1.1 A bill for an act
1.2 relating to commerce; modifying cannabis license application requirements;
1.3 amending Minnesota Statutes 2024, section 342.14, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2024, section 342.14, subdivision 1, is amended to read:
1.6 Subdivision 1.Application; contents.(a) The office shall establish procedures for the
1.7processing of cannabis licenses issued under this chapter. At a minimum, any application
1.8to obtain or renew a cannabis license shall include the following information, if applicable:
1.9 (1) the name, address, and date of birth of the applicant;
1.10 (2) the disclosure of ownership and control required under paragraph (b);
1.11 (3) the disclosure of whether the applicant or, if the applicant is a business, any officer,
1.12director, manager, and general partner of the business has ever filed for bankruptcy;
1.13 (4) the address and legal property description of the business, if applicable, except an
1.14applicant is not required to secure a physical premises for the business at the time of
1.15application;
1.16 (5) a general description of the location or locations that the applicant plans to operate,
1.17including the planned square feet of space for cultivation, wholesaling, and retailing, as
1.18applicable;
1.19 (6) a copy of the security plan, including security monitoring, security equipment, and
1.20facility maps if applicable, except an applicant is not required to secure a physical premises
1.21for the business at the time of application;
1Section 1.
REVISOR EB/EE 25-0028412/06/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1734
NINETY-FOURTH SESSION 2.1 (7) proof of trade name registration;
2.2 (8) a copy of the applicant's business plan showing the expected size of the business;
2.3anticipated growth; the methods of record keeping; the knowledge and experience of the
2.4applicant and any officer, director, manager, and general partner of the business; the
2.5environmental plan; and other relevant financial and operational components;
2.6 (9) standard operating procedures for:
2.7 (i) quality assurance;
2.8 (ii) inventory control, storage, and diversion prevention; and
2.9 (iii) accounting and tax compliance;
2.10 (10) an attestation signed by a bona fide labor organization stating that the applicant has
2.11entered into a labor peace agreement;
2.12 (11) a description of any training and education that the applicant will provide to
2.13employees of the business;
2.14 (12) a disclosure of any violation of a license agreement or a federal, state, or local law
2.15or regulation committed by the applicant or any true party of interest in the applicant's
2.16business that is relevant to business and working conditions;
2.17 (13) certification that the applicant will comply with the requirements of this chapter;
2.18 (14) identification of one or more controlling persons or managerial employees as agents
2.19who shall be responsible for dealing with the office on all matters;
2.20 (15) a statement that the applicant agrees to respond to the office's supplemental requests
2.21for information; and
2.22 (16) a release of information for the applicant and every true party of interest in the
2.23applicant's business license for the office to perform the background checks required under
2.24section 342.15.;
2.25 (17) proof that the applicant is a social equity applicant; and
2.26 (18) an attestation that the applicant's business policies governing business operations
2.27comply with this chapter.
2.28 (b) An applicant must file and update as necessary a disclosure of ownership and control
2.29identifying any true party of interest as defined in section 342.185, subdivision 1, paragraph
2.30(g). The office shall establish the contents of the disclosure. Except as provided in paragraph
2.31(f) (d), the disclosure shall, at a minimum, include the following:
2Section 1.
REVISOR EB/EE 25-0028412/06/24 3.1 (1) the management structure, ownership, and control of the applicant or license holder,
3.2including the name of each cooperative member, officer, director, manager, general partner,
3.3or business entity; the office or position held by each person; each person's percentage
3.4ownership interest, if any; and, if the business has a parent company, the name of each
3.5owner, board member, and officer of the parent company and the owner's, board member's,
3.6or officer's percentage ownership interest in the parent company and the cannabis business;
3.7 (2) a statement from the applicant and, if the applicant is a business, from every officer,
3.8director, manager, and general partner of the business, indicating whether that person has
3.9previously held, or currently holds, an ownership interest in a cannabis business in Minnesota,
3.10any other state or territory of the United States, or any other country;
3.11 (3) if the applicant is a corporation, copies of the applicant's articles of incorporation
3.12and bylaws and any amendments to the applicant's articles of incorporation or bylaws;
3.13 (4) copies of any partnership agreement, operating agreement, or shareholder agreement;
3.14 (5) copies of any promissory notes, security instruments, or other similar agreements;
3.15 (6) an explanation detailing the funding sources used to finance the business;
3.16 (7) a list of operating and investment accounts for the business, including any applicable
3.17financial institution and account number; and
3.18 (8) a list of each outstanding loan and financial obligation obtained for use in the business,
3.19including the loan amount, loan terms, and name and address of the creditor.
3.20 (c) An application may include:
3.21 (1) proof that the applicant is a social equity applicant;
3.22 (2) a description of the training and education that will be provided to any employee;
3.23or
3.24 (3) a copy of business policies governing operations to ensure compliance with this
3.25chapter.
3.26 (d) (c) Commitments made by an applicant in its application, including but not limited
3.27to the maintenance of a labor peace agreement, shall be an ongoing material condition of
3.28maintaining and renewing the license.
3.29 (e) An application on behalf of a corporation or association shall be signed by at least
3.30two officers or managing agents of that entity.
3Section 1.
REVISOR EB/EE 25-0028412/06/24 4.1 (f) (d) The office may establish exceptions to the disclosures required under paragraph
4.2(b) for members of a cooperative who hold less than a five percent ownership interest in
4.3the cooperative.
4Section 1.
REVISOR EB/EE 25-0028412/06/24