Minnesota Bill HF100 - A "short" Summary

June 14, 2023

Ok so not really a short summary but it is helpful.

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F. No. 100A

14 Subd. 4. Application score; license priority. (a) The office shall award points to each

15 completed application in the following categories:
16 (1) status as a social equity applicant or as an applicant who is substantially similar to
17 a social equity applicant as described in paragraph (c);
18 (2) status as a veteran applicant;
19 (3) security and record keeping;
20 (4) employee training plan;
21 (5) business plan and financial situation;
22 (6) diversity plan;
23 (7) labor and employment practices;
24 (8) knowledge and experience; and veteran
25 (9) environmental plan.

REGULATION OF ADULT-USE CANNABIS

"Plant canopy" means the surface area within a cultivation facility that is used at any time to cultivate mature, flowering cannabis plants. For multiple tier cultivation, each tier of cultivation surface area contributes to the total plant canopy calculation. Calculation of the area of the plant canopy does not include the surface area within the cultivation facility that is used to cultivate immature cannabis plants and seedlings.

Sec. 10 - 11

[342.10] [342.11] LICENSES; TYPES. LICENSES; FEES.

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.

Type of License	Application Fee	License Fee	Renewal Fee	Canopy
Cannabis Microbusiness	500	0	2000	5000 sqft or ½ acre
Cannabis Mezzobusiness	5000	5000	10000	15000 sqft or 1 acre
Cannabis Cultivator	10000	20000	30000	30000 sqft or 2 acres
Cannabis Manufacturer	10000	10000	20000
Cannabis Retailer	2500	2500	5000
Cannabis Wholesaler	5000	5000	10000
Cannabis Transporter	250	500	1000
Cannabis Testing Facility	5000	5000	10000
Cannabis Event Organizer	750	750	0
Cannabis Delivery Service	250	500	1000
Lower-Potency Hemp Edible Manufacturer	250	1000	1000
Lower-Potency Hemp Edible Retailer	250	250	250
Medical Cannabis Cultivator	250	0	0
Medical Cannabis Processor	250	0	0
Medical Cannabis Retailer	250	0	0
Medical Cannabis Combination Business	10000	20000	70000

Sec. 13.

[342.13] LOCAL CONTROL.

(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.

Except as provided in section 342.22, a local unit of government may not prohibit

the establishment or operation of a cannabis business licensed under this chapter.

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.

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;

Develop standardized forms and procedures for the issuance of a retail registration

pursuant to section 342.22; and

Develop model policies and procedures for the performance of compliance checks

required under section 342.22.

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.

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 building code. The office may not issue a

license if a cannabis business does not meet local zoning and land use laws.

Upon receipt of an application for a license issued under this chapter, the office shall contact the local unit of government in which the business would be located and provide the local unit of government with 30 days in which to provide input on the application. The local unit of government may provide the office with any additional information it believes is relevant to the office's decision on whether to issue a license, including but not limited to identifying concerns about the proposed location of a cannabis business, or sharing public information about an applicant.
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.

Complaints may include alleged violations of local ordinances or other alleged violations.

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 with a retail operations endorsement,

cannabis mezzobusiness, lower-potency hemp edible retailer, medical cannabis retailer, or

medical cannabis combination business 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.

A local government unit that issues cannabis retailer registration under section 342.22

may, by ordinance, limit the number of licensed cannabis retailers, 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.

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.

Nothing in this section shall prohibit a local government unit from allowing licensed

cannabis retailers in excess of the minimums set in paragraph (i).

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. 14.

[342.14] CANNABIS LICENSE APPLICATION AND RENEWAL.

Subd. 1. Application; contents.

(a) The office shall establish forms and procedures for processing cannabis licenses issued under this chapter. At a minimum, any application to obtain or renew a cannabis license shall include the following information, if applicable:

(1) The name, address, and date of birth of the applicant.

(2) The disclosure of ownership and control required under paragraph (b).

(3) The disclosure of whether the applicant or any officer, director, manager, or general partner of the business, if the applicant is a business, has ever filed for bankruptcy.

(4) The address and legal property description of the business.

(5) A general description of the location or locations that the applicant plans to operate, including the planned square feet of space for cultivation, wholesaling, and retailing, as applicable.

(6) A copy of the security plan.

(7) Proof of trade name registration.

(8) A copy of the applicant's business plan showing the expected size of the business, anticipated growth, the methods of record-keeping, the knowledge and experience of the applicant and any officer, director, manager, and general partner of the business, the environmental plan, and other relevant financial and operational components.

(9) An attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement.

(10) Certification that the applicant will comply with the requirements of this chapter relating to the ownership and operation of a cannabis business.

(11) Identification of one or more controlling persons or managerial employees as agents who shall be responsible for dealing with the office on all matters.

(12) A statement that the applicant agrees to respond to the office's supplemental requests for information.

(b) An applicant must file and update, as necessary, a disclosure of ownership and control. The office shall establish the contents and form of the disclosure. The disclosure shall include, at a minimum, the following:

(1) The management structure, ownership, and control of the applicant or license holder, including the name of each cooperative member, officer, director, manager, general partner, or business entity; the office or position held by each person; each person's percentage ownership interest, if any; and, if the business has a parent company, the name of each owner, board member, and officer of the parent company and the owner's, board member's, or officer's percentage ownership interest in the parent company and the cannabis business.

