under paragraph (a). new text end The office shall submit the deleted text begin report by January 15, 2025, and each January 15 thereafter and the report may be combined with the annual report submitted by the office. The process of completing the market analysis must include holding public meetings to solicit the input of consumers, market stakeholders, and potential new applicants and must include an assessment as to whether the office has issued the necessary number of licenses in order to:deleted text end new text begin annual market analysis under paragraph (a) as part of the annual report required in subdivision 3.new text end

deleted text begin (1) ensure the sufficient supply of cannabis flower and cannabis products to meet demand; deleted text end

deleted text begin (2) provide market stability; deleted text end

deleted text begin (3) ensure a competitive market; and deleted text end

deleted text begin (4) limit the sale of unregulated cannabis flower and cannabis products. deleted text end

new text begin Subd. 3. new text end

new text begin Annual report required. new text end

deleted text begin (g)deleted text end new text begin (a)new text end The office shall submit an annual report to the legislature by January 15deleted text begin , 2024, anddeleted text end each deleted text begin January 15 thereafterdeleted text end new text begin yearnew text end . The annual report deleted text begin shalldeleted text end new text begin mustnew text end include but not be limited to the following:

(1) the status of the regulated cannabis industry;

(2) the status of the illicit cannabis market deleted text begin anddeleted text end new text begin ;new text end

new text begin (3) the status of thenew text end hemp deleted text begin consumer industrydeleted text end new text begin commercial and consumer industriesnew text end ;

deleted text begin (3) the number of accidents, arrests, and convictions involving drivers who admitted to using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products or who tested positive for cannabis or tetrahydrocannabinol; deleted text end

(4) the change in potency, if any, of cannabis flower and cannabis products available through the regulated market;

(5) progress on providing opportunities to individuals and communities that experienced a disproportionate, negative impact from cannabis prohibition, including but not limited to providing relief from criminal convictions and increasing economic opportunities;

(6) the status of racial and geographic diversity in the cannabis industry;

(7) proposed legislative changes, including but not limited to recommendations to streamline licensing systems and related administrative processes;new text begin andnew text end

deleted text begin (8) information on the adverse effects of second-hand smoke from any cannabis flower, cannabis products, and hemp-derived consumer products that are consumed by the combustion or vaporization of the product and the inhalation of smoke, aerosol, or vapor from the product; and deleted text end

deleted text begin (9)deleted text end new text begin (8)new text end recommendations for the levels of funding for:

deleted text begin (i) a coordinated education program to address and raise public awareness about the top three adverse health effects, as determined by the commissioner of health, associated with the use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products by individuals under 21 years of age; deleted text end

deleted text begin (ii) a coordinated education program to educate pregnant individuals, breastfeeding individuals, and individuals who may become pregnant on the adverse health effects of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products; deleted text end

deleted text begin (iii) training, technical assistance, and educational materials for home visiting programs, Tribal home visiting programs, and child welfare workers regarding safe and unsafe use of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products in homes with infants and young children; deleted text end

deleted text begin (iv) model programs to educate middle school and high school students on the health effects on children and adolescents of the use of cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other intoxicating or controlled substances; deleted text end

deleted text begin (v)deleted text end new text begin (i)new text end grants issued through the CanTrain, CanNavigate, CanStartup, and CanGrow programs;new text begin andnew text end

deleted text begin (vi)deleted text end new text begin (ii)new text end grants to organizations for community development in social equity communities through the CanRenew programdeleted text begin ;deleted text end new text begin .new text end

deleted text begin (vii) training of peace officers and law enforcement agencies on changes to laws involving cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products and the law's impact on searches and seizures; deleted text end

deleted text begin (viii) training of peace officers to increase the number of drug recognition experts; deleted text end

deleted text begin (ix) training of peace officers on the cultural uses of sage and distinguishing use of sage from the use of cannabis flower, including whether the Board of Peace Officer Standards and Training should approve or develop training materials; deleted text end

deleted text begin (x) the retirement and replacement of drug detection canines; and deleted text end

deleted text begin (xi) the Department of Human Services and county social service agencies to address any increase in demand for services. deleted text end

deleted text begin (g) In developing the recommended funding levels under paragraph (f), clause (9), items (vii) to (xi), the office shall consult with local law enforcement agencies, the Minnesota Chiefs of Police Association, the Minnesota Sheriff's Association, the League of Minnesota Cities, the Association of Minnesota Counties, and county social services agencies. deleted text end

new text begin (b) The annual report under this subdivision must include: new text end

new text begin (1) an assessment of available data and updated information regarding the impact of cannabis use on impaired driving; new text end

new text begin (2) an assessment of available data and updated information regarding the impact of the adverse effects of secondhand smoke from cannabis flower and cannabis products; new text end

new text begin (3) updated information from the Department of Human Services, Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals licensed under chapter 144 regarding the utilization of mental health and substance use disorder services, emergency room visits, and civil commitments; and new text end

new text begin (4) updated information about existing summary data on first episode psychosis programs. new text end

new text begin Subd. 4. new text end

new text begin Collaboration with other agencies and organizations. new text end

new text begin The office must collaborate with state agencies and leading organizations with expertise on cannabis-related programs to support education, prevention, public safety initiatives, and industry and market evaluations, including: new text end

new text begin (1) the Department of Employment and Economic Development; new text end

new text begin (2) the Department of Health; new text end

new text begin (3) the Department of Public Safety; new text end

new text begin (4) the Department of Education; new text end

new text begin (5) the Department of Human Services; new text end

new text begin (6) the Department of Children, Youth, and Families; new text end

new text begin (7) Direct Care and Treatment; new text end

new text begin (8) the Department of Agriculture; new text end

new text begin (9) local government organizations; new text end

new text begin (10) law enforcement agencies; and new text end

new text begin (11) county social service agencies. new text end

Sec. 10.

Minnesota Statutes 2024, section 342.07, subdivision 3, is amended to read:

Subd. 3.

Edible cannabinoid product handler endorsement.

(a) deleted text begin Any persondeleted text end new text begin A license holdernew text end seeking to manufacture, process, sell, handle, or store an edible cannabis product or lower-potency hemp edible, other than an edible cannabis product or lower-potency hemp edible that has been placed in its final packaging, must deleted text begin firstdeleted text end new text begin apply for andnew text end obtain an edible cannabinoid product handler endorsement.

(b) In consultation with the commissioner of agriculture, the office shall establish an edible cannabinoid product handler endorsement.

(c) The office must regulate edible cannabinoid product handlers in a manner consistent with Department of Agriculture regulation of food handlers under chapters 28A, 31, and 34A and associated rules, with the following exceptions:

(1) the office must issue an edible cannabinoid product handler endorsement, rather than a license;

(2) eligibility for an edible cannabinoid product handler endorsement is limited to persons who possess a valid license issued by the office;

(3) the office may not charge a fee for issuing or renewing the endorsement;

(4) the office must align the term and renewal period for edible cannabinoid product handler endorsements with the term and renewal period of the license issued by the office; and

(5) an edible cannabis product or new text begin a new text end lower-potency hemp edible must not be considered adulterated solely because the product or edible contains tetrahydrocannabinol, cannabis concentrate, hemp concentrate, artificially derived cannabinoids, or any other material extracted or derived from a cannabis plant, cannabis flower, hemp plant, or hemp plant parts.

(d) deleted text begin Thedeleted text end new text begin Annew text end edible cannabinoid product handler endorsement deleted text begin must prohibitdeleted text end new text begin prohibitsnew text end the manufacture of edible cannabis products at the same premises where food is manufactured, except for the limited production of edible products produced solely for product development, sampling, or testing. deleted text begin Thisdeleted text end new text begin Thenew text end limitation new text begin in this paragraph new text end does not apply to the manufacture of lower-potency hemp edibles.

new text begin (e) An edible cannabinoid product handler endorsement is available to the following license holders: new text end

new text begin (1) cannabis microbusinesses; new text end

new text begin (2) cannabis mezzobusinesses; new text end

new text begin (3) cannabis manufacturers; new text end

new text begin (4) cannabis macrobusinesses; and new text end

new text begin (5) lower-potency hemp edible manufacturers. new text end

new text begin (f) A lower-potency hemp edible manufacturer with an edible cannabinoid product handler endorsement may only manufacture lower-potency hemp edibles and must not add any cannabis flower, cannabis concentrate, or cannabinoid derived from cannabis flower or cannabis concentrate to a product consistent with the requirements in section 342.45. new text end

Sec. 11.

Minnesota Statutes 2024, section 342.09, subdivision 3, is amended to read:

Subd. 3.

Home extraction of cannabis concentrate by use of volatile solvent prohibited.

No person may use a volatile solvent to separate or extract cannabis concentrate or hemp concentrate without a cannabis microbusiness, cannabis mezzobusiness, new text begin cannabis macrobusiness, new text end cannabis manufacturer, deleted text begin medical cannabis combination business,deleted text end or lower-potency hemp edible manufacturer license issued under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 342.10, is amended to read:

342.10 LICENSES; TYPES.

The office shall issue the following types of license:

(1) cannabis microbusiness;

(2) cannabis mezzobusiness;

(3) cannabis cultivator;

(4) cannabis manufacturer;

(5) cannabis retailer;

(6) cannabis wholesaler;

(7) cannabis transporter;

(8) cannabis testing facility;

(9) cannabis event organizer;

(10) cannabis delivery service;

(11) lower-potency hemp edible manufacturer;

(12) lower-potency hemp edible wholesaler;

(13) lower-potency hemp edible retailer; and

(14) deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 13.

Minnesota Statutes 2025 Supplement, section 342.11, is amended to read:

342.11 LICENSES; FEES.

(a) The office shall require the payment of application fees, initial licensing fees, and renewal licensing fees as provided in this section. The initial license fee shall include the fee for initial issuance of the license and the first annual renewal. The renewal fee shall be charged at the time of the second renewal and each subsequent annual renewal thereafter. Nothing in this section prohibits a local unit of government from charging the retailer registration fee established in section 342.22. Application fees, initial licensing fees, and renewal licensing fees are nonrefundable.

(b) Application and licensing fees shall be as follows:

(1) for a cannabis microbusiness:

(i) an application fee of $500;

(ii) an initial license fee of $0; and

(iii) a renewal license fee of $2,000;

(2) for a cannabis mezzobusiness:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(3) for a cannabis cultivator:

(i) an application fee of $10,000;

(ii) an initial license fee of $20,000; and

(iii) a renewal license fee of $30,000;

(4) for a cannabis manufacturer:

(i) an application fee of $10,000;

(ii) an initial license fee of $10,000; and

(iii) a renewal license fee of $20,000;

(5) for a cannabis retailer:

(i) an application fee of $2,500;

(ii) an initial license fee of $2,500; and

(iii) a renewal license fee of $5,000;

(6) for a cannabis wholesaler:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(7) for a cannabis transporter:

(i) an application fee of $250;

(ii) an initial license fee of $500; and

(iii) a renewal license fee of $1,000;

(8) for a cannabis testing facility:

(i) an application fee of $5,000;

(ii) an initial license fee of $5,000; and

(iii) a renewal license fee of $10,000;

(9) for a cannabis delivery service:

(i) an application fee of $250;

(ii) an initial license fee of $500; and

(iii) a renewal license fee of $1,000;

(10) for a cannabis event organizer:

(i) an application fee of $750; deleted text begin anddeleted text end

(ii) an initial license fee of deleted text begin $750deleted text end new text begin $0new text end ;

new text begin (iii) a renewal license fee of $750; and new text end

new text begin (iv) a temporary cannabis event application fee of $750; new text end

(11) for a lower-potency hemp edible manufacturer:

(i) an application fee of $250;

(ii) an initial license fee of $1,000; and

(iii) a renewal license fee of $1,000;

(12) for a lower-potency hemp edible wholesaler:

(i) an application fee of $250;

(ii) an initial license fee of $10,000; and

(iii) a renewal license fee of $10,000;

(13) for a lower-potency hemp edible retailer:

(i) an application fee of $250 or, if the lower-potency hemp retailer operates more than one retail location, $250 per retail location;

(ii) an initial license fee of $250 or, if the lower-potency hemp retailer operates more than one retail location, $250 per retail location; and

(iii) a renewal license fee of $250 or, if the lower-potency hemp retailer operates more than one retail location, $250 per retail location; and

(14) for a deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end :

(i) an application fee of $10,000;

(ii) an initial license fee of $20,000; and

(iii) a renewal license fee of $70,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 342.12, is amended to read:

342.12 LICENSES; TRANSFERS; ADJUSTMENTS.

new text begin Subdivision 1. new text end

new text begin Transfer of licenses. new text end

(a) Licenses issued under this chapter that are available to all applicants pursuant to section 342.14, subdivision 1b, paragraph (c), may be freely transferred subject to the prior written approval of the office unless the license holder has not received a final site inspection or the license holder is a social equity applicant.

(b) Licenses issued as social equity licenses pursuant to either section 342.14, subdivision 1b, paragraph (b), or section 342.175, paragraph (b), may only be transferred to another social equity applicant for three years after the date on which the office issues the license. Three years after the date of issuance, a license holder may transfer a license to any entity. Transfer of a license that was issued as a social equity license must be reviewed by the Division of Social Equity and is subject to the prior written approval of the office.

(c) Preliminary license approval issued pursuant to section 342.14, subdivision 5, may not be transferred.

(d) A new license must be obtained whendeleted text begin :deleted text end

deleted text begin (1) the form of the licensee's legal business structure converts or changes to a different type of legal business structure; or deleted text end

deleted text begin (2)deleted text end the deleted text begin licenseedeleted text end new text begin license holder new text end dissolves; consolidates; reorganizes; undergoes bankruptcy, insolvency, or receivership proceedings; merges with another legal organization; or assigns all or substantially all of its assets for the benefit of creditors.

(e) Licenses must be renewed annually.

deleted text begin (f) License holders may petition the office to adjust the tier of a license issued within a license category if the license holder meets all applicable requirements. deleted text end

deleted text begin (g)deleted text end new text begin (f)new text end The office by rule may permit the relocation of a licensed cannabis business; permit the relocation of an approved operational location, including a cultivation, manufacturing, processing, or retail location; adopt requirements for the submission of a license relocation application; establish standards for the approval of a relocation application; and charge a fee not to exceed $250 for reviewing and processing applications. Relocation of a licensed premises pursuant to this paragraph does not extend or otherwise modify the license term of the license subject to relocation.

new text begin Subd. 2. new text end

new text begin License reclassification availability. new text end

new text begin (a) Subject to section 342.14, subdivision 1a, the office may determine whether licenses are available for a license holder that is a cannabis microbusiness to petition to reclassify the license holder as a cannabis mezzobusiness. The number of reclassified licenses approved for social equity qualified petitioners must be equal to or greater than the number of reclassified licenses approved for all applicants. new text end

new text begin (b) Subject to section 342.14, subdivision 1a, and limitations in section 342.515, subdivision 9, paragraph (b), the office may determine whether licenses are available for a license holder that is a cannabis mezzobusiness to petition to reclassify the license holder as a cannabis macrobusiness. The number of reclassified licenses approved for social equity qualified petitioners must be equal to or greater than the number of reclassified licenses approved for all applicants. new text end

new text begin (c) If the office determines that licenses are available pursuant to paragraph (a) or (b), the office must announce the date when the office will begin accepting petitions from applicants seeking reclassification. new text end

new text begin Subd. 3. new text end

new text begin Reclassification eligibility. new text end

new text begin (a) A cannabis microbusiness license holder is eligible to petition to reclassify the license holder as a cannabis mezzobusiness if: new text end

new text begin (1) the cannabis microbusiness has held and operated a medical cannabis cultivation endorsement for a minimum of two years; and new text end

new text begin (2) the cannabis microbusiness is in good standing with the office. new text end

new text begin (b) A cannabis mezzobusiness is eligible to petition to reclassify the license holder as a cannabis macrobusiness if: new text end

new text begin (1) the cannabis mezzobusiness has held and operated a medical cannabis cultivation endorsement for a minimum of two years; new text end

new text begin (2) the cannabis mezzobusiness has held and operated either a medical cannabis manufacturing endorsement or a medical cannabis retail endorsement; new text end

new text begin (3) the cannabis mezzobusiness is in good standing with the office; and new text end

new text begin (4) the cannabis mezzobusiness has not reclassified its license in the previous 12 months before the petition. new text end

new text begin Subd. 4. new text end

new text begin Reclassification petition process. new text end

new text begin (a) The office must establish procedures for the processing of petitions to reclassify under this subdivision. A license holder that seeks to reclassify its license as a cannabis mezzobusiness or cannabis macrobusiness must include in its petition the following information, if applicable: new text end

new text begin (1) its status as a social equity license holder; new text end

new text begin (2) the number of medical endorsements held and a description of the manner in which medical patients are provided services; new text end

new text begin (3) financial statements exhibiting the ability to operate a larger license; new text end

new text begin (4) a transition plan that describes how the license holder will comply with all statutes and rules applicable to the reclassified license; and new text end

new text begin (5) a description of the planned growth of the license holder up to the limits of the new license type. new text end

new text begin (b) After a license holder submits a petition to reclassify that contains all required information, the office must review the petition. The office may deny a petition if: new text end

new text begin (1) the petition is incomplete; new text end

new text begin (2) the license holder does not meet the qualifications under this section; new text end

new text begin (3) the petition contains a materially false statement about the applicant; new text end

new text begin (4) the license holder does not meet the qualifications under section 342.16; new text end

new text begin (5) the license holder is prohibited from holding a license under section 342.18, subdivision 2; new text end

new text begin (6) the license holder does not meet the minimum requirements under section 342.18, subdivision 3; new text end

new text begin (7) the petition was not submitted by the petition deadline; new text end

new text begin (8) the license holder has unpaid fines or fees or has engaged in substantial noncompliance with this chapter; or new text end

new text begin (9) the office determines that the license holder would be prohibited from holding a license for any other reason. new text end

new text begin (c) The office may request additional information from any license holder if the office determines that the information is necessary to review or process the petition. If the license holder does not provide the additional requested information within 14 calendar days of the office's request for information, the office may deny the petition. new text end

new text begin (d) If the office denies a petition, the office must notify the license holder of the denial and the basis for the denial. new text end

new text begin (e) A license holder whose petition is not denied under this subdivision is a qualified petitioner. new text end

new text begin Subd. 5. new text end

new text begin Reclassification approval process for petitioners to a cannabis mezzobusiness license. new text end

new text begin (a) The office shall reclassify the license of all qualified petitioners holding a social equity cannabis microbusiness license to a cannabis mezzobusiness license. new text end

new text begin (b) In the event the number of qualified petitioners not classified as social equity cannabis microbusiness license holders for a reclassification to a cannabis mezzobusiness license exceeds the number of qualified petitioners classified as social equity license holders, the office shall select qualified petitioners using the methods in section 342.14, subdivision 4. new text end

new text begin (c) Reclassification according to this subdivision must not remove the social equity license status from a social equity license. new text end

new text begin (d) A license holder that submits a petition to reclassify its license may continue operations pending office determination on the petition. A license holder that submits a petition to reclassify its license that is denied retains its existing license. new text end

new text begin Subd. 6. new text end

new text begin Reclassification approval process for petitioners to a cannabis macrobusiness license. new text end

new text begin (a) In the event the number of qualified petitioners for a reclassification to a cannabis macrobusiness license exceeds the number of available licenses for a cannabis macrobusiness determined by the office pursuant to subdivision 2, the office shall select qualified petitioners using the methods in section 342.14, subdivision 4. new text end

new text begin (b) Reclassification according to this subdivision must not remove the social equity license status from a social equity license. new text end

new text begin (c) A license holder that submits a petition to reclassify its license may continue operations pending office determination on the petition. A license holder that submits a petition to reclassify its license that is denied retains its existing license. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 1 is effective August 1, 2026. Subdivisions 2 to 6 are effective January 1, 2027. new text end

Sec. 15.

