Minnesota Cannabis Businesses Hope to Cultivate Home Growing

August 01, 2023: Minnesota’s cannabis industry is looking to allow home cultivation as a significant step toward marijuana legalization. Here’s a breakdown of what it means for the state:

1. The Comprehensive Plan:

Minnesota’s legislature is examining a 243-page bill to legalize marijuana for adults aged 21 and older. The proposal combines two significant aspects: decriminalizing marijuana possession and usage and expunging records of individuals previously charged with minor marijuana offenses.

2. Home Cultivation and Availability:

If the bill becomes law, individuals can grow marijuana at home for personal use. The legislation permits up to eight plants per residence, with only four allowed to be mature, flowering plants at a time. To ensure safety, the cultivation must occur in a locked space inaccessible to anyone under 21. However, selling marijuana from home cultivation is not allowed without proper licensing.

The availability of legal marijuana might take some time to be fully established. Growing marijuana from seed to sale can take around nine months or longer. Additionally, retailers must clear licensing hurdles before making the product widely accessible. As a result, legal sales might not begin until sometime in 2025.

3. Limitations on Usage:

The bill outlines specific limitations to ensure responsible consumption:

Marijuana will be allowed on private property, private residences, or licensed venues for permitted events, but not in moving vehicles.

It will be forbidden on school grounds, buses, correctional facilities, and while operating heavy machinery.

Local governments cannot prohibit the use or sale of cannabis products. Still, they can regulate the time, place, and manner of consumption, including keeping marijuana-based businesses far from specific locations such as schools and churches.

4. Safeguards for Minors:

To discourage marijuana use among minors, the bill imposes several safeguards:

Cannabis and hemp-derived products must not resemble lollipops, ice cream, or child-oriented products.

Packaging cannot bear the likeness or characteristics of fictional characters, animals, or fruits.

Advertising targeting audiences under 21 is prohibited.

No one under 21 can work in a cannabis business, and strict age verification processes will be required for purchases.

5. Taxation and Regulation:

If the bill becomes law, legal marijuana sales would be subject to an 8% point-of-purchase gross receipts tax on top of the standard sales tax. The revenue generated from this tax is intended to cover the regulatory costs and support substance abuse prevention and treatment programs.

Actionable Takeaways:

Stay Informed: Keep an eye on the progress of the marijuana legalization bill in Minnesota to understand its potential impact on home cultivation and the cannabis market.

Exercise Caution and Patience: If the bill passes, individuals interested in home cultivation should follow all regulations and guidelines to ensure compliance with the law.

Explore Business Opportunities: As the cannabis industry grows, consider exploring ancillary business opportunities in the cannabis market, such as insurance services, consulting, legal support, and other professional services.