1.1 A bill for an act
1.2 relating to cannabis;
modifying studies and an annual market analysis conducted
1.3 by the Office of Cannabis
Management; requiring reports;amending Minnesota
1.4 Statutes 2025 Supplement,
section 342.04.
1.5 BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes
2025 Supplement, section 342.04, is amended to read:
1.7 342.04 STUDIES; REPORTS.
1.8 Subdivision
1.Studies required. (a) The office shall conduct a study to
determine the
1.9 expected size and growth of
the regulated cannabis industry and hemp consumer industry,
1.10 including an estimate of the
demand for cannabis flower and cannabis products, the number
1.11 and geographic distribution of
cannabis businesses needed to meet that demand, and the
1.12 anticipated business from
residents of other states.
1.13 (b) The office shall conduct a
study to determine the size of the illicit cannabis market,
1.14 the sources of illicit cannabis
flower and illicit cannabis products in the state, the locations
1.15 of citations issued and arrests
made for cannabis offenses, and the subareas, such as census
1.16 tracts or neighborhoods, that
experience a disproportionately large amount of cannabis
1.17 enforcement.
1.18 (c) The office shall conduct a
study on impaired driving to determine:
1.19 (1) the number of accidents
involving one or more drivers who admitted to using cannabis
1.20 flower, cannabis products, lower-potency
hemp edibles, or hemp-derived consumer products,
1.21 or who tested positive for
cannabis or tetrahydrocannabinol;
2.1 (2) the number of arrests of
individuals for impaired driving in which the individual
2.2 tested positive for cannabis
or tetrahydrocannabinol; and
2.3 (3) the number of convictions
for driving under the influence of cannabis flower, cannabis
2.4 products, lower-potency hemp
edibles, hemp-derived consumer products, or
2.5 tetrahydrocannabinol.
2.6 (d) The office shall provide
preliminary reports on the studies conducted pursuant to
2.7 paragraphs (a) to (c) to the
legislature by January 15, 2024, and shall provide final reports
2.8 to the legislature by January
15, 2025. The reports may be consolidated into a single report
2.9 by the office.
2.10 (e) The office shall collect
existing data from the Department of Human Services,
2.11 Department of Health,
Direct Care and Treatment, Minnesota state courts, and hospitals
2.12 licensed under chapter
144 on the utilization of mental health and substance use disorder
2.13 services, emergency room
visits, and commitments to identify any increase in the services
2.14 provided or any increase
in the number of visits or commitments. The office shall also obtain
2.15 summary data from
existing first episode psychosis programs on the number of persons
2.16 served by the programs
and number of persons on the waiting list. All information collected
2.17 by the office under this
paragraph shall be included in the report required under paragraph
2.18 (f).
2.19 Subd. 2.Annual
market analysis. (f) (a) The office shall conduct an
annual market
2.20 analysis on the status of the
regulated cannabis industry and submit a report of the findings.
2.21 An annual market analysis
under this subdivision must include:
2.22 (1) the number of
licenses issued by the office;
2.23 (2) recommendations on
the number of licenses that the office should make available;
2.24 (3) information about
the stability of the regulated market, including an assessment of
2.25 the available supply and
whether the supply is sufficient for consumer demand in the state;
2.26 (4) the impact of
unregulated sales of cannabis flower and cannabis products on the
2.27 regulated market; and
2.28 (5) the integrity of the
medical cannabis patient registry program.
2.29 (b) The office may
solicit the input of consumers, market stakeholders, and potential
2.30 new applicants for the
annual market analysis under paragraph (a). The office shall submit
2.31 the report by January 15,
2025, and each January 15 thereafter and the report may be
2.32 combined with the annual
report submitted by the office. The process of completing the
2.33 market analysis must
include holding public meetings to solicit the input of consumers,
3.1 market stakeholders,
and potential new applicants and must include an assessment as to
3.2 whether the office has
issued the necessary number of licenses in order to: annual market
3.3 analysis under
paragraph (a) as part of the annual report required in subdivision 3.
3.4 (1) ensure the
sufficient supply of cannabis flower and cannabis products to meet demand;
3.5 (2) provide market
stability;
3.6 (3) ensure a
competitive market; and
3.7 (4) limit the sale of
unregulated cannabis flower and cannabis products.
