1.1Senator Rasmusson moved to amend
H.F. No. 4757, the first unofficial engrossment,
1.2as follows:
1.3Page 40, after line 19, insert:
1.4 "Sec. 49. Minnesota Statutes 2023 Supplement, section 342.04, is amended to read:
1.5342.04 STUDIES; REPORTS.
1.6(a) The office shall conduct a study to determine the expected size and growth of
the
1.7regulated cannabis industry and hemp consumer industry, including an estimate of the
1.8demand for cannabis flower and cannabis products, the number and geographic distribution
1.9of cannabis businesses needed to meet that demand, and the anticipated business from
1.10residents of other states.
1.11(b) The office shall conduct a study to determine the size of the illicit cannabis
market,
1.12the sources of illicit cannabis flower and illicit cannabis products in the state,
the locations
1.13of citations issued and arrests made for cannabis offenses, and the subareas, such
as census
1.14tracts or neighborhoods, that experience a disproportionately large amount of cannabis
1.15enforcement.
1.16(c) The office shall conduct a study on impaired driving to determine:
1.17(1) the number of accidents involving one or more drivers who admitted to using cannabis
1.18flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products,
1.19or who tested positive for cannabis or tetrahydrocannabinol;
1.20(2) the number of arrests of individuals for impaired driving in which the individual
1.21tested positive for cannabis or tetrahydrocannabinol; and
1.22(3) the number of convictions for driving under the influence of cannabis flower,
cannabis
1.23products, lower-potency hemp edibles, hemp-derived consumer products, or
1.24tetrahydrocannabinol.
1.25(d) The office shall provide preliminary reports on the studies conducted pursuant
to
1.26paragraphs (a) to (c) to the legislature by January 15, 2024, and shall provide final
reports
1.27to the legislature by January 15, 2025. The reports may be consolidated into a single
report
1.28by the office.
1.29(e) The office shall collect existing data from the Department of Human Services,
1.30Department of Health, Minnesota state courts, and hospitals licensed under chapter
144 on
1.31the utilization of mental health and substance use disorder services, emergency room
visits,
1.32and commitments to identify any increase in the services provided or any increase
in the
2.1number of visits or commitments. The office shall also obtain summary data from existing
2.2first episode psychosis programs on the number of persons served by the programs and
2.3number of persons on the waiting list. All information collected by the office under
this
2.4paragraph shall be included in the report required under paragraph (f).
2.5(f) The office shall conduct an annual market analysis on the status of the regulated
2.6cannabis industry and submit a report of the findings. The office shall submit the
report by
2.7January 15, 2025, and each January 15 thereafter and the report may be combined with
the
2.8annual report submitted by the office. The process of completing the market analysis
must
2.9include holding public meetings to solicit the input of consumers, market stakeholders,
and
2.10potential new applicants and must include an assessment as to whether the office has
issued
2.11the necessary number of licenses in order to:
2.12(1) ensure the sufficient supply of cannabis flower and cannabis products to meet
demand;
2.13(2) provide market stability;
2.14(3) ensure a competitive market; and
2.15(4) limit the sale of unregulated cannabis flower and cannabis products.
2.16(g) The office shall submit an annual report to the legislature by January 15, 2024,
and
2.17each January 15 thereafter. The annual report shall include but not be limited to
the following:
2.18(1) the status of the regulated cannabis industry;
2.19(2) the status of the illicit cannabis market and hemp consumer industry;
2.20(3) the number of accidents, arrests, and convictions involving drivers who admitted
to
2.21using cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
2.22consumer products or who tested positive for cannabis or tetrahydrocannabinol;
2.23(4) the change in potency, if any, of cannabis flower and cannabis products available
2.24through the regulated market;
2.25(5) progress on providing opportunities to individuals and communities that experienced
2.26a disproportionate, negative impact from cannabis prohibition, including but not limited
to
2.27providing relief from criminal convictions and increasing economic opportunities;
2.28(6) the status of racial and geographic diversity in the cannabis industry;
2.29(7) proposed legislative changes, including but not limited to recommendations to
2.30streamline licensing systems and related administrative processes;
3.1(8) information on the adverse effects of second-hand smoke from any cannabis flower,
3.2cannabis products, and hemp-derived consumer products that are consumed by the
3.3combustion or vaporization of the product and the inhalation of smoke, aerosol, or
vapor
3.4from the product; and
3.5(9) recommendations for the levels of funding for:
3.6(i) a coordinated education program to address and raise public awareness about the
top
3.7three adverse health effects, as determined by the commissioner of health, associated
with
3.8the use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived
3.9consumer products by individuals under 21 years of age;