Minnesota Statutes 2025 Supplement, section 342.13, is amended to read:

342.13 LOCAL CONTROL.

(a) A local unit of government may not prohibit the possession, transportation, or use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products authorized under this chapter.

(b) Except as provided in section 342.22, a local unit of government may not prohibit the establishment or operation of a cannabis business or hemp business licensed under this chapter.

(c) new text begin By ordinance, new text end a local unit of government may adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. A local unit of government may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including a playground or athletic field.

(d) The office shall work with local units of government to:

(1) develop model ordinances for reasonable restrictions on the time, place, and manner of the operation of a cannabis business;

(2) develop standardized forms and procedures for the issuance of a retail registration pursuant to section 342.22; and

(3) develop model policies and procedures for the performance of compliance checks required under section 342.22.

deleted text begin (e) If a local unit of government is conducting studies or has authorized a study to be conducted or has held or has scheduled a hearing for the purpose of considering adoption or amendment of reasonable restrictions on the time, place, and manner of the operation of a cannabis business, the governing body of the local unit of government may adopt an interim ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning process and the health, safety, and welfare of its citizens. Before adopting the interim ordinance, the governing body must hold a public hearing. The interim ordinance may regulate, restrict, or prohibit the operation of a cannabis business within the jurisdiction or a portion thereof until January 1, 2025. deleted text end

deleted text begin (f)deleted text end new text begin (e)new text end Within 30 days of receiving a copy of an application from the office, a local unit of government shall certify on a form provided by the office whether a proposed cannabis business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the State Fire Code and new text begin the State new text end Building Code. The office deleted text begin maydeleted text end new text begin mustnew text end not issue a licensenew text begin to an applicantnew text end if the local unit of government informs the office that thenew text begin proposednew text end cannabis business does not deleted text begin meetdeleted text end new text begin comply withnew text end local zoning deleted text begin anddeleted text end new text begin ordinances,new text end land use lawsnew text begin , the State Fire Code, or the State Building Code and submits evidence of the proposed cannabis business's lack of compliancenew text end . If the local unit of government does not provide the certificationnew text begin under this paragraphnew text end to the office within 30 days of receiving a copy of an application from the office, the office may new text begin waive the requirement for local government certification and may new text end issue a licensenew text begin to the applicant. Regardless of whether the office has waived local government certification, the proposed cannabis business's location must meet the requirements of this chapternew text end .

deleted text begin (g)deleted text end new text begin (f)new text end The office by rule shall establish an expedited complaint process to receive, review, and respond to complaints made by a local unit of government about a cannabis business. At a minimum, the expedited complaint process shall require the office to provide an initial response to the complaint within seven days and perform any necessary inspections within 30 days. Nothing in this paragraph prohibits a local unit of government from enforcing a local ordinance. If a local unit of government notifies the office that a cannabis business other than a cannabis retailer, cannabis microbusiness, cannabis mezzobusinessnew text begin , cannabis macrobusiness,new text end or lower-potency hemp edible retailer with a retail operations endorsementdeleted text begin , or medical cannabis combination business operating a retail locationdeleted text end poses an immediate threat to the health or safety of the public, the office must respond within one business day and may take any action described in section 342.19 or 342.21.

deleted text begin (h)deleted text end new text begin (g)new text end A local government unit that issues a cannabis retailer registration under section 342.22 may, by ordinance, limit the number of licensed cannabis retailers, new text begin cannabis macrobusinesses with a retail operations endorsement, new text end cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement to no fewer than one registration for every 12,500 residents.new text begin After each increment of 12,500 residents, the number of required registrations must be rounded up to the next whole number of registrations.new text end

deleted text begin (i) If a county has one active registration for every 12,500 residents, a city or town within the county is not obligated to register a cannabis business. deleted text end

new text begin (h) A county that has consent from a city or town to issue retail registrations for the jurisdiction according to section 342.22, subdivision 1, may develop a process, in consultation with the consenting city or town, for issuing retail registrations throughout the county that meets the required minimum in paragraph (g) and limits the number of registrations allowed in each city or town that has delegated authority to the county. new text end

deleted text begin (j)deleted text end new text begin (i)new text end Nothing in this section shall prohibit a local government unit from allowing licensed cannabis retailers in excess of the minimums set in paragraph deleted text begin (h)deleted text end new text begin (g)new text end .

deleted text begin (k)deleted text end new text begin (j)new text end Notwithstanding the foregoing provisions, the state shall not issue a license to any cannabis business to operate in Indian country, as defined in United States Code, title 18, section 1151, of a Minnesota Tribal government without the consent of the Tribal government.

Sec. 16.

Minnesota Statutes 2024, section 342.14, subdivision 1b, is amended to read:

Subd. 1b.

Maximum number of licenses.

(a) Before July 1, deleted text begin 2026deleted text end new text begin 2027new text end , the office may issue up to the maximum total number of licenses in each license category listed in paragraphs (b) and (c).

(b) For licenses that are available to social equity applicants, the maximum number of licenses that the office may issue are:

(1) cannabis cultivator licenses, 25;

(2) cannabis manufacturer licenses, 12;

(3) cannabis retailer licenses, 75; and

(4) cannabis mezzobusiness licenses, 50.

(c) For licenses that are available to all applicants, the maximum number of licenses that the office may issue are:

(1) cannabis cultivator licenses, 25;

(2) cannabis manufacturer licenses, 12;

(3) cannabis retailer licenses, 75; and

(4) cannabis mezzobusiness licenses, 50.

(d) Beginning July 1, deleted text begin 2026deleted text end new text begin 2027new text end , the office must determine the number of cannabis cultivator licenses, cannabis manufacturer licenses, cannabis retailer licenses, and cannabis mezzobusiness licenses that the office will issue consistent with the goals identified in subdivision 1a. If the office makes any of those types of licenses available, the number of licenses available to social equity applicants must be equal to or greater than the number of licenses available to all applicants.

(e) The office may issue as many licenses as the office deems necessary of a license type that is not listed in this subdivision. If the office limits the number of license types not listed in this subdivision available in any licensing period, the office must identify the number of licenses available to social equity applicants and the number of licenses available to all applicants. The number of licenses available to social equity applicants must be equal to or greater than the number of licenses available to all applicants. The office is not required to issue a license for a license type that is not listed in this subdivision.

(f) The office is not required to issue licenses to meet the maximum number of licenses that may be issued under paragraphs (b) and (c).

Sec. 17.

Minnesota Statutes 2025 Supplement, section 342.14, subdivision 3, is amended to read:

Subd. 3.

Review.

(a) After an applicant submits an application that contains all required information and pays the applicable application fee, the office must review the application.

(b) The office may deny an application if:

(1) the application is incomplete;

(2) the application contains a materially false statement about the applicant or omits information required under subdivision 1;

(3) the applicant does not meet the qualifications under section 342.16;

(4) the applicant is prohibited from holding the license under section 342.18, subdivision 2;

(5) the application does not meet the minimum requirements under section 342.18, subdivision 3;

(6) the applicant fails to pay the applicable application fee;

(7) the application was not submitted by the application deadline;

(8) the applicant submitted more than one application for a license type; or

(9) the office determines that the applicant would be prohibited from holding a license for any other reason.

(c) If the office denies an application, the office must notify the applicant of the denial and the basis for the denial.

(d) The office may request additional information from any applicant if the office determines that the information is necessary to review or process the application. If the applicant does not provide the additional requested information within 14 calendar days of the office's request for information, the office may deny the application.

(e) An applicant whose application is not denied under this subdivision is a qualified applicant.

new text begin (f) An applicant's status as a qualified applicant under this section expires after six months. For an applicant who achieved qualified applicant status before June 1, 2026, qualified applicant status expires on January 1, 2027. The office must deny an application submitted by an applicant whose qualified applicant status has expired. An applicant whose qualified applicant status expired may apply anew according to this section. new text end

new text begin (g) If the office determines that an applicant is not eligible for a license under this section, the office may revoke the applicant's qualified applicant status. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2025 Supplement, section 342.14, subdivision 6, is amended to read:

Subd. 6.

Completed application; final authorization; issuance of license.

(a) Within 18 months of receiving notice of preliminary license approval, an applicant must provide:

(1) the address and legal property description of the location where the business will operate;

(2) the name of the local unit of government where the business will be located; and

(3) if applicable, an updated description of the location where the business will operate, an updated security plan, and any other additional information required by the office.

(b) Upon receipt of the information required under paragraph (a) from an applicant that has received preliminary license approval, the office must:

(1) forward a copy of the application to the local unit of government in which the business operates or intends to operate with a form for certification as to whether a proposed cannabis business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the state fire code and building code;

(2) schedule a site inspection; and

(3) require the applicant to pay the applicable license fee.

(c) The office may deny final authorization if:

(1) an applicant fails to submit any required information;

(2) the applicant submits a materially false statement about the applicant or fails to provide any required information;

(3) the office confirms that the cannabis business for which the office granted a preliminary license approval does not meet local zoning and land use laws;

(4) the applicant fails to pay the applicable license fee; deleted text begin ordeleted text end

(5) the office determines that the applicant is disqualified from holding the license or would operate in violation of the provisions of this chapterdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (6) the applicant fails to demonstrate that the proposed cannabis business's location complies with local zoning ordinances, the State Fire Code, or the State Building Code. new text end

(d) Within 90 days of receiving the information required under paragraph (a) and the results of any required background check, the office shall grant final authorization and issue the appropriate license or send the applicant a notice of rejection setting forth specific reasons that the office did not approve the application.

Sec. 19.

Minnesota Statutes 2024, section 342.14, subdivision 10, is amended to read:

Subd. 10.

Revocation or expiration of preliminary approval.

(a) A preliminary license approval expires after 18 months unless the office revokes the preliminary license approval or grants an extension. The office deleted text begin maydeleted text end new text begin mustnew text end grant deleted text begin a onetimedeleted text end new text begin an initialnew text end extension of up to six monthsnew text begin upon request by the applicant. The office may grant an additional extension of up to six monthsnew text end if an applicant has made good faith efforts to convert a preliminary license approval into a license. The office must not issue a license to an applicant whose preliminary license approval has expired.

(b) If the office determines that an applicant is not eligible for a license, the office may revoke a preliminary license approval.

(c) The office must notify an applicant if the office revokes the applicant's preliminary license approval or if the applicant's preliminary license approval expires.

Sec. 20.

Minnesota Statutes 2024, section 342.15, subdivision 2, is amended to read:

Subd. 2.

Criminal offenses; disqualifications.

deleted text begin (a)deleted text end The office may by rule determine whether any felony convictions, including but not limited to convictions for noncannabis controlled substance crimes in the first or second degree, human trafficking, labor trafficking, fraud, or financial crimes, disqualify an individual from holding or receiving a cannabis business license issued under this chapter or working for a cannabis business, and the length of any such disqualification. In adopting rules pursuant to this subdivision, the office shall not disqualify an individual for a violation of section 152.025.

deleted text begin (b) The office must not issue a cannabis business license to any person or business who was convicted of illegally selling cannabis after August 1, 2023, unless five years have passed since the date of conviction. deleted text end

deleted text begin (c) The office must not issue a cannabis business license to any person or business who violated this chapter after August 1, 2023, unless five years have passed since the date of violation. The office may set aside the violation if the office finds that the violation occurred as a result of a mistake made in good faith and the violation did not involve gross negligence, an illegal sale of cannabis, or cause harm to the public. The office must not issue a license to any person or business who the office has assessed a fine to under section 342.09, subdivision 6. deleted text end

Sec. 21.

Minnesota Statutes 2024, section 342.15, subdivision 5, is amended to read:

Subd. 5.

Civil and regulatory offenses; disqualifications.

new text begin (a) new text end The office may determine whether any civil or regulatory violations, as determined by another state agency, local unit of government, or any other jurisdiction, disqualify an individual from holding or receiving a cannabis business license issued under this chapter or disqualify an individual from working for a cannabis business, and the length of the disqualification. Upon the office's request, a state agency, as defined in section 13.02, subdivision 17, except for the Department of Revenue, may release civil investigative data, including data classified as protected nonpublic or confidential under section 13.39, subdivision 2, if the request is related to a specific applicant and the data is necessary to make a determination under this section.

new text begin (b) The office must not issue a cannabis business license to any person or business who violated this chapter after August 1, 2023, unless five years have passed since the date of the violation. The office must set aside the violation if the office finds that the violation: new text end

new text begin (1) occurred as a result of a mistake made in good faith; new text end

new text begin (2) did not involve gross negligence; new text end

new text begin (3) did not involve an illegal sale of cannabis; and new text end

new text begin (4) did not cause harm to the public. new text end

new text begin (c) The office must not issue a cannabis business license to any person or business who was assessed a fine by the office under section 342.09, subdivision 6. new text end

Sec. 22.

Minnesota Statutes 2025 Supplement, section 342.16, is amended to read:

342.16 CANNABIS BUSINESSES; GENERAL OWNERSHIP DISQUALIFICATIONS AND REQUIREMENTS.

(a) A license holder or new text begin an new text end applicant must meet each of the following requirements, if applicable, to hold or receive a cannabis license issued under this chapter:

(1) be at least 21 years of age;

(2) have completed an application for licensure or application for renewal;

(3) have paid the applicable application fee and license fee;

(4) if the applicant or license holder is a business entity, be incorporated in the state or otherwise formed or organized under the laws of the state;

(5) not be employed by the office or any state agency with regulatory authority under this chapter or the rules adopted pursuant to this chapter;

(6) not be a licensed peace officer, as defined in section 626.84, subdivision 1, paragraph (c);

(7) never have had a license previously issued under this chapter revoked, and never have had a cannabis license, a registration, an agreement, or another authorization to operate a cannabis business issued under the laws of another state revoked;

(8) have filed any previously required tax returns for a cannabis business;

(9) have paid and remitted any business taxes, gross receipts taxes, interest, or penalties due relating to the operation of a cannabis business;

(10) have fully and truthfully complied with all information requests of the office relating to license application and renewal;

(11) not be disqualified under section 342.15;

(12) not employ an individual who is disqualified from working for a cannabis business under this chapter;

(13) meet the ownership and operational requirements for the type of license and, if applicable, endorsement sought or held; and

(14) not have had any confirmed willful labor violation with thenew text begin Minnesotanew text end Department of Labordeleted text begin , National Labor Relations Board,deleted text end new text begin and Industrynew text end or the Occupational Safety and Health Administration within the last five years, as determined by the office.

(b) A health care practitioner who certifies qualifying medical conditions for patients is prohibited from:

(1) holding a direct or indirect economic interest in a cannabis business;

(2) serving as a cooperative member, director, manager, general partner, or employee of a cannabis business; or

(3) advertising with a cannabis business in any way.

(c) If the license holder or applicant is a business entity, every officer, director, manager, and general partner of the business entity must meet each of the requirements of this section.

(d) The ownership disqualifications and requirements under this section do not apply to a hemp business license holder or applicant.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2024, section 342.175, is amended to read:

342.175 SOCIAL EQUITY LICENSE CLASSIFICATION.

(a) The office must classify licenses listed in section 342.10, clauses (1) to (10) and deleted text begin (13)deleted text end new text begin (14)new text end as:

(1) available to social equity applicants who meet the requirements of section 342.17; and

(2) available to all applicants.

(b) The office must classify any license issued to a social equity applicant as a social equity license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 24.

Minnesota Statutes 2025 Supplement, section 342.18, subdivision 2, is amended to read:

Subd. 2.

Vertical integration prohibited; exceptions.

(a) Except as otherwise provided in this subdivision, the office shall not issue licenses to a single applicant that would result in the applicant being vertically integrated in violation of the provisions of this chapter.

(b) Nothing in this section prohibits or limits the issuance of microbusiness licenses, mezzobusiness licenses, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end licenses, or the issuance of lower-potency hemp edible manufacturer, lower-potency hemp edible wholesaler, and lower-potency hemp edible retailer licensesnew text begin ,new text end to the same person or entity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 25.

Minnesota Statutes 2024, section 342.185, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the meanings given.

(b) "Control" means the power to independently order or direct the management, managers, or policies of a cannabis business.

(c) "Financial institution" means any bank, mutual savings bank, consumer loan company, credit union, savings and loan association, trust company, or other lending institution under the jurisdiction of the Minnesota Department of Commerce, the United States Department of Commerce, or both.

(d) "Financier" means any person that:

(1) is not a financial institution or government entity;

(2) provides money as a gift, grant, or loan to an applicant for a cannabis business license, a cannabis business, or both; and

(3) expects to be repaid for the money provided, with or without reasonable interest.

(e) "Gross profit" means sales minus the cost of goods sold.

(f) "Revenue" means the income generated from the sale of goods and services associated with the main operations of a business before any costs or expenses have been deducted.

(g)new text begin (1)new text end "True party of interest" means an individual who as an individual or as part of another business:

deleted text begin (1)deleted text end new text begin (i)new text end is a sole proprietor of a sole proprietorship;

deleted text begin (2)deleted text end new text begin (ii)new text end is a partner in a general partnership;

deleted text begin (3)deleted text end new text begin (iii)new text end is a general partner or limited partner in a limited partnership, a limited liability partnership, or a limited liability limited partnership;

deleted text begin (4)deleted text end new text begin (iv)new text end is a member of a limited liability company or a manager in a limited liability company;

deleted text begin (5)deleted text end new text begin (v)new text end is a corporate officer or director or holds an equivalent title in a privately held corporation;

deleted text begin (6)deleted text end new text begin (vi)new text end is a stockholder in a privately held corporation;

deleted text begin (7)deleted text end new text begin (vii)new text end is part of a multilevel ownership structure;

deleted text begin (8)deleted text end new text begin (viii)new text end has membership rights to a nonprofit corporation in accordance with the provisions of the articles of incorporation or bylaws for the nonprofit corporation;

deleted text begin (9)deleted text end new text begin (ix)new text end has the right to receive some or all of the revenue, gross profit, or net profit from a cannabis business during any full or partial calendar or fiscal year; or

deleted text begin (10)deleted text end new text begin (x)new text end has the right to exercise control over a cannabis business.

new text begin (2) new text end True party of interest does not include:

deleted text begin (1)deleted text end new text begin (i)new text end an individual receiving payment for rent on a fixed basis under a lease or rental agreement;

deleted text begin (2)deleted text end new text begin (ii)new text end an employee of a cannabis business who receives a salary or hourly rate compensation if the employee does not otherwise hold an ownership interest in the cannabis business or have the right to exercise control over the cannabis business;

deleted text begin (3)deleted text end new text begin (iii)new text end an individual who receives a bonus or commission based on the individual's sales, if the bonus or commission does not exceed ten percent of the individual's sales in any given bonus or commission period and the terms of the bonus or commission-based compensation agreement is in writing;

deleted text begin (4)deleted text end new text begin (iv)new text end an individual with an ownership interest held or acquired solely for the purpose of passive investment as described in Code of Federal Regulations, title 31, section 800.243;

deleted text begin (5)deleted text end new text begin (v)new text end an individual contracting with a cannabis business to receive a commission for the sale of a business or real property;

deleted text begin (6)deleted text end new text begin (vi)new text end a consultant receiving a flat or hourly rate compensation under a written contractual agreement;

deleted text begin (7)deleted text end new text begin (vii)new text end any person with a contract or an agreement for services with a cannabis business, such as a branding or staffing company, as long as that person does not obtain any ownership or control of the cannabis business; or

deleted text begin (8)deleted text end new text begin (viii)new text end a financial institution.

Sec. 26.

Minnesota Statutes 2024, section 342.185, subdivision 2, is amended to read:

Subd. 2.

Application number limitations.

An individual may not be a true party of interest for more than one application for (1) any single type of license, or (2) multiple types of licenses if the individual would be prohibited from holding the licenses under section 342.18, subdivision 2. The limitation does not apply tonew text begin :new text end

new text begin (i) new text end an individual who holds no more than ten percent ownership of the business entitynew text begin ;new text end

new text begin (ii) a person who contracts with a city or county to operate no more than ten municipal cannabis stores under section 342.32, subdivision 5; or new text end

new text begin (iii) an individual who holds up to 33 percent controlling ownership of up to four business entities that are social equity applicantsnew text end .

