Senate Commerce and Consumer Protection Committee on 4/30/2024

Bills

Committee Members

Sen. Matt Klein

Senate, 53, DFL, sen.matt.klein@senate.mn, 651-296-4370

(Heard as: kline klein Klein wick linn Benjamin Franklin kline. )

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Sen. Judy Seeberger

Senate, 41, DFL, sen.judy.seeberger@senate.mn, 651-297-8060

(Heard as: seaburger Weber )

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Sen. Gary Dahms

Senate, 15, R, sen.gary.dahms@senate.mn, 651-296-8138

(Heard as: dahms Dames )

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Sen. Zach Duckworth

Senate, 57, R, sen.zach.duckworth@senate.mn, 651-296-7633

(Heard as: duckworth. Duckworth )

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Sen. Nick Frentz

Senate, 18, DFL, sen.nick.frentz@senate.mn, 651-296-6153

Sen. Jeff Howe

Senate, 13, R, sen.jeff.howe@senate.mn, 651-296-2084

(Heard as: howell howe. )

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Sen. Ron Latz

Senate, 46, DFL, sen.ron.latz@senate.mn, 651-297-8065

(Heard as: Latz latz )

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Sen. Jordan Rasmusson

Senate, 9, R, sen.jordan.rasmusson@senate.mn, 651-296-4875

(Heard as: Rasmussen raspison. rasmussen.

rasmussen )

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Sen. Melissa Wiklund

Senate, 51, DFL, sen.melissa.wiklund@senate.mn, 651-297-8061

(Heard as: wiklund Wicklund wicklin )

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Sen. Tou Xiong

Senate, 44, DFL, sen.tou.xiong@senate.mn, 651-296-6820

Noteworthy Content:

00:32:42,160 - it strengthens our social equity goals

00:41:42,820 - We have been able to provide a wide range of cannabis products to our potential equity applicants.

00:43:14,270 - we're lucky 2026 and when it does most of our small social equity owned businesses will likely have run out of money and time to be competitive and successful.

00:59:34,380 - allow social successful social equity licensees to begin cultivating as soon as

01:02:43,660 - it would affect the social equity applicants

01:03:48,540 - think there's possible to get there when we look at the social equity we think that the specific licenses

01:04:05,200 - for the social equity applicant and when you think about the broad branch of

01:04:09,660 - people who qualify on the social equity having that lottery specifically for

01:04:35,600 - social equity applicants could come to the market with it from a position of strength and not

01:08:38,880 - Our intentions were good but the truth of the matter was that inequities were layered and deep.

01:12:08,580 - I am here today in support of the immediate issuance of license applications for both social equity applicants and commercial companies that are ready to go and begin cultivation.

01:31:59,740 - I' ll end with a path to early licensure for cultivators of all sizes both social equity and the industry.

01:34:31,580 - The o c m is a key part of the o c m plan both social equity and commercial businesses with social equity inclusive programs

01:38:41,580 - service straw applicants on social equity licenses.

01:38:53,000 - a quarter of the social equity licenses it issued were found to be fraudulent.

01:39:28,920 - evidence to support that claim and every social equity advocacy group locally and

01:39:55,600 - advocates when every social advocate equity advocate is screaming from the rooftops that it's terrible please stop is absurd.

01:41:13,460 - for all people with emerging legal cannabis industry for both social equity and commercial applicants to be successful the state must create a licensing system that is equitable and provides certainty and stability.

01:42:52,280 - see themselves in here they don't understand what social equity applicant

01:43:21,960 - it is essential that social equity commercial applicants work together in a

01:46:58,240 - the social equity aspect goes you know personally I think well-prepared social equity and small

01:48:22,140 - the critical importance of maintaining robust social equity provisions in the law.

01:48:26,640 - Social equity cannot be

01:48:33,280 - cannabis industry rollout that prioritizes fairness and equity prevent further harm and disparities

01:48:39,080 - for the same marginalized communities the law seeks to uplift.

01:49:15,160 - Management OCEA to safeguard the interests of social equity applicants.

01:49:23,740 - sale of a business to non-social equity applicants after a specified period of operation.

01:49:31,760 - optimize the equity lottery process in the final bill version.

01:49:49,920 - non-social equity applicants particularly at the cultivator level

01:49:53,240 - should reflect their support for the social equity ecosystem of business infrastructure.

01:50:02,820 - that could exacerbate the inequities among communities of color.

01:50:34,100 - opening this up to social equity applicants.

01:51:08,500 - We exist to ensure equity within not only the rollout of legalization but well after

01:52:04,300 - I support the creation of a distinct classification of social equity licenses of course.

01:52:09,540 - This designation is vital for preserving the integrity of social equity initiatives and

01:52:16,900 - opportunities for individuals from marginalized communities.

01:52:24,260 - that social equity remains a guiding principle actually a true north

01:52:34,640 - adjusting the ownership requirements for social equity applicants to 65%.

01:52:51,540 - significant hurdles for many social equity applicants.

01:53:10,280 - preventing further marginalization of black-brown and marginalized communities.

01:54:14,600 - strengthening social equity as the north star in this cannabis industry.

01:54:54,980 - areas across the state inspiring conversations across race and geography about access to cannabis

01:58:56,460 - also be responsible for social equity measures.

02:10:27,080 - social equity verification process by late June early July we would then after

02:10:32,540 - we verify those social equity applicant status that we would begin that process

02:11:38,620 - This language allows us to set expectations while protecting the equity value laid out in last year' s cannabis bill.

02:11:45,520 - The amendment also allows for a set aside of licenses for micro businesses mezzo businesses and retailers who are willing to serve the medical market which allows for o c m to regulate a social equity applications

02:12:49,220 - social equity component

02:15:50,180 - vending process and a lottery for social equity applicants

02:15:56,260 - lottery for general applicants and if you' re a social equity applicant who meets all

02:16:01,060 - of those things and you don' t get chosen in the social equity lottery you are automatically

02:20:27,520 - so 50% for social equity 50% for general licenses.

02:21:41,120 - party of interest the true controlling party is a social equity applicant we want to make sure they

02:32:02,660 - and the equity provisions that are inherent in the original law and doing so in a way that really sets

02:35:20,220 - if after issuing license preapprovals to social equity applicants

02:40:48,580 - social equity at the agency has to approve that.

02:47:24,360 - 342 which has been to ensure social equity in the process of setting up this industry.

02:49:11,560 - cultivators that they are getting their social equity applicants in applications

03:11:48,760 - the industry's concerns and to centering social equity I think it is a good start but I think you

03:12:06,440 - harm a lot of the social equity applicants including the ones that are ready to go now

03:13:22,080 - less likely that is to happen social equity applicants who at some point want to

03:20:51,720 - social equity applicants including mung farmers who are not contemplated in that language that was first discussed including

03:21:40,500 - going to be a part of our culture and I absolutely respect their right to do that

03:35:52,140 - social equity applicant that

03:39:33,400 - be able to qualify as a social equity applicant and so Mr.

03:42:13,380 - for social equity status and as a part of

03:44:53,600 - of a social equity applicant

03:45:24,120 - identified as a criterion for social equity applicants

03:59:24,060 - Municipalities in front of social equity applicants which goes against the core tenants of this bill that wanted to ensure that social equity applicants

04:00:37,220 - To give them an opportunity in between social equity applicants and the general applicants to get a license if there are licenses available

04:18:46,720 - No matter our race income age or zip code

04:50:46,020 - Health care affordability access and equity are vitally important to our members