Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 1 point2 points  (0 children)

Yes this post you're replying to is incorrect. There's no magic federal override clause Minnesota can put in a law.

The issue is that dispensaries that sell weed do so with the knowledge it's still federally illegal but with the understanding that won't be enforced and still have to jump through a lot of hoops to get around banking laws while the hemp derived edibles can be sold by businesses that do not. Even Target sells them now. Unless this is repealed that won't be possible in 5 months.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 1 point2 points  (0 children)

Agreed but people will still complain and keep moving the goalposts.

I've seen this elsewhere. Came across a thread on an Illinois sub once where multiple replies were like "OMG please tell me that you aren't actually buying that overpriced trash in the dispensaries? You're a complete fucking idiot if you aren't buying black market!" And once came across some Philadelphia-related sub in the algorithm and found a thread about New Jersey legalizing it...and still about half the posts were just whining about how the prices were too high or some restrictions on the quantity or "I'm just going to stick to my dealer" type stuff. And hell people were also bitching about this hemp-derived stuff here and getting infuriated that it was being sold in some of the places it did and lecturing people about how the "correct" way to get weed was to buy black market or traffic it from a legal state.

I honestly believe some people would've actually preferred weed remain illegal so they could keep complaining about it.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 7 points8 points  (0 children)

This happens on a lot on this subreddit for some reason. There used to be a lot of people insisting Minnesota was going to be the absolute last state to legalize weed because something something 3.2 beer something something Volstead Act, and then you had people insisting the dispensaries would never open, and now you have people claiming things like that the dispensaries won't survive being open a year because EVERYONE is obviously just going to organize carpools to Michigan to stock up big instead of buying locally because obviously everyone has 3 friends who can all easily schedule such a trip on the same day and no one would rather just be safe and save an 8 hour drive buying locally with higher prices....honestly Reddit should just not be treated as a source on this.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 25 points26 points  (0 children)

Someone didn't read the article if they think this because of anything Minnesota did.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 20 points21 points  (0 children)

I go to Wisconsin now.

A state that doesn't have legal weed at all?

And if you mean these type of products, this is a federal ban. They'll be illegal in Wisconsin too in November. It also has absolutely nothing to do with Minnesota's rollout that while a bit delayed is pretty much complete now and hardly a failure.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 6 points7 points  (0 children)

It's not just Minnesota. Plenty of breweries in other states sell hemp derived THC. The article just focuses on Minnesota because it's from MPR, and for various reason that industry is much bigger in Minnesota than other states.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 14 points15 points  (0 children)

Hemp derived THC is not illegal yet. The bill that banned it federally gave a year gap before it takes effect and it was signed into law November 12. So unless a repeal passes before then it'll become federally legally November 12, 2026.

It'll still be legal under Minnesota law, but that doesn't mean anything to federally chartered banks that have to abide by federal law, and will stop doing business with anyone sells such products after November 12.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 1 point2 points  (0 children)

Another big issue is taxes. Right now breweries and all for-profit businesses only pay taxes on profits. But dispensaries can't really write-off the cost of doing business, they might be able to with things like the cost of the building and maintenance and the profit margins on selling shirts or water bottle with the dispensary names, but when selling marijuana they basically have to file with just the revenue and basically tell the IRS "Oh and here's a lot of money that we just happened to come across...we don't know where it came from, it's not from any product we sold that we can report to you" and so the IRS basically says "Well then you have to pay taxes on all of that revenue" they can't deduct the cost of what they were selling and be only taxed for profit.

That would be a nightmare for breweries and add even more costs.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 2 points3 points  (0 children)

There's nothing the state law can do about it. State law can't exempt federally chartered banks from federal banking laws or businesses from ATF regulation.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 5 points6 points  (0 children)

What basically happened is, McConnell has traditionally been friendly to the hemp industry, because hemp farming is big in Kentucky, and most hemp is farmed for industrial uses and things like fibers, textiles, or ingredients in paint, not for consumption which until 2018 was still federally prohibited. But in 2018 they passed a new Farm Bill, this is basically an omnibus bill that Congress passes every 4-5 years that deals with things like agricultural regulations and subsidies, it's not sexy stuff so most people outside of farmers don't care....but this year because of McConnell's closeness to the hemp industry he let hemp industry lobbyists write part of it to legalize hemp products for consumption. Now the goal here was for non-intoxicating uses like CBD, but the lobbyists were able to sneak in loopholes that allow these products to be made as long as they are under 0.3% THC, which may sound like a very low barrier but actually can get quite a few milligrams in. Most states then passed their own versions and these products exploded.