Sec. 27.

Minnesota Statutes 2024, section 342.185, subdivision 3, is amended to read:

Subd. 3.

License number limitations.

An individual may not be a true party of interest for more than one license unless explicitly allowed by this chapter. The limitation does not apply tonew text begin :new text end

new text begin (1)new text end an individual who holds ten percent or less controlling ownership of the business entitynew text begin ;new text end

new text begin (2) a person who contracts with a city or county to operate no more than ten municipal cannabis stores under section 342.32, subdivision 5; or new text end

new text begin (3) an individual who holds up to 33 percent controlling ownership of up to four business entities that hold a social equity licensenew text end .

Sec. 28.

Minnesota Statutes 2024, section 342.19, subdivision 6, is amended to read:

Subd. 6.

Inspection of unlicensed businesses and facilities.

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

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

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

(1) inspect and investigate the commercial premises;

(2) inspect and copy records; and

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

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

(e) If the office finds any cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product on the inspected commercial premises, the office may deleted text begin eitherdeleted text end new text begin :new text end

new text begin (1)new text end immediately seize the item deleted text begin ordeleted text end new text begin ;new text end

new text begin (2)new text end affix to the item a tag, withdrawal from distribution order, or other appropriate marking providing notice that the cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product is, or is suspected of being, possessed or distributed in violation of this chapter, and has been detained or embargoed, and warning all persons not to remove or dispose of the item by sale or otherwise until permission for removal or disposal is given by the office or the courtdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (3) assess a civil penalty to the business pursuant to section 342.09, subdivision 6, and may treat the possession of the seized, embargoed, or detained product as having been sold. new text end

new text begin (f)new text end It is unlawful for a person to remove or dispose of a detained or embargoed cannabis plant, cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product by sale or otherwise without the office's or a court's permission and each transaction may be treated as a sale for the purposes of imposing a penalty pursuant to section 342.09, subdivision 6.

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

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

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

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

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

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

Sec. 29.

Minnesota Statutes 2024, section 342.20, subdivision 1, is amended to read:

Subdivision 1.

Not public data.

The following data collected, created, or maintained by the office are classified as nonpublic data, as defined by section 13.02, subdivision 9, or as private data on individuals, as defined by section 13.02, subdivision 12:

(1) application data submitted by an applicant for a cannabis business license or hemp business license, other than the data listed in subdivision 2;

(2) the identity of a complainant who has made a report concerning a license holder or an applicant that appears in inactive investigative data unless the complainant consents to the disclosure;

(3) data identifying retail or wholesale customers of a cannabis business or hemp business; deleted text begin anddeleted text end

(4) data identifying cannabis workers or hemp workersdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (5) data reported to the office using the statewide monitoring system established under section 342.05. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2024, section 342.20, subdivision 2, is amended to read:

Subd. 2.

Public data on license applicants.

(a) The following application data submitted by an applicant for a cannabis business license or hemp business license are public data:

(1) the applicant's name and designated address;

(2) data disclosing the ownership and control of the applicant;

(3) proof of trade name registration;

(4) data showing the legal possession of the premises where the business will operate;

(5) data describing deleted text begin whetherdeleted text end new text begin thenew text end volatile chemicals new text begin that new text end will be used in any methods of extraction or concentrationnew text begin , if applicablenew text end ;

(6) environmental plans;

(7) the type and number of other cannabis business licenses or hemp business licenses held by the applicant; and

(8) the name, address, location, dates, and hours of where any proposed cannabis event will take place.

deleted text begin (b) Scoring and other data generated by the office in its review of an applicant for a cannabis business license or hemp business license are public data. deleted text end

new text begin (b) The status of the applicant's application, except for an applicant's status as a social equity applicant, is public data. new text end

Sec. 31.

Minnesota Statutes 2024, section 342.20, subdivision 3, is amended to read:

Subd. 3.

Public application data on license holders.

Once an applicant for a cannabis business license or hemp business license becomes a license holder, all of the application new text begin or renewal new text end data that the license holder had previously submitted to the office are public data except that the following data remain classified as nonpublic data or private data on individuals:

(1) data identifying retail or wholesale customers of a cannabis business or hemp business;

(2) data identifying cannabis workers or hemp workers;

(3) tax returns, bank account statements, and other financial account information;

(4) business plansdeleted text begin ; anddeleted text end new text begin , including descriptions of sites, security, and operations of the license holder;new text end

new text begin (5) data regarding the license holder's accounting compliance; new text end

new text begin (6) data contained in vehicle disclosure forms and related documentation required in section 342.35, subdivision 2, clauses (1) and (2); and new text end

deleted text begin (5)deleted text end new text begin (7)new text end data classified as nonpublic data or private data on individuals by chapter 13 or other applicable law.

Sec. 32.

Minnesota Statutes 2024, section 342.20, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Test results data. new text end

new text begin Notwithstanding section 342.20, subdivision 1, clause (5), test results maintained by any cannabis business or hemp business must be made available for public review consistent with section 342.61, subdivision 5, paragraph (c). new text end

Sec. 33.

Minnesota Statutes 2024, section 342.22, subdivision 1, is amended to read:

Subdivision 1.

Registration required.

Before making retail sales to customers or patients, a cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , or lower-potency hemp edible retailer must register with the city, town, or county in which the retail establishment is located. A county may issue a registration in cases where a city or town has provided consent for the county to issue the registration for the jurisdiction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 34.

Minnesota Statutes 2025 Supplement, section 342.22, subdivision 3, is amended to read:

Subd. 3.

Issuance of registration.

(a) A local unit of government shall issue a retail registration to a cannabis microbusiness with a retail operations endorsement, cannabis mezzobusiness with a retail operations endorsement, cannabis retailer, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end operating a retail location, or lower-potency hemp edible retailer that:

(1) has a valid license or preliminary license approval issued by the office;

(2) has paid the registration fee or renewal fee pursuant to subdivision 2;

(3) is found to be in compliance with the requirements of this chapter at any preliminary compliance check that the local unit of government performs; and

(4) if applicable, is current on all property taxes and assessments at the location where the retail establishment is located.

(b) Before issuing a retail registration, the local unit of government may conduct a preliminary compliance check to ensure that the cannabis business or hemp business is in compliance with any applicable local ordinance established pursuant to section 342.13.

(c) A local unit of government shall renew the retail registration of a cannabis business or hemp business when the office renews the license of the cannabis business or hemp business.

(d) A retail registration issued under this section may not be transferred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 35.

Minnesota Statutes 2024, section 342.22, subdivision 4, is amended to read:

Subd. 4.

Compliance checks.

(a) A local unit of government shall conduct compliance checks of every cannabis business and hemp business with a retail registration issued by the local unit of government. During a compliance check, a local unit of government shall assess a business's compliance with age verification requirements and compliance with any applicable local ordinance established pursuant to section 342.13.

(b) A local unit of government must conduct unannounced age verification compliance checks of every cannabis business and hemp business at least once each calendar year. Age verification compliance checks must involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products under the direct supervision of a law enforcement officer or an employee of the local unit of government.

new text begin (c) A local government with retail registration authority that performs compliance checks must annually submit data regarding compliance checks to the office. The data must include: new text end

new text begin (1) the name of the cannabis business and the business's address, license number, and type of business under chapter 342; new text end

new text begin (2) the results of the compliance check, including whether the business was compliant with any applicable local ordinances; new text end

new text begin (3) the date and time of the compliance check; new text end

new text begin (4) a description of any specific violation of a local ordinance, including any failure to request documentation for age verification, an age verification method that violates this chapter, or any other violation of a local ordinance; and new text end

new text begin (5) any warnings, fines, suspensions, or other actions taken by the local government in response to the business's violation of a local ordinance. new text end

new text begin (d) A local government may provide the office with data from a compliance check before the annual submission date. A local government may provide the office with data from a compliance check by notifying the office of a suspended retail registration according to subdivision 5, paragraph (a). new text end

Sec. 36.

Minnesota Statutes 2024, section 342.22, subdivision 5, is amended to read:

Subd. 5.

Registration suspension and cancellation; notice to office; penalties.

(a) If a local unit of government determines that a cannabis business or hemp business with a retail registration issued by the local unit of government is not operating in compliance with the requirements of a local ordinance authorized under section 342.13 or that the operation of the business poses an immediate threat to the health or safety of the public, the local unit of government may suspend the retail registration of the cannabis business or hemp business. The local unit of government must immediately notify the office of the suspension and shall include a description of the grounds for the suspension.

(b) The office shall review the retail registration suspension and may order reinstatement of the retail registration or take any action described in section 342.19 or 342.21.

(c) The retail registration suspension must be for up to 30 days unless the office suspends the license and operating privilege of the cannabis business or hemp business for a longer period or revokes the license.

(d) The local unit of government may reinstate the retail registration if the local unit of government determines that any violation has been cured. The local unit of government must reinstate the retail registration if the office orders reinstatement.

(e) No cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , or lower-potency hemp edible retailer may make any sale to a customer or patient without a valid retail registration with a local unit of government and a valid license with any applicable endorsement from the office. A local unit of government may impose a civil penalty of up to $2,000 for each violation of this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 37.

Minnesota Statutes 2024, section 342.23, subdivision 5, is amended to read:

Subd. 5.

Financial relationship.

(a) deleted text begin Except for the lawful sale of cannabis plants, cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products in the ordinary course of business and as otherwise provided in this subdivision,deleted text end No cannabis business or hemp business may offer, give, accept, receive, or borrow money or anything else of value or accept or receive credit from any other cannabis businessdeleted text begin . This prohibition applies todeleted text end new text begin or hemp business, includingnew text end offering or receiving a benefit in exchange for preferential placement by a retailerdeleted text begin , includingdeleted text end new text begin and offering or receivingnew text end preferential placement on the retailer's shelves, display cases, or website. deleted text begin Thisdeleted text end new text begin Thenew text end prohibitionnew text begin in this paragraphnew text end applies to every cooperative member or every director, manager, and general partner of a cannabis business or hemp business.

(b) new text begin The prohibition in paragraph (a) does not apply to the lawful sale of cannabis plants, cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products in the ordinary course of business and as otherwise provided in this subdivision.new text end

deleted text begin Thisdeleted text end new text begin (c) Thenew text end prohibitionnew text begin in paragraph (a)new text end does not apply to merchandising credit in the ordinary course of business for a period not to exceed 30 days.

deleted text begin (c) Thisdeleted text end new text begin (d) Thenew text end prohibitionnew text begin in paragraph (a)new text end does not apply to free samples of usable cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products packaged in a sample jar protected by a plastic or metal mesh screen to allow customers to smell the cannabis flower, cannabis product, lower-potency hemp edible, or hemp-derived consumer product before purchase. A sample jar may not contain more than eight grams of usable cannabis flower, more than eight grams of a cannabis concentrate, an edible cannabis product infused with more than 100 milligrams of tetrahydrocannabinol, a lower-potency hemp edible infused with more than 50 milligrams of tetrahydrocannabinol, or a hemp-derived consumer product with a total weight of more than eight grams.

deleted text begin (d) Thisdeleted text end new text begin (e) Thenew text end prohibitionnew text begin in paragraph (a)new text end does not apply to free samples of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products provided to a retailer or cannabis wholesaler for the purposes of quality control and to allow retailers to determine whether to offer a product for sale. A sample provided for these purposes may not contain more than eight grams of usable cannabis flower, more than eight grams of a cannabis concentrate, an edible cannabis product infused with more than 100 milligrams of tetrahydrocannabinol, a lower-potency hemp edible infused with more than 50 milligrams of tetrahydrocannabinol, or a hemp-derived consumer product with a total weight of more than eight grams.

deleted text begin (e) Thisdeleted text end new text begin (f) Thenew text end prohibitionnew text begin in paragraph (a)new text end does not apply to any fee charged by a licensed cannabis event organizer to a cannabis business or hemp business for participation in a cannabis event.

new text begin (g) The prohibition in paragraph (a) does not apply to any transaction entered into in good faith by a cannabis business or hemp business for the sale of goods or services at fair market value. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

Minnesota Statutes 2024, section 342.23, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Cannabis and hemp business occupying the same premises. new text end

new text begin (a) A cannabis business or hemp business may occupy the same premises as another cannabis or hemp business provided that: new text end

new text begin (1) the businesses have the same majority owners in common; and new text end

new text begin (2) the majority owners in common each individually own more than ten percent in each of the businesses. new text end

new text begin (b) All sales or transport of regulated products to and from licensed cannabis businesses must be recorded in the statewide monitoring system. new text end

new text begin (c) A cannabis business occupying the same premises as another cannabis or hemp business as authorized by this subdivision may transport regulated products between businesses on the shared premises. new text end

new text begin (d) Businesses that occupy the same premises are jointly liable for any violations of this chapter or Minnesota Rules, chapter 9810. new text end

Sec. 39.

new text begin [342.245] ENDORSEMENTS. new text end

new text begin (a) The office must establish procedures for the processing of cannabis endorsements issued under this chapter. new text end

new text begin (b) The office may deny an endorsement application if: new text end

new text begin (1) the license holder has previously had an endorsement suspended, revoked, or canceled by the office within the last five years; new text end

new text begin (2) the license holder owes outstanding fines to the office for violations; or new text end

new text begin (3) the license holder does not meet the requirements to: new text end

new text begin (i) conduct activities authorized by the endorsement; or new text end

new text begin (ii) conduct activities authorized by the endorsement at the specific location indicated on the application. new text end

new text begin (c) The office must not charge a fee to an applicant for an endorsement application. new text end

new text begin (d) The office must align the term and renewal period for an endorsement with the term and renewal period of the applicant's license. new text end

Sec. 40.

Minnesota Statutes 2024, section 342.25, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

deleted text begin Everydeleted text end new text begin (a) Anew text end cannabis business deleted text begin with a license or endorsement authorizing the cultivation of cannabisdeleted text end new text begin seeking to cultivate cannabisnew text end must deleted text begin comply with the requirements of this sectiondeleted text end new text begin apply for and obtain a cannabis cultivation endorsementnew text end .

new text begin (b) A cannabis cultivation endorsement is available to the following license holders: new text end

new text begin (1) cannabis microbusinesses; new text end

new text begin (2) cannabis mezzobusinesses; new text end

new text begin (3) cannabis macrobusinesses; and new text end

new text begin (4) cannabis cultivators. new text end

Sec. 41.

Minnesota Statutes 2024, section 342.25, subdivision 2, is amended to read:

Subd. 2.

Cultivation records.

A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end must prepare a cultivation record for each batch of cannabis plants and cannabis flower in the form required by the office and must maintain each record for at least five years. deleted text begin Thedeleted text end new text begin Anew text end cultivation record must include the quantity and timing, deleted text begin wheredeleted text end new text begin ifnew text end applicable, of each pesticide, fertilizer, soil amendment, or plant amendment used to cultivate the batch, as well as any other information required by the office in rule. deleted text begin Thedeleted text end new text begin Anew text end cannabis business must deleted text begin presentdeleted text end new text begin providenew text end cultivation records to the office, the commissioner of agriculture, or the commissioner of health upon request.

Sec. 42.

Minnesota Statutes 2024, section 342.25, subdivision 3, is amended to read:

Subd. 3.

Agricultural chemicals and other inputs.

A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end is subject to rules promulgated by the office in consultation with the commissioner of agriculture, subject to subdivision 5, governing the use of pesticides, fertilizers, soil amendments, plant amendments, and other inputs to cultivate cannabis.

Sec. 43.

Minnesota Statutes 2024, section 342.25, subdivision 4, is amended to read:

Subd. 4.

Cultivation plan.

A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end must prepare, maintain, and execute an operating plan and a cultivation plan as directed by the office in rule, which must include but is not limited to:

(1) water usage;

(2) recycling;

(3) solid waste disposal; and

(4) a pest management protocol that incorporates integrated pest management principles to control or prevent the introduction of pests to the cultivation site.

Sec. 44.

Minnesota Statutes 2024, section 342.25, subdivision 5, is amended to read:

Subd. 5.

Agricultural chemicals and other inputs; pollinator protection.

(a) A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end must comply with chapters 18B, 18C, 18D, and any other pesticide, fertilizer, soil amendment, and plant amendment laws and rules enforced by the commissioner of agriculture.

(b) A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end must not apply pesticides when pollinators are present or allow pesticides to drift to flowering plants that are attractive to pollinators.

Sec. 45.

Minnesota Statutes 2024, section 342.25, subdivision 6, is amended to read:

Subd. 6.

Adulteration prohibited.

A business deleted text begin licensed or authorized to cultivate cannabisdeleted text end new text begin with a cannabis cultivation endorsementnew text end must not treat or otherwise adulterate cannabis plants or cannabis flower with any substance or compound that has the effect or intent of altering the color, appearance, weight, potency, or odor of the cannabis.

Sec. 46.

Minnesota Statutes 2024, section 342.25, subdivision 7, is amended to read:

Subd. 7.

Indoor or outdoor cultivation authorized; security.

A deleted text begin business licensed or authorized to cultivatedeleted text end cannabisnew text begin cultivator, cannabis microbusiness, cannabis mezzobusiness, or cannabis macrobusiness with a cannabis cultivation endorsementnew text end may cultivate cannabis plantsnew text begin eithernew text end indoors or outdoors, subject to the security, fencing, lighting, and any other requirements imposed by the office in rule.

Sec. 47.

Minnesota Statutes 2024, section 342.26, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

deleted text begin Everydeleted text end new text begin (a) Anew text end cannabis business deleted text begin with a license or endorsement authorizing the creation of cannabis concentrate and manufacture of cannabis products and hemp-derived consumer products for public consumption must comply with the requirements of this sectiondeleted text end new text begin seeking to manufacture cannabis products must apply for and obtain the applicable endorsement according to subdivisions 3 and 4new text end .

new text begin (b) An endorsement under subdivisions 3 and 4 is available to the following license holders: new text end

new text begin (1) cannabis microbusinesses; new text end

new text begin (2) cannabis mezzobusinesses; new text end

new text begin (3) cannabis macrobusinesses; and new text end

new text begin (4) cannabis manufacturers. new text end

Sec. 48.

Minnesota Statutes 2024, section 342.26, subdivision 2, is amended to read:

Subd. 2.

All manufacturer operations.

(a) Cannabis manufacturing must take place in an enclosed, locked facility that is used exclusively for the manufacture of cannabis products, creation of hemp concentrate, creation of artificially derived cannabinoids, creation of lower-potency hemp edibles, or creation of hemp-derived consumer products, except that a business that also holds a cannabis cultivator license may operate in a facility that shares general office space, bathrooms, entryways, and walkways.

(b) Cannabis manufacturing must take place on equipment that is used exclusively for the manufacture of cannabis products, creation of hemp concentrate, creation of artificially derived cannabinoids, creation of lower-potency hemp edibles, or creation of hemp-derived consumer products.

(c) A business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with an endorsement under subdivision 3 or 4new text end must comply with all applicable packaging, labeling, and health and safety requirements.

Sec. 49.

Minnesota Statutes 2024, section 342.26, subdivision 3, is amended to read:

Subd. 3.

new text begin Cannabis new text end extraction and concentrationnew text begin endorsement, hemp extraction and concentration endorsement, and creation of artificially derived cannabinoids endorsementnew text end .