(2) A statement from the applicant and, if the applicant is a business, from every officer, director, manager, and general partner of the business, indicating whether that person has previously held or currently holds an ownership interest in a cannabis business in Minnesota, any other state or territory of the United States, or any other country.

(3) If the applicant is a corporation, copies of the applicant's articles of incorporation and bylaws and any amendments to the applicant's articles of incorporation or bylaws.

(4) Copies of any partnership agreement, operating agreement, or shareholder agreement.

(5) Copies of any promissory notes, security instruments, or other similar agreements.

(6) An explanation detailing the funding sources used to finance the business.

(7) A list of operating and investment accounts for the business, including any applicable financial institution and account number.

(8) A list of each outstanding loan and financial obligation obtained for use in the business, including the loan amount, loan terms, and name and address of the creditor.

(1) Proof that the applicant is a social equity applicant.

(2) A description of the training and education that will be provided to any employee; or a copy of business policies governing operations to ensure compliance with this chapter

(d) Commitments made by an applicant in its application, including but not limited to the maintenance of a labor peace agreement, shall be an ongoing material condition of maintaining and renewing the license.

(e) An application on behalf of a corporation or association shall be signed by at least

two officers or managing agents of that entity.

(f) The office may, by rule, establish exceptions to the disclosures required under

paragraph (b) for members of a cooperative who hold less than a five percent ownership

interest in the cooperative.

Subd. 2. Application; process.

(a) An applicant must submit all required information to the office on the forms and in the manner prescribed by the office.

(b) If the office receives an application that fails to provide the required information, the office shall issue a deficiency notice to the applicant. The applicant shall have ten business days from the date of the deficiency notice to submit the required information.

(d) Upon receipt of a completed application and fee, the office shall 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.

(e) Within 90 days of receiving a completed application and the results of any required

criminal history check, the office shall 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. 15. [342.15] ADULT-USE CANNABIS BUSINESS; CRIMINAL HISTORY CHECK AND DISQUALIFICATIONS.

Subd. 1. Criminal history check.

(a) Upon request by the office, every license applicant or, in the case of a business entity, every cooperative member or director, manager, and general partner of the business entity, for a cannabis business license, or in the case of a business entity, every cooperative member or director, manager, and general partner of the business entity, and prospective cannabis worker must submit a completed criminal history records check consent form, a full set of classifiable fingerprints, and the required

fees to the office. Upon receipt of this information, the office must submit the completed criminal history records check consent form, full set of classifiable fingerprints, and required fees to the Bureau of Criminal Apprehension. After receiving this information, the bureau must conduct a Minnesota criminal history records check of the license applicant or prospective cannabis worker. The bureau may exchange a license applicant's or prospective cannabis worker's fingerprints with the Federal Bureau of Investigation to obtain the license applicant's or prospective cannabis worker's national criminal history record information. The bureau must return the results of the Minnesota and federal criminal history records checks to the office to determine if the license applicant or prospective cannabis worker is

disqualified under rules adopted pursuant to this section.

(b) The office may, by rule, establish exceptions to the requirement under paragraph

(a) for members of a cooperative who hold less than a five percent ownership interest in the

cooperative.

Subd. 2. Criminal offenses; disqualifications.

The office may by rule determine whether any felony convictions shall disqualify a person 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 a person for a violation of section 152.025.

Sec. 16. [342.16] CANNABIS BUSINESSES; GENERAL OWNERSHIP DISQUALIFICATIONS AND REQUIREMENTS.

(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; and

(13) meet the ownership and operational requirements for the type of license and, if

applicable, endorsement sought or held.

(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.

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

Sec. 17. [342.17] SOCIAL EQUITY APPLICANTS.

(a) An applicant qualifies as a social equity applicant if the applicant:

(1) was convicted of an offense involving the possession or sale of cannabis or marijuana

prior to May 1, 2023;

(2) had a parent, guardian, child, spouse, or dependent who was convicted of an offense

involving the possession or sale of cannabis or marijuana prior to May 1, 2023;

(3) was a dependent of an individual who was convicted of an offense involving the

possession or sale of cannabis or marijuana prior to May 1, 2023;

(4) is a service-disabled veteran, current or former member of the national guard, or any

military veteran or current or former member of the national guard who lost honorable status

due to an offense involving the possession or sale of marijuana;

(5) has been a resident for the last five years of one or more subareas, such as census

tracts or neighborhoods, that experienced a disproportionately large amount of cannabis

enforcement as determined by the study conducted by the office pursuant to section 342.04,

paragraph (b), and reported in the preliminary report, final report, or both; is an emerging farmer as defined in section 17.055, subdivision 1

17.055 EMERGING FARMERS.

Subd. 1.Emerging farmer working group.

To advise the commissioner and legislature regarding the development and implementation of programs and initiatives that support emerging farmers in this state, the commissioner must periodically convene a working group consisting, to the extent possible, of persons who are, and organizations that represent, farmers or aspiring farmers who are women, veterans, persons with disabilities, American Indian or Alaskan Natives, members of a community of color, young, and urban, and any other emerging farmers as determined by the commissioner. No later than January 15 each year, the commissioner must update the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture regarding the working group's activities and recommendations.

Subd. 1a. Emerging farmer account.

An emerging farmer account is established in the agricultural fund. The account consists of money appropriated by law and any other money donated, allotted, transferred, or otherwise provided to the account. Money in the account, including interest, is appropriated to the commissioner for the purposes of this section and must be used to further the objectives of the emerging farmer working group.

