What You Need to Know About Minnesota's Marijuana Legalization Bill (2023)

adult use

What Does the New Recreational Marijuana Act Do?

The bill would legalize the possession and use of marijuana for Minnesotans 21 and older. He will create a new state agency called the Office of Cannabis Regulation to license marijuana and marijuana businesses and oversee the legal recreational market, as well as the existing market for medical marijuana and marijuana derivatives. The bill calls for the elimination of all misdemeanor marijuana offenses and creates a Marijuana Clearance Board to review criminal offenses for potential clearance on a case-by-case basis. It also imposed new rules and requirements for cannabis-based THC beverages and edibles, which became popular when they hit the marketlegalized last year.

When does the new law take effect?

It is not clearly stated in the bill. According to the bill, many parts of the law — including those related to adult possession, home use and growing marijuana — will go into effect on July 1. However, the bill does not remove existing criminal penalties for those same provisions until Aug. 1. Asked to clarify the discrepancy, Minnesota House pollster Ben Johnson said Aug. 1 is a key date to focus on marijuana legalization.

according toState website about the Act, legal retail sales may not begin until early 2025. Nearly all bill changes to the state's medical marijuana program will take effect on March 1, 2025.

What types of marijuana products will the bill legalize?

The act authorizes the manufacture and retailing of cannabis flower, concentrates, topical and edible products such as candies and beverages. It also allows the sale of unripe cannabis plants and seeds, as well as cannabis-derived THC products.

What are the ownership limits?

Minnesota citizens 21 and older may possess or carry up to 2 ounces of cannabis flower, up to 8 grams of cannabis concentrate, and cannabis edibles containing up to 800 milligrams of THC, the active ingredient in marijuana, in public. They can also possess up to 2kg of cannabis in their home.

Can people smoke weed anywhere?

No, the bill places strict restrictions on where cannabis products are allowed to be consumed. Anyone over the age of 21 may smoke marijuana in a private residence or backyard; with the owner's permission, on private property inaccessible to the public; or at a business or event with a license for on-site consumption. However, vaping or smoking marijuana is prohibited in multifamily buildings except for registered medical marijuana patients.

Where is the consumption of cannabis products explicitly prohibited?

Anywhere the account does not explicitly authorize. Consumption of any form of cannabis product is also prohibited on motor vehicles, school property, and state correctional facilities. The law requires daycare owners to disclose to parents or guardians if they allow employees to consume cannabis products on the premises outside of opening hours.

Is it legal to grow marijuana?

Minnesotans 21 and older are allowed to grow up to eight marijuana plants per household, with no more than four strains that are both ripe and flowering at the same time. Plants can be grown indoors or outdoors, but must be kept in closed enclosures that are not open to the public.Home growing will be legal on August 1.

public security

What does the Act say about driving with a disability?

The bill allocates $15 million over the next two years to fund drug awareness training for law enforcement to help law enforcement better identify disabled drivers. The bill also directs the state's public safety commissioner to launch a pilot project looking at creating roadside oral fluid tests to detect marijuana impairment.

In addition, the new Office of Marijuana Regulation will conduct a study on driving under the influence of marijuana to determine how many accidents involve drivers who use marijuana, how many people are arrested and convicted for marijuana use. for driving while under the influence of marijuana. .

The Minnesota Public Safety Commissioner is expected to commission Hennepin County to compile a "Statewide Report on High Marijuana Trafficking Areas." The report, due Feb. 1, 2024, must include information on past and current cannabis use in Minnesota, its potency, public health impact, emergency room admissions, traffic accidents, DUI fines and illegal markets, among others information.

Driver education programs are also required to include information on the effects of marijuana use.

What is still a crime when the project is approved?

Driving under the influence of marijuana would be a crime, as would selling it without a business license as well as possessing more marijuana or growing more plants in your home than the law allows. Local governments would be allowed to pass ordinances making public use of marijuana products a misdemeanor.

Similar to the state's open alcohol container law, the bill also makes it illegal to have open marijuana products in a vehicle, except in the trunk or similar areas that are not accessible while the vehicle is driving.

Market and Regulation

How will the legal marijuana market be regulated?

Cities and counties, as well as state cannabis regulatory offices, will be responsible for licensing cannabis businesses and enforcing the new law. Cannabis products will be subject to testing requirements and retailers will only be able to sell approved products.

What types of businesses are authorized by the Act?

