1.1 A bill for an act
1.2 relating to commerce; increasing the plant canopy that a medical cannabis
1.3 combination business may use to cultivate cannabis that will be sold as medical
1.4 cannabis flower or medical cannabinoid products; amending Minnesota Statutes
1.5 2024, section 342.515, subdivisions 1, 2, 5, 6; repealing Minnesota Statutes 2024,
1.6 section 342.515, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 342.515, subdivision 1, is amended to read:
1.9 Subdivision 1.Authorized actions.(a) A person, cooperative, or business holding a
1.10medical cannabis combination business license is prohibited from owning or operating any
1.11other cannabis business or hemp business or holding an active registration agreement under
1.12section 152.25, subdivision 1.
1.13 (b) A person or business may hold only one medical cannabis combination business
1.14license.
1.15 (c) A medical cannabis combination business license entitles the license holder to perform
1.16any or all of the following within the limits established by this section:
1.17 (1) grow cannabis plants from seed or immature plant to mature plant and harvest
1.18adult-use cannabis flower and medical cannabis flower from a mature plant;
1.19 (2) make cannabis concentrate;
1.20 (3) make hemp concentrate, including hemp concentrate with a delta-9
1.21tetrahydrocannabinol concentration of more than 0.3 percent as measured by weight;
1.22 (4) manufacture artificially derived cannabinoids;
1Section 1.
REVISOR BD/AD 25-0128012/13/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2426
NINETY-FOURTH SESSION
Authored by West, Huot and Allen03/17/2025
The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (5) manufacture medical cannabinoid products;
2.2 (6) manufacture adult-use cannabis products, lower-potency hemp edibles, and
2.3hemp-derived consumer products for public consumption;
2.4 (7) purchase immature cannabis plants and seedlings and cannabis flower from a cannabis
2.5microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a cannabis wholesaler,
2.6or another medical cannabis combination business;
2.7 (8) purchase hemp plant parts and propagules from an industrial hemp grower licensed
2.8under chapter 18K;
2.9 (9) purchase cannabis concentrate, hemp concentrate, and artificially derived cannabinoids
2.10from a cannabis microbusiness, a cannabis mezzobusiness, a cannabis manufacturer, a
2.11cannabis wholesaler, or another medical cannabis combination business;
2.12 (10) purchase hemp concentrate from an industrial hemp processor licensed under chapter
2.1318K;
2.14 (11) manufacture, package, and label medical cannabis flower and medical cannabinoid
2.15products for sale to cannabis businesses with a medical cannabis processor endorsement,
2.16cannabis businesses with a medical cannabis retail endorsement, other medical cannabis
2.17combination businesses, and persons in the registry program;
2.18 (12) transport and deliver medical cannabis and medical cannabinoid products to medical
2.19cannabis processors, medical cannabis retailers, other medical cannabis combination
2.20businesses, patients enrolled in the registry program, registered designated caregivers, and
2.21parents, legal guardians, and spouses of an enrolled patient;
2.22 (13) manufacture, package, and label adult-use cannabis flower, adult-use cannabis
2.23products, lower-potency hemp edibles, and hemp-derived consumer products for sale to
2.24customers and other cannabis businesses;
2.25 (13) (14) sell medical cannabis flower and medical cannabinoid products to cannabis
2.26processors, medical cannabis retailers, other medical cannabis combination businesses, and
2.27patients enrolled in the registry program, registered designated caregivers, and parents, legal
2.28guardians, and spouses of an enrolled patient;
2.29 (14) (15) sell immature cannabis plants and seedlings, adult-use cannabis flower, adult-use
2.30cannabis products, lower-potency hemp edibles, hemp-derived consumer products, and
2.31other products authorized by law to other cannabis businesses and to customers; and
2Section 1.
REVISOR BD/AD 25-0128012/13/24 3.1 (16) transport and deliver immature cannabis plants and seedlings, adult-use cannabis
3.2flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived consumer
3.3products, and other products authorized by law to other cannabis businesses and to customers;
3.4and
3.5 (15) (17) perform other actions approved by the office.
3.6 (d) A medical cannabis combination business is not required to obtain a medical cannabis
3.7endorsement to perform any actions authorized under this section.