(7) has been a resident for the last five years of one or more census tracts where, as reported in the most recently completed decennial census published by the United States Bureau of the Census, either:

(i) the poverty rate was 20 percent or more; or

(ii) the median family income did not exceed 80 percent of statewide median family income or, if in a metropolitan area, did not exceed the greater of 80 percent of the statewide median family income or 80 percent of the median family income for that metropolitan area.

(b) The qualifications described in paragraph (a) apply to each individual applicant or, in the case of a business entity, every cooperative member or director, manager, and general partner of the business entity.

Sec. 18. [342.18] LICENSE SELECTION CRITERIA.

Subd. 1. Market stability.

The office shall issue the necessary number of licenses in order to ensure the sufficient supply of cannabis flower and cannabis products to meet demand, provide market stability, ensure a competitive market, and limit the sale of unregulated cannabis flower and cannabis products.

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 or mezzobusiness licenses, or the issuance of both lower-potency hemp edible manufacturer and lower-potency hemp edible retailer licenses to the same person or entity.

Subd. 3. Application score; license priority.

(a) The office shall award points to each completed application for a license to operate a cannabis business in the following categories:

(1) Status as a social equity applicant or as an applicant who is substantially similar to a social equity applicant as described in paragraph (c);

(2) status as a veteran or retired national guard applicant who does not meet the definition of social equity applicant;

(3) Security and record keeping;

(4) Employee training plan;

(5) Business plan and financial situation;

(6) Labor and employment practices;

(7) Knowledge and experience; and

(8) Environmental plan.

(b) The office may award additional points to an application if the license holder would expand service to an underrepresented market, including but not limited to participation in the medical cannabis program.

(c) The office shall establish application materials permitting individual applicants to demonstrate the impact that cannabis prohibition has had on that applicant, including but not limited to the arrest or imprisonment of the applicant or a member of the applicant's immediate family, and the office may award points to such applicants in the same manner as points are awarded to social equity applicants.

(d) The office shall establish policies and guidelines, which must be made available to the public, regarding the number of points available in each category and the basis for awarding those points. Status as a social equity applicant must account for at least 20 percent of the total available points. In determining the number of points to award to a cooperative or business applying as a social equity applicant, the office shall consider the number or ownership percentage of cooperative members, officers, directors, managers, and general partners who qualify as social equity applicants.

(b) If there are insufficient licenses available for entities that receive identical scores, the office shall utilize a lottery to randomly select license recipients from among those entities.

Sec. 27. [342.27] RETAIL SALE OF CANNABIS FLOWER AND PRODUCTS; GENERAL REQUIREMENTS.

Subd. 1. Applicability.

Every cannabis business with a license or endorsement authorizing the retail sale of cannabis flower or cannabis products must comply with the requirements of this section.

Subd. 2. Sale of cannabis and cannabinoid products.

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.

Sec. 28. [342.28] CANNABIS MICROBUSINESS LICENSING AND OPERATIONS.

Subd. 4. Exception.

The requirement of an attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement is not required as part of an application for a cannabis microbusiness license.

Subd. 5. Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis microbusiness license may also hold a cannabis event organizer license.

(b) Except as provided in paragraph (a), no person, cooperative, or business holding a cannabis microbusiness license may own or operate any other cannabis business or hemp business or hold more than one cannabis microbusiness license.

(c) For purposes of this subdivision, a restriction on the number or type of license that a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Sec. 32.

[342.32] CANNABIS RETAILER LICENSING AND OPERATIONS.

Subd.1. Authorized actions.

A cannabis retailer license entitles the license holder to:

(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, and cannabis wholesalers;

(2) Purchase lower-potency hemp edibles from a licensed lower-potency hemp edible manufacturer;

(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.

Subd. 2. Size limitations.

A cannabis retailer may operate up to five retail locations.

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 license 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.

Subd. 4. Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis retailer license may also hold a cannabis delivery service license, a medical cannabis retailer license, and a cannabis event organizer license.

(b) Except as provided in paragraph (a), no person, cooperative, or business holding a cannabis retailer license may own or operate any other cannabis business or hemp business.

(c) No person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county.

(d) The office by rule may limit the number of cannabis retailer licenses a person, cooperative, or business may hold.

(e) For purposes of this subdivision, a restriction on the number or type of license a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Subd. 5. Municipal or county cannabis store.

A city or county may establish, own, and operate a municipal cannabis store subject to the restrictions in this chapter.

Sec. 35.

[342.35] CANNABIS TRANSPORTER LICENSING.

Subd. 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, cannabis cultivators, cannabis manufacturers, cannabis wholesalers, lower-potency hemp edible manufacturers, medical cannabis retailers, medical cannabis processors, and industrial hemp growers to cannabis microbusinesses, cannabis mezzobusinesses, cannabis manufacturers, cannabis testing facilities, cannabis wholesalers, cannabis retailers, lower-potency hemp edible retailers, medical cannabis processors, medical cannabis retailers, and medical cannabis combination businesses and perform other actions approved by the office.

Subd. 2. 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 transporter license must submit the following information in a form approved by the office:

(1) an appropriate surety bond, certificate of insurance, qualifications as a self-insurer, or other securities or agreements, in the amount of not less than $300,000, for loss of or damage to cargo;

(2) an appropriate surety bond, certificate of insurance, qualifications as a self-insurer, or other securities or agreements, in the amount of not less than $1,000,000, for injury to one or more persons in any one accident and, if an accident has resulted in injury to or destruction of property, of not less than $100,000 because of such injury to or destruction of property of others in any one accident;

(3) the number and type of equipment the business will use 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;

(4) a loading, transporting, and unloading plan;

(5) a description of the applicant's experience in the distribution or security business; and

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

Sec. 36. [342.36] CANNABIS TRANSPORTER OPERATIONS.

