Purpose

• Update and expand Minnesota’s cannabis-related licensing and event provisions. The bill creates and updates licenses for various cannabis and hemp businesses, sets licensing fees, and adds new rules for temporary cannabis events. It also allows certain licenses to sell cannabis products at temporary events and strengthens requirements for security, health, and local approvals.

Key Licensing Changes and Fees

• General licensing framework: The office must collect application fees, initial licensing fees, and renewal fees for each license type. Fees are nonrefundable. Local governments may charge a retailer registration fee.
• Fees by license type (application, initial, renewal):
  • Cannabis microbusiness: app $500; initial $0; renewal $2,000
  • Cannabis mezzobusiness: app $5,000; initial $5,000; renewal $10,000
  • Cannabis cultivator: app $10,000; initial $20,000; renewal $30,000
  • Cannabis manufacturer: app $10,000; initial $10,000; renewal $20,000
  • Cannabis retailer: app $2,500; initial $2,500; renewal $5,000
  • Cannabis wholesaler: app $5,000; initial $5,000; renewal $10,000
  • Cannabis transporter: app $250; initial $500; renewal $1,000
  • Cannabis testing facility: app $5,000; initial $5,000; renewal $10,000
  • Cannabis delivery service: app $750; initial $500? (text shows $500 for initial); renewal $1,000
  • Cannabis event organizer: app $750; initial $750; renewal $750; temporary cannabis event application fee $750
  • Lower-potency hemp edible manufacturer: app $250; initial $1,000; renewal $1,000
  • Lower-potency hemp edible wholesaler: app $250; initial $10,000; renewal $10,000
  • Lower-potency hemp edible retailer: app $250 (per location, or $250 if single location); initial $250 (per location); renewal $250 (per location)
  • Medical cannabis combination business: app $10,000; initial $20,000; renewal $70,000
• Local government note: Local units can charge a retailer registration fee; other licensing fees are specified above.

Cannabis Event Organizer Licensing (Sec. 2)

• What the license allows: A cannabis event organizer license lets the holder run temporary cannabis events (up to four days each) and perform related activities approved by the office.
• Information required with the license application:
  • Other cannabis or hemp licenses held
  • Event location and address
  • Name of the event
  • Diagram of the event layout (including entrances/exits, consumption areas, retail areas, and storage areas for cannabis/hemp products)
  • List of participating cannabis and hemp businesses and the products they will sell (can be amended up to 72 hours before the event)
  • Event dates and hours
  • Proof of local approval and evidence of compliance with operation requirements
  • Additional disclosures about military service by applicants or key personnel (optional)
  • Descriptions of operating procedures, security measures, health and safety plans, waste handling, transport, and reporting practices
• Operational requirements:
  • Security plans and procedures to prevent intoxication, control crowds, verify age (21+), and manage access to consumption and retail areas
  • Compliance with state and local laws, license verification for participating businesses, and proper handling of violations
  • Health and safety planning, including emergency readiness and medical assistance
  • Waste management and secure disposal of cannabis waste
  • Transportation coordination with licensed cannabis transporters
  • Post-event reporting and regulatory inspections
• Labor peace requirement: If the license holder has ten or more full-time employees, renewing license requires an attestation from a bona fide labor organization that a labor peace agreement exists.
• License limits: A holder of a cannabis event organizer license cannot simultaneously hold certain other licenses (e.g., testing facility, lower-potency hemp licenses). The office can limit the number of cannabis event licenses a person or business may hold. The restriction also applies to all members or managers of a cannabis business.

Local Temporary Event Approval (Sec. 3)

• Timing and submission: At least 90 days before a temporary cannabis event, the organizer must submit information to the office, in a form approved by the office. This includes proof of local approval, event location, event name, layout diagram, list of participating businesses, dates/hours, and evidence of compliance with all requirements.
• Details the office may require: The office may inspect the event site before approval.
• Amendments: The list of participating businesses can be amended up to 72 hours before the event.
• Office authority: The office may limit the number of temporary cannabis events hosted by a license holder.

Cannabis Event Sales and Onsite Retail (Sec. 4)

• Authorized sellers at events: Microbusinesses with a retail endorsement, mezzobusinesses with a retail endorsement, retailers, medical cannabis combination businesses operating a retail location, and lower-potency hemp edible retailers (including the event organizer) may sell:
  • Cannabis plants, adult-use cannabis flower, adult-use cannabis products
  • Lower-potency hemp edibles and hemp-derived consumer products
  • All sales must occur in a designated retail area on the premises diagram
• Verification and restrictions:
  • Authorized retailers must verify the age of customers (must be at least 21)
  • Sales of cannabis products to visibly intoxicated individuals are prohibited
  • Display samples are allowed with limits; samples must be labeled and kept in secure display cases or jars
  • A display sample may not exceed eight grams of flower or concentrate or more than 100 milligrams of THC per edible
  • Customers may be allowed to smell products before purchase
  • Required labeling and notices apply; products must comply with testing, packaging, and labeling rules
  • Vending machine dispensing of cannabis products is not allowed
  • Secure storage requirements apply for display items; items must be stored in locked containers when not being sold
• Recording and compliance: Retailers must record all sales and movements in the statewide monitoring system (for plants and products sold, distributed, damaged, or destroyed)
• Display and product restrictions: All sales and displays must occur within the designated retail area, and products must be stored securely when not on display.

Relevant Restrictions and Miscellaneous

• The bill preserves a clear boundary between temporary cannabis events and ongoing retail operations, emphasizing that temporary events must follow the same overarching rules for licensing, security, health, and reporting.
• It ensures age verification, product labeling, and safe handling protocols are in place for events.
• It prohibits certain distribution methods (e.g., vending machines) and strengthens storage security.
• It requires coordination with local governments for approvals and permits before events.

Relevant terms section follows.

Relevant Terms - cannabis event organizer license - cannabis event organizer - temporary cannabis event - adult-use cannabis / recreational cannabis - lower-potency hemp edible / hemp edible - medical cannabis combination business - cannabis microbusiness / cannabis mezzobusiness - cannabis cultivator / cannabis manufacturer / cannabis retailer / cannabis wholesaler / cannabis transporter / cannabis testing facility / cannabis delivery service - local unit of government / local approval - statewide monitoring system - age verification / 21 years of age - security measures / emergency response / fire safety - display samples / labeling requirements - licensed security personnel - labor peace agreement / labor organization attestation - licensing fees / application fees / renewal fees - nonrefundable fees - diagram / layout plan / premises diagram - permitted sales at events / retail area - vending machines prohibition - waste handling / cannabis waste disposal - inspections / compliance reporting - amendment windows (up to 72 hours before event)