Corporate Transparency Act Injunction Gives Temporary Relief from Reporting Obligations 

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December 13, 2024

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Corporate Transparency Act Injunction Gives Temporary Relief from Reporting Obligations 

 

On December 3rd, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction that blocks the enforcement of the Corporate Transparency Act (CTA) (31 U.S.C. § 5336) and the Reporting Rule (31 C.F.R. 1010.380), while also halting the year-end deadline for submitting Beneficial Ownership Information reports. To understand the implications, MCCD sought general legal advice, which we are relaying as follows: 

General information: 

  • This is temporary. The injunction could move at any time, and businesses will then be back on the hook. 
  • Delay filing or voluntary file if you haven’t already filed on the FinCen website. 
  • A decision will not be made by year-end. If the law is reinstated, businesses will have a new deadline for compliance. 
  • Pay attention to the news. Follow the news and official updates on the FinCen website. 

Forbes also offers some recommended next steps for business:  

For businesses that have filed with FinCEN: 

  • Pause Compliance Efforts: The injunction currently halts enforcement of the CTA. While FinCEN may appeal, no immediate action is required at this stage. 
  • Monitor Legal and Administrative Developments: Stay updated on litigation outcomes and any policy shifts under the next administration. 
  • Protect Data: Ensure that any previously submitted beneficial ownership information is safeguarded against potential misuse. 

For businesses that have not filed with FinCEN: 

  • Delay Filing: The nationwide injunction means that no business is currently required to comply with the CTA, but further guidance or court decisions could reinstate the act’s enforceability. 
  • Consult Legal Counsel: Businesses should work with legal advisors to evaluate their exposure under the CTA if the injunction is lifted or enforcement resumes. 
  • Prepare for Potential Compliance: If the injunction is overturned on appeal, businesses may need to act quickly to meet reporting deadlines. Having compliance mechanisms in place will help mitigate risks. 

For a general explanation of the Corporate Transparency Act, we recommend this Forbes article as a practical guide for small businesses.   

Disclaimer: The content is provided for informational purposes only and may not reflect the most up-to-date laws in your jurisdiction. It is not intended, and should not be construed, as legal advice for any specific situation or set of circumstances. 

Social Equity in Cannabis

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June 25, 2024

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Social Equity in Cannabis

Join us for an information session on the verification process for prospective potential social equity applicants interested in entering Minnesota’s cannabis industry this summer.

Recent updates to the state’s cannabis laws have introduced a licensing preapproval and vetted lottery process specifically designed for qualified social equity applicants.

As of June 24, applicants can initiate the verification process to confirm their eligibility for social equity status. This phase closes on July 10. Verified social equity applicants can then proceed to apply for license preapproval starting July 24 until August 12, as mandated by law. Submitted applications will undergo thorough review and vetting, with qualified applicants entered into a lottery scheduled for this fall.

Interested parties can find a detailed, step-by-step guide through the verification process on Minnesota Office of Cannabis Management (OCM)’s website. Additional resources and technical assistance will also be accessible online.

All verification and preapproval processes will be conducted through OCM’s website. For more information and to stay updated, please visit OCM’s website. Detailed eligibility requirements for social equity can be reviewed at Social Equity Qualifications.

We look forward to helping community members navigate this exciting opportunity to participate in Minnesota’s emerging cannabis market.

Information Session:

Date: July 2, 2024

Time: 5:30 PM

Where: Virtual

Registration

$3.1 Million in Racial and Economic Justice Grants Awarded

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May 15, 2024

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$3.1 Million in Racial and Economic Justice Grants Awarded

In a significant step towards fostering racial and economic equity, The Minneapolis Foundation has announced the recipients of its Racial and Economic Justice Grants naming MCCD as a recipient. 

The funding supports organizations and projects that:

  • Advance structural and systems change through policy advocacy, organizing, and movement building.
  • Invest in economic systems and practices that build wealth and stabilize communities.
  • Advance narrative strategies focused on racial and economic justice.
“For too long, traditional economic development practices have inflicted economic, social, and political harm on BIPOC and low-wealth communities. At MCCD, we see shared ownership as an approach that repairs this harm and builds community wealth.” – Elena Gaarder, CEO of MCCD

With the support of The Minneapolis Foundation and racial and economic justice at the core of our work we will continue to advance policy, create access to capital, and provide technical assistance to expand worker owned cooperative development.