Subdivision 1. Manifest required.

Before transporting immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products, a cannabis transporter shall obtain a shipping manifest on a form established by the office. The manifest must be kept with the products at all times and the cannabis transporter must maintain a copy of the manifest in its records.

Subd. 2. Records of transportation.

Records of transportation must be kept for a minimum of three years at the cannabis transporter's place of business and are subject to inspection upon request by the office or law enforcement agency. Records of transportation include the following:

(1) Copies of transportation manifests for all deliveries;

(2) A transportation log documenting the chain of custody for each delivery, including every employee and vehicle used during transportation; and

(3) Financial records showing payment for transportation services.

Subd. 3. Storage compartment.

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 must be transported in a locked, safe, and secure storage compartment that is part of the motor vehicle or in a locked storage container that has a separate key or combination pad. Items being transported may not be visible from outside the motor vehicle.

Subd. 4. Identifying logos or business names prohibited.

No vehicle or trailer may contain an image depicting the types of items being transported, including but not limited to an image depicting a cannabis or hemp leaf, or a name suggesting that the vehicle is used in transporting immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp

edibles, or hemp-derived consumer products.

Subd. 5. Randomized deliveries.

A cannabis transporter shall ensure that all delivery times and routes are randomized.

Subd. 6. Multiple employees.

All cannabis transporter vehicles transporting immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products must be staffed with a minimum of two employees. At least one delivery team member shall remain with the motor vehicle at all times that the

motor vehicle contains immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products.

Subd. 7. Nonemployee passengers prohibited.

Only a cannabis worker employed by or contracted with the cannabis transporter and who is at least 21 years of age may transport immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products. All passengers in a vehicle must be cannabis workers employed by or contracted with the cannabis transporter.

Subd. 8.

Drivers license required.

All drivers must carry a valid driver's license with the proper endorsements when operating a vehicle transporting immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products.

Subd. 9.

Vehicles subject to inspection.

Any vehicle assigned for the purposes of transporting immature cannabis plants and seedlings, cannabis flower, cannabis products, artificially derived cannabinoids, hemp plant parts, hemp concentrate, lower-potency hemp edibles, or hemp-derived consumer products is subject to inspection and may be stopped or inspected at any licensed cannabis business or while enroute during transportation.

Subd. 20. Cannabis prohibition.

"Cannabis prohibition" means the system of state and federal laws that prevented establishment of a legal market and instead established petty offenses and criminal offenses punishable by fines, imprisonment, or both for the cultivation, possession, and sale of all parts of the plant of any species of the genus Cannabis, including all agronomical varieties, whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or resin.

Subd. 24. Cooperative.

"Cooperative" means an association conducting business on a cooperative plan that is organized or is subject to chapter 308A or 308B.

Subd. 42. Labor peace agreement.

"Labor peace agreement" means an agreement between a cannabis business and a bona fide labor organization that protects the state's interests by, at minimum, prohibiting the labor organization from engaging in picketing, work stoppages, or boycotts against the cannabis business. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

Sec. 3. [342.03] CANNABIS ADVISORY COUNCIL.

Subdivision 1. Membership.

(a) The Cannabis Advisory Council is created consisting of the following members:

(30) A veteran appointed by the governor; and

Subd. 4. Duties.

(a) The duties of the advisory council shall include:

(v) grants issued through the CanTrain, CanNavigate, CanStartup, and CanGrow programs;

(vi) grants to organizations for community development in social equity communities through the CanRenew program;

(b) The office shall not approve any cannabinoid product or hemp-derived consumer product that:

(1) is or appears to be a lollipop or ice cream; bears the likeness or contains characteristics of a real or fictional person, animal, or fruit;is modeled after a type or brand of products primarily consumed by or marketed to children;

Sec. 7. [342.07] AGRICULTURAL AND FOOD SAFETY PRACTICES; RULEMAKING.

Subdivision 1. Plant propagation standards.

In consultation with the commissioner of agriculture, the office by rule must establish certification, testing, and labeling requirements for the methods used to grow new cannabis plants or hemp plants, including but not limited to growth from seed, clone, cutting, or tissue culture. The requirements must prohibit the cultivation of cannabis plants derived from genetic engineering, as defined in section 18F.02, subdivision 4.

Subd. 2. Agricultural best practices.

In consultation with the commissioner of agriculture and representatives from the University of Minnesota Extension Service, the office shall establish best practices for:

(1) the cultivation and preparation of cannabis plants; and

(2) the use of pesticides, fertilizers, soil amendments, and plant amendments in relation to growing cannabis plants.

Sec. 8. [342.08] ESTABLISHMENT OF ENVIRONMENTAL STANDARDS.

Subdivision 1. Water standards.

In consultation with the commissioner of the Pollution Control Agency, the office by rule must establish appropriate water standards for cannabis businesses.

Subd. 2. Energy use.

In consultation with the commissioner of commerce, the office by rule must establish appropriate energy standards for cannabis businesses.

Subd. 3.Solid waste.

