1.1Senator Duckworth moved to amend
H.F. No. 4757, the first unofficial engrossment,
1.2as follows:
1.3Page 114, delete section 137 and insert:
1.4 "Sec. 137.
EARLY CULTIVATION.
1.5 Subdivision 1. Early cultivation. (a) The office shall issue premarket licenses for
1.6cannabis microbusiness applicants seeking a cultivation endorsement, cannabis
1.7mezzobusiness applicants seeking a cultivation endorsement, and cannabis cultivation
1.8applicants beginning July 1, 2024, to applicants that demonstrate operational readiness
to
1.9commence cultivation pursuant to the requirements of subdivision 2.
1.10(b) The office shall require a person cultivating cannabis plants under this section
to
1.11comply with the temporary regulations in section 138 and any relevant portions of
Minnesota
1.12Rules, parts 4770.0100 to 4770.4030.
1.13(c) The office shall establish temporary guidelines for acceptance of applications
and
1.14issuance of licenses through agency policy. Temporary guidelines expire when the office
1.15adopts initial rules pursuant to Minnesota Statutes, section 342.02, subdivision 5.
1.16 Subd. 2. Requirements for premarket applicants. (a) Applicants for a premarket
1.17cultivation license must meet all requirements of this chapter.
1.18(b) Applicants for a premarket cultivation license must demonstrate operational readiness
1.19to commence cultivation through:
1.20(1) a cultivation plan demonstrating the proposed size and layout of the cultivation
1.21facility that will be used for premarket cultivation, including the total amount of
plant
1.22canopy;
1.23(2) an operating plan demonstrating plans for managing and executing cultivation at
the
1.24proposed scale, including staffing; wastewater and waste disposal for premarket cultivation
1.25activities; plans for providing electricity, water, and other utilities necessary
for the normal
1.26operation of cultivation activities; and plans for compliance with applicable building
codes
1.27and federal and state environmental and workplace safety requirements and policies;
1.28(3) evidence that the applicant has secured a compliant facility for premarket cultivation
1.29activities, which includes:
1.30(i) letters of intent or agreements contingent upon the granting of a premarket license;
1.31(ii) deeds or other demonstration of ownership; or
2.1(iii) leases;
2.2(4) evidence of compliance with all local zoning and land-use regulations, which may
2.3include preliminary approvals or documentation demonstrating ongoing processes for
2.4obtaining the approvals; and
2.5(5) evidence of compliance with required fire and construction regulations, only if
a
2.6requirement exists, except that an applicant is not required to show proof of a completed
2.7inspection prior to application, but may not operate under this section until the
inspections
2.8are complete.
2.9(c) An applicant for a premarket license is not required to demonstrate readiness
for
2.10full-scale operations beyond the premarket period.
2.11(d) In addition to supplying product for the adult-use cannabis market, an applicant
for
2.12premarket licensure must also agree to supply the medical cannabis market for three
years.
2.13 Subd. 3. Application; contents. (a) An applicant for a premarket license must:
2.14(1) complete an application that contains the information described in subdivision
2 and
2.15Minnesota Statutes, section 342.14, subdivision 1, on a form approved by the office;
and
2.16(2) pay the applicable application fee required under Minnesota Statutes, section
342.11.
2.17(b) The office must not require an applicant to control or own any property on which
or
2.18facility in which to operate a cannabis business at the time of the initial application,
but the
2.19applicant must demonstrate its ability to obtain property control prior to September
1, 2024.
2.20(c) The office must not require an applicant to demonstrate readiness for full-scale
2.21operations beyond the premarket period.
2.22 Subd. 4. Application process. (a) The office shall accept applications from microbusiness
2.23and mezzobusiness and cultivation applicants beginning on July 1, 2024 and ending
July
2.2415, 2024.
2.25(b) The office shall begin processing applications upon receipt, in the following
order
2.26of priority:
2.27(1) cannabis microbusiness license applications from applicants meeting the requirements
2.28of Minnesota Statutes, section 342.17;
2.29(2) cannabis mezzobusiness license applications from applicants meeting the requirements
2.30of Minnesota Statutes, section 342.17;
3.1(3) cannabis cultivation license applications from applicants meeting the requirements
3.2of Minnesota Statutes, section 342.17;
3.3(4) cannabis microbusiness license applications from applicants who do not meet the
3.4requirements of Minnesota Statutes, section 342.17;
3.5(5) cannabis mezzobusiness license applications from applicants who do not meet the
3.6requirements of Minnesota Statutes, section 342.17; and
3.7(6) cannabis cultivation license applications from applicants who do not meet the
3.8requirements of Minnesota Statutes, section 342.17.
