Minnesota Senate discusses $60M CAN Renew fund for community reinvestment initiatives

The Committee on Commerce and Consumer Protection convened on April 8, 2025, to discuss several key issues related to the state budget and proposed legislation. The meeting began with a clarification regarding budget reductions, confirming that these reductions do not represent overall cuts to the state budget but rather a reallocation of funds to the Bureau of Criminal Apprehension (BCA) as part of a shift to the judiciary and public safety sectors.

The committee then addressed a proposed increase in the broker dealer agent transfer fee, which is intended to regulate financial brokers and reduce potential abuses. The fee is set to rise from $25 to $60, a decision that diverges from the governor's original proposal, which included additional fees. The author of the bill noted that the adjustments were made to temper the financial impact on the industry while still addressing necessary regulatory measures.

Concerns were raised about the state's projected $6 billion deficit, prompting discussions on the need for expense reductions to avoid further fee increases. The committee acknowledged the importance of managing state resources effectively as they approach the end of the legislative session.

A significant portion of the meeting focused on the CANRenew and CAN Grow programs, which are designed to support communities impacted by cannabis prohibition and assist individuals entering the cannabis industry. The CANRenew program aims to provide grants for community reinvestment, targeting areas with high social equity needs. The CAN Grow program is a revolving loan initiative to help individuals gain the skills necessary for cannabis cultivation.

Senator Rasmussen expressed concerns regarding the oversight and transparency of the CANRenew funding, questioning how the legislature would monitor the allocation and effectiveness of the $60 million earmarked for the program over the next four years. The director of the Office of Cannabis Management assured the committee that there would be annual reports detailing the outcomes of the grant programs, emphasizing a commitment to accountability and proper fund management.

The meeting concluded with a recognition of the ongoing discussions surrounding reinsurance, which remains a critical issue as the session progresses. The committee plans to continue addressing these topics, ensuring that they align with the state's fiscal responsibilities and community needs.