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Midterm Election Wins, Losses, and the Lame Duck Session

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Last week, the long-anticipated 2022 midterm elections (finally) took place. In addition to the usual House and Senate elections, five states voted on cannabis ballot initiatives: Arkansas, Maryland, Missouri, North Dakota, and South Dakota – with only two of those passing successfully. Let’s take a look at what transpired and what it means for the lame duck session and possibly the 118th Congress:

Ballot Initiatives

Voters in Arkansas, Maryland, Missouri, North Dakota, and South Dakota were all faced with a similar question on election day: whether or not to legalize cannabis for adult use. Unfortunately, three of the five initiatives did not gather enough support to pass: Arkansas, North Dakota, and South Dakota. 

The results for Maryland’s referendum came in early on election night with a decisive victory: more than 65% of voters cast their ballots in support. They were asked “Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1st, 2023, in the state of Maryland?” Now that the measure has been approved by voters, it will require the legislature to put forth a bill that will set basic regulations for the adult-use cannabis program.

Missouri voters also approved Amendment 3, which would legalize cannabis for adults 21 and over, as well as impose a six percent tax on recreational cannabis sales and use the revenue to facilitate automatic expungements for people with certain non-violent marijuana offenses on their records. The amendment garnered 53% of the vote.

This gives advocates an increase in the number of representatives and four more Senators from legal states, most notably those from Missouri, who are both avid conservatives and have not supported cannabis reform broadly in the past. 

House of Representatives

Although Republicans are still projected to win the House, the margins are shaping up to be narrower than initially predicted. It takes 218 seats to win a majority in the chamber, and as of publication, Republicans hold 212 with a number of districts still yet to be called. 

The change in party control means a change in leadership and shake-ups at the committee level. Minority Leader McCarthy is expected to run for Speaker of the House, while Minority Whip Steve Scalise has thrown his hat in the ring for Majority Leader – but there’s much uncertainty and infighting within the caucus. 

Senate

Control of the Senate will remain in the hands of Democrats. Over the weekend, Nevada’s Senate race was called for incumbent Catherine Cortez Masto – making Georgia’s runoff election slightly less contentious. 

A closely watched Senate race in Pennsylvania flipped in favor of Democrats: legalization advocate John Fetterman (D) defeated TV-personality and New Jersey resident Dr. Oz (R). We continue to closely monitor the races in Alaska and Arizona and what their outcomes may mean for cannabis reform. 

Lame Duck Session

The likelihood of a split Congress means that the lame duck session happening between now and January will be jam-packed. In addition to must-pass legislation like the National Defense Authorization Act (NDAA) and a budget/omnibus bill of some type, Democrats will also be focused on other topics like judicial nominations, the debt ceiling, and hopefully the SAFE Banking Act. 

Midterm Elections Looking Green

By Madeline Grant, NCIA’s Government Relations Manager

The midterm elections are quickly approaching with less than three weeks away. Not only will the elections determine the balance of power in Congress, but local elections and ballot measures are set to make a big impact across the country. As the midterm elections approach, another 20 million Americans could soon be living in a state where anyone at least 21 years old can legally possess marijuana. There are six states with recreational cannabis legalization initiatives or referendums on the ballot this November: Arkansas, Maryland, Missouri, North Dakota, Oklahoma, and South Dakota. Let’s take a closer look at each state:

Arkansas

Although the Arkansas Board of Election Commissioners rejected the ballot question in August, the state Supreme Court cleared the way for the question to make it to the poll. The Responsible Growth Arkansas campaign submitted about 193,000 signatures- more than double what’s required to qualify the constitutional amendment- in July. If the initiative, Issue 4/ the Marijuana Legalization Initiative, is approved by voters, it would allow adults 21 years and older to legally possess up to an ounce of cannabis. It would implement a 10 percent tax on sales and require the state’s Alcoholic Beverage Control Division to develop rules for businesses, according to Ballotpedia. The initiative does not allow for home cultivation, and it has no provisions to expunge cannabis-related criminal records. For more specifics on what the initiative would accomplish read HERE.

Maryland

When Marylanders head to the polls in November, they will be asked to approve or reject legislation that allows adults 21 and over to possess, use, or grow small amounts of cannabis. If passed, the referendum would open the door to creating a taxed and regulated recreational cannabis industry in the State. State lawmakers have been paving the way for future cannabis legalization when they passed two separate bills in April of this year. House bill 837, which is set to go into effect in July 2023, would allow anyone over the age of 21 to possess up to 1.5 ounces of cannabis, with anything between 1.5 and 2.5 ounces subject to a civil fine of $250 and anything above 2.5 ounces subject to a charge of possession and intent to distribute. The second bill, House Bill 1, established that the question of legalization would be put to voters via a referendum on the November ballot. It’s important to note that this bill does not establish the regulatory framework for the recreational market, and state lawmakers will need to return next session to build out a framework for the cannabis industry if the referendum passes in November. A recent Goucher poll found that 62 percent of residents- including about half of Republicans- support legalizing recreational cannabis, with just 34 percent opposed. 

