A federal court judge has struck down regulations barring out-of-state companies from operating marijuana dispensaries.

At issue was a 2011 rule mandating that licensed medical cannabis retailers must be in-state residents. In her ruling, US District Court Judge Nancy Torres opined that Maine’s medical cannabis industry is not “wholly interstate” – as dispensaries are permitted to sell to those from other states. Therefore, she determined that it was inconsistent for the law to provide preferences to in-state residents wishing to sell medical cannabis. 

Earlier this year, state officials set aside a separate regulation mandating that applicants seeking adult-use sales licenses must be in-state residents.

Going forward, out-of-state residents will be able to seek licensure to operate both medical cannabis and/or adult-use retail facilities. 

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