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ST. PAUL, Minn. (GRAY) – The Minnesota House of Representatives passed a bill Thursday that aimed to speed up the implementation of a legal cannabis market in the state. The drug was legalized in 2023, and while possession is currently legal, there are no officially licensed businesses.
“There’s a number of provisions in this bill designed to expedite the process of setting up a good, legitimate marketplace for cannabis to displace that illicit marketplace that’s out there,” said author Rep. Zach Stephenson (DFL-Coon Rapids).
Stephenson played a pivotal role in passing the legalization bill last year, but acknowledged his new law needed to be updated with the availability of new information.
“It had been 100 years since we had ended the prohibition on alcohol, and we were still making changes to our liquor laws,” said Stephenson, “so it’s not surprising that we would be back a year later with some changes and clarifications on the landmark cannabis legislation that we passed.”
One of the mostly heavily discussed provisions during Thursday’s discussion on the bill was the introduction of a “lottery system” for the licensing process. Notably, last year’s law established a social equity system, where those from communities historically disadvantaged by cannabis prohibition would get priority in licensing. The new bill changes the old system. Instead, social equity applicants would now be eligible for pre-approval.
The new bill also sets up two lottery-based systems, replacing the merit-based licensing system that was present in the initial law. One lottery would be for social equity applicants and the other for all other applicants.
Discussion on the House Floor was extensive, both relating to the lottery and to other matters.
Republicans, like Representative Nolan West (R-Blaine), introduced several amendments to the bill. One of West’s amendments would have allowed for earlier cultivation to meet demand concerns at the start of implementation.
“What we need in order to have a safe and regulated market is cultivation to start as soon as possible, because you cannot have a retail store unless you have product to sell,” West said.
Stephenson argued that changing the rules now would create problems for the Office of Cannabis Management, and while he acknowledged the concerns about the illicit market, urged his colleagues to vote against early cultivation.
“I think having multiple sets of rules, the current medical rules, these temporary rules, the official rules, will sew confusion and will distract the Office away from getting the actual rules out the door as quickly as possible, which I agree with Representative West, is an imperative,” said Stephenson.
The bill was amended to include a study on the effects of legalization on youth drug use and to move up the pre-approval deadline to create faster licensing.
Republicans also introduced amendments to ban flavored edibles and to increase penalties for underage use. Both those amendments failed.
The bill still needs to be heard in the Senate.
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