Missouri

After a long battle between the Legal Missouri 2022 and prohibitionists, an initiative to legalize cannabis in Missouri officially cleared for ballot placement this September. Joy Sweeny, who is affiliated with the Community Anti-Drug Coalitions of America (CADCA), filed a lawsuit, alleging that the legalization initiative violated the single-subject rule for ballot measures under the state Constitution and that the signatures were improperly certified, according to Marijuana Moment. Two lower courts dismissed the challenge, so Sweeney sought to bring it directly to Missouri’s Supreme Court, where they would not take the case. Missouri Amendment 3, Marijuana Legalization Initiative (2022) would legalize the purchase, possession, consumption, use, delivery, manufacturing, personal use for adults over the age of 21; allow individuals convicted of nonviolent cannabis-related offenses to petition to be released from incarceration and/or expungement; and exact a 6 percent tax on the sale of cannabis.

North Dakota

The campaign New Approach ND delivered 25,762 signatures to the secretary of state’s office in July 2022. A month later, Secretary of State Al Jaegar’s (R) office approved the measure, certifying that the campaign had submitted enough valid petitions to put the measure before voters, according to Marijuana Moment. The initiative would allow adults 21 and older to purchase and possess up to one ounce of cannabis and grow up to three plants for personal use. The legalization proposal will now be designated as “Measure 1” on the ballot this November. 

Oklahoma

South Dakota

Similar to North Dakota, in May 2022 the secretary of state’s office confirmed that South Dakotans for Better Marijuana Laws (SDBML) turned in a sufficient number of signatures to qualify a cannabis legalization measure for the November ballot. In the 2020 election SDBML’s success at the ballot was overruled by the state Supreme Court as a result of a legal challenge funded by Governor Kristi Noem’s (R) administration. The court ruled that the measure violated a single-subject rule for ballot initiatives. Ironically, Governor Noem made comments pledging to implement cannabis legalization if voters approve the ballot initiative at an event this past August. Some advocates believe she has no choice but to pivot her support now that she is up for reelection. With SDBML’s success this year, South Dakotans will vote on the ballot measure in November. 

There is no denying that 2022 is a big year for cannabis policy reform. Although state campaigns have met challenges through the courts, state officials, governors, prohibitionists, law enforcement, and more; it is evident that there is no stopping the voice of the people. As the country gears up for the midterm elections, all of these states will continue to educate and campaign for the recreational passage of cannabis. The 2022 midterm elections come on the heels of President Biden’s announcement to pardon thousands of people convicted of marijuana possession under federal law and review whether marijuana should be in the same legal category as drugs like heroin and LSD. The timing of President Biden’s announcement illustrates an important fundamental change in America’s response to cannabis and the National Cannabis Industry Association is hard at work on Capitol Hill to continue educating Congress. 

Make sure to stay informed as we head towards the lame duck session via our newsletter and social media platforms and don’t forget to register for NCIA’s upcoming 11th Annual Cannabis Industry Lobby Days in May 2023! If you’re interested in learning more about our policy work please reach out to madeline@thecannabisindustry.org

 

Victories and Challenges For Cannabis Policy Reform

By Morgan Fox, NCIA’s Director of Media Relations

On April 19, the House of Representatives approved legislation once again that would provide legal protections for financial service providers to work with cannabis businesses that are in compliance with state laws. The Secure and Fair Enforcement (SAFE) Banking Act, or H.R. 1996, was reintroduced in March by a bipartisan group of sponsors and had 177 total cosponsors by the time of the vote.

The legislation was approved by a vote of 321-101 and included 106 Republicans voting in favor of the measure, a small majority that represents a growing trend of increasing conservative support since the last time this bill was approved in the House in 2019. No Democrats voted against the bill. This is the fourth time that the House has approved the language of the SAFE Banking Act, initially as the first standalone cannabis policy reform bill ever passed by either chamber of Congress two years ago and two more times last year as part of pandemic relief packages that were not approved in the Senate.

In the time that elapsed between the last vote on the SAFE Banking Act and this one, a number of factors have added momentum and boosted the pressure on federal lawmakers to more seriously consider cannabis policy reform generally and bills like the SAFE Banking Act.