3.9(b) The office must deny an application for a premarket license that is:
3.10(1) incomplete;
3.11(2) contains a materially false statement about the applicant or omits material information
3.12about the applicant;
3.13(3) fails to meet the minimum qualifications for the license in Minnesota Statutes,
section
3.14342.18, subdivision 3; or
3.15(4) is not submitted by the deadline established by the office.
3.16(c) The office may request additional information from any applicant if the office
3.17determines that the information is necessary to review or process the application.
If the
3.18applicant does not provide the additional requested information within 14 calendar
days,
3.19the office may deny the application.
3.20(d) If the office denies an application for premarket licensing, the office must notify
the
3.21applicant of the denial and the basis for the denial.
3.22 Subd. 5. Issuance. (a) The office must issue a premarket license to an applicant who
3.23meets the requirements in subdivisions 2 and 3.
3.24(b) The office may stop issuing premarket licenses if market analysis indicates a
risk of
3.25oversupply.
3.26(c) The office shall issue licenses in the order applications were processed under
this
3.27section.
3.28(d) If the office issues fewer social equity applicant licenses than licenses issued
to those
3.29who do not meet the requirements of Minnesota Statutes, section 342.17, the office
shall
3.30reserve an amount of licenses equal to the difference for social equity applicants,
and may
3.31open a second premarket license round open only to social equity applicants.
4.1 Subd. 6. Purpose and restrictions. (a) Premarket licenses are exclusively for the purpose
4.2of cultivating cannabis. It does not authorize manufacturing, distribution, or sale
of cannabis
4.3under this chapter.
4.4(b) A premarket license remains valid for the approved scale of cultivation until
the
4.5licensee receives approval from the office to increase its scale of cultivation, or
receives
4.6endorsements for other activities permitted under this chapter.
4.7 Subd. 7. Revocation. The office may revoke a premarket license if the license holder
4.8fails to meet any requirement of this chapter or violates this chapter.
4.9 Subd. 8. Applicants; right to a reconsideration. (a) An applicant that is not issued a
4.10premarket license may request a records review of the submitted application within
seven
4.11calendar days of receiving notification that the application does not meet the minimum
4.12qualifications for a license under this section or Minnesota Statutes, section 342.18,
4.13subdivision 3.
4.14(b) Upon an applicant's request, the office must allow the applicant to examine the
4.15applicant's records received by the office.
4.16(c) If the office determines that an applicant is ineligible for a premarket license,
the
4.17office must inform the applicant of any reasons that form the basis of the office's
4.18determination.
4.19 Subd. 9. Conversion of premarket licenses. (a) Upon submission of a form prescribed
4.20by the office, a premarket license under this section shall convert to a license under
Minnesota
4.21Statutes, section 342.10, upon promulgation of rules under this chapter. License holders
in
4.22this section must comply with the rules promulgated under this chapter within 90 days
of
4.23conversion. All pre-market license holders must complete any additional requirements
to
4.24obtain a cultivation endorsement under this chapter within 90 days of conversion.
The office
4.25must not charge a fee for the conversion of a premarket license.
4.26(b) A premarket license holder must be engaged in cultivation activities to qualify
for
4.27a conversion of a premarket license, except that an outdoor cultivator may instead
4.28demonstrate the secured outdoor facility is ready for cultivation in accordance with
the
4.29seasonal planting schedules appropriate to the climatic conditions of the area.
4.30(c) Nothing in this section shall waive the requirements that a microbusiness or
4.31mezzobusiness provide the application materials required for endorsements that are
not
4.32cultivation endorsements, prior to receipt of said endorsements.
5.1(d) If a licensee fails to qualify for conversion of a premarket license, then the
licensee
5.2can reapply without penalty once the office begins issuing microbusiness, mezzobusiness,
5.3and cultivation licenses under this chapter.
5.4EFFECTIVE DATE.This section is effective the day following final enactment.
5.5 Sec. 138.
TEMPORARY REGULATION OF CULTIVATION.
