Peridot v. City of Sacramento (22-16783)
This is one of a new trend of cases across the country challenging cannabis licensing programs as violating the Dormant Commerce Clause. In the case, plaintiff challenges the City of Sacramento’s cannabis licensing program, which is an equity program intended to reduce “barriers of entry and participation” in the cannabis industry to those who “have been negatively impacted by the disproportionate law enforcement of cannabis related crimes.” The program prioritizes cannabis storefront licenses to those who meet the elements of the program, which include a preference for those who are current or former residents of the city. CSAC argues that the federal courts should apply the abstention doctrine to this question, stating “there are few social policy questions more sensitive than cannabis regulation in general (and equity programs in particular), and state law indeed remains unclear on key points that may narrow or even eliminate any dormant commerce clause questions.” CSAC’s brief was drafted by RCRC’s General Counsel Arthur Wylene.