A bipartisan bill introduced today in the Minnesota Senate would expand opportunities for cannabis businesses to be owned through employee stock ownership plans (ESOPs).
The measure, Senate File 3520, was filed by Senator Rob Kupec (D) and Senator Mark Koran (R) and has been referred to the Senate Commerce and Consumer Protection Committee. The proposal would amend several provisions of Minnesota’s cannabis statute to explicitly allow ESOPs to serve as true parties of interest in cannabis business licenses—a designation that determines who holds ownership and control.
Under current law, restrictions are in place to limit the number of licenses and license applications a single individual or business entity can control. SF 3520 would make clear that these restrictions do not apply to employee stock ownership plans, nor to their trustees or affiliated employees who operate under such plans. This would open the door for cannabis businesses to be structured with shared employee ownership while maintaining compliance with the state’s regulatory framework.
The bill also refines definitions related to financial interests in cannabis companies, clarifying that ESOPs and their trustees are not considered owners for the purposes of limiting license eligibility. This could help facilitate new business models in Minnesota’s emerging legal cannabis market, particularly among small and midsize operators seeking to build equity among workers.
Supporters of the legislation say the change would foster inclusive economic participation and allow employees to have a vested interest in the success of cannabis businesses.
