Recreational Marijuana Sellers Get Pause on State Residency Rule

Rhode Island must allow for now out-of-state recreational marijuana sellers to apply for licenses to set up dispensaries, after a federal judge said they’re likely to win a lawsuit challenging the state’s residents-only requirement.

The requirement likely violates the US Constitution’s dormant commerce clause, which prohibits states from passing laws that discriminate against or excessively burden interstate commerce by disfavoring out-of-state residents in commercial transactions, the US District Court for the District of Rhode Island said Wednesday. The provision limiting licenses to state residents wasn’t narrowly tailored to advance the state’s valid interests in ensuring citizens’ health and safety, effective ...