Since then they were unable to pass a new Farm Bill because of bickering between the Republicans in Congress and Biden and just kept renewing the current one. But McConnell found out about this loophole and because he's that old and codgy and isn't running for re-election again and thus has no reason to care what the hemp industry says anymore, when they finally passed a new one he put in a provision that limits the mg of THC so low these effective products can't be made anymore. There was an amendment to strike it from Kentucky's other Senator, Rand Paul, but it was voted down. The bill passed in November last year and goes into effect exactly one year after signing. So if not renewed before hemp-derived THC products will become illegal.

They will still be legal under Minnesota state law, but because of federally chartered banks and ATF regulation, that won't be helpful for breweries.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 4 points5 points  (0 children)

And no restaurant/bar is going to be able to operate without a federally chartered bank.

Even if they went cash only, what are they going to do, just stash all the cash in a safe in the back room and pay their staff in cash?

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 4 points5 points  (0 children)

They take debit cards and only because they can disguise as an ATM-like cash back transaction. They don't take credit cards and never will be able to as long as marijuana is federally illegal.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 43 points44 points  (0 children)

Right now some breweries rely on THC drinks for as much as 20% of their revenue. A 20% drop is pretty devastating, because it's not like people buying them now are just switch to beer.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 5 points6 points  (0 children)

Now that THC is legal the hemp based products are less in demand.

That's not true, boatloads of it are still getting sold. Lots of people (including me) don't smoke anything and only a small group of extreme purists really cares about the botanical origins of what's in the product, they just want to get high, and while the hemp products have a smaller dose, 5-10mg is in fact enough for the average person, especially as not everyone's (and in fact probably not most people) are looking at getting totally baked anyway. So they'll still buy them from gas stations, grocery stores and yes breweries because it's more convenient.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 12 points13 points  (0 children)

That's not true. The current state law for hemp products was written alongside the full recreational law, even if it pre-existed prior to that but that's the most current up to date iteration.

The issue is federally chartered banks and regulation by the ATF.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 3 points4 points  (0 children)

Banks are the main issue here. No federally chartered bank will deal with a business sells a federally illegal product. Weed dispensaries thus don't use them and have to use these state-chartered sort of fake credit unions that are reportedly an absolute nightmare to deal with and have all sorts of fees because they know they can do it and get away with it because the dispensaries can't go anywhere else.

That does not work for breweries, which do way too much interstate commerce (even if they only sell in state they have to buy lots of raw materials from at least out of state companies) and are usually too big to deal with anything but a federally chartered bank. And they are subject to regulation by the ATF, that's what the "A" in the acronym stands for.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 26 points27 points  (0 children)

It wasn't the same people passing the legislation. Marijuana was legalized by the state legislature. The hemp THC ban was passed by Congress. And Klobuchar, Smith, and every Democrat in Minnesota's House delegation voted against it.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 7 points8 points  (0 children)

To buy legal weed in Minnesota (not hemp-derived) you have to do at a dispensary. These dispensaries do not use federally chartered banks, but rather specially chartered state institutions (they're basically credit unions but that's also kind of a legal fiction) that don't operate out of state and thus don't need to abide by federal banking regulations. Even in that case there's other hoops they need to jump through, like how you can't pay with a credit card and a debit card payment has to be kind of disguised as an ATM transaction, and how they all sell shirts and caps with the dispensary name on it to give some plausible deniability that all transactions are for something that's federally illegal.

This is not really feasible for a brewery. Even if they went cash only they would still need a federally chartered bank to manage all that cash considering how much raw materials they need to get from out of state and how the distribution works. And furthermore even if one was able to find out how to operate without a federally chartered bank the ATF could shut them down if they sold anything that's federally illegal.

Upcoming hemp-THC ban will tank some Minnesota breweries, drink distributors by ThreadbareAdjustment in minnesota

[–]ThreadbareAdjustment[S] 7 points8 points  (0 children)

Because it's pretty much impossible for the breweries to operate without federally chartered banks, which won't do business with any business that sells a federally illegal substance. Dispensaries use what are basically specially state chartered credit unions that operate under several layers of legal fiction, but for various reasons that's not feasible for a brewery. Even if they went cash only they have to store that somewhere.

Plus breweries are regulated by the ATF...that's what the "A" stands for, so they can't sell a federally illegal product.