Cannabis tax, free school meals, boat registration fee hike among new laws now in effect

Minnesotans who purchase cannabis products will now have to pay a 10% tax. All students will be able to get free school meals. And boat owners will have to pay more to register their watercraft.

Those changes and many others approved by the DFL-controlled Minnesota Legislature this year are set to take effect on Saturday.

Here's a look at several key changes, which also include increased financial aid for college students, funding to expand high-speed internet access and new restrictions on the use of no-knock search warrants.

The 10% tax, which is part of Minnesota's new marijuana legalization law, will apply to all cannabis products, whether they're derived from hemp or marijuana once it's legal.

Legal marijuana products won't be hitting shelves until at least a year from now as the state sets up the new commercial market. Until then, the tax taking effect Saturday will apply to the existing cannabis market that consists mostly of hemp-derived THC edibles and beverages.

The Legislature didn't impose any tax on the hemp-based edible products when it first legalized them in 2022.

Most of the new tax revenue will go to the state to cover regulatory costs, while local governments will receive 20% of the proceeds.

Students attending public elementary, middle and high schools will now be guaranteed a free school breakfast and lunch every day. A new law provides free meals to every public and charter school student in the state regardless of their family income level.

Schools previously provided free and reduced-price meals only to students whose families were in lower-income brackets.

Democrats have touted the change as a "lunchbox tax cut" that will ensure no students go hungry. The new state program is expected to cost about $200 million per year.

A new college tuition assistance program for Minnesota students whose families make less than $80,000 annually becomes law on Saturday. It will officially start awarding money to students in fall 2024 and is expected to serve 15,000-20,000 students in its first year, according to the Minnesota Office of Higher Education.

To qualify, students must be Minnesota residents, meet the family income threshold and attend a public or tribal college in the state. The program won't cover private college tuition.

The new initiative will be a last-dollar scholarship program, meaning it covers any tuition costs that are left over after state and federal grants and institutional scholarships have been applied.

Minnesota will spend about $117 million to get the program started; it is expected to cost about $50 million annually afterwards.

The Minnesota state grant program is also getting a nearly $40 million funding increase, which will go toward covering more of students' living expenses.

Boat registration fees will go up by 56-151%, depending on the watercraft type and size.

New registration fees are as follows: $209 for boats longer than 40 feet, $85 for personal watercraft, $59 for boats between 17-19 feet and $23 for sailboats smaller than 19 feet.

Seeking to expand access to high-speed internet in Minnesota, a new law appropriates $125 million to the state Office of Broadband Development within the Department of Employment and Economic Development.

That money, along with a recent $650 million grant award from the federal government, will help Minnesota come closer than ever to offering high-speed internet to every resident.

The commerce funding bill passed by the Legislature includes a slew of consumer protection measures.

"Excessive" price increases for generic or off-patent drugs are now prohibited under state law. The law defines that as 15% or more in a single year or 40% or more over three years.

Lawmakers also established a new state Prescription Drug Affordability Board and a Prescription Drug Affordability Advisory Council to protect consumers from drug price hikes.

Another consumer protection measure creates a new student loan ombudsperson position in the Department of Commerce to assist borrowers and resolve any disputes they have with loan servicers.

The Legislature imposed new restrictions on when a judge can issue no-knock search warrants.

Judges now may only sign off on the warrants if a search cannot be done while the premises are unoccupied and if the occupant poses an "immediate threat of death or injury" to officers if they were to announce their presence prior to entering.

No-knock warrants could previously be approved if police proved they couldn't detain a suspect or collect evidence through a knock-and-announce warrant.