Minnesota is on the precipice of becoming the 23rd state to legalize recreational marijuana. But we aren’t there yet.

Both the state House and Senate have passed slightly different versions of an adult-use legalization bill. Now a House-Senate conference committee is tasked with resolving the differences between the two bills, but Gov. Tim Walz has pledged to sign whatever bill is decided upon.

This year’s legislative session ends on May 22, so lawmakers have only a few weeks to come to a consensus, vote, and get the bill to Walz’s desk.

For now, Minnesota’s hemp-derived market would remain mostly intact under both bills. It’s important to note that hemp-derived THC products are federally legal and minimally regulated in the state currently. What’s more, both current bills allow retailers and breweries to keep producing and selling hemp-based products.

Both bills also would establish an Office of Cannabis Management, which would be tasked with the oversight of the recreational adult-use program, the state’s existing medical cannabis program, and the hemp-derived THC market. 

While the two bills mostly match, here are some notable differences between the two bills:

Major differences that need to be reconciled between the two bills

• Taxes: the House bill would tax cannabis products at 8% for the first four years, then drop that tax to 5% for the years that followed. The Senate bill would keep taxes at a flat 10%.
• Possession: The House bill sets the possession limit for those buying marijuana at 1.5 pounds and the Senate bill sets it at 2 pounds. However, if someone is growing marijuana, that limit is higher under the Senate bill, which allows for 5 pounds of consumable flower if grown at home. Both bills would allow people over the age of 21 to buy up to two ounces of cannabis flower, eight grams of concentrate, and 800 milligrams worth of edible products at one time.
• Municipal power: The Senate bill would allow cities to cap the number of dispensaries within their limits. The House version would not. Neither bill allows cities to strictly opt-out.
• Expungement: Under the House’s version of the bill, the Minnesota Bureau of Criminal Apprehension will begin the process to expunge misdemeanor records in August of this year. A committee would be formed to consider the expungement of felony-level cannabis crimes. Under the Senate’s bill, this process would not start until 2025. 

Note: This article has been updated to include expungement process differences between the two bills.