The Senate version of the bill, which was approved by the Minnesota House the day before, cleared the final committee and went to the floor.
In a Wednesday voice vote, the Senate Finance Committee approved the legislation proposed by Sen. Lindsey Port.
The measure was advanced by the 13th and last panel of the body. The House bill was approved by the House on Monday after 15 committees.
Port explained to the members of panel that it was a complex bill. Its goal is to legalize and regulate, then expunge.
She said, “I have held over 100 meetings to discuss this bill. I am willing to work with anyone to bring amendments that will make it stronger for Minnesotans. We want to create a unique process in Minnesota that meets the needs of Minnesotan communities.”
The committee used a procedural move to send the Senate the bill that was passed by the House, instead of sending the original legislation to the floor. However, the bill has been modified to include the Senate’s language.
The bills have undergone numerous amendments throughout the process. Lawmakers are working to incorporate feedback from the public, revise policy around tax structures and market issues, and tighten language.
A Senate panel , for example, adopted a comprehensive alternative by the sponsor during a committee visit in March. This was primarily to address the concerns of industry stakeholders operating under the cannabis law enacted in the state last year which legalized low THC edibles . A similar set of major revisions were made to the House bill in committee.
If the Senate approves its version of the bill, it’s likely a bipartisan conference committee will be needed to resolve any outstanding differences. Legislative session ends May 22. This gives lawmakers just a few weeks before the end of the legislative session to finalize a product.
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.
Gov. Tim Walz (D), , released his biennial Budget Request, in January. This included funding for marijuana legalization, expungements and projections of the millions in cannabis tax revenues that his office believes the state will receive after the reform has been enacted.
The bill that is being advanced is an updated version of the 2021 House passed bill by former Majority leader Ryan Winkler, who is 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.
In the Senate Finance Committee’s meeting on Tuesday, two amendments were approved by the sponsor.
One of the main amendments is a change to hemp-related businesses. It allows marijuana businesses to purchase products from hemp edibles producers and processors. Hemp edibles can have up to 20% THC instead of 10% and 200 mg of THC per package, rather than 100 mg. The law also limits hemp drinks to two servings in a container, clarifies hemp businesses are allowed to import and sell hemp products from other states under certain conditions and allows on-site consumption.
The amendment does not only focus on hemp, but also eliminates the requirement that holders of marijuana licenses reside in Minnesota and that the business entities holding cannabis licenses are owned at least to 75 percent by Minnesota residents.
The amendment also bars those convicted of selling marijuana illegally on the premises of a liquor business from getting a cannabis license. It also requires that the commissioner of Public Safety produce a baseline report on high-intensity drug trafficking areas in the state.
It also adds new requirements for the awarding of grant funds created by this bill. Regulators are required to submit recommendations to regulators in an annual report about streamlining cannabis licensing and the allocation of funds from the substance-use grant account created by this bill.
The committee approved a second amendment that specifies the allocation of funds to different state agencies in order to support their role as they implement legalization.
It is anticipated that the bill will be discussed on the Senate floor this week. However, it has yet to be formally scheduled.
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.
The House bill allows people to have up to 1.5 lbs of cannabis in their private residence, while the Senate bill allows up to 5 lbs.
Adults can give each other up to 2 ounces of marijuana for free.
Previous marijuana records will also be automatically expunged. 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 municipalities will not be allowed to prohibit marijuana businesses from operating within their jurisdictions, but they can set “reasonable regulations” on the hours of operation and locations of these businesses.
The House bill would tax cannabis at an eight percent rate. After that, the commissioner for management and budget will adjust the rate every other year so the revenues are equal to, or not significantly greater than, the costs incurred by different agencies in implementing legalization. The Senate bill would impose a tax of 10 percent on marijuana sales, which wouldn’t change over time.
The tax revenue will be used to fund programs for substance abuse treatment and grants for farmers.
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.
This legislation promotes social equity in part by giving higher scores to equity applicants. Social equity applicants would include people who live in low-income areas and veterans who have lost their honorable status because of a cannabis-related crime. The House bill also states that those who are convicted cannabis crimes or who come from a family with a cannabis conviction would qualify.
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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.
Senate committees have approved the bill so far: 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 twice.
Minnesota is now on the verge of legalizing marijuana, subject to the Senate’s final approval and the resolution or disagreements, such as the tax provisions.
The Minnesota developments follow Delaware’s announcement that it would allow two cannabis legalization bills and a sales bill become law without its signature .
Minnesota lawmakers and governor are optimistic about the chances of legalization in this session. This is especially true now that Democrats have taken control of both chambers. Last session, they had only a House majority.
Democrats agreed internally to discuss the issue as soon as possible after their November election victory.
The House Speaker Melissa Hortman (D) predicted at the start of the session, that legalization would take a “long time”, possibly up to next year. This prediction did not come true.
Walz’s timeline has proven to be more accurate, since he stated late last year that the project would be completed “by May.”
Winkler, who recently launched a THC drink company told Marijuana Moment he agreed that “it’s likely that [passing the legalization] will happen by May.”
Two surveys released in September showed that the majority of Minnesotans supported the legalization of adult-use marijuana. One survey also revealed that an even greater number of 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.
Image courtesy of Brian Shamblen.
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