3.10(ii) a coordinated education program to educate pregnant individuals, breastfeeding
3.11individuals, and individuals who may become pregnant on the adverse health effects
of
3.12cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
3.13products;
3.14(iii) training, technical assistance, and educational materials for home visiting
programs,
3.15Tribal home visiting programs, and child welfare workers regarding safe and unsafe
use of
3.16cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
3.17products in homes with infants and young children;
3.18(iv) model programs to educate middle school and high school students on the health
3.19effects on children and adolescents of the use of cannabis flower, cannabis products,
3.20lower-potency hemp edibles, hemp-derived consumer products, and other intoxicating
or
3.21controlled substances;
3.22(v) grants issued through the CanTrain, CanNavigate, CanStartup, and CanGrow
3.23programs;
3.24(vi) grants to organizations for community development
in social equity communities
3.25through the CanRenew program;
3.26(vii) training of peace officers and law enforcement agencies on changes to laws involving
3.27cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer
3.28products and the law's impact on searches and seizures;
3.29(viii) training of peace officers to increase the number of drug recognition experts;
3.30(ix) training of peace officers on the cultural uses of sage and distinguishing use
of sage
3.31from the use of cannabis flower, including whether the Board of Peace Officer Standards
3.32and Training should approve or develop training materials;
4.1(x) the retirement and replacement of drug detection canines; and
4.2(xi) the Department of Human Services and county social service agencies to address
4.3any increase in demand for services.
4.4(g) In developing the recommended funding levels under paragraph (f), clause (9),
items
4.5(vii) to (xi), the office shall consult with local law enforcement agencies, the Minnesota
4.6Chiefs of Police Association, the Minnesota Sheriff's Association, the League of Minnesota
4.7Cities, the Association of Minnesota Counties, and county social services agencies."
4.8Page 47, line 20, delete the new language
4.9Page 47, lines 27 to 29, delete the new language and strike the old language
4.10Page 48, lines 1 and 2, delete the new language
4.11Reletter the paragraphs in sequence
4.12Page 52, strike line 21
4.13Renumber the clauses in sequence
4.14Page 58, delete section 62
4.15Page 59, delete section 63
4.16Page 61, delete lines 30 to 33
4.17Page 62, delete lines 1 to 4
4.18Page 62, line 5, delete "
(f)" and insert "
(e)"
4.19Page 108, after line 9, insert:
4.20 "Sec. 122. Minnesota Statutes 2023 Supplement, section 342.73, subdivision 2, is amended
4.21to read:
4.22 Subd. 2.
Definitions. (a) For the purposes of this section, the following terms have the
4.23meanings given.
4.24(b) "Eligible organization" means any organization capable of helping farmers navigate
4.25the regulatory structure of the legal cannabis industry, particularly individuals
facing barriers
4.26to education or employment, and may include educational institutions, nonprofit
4.27organizations, private businesses, community groups, units of local government, or
4.28partnerships between different types of organizations.
4.29(c) "Industry" means the legal cannabis industry in the state of Minnesota.
5.1(d) "Program" means the CanGrow grant program.
5.2(e) "Social equity applicant" means a person who meets the qualification requirements
5.3in section
342.17.
5.4 Sec. 123. Minnesota Statutes 2023 Supplement, section 342.73, subdivision 3, is amended
5.5to read:
5.6 Subd. 3.
Technical assistance grants. (a) Grant money awarded to eligible organizations
5.7may be used for both developing technical assistance resources relevant to the regulatory
5.8structure of the legal cannabis industry and for providing such technical assistance
or
5.9navigation services to farmers.
5.10(b) The office must award grants to eligible organizations through a competitive grant
5.11process.
5.12(c) To receive grant money, an eligible organization must submit a written application
5.13to the office, using a form developed by the office, explaining the organization's
ability to
5.14assist farmers in navigating the regulatory structure of the legal cannabis industry,
particularly
5.15farmers facing barriers to education or employment.
5.16(d) An eligible organization's grant application must also include:
5.17(1) a description of the proposed technical assistance or navigation services, including
5.18the types of farmers targeted for assistance;
5.19(2) any evidence of the organization's past success in providing technical assistance
or
5.20navigation services to farmers
, particularly farmers who live in areas where long-term
5.21residents are eligible to be social equity applicants;
5.22(3) an estimate of the cost of providing the technical assistance;
5.23(4) the sources and amounts of any nonstate funds or in-kind contributions that will
5.24supplement grant money, including any amounts that farmers will be charged to receive
5.25assistance; and
5.26(5) any additional information requested by the office.
5.27(e) In awarding grants under this subdivision, the office shall give weight to applications
5.28from organizations that demonstrate a history of successful technical assistance or
navigation
5.29services, particularly for farmers facing barriers to education or employment.
