In prior blog posts (see here, here, and here), I described how we have been fielding regular inquiries regarding international cannabis, both from companies inside the U.S. looking internationally and from international companies looking to the U.S. market. This post deals with state governance and geography issues for international companies seeking to enter the U.S. market.
U.S. State Governance
Even though the U.S. federal government has primary jurisdiction over certain areas (e.g. food, drugs, certain securities, some criminal matters etc.), each U.S. state and territory has its own set of laws governing other areas (e.g. business entity formation and licensing, employment laws, and other criminal matters).
Some states, like Delaware and Nevada, are considered very “pro-business,” meaning that the state governance framework of laws, regulations, and enforcement of those laws and regulations allows businesses wide latitude on how they conduct their business operations.
Other states, like New York and California, tend to heavily regulate businesses, and that tendency is reflected in the time, expense, and complexity in forming a business, through to the applicable regulations governing the business from the time it is set up. These states often favor employee rights (e.g. non-compete agreements are virtually unenforceable in California,