Minnesota Lawmakers Pass Marijuana Legalization Bill This Week After Finalizing Bill in Conference Committee

Minnesota lawmakers finalized the marijuana legalization legislation in conference committee. They reached an agreement in the third and last meeting to resolve differences in cannabis reform measures passed by the House and Senate. The final bill is now headed to both chambers for floor votes this week. If approved, it will be sent to the governor to sign into law.

The bicameral conference committee , composed of both the House and Senate, had tackled most of the legislation in its two previous meetings. They adopted articles on major issues such as local control and possession limitations. The panel produced a final document after accepting provisions regarding the tax rate on cannabis and the appropriation of revenue.

Negotiators reached an agreement to tax cannabis at a rate of 10%, as per Senate approved provisions. The House voted for an eight percent tax to be applied on sales, which would then be adjusted every two year so that revenue equaled, or did no significantly exceed, costs incurred by agencies in implementing legalization.

The bicameral agreement will see 80 percent of the revenue going to state coffers, and 20 percent to local governments for their costs related to legalization.

At Tuesday’s meeting, members also approved amendments to provide for cannabis taxation agreements between the state and Indian tribes, detail appropriations to various state agencies to fund their roles in implementing legalization–including new support for the Office of Traffic Safety’s efforts on drug recognition training for police–and allow low-potency hemp products to be displayed in locked cases in stores instead of having to be behind the counter. Another amendment was approved to make technical adjustments to tax provisions.

The committee rejected the amendment which sought to include provisions regarding how local revenue could be spent.

A conference committee was formed because the House and Senate cannabis legalization legislation had been amended separately over a week-long committee process. They needed to be united before they received final votes.

Next, non-partisan staff will process the revised legislation before it is sent back to the House of Representatives and Senate to be voted on. Then it will go to the Governor. Rep. Zack Stephenson, a Democrat, said that processing the bill could take some time due to its complexity and length. However he assured that the lawmakers would pass the reform before the session ended.

Our nonpartisan staff will then process all of the changes that we have made and prepare a final bill to be voted on in the House and Senate. This could take some time because the bill is long and complicated. But!!!! But!

Zack Stephenson 15 May 2023

Port told the meeting on Tuesday that the teamwork in the Minnesota legislature and state was immense. “We hope to have the final conference committee report ready for you in a few days. Representative Stephenson and myself are committed to passing this bill this year.”

Stephenson told Port, “It’s been a pleasure to work with you and this bill,” adding he “cannot have imagined working with anyone else.”

He acknowledged that “many members are no longer in this room. Many have retired. People who have never served in the Legislature. People who have never visited the Capitol have worked hard to bring this bill here.”

The House will adjourn on Thursday for the rest of the year, which leaves little time to finish the last steps in enacting the legislation.

Gov. Tim Walz, who published a biennial budget request for funding marijuana legalization and expungements in January, has already promised to sign the bill when it is received.

With majorities in both the House and Senate and control over the governorship this session, Democratic-Farmer-Labor party officials have been expressing confidence that legalization will be enacted this year.

The bill that passed both chambers was an updated version of the 2021 House Bill, which was introduced by former Majority leader Ryan Winkler (D), now serving as campaign chair of the advocacy coalition MN Is Ready.

In January , the governor sent out an email encouraging people to sign the petition in support of the reform.

These are the main components in the revised marijuana legalization bill, HF100 and SF73.

Adults over 21 could buy and possess up to 2 ounces of marijuana in public. They could also grow up to 8 plants at home. Four of them could be mature.

Two pounds of marijuana is allowed to be kept at home.

Adults can give each other up to 2 oz of marijuana for free.

Previous marijuana records will also be automatically erased. The Bureau of Criminal Apprehension will be responsible for identifying those who qualify for relief and processing the expungements.

Municipalities and counties can also own and run government dispensaries in addition to a licensed cannabis business system.

The bill allows for cannabis delivery services and on-site consumption permits to be granted at events.

Local governments will not be allowed by law to ban marijuana businesses in their area, but they can set “reasonable regulations” on time and location. They may also limit the number of cannabis licenses issued based on population.

The state will impose a standard sales tax of 6.875 percent plus a 10 percent gross receipts tax.

Eighty percent of the revenue would be deposited in the general fund, with some money earmarked to fund cannabis businesses and substance abuse treatment programs. Twenty percent would be distributed to local governments.

The Office of Cannabis Management, which would regulate the market and issue cannabis business licenses, would be created. A designated Division of Social Equity would be created.

The legislation will promote social equity in part by rewarding equity applicants with higher scores. Social equity applicants would include people who live in low-income areas and veterans who have lost their honor due to cannabis-related crimes. Those who are convicted of cannabis crimes, or have a family member convicted, will also be eligible.

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Before it was brought to the House floor, this bill had been vetted in numerous committees. The bill passed the Ways and Means Committee and Taxes Committee. It also passed the Transportation Finance and Policy Committee and Health Finance and Policy Committee.

The Senate committees who have approved the bill include the Finance Committee, Taxes Committee, Rules and Administration Committee, State and Local Government and Veterans Committee, Labor Committee, Human Services Committee, Health and Human Services Committee, Transportation Committee, Environment, Climate, and Legacy Committee, Agriculture, Broadband, and Rural Development Committee, Jobs and Economic Development Committee, Commerce and Consumer Protection Committee, and Judiciary and Public Safety Committee.

Democrats agreed internally to discuss the issue as soon as possible after their November election victory.

A poll released last week found 64 percent of Minnesota voters are in favor of a regulated market for marijuana, including 81 % of Democrats and 49 % of Republicans.

Two surveys released in September showed that the majority of Minnesota residents supported adult-use marijuana. One survey also revealed that more Minnesotans approved of the state’s decision to legalize THC infused edibles, which was enacted by the state last year.

In September, a poll conducted by members of the House during the State Fair found that the majority also supported legalization. This legislature-run survey found that 61 per cent of Minnesotans support legalizing cannabis for adults.

The support for legalization was higher this year than in 2021 when the House Public Information Services surveyed fair-goers. The House poll in 2019 found that 56 percent supported legalization.

In Minnesota, however, the House passed a separate omnibus bill in the last month. This bill contains provisions that create a task force to prepare Minnesota for a possible legalization.

In the House, this large-scale Senate bill was amended earlier in the month to include language taken from a separate psychedelics legislation sponsored by Rep. Andy Smith. The proposal will likely move to a bipartisan conference committee where members will reconcile the differences between House and Senate proposals.