Minnesota Legislature Advances Cannabis Market Framework to Governor

LOS ANGELES- Minnesota lawmakers have passed a comprehensive bill aimed at refining the state’s adult-use cannabis program, forwarding it to Governor Tim Walz for approval. The legislation, known as SF 2370, seeks to address regulatory challenges and expedite the establishment of a legal cannabis marketplace following the state’s legalization of adult-use cannabis in 2023.

The bill introduces several measures to streamline the cannabis industry’s rollout:

• Creation of a lower-potency hemp wholesaler license to regulate products with reduced THC content.

• Eligibility expansion for social equity applicants, including individuals with prior cannabis-related convictions.

• Authorization for vendors to provide product samples at cannabis-related events.

• Permission for Minnesota manufacturers to export low-potency hemp products to states where they are compliant.

• Allowance for testing facilities to commence operations while undergoing accreditation.

• Adjustment of THC beverage regulations, permitting single-serving labels for drinks containing up to 10 milligrams of THC .

Implementation and Oversight

The Office of Cannabis Management (OCM) is designated to oversee the implementation of these changes. Interim Director Eric Taubel emphasized the agency’s commitment to fostering an equitable and safe cannabis industry. The OCM plans to initiate license lotteries beginning June 5, targeting social equity and general applicants for roles such as cultivators, manufacturers, and vertically integrated businesses .

Representative Zack Stephenson (DFL-Coon Rapids), the bill’s sponsor, highlighted the importance of the legislation in advancing Minnesota’s cannabis market. He noted that the bill incorporates numerous provisions from the House’s version to facilitate the market’s development .

However, some lawmakers expressed concerns regarding the bill’s omissions. Senator Jordan Rasmusson (R-Fergus Falls) pointed out the absence of specific consumer protection measures, such as mandatory warning labels on cannabis packaging to deter consumption by children .