3.8 Subd.
3.Annual report required. (g) (a) The office shall
submit an annual report to
3.9 the legislature by January 15,
2024, and each January 15 thereafter year. The annual report
3.10 shall must
include but not be limited to the following:
3.11 (1) the status of the regulated
cannabis industry;
3.12 (2) the status of the illicit
cannabis market and;
3.13 (3) the status of the
hemp consumer industry;
3.14 (3) the number of accidents,
arrests, and convictions involving drivers who admitted to
3.15 using cannabis flower,
cannabis products, lower-potency hemp edibles, or hemp-derived
3.16 consumer products or who
tested positive for cannabis or tetrahydrocannabinol;
3.17 (4) the change in potency,
if any, of cannabis flower and cannabis products available
3.18 through the regulated market;
3.19 (5) progress on providing
opportunities to individuals and communities that experienced
3.20 a disproportionate, negative
impact from cannabis prohibition, including but not limited to
3.21 providing relief from criminal
convictions and increasing economic opportunities;
3.22 (6) the status of racial and
geographic diversity in the cannabis industry; and
3.23 (7) proposed legislative
changes, including but not limited to recommendations to
3.24 streamline licensing systems
and related administrative processes;.
3.25 (8) information on the
adverse effects of second-hand smoke from any cannabis flower,
3.26 cannabis products, and
hemp-derived consumer products that are consumed by the
3.27 combustion or
vaporization of the product and the inhalation of smoke, aerosol, or vapor
3.28 from the product; and
3.29 (9) recommendations for
the levels of funding for:
3.30 (i) a coordinated
education program to address and raise public awareness about the top
3.31 three adverse health
effects, as determined by the commissioner of health, associated with
4.1 the use of cannabis
flower, cannabis products, lower-potency hemp edibles, or hemp-derived
4.2 consumer products by
individuals under 21 years of age;
4.3 (ii) a coordinated
education program to educate pregnant individuals, breastfeeding
4.4 individuals, and
individuals who may become pregnant on the adverse health effects of
4.5 cannabis flower,
cannabis products, lower-potency hemp edibles, and hemp-derived consumer
4.6 products;
4.7 (iii) training,
technical assistance, and educational materials for home visiting programs,
4.8 Tribal home visiting
programs, and child welfare workers regarding safe and unsafe use of
4.9 cannabis flower,
cannabis products, lower-potency hemp edibles, and hemp-derived consumer
4.10 products in homes with
infants and young children;
4.11 (iv) model programs to
educate middle school and high school students on the health
4.12 effects on children and
adolescents of the use of cannabis flower, cannabis products,
4.13 lower-potency hemp
edibles, hemp-derived consumer products, and other intoxicating or
4.14 controlled substances;
4.15 (v) grants issued
through the CanTrain, CanNavigate, CanStartup, and CanGrow
4.16 programs;
4.17 (vi) grants to
organizations for community development in social equity communities
4.18 through the CanRenew
program;
4.19 (vii) training of peace
officers and law enforcement agencies on changes to laws involving
4.20 cannabis flower,
cannabis products, lower-potency hemp edibles, and hemp-derived consumer
4.21 products and the law's
impact on searches and seizures;
4.22 (viii) training of peace
officers to increase the number of drug recognition experts;
4.23 (ix) training of peace
officers on the cultural uses of sage and distinguishing use of sage
4.24 from the use of cannabis
flower, including whether the Board of Peace Officer Standards
4.25 and Training should
approve or develop training materials;
4.26 (x) the retirement and
replacement of drug detection canines; and
4.27 (xi) the Department of
Human Services and county social service agencies to address
4.28 any increase in demand
for services.
4.29 (g) In developing the
recommended funding levels under paragraph (f), clause (9), items
4.30 (vii) to (xi), the
office shall consult with local law enforcement agencies, the Minnesota
4.31 Chiefs of Police
Association, the Minnesota Sheriff's Association, the League of Minnesota
4.32 Cities, the Association
of Minnesota Counties, and county social services agencies.
5.1 (b) The annual report
under this subdivision must include:
5.2 (1) an assessment of
available data and updated information regarding the impact of
5.3 cannabis use on
impaired driving;
5.4 (2) an assessment of
available data and updated information regarding the impact of the
5.5 adverse effects of
secondhand smoke from cannabis flower and cannabis products;
5.6 (3) updated
information from the Department of Human Services, Department of Health,
5.7 Direct Care and
Treatment, Minnesota state courts, and hospitals licensed under chapter
5.8 144 regarding the
utilization of mental health and substance use disorder services, emergency
5.9 room visits, and civil
commitments; and
5.10 (4) updated information
about existing summary data on first episode psychosis programs.
5.11 Subd. 4.Collaboration
with other agencies and organizations. The office must
5.12 collaborate with state
agencies and leading organizations with expertise on cannabis-related
5.13 programs to support
education, prevention, and public safety initiatives, including:
5.14 (1) the Department of
Employment and Economic Development;
5.15 (2) the Department of
Health;
5.16 (3) the Department of
Public Safety;
5.17 (4) the Department of
Education;
5.18 (5) the Department of
Human Services;
5.19 (6) the Department of
Children, Youth, and Families;
5.20 (7) Direct Care and
Treatment;
5.21 (8) local government
organizations;
5.22 (9) law enforcement
agencies; and
5.23 (10) county social
service agencies.
