The Minnesota state legislature has passed a comprehensive cannabis regulation bill, SF 2370, which now awaits the approval of Governor Tim Walz. This legislation was approved by a conference committee composed of both state representatives and senators over the weekend. In the Senate, the bill passed with a narrow margin of 34-33, while the House of Representatives voted 80-50 in favor of the measure.
The new bill makes important adjustments to the existing cannabis legalization law enacted in May 2023 and incorporates several provisions requested by the Minnesota Office of Cannabis Management (OCM). Democratic Rep. Zack Stephenson, one of the bill’s sponsors, highlighted the significance of the new provisions for advancing Minnesota’s emerging cannabis market.
Republican Rep. Nolan West advocated for passage of the bill, emphasizing that it brings the state closer to establishing a regulated cannabis market with safe, lab-tested products. He pointed out that despite Minnesota’s head start in legalization, the state has yet to open a single licensed cannabis store, while Ohio has already begun sales of recreational marijuana.
The bill introduces several key changes, including the creation of a hemp wholesaler license for low-potency cannabis products containing less than 0.3% THC. It also allows individuals with adjudicated cannabis-related offenses to qualify as social equity applicants and permits vendors to provide samples at licensed cannabis events. Additionally, the legislation authorizes hemp-infused beverages with a maximum of 10 milligrams of THC per serving.
In discussions leading up to the vote, Rep. Stephenson emphasized the need for a licensing framework for wholesalers of low-potency hemp THC beverages, which he described as an innovative product beneficial to Minnesota’s local breweries. He noted that many breweries are facing declining sales in the beer market and have found economic opportunities in producing these hemp-THC beverages.
Eric Taubel, interim director of the OCM, informed lawmakers that the agency now employs over 100 staff members and is focused on developing a fair cannabis industry that prioritizes health, public safety, and consumer trust. He remarked that the bill’s provisions align with the agency’s mission.
Cannabis attorney Mitch Chargo commented on the bill’s introduction of a new lower-potency hemp wholesaler license and the allowance for cannabis businesses to provide product samples at authorized events, which he believes will improve consumer education and brand visibility. Furthermore, the bill enables hemp businesses to export products out of state, even if they do not meet Minnesota’s compliance standards, thus expanding market opportunities for local businesses.
As the bill moves to the governor’s desk, it represents a critical step in shaping Minnesota’s cannabis landscape and addressing the regulatory framework needed for a successful market launch.
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