Minnesota Legislature Passes Cannabis Regulation Bill

Forbes

21-05-2025

The Minnesota state legislature approved an omnibus cannabis regulation bill over the weekend, sending the legislation to Democratic Gov. Tim Walz for consideration. The measure, SF 2370, received the approval of a legislative conference committee made up of state representatives and senators on Saturday. Both chambers of the legislature voted in favor of the bill later that day, with a vote of 34-33 in the Minnesota Senate and an 80-50 vote in the state House of Representatives, before sending the measure to the governor's office.
The bill makes several technical tweaks to the state's 2023 cannabis legalization law and adds new provisions sought by the Minnesota Office of Cannabis Management. Democratic Rep. Zack Stephenson, one of the sponsors of the bill, said that the conference committee version of the legislation retains most of the provisions passed by the House.
'There's a lot of provisions in this bill that I think are important and significant and will help move our nascent cannabis marketplace forward in Minnesota,' Stephenson said, according to a House of Representatives report on the bill.
Prior to Saturday's votes, Republican Rep. Nolan West encouraged his colleagues to vote in favor of the conference committee report, saying the legislation brings Minnesota 'one step closer' to a legal cannabis market offering safe, lab-tested products.
West also added that Minnesota has been slow to launch its regulated cannabis market after cannabis legalization was approved in May 2023. He also noted that Ohio has already begun regulated sales of recreational marijuana, despite the state legalizing adult-use cannabis six months after Minnesota.
'Meanwhile, Minnesota, with our six-month head start, has—let me see here—not a single licensed store,' West said, according to a report from online news source Cannabis Business Times. 'We could do a lot better. Thankfully, this bill does help. We have a hopelessly convoluted regulatory system based on this fantasy that you can create a craft cannabis market based on government regulation. It's like trying to run Amazon out of an Etsy store with three inspectors checking the doilies for antitrust violations.'
The bill includes several modifications to existing law, including adding a hemp wholesaler license for low-potency (less than 0.3% THC) cannabis products. The measure also permits those who have an adjudicated cannabis-related offense to qualify as social equity applicants and allows vendors to provide samples at licensed cannabis events. Another provision of the bill permits hemp-infused beverages with no more than 10 milligrams of THC per serving.
The Minnesota State Capitol in St. Paul.
Associated Press
Before the final vote on the legislation, Stephenson noted that the state needs a license for wholesalers of hemp THC beverages.
'I want members to know that these low-potency hemp beverages are a real Minnesota creation and something that is a nation-leading thing that has been really productive for our local breweries,' Stephenson said. 'A lot of our little craft breweries across Minnesota are struggling right now due to declining sales in the beer space. And many of them have found significant economic gain by taking up these low-dose, hemp-THC products.'
Eric Taubel, interim director of the Minnesota Office of Cannabis Management (OCM), told lawmakers at a legislative committee meeting last week that the agency's staff now numbers more than 100. He added that the OCM is now focused on its primary goal of creating an equitable cannabis industry focused on health and public safety and market integrity while inspiring consumer confidence.
'This bill has provisions that touch on each of those sort of broad categories within the mission statement,' Taubel said.
Taubel also highlighted proposed amendments to state regulations, including changes in the application process, licensing, social equity eligibility and other rules.
Cannabis attorney Mitch Chargo says the bill 'introduces several important developments for the industry.'
'Notably, it creates a new lower-potency hemp wholesaler license. It also enables cannabis businesses to provide product samples at authorized events which will greatly enhance consumer education and brand exposure,' Chargo writes in an email. 'Additionally, hemp businesses are now able to export hemp-derived products out of state, even if those products do not meet Minnesota's compliance standards, which also opens broader market opportunities for Minnesota businesses.'