5.6 Subdivision 1. Cultivation; generally. (a) Only a pre-market license holder under
5.7Minnesota Statutes, chapter 342 is authorized to cultivate cannabis under this section.
5.8(b) All phases of cultivation must take place in designated, restricted access areas
that
5.9are monitored by a surveillance camera system in accordance with this section.
5.10(c) The cultivation process must be designed to limit contamination by mold, fungus,
5.11bacterial diseases, rot, pests, nonorganic pesticides, and mildew.
5.12(d) The licensee must maintain a record of all crop inputs for at least five years.
The
5.13record must include the following:
5.14(1) the date of application;
5.15(2) the name of the employee applying the crop input;
5.16(3) the name and description of the crop input that was applied, including the chemical
5.17name, product name, and manufacturer, where applicable;
5.18(4) the section, including the square footage, that received the application by batch
5.19number;
5.20(5) either the amount or concentration of the crop input, or both, that was applied;
5.21(6) a copy of the label of the crop input applied; and
5.22(7) the vendor or other origin of the crop input.
5.23(e) At the time of planting, all plants must be tracked in a batch process with a
unique
5.24batch number that must remain with the batch through final packaging.
5.25(f) The batch number must be displayed on all containers and packaging.
5.26(g) Each cultivation area must provide unobstructed access for observation and inventory
5.27of each plant group.
5.28 Subd. 2. Crop inputs used in cultivation of dried raw cannabis. (a) A license holder
5.29cultivating plants intended to become dried raw cannabis must follow practices and
5.30procedures that minimize the risk of chemical contamination or adulteration of the
cannabis.
6.1(b) A license holder may only apply a pesticide in the cultivation of cannabis if
the
6.2pesticide has been:
6.3(1) deemed to be minimum risk by the United States Environmental Protection Agency
6.4in accordance with Code of Federal Regulations, title 40, section 152.25(f), and exempted
6.5from United States Code, title 7, section 136m et seq., the Federal Insecticide, Fungicide,
6.6and Rodenticide Act (FIFRA), and the pesticide's label does not exclude its use on
a genus
6.7cannabis plant;
6.8(2) registered with the United States Environmental Protection Agency under section
3
6.9of FIFRA, United States Code, title 7, section 136m et seq., and is labeled for use
on medical
6.10cannabis or cannabis used for human consumption; or
6.11(3) registered with the United States Environmental Protection Agency under section
3
6.12of FIFRA, United States Code, title 7, section 136m et seq., and:
6.13(i) the active ingredient found in the pesticide is either exempt from the tolerance
6.14requirements in Code of Federal Regulations, title 40, part 180, subpart D, or does
not
6.15require an exemption from the tolerance requirement in Code of Federal Regulations,
title
6.1640, part 180, subpart E;
6.17(ii) the pesticide product label does not prohibit use within an enclosed structure
for the
6.18site of application;
6.19(iii) the pesticide product label expressly has directions for use on unspecified
crops or
6.20plants intended for human consumption; and
6.21(iv) the pesticide product is used in accordance with all applicable instructions,
6.22restrictions, and requirements on the product label.
6.23(c) A license holder may use rooting hormones or cloning gels only during the
6.24propagation phase of the plant life cycle.
6.25(d) A license holder must store all crop input stocks in their original containers
with
6.26their original labels intact. The license holder must ensure that packaged fertilizers
and
6.27containers of diluted or prepared fertilizer remain labeled with information as required
in
6.28Minnesota Statutes, section 18C.215, at all times.
6.29(e) The license holder must apply, store, and dispose of crop inputs, rinsate, and
containers
6.30according to label instructions and all other applicable laws and regulations.
6.31 Subd. 3. Storage. (a) Cannabis must be prepared, handled, and stored in compliance
6.32with sanitation requirements of this section.
7.1(b) A license holder must maintain appropriate temperatures and conditions that will
7.2protect plant material against physical, chemical, and microbial contamination or
deterioration
7.3of the product or its container.
7.4(c) A license holder must store plant material to prevent diversion, theft, or loss,
including
7.5ensuring:
7.6(1) harvested plant material is stored in a secure location at the end of the scheduled
7.7business day; and
7.8(2) the tanks, vessels, bins, or bulk containers containing harvested plant material
are
7.9locked inside a secure area if a process is not completed at the end of a business
day.