In consultation with the commissioner of the Pollution Control Agency, the office by rule must establish appropriate solid waste standards for the disposal of:

(1) cannabis flower and cannabinoid products;

(2) packaging;

(3) recyclable materials, including minimum requirements for the use of recyclable materials; and

(4) other solid waste.

Subd. 4. Odor.

The office by rule must establish appropriate standards and requirements to limit odors produced by cannabis businesses.

Subd. 5. Applicability; federal, state, and local laws.

A cannabis business must comply with all applicable federal, state, and local laws related to the subjects of subdivisions 1 to 4.

Sec. 9. [342.09] PERSONAL ADULT USE OF CANNABIS.

Subdivision 1. Personal adult use, possession, and transportation of cannabis flower and cannabinoid products.

(a) An individual 21 years of age or older may:

(1) use, possess, or transport cannabis paraphernalia;

(2) possess or transport two ounces or less of adult-use cannabis flower in a public place;

(3) possess five pounds or less of adult-use cannabis flower in the individual's private residence;

(4) possess or transport eight grams or less of adult-use cannabis concentrate;

(5) possess or transport edible cannabinoid products infused with a combined total of 800 milligrams or less of tetrahydrocannabinol;

(6) give for no remuneration two ounces or less of adult-use cannabis flower, eight grams or less of adult-use cannabis concentrate, or an edible cannabinoid product infused with 800 milligrams or less of tetrahydrocannabinol to an individual who is at least 21 years of age; and

(7) use adult-use cannabis flower and adult-use cannabinoid products in the following locations:

(i) a private residence, including the individual's curtilage or yard;

(ii) on private property, not generally accessible by the public unless the individual is explicitly prohibited from consuming cannabis flower or cannabinoid products on the property by the owner of the property; or

(iii) on the premises of an establishment or event licensed to permit on-site consumption.

Subd. 2. Home cultivation of cannabis for personal adult use.

Up to eight cannabis plants, with no more than four being mature, flowering plants may be grown at a single residence, including the curtilage or yard, without a license to cultivate cannabis issued under this chapter provided that cultivation takes place at the primary residence of an individual 21 years of age or older and in an enclosed, locked space that is not open to public view.

Sec. 12. [342.12] LICENSES; TRANSFERS; ADJUSTMENTS.

(a) Licenses issued under this chapter may not be transferred. A new license must be obtained when:

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

(2) the licensee dissolves, consolidates, or merges with another legal organization;

(3) within the previous 24 months, 50 percent or more of the licensee is transferred by a single transaction or multiple transactions to:

(i) another person or legal organization; or

(ii) a person or legal organization who had less than a five percent ownership interest in the licensee at the time of the first transaction; or

(4) any other event or combination of events that results in a substitution, elimination, or withdrawal of the licensee's responsibility for the operation of the licensee.

(b) Licenses must be renewed annually.

(c) License holders may petition the office to adjust the tier of a license issued within a license category provided that the license holder meets all applicable requirements.

(d) The office by rule may permit relocation of a licensed cannabis business, 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.

Sec. 13. [342.14] LOCAL CONTROL.

(a) A local unit of government may not prohibit the possession, transportation, or use of cannabis flower or cannabinoid products authorized under this chapter.

(b) A local unit of government may not prohibit the establishment or operation of a cannabis business licensed under this chapter.

(f) 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 building code.

(g) Upon receipt of an application for a license issued under this chapter, the office shall contact the local unit of government in which the business would be located and provide the local unit of government with 30 days in which to provide input on the application. The local unit of government may provide the office with any additional information it believes is relevant to the office's decision on whether to issue a license, including but not limited to identifying concerns about the proposed location of a cannabis business or sharing public information about an applicant.

Sec. 15. [342.16] SOCIAL EQUITY APPLICANTS.

An individual qualifies as a social equity applicant if the individual is:

(1) a military veteran who lost honorable status due to a cannabis-related offense;

(2) a resident for the last five years of one or more subareas, such as census tracts or neighborhoods, that experienced a disproportionately large amount of cannabis enforcement as determined by the study conducted by the office pursuant to section 342.04, paragraph (b), and reported in the preliminary report, final report, or both; or

(3) a resident for the last five years of one or more census tracts where, as reported in the most recently completed decennial census published by the United States Bureau of the Census, either:

(i) the poverty rate was 20 percent or more; or

Sec. 16. [342.17] LICENSE SELECTION CRITERIA.

Subdivision 1. Market stability.

The office shall issue the necessary number of licenses in order to ensure the sufficient supply of cannabis flower and cannabinoid products to meet demand, provide market stability, and limit the sale of unregulated cannabis flower and cannabinoid products.

Subd. 2. Craft cultivation priority.

(a) The office shall prioritize issuance of microbusiness licenses with an endorsement to cultivate cannabis flower and craft cultivator licenses.

(b) Unless the office determines that the issuance of bulk cultivator licenses is necessary to ensure a sufficient supply of cannabis flower and cannabinoid products, the office shall not issue a bulk cultivator license before July 1, 2028.

Subd. 3. Vertical integration prohibited; exceptions.

(b) Nothing in this section prohibits or limits the issuance of microbusiness licenses.

(c) If the office determines that the issuance of multiple licenses resulting in a single applicant being vertically integrated is necessary to ensure a sufficient supply of cannabis flower and cannabinoid products during the first calendar year in which cannabis flower and cannabinoid products are lawfully sold to customers, the office may authorize one or more applicants to be fully vertically integrated. Regardless of when the licenses were issued, licenses issued under the terms of this paragraph expire one year after the first day on which cannabis flower and cannabinoid products are lawfully sold to customers and the office may not issue multiple licenses resulting in a single applicant being vertically integrated after that date.