(a) A new text begin cannabis new text end business deleted text begin licensed or authorizeddeleted text end new text begin seekingnew text end to manufacture deleted text begin cannabis products that createsdeleted text end cannabis concentratedeleted text begin , hemp concentrate, or artificially derived cannabinoidsdeleted text end must new text begin apply for and new text end obtain deleted text begin andeleted text end new text begin a cannabis extraction and concentration new text end endorsement deleted text begin from the officedeleted text end .

new text begin (b) A cannabis business seeking to manufacture hemp concentrate must apply for and obtain a hemp extraction and concentration endorsement. new text end

new text begin (c) A cannabis business seeking to manufacture artificially derived cannabinoids must apply for and obtain a creation of artificially derived cannabinoids endorsement. A cannabis business must hold a hemp extraction and concentration endorsement to apply for and obtain a creation of artificially derived cannabinoids endorsement. new text end

deleted text begin (b)deleted text end new text begin (d)new text end A business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end must inform the office of all methods of extraction and concentration that the manufacturer intends to use and identify the volatile chemicals, if any, that will be involved in the creation of cannabis concentrate or hemp concentrate. A cannabis deleted text begin manufacturerdeleted text end new text begin business with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end may not use a method of extraction and concentration or a volatile chemical without approval by the office.

deleted text begin (c)deleted text end new text begin (e)new text end A business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end must inform the office of all methods of conversion that the manufacturer will use, including any specific catalysts that the manufacturer will employ, to create artificially derived cannabinoids and the molecular nomenclature of all cannabinoids or other chemical compounds that the manufacturer will create. A business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end may not use a method of conversion or a catalyst without approval by the office.

deleted text begin (d)deleted text end new text begin (f)new text end A business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end must obtain a certification from an independent third-party industrial hygienist or professional engineer approving:

(1) all electrical, gas, fire suppression, and exhaust systems; and

(2) the plan for safe storage and disposal of hazardous substances, including but not limited to any volatile chemicals.

deleted text begin (e)deleted text end new text begin (g)new text end A business deleted text begin licensed or authorized to manufacture cannabis products that manufacturesdeleted text end new text begin with a cannabis extraction and concentration endorsement may manufacturenew text end cannabis concentrate from cannabis flower received from an unlicensed person who is at least 21 years of age new text begin and new text end must comply with all health and safety requirements established by the office. At a minimum, the office shall require the manufacturer to:

(1) store the cannabis flower in an area that is segregated from cannabis flower and hemp plant parts received from a licensed cannabis business;

(2) perform the extraction and concentration on equipment that is used exclusively for extraction or concentration of cannabis flower received from unlicensed individuals;

(3) store any cannabis concentrate in an area that is segregated from cannabis concentrate, hemp concentrate, or artificially derived cannabinoids derived or manufactured from cannabis flower or hemp plant parts received from a licensed cannabis business; and

(4) provide any cannabis concentrate only to the person who provided the cannabis flower.

deleted text begin (f)deleted text end new text begin (h)new text end Upon the sale of cannabis concentrate, hemp concentrate, or artificially derived cannabinoids to any person, cooperative, or business, a business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsementnew text end must provide a statement to the buyer that discloses the method of extraction and concentration or conversion used and any solvents, gases, or catalysts, including but not limited to any volatile chemicals, involved in that method.

Sec. 50.

Minnesota Statutes 2024, section 342.26, subdivision 4, is amended to read:

Subd. 4.

new text begin Edible cannabinoid product handler endorsement and new text end production of consumer productsnew text begin endorsementnew text end .

(a) A new text begin cannabis new text end business deleted text begin licensed or authorized to manufacture cannabis products that produces edible cannabis products or lower-potency hemp ediblesdeleted text end new text begin seeking to produce edible cannabis products or lower-potency hemp edibles new text end must new text begin apply for and new text end obtain an edible cannabinoid product handler endorsement from the office.

new text begin (b) A cannabis business with an edible cannabinoid product handler endorsement must comply with the requirements in section 342.07, subdivision 3. new text end

deleted text begin (b)deleted text end new text begin (c)new text end A new text begin cannabis new text end business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin seeking to produce hemp-derived consumer products or cannabis products other than edible cannabis products new text end must new text begin apply for and new text end obtain deleted text begin andeleted text end new text begin a production of consumer products new text end endorsement deleted text begin from the office to produce:deleted text end new text begin .new text end

deleted text begin (1) cannabis products other than edible cannabis products; or deleted text end

deleted text begin (2) hemp-derived consumer products other than lower-potency hemp edibles. deleted text end

deleted text begin (c)deleted text end new text begin (d) A cannabis business with an endorsement under this subdivision must ensure thatnew text end all areas within the licensed premises of deleted text begin adeleted text end new text begin thenew text end business deleted text begin licensed or authorized to manufacture cannabis products producing cannabis products, lower-potency hemp edibles, or hemp-derived consumer products mustdeleted text end meet the sanitary standards specified in rules adopted by the office.

deleted text begin (d)deleted text end new text begin (e)new text end A new text begin cannabis new text end business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with an endorsement under this subdivisionnew text end may only add chemicals or compounds approved by the office to cannabis concentrate, hemp concentrate, or artificially derived cannabinoids.

deleted text begin (e)deleted text end new text begin (f)new text end Upon the sale of any cannabis product, lower-potency hemp edible, or hemp-derived consumer product to a cannabis business or hemp business, a new text begin cannabis new text end business deleted text begin licensed or authorized to manufacture cannabis productsdeleted text end new text begin with an endorsement under this subdivisionnew text end must provide a statement to the buyer that discloses the product's ingredients, including but not limited to any chemicals or compounds and any major food allergens declared by name.

deleted text begin (f)deleted text end new text begin (g)new text end A business deleted text begin licensed or authorized to manufacture cannabis products shalldeleted text end new text begin with an endorsement under this subdivision mustnew text end not add any cannabis flower, cannabis concentrate, artificially derived cannabinoid, hemp plant part, or hemp concentrate to a product deleted text begin wheredeleted text end new text begin ifnew text end the manufacturer of the product holds a trademark to the product's name, except that a business licensed or authorized to manufacture cannabis products may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and deleted text begin wheredeleted text end new text begin ifnew text end the business licensed or authorized to manufacture cannabis products does not state or advertise to the customer that the final retail cannabis product, lower-potency hemp edible, or hemp-derived consumer product contains a trademarked food product.

Sec. 51.

Minnesota Statutes 2024, section 342.26, subdivision 5, is amended to read:

Subd. 5.

Exception.

Nothing in this section applies to the operations of a lower-potency hemp edible manufacturer.new text begin A lower-potency hemp edible manufacturer must comply with section 342.45 and applicable rules.new text end

Sec. 52.

Minnesota Statutes 2024, section 342.27, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

deleted text begin Everydeleted text end new text begin (a) Anew text end cannabis business deleted text begin with a license or endorsement authorizing thedeleted text end new text begin seeking to conductnew text end retail deleted text begin saledeleted text end new text begin salesnew text end of cannabis flower deleted text begin ordeleted text end new text begin ,new text end cannabis productsnew text begin , hemp-derived consumer products, or lower-potency hemp edible productsnew text end must deleted text begin comply with the requirements of this sectiondeleted text end new text begin apply for and obtain a cannabis retail operations endorsementnew text end .

new text begin (b) A cannabis retail operations endorsement is available to the following license holders: new text end

new text begin (1) cannabis microbusinesses; new text end

new text begin (2) cannabis mezzobusinesses; new text end

new text begin (3) cannabis macrobusinesses; and new text end

new text begin (4) cannabis retailers. new text end

Sec. 53.

Minnesota Statutes 2024, section 342.27, subdivision 2, is amended to read:

Subd. 2.

Sale of cannabis and cannabinoid products.

(a) A cannabis business with a license or endorsement authorizing the retail sale of cannabis flower or cannabis products may only sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to individuals who are at least 21 years of age.

(b) A cannabis business with a license or endorsement authorizing the retail sale of adult-use cannabis flower or adult-use cannabis products may sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products that:

(1) are obtained from a business licensed under this chapter; and

(2) meet all applicable packaging and labeling requirements.

(c) A cannabis business with a license or endorsement authorizing the retail sale of cannabis flower or cannabis products may sell up to two ounces of adult-use cannabis flower or hemp-derived consumer products consisting primarily of hemp plant parts, up to eight grams of adult-use cannabis concentrate or hemp-derived consumer products consisting primarily of hemp concentrate or artificially derived cannabinoids, and edible cannabis products and lower-potency hemp edibles infused with up to 800 milligrams of tetrahydrocannabinol during a single transaction to a customer.

(d) Edible deleted text begin adult-usedeleted text end cannabis products and hemp-derived consumer products intended to be eaten may not include more than ten milligrams of tetrahydrocannabinol per serving and a single package may not include more than a total of 200 milligrams of tetrahydrocannabinol. A package may contain multiple servings of ten milligrams of tetrahydrocannabinol provided that each serving is indicated by scoring, wrapping, or other indicators designating the individual serving size.

(e) Edible adult-use cannabis products and hemp-derived consumer products intended to be consumed as beverages may not include more than ten milligrams of tetrahydrocannabinol per serving. A single beverage container may not contain more than two servings.

new text begin EFFECTIVE DATE. new text end

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

Sec. 54.

Minnesota Statutes 2024, section 342.27, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Cannabis flower packaging endorsement. new text end

new text begin (a) A cannabis business seeking to package cannabis flower at a point of retail sale must apply for and obtain a cannabis flower packaging endorsement. new text end

new text begin (b) A cannabis business with a cannabis flower packaging endorsement must package cannabis flower in a container that: new text end

new text begin (1) complies with all packaging requirements in section 342.62; new text end

new text begin (2) complies with all applicable rules; and new text end

new text begin (3) includes an affixed label on the container that, at the final point of sale to a customer, meets all requirements in section 342.63 and applicable rules. new text end

new text begin (c) A cannabis business with a cannabis flower packaging endorsement may store bulk cannabis flower intended to be packaged at the point of sale outside of the secure storage area during operating hours. At the end of operating hours, the business must ensure that bulk cannabis flower is placed in the secure storage area. new text end

new text begin (d) A cannabis flower packaging endorsement is available to the following license holders only if the license holder holds a cannabis retail operations endorsement: new text end

new text begin (1) cannabis microbusinesses; new text end

new text begin (2) cannabis mezzobusinesses; new text end

new text begin (3) cannabis macrobusinesses; and new text end

new text begin (4) cannabis retailers. new text end

Sec. 55.

Minnesota Statutes 2024, section 342.27, subdivision 12, is amended to read:

Subd. 12.

Prohibitions.

A cannabis business with a license or endorsement authorizing the retail sale of cannabis flower or cannabis products shall not:

(1) sell cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to a person who is visibly intoxicated;

(2) knowingly sell more cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products than a customer is legally permitted to possess;

(3) give away immature cannabis plants or seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products;

(4) operate a drive-through window;

(5) allow for the dispensing of cannabis plants, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in vending machines; deleted text begin ordeleted text end

(6) sell cannabis plants, cannabis flower, or cannabis products if the cannabis retailer knows that any required security or statewide monitoring systems are not operationaldeleted text begin .deleted text end new text begin ; ornew text end

new text begin (7) sell medical cannabinoid products to a person who is not registered in the patient registry or is not enrolled in the registry program as a patient or caregiver. new text end

Sec. 56.

Minnesota Statutes 2025 Supplement, section 342.28, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

A cannabis microbusiness license, consistent with the specific license endorsement or endorsements, entitles the license holder to perform any or all of the following within the limits established by this section:

(1) grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant;

(2) make cannabis concentrate;

(3) make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

(4) manufacture artificially derived cannabinoids;

(5) manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption;

(6) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, a deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , a lower-potency hemp edible manufacturer, or a lower-potency hemp edible wholesaler;

(7) purchase hemp plant parts and propagules from an industrial hemp grower licensed under chapter 18K;

(8) purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K;

(9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from another cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products;

(10) package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers;

(11) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers;

(12) operate an establishment that permits on-site consumption of edible cannabis products and lower-potency hemp edibles; and

(13) perform other actions approved by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 57.

Minnesota Statutes 2024, section 342.28, subdivision 6, is amended to read:

Subd. 6.

new text begin Cannabis new text end cultivation endorsement.

A cannabis microbusiness that cultivates cannabis plants and harvests cannabis flower mustnew text begin apply for and obtain a cannabis cultivation endorsement andnew text end comply with the requirements in section 342.25.

Sec. 58.

Minnesota Statutes 2024, section 342.28, subdivision 7, is amended to read:

Subd. 7.

new text begin Cannabis new text end extraction and concentration endorsementnew text begin , hemp extraction and concentration endorsement, and creation of artificially derived cannabinoids endorsementnew text end .

new text begin (a) new text end A cannabis microbusiness deleted text begin that createsdeleted text end new text begin seeking to manufacturenew text end cannabis concentrate mustnew text begin apply for and obtain a cannabis extraction and concentration endorsement andnew text end comply with the requirements in section 342.26, subdivisions 2 and 3.

new text begin (b) A cannabis microbusiness seeking to manufacture hemp concentrate must apply for and obtain a hemp extraction and concentration endorsement and comply with the requirements in section 342.26, subdivisions 2 and 3. new text end

new text begin (c) A cannabis microbusiness seeking to manufacture artificially derived cannabinoids must apply for and obtain a creation of artificially derived cannabinoids endorsement and comply with the requirements in section 342.26, subdivisions 2 and 3. new text end

Sec. 59.

Minnesota Statutes 2025 Supplement, section 342.28, subdivision 8, is amended to read:

Subd. 8.

Production of consumer products endorsementnew text begin and edible cannabinoid product handler endorsementnew text end .

new text begin (a) new text end A cannabis microbusiness deleted text begin that manufactures edibledeleted text end new text begin seeking to manufacturenew text end cannabis productsdeleted text begin , lower-potency hemp products,deleted text end or hemp-derived consumer products mustnew text begin apply for and obtain a production of consumer products endorsement andnew text end comply with the requirements in section 342.26, subdivisions 2 and 4.

new text begin (b) A cannabis microbusiness seeking to manufacture edible cannabis products or lower-potency hemp edibles must apply for and obtain an edible cannabinoid product handler endorsement and comply with the requirements in section 342.26, subdivisions 2 and 4. new text end

Sec. 60.

Minnesota Statutes 2024, section 342.28, subdivision 9, is amended to read:

Subd. 9.

Retail operations endorsement.

new text begin (a) new text end A cannabis microbusiness deleted text begin that operatesdeleted text end new text begin seeking to operatenew text end a retail location mustnew text begin apply for and obtain a cannabis retail operations endorsement andnew text end comply with the requirements in section 342.27.

new text begin (b) A cannabis microbusiness with a cannabis retail operations endorsement may apply for and obtain a cannabis flower packaging endorsement subject to the requirements in section 342.27, subdivision 2a. new text end

Sec. 61.

Minnesota Statutes 2024, section 342.28, subdivision 11, is amended to read:

Subd. 11.

Transportation between facilities.

A cannabis microbusiness deleted text begin maydeleted text end new text begin seeking tonew text end transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products between facilities operated by the cannabis microbusiness deleted text begin ifdeleted text end new text begin must apply for and obtain an internal transporter endorsement. To obtain an internal transporter endorsement,new text end the cannabis microbusinessnew text begin mustnew text end :

(1) deleted text begin providesdeleted text end new text begin providenew text end the office with the information described in section 342.35, subdivision 2; and

(2) deleted text begin compliesdeleted text end new text begin complynew text end with the requirements of section 342.36.

Sec. 62.

Minnesota Statutes 2024, section 342.28, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Medical cannabis cultivation endorsement. new text end

new text begin (a) A cannabis microbusiness with a cultivation endorsement may apply for and obtain a medical cannabis cultivation endorsement described in section 342.51, subdivision 1b. new text end

new text begin (b) A cannabis microbusiness with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility and meets the requirements of section 342.51, subdivision 1b, may cultivate up to 1,000 square feet of plant canopy in addition to the limits in section 342.28, subdivision 2, paragraph (a). new text end

new text begin (c) A cannabis microbusiness with a medical cannabis cultivation endorsement that cultivates cannabis at an outdoor location and meets the requirements of section 342.51, subdivision 1b, may cultivate up to one-quarter acre of mature flowering plants in addition to the limits in section 342.28, subdivision 2, paragraph (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 63.

Minnesota Statutes 2024, section 342.28, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Medical cannabis manufacturer endorsement. new text end

new text begin (a) A cannabis microbusiness may apply for and obtain a medical cannabis manufacturer endorsement as described in section 342.51, subdivision 1c. new text end

new text begin (b) A cannabis microbusiness with a medical cannabis manufacturer endorsement that meets the requirements of section 342.51, subdivision 1c, may manufacture cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or medical cannabinoid products up to 25 percent above the limit established in rule for the manufacturing capacity of a cannabis microbusiness. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 64.

Minnesota Statutes 2024, section 342.28, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Medical cannabis retail endorsement. new text end

new text begin (a) A cannabis microbusiness with a retail endorsement may apply for and obtain a medical cannabis retail endorsement described in section 342.51, subdivision 1d. new text end

new text begin (b) A cannabis microbusiness with a medical cannabis retail endorsement that meets the requirements of section 342.51, subdivision 1d, may operate one additional retail location in excess of the limit in section 342.28, subdivision 2, paragraph (d), if at least one retail location is located in an area identified by the office as a high medical need area. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 65.

Minnesota Statutes 2025 Supplement, section 342.29, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

A cannabis mezzobusiness license, consistent with the specific license endorsement or endorsements, entitles the license holder to perform any or all of the following within the limits established by this section:

(1) grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as adult-use cannabis flower or for use in adult-use cannabis products;

(2) grow cannabis plants from seed or immature plant to mature plant and harvest cannabis flower from a mature plant for use as medical cannabis flower or for use in medical cannabinoid products;

(3) make cannabis concentrate;

(4) make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

(5) manufacture artificially derived cannabinoids;

(6) manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption;

(7) process medical cannabinoid products;

(8) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, a deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , a lower-potency hemp edible manufacturer, or a lower-potency hemp edible wholesaler;

(9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from a cannabis microbusiness, another cannabis mezzobusiness, a cannabis manufacturer, or a cannabis wholesaler for use in manufacturing adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products;

(10) purchase hemp plant parts and propagules from a licensed hemp grower licensed under chapter 18K;

(11) purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K;

(12) package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers;

(13) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses and to customers; and

(14) perform other actions approved by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 66.

Minnesota Statutes 2024, section 342.29, subdivision 5, is amended to read:

Subd. 5.

new text begin Cannabis new text end cultivation endorsement.

A cannabis mezzobusiness deleted text begin that cultivatesdeleted text end new text begin seeking to cultivate new text end cannabis plants and deleted text begin harvestsdeleted text end new text begin harvest new text end cannabis flower mustnew text begin apply for and obtain a cannabis cultivation endorsement andnew text end comply with the requirements in section 342.25.

Sec. 67.

Minnesota Statutes 2024, section 342.29, subdivision 6, is amended to read:

Subd. 6.

new text begin Cannabis new text end extraction and concentration endorsementnew text begin , hemp extraction and concentration endorsement, and creation of artificially derived cannabinoids endorsementnew text end .

new text begin (a) new text end A cannabis mezzobusiness deleted text begin that createsdeleted text end new text begin seeking to manufacturenew text end cannabis concentrate mustnew text begin apply for and obtain a cannabis extraction and concentration endorsement andnew text end comply with the requirements in section 342.26, subdivisions 2 and 3.

new text begin (b) A cannabis mezzobusiness seeking to manufacture hemp concentrate must apply for and obtain a hemp extraction and concentration endorsement and comply with the requirements in section 342.26, subdivisions 2 and 3. new text end

new text begin (c) A cannabis mezzobusiness seeking to manufacture artificially derived cannabinoids must apply for and obtain a creation of artificially derived cannabinoids endorsement and comply with the requirements in section 342.26, subdivisions 2 and 3. new text end

Sec. 68.

Minnesota Statutes 2025 Supplement, section 342.29, subdivision 7, is amended to read:

Subd. 7.

