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On Tuesday, the Second Circuit issued a 2-1 panel decision that ruled that the dormant commerce clause – the prohibition against a state favoring its residents to the detriment of out-of-state residents – applied to cannabis licensing. This is, of course, a unique issue because cannabis is illegal at the federal level, so the question being presented in these cases is whether the dormant commerce clause can protect a federally illegal activity. Some courts believe the clause applies (e.g., Second Circuit), while other Circuit Courts have found it does not apply (e.g., Ninth Circuit).
