BLOOMBERG ANALYSIS PAYWALL: State Cannabis Licensing Laws Divide Federal Courts

Hemp Cultivation, Processing & Extraction News, Hemp Legalization & Regulatory News for Hemp Businesses

State laws governing cannabis licensing are at the center of almost a dozen recent federal lawsuits that have divided federal courts. The issue in all 11 suits is whether the US Constitution’s dormant commerce clause applies to state cannabis markets while cannabis is illegal under federal law.

The lawsuits pose a novel question about whether the dormant commerce clause prohibits states from requiring residency for a cannabis business license. These cases are unique because they challenge a commerce that’s legal in certain states but is illegal at the federal level—unlike any other industry that falls under the commerce clause’s ambit. …

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