Improved marijuana bill headed for final votes

Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.

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Minnesota's cannabis legalization bill has emerged in its final form, and it's a testament to the fact that the legislative process, as cumbersome as it may be at times, still works.

As once was common for major policy bills, this was a long process, with numerous committees each vetting and shaping the dimensions of legalization. The resulting bills had differences, though, and some significant areas needed attention even after passage. That's where House and Senate conference committee members came in, laboring to resolve differences and making needed improvements that will serve this state well.

Among the most significant of those: giving cities and counties more control over retail sales in their jurisdictions. The House bill initially called for a statewide cannabis office to determine the number of retail outlets for each area based on population. The Star Tribune Editorial Board and others voiced strong concerns about forcing cities and counties to allow businesses whose primary product is a recreational drug.

Fortunately, conference members have produced a bill that gives a measure of local control. It does not allow cities or counties to ban such establishments entirely, but it can limit them to one per 12,500 residents. Additionally, cities within that county can refuse additional licenses if a county meets a threshold of 1 to 10,000 countywide. This is an important measure that gives localities some voice. We are confident that cities and counties will respond to demand if such establishments thrive, don't pose a public safety hazard and add revenue.

It helps that the cannabis tax rate went from 8% in the House bill to the Senate's preferred 10%. Local jurisdictions will get 20% of that revenue to offset compliance and enforcement costs. That's fair.

Steps also were taken to ensure that Minnesota's medical marijuana industry would be somewhat protected. In their zeal to keep Big Cannabis out and keep businesses small, few provisions were made initially to protect against what had happened in other states: a dramatic shrinking of the medical market, which is the only market that can carry prescription-strength products available to children and others.

The conference committee report ensures medical providers can avail themselves of joint licenses to sell recreational cannabis. Those amounts will be capped in relation to the amount of medical cannabis.

House Commerce Chairman Rep. Zach Stephenson, DFL-Coon Rapids, who shepherded the bill through the House and co-led the conference committee, told an editorial writer the compromises were not easy, "but they were necessities in coming to agreement with the Senate. We don't want to make the perfect the enemy of the good."

On taxation, he said, "Our cannabis taxes will still be among the lowest in the country." Cities and counties, he said, argued that the cost of enforcement, public health, public safety and records expungement otherwise could prove cost-prohibitive for them.

On medical dispensaries, he said, "We don't want to see a collapse of our medical industry. Kids will continue to need seizure medications that have proved effective for them. Adults may need products not sold in recreational spaces." Some states, he said, saw a 30-40% decline in their medical industry after recreational cannabis was legalized.

Even in the last stages of a policy debate, it's heartening that lawmakers can continue to listen and make adjustments. That is the heart of the democratic process.

Stephenson said they did so while adhering to a shared goal with Sen. Lindsey Port, DFL-Burnsville: Creating a model akin to small craft breweries, which have proliferated across the state and revitalized many areas. "We want to see communities and people most harmed by prohibition benefit the most from legalization," Stephenson said. "This can be an opportunity for small entrepreneurs, and we don't want to see it all swallowed up by big businesses."

He said the bill retains its emphasis on small startups, with preference given to "social equity" candidates who can show they or their communities suffered harm under prohibition.

And yes, that includes state grant programs financed by cannabis tax revenue, Stephenson said, that can provide starting capital and help novice entrepreneurs navigate the system and workforce challenges.

House and Senate lawmakers will take final floor votes on the bill before the legislative session ends on May 22. Gov. Tim Walz is expected to sign it.

"We think legalization will make a big difference for a lot of people in this state," Stephenson said. "Think about tens of thousands of people who will be able to get a job, get housing, because of expungements. That's a game-changer for them. Think about resources devoted to a failed prohibition policy that can now be redirected. That's game-changing."

It can be. We urge lawmakers to continue listening to communities and ordinary Minnesotans as we navigate this new terrain and to make changes as needed.