3.8 EFFECTIVE DATE.This section is effective the day following final enactment.
3.9 Sec. 2. Minnesota Statutes 2024, section 342.515, subdivision 2, is amended to read:
3.10 Subd. 2.Cultivation; size limitations.(a) Subject to paragraph (b), a medical cannabis
3.11combination business may cultivate cannabis to be sold as medical cannabis flower or used
3.12in medical cannabinoid products in an area of up to 60,000 90,000 square feet of plant
3.13canopy subject to the limits on adult-use cannabis cultivation in paragraph (c). A medical
3.14cannabis combination business may cultivate cannabis and manufacture cannabis in more
3.15than one location, except the aggregate total of plant canopy in all locations must count
3.16toward the business' canopy limit.
3.17 (b) A medical cannabis combination business may cultivate cannabis to be sold as
3.18adult-use cannabis flower or used in adult-use cannabis products in an area authorized by
3.19the office as described in paragraph (c). Notwithstanding paragraph (a), a medical cannabis
3.20combination business may request an increase in the area of plant canopy in which a medical
3.21cannabis combination business is authorized to cultivate cannabis. The office shall increase
3.22the area of plant canopy upon a showing by the medical cannabis business of:
3.23 (1) the legitimate market need for additional cannabis production;
3.24 (2) the medical cannabis combination business's ability to meet all requirements and
3.25commitments contained in the business's license application;
3.26 (3) the medical cannabis combination business's ability to cultivate additional cannabis
3.27at the square footage requested; and
3.28 (4) the medical cannabis combination business's history of compliance with subdivision
3.296.
3.30 (c) The office shall authorize a medical cannabis combination business to cultivate
3.31cannabis for sale in the adult-use market in an area of plant canopy that is equal to one-half
3.32of the area the business used to cultivate cannabis sold in the medical market in the preceding
3Sec. 2.
REVISOR BD/AD 25-0128012/13/24 4.1year. The office shall establish an annual verification and authorization procedure. The
4.2office may increase the area of plant canopy in which a medical cannabis combination
4.3business is authorized to cultivate cannabis for sale in the adult-use market between
4.4authorization periods if the business demonstrates a significant increase in the sale of medical
4.5cannabis and medical cannabis products.
4.6 EFFECTIVE DATE.This section is effective the day following final enactment.
4.7 Sec. 3. Minnesota Statutes 2024, section 342.515, subdivision 5, is amended to read:
4.8 Subd. 5.Failure to participate; suspension or revocation of license.(a) A medical
4.9cannabis combination business must provide a reliable, ongoing supply of medical cannabis
4.10to the registry program through cultivation by the manufacturer or through the purchase of
4.11cannabis flower and medical cannabinoid products.
4.12 (b) The office may suspend or revoke a medical cannabis combination business license
4.13if the office reasonably determines that the business is no longer actively participating in
4.14the medical cannabis market. The office may, by rule, establish minimum requirements
4.15related to cannabis cultivation, manufacturing of medical cannabinoid products, retail sales
4.16of medical cannabis flower and medical cannabinoid products, and other relevant criteria
4.17to demonstrate active participation in the medical cannabis market.
4.18 EFFECTIVE DATE.This section is effective the day following final enactment.
4.19 Sec. 4. Minnesota Statutes 2024, section 342.515, subdivision 6, is amended to read:
4.20 Subd. 6.Operations.A medical cannabis combination business must comply with the
4.21relevant requirements of sections 342.25, 342.26, 342.27, 342.35, 342.41, 342.42, and
4.22342.51, subdivisions 2 to 5.
4.23 EFFECTIVE DATE.This section is effective the day following final enactment.
4.24 Sec. 5. REPEALER.
4.25 Minnesota Statutes 2024, section 342.515, subdivision 3, is repealed.
4.26 EFFECTIVE DATE.This section is effective the day following final enactment.
4Sec. 5.
REVISOR BD/AD 25-0128012/13/24 342.515 MEDICAL CANNABIS COMBINATION BUSINESSES.
Subd. 3.Manufacturing; size limitations.The office may establish limits on cannabis
manufacturing that are consistent with the area of plant canopy a business is authorized to cultivate.
1R
APPENDIX
Repealed Minnesota Statutes: 25-01280