Production of consumer products endorsementnew text begin and edible cannabinoid product handler endorsementnew text end .

new text begin (a) new text end A cannabis mezzobusiness deleted text begin that manufactures edibledeleted text end new text begin seeking to manufacturenew text end cannabis productsdeleted text begin , lower-potency hemp products,deleted text end or hemp-derived consumer products mustnew text begin apply for and obtain a production of consumer products endorsement andnew text end comply with the requirements in section 342.26, subdivisions 2 and 4.

new text begin (b) A cannabis mezzobusiness seeking to manufacture edible cannabis products or lower-potency hemp edibles must apply for and obtain an edible cannabinoid product handler endorsement and comply with the requirements in section 342.26, subdivisions 2 and 4. new text end

Sec. 69.

Minnesota Statutes 2024, section 342.29, subdivision 8, is amended to read:

Subd. 8.

Retail operations endorsement.

new text begin (a) new text end A cannabis mezzobusiness deleted text begin that operatesdeleted text end new text begin seeking to operatenew text end a retail location mustnew text begin apply for and obtain a cannabis retail operations endorsement andnew text end comply with the requirements in section 342.27.

new text begin (b) A cannabis mezzobusiness with a cannabis retail operations endorsement may apply for and obtain a cannabis flower packaging endorsement subject to the requirements in section 342.27, subdivision 2a. new text end

Sec. 70.

Minnesota Statutes 2024, section 342.29, subdivision 8a, is amended to read:

Subd. 8a.

Multiple endorsements required.

new text begin (a) new text end Within 18 months of receiving a cannabis mezzobusiness license, a cannabis mezzobusiness must new text begin apply for and new text end obtain at least two of thenew text begin followingnew text end endorsements deleted text begin identified in subdivisions 5, 6, 7, and 8.deleted text end new text begin :new text end

new text begin (1) a cannabis cultivation endorsement under section 342.25; new text end

new text begin (2) a cannabis extraction and concentration endorsement under section 342.26; new text end

new text begin (3) a hemp extraction and concentration endorsement under section 342.26; new text end

new text begin (4) a creation of artificially derived cannabinoids endorsement under section 342.26; new text end

new text begin (5) an edible cannabinoid product handler endorsement under section 342.26; new text end

new text begin (6) a production of consumer products endorsement under section 342.26; or new text end

new text begin (7) a cannabis retail operations endorsement under section 342.27. new text end

new text begin (b)new text end If a cannabis mezzobusiness fails to obtain multiple endorsements within 18 months, the office may suspend, revoke, or not renew the license as provided in section 342.21.

Sec. 71.

Minnesota Statutes 2024, section 342.29, subdivision 10, is amended to read:

Subd. 10.

Transportation between facilities.

A cannabis mezzobusiness deleted text begin maydeleted text end new text begin seeking tonew text end transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products between facilities operated by the cannabis mezzobusiness deleted text begin ifdeleted text end new text begin must apply for and obtain an internal transporter endorsement. To obtain an internal transporter endorsement,new text end the cannabis mezzobusinessnew text begin mustnew text end :

(1) deleted text begin providesdeleted text end new text begin providenew text end the office with the information described in section 342.35, subdivision 2; and

(2) deleted text begin compliesdeleted text end new text begin complynew text end with the requirements of section 342.36.

Sec. 72.

Minnesota Statutes 2024, section 342.29, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Medical cannabis cultivation endorsement. new text end

new text begin (a) A cannabis mezzobusiness with a cultivation endorsement may apply for and obtain a medical cannabis cultivation endorsement described in section 342.51, subdivision 1b. new text end

new text begin (b) A cannabis mezzobusiness with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility and meets the requirements of section 342.51, subdivision 1b, may cultivate up to 3,000 square feet of plant canopy in addition to the limits in section 342.29, subdivision 2, paragraph (a). new text end

new text begin (c) A cannabis mezzobusiness with a medical cannabis cultivation endorsement that cultivates cannabis at an outdoor location and meets the requirements of section 342.51, subdivision 1b, may cultivate up to one-half acre of mature flowering plants in addition to the limits in section 342.29, subdivision 2, paragraph (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 73.

Minnesota Statutes 2024, section 342.29, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Medical cannabis manufacturer endorsement. new text end

new text begin (a) A cannabis mezzobusiness may apply for and obtain a medical cannabis manufacturer endorsement as described in section 342.51, subdivision 1c. new text end

new text begin (b) A cannabis mezzobusiness with a medical cannabis manufacturer endorsement that meets the requirements of section 342.51, subdivision 1c, may manufacture cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or medical cannabinoid products up to 25 percent above the limit established in rule for the manufacturing capacity of a cannabis mezzobusiness. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 74.

Minnesota Statutes 2024, section 342.29, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Medical cannabis retail endorsement. new text end

new text begin (a) A cannabis mezzobusiness with a retail endorsement may apply for and obtain a medical cannabis retail endorsement described in section 342.51, subdivision 1d. new text end

new text begin (b) A cannabis mezzobusiness with a medical cannabis retail endorsement that meets the requirements of section 342.51, subdivision 1d, may operate up to two additional retail locations in excess of the limit in section 342.29, subdivision 2, paragraph (d), if at least two retail locations are located in an area identified by the office as a high medical need area. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 75.

Minnesota Statutes 2025 Supplement, section 342.30, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

new text begin (a) A cannabis cultivator seeking to cultivate cannabis must apply for and obtain a cannabis cultivation endorsement. new text end

new text begin (b) new text end A cannabis cultivator deleted text begin license entitles the license holder todeleted text end new text begin with a cannabis cultivation endorsement maynew text end :

(1) grow cannabis plants within the approved amount of space from seed or immature plant to mature plant;

(2) harvest cannabis flower from a mature plant;

(3) package and label immature cannabis plants and seedlings and cannabis flower for sale to other cannabis businesses;

(4) sell immature cannabis plants and seedlings and cannabis flower to other cannabis businesses;

(5) transport cannabis flower to a cannabis manufacturer located on the same premises; and

(6) perform other actions approved by the office.

Sec. 76.

Minnesota Statutes 2024, section 342.30, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to be submitted under section 342.14, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis deleted text begin cultivator licensedeleted text end new text begin cultivation endorsementnew text end must submit the following information in a form approved by the office:

(1) an operating plan demonstrating the proposed size and layout of the cultivation facility; plans for wastewater and waste disposal for the cultivation facility; plans for providing electricity, water, and other utilities necessary for the normal operation of the cultivation facility; and plans for compliance with the applicable building code and federal and state environmental and workplace safety requirements;

(2) a cultivation plan demonstrating the proposed size and layout of the cultivation facility that will be used exclusively for cultivation including the total amount of plant canopy; and

(3) evidence that the business will comply with the applicable operation requirements for the license being sought.

Sec. 77.

Minnesota Statutes 2024, section 342.30, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Medical cannabis cultivation endorsement. new text end

new text begin (a) A cannabis cultivator with a cultivation endorsement may apply for and obtain a medical cannabis cultivation endorsement described in section 342.51, subdivision 1b. new text end

new text begin (b) A cannabis cultivator with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility and meets the requirements of section 342.51, subdivision 1b, may cultivate up to 6,000 square feet of plant canopy in addition to the limits in section 342.30, subdivision 2, paragraph (a). new text end

new text begin (c) A cannabis cultivator with a medical cannabis cultivation endorsement that cultivates cannabis at an outdoor location and meets the requirements of section 342.51, subdivision 1b, may cultivate up to one acre of mature flowering plants in addition to the limits in section 342.30, subdivision 2, paragraph (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 78.

Minnesota Statutes 2024, section 342.31, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to be submitted under section 342.14, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis deleted text begin manufacturer licensedeleted text end new text begin extraction and concentration endorsement, a hemp extraction and concentration endorsement, a creation of artificially derived cannabinoids endorsement, a production of consumer products endorsement, or an edible product handler endorsementnew text end must submit the following information in a form approved by the office:

(1) an operating plan demonstrating the proposed layout of the facility, including a diagram of ventilation and filtration systems; plans for wastewater and waste disposal for the manufacturing facility; plans for providing electricity, water, and other utilities necessary for the normal operation of the manufacturing facility; and plans for compliance with applicable building code and federal and state environmental and workplace safety requirements; and

(2) evidence that the business will comply with the applicable operation requirements for the endorsement being sought.

Sec. 79.

Minnesota Statutes 2024, section 342.31, subdivision 5, is amended to read:

Subd. 5.

Manufacturing operationsnew text begin and endorsementsnew text end .

new text begin (a) new text end A cannabis manufacturer must comply with the requirements in section 342.26.new text begin A cannabis manufacturer must apply for and obtain a cannabis extraction and concentration endorsement, a hemp extraction and concentration endorsement, a creation of artificially derived cannabinoids endorsement, a production of consumer products endorsement, or an edible product handler endorsement before conducting activities authorized only under the applicable endorsement.new text end

new text begin (b) A cannabis manufacturer may apply for and obtain a medical cannabis manufacturer endorsement as described in section 342.51, subdivision 1c. new text end

Sec. 80.

Minnesota Statutes 2025 Supplement, section 342.32, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

new text begin (a) A cannabis retailer seeking to conduct retail sales of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products must apply for and obtain a cannabis retail operations endorsement. new text end

new text begin (b) new text end A cannabis retailer deleted text begin license entitles the license holder todeleted text end new text begin with a cannabis retail operations endorsement maynew text end :

(1) purchase immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, cannabis wholesalers, and deleted text begin medicaldeleted text end cannabis deleted text begin combination businessesdeleted text end new text begin macrobusinessesnew text end ;

(2) purchase lower-potency hemp edibles from a licensed lower-potency hemp edible manufacturer or lower-potency hemp edible wholesaler;

(3) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to customers; and

(4) perform other actions approved by the office.

Sec. 81.

Minnesota Statutes 2024, section 342.32, subdivision 3, is amended to read:

Subd. 3.

Additional information required.

In addition to the information required to be submitted under section 342.14, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis retail deleted text begin licensedeleted text end new text begin operations endorsementnew text end must submit the following information in a form approved by the office:

(1) a list of every retail license held by the applicant and, if the applicant is a business, every retail license held, either as an individual or as part of another business, by each officer, director, manager, and general partner of the cannabis business;

(2) an operating plan demonstrating the proposed layout of the facility, including a diagram of ventilation and filtration systems; policies to avoid sales to individuals who are under 21 years of age; identification of a restricted area for storage; and plans to prevent the visibility of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to individuals outside the retail location; and

(3) evidence that the business will comply with the applicable operation requirements for the license being sought.

Sec. 82.

Minnesota Statutes 2024, section 342.32, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Medical cannabis retail endorsement and medical cannabis delivery endorsement. new text end

new text begin (a) A cannabis retailer with a retail endorsement may apply for and obtain a medical cannabis retail endorsement described in section 342.51, subdivision 1d. new text end

new text begin (b) A cannabis retailer with a medical cannabis retail endorsement that meets the requirements of section 342.51, subdivision 1d, may operate up to three additional retail locations in excess of the limit in subdivision 2, if three retail locations are located in an area identified by the office as a high medical need area. new text end

new text begin (c) A cannabis retailer with a medical cannabis retail endorsement and a cannabis delivery license may apply for and obtain a medical cannabis delivery endorsement as described in section 342.51, subdivision 1e. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 83.

Minnesota Statutes 2024, section 342.35, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

A cannabis transporter license entitles the license holder to transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products from cannabis microbusinesses, cannabis mezzobusinesses, new text begin cannabis macrobusinesses, new text end cannabis cultivators, cannabis manufacturers, cannabis wholesalers, lower-potency hemp edible manufacturers, and industrial hemp growers to cannabis microbusinesses, cannabis mezzobusinesses, new text begin cannabis macrobusinesses, new text end cannabis manufacturers, cannabis testing facilities, cannabis wholesalers, cannabis retailers, new text begin and new text end lower-potency hemp edible retailersdeleted text begin , and medical cannabis combination businessesdeleted text end and perform other actions approved by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 84.

Minnesota Statutes 2024, section 342.37, subdivision 1, is amended to read:

Subdivision 1.

Authorized actions.

A cannabis testing facility license entitles the license holder tonew text begin :new text end

new text begin (1)new text end obtain and test immature cannabis plants and seedlings, cannabis flower, cannabis products, hemp plant parts, hemp concentrate, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products from cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, cannabis wholesalers, lower-potency hemp edible manufacturers, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessesdeleted text end new text begin macrobusinessesnew text end , and industrial hemp growersnew text begin ; andnew text end

new text begin (2) perform other actions approved by the officenew text end .

Sec. 85.

Minnesota Statutes 2024, section 342.39, as amended by Laws 2025 chapter 31, section 66, is amended to read:

342.39 CANNABIS EVENT ORGANIZER LICENSING.

Subdivision 1.

Authorized actions.

new text begin (a) new text end A cannabis event organizer license entitles the license holder to organize deleted text begin adeleted text end temporary cannabis new text begin events, with each new text end event lasting no more than four daysnew text begin , and perform other actions approved by the officenew text end .

new text begin (b) For each temporary cannabis event, the license holder is required to submit additional information pursuant to section 342.40. new text end

Subd. 2.

Additional information required.

(a) In addition to the information required to be submitted under section 342.14, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis event organizer license must submit the following information in a form approved by the office:

(1) the type and number of any other cannabis business license held by the applicant;

deleted text begin (2) the address and location where the temporary cannabis event will take place; deleted text end

deleted text begin (3) the name of the temporary cannabis event; deleted text end

deleted text begin (4) a diagram of the physical layout of the temporary cannabis event showing where the event will take place on the grounds, all entrances and exits that will be used by participants during the event, all cannabis consumption areas, all cannabis retail areas where cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products will be sold, the location where cannabis waste will be stored, and any location where cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products will be stored; deleted text end

deleted text begin (5) a list of the name, number, and type of cannabis businesses and hemp businesses that will sell cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products at the event, which may be supplemented or amended within 72 hours of the time at which the cannabis event begins; deleted text end

deleted text begin (6) the dates and hours during which the cannabis event will take place; deleted text end

deleted text begin (7) proof of local approval for the cannabis event; and deleted text end

deleted text begin (8) evidence that the business will comply with the applicable operation requirements for the license being sought. deleted text end

deleted text begin (b) A person, cooperative, or business seeking a cannabis event organizer license may also disclose whether the person or any officer, director, manager, and general partner of a cannabis business is serving or has previously served in the military. deleted text end

new text begin (2) a description of the applicant's process for planning and organizing cannabis events, including: new text end

new text begin (i) the applicant's method of selecting a venue; new text end

new text begin (ii) the applicant's method of coordinating with and overseeing vendors that participate in cannabis events; and new text end

new text begin (iii) criteria that the applicant will use for selecting cannabis and hemp businesses to participate in cannabis events; new text end

new text begin (3) a description of security measures and protocols that the applicant will use, including: new text end

new text begin (i) the process that the applicant will use for hiring and contracting with licensed security personnel; new text end

new text begin (ii) the method that the applicant will use to ensure that security personnel do not consume cannabis or hemp products before or during cannabis events; new text end

new text begin (iii) the method that the applicant will use for managing and controlling crowds at cannabis events; new text end

new text begin (iv) the method that the applicant will use to ensure that access to an event is limited to individuals who are at least 21 years of age; and new text end

new text begin (v) the method that the applicant will use for managing access to consumption and retail areas; new text end

new text begin (4) a description of how the applicant will comply with state and local laws and rules at each cannabis event, including: new text end

new text begin (i) the applicant's method of verifying that each participating business has a valid license issued by the office; new text end

new text begin (ii) the applicant's method for ensuring that cannabis products are only sold by licensed retailers in designated retail areas; and new text end

new text begin (iii) the applicant's methods for handling any violations of this chapter or Minnesota Rules at cannabis events; new text end

new text begin (5) the applicant's procedures for protecting the health and safety of event participants, including: new text end

new text begin (i) emergency response plans, fire safety protocols, and the availability of medical assistance devices in the case of a medical emergency; and new text end

new text begin (ii) guidelines for managing consumption areas to prevent over-intoxication and other health risks; new text end

new text begin (6) the applicant's procedures for working with licensed cannabis transporters to handle the transportation of cannabis plants, products, and related items to and from events; new text end

new text begin (7) the applicant's management and disposal of cannabis waste in compliance with state laws and rules, including methods for securely collecting, storing, and transporting cannabis waste from each event site; and new text end

new text begin (8) the applicant's methods for reporting and documenting cannabis events to regulators for inspections and post-event evaluations. new text end

new text begin (b) Any commitment or statement that the applicant makes in an application to the office is an ongoing material condition of maintaining and renewing the applicant's cannabis event organizer license. new text end

new text begin (c) An application for a cannabis event organizer license is not required to include the information required under section 342.14, subdivision 1, paragraph (a), clauses (5), (6), (9), and (10). new text end

new text begin Subd. 2a. new text end

new text begin Attestation required. new text end

new text begin When renewing a cannabis event organizer license, a cannabis event organizer license holder with ten or more full-time equivalent employees must submit to the office an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement. new text end

Subd. 3.

Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis event organizer license may not hold a cannabis testing facility licensedeleted text begin , a lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler license, or a lower-potency hemp edible retailer licensedeleted text end .

deleted text begin (b) The office by rule may limit the number of cannabis event licenses that a person or business may hold. deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end For purposes of this subdivision, restrictions on the number or type of license that a business may hold apply to every cooperative member or every director, manager, and general partner of a cannabis business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 86.

Minnesota Statutes 2024, section 342.40, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Localdeleted text end new text begin Temporary eventnew text end approval.

new text begin (a) To host a temporary cannabis event under this section, new text end a cannabis event organizer must deleted text begin receivedeleted text end new text begin submit a site registration with the following information to the office in a form approved by the office:new text end

new text begin (1) proof that the event has receivednew text end local approval, including deleted text begin obtainingdeleted text end new text begin proof that the cannabis event organizer has obtainednew text end any necessary permits or licenses issued by a local unit of governmentdeleted text begin , before holding a cannabis event.deleted text end new text begin ;new text end

new text begin (2) the address and location where the temporary cannabis event will take place; new text end

new text begin (3) the name of the temporary cannabis event; new text end

new text begin (4) a diagram of the physical layout of the temporary cannabis event showing where the event will take place on the grounds; all entrances and exits that will be used by participants during the event; all cannabis consumption areas; all cannabis retail areas where cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products will be sold; the location where cannabis waste will be stored; and any location where cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products will be stored; new text end

new text begin (5) a list that includes: (i) the name of each cannabis business and hemp business that will sell cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products at the temporary cannabis event; (ii) the type of each business participating in the temporary cannabis event; and (iii) the number of businesses participating in the temporary cannabis event. The list may be amended up to 72 hours before the temporary cannabis event begins; new text end

new text begin (6) the dates and hours during which the temporary cannabis event will take place; and new text end

new text begin (7) evidence that the cannabis event organizer will comply with all applicable operation requirements. new text end

new text begin (b) Upon review of the temporary cannabis event application materials submitted by the license holder, the office may deny a temporary cannabis event if: new text end

new text begin (1) the application is incomplete; new text end

new text begin (2) the temporary cannabis event does not have local approval; new text end

new text begin (3) the application contains a materially false statement about the applicant or omits information required under subdivision 1; new text end

new text begin (4) the license holder fails to pay the applicable application fee in section 342.11, paragraph (b), clause (10), item (iv); and new text end

new text begin (5) the license holder fails to pass any applicable site inspection for the temporary cannabis event. new text end

new text begin (c) The office may request additional information from any applicant if the office determines that the information is necessary to review or process the application. If the applicant does not provide the additional requested information within seven calendar days of the office's request for information, the office may deny the application. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 87.

Minnesota Statutes 2025 Supplement, section 342.40, subdivision 7, is amended to read:

Subd. 7.

Cannabis event sales.

(a) Cannabis microbusinesses with a retail endorsement, cannabis mezzobusinesses with a retail endorsement, cannabis retailers, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessesdeleted text end new text begin macrobusinessesnew text end operating a retail location, and lower-potency hemp edible retailers, including the cannabis event organizer, may be authorized to sell cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to customers at a cannabis event.

