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How The Cannabis Industry Can Begin Interstate Commerce— Legally

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Sam Kamin, a professor at the University of Denver Sturm College of Law, says if companies focus on interstate sales and production in legal states that share borders, “it’s a possibility” that the federal government wouldn’t intervene.

Road to Nowhere: Because of cannabis prohibition, companies can only do business in one state at a timef Jonathan Elfand is good at anything, it’s shipping weed across borders. In the 1990s, he smuggled cannabis from Mexico by sealing it inside empty salsa cans and packing them on a truck headed to San Diego. The cannabis, totaling a few tons over seven years before the feds caught him, made its way to Florida, New Jersey and New York.

While cannabis is banned at the federal level, recreational use is now legal in 19 states, with five more on the ballot this November. But every state that has legalized weed has also passed laws banning interstate commerce, meaning every cannabis market is restricted to the state. What that means on an operational level is that cannabis companies can only sell products in the state in which the cannabis is grown, even if that company has a facility in another state where cannabis is legal.

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