Canna Provisions, Inc. v. Bondi

138 F.4th 602
CourtCourt of Appeals for the First Circuit
DecidedMay 27, 2025
Docket24-1628
StatusPublished
Cited by1 cases

This text of 138 F.4th 602 (Canna Provisions, Inc. v. Bondi) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canna Provisions, Inc. v. Bondi, 138 F.4th 602 (1st Cir. 2025).

Opinion

United States Court of Appeals For the First Circuit

No. 24-1628

CANNA PROVISIONS, INC.; GYASI SELLERS; WISEACRE FARM, INC.; VERANO HOLDINGS CORP.,

Plaintiffs, Appellants,

v.

PAMELA J. BONDI, Attorney General*

Defendant, Appellee.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Mark G. Mastroianni, U.S. District Judge]

Before

Barron, Chief Judge, Montecalvo and Rikelman, Circuit Judges.

David Boies, with whom Jonathan D. Schiller, Matthew L. Schwartz, David P.G. Barillari, Joshua I. Schiller, and Boies Schiller Flexner LLP were on brief, for appellants. Daniel Aguilar, Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, with whom Brian M. Boynton, Principal Deputy Assistant Attorney General, Civil Division, U.S. Department of Justice, Mark B. Stern, Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, and Sarah Carroll, Attorney, Appellate Staff, Civil Division, U.S. Department of Justice, were on brief, for appellee.

* Pursuant to Federal Rule of Appellate Procedure 43(c)(2), Attorney General Pamela J. Bondi is automatically substituted for former Attorney General Merrick B. Garland as Defendant-Appellee. May 27, 2025 BARRON, Chief Judge. The appellants are four businesses

that allege that they cultivate, manufacture, possess, and/or

distribute marijuana wholly within Massachusetts in full

compliance with its laws and regulations. In 2023, they sued the

Attorney General of the United States. They claimed that the

Controlled Substances Act ("CSA"), 21 U.S.C. § 801 et seq., "as

applied to [their] intrastate cultivation, manufacture,

possession, and distribution of marijuana pursuant to state law,"

exceeded Congress's powers under Article I of the United States

Constitution and violated the Due Process Clause of the Fifth

Amendment to the Constitution. They sought a declaratory judgment

to that effect. They also sought an injunction prohibiting the

enforcement of the CSA as to them, "in a manner that interferes

with the intrastate cultivation, manufacture, possession, and

distribution of marijuana, pursuant to state law." The District

Court dismissed the appellants' claims for failing to state a claim

on which relief could be granted. We affirm.

I.

A.

Congress enacted the CSA in 1970, as part of the

Comprehensive Drug Abuse Prevention and Control Act. Gonzales v.

Raich, 545 U.S. 1, 10-12 (2005). "The main objectives of the CSA

were to conquer drug abuse and to control the legitimate and

illegitimate traffic in controlled substances." Id. at 12. To do

- 3 - so, "Congress devised a closed regulatory system making it unlawful

to manufacture, distribute, dispense, or possess any controlled

substance except in a manner authorized by the CSA." Id. at 13

(citing 21 U.S.C. §§ 841(a)(1), 844(a)).

The CSA grouped all controlled substances into five

"schedules" based on their "accepted medical uses, the potential

for abuse, and their psychological and physical effects on the

body." Id. Each schedule imposed "a distinct set of controls

regarding the manufacture, distribution, and use of the substances

listed therein." Id. at 14.

The CSA classified marijuana as a Schedule I drug, which

made "the manufacture, distribution, or possession of

marijuana . . . a criminal offense," except as authorized by the

CSA. Id. "Despite considerable efforts to reschedule marijuana,

it remains a Schedule I drug."1 Id. at 15.

In Raich, the Supreme Court of the United States ruled

on a claim that the CSA exceeded Congress's Article I powers under

the Commerce Clause and the Necessary and Proper Clause insofar as

that statute applied to possession and cultivation of marijuana

for personal medical use in compliance with state law. Id. at

7-8. There, the plaintiffs were two individuals who wished to

In May 2024, the Attorney General issued a notice of 1

proposed rulemaking that contemplates transferring marijuana from Schedule I to Schedule III. 89 Fed. Reg. 44597 (May 21, 2024). The administrative process remains pending.

- 4 - grow and possess marijuana for personal medical use based on a

physician's recommendation in accord with a California law that,

notwithstanding the CSA, authorized such activity as a matter of

state law. Id.

Raich rejected the constitutional challenge on the

ground that Congress had a rational basis for concluding that the

failure to regulate "the intrastate cultivation and possession of

marijuana for medical purposes based on the recommendation of a

physician would substantially affect the larger interstate

marijuana market." Id. at 21-22. The Court explained that the

CSA's criminalization of the cultivation and possession of

marijuana for personal medical use in compliance with state law

was "an essential part of a larger regulatory scheme" for

regulating marijuana that the CSA establishes. Id. at 30.

Beginning roughly a decade later, however, Congress each

year has attached a rider to its annual appropriations bill. The

rider concerns the authority of the U.S. Department of Justice

with respect to state-regulated medical marijuana. It provides:

None of the funds made available under this Act to the Department of Justice may be used, with respect to any of [the listed states and territories] to prevent any of them from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.

Consolidated Appropriations Act, 2024, Pub. L. No. 118-42, § 531,

138 Stat. 25, 174 (2024); see also United States v. Sirois, 119

- 5 - F.4th 143, 145 (1st Cir. 2024) (noting the same). This

rider -- often referred to as the "Rohrabacher-Farr

Amendment" -- "places a practical limit on federal prosecutors'

ability to enforce the CSA with respect to certain conduct

involving medical marijuana." United States v. Bilodeau, 24 F.4th

705, 709 (1st Cir. 2022). In addition, in 2010, Congress permitted

the District of Columbia to enact a medical marijuana program.

B.

In advancing their as-applied challenge to the CSA, the

appellants refer in their complaint to the post-Raich federal

legislative developments just mentioned. They also allege that,

as of the time of the complaint's filing, twenty-three states had

created regulated intrastate markets for non-medical, adult-use

marijuana. Their complaint asserts that, in consequence of these

developments, Raich's rationale for upholding the CSA against the

challenge in that case provides no basis for upholding it against

their challenge to the CSA based on Congress having exceeded its

Article I powers. Their complaint separately alleges that the CSA

is unconstitutional as applied to their activities under the Due

Process Clause of the Fifth Amendment.

The government moved to dismiss the complaint for, among

other things, "failure to state a claim upon which relief can be

granted." Fed. R. Civ. P.

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