Bass, Berry & Sims attorneys Mallory Farrar, Justin Starling and Michael Tackeff authored an article for Law360 examining how a recent decision by the U.S. Court of Appeals for the First Circuit could disrupt business operations in the cannabis industry. As the authors point out, the decision will likely “force cannabis businesses to adapt to a new legal reality in which larger, out-of-state corporations can come into states that previously restricted ownership of cannabis businesses to in-state residents only.”

Prior to the ruling, many states favored resident-owned cannabis businesses as opposed to out-of-state ownership. However, the First Circuit ruled that a state, specifically Maine for this case, “could not constitutionally interfere with interstate commerce by imposing a residency requirement that privileged Maine residents over residents of other states.”

The decision could have far-reaching implications for cannabis business owners not just in Maine but throughout the country. If the decision is appealed, the Supreme Court could weigh in on the issue.

The full article, “How 1st Circ. Maine Cannabis Ruling Could Disrupt Business,” was published by Law360 on October 12 and is available online. The authors also wrote on the topic here.