California’s Supreme Court has ruled that federal prohibition does not prevent marijuana businesses in the state from transporting their products. This decision rescinds a previous ruling from a lower court, which had suggested that federal law could undermine California’s cannabis market.
The case involved a lawsuit from a company in Santa Barbara County that opposed the use of an easement, which is a legal right to use someone else’s property, for transporting cannabis products that are legal under state law. In January, a state appellate court sided with this company, claiming that federal law took precedence over state law and that the easement could not be used for marijuana transport. However, the California Supreme Court has now overturned that ruling.
Nicole Elliott, the Director of the Department of Cannabis Control (DCC), expressed satisfaction with the court’s decision, stating that the ruling supports California law and its legal cannabis industry. The case, known as JCCrandall v. County of Santa Barbara, was specific to the company and the county involved, but the DCC highlighted that the original appellate court decision implied broader implications that could challenge California’s cannabis regulations due to federal law.
Without the state Supreme Court’s intervention, the previous ruling could have led to numerous legal challenges against various aspects of California’s marijuana laws. The DCC noted that other appellate courts in California have consistently upheld the state’s cannabis regulations, affirming that they do not conflict with federal laws. Furthermore, the California Legislature has established that commercial cannabis activities compliant with state and local laws are lawful and should not invalidate easement rights.
This ruling comes shortly after California officials released a report discussing the current state and future of the marijuana market. Independent analysts found that the federal prohibition on cannabis, which restricts interstate commerce, is significantly contributing to the growth of the illicit market in California.
California Governor Gavin Newsom signed a bill in 2022 that would allow him to enter into interstate cannabis commerce agreements with other states where marijuana is legal. However, this ability was contingent upon federal guidance or an assessment from the state attorney general. In 2023, California Attorney General Rob Bonta’s office concluded that authorizing interstate marijuana commerce could expose the state and its employees to serious legal risks of federal enforcement.
Additionally, the Governor’s Office of Business and Economic Development (GO-Biz) announced plans to distribute $18.4 million in marijuana tax-funded grants to various cities and counties in California. These grants are intended to support equity programs and help reduce barriers to entry for individuals looking to participate in the cannabis industry.
