Welcome back to Higher Law, our weekly briefing on all things cannabis. I’m Cheryl Miller, reporting for Law.com from Sacramento, where Gov. Jerry Brown on Wednesday vetoed a bill that would have allowed marijuana operators to deduct business expenses from their state taxes. The issue, Brown said in a veto message, should be addressed in the annual budget process, not legislation.

Internal Revenue Code Section 280E, and more specifically, California’s conformity with it, lives on for now.