Purpose

• Directs the Office of Cannabis Management to conduct studies and annual market analyses related to cannabis, hemp, and related activities in Minnesota, and to report findings to the Legislature. The focus includes the regulated cannabis industry, the hemp consumer industry, and the illicit cannabis market, as well as how cannabis use affects driving and public health. It also expands collaboration with state agencies and organizations to support education, prevention, and public safety initiatives.

Main Provisions

• Studies required

  • Assess the expected size and growth of the regulated cannabis industry and the hemp consumer industry, including demand for cannabis flower and cannabis products, how many cannabis businesses are needed, where they should be located, and expected demand from residents of other states.
  • Determine the size of the illicit cannabis market, where illicit cannabis comes from, where enforcement actions (citations and arrests) occur, and which neighborhoods or census areas experience higher enforcement activity.
  • Study impaired driving related to cannabis use, including:
  • accidents involving drivers who admitted cannabis use or tested positive for cannabis/THC or hemp products,
  • arrests of individuals for impaired driving who tested positive for cannabis/THC,
  • convictions for driving under the influence of cannabis/THC.
  • Report timing: preliminary findings by January 15, 2024 and final findings by January 15, 2025 (may be combined into a single report).
  • Collect and include data from agencies such as the Department of Human Services, Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals on mental health and substance use services, emergency room visits, and commitments; also gather summary data from first-episode psychosis programs about people served and waitlists.

• Annual market analysis

  • The Office must conduct and publish an annual market analysis of the regulated cannabis industry, including:
  • the number of licenses issued,
  • recommendations on how many licenses should be available,
  • the stability of the market, including supply sufficiency for consumer demand,
  • the impact of unregulated cannabis sales on the regulated market,
  • the integrity of the medical cannabis patient registry.
  • The Office may seek input from consumers, market stakeholders, and potential new applicants.
  • Timing: the annual market analysis report is due January 15, 2025 and each January 15 thereafter; it may be combined with the regular annual report. The process must include public meetings to collect input and assess whether the current licensing level supports market stability, competitiveness, and limiting unregulated sales.

• Annual report

  • The Office must submit an annual report to the Legislature starting January 15, 2024 and each January 15 thereafter. Contents include:
  • status of the regulated cannabis industry, the illicit market, and the hemp consumer industry,
  • data on accidents, arrests, and convictions related to cannabis use or THC presence among drivers,
  • changes in potency of cannabis flower and products in the regulated market,
  • progress on opportunities for communities negatively impacted by cannabis prohibition (e.g., reducing criminal convictions, increasing economic opportunities),
  • diversity metrics (racial and geographic) in the cannabis industry,
  • proposed legislative changes, including recommendations to streamline licensing and administrative processes,
  • information on adverse effects of secondhand smoke from cannabis flower, products, and hemp-derived products (when combusted or vaporized),
  • funding recommendations for education programs addressing health effects of cannabis use by under-21 individuals, pregnant/breastfeeding individuals, and other health education initiatives,
  • training and program items related to home visiting programs, tribal home visiting, child welfare workers, health education for youth, and model programs to educate youth about health effects,
  • details on CanTrain, CanNavigate, CanStartup, CanGrow, and CanRenew grants and related community development and social equity initiatives,
  • training for peace officers and law enforcement on changes to cannabis laws (including searches/seizures), increasing drug recognition experts, and training on cultural uses of sage (and distinguishing sage use from cannabis),
  • considerations about drug detection canines and their retirement/replacement,
  • coordination with DHS and county social services to address any increase in demand for services.
  • The funding section requires the Office to consult with law enforcement associations, the Minnesota Chiefs of Police Association, the Minnesota Sheriffs Association, the League of Minnesota Cities, the Association of Minnesota Counties, and county social services agencies.

• Collaboration with other agencies

  • The Office must collaborate with state agencies and organizations with cannabis-related expertise to support education, prevention, and public safety efforts. Partners include the Department of Employment and Economic Development, Department of Health, Department of Public Safety, Department of Education, Department of Human Services, Department of Children Youth and Families, Direct Care and Treatment, local government organizations, law enforcement, and county social services agencies.

Significant Changes to Existing Law

• Requires adding comprehensive studies and annual analyses to the Office of Cannabis Management’s duties, and mandates detailed annual reporting on industry status, market dynamics, public health impacts, and social equity initiatives.
• Expands data collection by requiring integration of information from multiple state agencies (DHS, DOH, Direct Care and Treatment, state courts, hospitals) to assess mental health, substance use services, and first-episode psychosis program data related to cannabis use.
• Introduces formal processes for public engagement (public meetings) in the annual market analysis and licensing decisions.
• Elevates focus on unregulated (illicit) cannabis activity, secondhand smoke health effects, impaired driving, and social equity outcomes (including criminal justice relief and economic opportunity).
• Establishes and funds education, training, and public safety initiatives (including CanTrain/CanNavigate/CanStartup/CanGrow/CanRenew programs and officer training).

Key Terms and Concepts Introduced

• regulated cannabis industry
• hemp consumer industry
• illicit cannabis market
• cannabis flower
• cannabis products
• lower-potency hemp edibles
• hemp-derived consumer products
• tetrahydrocannabinol (THC)
• impaired driving (cannabis-related)
• medical cannabis patient registry
• unregulated sales
• CanTrain, CanNavigate, CanStartup, CanGrow, CanRenew programs
• first episode psychosis programs
• drug recognition experts
• sage (cultural uses vs. cannabis)
• drug detection canines
• social equity communities
• licensing and administrative processes
• secondhand smoke health effects
• public education and funding for health initiatives
• collaboration with state and local agencies

Relevant Terms - Office of Cannabis Management - regulated market - illicit market - licensing - public meetings - licensing sufficiency - market stability - supply adequacy - consumer demand - social equity - first-episode psychosis - secondhand smoke - impaired driving - THC - CanTrain, CanNavigate, CanStartup, CanGrow, CanRenew - drug recognition experts - sage training - drug detection canines - criminal convictions relief - economic opportunities - racial and geographic diversity