Dormant Commerce Clause Issues Are Evolving In Cannabis

Can states restrict ownership of licensed businesses to state residents only? The answer to this question would generally be a straightforward no — states cannot attempt to provide undue, preferential treatment to their own citizens over those from other states.

But federal courts have reached different conclusions when it comes to state-legal marijuana operations.

For instance, in the U.S. Court of Appeals for the First Circuit, the appellate panel concluded last year in Northeast Patients Group v. United Cannabis Patients and Caregivers of Maine that the U.S. Constitution precluded states from implementing residency requirements for dispensary ownership in Maine.

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