Purpose of the Bill

This bill aims to modify existing cannabis regulations in Minnesota, particularly focusing on the role of Employee Stock Ownership Plans (ESOPs) within the cannabis industry. It also seeks to clarify and amend the limitations on license ownership across various types of cannabis-related businesses.

Main Provisions

• Definitions and Roles: The bill provides clear definitions for several terms crucial to the cannabis industry, such as "control," "employee stock ownership plan," "financier," "true party of interest," and "trustee." These definitions help delineate the roles and responsibilities within cannabis businesses.

• Employee Stock Ownership Plans (ESOPs): The legislation specifies that trustees of ESOPs and involved parties in such plans are not limited by the general restrictions on being parties of interest in multiple licenses. This means that ESOPs can hold stakes in cannabis businesses without counting towards ownership conflicts.

• Licenses and Ownership:

  • Individuals can only be a true party of interest in one type of cannabis business license unless they hold 10% or less ownership or are involved with an ESOP. This provision allows for greater flexibility in how ESOPs are engaged in the industry.
  • The bill places restrictions on multiple license ownership, specific to cannabis cultivators, manufacturers, retailers, wholesalers, transporters, and microbusinesses. However, exceptions are made for those holding multiple roles within these businesses, primarily through ESOPs or minimal ownership stakes.

Significant Changes

• Establishes exceptions that permit individuals associated with ESOPs to be involved in multiple cannabis licenses, overriding previous restrictions.
• Introduces limitations on the types and numbers of licenses a single entity or individual can hold, though with certain exceptions for ESOPs and minor ownership roles.
• Sets conditions under which different types of cannabis businesses may hold multiple licenses, such as combining event organizer licenses with others, but enforces restrictions on distinct business types to prevent monopoly or unfair advantage.

Relevant Terms

employee stock ownership plans, cannabis licenses, true party of interest, financiers, trustees, gross profit, business ownership, legal definitions, Minnesota cannabis law.