Leading cannabis companies are urging a federal court to permit the public to attend a hearing virtually in a lawsuit where the companies are requesting protection for in-state marijuana activities from federal interference. The U.S. Department of Justice has stated it holds “no stance” on this request.
The hearing will take place before the United States District Court for the Western Division of the District of Massachusetts. The plaintiffs’ attorneys highlighted in a motion that the disagreement raises issues of public interest. They reported receiving a lot of requests from the media to watch the hearing online, as most can’t be present in person.
Further, they argue that permitting remote access to the hearing will not prejudice any parties involved. They suggest that access by phone or video conference would be adequate. They also mentioned that they consulted with the defendant’s counsel, who confirmed that the defendant has no stance on the motion.
The lawsuit, titled Canna Provisions vs. Garland, is spearheaded by Verano Holdings Corp., a multistate cannabis operator, alongside Massachusetts-based marijuana companies Wiseacre Farm and Canna Provisions as well as Gyasi Sellers, the CEO of Treevit.
Leading the lawsuit is David Boies, who has previously represented clients such as former vice president Al Gore, the DOJ and plaintiffs in the lawsuit that resulted in the repeal of California’s same-sex marriage statute.
In their lawsuit, the companies argue that the federal prohibition of cannabis lacks justification, especially given the widespread legalization of cannabis in states and the federal government’s generally noninterventionist stance on the matter.
Last month, the plaintiffs requested oral arguments, a request granted by Judge Mark G. Mastroianni, an appointee of President Barak Obama. In response, the DOJ maintained its neutral position.
Central to the case is whether in-state marijuana activity impacts interstate commerce. The federal government contends that marijuana legalization draws tourists from other states, thereby affecting interstate commerce. In a recent filing, the DOJ contended that it makes sense to conclude that Massachusetts’s legal cannabis market stimulates marijuana tourism, a distinct type of cannabis-related interstate commerce.
The DOJ’s brief referenced a Supreme Court decision from decades ago, affirming Congress’s jurisdiction to regulate establishments attracting out-of-state tourists, even if the transactions occur entirely within the state. Conversely, the plaintiffs argue that the Commerce Clause of the Constitution should not allow the DOJ to interfere in activities legal within state borders, as the state itself regulates these.
The recent motion follows an announcement by President Joseph Biden that his administration is formally reclassifying cannabis. A proposal to place marijuana in Schedule III is set to be published in the Federal Register soon.
The planned regulation change was approved by Attorney General Merrick Garland, one of the main defendants in this case. However, rescheduling marijuana would not equate to federal legalization, and it appears unlikely that this rulemaking will impact the DOJ’s stance in the ongoing court case.
Cannabis industry actors such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) await the completion of the rulemaking process so that they can map out their future plans accordingly.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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