In the Weeds Blog
In the highly regulated cannabis industry, success is reserved for those who take a thoughtful and strategic approach to entering this market.
In the Weeds aims to help keep today’s cannabis entrepreneur well informed. We track developments in marijuana law and business, including regulatory framework in states where cannabis has been legalized for medical and/or recreational uses and the unique issues that businesses in the cannabis industry face.
This blog offers insights on banking, real estate, finance, corporate entity formation and governance, taxation and creditor rights issues that are distinct to companies in the legal marijuana space, as well as the interplay of collateral businesses to the cannabis industry.
Recent Blog Posts
Illinois Courts Dismiss Wave of THC Vape Product Class Actions
A recent wave of putative class actions accusing Illinois cannabis companies of intentionally miscategorizing vape products has largely collapsed at the pleading stage. Both Illinois federal district courts and state chancery courts have summarily dismissed these cases, finding that the alleged miscategorization does not give rise to a cause of action. In doing so, courts have questioned the fundamental plausibility of these claims. Most recently, an Illinois federal court concluded that the plaintiffs’ claims “are based on the implicit allegation…More
A New Challenge to Section 280E Could Result in Lower Taxes for State-Legal Medical Cannabis Businesses
A new U.S. Tax Court case, New Mexico Top Organics, Inc. d/b/a Ultra Health v. Commissioner, could reshape how Section 280E of the U.S. tax code applies to state-legal medical cannabis businesses.
Ultra Health argues that Section 280E turns on the Controlled Substances Act’s scheduling criteria — not its listed schedules — and that marijuana no longer meets the criteria for a Schedule I or II controlled substance.
If successful, the case could materially reduce the effective federal tax burden for compliant…More
Thirty-two Attorneys General Press Congress to Finally Pass the SAFER Banking Act to Protect Cannabis Businesses and Communities
The cannabis industry continues to face a fundamental challenge: access to the regulated banking system. Despite legalization (adult use and/or medical) in dozens of states, cannabis remains federally illegal, leaving state-licensed businesses largely locked out of traditional financial services. This disconnect has created a cash-heavy environment, increasing risks for businesses, employees, and consumers. On July 24, 2025, a bipartisan coalition of 32 state and territory attorneys general—including those from major cannabis markets like California, New York, Arizona, and Oregon and…More
Minnesota to Hold Cannabis Retail License Lottery For Social Equity and General Applicants on July 22
The Minnesota Office of Cannabis Management is set to conduct its second lottery for Minnesota Cannabis Retail Licenses. On June 5, 2025, the OCM held its first round of lotteries, conducting social equity applicant lotteries for cannabis cultivator, cannabis manufacturer, cannabis mezzobusiness, and cannabis retailer licneses, and general applicant lotteries for cannabis cultivator, cannabis manufacturer, and cannabis mezzobusiness licenses.
Now, the OCM will hold a cannabis retailer license application lottery for both social equity and general applicants on Tuesday, July 22,…More
Minnesota Adopts Final Cannabis Rules
Today, Minnesota’s Office of Cannabis Management announced that Minnesota’s final set of adult-use cannabis rules have been approved, will be publish in the State Register, and will go into effect later this month.
After the rules are published and go into effect, the OCM will be in a position to begin issuing licenses to applicants in uncapped license categories. According to Interim Director Eric Taubel, “The adoption of rules is the most significant step to launching the cannabis market because…More
DC ABCA Licensure Deadline
The grace period during which DC’s unlicensed cannabis establishments must obtain proper licensure without facing enforcement actions is soon ending. By March 31, unlicensed cannabis establishments that have applied for a retailer or internet retailer license must have their licenses issued and must “be in operation.” If these conditions are not met, the DC Alcoholic Beverage and Cannabis Administration (ABCA) may rescind its approval of applications or may summarily deny unapproved applications.
The ABCA has issued guidance on what it means…More
Minnesota Announces Intent to Adopt Expedited Cannabis Rules
On Thursday, the Minnesota Office of Cannabis Management announced its intent to adopt expedited rules without a public hearing. According to the OCM, the expedited rules are “designed to regulate the adult-use cannabis, medical cannabis, hemp-derived consumer products, and lower-potency hemp derived edibles markets in Minnesota,” and will cover “all parts of a licensee’s activities, including application, cultivation, manufacture, packing, labeling, transportation, sale, delivery, record-keeping, testing, and office processes for oversight and enforcement.”
The public comment period for the proposed rules…More
Maryland Office of Social Equity Regulatory Update
The Maryland Office of Social Equity (OSE) is an office within the Maryland Cannabis Administration (MCA). Its purpose is to promote and encourage participation in the regulated cannabis industry by communities that have been disproportionately impacted by cannabis prohibition and enforcement. Last week, the OSE posted draft regulations concerning the OSE’s Social Equity Partnership Grant Program (SEPP), which seeks to promote business partnerships between operational cannabis licensees and social equity licensees.
Among other things, the draft regulations propose a mandatory dispute…More
Minnesota OCM Cancels Separate Social Equity Lottery
As MinnPost reports, Minnesota’s Office of Cannabis Management cancelled its social equity lottery, which would have occurred separate from the general applicant lottery in 2025. A portion of the licenses remain allocated to social equity applicants for when the general applicant lottery is held (with social equity applicants). The OCM anticipates the next lottery to occur in May or June 2025, later than last anticipated by the OCM.…More
Update: DC Cannabis Enforcement
The DC Alcoholic Beverage and Cannabis Administration (“ABCA”) Enforcement Division continues to exercise its enforcement authority against allegedly unlawful cannabis and entheogenic mushroom businesses in the District. A wave of enforcement activity has occurred after the DC Council passed emergency legislation this summer aimed at expanding and clarifying the ABCA’s civil enforcement powers. The emergency legislation expressly granted ABCA investigators the authority to conduct announced and unannounced inspections of unlicensed establishments because these investigators need “clear statutory authority to summarily…More
