SF1731

This bill, Minnesota Senate File No. 1731, seeks to amend Minnesota Statutes 2024, Section 342.14, Subdivision 1, by modifying the application requirements for cannabis business licenses in the state.

Key Proposed Changes & Requirements:

1. Comprehensive Application Contents

   • Name, address, and date of birth of the applicant.
     
   • Disclosure of ownership and control structure.
     
   • Disclosure of any bankruptcy history.
     
   • Legal property description of the business (if applicable).
     
   • Business location details and planned square footage.
     
   • Security plan (if applicable).
     
   • Proof of trade name registration.
     
   • Business plan covering financial and operational aspects.
     
   • Standard operating procedures, including quality assurance, inventory control, tax compliance, and more.
     
   • Labor Peace Agreement – Attestation that the business has entered into a labor peace agreement.
     
   • Employee training and education plans.
     
   • Disclosure of any regulatory or legal violations.
     
   • Certification of compliance with the law.
     
   • Designation of authorized business representatives.
     
   • Agreement to respond to state agency requests for information.
     
   • Background check authorization for all key stakeholders.
     
   • Proof of social equity applicant status (if applicable).
     
   • Attestation that business policies comply with state regulations.
     

2. Ownership & Control Disclosure

   • Details on company management, ownership percentages, and any parent company structures.
     
   • Information on past or present cannabis business ownership in any state or country.
     
   • Required corporate and financial documents, including funding sources and existing financial obligations.
     

3. Ongoing Compliance & Exceptions

   • Commitments made in the application, including labor agreements, are mandatory for license renewal.
     
   • Corporations or associations must have at least two officers or managing agents sign the application.
     
   • The Office of Cannabis Management may exempt cooperative members with less than 5% ownership from certain disclosure requirements.
     

Purpose of the Bill:

This bill aims to increase transparency, regulate cannabis businesses more effectively, and ensure compliance with labor and social equity standards while providing flexibility in certain ownership disclosures.