Minnesota House Will Vote On Marijuana Legalization Bill Next Week, Sponsor Announces On 4/20

A much-anticipated Minnesota House floor vote on a bill to legalize marijuana has officially been scheduled for next week, the sponsor announced on the Thursday’s 4/20 cannabis holiday.

After moving through an extensive committee process, with 15 panels approving the measure from Rep. Zack Stephenson (D), the bill will be taken up on the floor on Monday.

“We’re very close to getting this done and gaining momentum every day!!” he said.

Big news! My bill to legalize adult-use cannabis in Minnesota has been scheduled for a vote in the MN House on Monday!

We’re very close to getting this done and gaining momentum every day!!

— Zack Stephenson (@zackstephenson) April 20, 2023

Meanwhile, a Senate version sponsored by Sen. Lindsey Port (D) cleared its second-to-last committee on Monday and faces its final stop on Tuesday, meaning floor action on that proposal is also likely imminent.

Port on Thursday congratulated Stephenson on the progress of his bill in the House, saying that the Senate version will be “right behind you.”

So excited for my partner in cannabis to move his bill on the House floor! We'll be right behind you!! https://t.co/29vAkw7C5D

— Senator Lindsey Port (@Lindsey_Port) April 20, 2023

Both bills have been amended numerous times throughout this process, with lawmakers working to incorporate public feedback, revise policies around issues like tax structures for the market and tighten up language.

For example, a Senate panel adopted a comprehensive substitute from the sponsor at a prior committee stop in March that is primarily meant to address concerns from industry stakeholders who are operating under a cannabis law enacted last year that legalized low-THC edibles in the state.

It’s likely that a bicameral conference committee will need to convene to address outstanding differences once the full House and Senate act on their respective versions.

With majorities in both the House and Senate and control over the governorship this session, Democratic-Farmer-Labor party officials are confident that legalization will be enacted in short order following the extensive committee consideration.

Gov. Tim Walz (D) released his biennial budget request in January, which included proposed funding to implement marijuana legalization and expungements, and made projections about the millions of dollars in cannabis tax revenue that his office estimates the state will earn after the reform is enacted.

Minnesotans are ready to legalize adult-use cannabis and expunge cannabis convictions in Minnesota.

I’m ready to sign it into law.

— Governor Tim Walz (@GovTimWalz) April 20, 2023

The legislation that’s advancing is an iteration of the 2021 House-passed bill from former Majority Leader Ryan Winkler (D), who now serves as campaign chairman of the advocacy coalition MN is Ready.

The governor has called on supporters to join lawmakers and the administration in their push legalize marijuana this session, and he circulated an email blast in January that encourages people to sign a petition backing the reform.

Here are the main components of the revised marijuana legalization bills, HF 100 and SF 73:

Adults 21 and older could purchase up to two ounces of cannabis and cultivate up to eight plants, four of which could be mature.

They could possess up to two ounces in a public place and up to five pounds in a private dwelling.

Gifting up to two ounces of marijuana without remuneration between adults would be permitted.

It would promote social equity, in part by ensuring that diverse licensing by scoring equity applicants higher.

Prior marijuana records would also be automatically expunged. The Bureau of Criminal Apprehension would be responsible for identifying people who are eligible for relief and process the expungements.

In addition to creating a system of licensed cannabis businesses, municipalities and counties could own and operate government dispensaries.

On-site consumption permits could be approved for events, and cannabis delivery services would be permitted under the bill.

Unlike in many legal states, local municipalities would be banned from prohibiting marijuana businesses from operating in their areas, though they could set “reasonable” regulations on the time of operation and location of those businesses.

Under the House bill, cannabis sales would be taxed at eight percent—and thereafter, the commissioner of management and budget would adjust the rate every two years so that revenues equal, or do not significantly exceed, the costs of implementing legalization incurred by various agencies. The Senate bill calls for a 10 percent tax rate on marijuana sales that would not change. That’s one key area that will need to be resolved.

Part of the tax revenue would fund substance misuse treatment programs, as well as grants to support farmers.

A new Office of Cannabis Management would be established, and it would be responsible for regulating the market and issuing cannabis business licenses. There would be a designated Division of Social Equity.

People living in low-income neighborhoods and military veterans who lost honorable status due to a cannabis-related offense would be considered social equity applicants eligible for priority licensing.

The legislation as revised fixes an issue in current statute that prohibits liquor stores from selling THC products.

It also contains language banning synthetic cannabinoids, which is consistent with Board of Pharmacy rules put into place last year.

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The House panels that have passed the legislation in recent weeks are the Ways and Means Committee, Taxes Committee, Transportation Finance and Policy Committee, Economic Development Finance and Policy Committee, Public Safety Finance and Policy Committee, Health Finance and Policy Committee, Education Finance Committee, Human Services Policy Committee, Workforce Development Finance and Policy Committee, Agriculture Finance and Policy Committee, State and Local Government Finance and Policy Committee, Labor and Industry Finance and Policy Committee, Environment and Natural Resources Finance and Policy Committee, Judiciary Finance and Civil Law Committee and Commerce Finance and Policy Committee (twice).

The Senate committees that have signed off so far are the Taxes Committee, Rules and Administration Committee, State and Local Government and Veterans Committee, Labor Committee, Human Services Committee, Health and Human Services Committee, Transportation Committee, Environment, Climate, and Legacy Committee, Agriculture, Broadband, and Rural Development Committee, Jobs and Economic Development Committee, Commerce and Consumer Protection Committee and Judiciary and Public Safety Committee (twice).

Lawmakers and the governor have expressed optimism about the prospects of legalization this session, especially with Democrats newly in control of both chambers, whereas last session they only had a House majority.

Following their election win in November, Democrats internally agreed to discuss the issue imminently.

House Speaker Melissa Hortman (D) had said that she expects cannabis reform to be included in the governor’s forthcoming budget request, though she reiterated that the reform “will take a long time” to move through the legislature.

The governor included funding for implementing legalization in his last executive budget request, but lawmakers were unable to enact the policy change. He and Hortman have differing opinions about how quickly the issue can advance this session, however, with Walz recently saying it would be done “by May” and the speaker indicating it could take until next year.

Winkler, who recently launched a THC beverage company, told Marijuana Moment that he agrees with the governor, saying “it is likely that [passing legalization] will be done by May.”

“The reason is that the legislature adjourns until next year at the end of May, and so if they don’t do it in that timeline, it’ll take another full year—and I don’t think anything will be improved or bettered by waiting,” he said. “So it’s in everyone’s interest to get this bill passed.”

Two polls released in September found that the majority of Minnesota residents support adult-use marijuana legalization—and one survey showed that even more Minnesotans approve of the state’s move to legalize THC-infused edibles that was enacted last year.

A survey conducted by officials with the House at the annual State Fair that was released in September also found majority support for legalization. That legislature-run poll found that 61 percent of Minnesotans back legalizing cannabis for adult use.

Support was up this year from 58 percent when the House Public Information Services polled fair goers on the issue in 2021. In 2019, the House poll found 56 percent support for legalization.

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Photo courtesy of Philip Steffan.

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