The act includes 15 types of licenses, including:

• marijuana growers, which allows licensees to grow enough marijuana plants to fill 30,000 square feet. Growers can also harvest, package and label cannabis flower for sale to other businesses such as manufacturers or retailers.
• marijuana manufacturer, which allows the company to turn cannabis flower into other products such as concentrates, edibles, and topicals. Manufacturers can sell products to other companies.
• marijuana retailer, which allows holders to operate up to five retail stores, commonly known in other states as dispensaries, where Minnesota citizens 21 and older can purchase cannabis products.
• Cannabis Micro-Business, which allows a business to grow up to 5,000 square feet in one location to manufacture and sell cannabis products. Micro-enterprises can eat and consume in a dedicated space with an independent entrance. Microbusinesses can also provide live or recorded entertainment.
• Cannabis Intermediary Business, similar to a micro business, only bigger ("mezzo" is Italian for "medium"). Mezzobusinesses can grow up to 15,000 square feet of land, as well as manufacture and sell cannabis products. However, they will not be able to offer consumption of cannabis products or live entertainment. Intermediate businesses can operate up to three retail outlets.
• Cannabis Wholesaler, which authorizes licensees to purchase cannabis flower, unripened plants, or other cannabis or cannabis products from other companies and sell them to cannabis manufacturers, retailers, micro-businesses, and intermediaries.
• Cannabis transporter, allowing holders to transport cannabis plants, flowers and other products among other cannabis businesses. Transporters are required by law to purchase insurance and install lockable storage compartments in their vehicles to transport marijuana. All vehicles must have at least two employees when transporting cannabis products.
• cannabis delivery service, which allows businesses to buy cannabis products from retailers, medical marijuana retailers, micro-businesses, or intermediate businesses and deliver them to customers. Like marijuana transporters, delivery services must install lockable storage compartments in their vehicles to transport marijuana.
• marijuana event organizer, allowing holders to organize marijuana events for up to four days. Event organizers may charge an entry fee and must verify that all attendees are 21 years or older. They can also designate on-site consumption space (if permitted by local government) and authorize cannabis retailers, micro-businesses, and middlemen to sell cannabis products at licensed events.

In addition, the bill requires manufacturers and retailers of low-potency cannabis THC foods and beverages legalized in Minnesota last year to be licensed and regulated by the Office of Marijuana Administration beginning in 2025.

The bill also creates four types of medical marijuana licenses: medical marijuana growers, medical marijuana processors, medical marijuana retailers, and medical marijuana joint ventures, which would allow medical marijuana businesses to also sell products.

Can local governments ban cannabis businesses from operating within their borders?

No, they cannot ban marijuana businesses outright. But they can choose to limit the number of marijuana retailers to just one per 12,500 residents. If a county reaches the limit of one retailer per 12,500 residents, individual towns within the county will not need to allow cannabis businesses.

Minnesota tribal governments will largely be allowed to set their own medical and recreational marijuana rules, though the bill would establish a process for negotiating jurisdictional issues with the state.

What are the packaging requirements for cannabis products?

According to the bill, it must be child-safe, tamper-resistant and opaque. Food packaging must be resealed with FDA-approved materials for packaging food. Packaging materials cannot contain or be coated with "forever" PFAS chemicals. Lower potency cannabis-derived beverages do not require child-resistant packaging. Packaging cannot be similar to that of other non-cannabis products.

Labeling of marijuana products varies slightly depending on the type of product, but will generally require identification of the grower or manufacturer's name and license number, a lot number, a symbol identifying it as marijuana, a statement that the product is not suitable for children, and a phone number for the Minnesota Poison Control Hotline Number. Cannabis flower labels should also include the net weight and concentration of cannabinoids. Food labels must include the serving size, net weight of the product, all ingredients, and the amount of cannabinoids contained per serving.

Can cannabis companies advertise?

Yes, although advertising methods are strictly limited. Outdoor advertising will be banned for all cannabis businesses. Cannabis businesses are allowed to advertise outdoors as long as they are not related to low-potency cannabis edibles.

Cannabis and marijuana companies will not be permitted to advertise in print, television, radio or any other medium if 30% or more of their intended audience is under the age of 21. They will also be banned from using pop-up ads online. Direct communication advertising, such as email marketing, is allowed as long as the business first verifies that the recipient is 21 or older. Verification methods may include users confirming or disclosing their date of birth, similar to online advertising for alcohol and tobacco. Likewise, location-based mobile advertising will require businesses to first verify that the device owner is 21 or older.

tax

How will marijuana retail sales be taxed?

The bill would impose a 10 percent tax on the sale of marijuana products. It does not apply to products purchased through the state's medical marijuana program. The 10 percent rate would last four years, with the tax commissioner responsible for adjusting the rate if the tax revenue generated from marijuana sales exceeds state regulatory costs and state agency funding and substance abuse programs. . State and local sales taxes will also apply to retail marijuana sales.

The state will raise additional revenue from registration and licensing fees for cannabis businesses. For example, cannabis growers pay a $10,000 application fee, a $20,000 initial license fee, and a $30,000 renewal fee. Manufacturers will pay an initial registration and licensing fee of $10,000, and a renewal fee of $20,000. Retailers will pay less — $2,500 for initial registration and licensing, and $5,000 for renewals. Cannabis “micro-businesses” are exempt from paying an initial license fee, a $500 application fee and a $2,000 license renewal fee.

Can local governments impose additional taxes on marijuana sales?

No, the law specifically prohibits local governments from collecting sales taxes only on cannabis products.

How much tax do states hope to raise from retail marijuana sales?

