California Attorney General Warns of Federal Risks in Interstate Cannabis Commerce

1.6 min readPublished On: December 22nd, 2023By

LOS ANGELES- California Attorney General Rob Bonta has recently raised significant concerns over the potential federal legal risks involved in initiating interstate cannabis commerce. This issue has become a pivotal point of discussion following the enactment of a law by Gov. Gavin Newsome last year, which authorized state-licensed cannabis companies to export their products to markets in other states where cannabis is legal.

However, the law is contingent upon the assurance of non-interference from the federal government. Cannabis, classified as a Schedule I substance under the federal Controlled Substances Act, remains federally prohibited, thereby creating a complex legal landscape for states like California.

Nearly a year after California cannabis regulators requested the Attorney General’s office to deliberate on this matter, the response is clear. According to Attorney General Bonta, allowing commercial cannabis activities between out-of-state licensees and California licensees could expose the State of California to “significant legal risk under the federal Controlled Substances Act.”

Bonta’s statement also underscores the looming “risks of federal preemption of state law and criminal prosecution of state employees.” The legal terrain remains uncertain, particularly concerning the potential federal prosecution of state officials implementing state laws in this area.

The situation in California reflects a broader national conversation on cannabis laws. Oregon, California’s northern neighbor, passed a similar law for interstate cannabis commerce in 2019. However, implementation awaits federal government approval. Similarly, Maine lawmakers proposed a bill for interstate cannabis commerce earlier this year, but it was defeated in committee, as reported by Marijuana Moment.

The intersection of state and federal law on cannabis commerce remains a contentious and evolving issue. States like California are navigating this legal ambiguity, balancing the advancement of their cannabis industries with the uncertainties of federal law enforcement. Attorney General Bonta’s recent statement adds to the ongoing dialogue, highlighting the complexities and risks associated with state efforts to expand the cannabis market across state lines.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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