Committee pauses plan to expand business infrastructure fund to plant-based processing amid cannabis and timing concerns

A conference committee paused a planned expansion of the Greater Minnesota Business Development Public Infrastructure program to explicitly include plant-based processing — a change that lawmakers said could take effect after a delayed effective date.

Senator Drayheim, who offered an amendment to delay the expansion, told the committee the change would “just delay it a year and, give the cities time to to review it and and look at it with the budget constraints of of this fiscal budget.” The proposed amendment would push the effective date two years under the version discussed in committee.

Why it matters: Committee members and agency witnesses raised two linked concerns. First, expanding the program increases demand on an existing fund already in heavy use. Second, several members expressed concern that “plant-based” in statute could encompass cannabis processors and other agricultural processors, possibly diverting grant resources from Main Street businesses.

Agency perspective and implementation: Devin Bowdre, government relations director for the Minnesota Department of Employment and Economic Development, told the committee the agency needs clarity on whether plant-based production is included. Bowdre said applicants are currently in “BDPI purgatory” because the statute’s scope is unclear. He told the committee that if the statutory change puts plant-based production within the program, the agency would implement it immediately; the delayed effective date was a legislative choice by the senate author.

Committee action: After extended discussion, members agreed to set aside R1 for further conversations and stakeholder outreach. Several chairs said the pause would allow additional consultation with local governments, agencies and affected stakeholders before moving forward.

Next steps: The committee will gather additional information about which uses the program should cover, whether cannabis processors are to be included, and possible budget implications before revisiting R1.