7.10(d) A license holder must store all plant material:
7.11(1) in areas that are maintained in a clean, orderly, and well-ventilated condition;
and
7.12(2) in storage areas that are free from infestation by insects, rodents, birds, and
other
7.13pests of any kind.
7.14(e) To prevent degradation, a license holder must store all plant material under conditions
7.15that will protect it against physical, chemical, and microbial contamination of the
product
7.16and its container.
7.17 Subd. 4. Sanitation requirements. A license holder must take all reasonable measures
7.18and precautions to ensure that:
7.19(1) any employee who has a communicable disease does not perform any tasks that
7.20might contaminate plant material;
7.21(2) hand-washing facilities are:
7.22(i) convenient and furnished with running water at a suitable temperature;
7.23(ii) located in all production areas; and
7.24(iii) equipped with effective hand-cleaning and sanitizing preparations and sanitary
towel
7.25service or electronic drying devices;
7.26(3) all employees working in direct contact with plant material and cannabis must
use
7.27hygienic practices while on duty, including:
7.28(i) maintaining personal cleanliness; and
7.29(ii) washing hands thoroughly in a hand-washing area before starting work and at any
7.30other time when the hands may have become soiled or contaminated;
8.1(4) litter and waste are routinely removed and the operating systems for waste disposal
8.2are routinely inspected;
8.3(5) floors, walls, and ceilings where indoor cultivation occurs are constructed with
a
8.4surface that can be easily cleaned and maintained in good repair to inhibit microbial
growth;
8.5(6) lighting is adequate in all areas where plant material is packaged or stored;
8.6(7) where applicable, screening or other protection against the entry of pests is
provided,
8.7including that rubbish is disposed of to minimize the development of odor and the
potential
8.8for the waste becoming an attractant, harborage, or breeding place for pests;
8.9(8) any buildings, fixtures, and other facilities are maintained in a sanitary condition;
8.10(9) toxic cleaning compounds, sanitizing agents, and other potentially harmful chemicals
8.11are identified and stored in a separate location away from plant material and cannabis
and
8.12in accordance with applicable local, state, or federal law;
8.13(10) all contact surfaces, utensils, and equipment used in the production, packaging,
or
8.14storage of plant material are maintained in a clean and sanitary condition;
8.15(11) the water supply is sufficient for necessary operations;
8.16(12) plumbing size and design meets operational needs and all applicable state and
local
8.17laws;
8.18(13) employees have accessible toilet facilities that are sanitary and in good repair;
and
8.19(14) plant material that could support the rapid growth of undesirable microorganisms
8.20are isolated to prevent the growth of those microorganisms.
8.21 Subd. 5. Personnel identification. (a) A license holder must use a personnel identification
8.22system that controls and monitors individual employee access to restricted access
areas
8.23within the cultivation facility, any storage facility, or any secured outdoor area
used for
8.24cultivation.
8.25(b) The employee must have an identification card that contains:
8.26(1) the name of the cardholder;
8.27(2) the date of issuance and expiration;
8.28(3) an alphanumeric identification number that is unique to the cardholder; and
8.29(4) a photographic image of the cardholder.
9.1(c) A license holder's employee must keep the employee's identification card visible
at
9.2all times when in a secured access area.
9.3(d) Any visitor to a restricted access area must wear a visitor pass issued by the
license
9.4holder that is visible at all times.
9.5(e) Upon termination of an employee, a license holder must obtain and destroy the
9.6terminated employee's identification card.
9.7(f) A license holder must post signs in a conspicuous location at each entrance of
any
9.8building or secured outdoor area used for cultivation of cannabis that reads: "PERSONS
9.9UNDER TWENTY-ONE YEARS OF AGE NOT PERMITTED IN RESTRICTED ACCESS
9.10AREAS," and "THESE PREMISES ARE UNDER CONSTANT VIDEO SURVEILLANCE."
9.11 Subd. 6. Security systems. (a) A license holder must install and maintain a professionally
9.12monitored security alarm system. A license holder's security alarm system and all
devices
9.13must continue to operate during a power outage. The office must have the ability to
access
9.14a license holder's security alarm system. The license holder's security alarm system
must
9.15be inspected and all devices tested annually by a qualified alarm vendor.