(b) All sales of cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products at a cannabis event must take place in a retail area as designated in the premises diagram.

(c) Authorized retailers may only conduct sales within their specifically assigned area.

(d) Authorized retailers must verify the age of all customers pursuant to section 342.27, subdivision 4, before completing a sale and may not sell cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to an individual under 21 years of age.

(e) Authorized retailers may display one sample of each type of cannabis plant, adult-use cannabis flower, adult-use cannabis product, lower-potency hemp edible, and hemp-derived consumer product available for sale. new text begin Display new text end samples of adult-use cannabis and adult-use cannabis products must be stored in a sample jar or display case and be accompanied by a label or notice containing the information required to be affixed to the packaging or container containing adult-use cannabis flower and adult-use cannabis products sold to customers. A new text begin display new text end sample may not consist of more than eight grams of adult-use cannabis flower or adult-use cannabis concentrate, or an edible cannabis product infused with more than 100 milligrams of tetrahydrocannabinol. A cannabis retailer may allow customers to smell the adult-use cannabis flower or adult-use cannabis product before purchase.

(f) The notice requirements under section 342.27, subdivision 6, apply to authorized retailers offering cannabis plants, adult-use cannabis flower, adult-use cannabinoid products, and hemp-derived consumer products for sale at a cannabis event.

(g) Authorized retailers may not:

(1) sell adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to a person who is visibly intoxicated;

(2) knowingly sell more cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products than a customer is legally permitted to possess;

(3) sell medical cannabis flower or medical cannabinoid products; or

(4) allow for the dispensing of cannabis plants, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in vending machines.

(h) Except for new text begin display new text end samples of a cannabis plant, adult-use cannabis flower, adult-use cannabis product, lower-potency hemp edible, and hemp-derived consumer product, all cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale at a cannabis event must be stored in a secure, locked container that is not accessible to the public. Such items being stored at a cannabis event shall not be left unattended.

(i) All cannabis plants, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale at a cannabis event must comply with this chapter and rules adopted pursuant to this chapter regarding the testing, packaging, and labeling of those items.

(j) new text begin Authorized retailers must record in the statewide monitoring system new text end all cannabis plants, adult-use cannabis flower, and adult-use cannabis products sold, new text begin distributed, new text end damaged, or destroyed at deleted text begin adeleted text end new text begin thenew text end cannabis event deleted text begin must be recorded in the statewide monitoring systemdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 88.

Minnesota Statutes 2024, section 342.41, subdivision 1, is amended to read:

Subdivision 1.

Authorized actionsnew text begin ; medical cannabis delivery endorsementnew text end .

new text begin (a) new text end A cannabis delivery service license entitles the license holder to purchase cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products from licensed cannabis microbusinesses with a retail endorsement, cannabis mezzobusinesses with a retail endorsement, cannabis retailers, and deleted text begin medicaldeleted text end cannabis deleted text begin combination businessesdeleted text end new text begin macrobusinessesnew text end ; transport and deliver cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumable products to customers; and perform other actions approved by the office.

new text begin (b) A cannabis delivery license holder may apply for and obtain a medical cannabis delivery endorsement as described in section 342.51, subdivision 1e, to deliver medical cannabis flower and medical cannabinoid products to patients and persons enrolled in the registry. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 89.

new text begin [342.425] CANNABIS TRANSPORT TO TESTING FACILITY. new text end

new text begin (a) A cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, and cannabis manufacturer may transport samples of its cultivated or manufactured products to a cannabis testing facility for testing purposes if the cannabis business: new text end

new text begin (1) maintains a shipping manifest that meets the requirements for transportation manifests as established by rule; new text end

new text begin (2) transports the samples in a transport vehicle equipped with a storage compartment that meets the requirements of section 342.42, subdivision 5, and the requirements for secure transport as established by the office; new text end

new text begin (3) submits information in a form approved by the office that includes a list of all vehicles to be used in the transport of samples of products, the vehicle make, the vehicle model, the vehicle color, the vehicle identification number, and the license plate number; and new text end

new text begin (4) attests to holding an active commercial vehicle insurance policy for the transport vehicle. new text end

new text begin (b) This section expires February 1, 2029. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 90.

Minnesota Statutes 2025 Supplement, section 342.43, subdivision 2, is amended to read:

Subd. 2.

Multiple licenses; limits.

(a) A person, cooperative, or business may hold any combination of a lower-potency hemp edible manufacturer, a lower-potency hemp edible wholesaler, and a lower-potency hemp edible retailer license.

(b) Nothing in this section prohibits a person, cooperative, or business from holding a lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler license, a lower-potency hemp edible retailer license, or any combination of those licenses, and also holding a license to cultivate industrial hemp issued pursuant to chapter 18K.

(c) Nothing in this section prohibits a person, cooperative, or business from holding a lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler license, a lower-potency hemp edible retailer license, or any combination of those licenses, and also holding any other license, including but not limited to a license to prepare or sell food; sell tobacco, tobacco-related devices, electronic delivery devices as defined in section 609.685, subdivision 1, and nicotine and lobelia delivery products as described in section 609.6855; or manufacture or sell alcoholic beverages as defined in section 340A.101, subdivision 2.

(d) A person, cooperative, or business holding a lower-potency hemp edible manufacturer license, a lower-potency hemp edible wholesaler license, a lower-potency hemp edible retailer license, or any combination of those licenses, may deleted text begin notdeleted text end hold a cannabis business license.

Sec. 91.

Minnesota Statutes 2025 Supplement, section 342.44, subdivision 1, is amended to read:

Subdivision 1.

Application; contents.

(a) Except as otherwise provided in this subdivision, the provisions of this chapter relating to license applications, license selection criteria, general ownership disqualifications and requirements, and general operational requirements do not apply to hemp businesses.

(b) The office shall establish forms and procedures for the processing of hemp licenses issued under this chapter. At a minimum, any application to obtain or renew a hemp license shall include the following information, if applicable:

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

(2) the address and legal property description of the business;

(3) proof of trade name registration;

(4) certification that the applicant will comply with the requirements of this chapter relating to the ownership and operation of a hemp business;

(5) identification of one or more controlling persons or managerial employees as agents who shall be responsible for dealing with the office on all matters; and

(6) a statement that the applicant agrees to respond to the office's supplemental requests for information.

(c) An applicant for a lower-potency hemp edible manufacturer license must submit an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement. A labor peace agreement entered into on or after August 15, 2025, must address the duration of the election.

new text begin (d) The office may determine whether any civil or regulatory violation as determined by the office, another state agency, a local government, or any other jurisdiction disqualifies an individual or business from receiving a hemp business license issued under this chapter. The office may determine the length of the disqualification. new text end

Sec. 92.

Minnesota Statutes 2024, section 342.44, subdivision 2, is amended to read:

Subd. 2.

Issuance; eligibility; prohibition on transfer.

(a) The office may issue a hemp license to an applicant who:

(1) is at least 21 years of age;

(2) has completed an application for licensure or application for renewal and has fully and truthfully complied with all information requests relating to license application and renewal;

(3) has paid the applicable application and license fees pursuant to section 342.11;new text begin andnew text end

(4) is not employed by the office or any state agency with regulatory authority over this chapterdeleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (5) does not hold any cannabis business license. deleted text end

(b) Licenses must be renewed annually.

(c) Licenses may not be transferred.

Sec. 93.

Minnesota Statutes 2024, section 342.45, subdivision 3, is amended to read:

Subd. 3.

Extraction and concentration.

(a) A lower-potency hemp edible manufacturer deleted text begin that createsdeleted text end new text begin seeking to createnew text end hemp concentrate deleted text begin ordeleted text end new text begin must apply for and obtain a lower-potency hemp extraction and concentration endorsement. A lower-potency hemp edible manufacturer seeking to createnew text end artificially derived cannabinoids must new text begin apply for and new text end obtain deleted text begin andeleted text end new text begin a lower-potency hemp creation of artificially derived cannabinoidnew text end endorsement from the office.

(b) A lower-potency hemp edible manufacturer deleted text begin seeking andeleted text end new text begin with a lower-potency hemp extraction and concentrationnew text end endorsement deleted text begin to create hemp concentratedeleted text end must inform the office of all methods of extraction and concentration that the manufacturer intends to use and identify the volatile chemicals, if any, that will be involved in the creation of hemp concentrate. A lower-potency hemp edible manufacturer may not use a method of extraction and concentration or a volatile chemical without approval by the office.

(c) A lower-potency hemp edible manufacturer deleted text begin seeking andeleted text end new text begin with a lower-potency hemp creation of artificially derived cannabinoidnew text end endorsement deleted text begin to create artificially derived cannabinoidsdeleted text end must inform the office of all methods of conversion that the manufacturer will use, including any specific catalysts that the manufacturer will employ, to create artificially derived cannabinoids and the molecular nomenclature of all cannabinoids or other chemical compounds that the manufacturer will create. A deleted text begin business licensed or authorized to manufacture lower-potency hemp ediblesdeleted text end new text begin lower-potency hemp edible manufacturernew text end may not use a method of conversion or a catalyst without approval by the office.

(d) A lower-potency hemp edible manufacturernew text begin with a lower-potency hemp extraction and concentration endorsement or a lower-potency hemp creation of artificially derived cannabinoid endorsementnew text end must obtain a certification from an independent third-party industrial hygienist or professional engineer approving:

(1) all electrical, gas, fire suppression, and exhaust systems; and

(2) the plan for safe storage and disposal of hazardous substances, including but not limited to any volatile chemicals.

(e) Upon the sale of hemp concentrate or artificially derived cannabinoids to any person, cooperative, or business, a lower-potency hemp edible manufacturer must provide a statement to the buyer that discloses the method of extraction and concentration or conversion used and any solvents, gases, or catalysts, including but not limited to any volatile chemicals involved in that method.

Sec. 94.

Minnesota Statutes 2025 Supplement, section 342.46, subdivision 8, is amended to read:

Subd. 8.

On-site consumption.

(a) A lower-potency hemp edible retailer may permit on-site consumption of lower-potency hemp edibles on a portion of its premises if it has an on-site consumption endorsement.

(b) The office shall issue an on-site consumption endorsement to any lower-potency hemp edible retailer that also holds an on-sale license issued under chapter 340A.new text begin The office may issue an on-site consumption endorsement to a lower-potency hemp edible retailer that does not also hold an on-sale license issued under chapter 340A if the lower-potency hemp edible retailer submits proof of liability insurance as required by section 340A.409, except that the proof must be submitted to the office.new text end

(c) A lower-potency hemp edible retailer must ensure that lower-potency hemp edibles sold for on-site consumption comply with this chapter and rules adopted pursuant to this chapter regarding testing.

(d) Lower-potency hemp edibles sold for on-site consumption, other than lower-potency hemp edibles that are intended to be consumed as a beverage, must be served in the required packaging, but may be removed from the products' packaging by customers and consumed on site.

(e) Lower-potency hemp edibles that are intended to be consumed as a beverage may be served outside of the edibles' packaging if the information that is required to be contained on the label of a lower-potency hemp edible is posted or otherwise displayed by the lower-potency hemp edible retailer. Hemp workers who serve beverages under this paragraph are not required to obtain an edible cannabinoid product handler endorsement under section 342.07, subdivision 3.

(f) Food and beverages not otherwise prohibited by this subdivision may be prepared and sold on site if the lower-potency hemp edible retailer complies with all relevant state and local laws, ordinances, licensing requirements, and zoning requirements.

(g) A lower-potency hemp edible retailer may offer recorded or live entertainment if the lower-potency hemp edible retailer complies with all relevant state and local laws, ordinances, licensing requirements, and zoning requirements.

(h) In addition to the prohibitions under subdivision 7, a lower-potency hemp edible retailer with an on-site consumption endorsement may not:

(1) sell, give, furnish, or in any way procure for another lower-potency hemp edibles for the use of an obviously intoxicated person;

(2) sell lower-potency hemp edibles that are designed or reasonably expected to be mixed with an alcoholic beveragenew text begin , including containers containing multiple servings of a lower-potency hemp edible product intended to be consumed as a beveragenew text end ; deleted text begin ordeleted text end

(3)new text begin sell products from containers containing multiple servings of a lower-potency hemp edible product intended to be consumed as a beverage for on-site consumption; ornew text end

new text begin (4)new text end permit lower-potency hemp edibles that have been removed from the products' packaging to be removed from the premises of the lower-potency hemp edible retailer.

(i) A lower-potency hemp edible retailer is permitted to sell and may permit the consumption of lower-potency hemp edibles deleted text begin that are intended to be consumed as a beveragedeleted text end at an event hosted off site if:

(1) the event has been authorized by the local unit of government exercising jurisdiction over the location;

(2) the event organizer holds an on-sale license issued under chapter 340A; and

(3) the event does not exceed four days.

new text begin EFFECTIVE DATE. new text end

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

Sec. 95.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Types of medical cannabis endorsements; authorized actions. new text end

new text begin The office may issue the following types of medical cannabis endorsements to a license holder: new text end

new text begin (1) a medical cannabis cultivation endorsement; new text end

new text begin (2) a medical cannabis manufacturer endorsement; and new text end

new text begin (3) a medical cannabis retail endorsement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 96.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Medical cannabis cultivation endorsement. new text end

new text begin (a) A cannabis microbusiness, cannabis mezzobusiness, cannabis macrobusiness, or cannabis cultivator with a cannabis cultivation endorsement may apply for and obtain a medical cannabis cultivation endorsement. new text end

new text begin (b) A cannabis business with a medical cannabis cultivation endorsement must: new text end

new text begin (1) comply with the requirements of section 342.25; and new text end

new text begin (2) otherwise meet all applicable requirements established by the office. new text end

new text begin (c) A medical cannabis cultivation endorsement entitles the license holder to perform the actions authorized in section 342.30, subdivision 1. new text end

new text begin (d) A cannabis microbusiness with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility may cultivate an additional 1,000 square feet of cannabis indoors or one-quarter acre outdoors in addition to the limits in section 342.28. new text end

new text begin (e) A cannabis mezzobusiness with a medical cannabis cultivation endorsement may cultivate an additional 3,000 square feet of cannabis indoors or one-half acre outdoors in addition to the limits in section 342.29. new text end

new text begin (f) A cannabis cultivator with a medical cannabis cultivation endorsement may cultivate an additional 6,000 square feet indoors or one acre outdoors in addition to the limits in section 342.30. new text end

new text begin (g) Annually, at least one quarter of all cannabis flower cultivated by a cannabis business with a medical cannabis cultivation endorsement must be sold by the license holder to a cannabis business with a medical cannabis endorsement, including the license holder if the license holder has a medical cannabis manufacturing endorsement or medical cannabis retail endorsement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 97.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Medical cannabis manufacturer endorsement. new text end

new text begin (a) A cannabis microbusiness, cannabis mezzobusiness, cannabis macrobusiness, or cannabis manufacturer with a cannabis extraction and concentration endorsement, hemp extraction and concentration endorsement, or creation of artificially derived cannabinoids endorsement may apply for and obtain a medical cannabis manufacturer endorsement. new text end

new text begin (b) A cannabis business with a medical cannabis manufacturer endorsement must: new text end

new text begin (1) comply with the requirements of section 342.26; new text end

new text begin (2) manufacture high medical need products identified by the office; and new text end

new text begin (3) otherwise meet all applicable requirements established by the office. new text end

new text begin (c) A medical cannabis manufacturer endorsement entitles a license holder to: new text end

new text begin (1) manufacture medical cannabinoid products; and new text end

new text begin (2) sell medical cannabinoid products only to other cannabis businesses with a medical cannabis manufacturer endorsement or medical cannabis retail endorsement. new text end

new text begin (d) A medical cannabinoid product must be labeled with a "Minnesota Medical Cannabis" warning symbol and must only be sold to a person, patient, or caregiver enrolled in the registry program or a visiting patient. new text end

new text begin (e) A medical cannabis manufacturer endorsement held by a cannabis microbusiness entitles the license holder to exceed the manufacturing limits of cannabis by dry weight up to 25 percent above the limit established by the office in rule. new text end

new text begin (f) A medical cannabis manufacturer endorsement held by a cannabis mezzobusiness entitles the license holder to exceed the manufacturing limits of cannabis by dry weight up to 25 percent above the limit established by the office in rule. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 98.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 1d. new text end

new text begin Medical cannabis retail endorsement. new text end

new text begin (a) A cannabis microbusiness, cannabis mezzobusiness, cannabis macrobusiness, or cannabis retailer with a cannabis retail operations endorsement may apply for and obtain a medical cannabis retail endorsement. new text end

new text begin (b) A cannabis business with a medical cannabis retail endorsement must: new text end

new text begin (1) comply with all requirements of this section and section 342.27; new text end

new text begin (2) employ or contract with a medical cannabis consultant who has a certificate issued by the office and completed the required training or a licensed pharmacist under chapter 151 to consult and provide final authorization for a person enrolled in the registry program; new text end

new text begin (3) ensure availability of patient consultations as required under this section; new text end

new text begin (4) ensure that patients and caregivers enrolled in the registry program receive priority service; new text end

new text begin (5) carry all products identified by the office as high medical need; and new text end

new text begin (6) otherwise meet all applicable requirements established by the office. new text end

new text begin (c) The office must identify high medical need products and publish a list of all high medical need products on the office's publicly accessible website, including at least the following product types: new text end

new text begin (1) pill; new text end

new text begin (2) water-soluble cannabinoid multiparticulate, including granules, powder, and sprinkles; new text end

new text begin (3) orally dissolvable product, including lozenge, gum, mint, buccal tablet, and sublingual tablet; and new text end

new text begin (4) tincture. new text end

new text begin (d) A medical cannabis retail endorsement held by a cannabis business entitles the license holder to perform the actions authorized in section 342.32, subdivision 1. new text end

new text begin (e) A cannabis microbusiness with a medical retail endorsement may operate one additional retail location in excess of the limit in section 342.28, subdivision 2, paragraph (d), if at least one retail location is located in an area identified by the office as a high medical need area. new text end

new text begin (f) A cannabis mezzobusiness with a medical cannabis retail endorsement may operate two additional retail locations in excess of the limit in section 342.29, subdivision 2, paragraph (d), if the retail locations are located in an area identified by the office as a high medical need area. new text end

new text begin (g) A cannabis retailer with a medical cannabis retail endorsement may operate up to three additional retail locations in excess of the limit established in section 342.32, subdivision 2, if the retail locations are located in an area identified by the office as a high medical need area. new text end

new text begin (h) Notwithstanding paragraph (b), clause (2), a cannabis macrobusiness with a medical cannabis retail endorsement must employ at least one employee who earned a medical cannabis consultant certificate issued by the office and has completed the required training or has at least one employee who is a licensed pharmacist under chapter 151. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 99.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 1e. new text end

new text begin Additional authorized actions; medical cannabis delivery endorsement. new text end

new text begin A cannabis macrobusiness with a medical cannabis retail endorsement or a cannabis delivery license holder may apply for and obtain a medical cannabis delivery endorsement to deliver medical cannabis flower and medical cannabinoid products to patients enrolled in the registry program; registered designated caregivers; and parents, legal guardians, and spouses of an enrolled patient if the cannabis business: new text end

new text begin (1) provides the office with the information required in section 342.41, subdivision 2; and new text end

new text begin (2) complies with the requirements of subdivisions 2 and 3 and section 342.42. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 100.

Minnesota Statutes 2025 Supplement, section 342.51, subdivision 2, is amended to read:

Subd. 2.

Distribution requirements.