The office
5.30shall also give weight to applications where the proposed technical assistance will
serve
5.31areas where long-term residents are eligible to be social equity applicants. The office shall
5.32fund technical assistance to farmers throughout the state.
6.1 Sec. 124. Minnesota Statutes 2023 Supplement, section 342.73, subdivision 4, is amended
6.2to read:
6.3 Subd. 4.
Loan financing grants. (a) The CanGrow revolving loan account is established
6.4in the special revenue fund. Money in the account, including interest, is appropriated
to the
6.5commissioner to make loan financing grants under the CanGrow program.
6.6(b) The office must award grants to nonprofit corporations through a competitive grant
6.7process.
6.8(c) To receive grant money, a nonprofit corporation must submit a written application
6.9to the office using a form developed by the office.
6.10(d) In awarding grants under this subdivision, the office shall give weight to whether
6.11the nonprofit corporation:
6.12(1) has a board of directors that includes individuals experienced in agricultural
business
6.13development;
6.14(2) has the technical skills to analyze projects;
6.15(3) is familiar with other available public and private funding sources and economic
6.16development programs;
6.17(4) can initiate and implement economic development projects;
and
6.18(5) can establish and administer a revolving loan account
; and.
6.19(6) has established relationships with communities where long-term residents are eligible
6.20to be social equity applicants.
6.21The office shall make grants that will help farmers enter the legal cannabis industry
6.22throughout the state.
6.23(e) A nonprofit corporation that receives grants under the program must:
6.24(1) establish an office-certified revolving loan account for the purpose of making
eligible
6.25loans; and
6.26(2) enter into an agreement with the office that the office shall fund loans that
the
6.27nonprofit corporation makes to farmers entering the legal cannabis industry. The office
shall
6.28review existing agreements with nonprofit corporations every five years and may renew
or
6.29terminate an agreement based on that review. In making this review, the office shall
consider,
6.30among other criteria, the criteria in paragraph (d).
7.1 Sec. 125. Minnesota Statutes 2023 Supplement, section 342.73, subdivision 5, is amended
7.2to read:
7.3 Subd. 5.
Loans to farmers. (a) The criteria in this subdivision apply to loans made by
7.4nonprofit corporations under the program.
7.5(b) A loan must be used to support a farmer in entering the legal cannabis industry.
7.6Priority must be given to loans to businesses owned by farmers who are eligible to
be social
7.7equity applicants and businesses located in communities where long-term residents
are
7.8eligible to be social equity applicants.
7.9(c) Loans must be made to businesses that are not likely to undertake the project
for
7.10which loans are sought without assistance from the program.
7.11(d) The minimum state contribution to a loan is $2,500 and the maximum is either:
7.12(1) $50,000; or
7.13(2) $150,000, if state contributions are matched by an equal or greater amount of
new
7.14private investment.
7.15(e) Loan applications given preliminary approval by the nonprofit corporation must
be
7.16forwarded to the office for approval. The office must give final approval for each
loan made
7.17by the nonprofit corporation under the program.
7.18(f) If the borrower has met lender criteria, including being current with all payments
for
7.19a minimum of three years, the office may approve either full or partial forgiveness
of interest
7.20or principal amounts.
7.21 Sec. 126. Minnesota Statutes 2023 Supplement, section 342.73, subdivision 7, is amended
7.22to read:
7.23 Subd. 7.
Program outreach. The office shall make extensive efforts to publicize these
7.24grants, including through partnerships with community organizations
, particularly those
7.25located in areas where long-term residents are eligible to be social equity applicants."
7.26Page 110, line 31, delete "
social equity applicants and"
7.27Page 111, line 10, delete everything after "
Only"
7.28Page 111, line 11, delete everything before "
a"
7.29Page 111, line 18, delete everything after the period
7.30Page 111, delete line 19
8.1Page 112, line 4, delete "
qualified social equity applicants" and insert "
local units of
8.2government"
8.3Page 112, line 26, delete everything after "
(c)"
8.4Page 112, delete line 27
8.5Page 112, line 28, delete everything before "
A"
8.6Page 113, line 29, delete "
social equity" and insert "
local unit of government's"
8.7Page 113, line 30, delete "
applicant's"
8.8Page 116, line 18, after "
28," insert "
29,"
8.9Page 116, line 19, after "
55;" insert "
342.02, subdivision 8; 342.17;" and delete "
and"
8.10and after "
subdivision 9" insert "
; and 342.70"
8.11Renumber the sections in sequence and correct the internal references
8.12The motion prevailed. #did not prevail. So the amendment was #not adopted.