Gov. Tim Walz
Minnesota Initial Legalized Marijuana Facts
Minnesota Initial Legalized Marijuana Facts
The 23rd state in the U.S. to put an end to cannabis prohibition is Minnesota, as Governor Tim Walz signed a bill into law legalizing marijuana. The signing of HF 100 took place on Tuesday after months of committee hearings and floor votes. Governor Walz emphasized the failure of prohibition and the need to rectify the harm caused by criminalizing individuals, stating that the expungement process for related records will begin. While it will take some time to establish the necessary infrastructure, Walz assured Minnesotans that the legislation was thoughtfully crafted, incorporating lessons learned from other states.
Effective August 1, adults aged 21 and above will be allowed to possess up to two ounces of cannabis in public and cultivate up to eight plants at home, with four of them allowed to be mature. Additionally, individuals can possess up to two pounds of marijuana in their residences. Gifting up to two ounces of cannabis without payment between adults will also be permitted.
Regulated commercial sales are expected to begin 12 to 18 months after the law takes effect. Existing medical cannabis businesses will have the opportunity to acquire new combination licenses that allow participation in the adult-use market starting from March 1, 2025.
The legislation includes provisions for automatic expungement of certain marijuana-related misdemeanors. The Bureau of Criminal Apprehension will identify eligible individuals, and the courts will process the expungements. A newly established Cannabis Expungement Board will consider relief for felony cannabis offenses, including potential sentence reductions for those currently incarcerated.
The bill allows municipalities and counties to operate government dispensaries and approve on-site consumption permits for events. Cannabis delivery services will also be permitted. Local governments cannot outright prohibit marijuana businesses, but they can impose reasonable regulations on operating hours, location, and the number of licenses issued based on population size.
A gross receipts tax of 10 percent will be applied to cannabis sales, in addition to the state's standard 6.875 percent sales tax. Eighty percent of the revenue will go into the state's general fund, with some funds allocated for grants to support cannabis businesses, substance misuse treatment, and other programs. The remaining 20 percent will be distributed to local governments.
To oversee the market and issue cannabis business licenses, an Office of Cannabis Management will be established, including a Division of Social Equity. The legislation prioritizes social equity by giving higher scores to equity applicants during the licensing process. Social equity applicants include those residing in low-income neighborhoods, veterans who lost honorable status due to a cannabis-related offense, and individuals with cannabis convictions or immediate family members with such convictions.
The bill successfully navigated various committees in both the House and Senate before being passed. It underwent scrutiny from multiple committees, including those responsible for taxes, transportation, public safety, health, education, agriculture, labor, environment, and commerce.
Minnesota Democrats credit their majority position in both chambers, secured in the previous election, for the successful passage of cannabis reform. Recent polls indicate strong support among Minnesota residents for creating a regulated marijuana market.
In addition to marijuana legalization, Minnesota lawmakers also passed legislation to legalize drug paraphernalia possession, syringe services, residue, and testing. Furthermore, an omnibus health bill containing provisions for a psychedelics task force was passed by the House to prepare the state for possible psychedelic legalization.