9.16(b) The security alarm system must provide intrusion and fire detection of all:
9.17(1) facility entrances and exits;
9.18(2) rooms with exterior windows;
9.19(3) rooms with exterior walls;
9.20(4) roof hatches;
9.21(5) skylights;
9.22(6) storage rooms; and
9.23(7) perimeter of any secured outdoor cultivation area.
9.24(c) For the purposes of this section, "security alarm system" means a device or series
of
9.25devices that summons law enforcement personnel during, or as a result of, an alarm
condition.
9.26Devices may include:
9.27(1) hardwired systems and systems interconnected with a radio frequency method such
9.28as cellular or private radio signals that emit or transmit a remote or local audio,
visual, or
9.29electronic signal;
9.30(2) motion detectors;
9.31(3) pressure switches;
10.1(4) a duress alarm;
10.2(5) a panic alarm;
10.3(6) a holdup alarm;
10.4(7) an automatic voice dialer; and
10.5(8) a failure notification system that provides an audio, text, or visual notification
of any
10.6failure in the surveillance system.
10.7(d) A license holder must operate and maintain in good working order a closed-circuit
10.8television (CCTV) surveillance system on all of its premises, which must operate 24
hours
10.9per day, seven days per week. The surveillance system must visually record:
10.10(1) all phases of production;
10.11(2) all areas that might contain plant material and cannabis, including all safes
and vaults;
10.12(3) all points of entry and exit, including sales areas;
10.13(4) the entrance to the video surveillance room; and
10.14(5) any parking lot, which must have appropriate lighting for the normal conditions
of
10.15the area under surveillance.
10.16(e) Cameras must:
10.17(1) capture clear and certain identification of any person entering or exiting a
10.18manufacturing facility or distribution facility;
10.19(2) have the ability to produce a clear, color, still photo either live or from a
recording;
10.20(3) have an embedded date-and-time stamp on all recordings that must be synchronized
10.21and not obscure the picture; and
10.22(4) continue to operate during a power outage.
10.23(f) A license holder must maintain recordings that:
10.24(1) export still images in an industry standard image format, including .jpg, .bmp,
or
10.25.gif;
10.26(2) are archived in a proprietary format that ensures authentication and guarantees
that
10.27the recorded image has not been altered; and
10.28(3) are saved in an industry standard file format that can be played on a standard
computer
10.29operating system.
11.1(g) All recordings must be erased or destroyed before disposal.
11.2(h) The license holder must maintain all security system equipment and recordings
in a
11.3secure location to prevent theft, loss, destruction, corruption, and alterations.
11.4(i) The license holder must ensure that 24-hour recordings from all video cameras
are:
11.5(1) available for viewing by the office upon request;
11.6(2) retained for at least 90 calendar days;
11.7(3) maintained free of alteration or corruption; and
11.8(4) retained longer, as needed, if the license holder is given actual notice of a
pending
11.9criminal, civil, or administrative investigation, or other legal proceeding for which
the
11.10recording may contain relevant information.
11.11 Subd. 7. Record keeping requirements. (a) A license holder must maintain for at least
11.12five years complete, legible, and current records including the amount of plants being
grown
11.13by the license holder on a daily basis.
11.14(b) A license holder must maintain records that reflect all financial transactions
and the
11.15financial condition of the business. The following records must be maintained for
at least
11.16five years, unless otherwise specified by the office, and made available for review,
upon
11.17request of the office:
11.18(1) purchase invoices, bills of lading, transport manifests, sales records, copies
of bills
11.19of sale, and any supporting documents, to include the items or services purchased,
from
11.20whom the items were purchased, and the date of purchase;
11.21(2) bank statements and canceled checks for all business accounts;
11.22(3) accounting and tax records;
11.23(4) records of all financial transactions, including contracts and agreements for
services
11.24performed or services received;
11.25(5) all personnel records;
11.26(6) crop inputs applied to the growing medium, plants, or plant material used in
11.27production;
11.28(7) production records;
11.29(8) transportation records;
11.30(9) inventory records;
12.1(10) records of all samples sent to a testing laboratory and the quality assurance
test
12.2results; and
12.3(11) records of any theft, loss, or other unaccountability of any cannabis or plant
material."
12.4Renumber the sections in sequence and correct the internal references
12.5Amend the title accordingly
12.6The motion prevailed. #did not prevail. So the amendment was #not adopted.