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HF4229 • 2026

Use of proceeds from the cannabis gross receipts tax modified, cannabis youth grant program established, and report required.

Use of proceeds from the cannabis gross receipts tax modified, cannabis youth grant program established, and report required.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Lee, X., Coulter, Vang, Clardy, Rehm
Last action
2026-03-12
Official status
Introduction and first reading, referred to Commerce Finance and Policy
Effective date
Not listed

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

  1. 2026-03-12 House

    Introduction and first reading, referred to Commerce Finance and Policy

Official Summary Text

Use of proceeds from the cannabis gross receipts tax modified, cannabis youth grant program established, and report required.

Current Bill Text

Read the full stored bill text
A bill for an act

relating to cannabis; modifying use of proceeds from the cannabis gross receipts

tax; establishing the cannabis youth grant program; requiring a report; amending

Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10; proposing

coding for new law in Minnesota Statutes, chapter 342.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10, is amended

to read:

Subd. 10.

Deposit of revenues; account established.

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(a)
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The commissioner must deposit

the revenues, including penalties and interest, derived from the tax imposed by this section

in the general fund.

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(b) Of the amount deposited under paragraph (a), ten percent is annually appropriated

to the commissioner of children, youth, and families for the cannabis youth grant program

under section 342.71.

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EFFECTIVE DATE.

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This section is effective for gross receipts received after June 30,

2026.

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Sec. 2.

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[342.71] CANNABIS YOUTH GRANT PROGRAM.

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Subdivision 1.

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Establishment.

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The office must establish a cannabis youth grant program

to award grants to programs that promote positive youth development, young people's

self-sufficient transition into adulthood, and young people's health.

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Subd. 2.

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Eligible programs.

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(a) Cannabis youth grants must be awarded to programs

that do at least one of the following:

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(1) provide high quality after-school, summer, or youth employment, training, and

entrepreneurship opportunities as a primary prevention and skill-building strategy;

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(2) employ peer-led youth education and mentorship programs that equip young people

with accurate information, leadership skills, and decision-making tools that mitigate cannabis

use; or

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(3) invest in youth-led restorative justice initiatives that address past harms of cannabis

criminalization and promote positive community engagement.

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(b) Cannabis youth grants must be awarded to programs with the following goals:

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(1) building young people's financial management, employment, and entrepreneurship

skills;

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(2) improving mental health and young people's sense of belonging in community;

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(3) preventing early use of cannabis and other controlled substances; and

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(4) building young people's community engagement and leadership skills.

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(c) The cannabis youth grant program must prioritize communities disproportionately

impacted by cannabis-related criminalization while ensuring statewide distribution.

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Subd. 3.

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Applications.

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Eligible programs must apply for cannabis youth grants on forms

prescribed by the office, describing how the program meets the eligibility requirements in

subdivision 2.

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Subd. 4.

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Reporting requirements.

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The office must submit a report to the chairs and

ranking minority members of the legislative committees with jurisdiction over cannabis

that details the cannabis youth grants awarded, including the amount of money awarded,

the use of grant money, and the programs awarded grants.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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