By FY 2027,Minnesota Department of Revenue EstimatesRecreational marijuana sales will generate about $107 million in tax revenue for the state and about $21.5 million for local governments annually. The department estimates that state and local governments could raise more than $300 million in tax revenue from the 2024-2027 fiscal years.

How will taxes on marijuana sales be used?

The state will share one-fifth of the tax revenue with local governments. Revenue will also be distributed to state agencies to pay for monitoring the cannabis industry, enforcement and various concessions under the legislation.

Beginning in FY 2026, annual cannabis-related state spending will include:

• $19 million for Ministry of Health projects
• $15 million for "Cannabis Industry Community Renewal" grants
• Department of Public Safety $10.8 million
• $3.25 million to the University of Minnesota, most of which is used to create and operate a cannabis research center in the School of Public Health

Income remaining after any expenditures goes to the General State Fund.

marijuana industry

How will the new bill affect existing companies that produce and sell legal cannabis-derived THC products?

The existing market for cannabis-derived THC food and beverages can continue as long as companies register with the Minnesota Department of Health by Oct. 1. By 2025, the health department will regulate hemp-derived cannabis products.

As is the case now, only foods and beverages containing up to 5 milligrams of cannabis-derived THC per serving will be allowed — the limit is 50 milligrams per packet for foods and the new limit is 10 milligrams per packet for beverages. E-cigarettes, flowers, and other cannabis-derived THC products remain illegal.

Immediate changes would specifically ban THC-P, an extremely potent synthetic cannabinoid that has generated disease reports across the country. HHC and THC-O are also explicitly banned; only delta-8 and delta-9 THC from cannabis are allowed.

The Office of Cannabis Regulation will assume the licensing, regulation and enforcement of the low-dose cannabis derivatives market on March 1, 2025.

Can liquor stores sell cannabis products?

Yes, from the day after Walz signed the bill. The bill adds low-potency cannabis edibles and beverages to the list of items that liquor stores can sell.

Deletion and Social Equity

What crimes will the bill eliminate?

Minnesota citizens with misdemeanor marijuana charges will see their records expunged, and a new Marijuana Clearance Board will review expungements of marijuana criminal offenses on a case-by-case basis.

How many Minnesotans are eligible to be purged?

More than 60,000 marijuana misdemeanor casesThe Minnesota Bureau of Criminal Apprehension (BCA) estimates that the bill will be eligible for automatic removal upon signing. This includes cases where defendants win or are dismissed, and all criminal records from arrest to sentencing are expunged. Construction Bureautell legislatorsIt can take up to a year for the agency to clear all misdemeanor records.

A BCA spokeswoman said the BCA does not have an estimate for the number of criminal-level marijuana cases eligible for review by the Marijuana Prohibition Board. That's because the state's criminal records system can't classify drug offenses by the type of drug used. Criminal cases require human review.

What are the social equity provisions of the Act?

The bill creates a social equity unit within the Office of Cannabis Regulation to provide outreach and services to communities disproportionately affected by cannabis prohibition. It also provides "social equity seekers" with a better chance of obtaining a commercial cannabis license. They are also eligible for special grants provided for in the legislation.

These applicants include: persons convicted of possession or sale of marijuana, family members of persons convicted of marijuana use, veterans or active-duty military who have experienced disproportionate use of marijuana substantial cannabis enforcement” and farmers from underrepresented communities.

medical items

Does the bill change Minnesota's medical marijuana program?

Nothing will change until March 1, 2025, when the Office of Cannabis Regulatory's new medical marijuana division begins overseeing the state's medical marijuana market.

Until then, patient registration, retail locations, licensed companies and existing eligibility criteria will remain in place, and the Minnesota Department of Health will continue to oversee the program.

Starting in 2025, more companies will be able to enter the medical cannabis market. State law previously only allowed two operators to grow, process and sell a limited type of product at a handful of dispensaries across the state. Medical marijuana suppliers will be able to apply for licenses to sell products to recreational and medical customers (one location per business per congressional district).

As noted above, medical marijuana is exempt from the 10% gross receipts tax.

Work

What happens to pre-employment drug testing?

Cannabis screening of job applicants shall not be made a condition of employment other than required by federal law or other job requirements identified in the Education, Law Enforcement, Medical and Act Acts. Serial or random marijuana testing of many employees would also be prohibited.

Companies can prohibit the possession and use of marijuana during working hours and by employees on premises or in company vehicles. Companies may also require marijuana testing if marijuana use at work is suspected to be a violation of company policy or the law.

firearms

What does the bill say about guns and marijuana?

Legal use of marijuana as defined in the bill does not disqualify eligible citizens from owning or acquiring firearms and ammunition. However, federal law prohibits medical and recreational marijuana users from owning firearms, regardless of the marijuana's legal status in their state. in February,A federal judge in Oklahoma has ruled it's unconstitutionalThe federal government prohibits marijuana users from owning firearms. The government appealed the decision.

Sheriffs cannot deny carrying licenses solely on the grounds of legal marijuana use, nor can state or local agencies inquire about marijuana use "for the purpose of approving or disapproving the purchase, possession, possession or possession of firearms."