Purpose

The bill requires the Office of Cannabis Management to conduct studies and annual market analyses about Minnesota’s cannabis and hemp industries, monitor the illicit market and impaired driving, and report findings to the Legislature. It also expands ongoing data collection from health and public safety agencies and emphasizes efforts to address communities historically harmed by cannabis prohibition.

Main Provisions

• Studies to determine market size and growth

  • Assess the regulated cannabis industry and the hemp consumer industry, including how much cannabis flower and related products people want, how many cannabis businesses are needed, and where they should be located. It also looks at demand from residents of other states.

• Studies of the illicit market and enforcement

  • Estimate the size of illicit cannabis, identify sources of illegal products, and map where cannabis-related citations and arrests happen, including neighborhoods or census areas with heavy enforcement.

• Studies on impaired driving

  • Measure accidents and arrests involving drivers who used cannabis or tested positive for cannabis/THC, and track convictions for driving under the influence of cannabis-related products.

• Timing and reporting for studies

  • Preliminary study results must be shared by January 15, 2024, with final results due by January 15, 2025. These reports can be combined into one.

• Data collection from health and justice systems

  • Collect and include data from the Department of Human Services, Department of Health, Direct Care and Treatment, Minnesota state courts, and hospitals on mental health and substance use services, emergency room visits, and commitments. Include information from first-episode psychosis programs and waiting lists.

• Annual market analysis

  • Each year, analyze the status of the regulated cannabis market, including:
  • Number of licenses issued and recommendations on how many licenses to issue
  • Market stability and whether supply meets demand
  • Impact of unregulated sales on the regulated market
  • Integrity of the medical cannabis patient registry
  • The office may seek input from consumers, market stakeholders, and potential applicants. The analysis must be completed by January 15, 2025, and then annually, with public meetings to gather input. It will also assess whether the office has issued enough licenses to meet demand and keep the market competitive.

• Annual report to the Legislature

  • Each year, starting January 15, 2024, the office must report on:
  • Status of the regulated cannabis, illicit cannabis, and hemp industries
  • Data on accidents, arrests, and convictions involving cannabis use
  • Changes in the potency of cannabis products in the regulated market
  • Progress in helping communities harmed by cannabis prohibition (e.g., reducing criminal convictions and expanding economic opportunities)
  • Diversity in the cannabis industry by race and geography
  • Proposed legislative or licensing process changes to improve the system
  • Information on adverse health effects from secondhand cannabis smoke
  • Recommendations for funding levels for education programs about health effects related to cannabis use (under 21, pregnancy/breastfeeding, and broad public education)
  • Training for home visiting programs, tribal programs, and child welfare workers about safe and unsafe cannabis use around infants and young children
  • Model education programs for middle and high school students about health effects of cannabis and other substances
  • Grants and training programs (CanTrain, CanNavigate, CanStartup, CanGrow, CanRenew) for community development and social equity
  • Training for peace officers on changes to cannabis laws, searches and seizures, drug recognition, and cultural considerations (including sage use)
  • Retirement/replacement of drug-detection canines
  • The office must consult with law enforcement groups, public safety groups, and local government and county organizations when deciding funding levels.

• Collaboration with other agencies

  • The office will work with multiple state agencies and organizations (e.g., Department of Employment and Economic Development, Department of Health, Department of Public Safety, Department of Education, Department of Human Services, Department of Children Youth and Families, Direct Care and Treatment, local governments, law enforcement, county social services) to support education, prevention, and public safety efforts.

• Changes to how data and programs are used

  • The bill ties reporting to a broader view of public health and safety, including mental health data, first-episode psychosis programs, and the impact of cannabis on vulnerable populations.

Significance and What It Changes in Law

• Adds mandatory, multi-year studies on market size, illicit activity, and impaired driving, plus comprehensive annual market analyses and annual legislative reports.
• Requires ongoing data collection from health and criminal justice systems to inform cannabis policy.
• Expands the scope of reporting to include health effects, secondhand smoke, and the impact on communities disproportionately affected by prohibition.
• Formalizes a broader set of education, training, and public safety initiatives funded through the cannabis program, including support for social equity programs (CanTrain, CanNavigate, CanStartup, CanGrow, CanRenew) and peace officer training.
• Strengthens collaboration between the Office of Cannabis Management and multiple state and local agencies to align licensing, enforcement, education, and public health activities.

Implementation Timeline (Key Dates)

• Preliminary study reports due: January 15, 2024
• Final study and market analysis reports due: January 15, 2025
• Annual market analyses and annual reports begin by January 15, 2025 (and then annually on January 15)

Stakeholder Impacts

• Cannabis industry: clearer data on demand, licensing levels, and market stability; relevance of licensing decisions.
• Public safety and law enforcement: enhanced training, drug recognition, and procedures for searches and seizures; better data on impaired driving.
• Health and social services: more information on mental health service use, first-episode psychosis, and secondhand smoke effects; stronger collaboration with DHS and Health.
• Communities harmed by prohibition: targeted programs and funding to expand opportunities and reduce criminal records.
• Education and youth programs: broader education efforts about health effects, and model programs in schools.

Implementation Considerations

• Requires balancing license issuance with market stability and consumer demand.
• Needs effective public engagement through meetings and stakeholder input.
• Involves coordination across many agencies and the financial resources to support education and enforcement initiatives.

Potential Questions to Watch

• How will the office determine the appropriate number of licenses to issue each year?
• What metrics will define “market stability” and whether supply meets demand?
• How will the state measure reductions in harm to communities disproportionately affected by prohibition?
• How will funding for CanTrain/CanNavigate/CanStartup/CanGrow/CanRenew be allocated and evaluated?

Relevant Terms - Office of Cannabis Management - regulated cannabis industry - hemp consumer industry - cannabis flower - cannabis products - illicit cannabis market - impaired driving - tetrahydrocannabinol (THC) - licenses - annual market analysis - public meetings - CanTrain - CanNavigate - CanStartup - CanGrow - CanRenew - first-episode psychosis programs - Department of Human Services - Department of Health - Direct Care and Treatment - Minnesota state courts - hospitals licensed under chapter 144 - secondhand smoke - racial and geographic diversity - licensing system - education programs - peace officer training - drug recognition experts - sage (cultural use) - drug detection canines - Tribal home visiting programs - CanRenew - collaboration with Department of Employment and Economic Development - collaboration with Department of Public Safety - collaboration with Department of Education - collaboration with Department of Children Youth and Families - county social service agencies - local government organizations