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 grant 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 report on the use of grant funds. A report detailing the grants awarded will be submitted to legislative committees overseeing cannabis, with the program set to be effective from July 1, 2026.