Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, we see lawsuits filed to block cannabis rescheduling. Minnesota is taking steps to overhaul their cannabis industry. Some members of Congress would like guidance on the tax implications of rescheduling. And finally, Ultimate Frisbee has an official THC brand.
Link to RESCHEDULING LAWSUITS RESCHEDULING LAWSUITS
Two lawsuits were filed recently to block the rescheduling of medical cannabis. One is being brought by several state Attorneys General, alleging that the administration didn’t follow proper procedures in taking this action. One of their complaints is that the administration had no notice and comment period. While it’s true there were no comments in 2026, when the rule was finally promulgated, over 43,000 comments were received in 2024, when the rescheduling process first began. For reasons that are unclear, Louisiana’s Attorney General has asked that her state be removed from the suit. This lawsuit is being consolidated with one brought in early May by prohibitionist groups Smart Approaches to Marijuana and the National Drug and Alcohol Screening Association.
As if that weren’t enough to keep track of, there’s another suit that was filed late last week by five “aggrieved persons” protesting the rescheduling. Each plaintiff has a unique complaint about the rescheduling itself and the process. Perhaps the most interesting is the argument made by MMJ International Holdings:
The final order directly and concretely injures MMJ by creating a regulatory double standard that rewards state-market marijuana operators who operated outside the federal Controlled Substances Act while penalizing federally compliant pharmaceutical developers like MMJ that invested millions in the FDA pathway, DEA registration and pharmaceutical manufacturing controls. The final order’s expedited registration pathway for state licensees effectively bypasses the rigorous public-interest standards, criminal-history requirements and diversion-prevention controls that DEA imposed on pharmaceutical applicants like MMJ, constituting a competitive injury cognizable under Article III.
Link to MINNESOTA MINNESOTA
Minnesota is looking to reshape the state’s cannabis industry to benefit both the retail market and the hemp operators who are facing a federal ban. Among other changes, the new law will merge part of the state’s cannabis supply chain and make it easier for those in the hemp industry to transition to adult-use retail. In addition, adult-use customers will be able to buy cannabis at a medical marijuana store without a medical card. Those in the industry seem happy to see these changes, as they are less than optimistic that Congress will “save” the hemp industry.
Link to TAX GUIDANCE TAX GUIDANCE
One of the difficulties of running a cannabis business is the inability to deduct business expenses on one’s federal tax forms. Does rescheduling mean that this difficulty has been removed, at least for those businesses in states in which medical, but not adult use, marijuana is legal? In April, the Treasury Department promised that information would be forthcoming. And yet, here we are at the beginning of June, no wiser than we were when that press release was published. Seven members of Congress have sent a letter to the IRS and the Treasury Department urging them to get busy and provide details.
Link to AND FINALLY AND FINALLY
In what should come as a surprise to no one, the Ultimate Frisbee Association (UFA) has named an official THC drink. Delta, a leading THC beverage brand, is one of the first THC companies to partner with a professional sports league. And in case you were wondering, the Ultimate Frisbee season runs April – August.
Be well everyone – we’ll see you next week.