ST. PAUL, Minn. – The Minnesota House of Representatives approved a bill on Thursday aimed at expediting the establishment of a legal cannabis market in the state. Although cannabis was legalized in 2023 for personal possession, there are currently no officially licensed businesses operating. Author of the bill, Rep. Zach Stephenson (DFL-Coon Rapids), emphasized the need to swiftly transition from an illicit market to a regulated one. He acknowledged the need for updates to last year’s legalization law based on new insights. Stephenson compared the evolution of cannabis laws to those of alcohol, stating, “It had been 100 years since we had ended the prohibition on alcohol, and we were still making changes to our liquor laws, so it’s not surprising that we would be back a year later with some changes and clarifications on the landmark cannabis legislation that we passed.”
A key point of debate during the bill’s discussion was the introduction of a “lottery system” for licensing. The previous law prioritized applicants from communities historically disadvantaged by cannabis prohibition. The new bill retains social equity provisions but introduces a pre-approval process for these applicants. Additionally, the bill replaces the merit-based licensing system with two lottery-based systems: one for social equity applicants and another for all other applicants. Republicans proposed amendments to allow earlier cultivation to address concerns about meeting demand at the market’s start. Stephenson argued against changing the rules, citing potential confusion and distractions for the Office of Cannabis Management.
The bill also includes a study on the impact of legalization on youth drug use and advances the pre-approval deadline to expedite licensing. Despite attempts to introduce amendments banning flavored edibles and increasing penalties for underage use, these proposals were not included in the final bill. The bill now moves to the Senate for consideration.