Recreational Cannabis Legalization Included In MN Governor Walz's 2023 Budget Proposal

Minnesota Gov. Tim Walz recently released a proposed budget for the 2023 session that includes legalizing recreational cannabis in the state, as reported first by CBS Minnesota.

"Prohibition doesn’t work. By legalizing adult-use cannabis, Minnesota can benefit economically, educate the public, and keep people and communities safe through regulation," reads the Gov. budget proposal.

What Does The Proposal Budget Say? 

The “One Minnesota Budget” proposal creates a new agency, the Cannabis Management Office, which would be in charge of the implementation of a new regulatory framework to legalize marijuana and hemp-derived products along with the medical cannabis program.

“The office will be headed by a director appointed by the Governor and receive advice from a Cannabis Advisory Council with representatives from experts, local governments, the cannabis industry, and relevant state agencies,” reads the proposal.

The main duties of the office will include:

• to develop, maintain, and enforce an organized system of regulation for the lawful cannabis industry
• to establish programming, services, and notification to protect, maintain, and improve the health of citizens
• to prevent unauthorized access to cannabis by individuals under 21 years of age
• to establish and regularly update standards for product testing, packaging, and labeling
• to promote economic growth with an emphasis on growth in areas that experienced a disproportionate, negative impact of cannabis prohibition
• to issue and renew licenses
• to impose and collect civil and administrative penalties
• to authorize research and studies on cannabis, cannabis products, and the cannabis industry, per the proposal.

The proposal also requires the Department of Health to engage in research and data collection activities to measure the prevalence of marijuana use and cannabis-related products in the state by persons younger than 21 years of age and persons 21 years of age or older.

In addition, Gov.Walz and Lieutenant Governor Flanagan recommend funding for the safe and responsible legalization of recreational cannabis in the state, such as grants to help people entering the legal marijuana market, additional resources for marijuana treatment and prevention of substance use disorder, funding to launch statewide educational campaigns on adverse health effects associated with cannabis use, expungement of non-violent cannabis-related offenses, and adult cannabis excise taxes.
Related to taxes, the recreational use of cannabis "will be subject to a new 15% gross receipts tax and state sales tax with retail sales beginning January 1, 2025. A new 15% gross receipts tax would also be imposed on the retail sale of edible cannabinoid products with retail sales beginning October 1, 2023."

Equity And Inclusion

Pursuant to the proposal, which aims to address the inequities created by the current cannabis prohibition system, beginning with the elimination of non-violent marijuana-related offenses, a Division of Social Equity at the Office of Cannabis Management will work to further promote consideration of equity and inclusion in the development and implementation of cannabis regulatory systems.

The Benzinga Cannabis Capital Conference Is Back!

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A start, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Courtesy Of Tom Conway On Unsplash