Unpacking Dormant Commerce Clause Cannabis Circuit Split
As more states have legalized cannabis, the legal landscape for the cannabis industry has continued to evolve.
One key question courts have faced is whether the dormant commerce clause applies to the state-legal cannabis industry. As of January, a circuit split has emerged on this issue pitting holdings from the U.S. Courts of Appeals for the First and Second Circuits against that of the Ninth Circuit.
The dormant commerce clause limits the power of states to unduly burden interstate commerce. Among other things, it prohibits states from adopting protectionist measures that discriminate against out-of-state competitors unless those measures are "narrowly tailored to advance a legitimate local purpose."
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