Subd. 4. Application score; license priority.

(a) The office shall award points to each completed application in the following categories:

(1) status as a social equity applicant or as an applicant who is substantially similar to a social equity applicant as described in paragraph (c);

(2) status as a veteran applicant;

(3) security and record keeping;

(4) employee training plan;

(5) business plan and financial situation;

(6) diversity plan;

(7) labor and employment practices;

(8) knowledge and experience; and

(9) environmental plan.

(b) The office may award additional points to an application if the license holder would expand service to an underrepresented market including but not limited to participation in the medical cannabis program.

(c) The office shall establish application materials permitting individual applicants to demonstrate the impact that cannabis prohibition has had on that applicant including but not limited to the arrest or imprisonment of the applicant or a member of the applicant's immediate family, and the office may award points to such applicants in the same manner as points are awarded to social equity applicants.

(d) The office shall establish policies and guidelines, which shall be made available to the public, regarding the number of points available in each category and the basis for awarding those points. Status as a social equity applicant must account for at least 20 percent of the total available points. In determining the number of points to award to a cooperative or business applying as a social equity applicant, the office shall consider the number or ownership percentage of cooperative members, officers, directors, managers, and general partners who qualify as social equity applicants.

(e) Consistent with the goals identified in subdivision 1, the office shall issue licenses in each license category, giving priority to applicants who receive the highest score under paragraphs (a) and (b). If there are insufficient licenses available for entities that receive identical scores, the office shall utilize a lottery to randomly select license recipients from among those entities.

Sec. 19. [342.20] ADULT-USE CANNABIS BUSINESS; GENERAL OWNERSHIP DISQUALIFICATIONS AND REQUIREMENTS.

Subd. 2. Criminal offenses; disqualifications. (a) No person may hold or receive a license issued under this chapter or work for a cannabis business if the person has been convicted of, or received a stay of adjudication for, a violation of a state or federal controlled substance law that is a felony under Minnesota law or would be a felony if committed in Minnesota, regardless of the sentence imposed, unless the office determines that the person's conviction was for the possession or sale of cannabis.

(b) A person who has been convicted of, or received a stay of adjudication for, a violation of Minnesota Statutes 2022, section 152.023, subdivision 1, clause (3), or a state or federal law in conformity with that provision, for the sale of cannabis to a person under the age of 18 may hold or receive a license issued under this chapter, or work for a cannabis business, if 20 years have passed since the date the person was convicted or adjudication was stayed.

Sec. 20. [342.21] CANNABIS BUSINESS; GENERAL OPERATIONAL REQUIREMENTS AND PROHIBITIONS.

Subd. 5. Records.

(a) A cannabis business must retain financial records for the current and previous tax year at the primary business location and must make those records available for inspection by the office at any time during regular business hours.

(b) When applicable, a cannabis business must maintain financial records for the previous ten tax years and must make those records available for inspection within one business day of receiving a request for inspection by the office.

(c) The office may require a cannabis business to submit to an audit of its business records. The office may select or approve the auditor and the cannabis business must provide the auditor with access to all business records. The cost of the audit must be paid by the cannabis business.

Subd. 6. Diversity report.

A cannabis business shall provide an annual report on the status of diversity in the business ownership, management, and employment and in services for which the business contracts.

Subd. 10. Security.

A cannabis business must maintain and follow a security plan to deter and prevent the theft or diversion of cannabis plants, cannabis flower, cannabinoid products, and artificially derived cannabinoids, unauthorized entry into the cannabis business, and the theft of currency.

Subd. 11. Financial relationship.

(a) Except for the lawful sale of cannabis plants, cannabis flower, cannabinoid products, and artificially derived cannabinoids in the ordinary course of business and as otherwise provided in this subdivision, no cannabis business may offer, give, accept, receive, or borrow money or anything else of value or accept or receive credit from any other cannabis business. This prohibition applies to offering or receiving a benefit in exchange for preferential placement by a cannabis retailer, including preferential placement on the cannabis retailer's shelves, display cases, or website. This prohibition applies to every cooperative member or every director, manager, and general partner of a cannabis business.

(b) This prohibition does not apply to merchandising credit in the ordinary course of business for a period not to exceed 30 days.

Sec. 21. [342.22] CANNABIS CULTIVATOR LICENSING.

Subdivision 1. Authorized actions.

(a) A cannabis cultivator license entitles the license holder to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant, harvest cannabis flower from a mature plant, package and label cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the office.

(b) The office may issue an applicant either of the following types of cultivator licenses:

(1) a craft cultivator license, which allows cultivation by a license holder of not more than 10,000 feet of plant canopy unless the office, by rule, increases that limit; or

(2) a bulk cultivator license, which allows cultivation by a license holder of not more than 30,000 feet of plant canopy.

(c) The office may, by rule, increase the limit on craft cultivator plant canopy to no more than 15,000 square feet if the office determines that expansion is consistent with the goals identified in section 342.02, subdivision 1.

Subd. 2. Additional information required.

In addition to the information required to be submitted under section 342.15, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis cultivator license 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.

Subd. 3. Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis cultivator license may also hold a cannabis manufacturing license, medical cannabis cultivator license, medical cannabis producer license, license to grow industrial hemp, and cannabis event organizer license.

