The Conference Committee on S.F. 2370, focusing on the Cannabis Omnibus, convened on May 16, 2025, to address critical issues surrounding the state's cannabis supply chain and testing capacity. The meeting highlighted concerns from legislators and stakeholders regarding the implications of a divided supply chain on costs for patients relying on medicinal cannabis.

The session began with discussions led by Senator DeBose, who expressed frustration over the slow progress in developing a legislative proposal aimed at streamlining the cannabis supply chain. He emphasized that there is broad consensus across various sectors that maintaining a separated supply chain is inefficient and contributes to higher costs for patients. DeBose raised concerns about the potential for increased medication prices as the law is implemented, questioning whether the department is taking steps to mitigate these costs.

Director Taubel responded, suggesting that the divided supply chain might not lead to the anticipated price shocks in the medical market. He explained that the lack of crossover between the medical and adult-use markets could stabilize prices for medical patients initially. Taubel noted that the department has made regulatory adjustments to ease the burden on operators, allowing them to use the same equipment for both markets under specific conditions.

Representative West also contributed to the discussion, expressing skepticism about the optimistic outlook on pricing. He raised additional questions regarding the testing capacity for medical cannabis products, particularly concerning whether existing products would need to be retested and how the state plans to manage the anticipated influx of new products seeking testing approval.

In response, Taubel acknowledged ongoing concerns about testing capacity since the office's inception. He reported that as of mid-May, seven laboratories were in the final stages of approval, which would help alleviate some of the testing backlog. However, he did not provide a definitive solution to ensure timely testing for new medical products entering the market.

The meeting concluded with a recognition of the challenges ahead as Minnesota prepares to launch its cannabis market. Legislators emphasized the need for continued dialogue and action to ensure that patients have access to affordable and tested medicinal cannabis products. The committee's next steps will likely involve further discussions on regulatory frameworks and operational efficiencies within the cannabis supply chain.