This bill, H.F. No. 1734, introduced by Representative West in the Minnesota House of Representatives, seeks to amend Minnesota Statutes 2024, section 342.14, subdivision 1, by modifying the requirements for cannabis license applications.

Key Provisions:

1. Application Requirements:

   • Applicants must submit identifying information, including name, address, and date of birth.
   • Ownership and control details must be disclosed.
   • Bankruptcy history of the applicant or key business members must be reported.
   • Address and property details of the business are required, but securing a physical premises before applying is not mandatory.
   • A description of the intended operational location, including space allocations for cultivation, wholesaling, and retailing.
   • A security plan (if applicable), but securing premises before applying is not required.

2. Business and Operational Information:

   • Proof of trade name registration.
   • A business plan, including anticipated growth, recordkeeping methods, experience, and environmental impact plans.
   • Standard operational procedures for quality assurance, inventory control, and financial compliance.
   • Proof of a labor peace agreement with a bona fide labor organization.
   • Information on training and education for employees.
   • Disclosure of any past legal or regulatory violations by the applicant or key business figures.
   • Certification of compliance with state cannabis laws.
   • Designation of a business representative to communicate with state regulators.
   • Agreement to provide additional requested information.
   • Consent for background checks for relevant individuals.

3. Financial and Ownership Disclosures:

   • Required disclosure of ownership structure, including names and positions of all key individuals with control over the business.
   • Statement on current or previous ownership of cannabis businesses in Minnesota or elsewhere.
   • If the applicant is a corporation, submission of foundational legal documents such as articles of incorporation and bylaws.
   • Disclosure of financial backers, including promissory notes, security agreements, and funding sources.
   • Details on operational and investment accounts, loans, and financial obligations related to the business.

4. Social Equity Considerations:

   • Proof of social equity status (if applicable).
   • Optional submission of additional training or compliance policies.

5. Ongoing Requirements and Exceptions:

   • Commitments made in the application, such as maintaining a labor peace agreement, remain legally binding as conditions for maintaining the license.
   • Corporate or association applications must be signed by at least two officers or managing agents.
   • Small cooperative members (owning less than 5%) may be exempted from certain disclosure requirements.

Summary:

This bill updates Minnesota's cannabis licensing process by expanding application requirements, emphasizing financial transparency, reinforcing workforce protections, and ensuring long-term compliance. Additionally, it provides exceptions for small cooperative investors and social equity applicants.