(a) Prior to distribution of medical cannabis flower or medical cannabinoid products to a person enrolled in the registry program, an employee of a cannabis business must:

(1) review and confirm the patient's enrollment in the registry program;

(2) verify that the person requesting the distribution of medical cannabis flower or medical cannabinoid products is the patient, the patient's registered designated caregiver, or the patient's parent, legal guardian, or spouse using the procedures established by the office;

(3) confirm that the patient had a consultation with (i) deleted text begin an employee with a validdeleted text end new text begin anew text end medical cannabis consultant new text begin who has a valid new text end certificate issued by the office; or (ii) deleted text begin an employee who isdeleted text end a licensed pharmacist under chapter 151 to determine the proper medical cannabis flower or medical cannabinoid product, dosage, and paraphernalia for the patient if required under subdivision 3;

(4) apply a patient-specific label on the medical cannabis flower or medical cannabinoid product that includes recommended dosage requirements and other information as required by the office; and

(5) provide the patient with any other information required by the office.

(b) A cannabis business with a medical cannabis retail endorsement may not deliver medical cannabis flower or medical cannabinoid products to a person enrolled in the registry program unless the cannabis business with a medical cannabis retail endorsement also holds a cannabis delivery service licensenew text begin or a medical cannabis delivery endorsementnew text end . The delivery of medical cannabis flower and medical cannabinoid products are subject to the provisions of section 342.42.

new text begin (c) A cannabis business with a medical cannabis retail endorsement may not distribute, sell, or deliver medical cannabis flower and medical cannabinoid products intended to be vaporized to a person enrolled in the registry program if the product is intended for a patient under 21 years of age. new text end

new text begin (d) A cannabis macrobusiness with a medical cannabis retail endorsement must confirm that the patient had a consultation with (1) an employee with a medical cannabis consultant certificate issued by the office and who has completed the required training, or (2) an employee who is a licensed pharmacist under chapter 151 to determine the proper medical cannabis flower or medical cannabinoid product, dosage, and paraphernalia for the patient if required under subdivision 3. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (c) is effective the day following final enactment. Paragraphs (a), (b), and (d) are effective January 1, 2027. new text end

Sec. 101.

Minnesota Statutes 2024, section 342.51, subdivision 3, is amended to read:

Subd. 3.

Final approval for distribution of medical cannabis flower and medical cannabinoid products.

(a) deleted text begin A cannabis worker who is employed by a cannabis business with a medical cannabis retail endorsement who is licensed as a pharmacist pursuant to chapter deleted text end deleted text begin 151deleted text end deleted text begin or certified as a medical cannabis consultant by the office is the only person who may givedeleted text end Final approval for the distribution of medical cannabis flower and medical cannabinoid productsdeleted text begin . Prior to the distribution of medical cannabis flower or medical cannabinoid products, a pharmacist or certified medical cannabis consultant employed by the cannabis business with a medical cannabis retail endorsement must consultdeleted text end new text begin may only be given by a licensed pharmacist under chapter 151 or a medical cannabis consultant who has a certificate issued by the office after consultationnew text end with the patient to determine the proper type of medical cannabis flower, medical cannabinoid product, or medical cannabis paraphernalia, and the proper dosage for the patient after reviewing the range of chemical compositions of medical cannabis flower or medical cannabinoid product intended for distribution:

(1) if the patient is purchasing the medical cannabis flower or medical cannabinoid product for the first time;

(2) if the patient purchases medical cannabis flower or a medical cannabinoid product that the patient must administer using a different method than the patient's previous method of administration;

(3) if the patient purchases medical cannabis flower or a medical cannabinoid product with a cannabinoid concentration of at least double the patient's prior dosage; or

(4) upon the request of the patient.

(b) For purposes of this subdivision, a consultation may be conducted remotely by secure videoconference, telephone, or other remote means, as long as:

(1) the pharmacist or consultant engaging in the consultation is able to confirm the identity of the patient; and

(2) the consultation adheres to patient privacy requirements that apply to health care services delivered through telemedicine.

new text begin (c) A cannabis macrobusiness must have an employee who is either a medical cannabis consultant who has a certificate issued by the office and completed the required training or a licensed pharmacist under chapter 151. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 102.

Minnesota Statutes 2024, section 342.51, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin The office may enforce this section under the relevant provisions of section 342.19, including but not limited to issuing administrative orders, embargoing products, and imposing civil penalties. The office may suspend or revoke the medical cannabis endorsement of a license holder if the office determines that the business is not actively participating in the medical cannabis market by not making available at each retail location high medical need products identified by the office within 24 hours of a patient request or otherwise failing to comply with the requirements of this section or this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 103.

Minnesota Statutes 2024, section 342.515, as amended by Laws 2025, chapter 31, sections 89 and 90, is amended to read:

342.515 deleted text begin MEDICALdeleted text end CANNABIS deleted text begin COMBINATION BUSINESSESdeleted text end new text begin MACROBUSINESSESnew text end .

Subdivision 1.

Authorized actions.

deleted text begin (a) A person, cooperative, or business holding a medical cannabis combination business license is prohibited from owning or operating any other cannabis business or hemp business or holding an active registration agreement under section 152.25, subdivision 1. deleted text end

deleted text begin (b) A person or business may hold only one medical cannabis combination business license. deleted text end

deleted text begin (c)deleted text end new text begin (a)new text end A deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusiness new text end licensenew text begin , consistent with the requirements of specific license endorsements approved by the office,new text end entitles the license holder to perform deleted text begin any or all ofdeleted text end the following deleted text begin within the limits established by this sectiondeleted text end new text begin actionsnew text end :

(1) grow cannabis plants from seed or immature plant to mature plant deleted text begin anddeleted text end new text begin ,new text end harvest adult-use cannabis flower and medical cannabis flower from a mature plantnew text begin , package and label cannabis flower for sale to other cannabis businesses, and sell immature cannabis plants and seedlings and cannabis flower to other cannabis businessesnew text end ;

(2) make cannabis concentrate;

(3) make hemp concentrate, including hemp concentrate with a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;

(4) manufacture artificially derived cannabinoids;

deleted text begin (5) manufacture medical cannabinoid products; deleted text end

deleted text begin (6)deleted text end new text begin (5)new text end manufacturenew text begin , package, and labelnew text end adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for public consumption;

deleted text begin (7)deleted text end new text begin (6)new text end purchase immature cannabis plants and seedlings deleted text begin anddeleted text end new text begin ,new text end cannabis flowernew text begin , cannabis products, lower-potency hemp edibles, and hemp-derived consumer productsnew text end from a cannabis microbusiness, a cannabis mezzobusiness, new text begin a cannabis cultivator, new text end a cannabis manufacturer, a cannabis wholesaler, deleted text begin ordeleted text end another deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusiness, a lower-potency hemp edible manufacturer, or a lower-potency hemp edible wholesalernew text end ;

deleted text begin (8)deleted text end new text begin (7)new text end purchase hemp plant parts and propagules from an industrial hemp grower licensed under chapter 18K;

deleted text begin (9)deleted text end new text begin (8)new text end purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler, or another deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end ;

deleted text begin (10)deleted text end new text begin (9)new text end purchase hemp concentrate from an industrial hemp processor licensed under chapter 18K;

deleted text begin (11) manufacture, package, and label medical cannabis flower and medical cannabinoid products for sale to cannabis businesses with a medical cannabis processor endorsement, cannabis businesses with a medical cannabis retail endorsement, other medical cannabis combination businesses, and persons in the registry program; deleted text end

deleted text begin (12) transport and deliver medical cannabis flower and medical cannabinoid products to medical cannabis processors, medical cannabis retailers, other medical cannabis combination businesses, patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient; deleted text end

deleted text begin (13) manufacture, package, and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers and other cannabis businesses; deleted text end

deleted text begin (14) sell medical cannabis flower and medical cannabinoid products to other cannabis businesses with a medical endorsement, other medical cannabis combination businesses, and patients enrolled in the registry program, registered designated caregivers, and parents, legal guardians, and spouses of an enrolled patient; deleted text end

deleted text begin (15)deleted text end new text begin (10)new text end sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law deleted text begin to other cannabis businesses anddeleted text end to new text begin other cannabis businesses and to new text end customers;

deleted text begin (16) transport immature cannabis plants and seedlings, adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and other products authorized by law to other cannabis businesses; deleted text end

deleted text begin (17)deleted text end new text begin (11)new text end sell deleted text begin and transportdeleted text end lower-potency hemp edibles to lower-potency hemp edible retailers and lower-potency hemp edible wholesalers; and

deleted text begin (18)deleted text end new text begin (12)new text end perform other actions approved by the office.

deleted text begin (d) A medical cannabis combination business is not required to obtain a medical cannabis endorsement to perform any actions authorized under this section. deleted text end

new text begin (b) A cannabis macrobusiness must apply for and obtain a medical cannabis manufacturing endorsement and at least one other medical cannabis endorsement identified in section 342.51. new text end

Subd. 2.

Cultivationnew text begin endorsementnew text end ; size limitations.

new text begin (a) A cannabis macrobusiness seeking to cultivate cannabis plants and harvest cannabis flower must obtain a cannabis cultivation endorsement and comply with section 342.25. new text end

new text begin (b) A cannabis macrobusiness that obtains a cannabis cultivation endorsement must apply for and obtain a medical cannabis cultivation endorsement and comply with section 342.51, subdivision 1b. new text end

deleted text begin (a)deleted text end new text begin (c)new text end A deleted text begin medicaldeleted text end cannabis deleted text begin combination business may cultivate cannabis to be sold as medical cannabis flower or used in medical cannabinoid products in an area of up to 60,000 square feet of plant canopy subject to the limits on adult-use cannabis cultivation in paragraph (c). A medical cannabis combination business may cultivate cannabis and manufacture cannabis in more than one location, except the aggregate total of plant canopy in all locations must count toward the business' canopy limit.deleted text end new text begin macrobusiness that cultivates cannabis at an indoor facility may cultivate up to 38,000 square feet of plant canopy. The office may adjust plant canopy limits upward to meet market demand consistent with the goals identified in section 342.02, subdivision 1.new text end

deleted text begin (b)deleted text end new text begin (d)new text end A deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end deleted text begin may cultivate cannabis to be sold as adult-use cannabis flower or used in adult-use cannabis products in an area authorized by the office as described in paragraph (c).deleted text end new text begin macrobusiness that cultivates cannabis at an outdoor location may cultivate up to one acre of mature, flowering plants.new text end

deleted text begin (c) The office shall authorize a medical cannabis combination business to cultivate cannabis for sale in the adult-use market in an area of plant canopy that is equal to one-half of the area the business used to cultivate cannabis sold in the medical market in the preceding year. The office shall establish an annual verification and authorization procedure. The office may increase the area of plant canopy in which a medical cannabis combination business is authorized to cultivate cannabis for sale in the adult-use market between authorization periods if the business demonstrates a significant increase in the sale of medical cannabis and medical cannabis products. deleted text end

new text begin (e) A cannabis macrobusiness with a cannabis cultivation endorsement and a retail operations endorsement may package and label adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to customers. new text end

new text begin (f) A cannabis macrobusiness with a medical cannabis cultivation endorsement and a medical cannabis retail endorsement may package and label medical cannabis flower and medical cannabinoid products for sale to patients enrolled in the registry program; registered designated caregivers; and parents, legal guardians, and spouses of an enrolled patient. new text end

Subd. 3.

deleted text begin Manufacturingdeleted text end new text begin Manufacturer endorsementnew text end ; size limitations.

new text begin (a) By rule, new text end the office may establish limits on cannabis manufacturing that are consistent with the area of plant canopy a business is authorized to cultivate.new text begin Until the office establishes limits by rule, a cannabis macrobusiness must not use more than 90,000 pounds of cannabis or its dry-weight equivalent of raw concentrates to manufacture cannabis products.new text end

new text begin (b) A cannabis macrobusiness must apply for and obtain a medical cannabis manufacturer endorsement and must comply with section 342.51, subdivision 1c. new text end

new text begin (c) A cannabis macrobusiness may apply for and obtain one or more cannabis manufacturer endorsements identified in section 342.26. new text end

Subd. 4.

Retailnew text begin operationsnew text end new text begin endorsement;new text end locations.

new text begin (a) new text end A deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusiness with a retail operations endorsementnew text end may operate up to deleted text begin one retail location in each congressional district. A medical cannabis combination business must offer medical cannabis flower, medical cannabinoid products, or both at every retail location.deleted text end new text begin eight retail locations and, if operating more than five retail locations, must ensure that at least three retail locations are located in areas identified by the office as high medical need areas.new text end

new text begin (b) A cannabis macrobusiness may apply for and obtain a retail operations endorsement and must comply with section 342.27. new text end

new text begin (c) A cannabis macrobusiness with a retail operations endorsement must apply for and obtain a medical cannabis retail operations endorsement and comply with section 342.51, subdivision 1d. new text end

new text begin (d) A cannabis macrobusiness with a retail operations endorsement and a medical cannabis retail operations endorsement must carry and make available for sale, at each retail location, all high medical need products identified by the office. new text end

Subd. 5.

Failure to participate; suspension or revocation of licensenew text begin ; enforcementnew text end .

The office may new text begin enforce this section and take enforcement action described in section 342.19, including issuing administrative orders, embargoing products, and imposing civil penalties, or new text end suspend or revoke a deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end license if the office determines that the business is no longer actively participating in the medical cannabis marketnew text begin by not making available in stock at each retail location high medical need products identified by the office or otherwise failing to comply with the requirements of this section or this chapternew text end . deleted text begin The office may, by rule, establish minimum requirements related to cannabis cultivation, manufacturing of medical cannabinoid products, retail sales of medical cannabis flower and medical cannabinoid products, and other relevant criteria to demonstrate active participation in the medical cannabis market.deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Operations. deleted text end

deleted text begin A medical cannabis combination business must comply with the relevant requirements of sections 342.25, 342.26, 342.27, and 342.51, subdivisions 2 to 5. deleted text end

Subd. 7.

deleted text begin Transportationdeleted text end new text begin Internal transporter endorsementnew text end .

new text begin (a) new text end A deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end maynew text begin obtain an internal transporter endorsement tonew text end transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer productsnew text begin between facilities owned by the license holdernew text end if the deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end :

(1) provides the office with the information described in section 342.35, subdivision 2; and

(2) complies with the requirements of section 342.36.

new text begin (b) A cannabis macrobusiness with at least two medical cannabis endorsements may apply for and obtain an external transporter endorsement to transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, and hemp-derived consumer products to other cannabis and hemp businesses if the cannabis macrobusiness: new text end

new text begin (1) provides the office with the information required under section 342.35, subdivision 2; and new text end

new text begin (2) complies with the requirements of section 342.36. new text end

new text begin (c) A cannabis macrobusiness with a medical cannabis endorsement is not required to obtain an external transporter endorsement to transport immature cannabis plants and seedlings, cannabis flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, medical cannabis flower, and medical cannabinoid products to a cannabis testing facility. new text end

new text begin Subd. 8. new text end

new text begin Multiple licenses. new text end

new text begin (a) A person, cooperative, or business holding a cannabis macrobusiness license may also hold a cannabis event organizer license. new text end

new text begin (b) Except as provided in paragraph (a), a person, cooperative, or business holding a cannabis macrobusiness license is prohibited from owning or operating any other cannabis business or hemp business or holding more than one cannabis macrobusiness license. new text end

new text begin (c) For purposes of this subdivision, a restriction on the number or type of licenses that a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business. new text end

new text begin Subd. 9. new text end

new text begin Conversion of licenses. new text end

new text begin (a) By January 1, 2027, the office must convert any existing medical cannabis combination business licenses or applications to cannabis macrobusiness licenses or applications. new text end

new text begin (b) Before January 1, 2030, the office may issue no more than eight cannabis macrobusiness licenses. new text end

new text begin Subd. 10. new text end

new text begin Additional canopy. new text end

new text begin After the first license renewal, the office may authorize an additional 2,000 square feet of plant canopy for a cannabis macrobusiness license holder with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility. After the second license renewal, the office may authorize an additional 2,000 square feet of plant canopy for a cannabis macrobusiness license holder with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility. After the third license renewal, the office may authorize an additional 3,000 square feet of plant canopy for a cannabis macrobusiness license holder with a medical cannabis cultivation endorsement that cultivates cannabis at an indoor facility. The cannabis macrobusiness must be in good standing with the office to be eligible for an authorization of additional plant canopy. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, except subdivision 1, paragraph (a), clause (6), is effective the day following final enactment. new text end

Sec. 104.

Minnesota Statutes 2025 Supplement, section 342.61, subdivision 4, is amended to read:

Subd. 4.

Testing of samples; disclosures.

(a) On a schedule determined by the office, every cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, cannabis wholesaler with an endorsement to import products, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end shall make each batch of cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, or hemp-derived consumer products grown, manufactured, or imported by the cannabis business or hemp business available to a cannabis testing facility.

(b) A cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, cannabis wholesaler with an endorsement to import products, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end must disclose all known information regarding pesticides, fertilizers, solvents, or other foreign materials, including but not limited to catalysts used in creating artificially derived cannabinoids, applied or added to the batch of cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, or hemp-derived consumer products subject to testing. Disclosure must be made to the cannabis testing facility and must include information about all applications by any person, whether intentional or accidental.

(c) A deleted text begin cannabis businessdeleted text end new text begin license holdernew text end shall select one or more representative samples from each batch, test the samples for the presence of contaminants, and test the samples for potency and homogeneity and to allow the cannabis flower, cannabis product, artificially derived cannabinoid, lower-potency hemp edible, or hemp-derived consumer product to be accurately labeled with its cannabinoid profile. Testing for contaminants must include testing for residual solvents, foreign material, microbiological contaminants, heavy metals, pesticide residue, mycotoxins, and any items identified pursuant to paragraph (b), and may include testing for other contaminants. A cannabis testing facility must destroy or return to the deleted text begin cannabis business or hemp businessdeleted text end new text begin license holdernew text end any part of the sample that remains after testing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 105.

Minnesota Statutes 2024, section 342.61, subdivision 5, is amended to read:

Subd. 5.

Test results.

(a) If a sample meets the applicable testing standards, a cannabis testing facility shall issue a certification to a cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, cannabis wholesaler with an endorsement to import products, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end and the cannabis business or hemp business may then sell or transfer the batch of cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, or hemp-derived consumer products from which the sample was taken to another cannabis business or hemp business, or offer the cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products for sale to customers or patients. If a sample does not meet the applicable testing standards or if the testing facility is unable to test for a substance identified pursuant to subdivision 4, paragraph (b), the batch from which the sample was taken shall be subject to procedures established by the office for such batches, including destruction, remediation, or retesting.

(b) A cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, cannabis wholesaler with an endorsement to import products, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end must maintain the test results for cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, or hemp-derived consumer products grown, manufactured, or imported by that cannabis business or hemp business for at least five years after the date of testing.

(c) A cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, cannabis manufacturer, cannabis wholesaler with an endorsement to import products, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end shall make test results maintained by that cannabis business or hemp business available for review by any member of the public, upon request. Test results made available to the public must be in plain language.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 106.

Minnesota Statutes 2024, section 342.61, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Testing of high medical need products. new text end

new text begin A cannabis testing facility licensed under this chapter may establish a process to prioritize the testing of high medical need products as identified by the office. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 107.

Minnesota Statutes 2025 Supplement, section 342.62, subdivision 2, is amended to read:

Subd. 2.

Packaging requirements.

