This bill modifies the use of proceeds from the cannabis gross receipts tax by establishing a cannabis youth grant program. It amends Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10, to allocate ten percent of the revenues from this tax to the commissioner of children, youth, and families for the new program. The effective date for this allocation is set for gross receipts received after June 30, 2026.

The cannabis youth grant program aims to support initiatives that promote positive youth development, self-sufficient transitions into adulthood, and overall health for young people. Eligible programs can include after-school and summer opportunities, peer-led education, and youth-led restorative justice initiatives. The program prioritizes communities disproportionately affected by cannabis criminalization and requires applicants to describe how their programs meet specific eligibility criteria. Additionally, the office overseeing the program must report to legislative committees on the grants awarded, detailing the amounts and uses of the funds. This section of the bill will take effect on July 1, 2026.