The Minnesota Legislature gave final approval today to an omnibus marijuana bill that would make a wide range of changes to the state’s legal marijuana system, sending the proposal to the governor.

Senate File 4401, sponsored by State Senator David Dibble (D), State Senator Lindsey Port (D) and State Representative Jessica Hanson (D), was passed by the House today by a vote of 92 to 42. The Senate, also today, concurred with the House changes and repassed the measure 35 to 32, clearing the way for it to be sent to Governor Tim Walz.

The bill would modify rules for marijuana businesses, hemp businesses, event organizers, licensing endorsements, local government authority, product labeling and data reporting to the Office of Cannabis Management.

Among its key provisions, the measure would create a cannabis macrobusiness license, allowing certain operators to combine multiple marijuana-related activities under one license, including cultivation, manufacturing, retail sales and other approved endorsements. The bill would also restructure the state’s endorsement system for cultivation, manufacturing, retail operations, wholesale, transport, medical marijuana activity and edible cannabinoid product handling, giving the Office of Cannabis Management a more detailed framework for approving specific business activities.

SF 4401 would allow local governments to limit the number of marijuana retailers, but not below one retailer for every 12,500 residents. Local governments could allow more retailers, and counties could develop retail registration systems with cities and towns that consent to county-level registration authority.

The bill would also require local governments to conduct at least one unannounced age-verification compliance check each year for every marijuana or hemp business with a retail registration.

Another major portion of the bill focuses on licensing eligibility. The Office of Cannabis Management would be barred from issuing a marijuana business license to a person or business convicted of illegally selling marijuana after August 1, 2023, unless five years have passed. Similar restrictions would apply to certain violations of state marijuana law, with an exception for good-faith mistakes that did not involve gross negligence, illegal marijuana sales or harm to the public.

The bill would also expand the Office of Cannabis Management’s enforcement authority over unlicensed commercial activity. Under the measure, regulators could inspect commercial premises where marijuana, hemp-derived consumer products, artificially derived cannabinoids or lower-potency hemp edibles are being cultivated, manufactured, processed or sold without proper authorization. If illegal products are found, the office could seize, detain or embargo them, assess civil penalties and seek a court order allowing the products to be destroyed. That would fit well after the licensing eligibility paragraph or after the paragraph on local compliance checks. The bill specifically authorizes inspections of unlicensed commercial premises and allows seizure, detention, embargoes and civil penalties for products suspected of being possessed or distributed in violation of state law.

The measure would also classify data reported to the Office of Cannabis Management through the statewide monitoring system as nonpublic, while revising which application and license-holder information is publicly available.

SF 4401 would update labeling and consumer information requirements for marijuana products, lower-potency hemp edibles and hemp-derived consumer products. It would also define “ratio hemp-infused cannabis product,” while updating rules for edible products and beverages, including THC serving and package limits.

The bill also includes a psilocybin-related provision requiring the Office of Cannabis Management to regularly review federal funding opportunities that could support a state psilocybin therapeutic use program for adults 21 and older with qualifying medical conditions.

The House amendment to the bill, which the Senate concurred with, made several notable changes to the Senate-approved version. It revised the proposed cannabis macrobusiness license, including changes to cultivation limits, while also adjusting ownership rules for social equity applicants and license holders. The amendment would allow broader participation in municipal marijuana store operations, revise when certain marijuana and hemp businesses can share the same premises, and remove a restriction that would have blocked lower-potency hemp edible license holders from also holding marijuana business licenses.

Minnesota legalized recreational marijuana in 2023, allowing adults 21 and older to possess up to two pounds of marijuana at home and up to two ounces in public. State-licensed recreational marijuana stores have not yet fully launched, with the state continuing to build out its licensing and regulatory system.