(b) Except as provided in paragraph (a), no person, cooperative, or business holding a cannabis cultivator license may own or operate any other cannabis business. This prohibition does not prevent the transportation of cannabis flower from a cannabis cultivator to a cannabis manufacturer licensed to the same person, cooperative, or business and located on the same premises.

(d) For purposes of this subdivision, a restriction on the number or type of license a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Sec. 22. [342.23] CANNABIS CULTIVATOR OPERATIONS.

Subdivision 1. Cultivation records.

A cannabis cultivator 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. The cultivation record must include the quantity and timing, where 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. A licensed cultivator must present cultivation records to the office, the commissioner of agriculture, or the commissioner of health upon request.

Subd. 2. Agricultural chemicals and other inputs.

A cannabis cultivator is subject to rules promulgated by the office governing the use of pesticides, fertilizers, soil amendments, plant amendments, and other inputs to cultivate cannabis.

Subd. 3. Cultivation plan.

A cannabis cultivator 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.

Subd. 4. Pesticides; pollinator protection.

(a) A cannabis cultivator must comply with chapters 18B, 18D, 18E, and any other pesticide laws and rules enforced by the commissioner of agriculture.

(b) A cannabis cultivator must not apply pesticides when pollinators are present or allow pesticides to drift to flowering plants that are attractive to pollinators.

Subd. 5. Adulteration prohibited.

A cannabis cultivator 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, or smell of the cannabis.

Subd. 6. Indoor, outdoor cultivation authorized; security.

A cannabis cultivator may cultivate cannabis plants indoors or outdoors, subject to the security, fencing, lighting, and any other requirements imposed by the office in rule.

Sec. 25. [342.26] CANNABIS RETAILER LICENSING.

Subdivision 1. Authorized actions.

A cannabis retailer license entitles the license holder to:

(1) purchase immature cannabis plants and seedlings, cannabis flower, cannabinoid products, and hemp-derived consumer products from cannabis cultivators, cannabis manufacturers, cannabis microbusinesses, cannabis wholesalers, and industrial hemp growers;

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

(3) perform other actions approved by the office.

Subd. 2. Additional information required.

In addition to the information required to be submitted under section 342.15, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis retail license 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, cannabinoid products, and hemp-derived consumer products to individuals outside the retail location; and

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

Subd. 3. Multiple licenses; limits.

(b) Except as provided in paragraph (a), no person, cooperative, or business holding a cannabis retailer license may own or operate any other cannabis business.

(c) No person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city or county.

(d) The office by rule may limit the number of cannabis retailer licenses a person, cooperative, or business may hold.

Subd. 6. Hours of operation.

(a) Except as provided by paragraph (b), a cannabis retailer may not sell cannabis flower, cannabinoid products, or hemp-derived consumer products between 2:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between 2:00 a.m. and 10:00 a.m. on Sunday.

(b) A city or county may adopt an ordinance to permit sales between 2:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, or between 2:00 a.m. and 10:00 a.m. on Sunday.

Sec. 31. [342.32] CANNABIS TESTING FACILITY LICENSING.

Subdivision 1. Authorized actions.

A cannabis testing facility license entitles the license holder to obtain and test immature cannabis plants and seedlings, cannabis flower, cannabinoid products, hemp plant parts, hemp concentrate, artificially derived cannabinoids, and hemp-derived consumer products from cannabis cultivators, cannabis manufacturers, cannabis wholesalers, cannabis microbusinesses, medical cannabis cultivators, medical cannabis processors, and industrial hemp growers.

Subd. 2. Additional information required.

In addition to the information required to be submitted under section 342.15, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis testing facility license 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 and policies to avoid sales to unlicensed businesses;

(2) proof of accreditation by a laboratory accrediting organization approved by the office that, at a minimum, requires a laboratory to operate formal management systems under the International Organization for Standardization; and

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

Subd. 3. Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis testing facility license may not own or operate, or be employed by, any other cannabis business.

(b) The office by rule may limit the number of cannabis testing facility licenses a person or business may hold.

(c) For purposes of this subdivision, a restriction on the number of licenses a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Sec. 33. [342.34] CANNABIS MICROBUSINESS LICENSING.

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:

(1) grow cannabis plants from seed or immature plant to mature plant, harvest cannabis flower from a mature plant and package and label cannabis flower for sale to other cannabis businesses;

(2) create cannabis concentrate;

(3) manufacture cannabinoid products for public consumption;

(4) purchase cannabis concentrate and hemp concentrate from a cannabis manufacturer, cannabis wholesaler, or licensed hemp grower for use in manufacturing cannabinoid products;

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

(6) operate an establishment that permits on-site consumption of edible cannabinoid products; and

(7) perform other actions approved by the office.

Subd. 2. Additional information required.

In addition to the information required to be submitted under section 342.15, subdivision 1, and rules adopted pursuant to that section, a person, cooperative, or business seeking a cannabis microbusiness license 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 any cultivation or manufacturing activities; plans for providing electricity, water, and other utilities necessary for the normal operation of any cultivation or manufacturing activities; plans for compliance with applicable building code and federal and state environmental and workplace safety requirements and policies; and plans to avoid sales to unlicensed cannabis businesses and individuals under 21 years of age;

(2) if the applicant is seeking an endorsement to cultivate cannabis plants and harvest cannabis flower, 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;

(3) if the applicant is seeking an endorsement to create cannabis concentrate, information identifying all methods of extraction and concentration that the applicant intends to use and the volatile chemicals, if any, that will be involved in extraction or concentration; and

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

Subd. 3. Multiple licenses; limits.

