Purpose of the Bill

The bill aims to amend Minnesota statutes relating to cannabis businesses, modifying rules around employee stock ownership plans and establishing limitations on the number and types of licenses that individuals and entities can hold for operating cannabis-related businesses.

Main Provisions

• Definitions: Clarifies terms such as "control," "employee stock ownership plan," "financial institution," "financier," and "true party of interest" for the purposes of cannabis business operations in Minnesota.

• Employee Stock Ownership Plans: The bill allows trustees of employee stock ownership plans to have multiple interests in cannabis business licenses without the limitations that apply to other individuals.

• License Limitations:

  • Limits on the number of applications and licenses an individual can hold for cannabis businesses, not exceeding ten percent ownership without specific exemptions.
  • Specific roles and entities, including trustees of employee stock ownership plans, are exempt from these limitations.

• Restrictions on Business Operations:

  • Cannabis businesses (microbusinesses, mezzobusinesses, cultivators, manufacturers, retailers, wholesalers, transporters) face restrictions on operating multiple cannabis or hemp businesses.
  • Regulatory bodies have the authority to establish further limits on licenses as needed.

Significant Changes to Existing Law

• Ownership and License Restrictions: The bill introduces stricter regulation and oversight regarding who can apply for and hold licenses for cannabis operations, aiming to maintain a regulated and limited industry landscape.

• Exemptions for Employee Stock Ownership Plans: These provisions offer a pathway for broader employee ownership models in the cannabis industry, potentially fostering wider employee involvement and ownership in businesses.

Relevant Terms

• Cannabis business
• Employee stock ownership plan
• License limitations
• True party of interest
• Financial institution
• Trustee