(The Center Square) — A provision of New York’s cannabis law that gives priority for pot licenses to in-state applicants is unconstitutional, a federal appeals court has ruled.

The U.S. Court of Appeals 2nd Division ruled on Wednesday that a portion of the state’s social equity program, which excludes individuals with federal or out-of-state pot convictions from receiving priority, likely violates the dormant Commerce Clause by favoring New York residents over those from other states. The dormant clause prevents states from passing laws unfairly, giving their businesses an edge over out-of-state companies.

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