(a) A person, cooperative, or business holding a cannabis microbusiness license may also hold a cannabis event organizer license.

(b) Except as provided in paragraph (a), no person, cooperative, or business holding a cannabis microbusiness license may own or operate any other cannabis business.

(d) For purposes of this subdivision, a restriction on the number or type of license that a business may hold applies to every cooperative member or every director, manager, and general partner of a cannabis business.

Sec. 55. [342.60] TESTING.

Subdivision 1. Testing required.

A cannabis business shall not sell or offer for sale cannabis flower, cannabinoid products, artificially derived cannabinoids, or hemp-derived consumer products to another cannabis business or to a customer or patient, or otherwise transfer cannabis flower, cannabinoid products, artificially derived cannabinoids, or hemp-derived consumer products to another cannabis business.

Subd. 2. Outdoor advertisements; cannabis business signs.

(a) An outdoor advertisement of cannabis flower, a cannabis business, a cannabinoid product, or a hemp-derived consumer product is prohibited.

(b) A cannabis business may erect up to two fixed outdoor signs on the exterior of the building or property of the cannabis business. A fixed outdoor sign:

(1) may contain the name of the cannabis business and the address and nature of the cannabis business; and

(2) shall not include a logo or an image of any kind.

Sec. 62. [342.71] CANNABIS INDUSTRY COMMUNITY RENEWAL GRANTS.

Subdivision 1. Establishment.

The Office of Cannabis Management shall establish CanRenew, a program to award grants to eligible organizations for investments in communities where long-term residents are eligible to be social equity applicants.

Sec. 64. [342.73] CANNABIS GROWER GRANTS.

Subdivision 1. Establishment.

The office, in consultation with the commissioner of agriculture, shall establish CanGrow, a program to award grants to (1) eligible organizations to help farmers navigate the regulatory structure of the legal cannabis industry, and (2) nonprofit corporations to fund loans to farmers for expansion into the legal cannabis industry.

Subd. 3. Technical assistance grants.

(a) Grant money awarded to eligible organizations may be used for both developing technical assistance resources relevant to the regulatory structure of the legal cannabis industry and for providing such technical assistance or navigation services to farmers.

(b) The office must award grants to eligible organizations through a competitive grant process.

(c) To receive grant money, an eligible organization must submit a written application to the office, using a form developed by the office, explaining the organization's ability to assist farmers in navigating the regulatory structure of the legal cannabis industry, particularly farmers facing barriers to education or employment.

Subd. 4. Loan financing grants.

(a) The office shall establish a revolving loan account to make loan financing grants under the CanGrow program.

Subd. 5. Loans to farmers.

(a) The criteria in this subdivision apply to loans made by nonprofit corporations under the program.

(b) A loan must be used to support a farmer in entering the legal cannabis industry. Priority must be given to loans to businesses owned by farmers who are eligible to be social equity applicants and businesses located in communities where long-term residents are eligible to be social equity applicants.

(c) Loans must be made to businesses that are not likely to undertake the project for which loans are sought without assistance from the program.

(d) The minimum state contribution to a loan is $2,500 and the maximum is either:

(1) $50,000; or

(2) $150,000, if state contributions are matched by an equal or greater amount of new private investment.

BUSINESS DEVELOPMENT

Section 1. [116J.659] CANNABIS INDUSTRY STARTUP FINANCING GRANTS.

Subdivision 1. Establishment.

The commissioner of employment and economic development shall establish CanStartup, a program to award grants to nonprofit corporations to fund loans to new businesses in the legal cannabis industry and to support job creation in communities where long-term residents are eligible to be social equity applicants.

(c) Loans must be made to businesses that are not likely to undertake the project for which loans are sought without assistance from the program.

(d) The minimum state contribution to a loan is $2,500 and the maximum is either:

(1) $50,000; or

(2) $150,000, if state contributions are matched by an equal or greater amount of new private investment.

Sec. 2. [116J.6595] CANNABIS INDUSTRY NAVIGATION GRANTS.

Subdivision 1. Establishment.

The commissioner of employment and economic development shall establish CanNavigate, a program to award grants to eligible organizations to help individuals navigate the regulatory structure of the legal cannabis industry.

Sec. 3. [116L.90] CANNABIS INDUSTRY TRAINING GRANTS.

Subdivision 1. Establishment.

The commissioner of employment and economic development shall establish CanTrain, a program to award grants to;

(1) eligible organizations to train people for work in the legal cannabis industry, and

(2) eligible individuals to acquire such training.

Subd. 4. Grants to individuals.

(a) The commissioner shall award grants of $....... to eligible individuals to pursue a training program relevant to a career in the legal cannabis industry.

(b) To receive grant money, an eligible individual must submit a written application to the commissioner, using a form developed by the commissioner, identifying a training program relevant to the legal cannabis industry and the estimated cost of completing that training.

OTHER CONTROLLED SUBSTANCE OFFENSES.

Subd. 3. Possession of marijuana in a motor vehicle.

A person is guilty of a misdemeanor if the person is the owner of a private motor vehicle, or is the driver of the motor vehicle if the owner is not present, and possesses on the person, or knowingly keeps or allows to be kept within the area of the vehicle normally occupied by the driver or passengers, more than 1.4 grams of marijuana.

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