Commerce committee defeats omnibus cannabis policy bill – for now

A disagreement over whether an agreement had been reached on a provision in a 12-bill package led to the defeat of the omnibus cannabis policy bill Wednesday.

Different bills within the package are moving through committees this week as negotiations between Rep. Jessica Hanson (DFL-Burnsville) and Rep. Nolan West (R-Blaine) continue, with the intention of creating a final version when the bill is in possession of the House Ways and Means Committee.

As lawmakers continue to update the state’s nascent laws regulating cannabis, the package would modify state laws on cannabis and hemp labeling, licensing, transportation and local regulations.

That is, if the package can be created.

Rep. Jessica Hanson

Six bills were compiled into a delete-all amendment for HF4203 before it was defeated along party lines by the House Commerce Finance and Policy Committee Wednesday. Two bills were heard independently in other committees Wednesday. And the plan is for four other bills to be amended into the omnibus bill in the Ways and Means Committee.

And a motion to reconsider the defeated amendment is on Thursday’s commerce committee agenda.

The sticking point comes from HF4397 that would combine the medical and adult-use cannabis supply chains and replace the medical cannabis combination license with a cannabis macrobusiness license. The tentative omnibus bill agreement, written by the DFL, stated to include the bill in the delete-all amendment and then amend it in ways and means to include an opt-out option.

The opt-out option is part of discussions because “the rules keep changing” for the two medical cannabis combination businesses in the state, West said. It seems like there were some “crossed wires” on what they agreed upon, he said, asking Hanson to agree to later amend the bill to match their agreement.

Hanson replied that she had agreed to the language and it was a matter of an amendment not being ready for the meeting, but it should be for the House Ways and Means Committee.

Rep. Nolan West

West responded that his question was for “a commitment to assist in having our agreement reflect this document, which I did not hear.” When pressed by West and Committee Co-Chair Rep. Tim O'Driscoll (R-Sartell) on whether she’d support an amendment, Hanson said she can’t speak on behalf of ways and means committee members on their potential approval of an amendment.

The tentative omnibus cannabis agreement includes two notable law changes: one to update the Office of Cannabis Management’s enforcement authority and one to change local governments’ regulation of cannabis businesses.

Language from HF4398 is included to strengthen the Office of Cannabis Management’s enforcement abilities, including creating civil penalties if a person has an intent to sell cannabis flower or cannabinoid product at certain amounts and deciding how long a business owner is disqualified from holding a license after a license is revoked.

Currently moving independently through committees, HF4202 would address problems cannabis business owners are facing with local governments and requests from local governments for more clarity in the law.

The bill would remove a local government’s ability to issue an interim ordinance restricting the time, place or manner of the business’ operation and require local governments to submit evidence of noncompliance if they’re informing the Office of Cannabis Management to not issue a license. It would also clarify the number of required cannabis business registrations per 12,500 residents in a city or county.

Omnibus cannabis package

The tentative omnibus cannabis agreement reached between the two caucuses includes:

• HF4688 (West) to allow a cannabis business to transport cannabis products and hemp-derived consumer products to a facility for testing purposes, to be added in Ways and Means with a two-year sunset;
• HF4570 (West) to increase the cannabis microbusiness outdoor cultivation limit, to be added in Ways and Means;
• A yet-to-be-numbered West bill regarding combined cannabinoids, to be added in Ways and Means with language matching the Office of Cannabis Management’s language;
• HF4412 (Allen) to modify medical cannabis endorsement requirements, included in the omnibus delete-all amendment;
• HF4203 (Hanson) to modify the studies and market analysis the Office of Cannabis Management is required to submit to the Legislature, included in the omnibus delete-all amendment;
• HF3818 (West) to exclude municipal cannabis stores from the definition of true party of interest, to be amended in Ways and Means to limit it to two managed municipal businesses;
• HF4201 (Hanson) to modify label content requirements for cannabinoid products and lower-potency hemp edibles, included in the omnibus delete-all amendment and to be amended in Ways and Means to include QR codes for cannabis packages;
• HF4397 (Hanson), included in the omnibus delete-all amendment and to be amended in Ways and Means with Office of Cannabis Management edits and an opt-out option;
• HF4398 (Hanson), included in the omnibus delete-all amendment and to be amended in Ways and Means striking the disposable vape ban;
• HF4199 (Hanson) to make technical changes to cannabis business licensing provisions, included in the omnibus delete-all amendment and to be amended in Ways and Means striking the hemp-derived cannabis product language;
• HF4202 (Hanson), approved by the House Elections Finance and Government Operations Committee Wednesday and sent to the commerce committee; and
• HF4200 (Hanson) to modify data reported to the Office of Cannabis Management through the statewide monitoring system as not public, approved by the House Judiciary Finance and Civil Law Committee Wednesday and sent to Ways and Means.