Minnesota Marijuana Legalization Bill Approved In Another Senate Committee, With Just Two More To Go Before Floor Vote

April 5, 2023 · marijuanamoment.net

Another Minnesota Senate committee has approved a bill to legalize marijuana—marking one of the final stops in the chamber on its long path to the floor.

The legislation from Sen. Lindsey Port (D) cleared the Senate Rules and Administration Committee in a voice vote on Tuesday. It now has just two more expected panels to go through before the full body can take up the measure.

This comes about a week after the House companion version, sponsored by Rep. Zack Stephenson (D), moved through its 14th committee.

“We have been thoughtful and methodical on our work on this legislation—and we’re being diligent and including all stakeholders as we craft this legislation,” Port said at the panel hearing on Tuesday.

Both the Senate and House bills have been amended numerous times throughout this process, with lawmakers working to incorporate public feedback, revise policies around issues like tax structures for the market and tighten up language.

For example, a Senate panel adopted a comprehensive substitute from the sponsor at a prior committee stop in March that is primarily meant to address concerns from industry stakeholders who are operating under a cannabis law enacted last year that legalized low-THC edibles in the state.

The House bill also went through a major revision in committee, with members adopting a series of amendments that make the measures more closely aligned. However, it’s likely that a bicameral conference committee will need to convene to address outstanding differences once the full House and Senate act on their respective versions.

With majorities in both the House and Senate and control over the governorship this session, Democratic-Farmer-Labor party officials are confident that legalization will be enacted in short order following the extensive committee consideration.

Gov. Tim Walz (D) released his biennial budget request in January, which included proposed funding to implement marijuana legalization and expungements, and made projections about the millions of dollars in cannabis tax revenue that his office estimates the state will earn after the reform is enacted.

The legislation that’s advancing is an iteration of the 2021 House-passed bill from former Majority Leader Ryan Winkler (D), who now serves as campaign chairman of the advocacy coalition MN is Ready.

The governor has called on supporters to join lawmakers and the administration in their push legalize marijuana this session, and he circulated an email blast in January that encourages people to sign a petition backing the reform.

Much of the revised bills that are advancing through committee are consistent with Winkler’s legislation, though there are a few key changes, in addition to all of the newly adopted amendments. For example, they add a new license category for businesses that sell “lower-potency edible products.”

There would also be reduced regulatory requirements for those licensees, and they’d be able to permit on-site consumption if they have a liquor license, which is meant to ensure that shops currently selling low-THC beverages and edibles don’t face disruption.

During Tuesday’s committee hearing, members did not consider any amendments.

The Senate bill’s next stop is the Taxes Committee. Meanwhile, the House version is heading to the Ways and Means Committee, which was scheduled to consider the legislation on Monday before it was pulled from the agenda.

Here are the main components of the revised marijuana legalization bills, HF 100 and SF 73:

Adults 21 and older could purchase up to two ounces of cannabis and cultivate up to eight plants, four of which could be mature.

They could possess up to two ounces in a public place and up to five pounds in a private dwelling.

Gifting up to two ounces of marijuana without remuneration between adults would be permitted.

It would promote social equity, in part by ensuring that diverse licensing by scoring equity applicants higher.

Prior marijuana records would also be automatically expunged. The Bureau of Criminal Apprehension would be responsible for identifying people who are eligible for relief and process the expungements.

In addition to creating a system of licensed cannabis businesses, municipalities and counties could own and operate government dispensaries.

On-site consumption permits could be approved for events, and cannabis delivery services would be permitted under the bill.

Unlike in many legal states, local municipalities would be banned from prohibiting marijuana businesses from operating in their areas, though they could set “reasonable” regulations on the time of operation and location of those businesses.

Retail cannabis sales would be taxed at eight percent. Part of that revenue would fund substance misuse treatment programs, as well as grants to support farmers.

A new Office of Cannabis Management would be established, and it would be responsible for regulating the market and issuing cannabis business licenses. There would be a designated Division of Social Equity.

People living in low-income neighborhoods and military veterans who lost honorable status due to a cannabis-related offense would be considered social equity applicants eligible for priority licensing.

The legislation as revised fixes an issue in current statute that prohibits liquor stores from selling THC products.

It also contains language banning synthetic cannabinoids, which is consistent with Board of Pharmacy rules put into place last year.

The House panels that have passed the legislation in recent weeks are the Taxes CommitteeTransportation Finance and Policy CommitteeEconomic Development Finance and Policy CommitteePublic Safety Finance and Policy CommitteeHealth Finance and Policy CommitteeEducation Finance CommitteeHuman Services Policy CommitteeWorkforce Development Finance and Policy CommitteeAgriculture Finance and Policy CommitteeState and Local Government Finance and Policy CommitteeLabor and Industry Finance and Policy CommitteeEnvironment and Natural Resources Finance and Policy CommitteeJudiciary Finance and Civil Law Committee and Commerce Finance and Policy Committee (twice).

The Senate committees that have signed off so far are the State and Local Government and Veterans CommitteeLabor CommitteeHuman Services CommitteeHealth and Human Services CommitteeTransportation CommitteeEnvironment, Climate, and Legacy CommitteeAgriculture, Broadband, and Rural Development CommitteeJobs and Economic Development CommitteeCommerce and Consumer Protection Committee and Judiciary and Public Safety Committee (twice).

Lawmakers and the governor have expressed optimism about the prospects of legalization this session, especially with Democrats newly in control of both chambers, whereas last session they only had a House majority.

Following their election win in November, Democrats internally agreed to discuss the issue imminently.

House Speaker Melissa Hortman (D) had said that she expects cannabis reform to be included in the governor’s forthcoming budget request, though she reiterated that the reform “will take a long time” to move through the legislature.

The governor included funding for implementing legalization in his last executive budget request, but lawmakers were unable to enact the policy change. He and Hortman have differing opinions about how quickly the issue can advance this session, however, with Walz recently saying it would be done “by May” and the speaker indicating it could take until next year.

Winkler, who recently launched a THC beverage company, told Marijuana Moment that he agrees with the governor, saying “it is likely that [passing legalization] will be done by May.”

“The reason is that the legislature adjourns until next year at the end of May, and so if they don’t do it in that timeline, it’ll take another full year—and I don’t think anything will be improved or bettered by waiting,” he said. “So it’s in everyone’s interest to get this bill passed.”

Two polls released in September found that the majority of Minnesota residents support adult-use marijuana legalization—and one survey showed that even more Minnesotans approve of the state’s move to legalize THC-infused edibles that was enacted last year.

survey conducted by officials with the House at the annual State Fair that was released in September also found majority support for legalization. That legislature-run poll found that 61 percent of Minnesotans back legalizing cannabis for adult use.

Support was up this year from 58 percent when the House Public Information Services polled fair goers on the issue in 2021. In 2019, the House poll found 56 percent support for legalization. (Full Story)

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