(a) deleted text begin Except as provided in paragraph (b),deleted text end All deleted text begin cannabis flower,deleted text end cannabis products, lower-potency hemp edibles, and hemp-derived consumer products sold to customers or patients must bedeleted text begin :deleted text end

deleted text begin (1)deleted text end prepackaged in packaging or a container that is child-resistant, tamper-evident, and opaquedeleted text begin ; ordeleted text end new text begin .new text end

deleted text begin (2) placed in packaging or a container that is plain, child-resistant, tamper-evident, and opaque at the final point of sale to a customer. deleted text end

new text begin (b) All cannabis flower sold to customers or patients must be prepackaged unless the business selling the cannabis flower holds a cannabis flower packaging endorsement. new text end

deleted text begin (b)deleted text end new text begin (c)new text end The requirement that packaging be child-resistant does not apply to a lower-potency hemp edible that is intended to be consumed as a beverage.

deleted text begin (c)deleted text end new text begin (d)new text end If a cannabis product, lower-potency hemp edible, or a hemp-derived consumer product is packaged in a manner that includes more than a single serving, each serving must be indicated by scoring, wrapping, or other indicators designating the individual serving size.

deleted text begin (d)deleted text end new text begin (e)new text end Notwithstanding paragraph deleted text begin (c)deleted text end new text begin (d)new text end , any edible cannabinoid products that are intended to be combined with food or beverage products before consumption must indicate a single serving using one of the following methods:

(1) the product is packaged in individual servings;

(2) the product indicates a single serving by scoring or use of another indicator that appears on the product; or

(3) the product is sold with a calibrated dropper, measuring spoon, or similar device for measuring a single serving.

deleted text begin (e)deleted text end new text begin (f)new text end A package containing multiple servings of a lower-potency hemp edible that is not intended to be consumed as a beverage must not contain:

(1) more than 50 milligrams of delta-9 tetrahydrocannabinol;

(2) more than 1,000 milligrams of cannabidiol, new text begin 1,000 milligrams of new text end cannabigerol, new text begin 1,000 milligrams of new text end cannabinol, or new text begin 1,000 milligrams of new text end cannabichromenedeleted text begin :deleted text end new text begin ;new text end

(3) more than the established limit of any other cannabinoid authorized by the office; or

(4) any combination of those cannabinoids that exceeds the identified amounts new text begin for each cannabinoid new text end for the applicable product category.

deleted text begin (f)deleted text end new text begin (g)new text end A deleted text begin singledeleted text end new text begin single-servingnew text end container containing a lower-potency hemp edible deleted text begin productdeleted text end that is intended to be consumed as a beverage must not contain:

(1) more than ten milligrams of delta-9 tetrahydrocannabinol;

(2) more than 200 milligrams of cannabidiol, cannabigerol, cannabinol, or cannabichromene;

(3) more than the established limit of any other cannabinoid authorized by the office; or

(4) any combination of those cannabinoids that exceeds the identified amounts for the applicable product category.

deleted text begin (g)deleted text end new text begin (h)new text end Edible cannabis products and lower-potency hemp edibles containing more than a single serving must be prepackaged deleted text begin or placed at the final point of saledeleted text end in packaging or a container that is resealable.

new text begin (i) A container containing multiple servings of a lower-potency hemp edible product that is bottled or otherwise placed in a resealable, child-resistant container intended to be consumed as a beverage must not contain: new text end

new text begin (1) less than 750 milliliters; new text end

new text begin (2) more than five milligrams of delta-9 tetrahydrocannabinol per serving; new text end

new text begin (3) more than 17 servings; new text end

new text begin (4) more than 400 milligrams of cannabidiol, cannabigerol, cannabinol, or cannabichromene; new text end

new text begin (5) more than the established limit of any other cannabinoid authorized by the office; or new text end

new text begin (6) any combination of those cannabinoids that exceeds the identified amounts for the applicable product category. new text end

Sec. 108.

Minnesota Statutes 2025 Supplement, section 342.63, subdivision 2, is amended to read:

Subd. 2.

Content of label; cannabis.

All cannabis flower and hemp-derived consumer products that consist of hemp plant parts sold to customers or patients must have affixed on the packaging or container of the cannabis flower or hemp-derived consumer product a label that contains at least the following information:

(1) the name and license number of the cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , or industrial hemp grower where the cannabis flower or hemp plant part was cultivated;

(2) the net weight of cannabis flower or hemp plant parts in the package or container;

(3) the batch number;

(4) the cannabinoid profile;

(5) a universal symbol established by the office indicating that the package or container contains cannabis flower, a cannabis product, a lower-potency hemp edible, or a hemp-derived consumer product;

(6) verification that the cannabis flower or hemp plant part was tested according to section 342.61 and that the cannabis flower or hemp plant part complies with the applicable standards;

(7) deleted text begin information on the usage of the cannabis flower or hemp-derived consumer productdeleted text end new text begin the type of product, including directions on usagenew text end ;

(8) deleted text begin the following statement: "Keep this product out of reach of children."deleted text end new text begin the warning symbol established by the office indicating that the product is not for children and information about the Minnesota Poison Control Centernew text end ; and

(9) any other statements or information required by the office.

Sec. 109.

Minnesota Statutes 2025 Supplement, section 342.63, subdivision 3, is amended to read:

Subd. 3.

Content of label; cannabinoid productsnew text begin excluding lower-potency hemp ediblesnew text end .

(a) All cannabis products, deleted text begin lower-potency hemp edibles,deleted text end hemp concentrate, hemp-derived consumer products other than products subject to the requirements under subdivision 2, new text begin and new text end medical cannabinoid productsdeleted text begin , and hemp-derived topical productsdeleted text end sold to customers or patients must have affixed to the packaging or container of the deleted text begin cannabisdeleted text end product a label that contains at least the following information:

deleted text begin (1) the name and license number of the cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, medical cannabis combination business, or industrial hemp grower that cultivated the cannabis flower or hemp plant parts used in the cannabis product, lower-potency hemp edible, hemp-derived consumer product, or medical cannabinoid product; deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end the name and license number of the cannabis microbusiness, cannabis mezzobusiness, cannabis manufacturer, lower-potency hemp edible manufacturer, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , or industrial hemp grower that manufactured the cannabis concentrate, hemp concentrate, or artificially derived cannabinoid and, if different, the name and license number of the cannabis microbusiness, cannabis mezzobusiness, cannabis manufacturer, lower-potency hemp edible manufacturer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end that manufactured the product;

deleted text begin (3)deleted text end new text begin (2)new text end the net weight of the deleted text begin cannabisdeleted text end productdeleted text begin , lower-potency hemp edible, or hemp-derived consumer productdeleted text end in the package or container;

deleted text begin (4)deleted text end new text begin (3)new text end the type of deleted text begin cannabisdeleted text end product, deleted text begin lower-potency hemp edible, or hemp-derived consumer productdeleted text end new text begin including directions on usagenew text end ;

deleted text begin (5)deleted text end new text begin (4)new text end the batch number;

deleted text begin (6)deleted text end new text begin (5)new text end the serving size;

deleted text begin (7)deleted text end new text begin (6)new text end the cannabinoid profile per serving and in total;

deleted text begin (8)deleted text end new text begin (7)new text end a list of ingredients;

deleted text begin (9)deleted text end new text begin (8)new text end a universal symbol established by the office indicating that the package or container contains cannabis flower, a cannabis product, a lower-potency hemp edible, or a hemp-derived consumer product;

deleted text begin (10)deleted text end new text begin (9)new text end a warning symbol deleted text begin developed by the office in consultation with the commissioner of health and the Minnesota Poison Control System that:deleted text end new text begin established by the office indicating that the product is not for children and information about the Minnesota Poison Control Center;new text end

deleted text begin (i) is at least three-quarters of an inch tall and six-tenths of an inch wide; deleted text end

deleted text begin (ii) is in a highly visible color; deleted text end

deleted text begin (iii) includes a visual element that is commonly understood to mean a person should stop; deleted text end

deleted text begin (iv) indicates that the product is not for children; and deleted text end

deleted text begin (v) includes the phone number of the Minnesota Poison Control System; deleted text end

deleted text begin (11)deleted text end new text begin (10)new text end verification that the deleted text begin cannabisdeleted text end productdeleted text begin , lower-potency hemp edible, hemp-derived consumer product, or medical cannabinoid productdeleted text end was tested according to section 342.61 deleted text begin and that the cannabis product, lower-potency hemp edible, hemp-derived consumer product, or medical cannabinoid product complies with the applicable standardsdeleted text end ;new text begin andnew text end

deleted text begin (12) information on the usage of the product; deleted text end

deleted text begin (13) the following statement: "Keep this product out of reach of children."; and deleted text end

deleted text begin (14)deleted text end new text begin (11)new text end any other statements or information required by the office.

deleted text begin (b) The office may by rule establish alternative labeling requirements for lower-potency hemp edibles that are imported into the state if those requirements provide consumers with information that is substantially similar to the information described in paragraph (a). deleted text end

new text begin (b) A ratio hemp-infused cannabis product as defined in section 342.01, subdivision 63a, must include on the label the following statement: "This product contains nonintoxicating cannabinoids derived from hemp." new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective August 1, 2026. Paragraph (b) is effective January 1, 2027. new text end

Sec. 110.

Minnesota Statutes 2024, section 342.63, subdivision 4, is amended to read:

Subd. 4.

Additional content of label; medical cannabis flower and medical cannabinoid products.

In addition to the applicable requirements for labeling under subdivision 2 or 3, all medical cannabis flower and medical cannabinoid products must include at least the following information on the label affixed to the packaging or container of the medical cannabis flower or medical cannabinoid product:

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

(2) new text begin if applicable, new text end the name and date of birth of the patient's registered designated caregiver or, if listed on the registry verification, the name of the patient's parent, legal guardian, or spousedeleted text begin , if applicabledeleted text end ; and

(3) the patient's registry identification number.

Sec. 111.

Minnesota Statutes 2025 Supplement, section 342.63, subdivision 5, is amended to read:

Subd. 5.

Content of label; hemp-derived topical products.

new text begin (a) new text end All hemp-derived topical products sold to customers must have affixed to the packaging or container of the product a label that deleted text begin containsdeleted text end new text begin includesnew text end at least the following information:

(1) the manufacturer name, location, phone number, and website;

(2) the name and address of the independent, accredited laboratory used by the manufacturer to test the product;

(3) the net weight or volume of the product in the package or container;

(4) the type of topical product;

(5) the amount or percentage of cannabidiol, cannabigerol, or any other cannabinoid, derivative, or extract of hemp, per serving and in total;

(6) a list of ingredients;

(7) a statement that the product does not claim to diagnose, treat, cure, or prevent any disease and that the product has not been evaluated or approved by the United States Food and Drug Administration, unless the product has been so approved; and

(8) any other statements or information required by the office.

new text begin (b) All hemp-derived topical products that contain THC must have affixed to the product's packaging or container a label that includes at least the following information: new text end

new text begin (1) the information required in paragraph (a); new text end

new text begin (2) the amount or percentage of THC per serving and the total THC; new text end

new text begin (3) the universal symbol established by the office indicating that the package or container contains a product containing THC; new text end

new text begin (4) the warning symbol established by the office indicating that the product is not for children and information about the Minnesota Poison Control Center; and new text end

new text begin (5) information that the product was tested according to section 342.61, subdivision 4. new text end

Sec. 112.

Minnesota Statutes 2025 Supplement, section 342.63, subdivision 6, is amended to read:

Subd. 6.

Additional information.

(a) A cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end must provide customers and patients with the following information:

(1) factual information about impairment effects and the expected timing of impairment effects, side effects, adverse effects, and health risks of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products;

(2) a statement that customers and patients must not operate a motor vehicle or heavy machinery while under the influence of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products;

(3) resources customers and patients may consult to answer questions about cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products, and any side effects and adverse effects;

(4) contact information for the poison control center and a safety hotline or website for customers to report and obtain advice about side effects and adverse effects of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products;

(5) substance use disorder treatment options; and

(6) any other information specified by the office.

(b) A cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end may include the information described in paragraph (a) by:

(1) including the information on the label affixed to the packaging or container of cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products;

(2) posting the information in the premises of the cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, or deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end ; or

(3) providing the information on a separate document or pamphlet provided to customers or patients when the customer purchases cannabis flower, a cannabis product, a lower-potency hemp edible, or a hemp-derived consumer product.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 113.

Minnesota Statutes 2024, section 342.63, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Labeling of lower-potency hemp edibles. new text end

new text begin (a) All lower-potency hemp edible products must have affixed to the packaging or container a label that includes at least the following information: new text end

new text begin (1) information about the business that cultivated the hemp parts used in the product, including either: new text end

new text begin (i) the business's name, the business's address, and the country and state, if applicable, where the business operates; or new text end

new text begin (ii) the business's name and business's license number; new text end

new text begin (2) information about the business that manufactured the hemp concentrate and artificially derived cannabinoids used in the product, including either: new text end

new text begin (i) the business's name, the business's address, and the country and state, if applicable, where the business operates; or new text end

new text begin (ii) the business's name and the business's license number; new text end

new text begin (3) the net weight of the lower-potency hemp edible product in the package or container; new text end

new text begin (4) the batch number; new text end

new text begin (5) the serving size; new text end

new text begin (6) the cannabinoid profile per serving and total THC; new text end

new text begin (7) a list of ingredients; new text end

new text begin (8) the universal symbol established by the office indicating that the package or container contains a product containing THC; new text end

new text begin (9) the warning symbol established by the office indicating that the product is not for children and information about the Minnesota Poison Control Center; new text end

new text begin (10) verification that the lower-potency hemp edible was tested according to section 342.61; new text end

new text begin (11) directions on the usage of the product; and new text end

new text begin (12) any other statements or information required by the office. new text end

new text begin (b) A cannabis or hemp business selling lower-potency hemp edibles to customers may provide customers with the required information in paragraph (a), clauses (1) and (2), through the use of a scannable barcode affixed to the label of the product if the barcode is accurate and active at all times. new text end

new text begin (c) The label of a lower-potency hemp edible product that contains only nonintoxicating cannabinoids approved by the office and that does not include THC is not required to include the universal symbol in paragraph (a), clause (8). new text end

Sec. 114.

Minnesota Statutes 2024, section 342.66, subdivision 3, is amended to read:

Subd. 3.

Approved cannabinoids.

(a) Products manufactured, marketed, distributed, and sold under this section may contain cannabidiol or cannabigerol. Except as provided in paragraph (c), products may not contain any other cannabinoid unless approved by the office.

(b) The office may approve any cannabinoiddeleted text begin , other than any tetrahydrocannabinol,deleted text end and authorize its use in manufacturing, marketing, distribution, and sales under this section deleted text begin if the office determines that the cannabinoid is a nonintoxicating cannabinoiddeleted text end .

(c) A product manufactured, marketed, distributed, and sold under this section may contain deleted text begin cannabinoids other than cannabidiol, cannabigerol, or any other cannabinoid approved by the office provided that the cannabinoids aredeleted text end new text begin hemp concentrate that is new text end naturally occurring in hemp plants or hemp plant parts and deleted text begin the total of all other cannabinoids present in a product does not exceed one milligram per packagedeleted text end new text begin must not contain more than 0.3 percent total THCnew text end .

Sec. 115.

Minnesota Statutes 2024, section 342.80, is amended to read:

342.80 LAWFUL ACTIVITIES.

(a) Notwithstanding any law to the contrary, the cultivation, manufacturing, possessing, and selling of cannabis flower, cannabis products, artificially derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products by a licensed cannabis business or hemp business in conformity with the rights granted by a cannabis business license or hemp business license is lawful and may not be the grounds for the seizure or forfeiture of property, arrest or prosecution, or search or inspections except as provided by this chapter.

(b) A person acting as an agent of a cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, deleted text begin medicaldeleted text end cannabis deleted text begin combination businessdeleted text end new text begin macrobusinessnew text end , or lower-potency hemp edible retailer who sells or otherwise transfers cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products to a person under 21 years of age is not subject to arrest, prosecution, or forfeiture of property if the person complied with section 342.27, subdivision 4, and any rules promulgated pursuant to this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 116.

new text begin PSILOCYBIN THERAPEUTIC USE PROGRAM REPORT. new text end

new text begin (a) By January 15, 2027, the Office of Cannabis Management must publish a report with recommendations on administering a psilocybin therapeutic use program in which individuals 21 years of age and older who have qualifying medical conditions may access and use psilocybin under supervision of a facilitator at a treatment facility. new text end

new text begin (1) Informed by the Minnesota Psychedelic Medicine Task Force's Legislative Report published January 1, 2025, the office's report must assess the feasibility of administering a psilocybin therapeutic use program, describe the viability of and methods for determining and updating a list of qualifying medical conditions, and include recommendations for program development and administration. new text end

new text begin (2) In developing the report, the office may consult with other federal, state, or local agencies. new text end

new text begin (3) The office must submit the report to the chairs, co-chairs, and ranking members of the legislative committees and divisions with jurisdiction over cannabis policy, health, and veterans affairs by January 15, 2027. new text end

new text begin (b) The office must regularly analyze the availability of federal programs to provide funding to support state efforts to establish a psilocybin therapeutic use program for individuals 21 years of age and older who have qualifying medical conditions to access and use psilocybin under medical supervision. new text end

Sec. 117.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes must renumber Minnesota Statutes, section 342.515, as Minnesota Statutes, section 342.295, and make any necessary cross-reference changes consistent with this renumbering. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027. new text end

Sec. 118.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 151.72, subdivisions 1, 2, 4, 5, 5b, 5c, 6, and 7, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 342.51, subdivision 1, new text end new text begin is repealed. new text end

new text begin (c) new text end new text begin Minnesota Statutes 2025 Supplement, section 151.72, subdivisions 3 and 5a, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) and paragraph (c) are effective the day following final enactment. Paragraph (b) is effective January 1, 2027. new text end

Sec. 119.

new text begin EFFECTIVE DATE. new text end

new text begin Sections in this bill are effective August 1, 2026, unless otherwise stated or regarding the creation of a cannabis macrobusiness and conversion of medical cannabis combination businesses. New and stricken language in relation to the creation of a cannabis macrobusiness and conversion of medical cannabis combination businesses are effective January 1, 2027. new text end

Office of the Revisor of Statutes

Minnesota Session Laws - 2026 Regular Session

Resources

Chapter 123

CHAPTER 123--S.F.No. 4401

Section 1.

Minnesota Statutes 2024, section 342.01, subdivision 14, is amended to read:

Subd. 14.

Cannabis business.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Minnesota Statutes 2024, section 342.01, subdivision 20, is amended to read:

Subd. 20.

Cannabis product.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 342.01, subdivision 48, is amended to read:

Subd. 48.

License holder.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 342.01, subdivision 50, is amended to read:

Subd. 50.

Lower-potency hemp edible.

Sec. 5.

Minnesota Statutes 2024, section 342.01, subdivision 52, is amended to read:

Subd. 52.

Medical cannabinoid product.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Minnesota Statutes 2024, section 342.01, subdivision 54, is amended to read:

Subd. 54.

Medical cannabis flower.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Minnesota Statutes 2024, section 342.01, is amended by adding a subdivision to read:

new text begin Subd. 63a. new text end

new text begin Ratio hemp-infused cannabis product. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Minnesota Statutes 2024, section 342.02, subdivision 2, is amended to read:

Subd. 2.

Powers and duties.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, section 342.04, is amended to read:

342.04 STUDIES; REPORTS.

new text begin Subdivision 1. new text end

new text begin Studies required. new text end

new text begin Subd. 2. new text end

new text begin Annual market analysis. new text end

new text begin Subd. 3. new text end

new text begin Annual report required. new text end

new text begin Subd. 4. new text end

new text begin Collaboration with other agencies and organizations. new text end

Sec. 10.

Minnesota Statutes 2024, section 342.07, subdivision 3, is amended to read:

Subd. 3.

Edible cannabinoid product handler endorsement.

Sec. 11.

Minnesota Statutes 2024, section 342.09, subdivision 3, is amended to read:

Subd. 3.

Home extraction of cannabis concentrate by use of volatile solvent prohibited.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 342.10, is amended to read:

342.10 LICENSES; TYPES.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

Minnesota Statutes 2025 Supplement, section 342.11, is amended to read:

342.11 LICENSES; FEES.

new text begin EFFECTIVE DATE. new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 342.12, is amended to read:

342.12 LICENSES; TRANSFERS; ADJUSTMENTS.

new text begin Subdivision 1. new text end

new text begin Transfer of licenses. new text end

new text begin Subd. 2. new text end

new text begin License reclassification availability. new text end

new text begin Subd. 3. new text end