Section 280E refers to a provision in the Internal Revenue Code (IRC) of the United States. 280E has significant implications for businesses involved in the sale of controlled substances, including marijuana (or “cannabis” under Minnesota law). The key points related to Section 280E are: Disallowance of Deductions: Section 280E prohibits cannabis retailers from taking deductions […]
Learn MoreMinnesota’s cannabis regulatory agency, the Office of Cannabis Management (also referred to in the law as the “Office”) will be in charge of drafting and issuing rules and regulations related to the industry. It is tasked with a variety of obligations, including: To develop, maintain, and enforce an organized system of regulation for the cannabis […]
Learn MoreAsk most cannabis businesses what they would like to change about the industry and – aside from the 280E tax issue – many would say that they want better access to banking services. This is where the Secure and Fair Enforcement Regulation (SAFER) Banking Act, formerly known as the SAFE Banking Act of 2019, comes […]
Learn MorePeople want to know what Minnesota’s cannabis license application process is going to look like. While we likely will not see the finalized application forms for at least 6 months, it is important to start planning for the substance that you will likely want to and/or have to include. While the statute legalizing cannabis does […]
Learn MoreMinnesota’s cannabis law does a good job of making licenses available to a broad swath of entrepreneurs in the North Star State. Still, the application process is likely to result in significant expenses for applicants before they even know whether their cannabis business will qualify to receive a license from the state of Minnesota. Among […]
Learn MoreAs a brief aside from the business of cannabis, we thought it would be a good idea to educate those of you that are interested in growing your own cannabis. Minnesota’s personal use law is currently in force, so even though you may not be able to buy cannabis products yet, you can grow your […]
Learn MoreAs the cannabis industry develops in Minnesota and other jurisdictions, there is going to be a growing demand for banking services. The problem, however, is that federally chartered banks generally avoid working with cannabis businesses. The federal government has made efforts to open up banking services for the industry, including via the SAFE Banking Act […]
Learn MoreA cannabis mezzobusiness is given many of the same benefits given to a microbusiness licensee and has even more room to grow than a microbusiness, but one key exception is that mezzobusinesses are not permitted to obtain an on-site consumption endorsement. Authorized Actions: A mezzobusiness license allows the licensee to grow, produce concentrate, manufacture artificially […]
Learn MoreOne of the more unique approaches to licensing in Minnesota is the focus on helping small local businesses. The microbusiness license provides small businesses with flexibility not available to other licensees. Authorized Actions: A cannabis microbusiness license allows the licensee to grow, produce concentrate, manufacture artificially derived cannabinoids, and producing other cannabis or hemp products. […]
Learn MoreHemp licenses are somewhat different from cannabis licenses in the sense that a lower-potency hemp edible manufacturer may also own a lower-potency hemp edible retailer license. Moreover, a person could also hold an industrial hemp cultivation license. The vertical integration for lower-potency hemp edible licensees that are not available to cannabis licensees (other than micro- […]
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