First, cannabis businesses were nearly unanimously declared essential in states with regulated markets during the pandemic, adding to the legitimacy of the industry in the eyes of many while providing uninterrupted healthcare, jobs, and tax revenue in a very challenging economic and public health environment. However, despite increased sales over the last year, the operational costs required to keep employees and customers safe have taken their toll, compounded by the added costs and other challenges associated with limited access to banking services or traditional loans.

These obstacles were felt even more keenly by cannabis businesses because they could not avail themselves of the federal stimulus packages approved by Congress, such as PPP or funds available through the Small Business Administration. Helping to ease the worsening financial burdens facing the cannabis industry during such a difficult time was a major reason for the inclusion of SAFE Banking language in the House-approved aid bills. Recently, standalone legislation has also been reintroduced by Small Business Committee Chair Nydia Velazquez to allow direct and indirect cannabis businesses to be able to access SBA-backed loans and other assistance programs.

Unfortunately, the inclusion of cannabis language in House stimulus packages was used as a political attack tool in the leadup to the election by some lawmakers, likely leading to a postponement of a House vote on the MORE Act, which would remove cannabis from the schedule of controlled substances and help repair the damage done by prohibition. Those attacks significantly died down in November, however, when five states approved adult-use or medical cannabis ballot initiatives by heavy margins, including the red states of Mississippi, Montana, and South Dakota. These victories paved the way for the historic passage of the MORE Act in the lower chamber in December. Three additional state legislatures have passed adult-use laws since then, including the first Southern state of Virginia.

This combination of political will, the feasibility of passing cannabis policy reform measures both comprehensive and incremental, and the introduction of eight new regulated cannabis markets in just a few short months has lawmakers of all stripes taking a much closer look at this issue than ever before. Even staunchly opposed legislators are being forced to reexamine their positions on bills that would directly benefit their constituents and businesses in their states, particularly in light of the urgent need for jobs and taxes as the pandemic response begins to pivot toward economic recovery. This is on top of record public support nationally for legalization. It is becoming increasingly clear to lawmakers that standing in the way of reform is a losing proposition.

With the passage of the SAFE Banking Act, it is likely that the House will move its attention to amending and approving the MORE Act for a second time, as well as considering several other pieces of cannabis-related legislation. The fate of the SAFE Banking Act now lies with the Senate. Senate Majority Leader Chuck Schumer said recently that he would prefer to wait for further consideration of that or other incremental reforms until after the introduction of his much-anticipated comprehensive descheduling bill in the coming weeks. We are confident that debate and progress on these bills is not mutually exclusive, and moving both pieces of legislation through the upper chamber simultaneously is both possible and likely, especially given the broad bipartisan support that the SAFE Banking Act enjoys.

State of the States – Cannabis Policy Reform in the Current Legislative Sessions

by Morgan Fox, NCIA Director of Media Relations

The last few weeks have seen quite a bit of excitement for the possibility of comprehensive federal cannabis policy reform being closer than it has ever been, but what about the states?

Historically, the vast majority of progress has been made at the state level, and this year is shaping up to be another one full of victories for legalization advocates as state governments struggle to support their economies, create new tax revenue and job sources, and tackle long-overdue criminal justice reforms.

The overwhelming approval by New Jersey voters of a referendum to make cannabis legal for adults last year has put the spotlight firmly on the Northeast and mid-Atlantic regions. With state legislative sessions already underway, a number of states are already prioritizing legalization much more heavily than in years past even as New Jersey lawmakers struggle to pass enacting legislation to carry out the will of the voters in a fair and equitable manner. It is pretty clear that New Jersey’s neighbors don’t want to be left behind when it starts reaping the benefits of regulated cannabis markets.

Early this year, New York’s Gov. Andrew Cuomo released a statement outlining his plan to make cannabis legal in the state, and just recently added amendments that would allow delivery, clarify the tax system, and reduce penalties associated with some cannabis activities. There are still some concerns with this plan, including the amount of funding that would actually go toward repairing the disparate harms caused by prohibition and the lack of legal home cultivation. Regulated cannabis in New York could be worth more than $3.5 billion and create more than 60,000 jobs, making it one of the largest state cannabis markets in the country.

Meanwhile, in Delaware, a legalization bill that was approved in the state House in 2019 is slated to be reintroduced by the sponsor in the coming weeks. This bill would come on the heels of a report released last month by the state auditor which estimated that Delaware could take in $43 million annually with a 20% excise tax, and create more than 1,400 jobs over a five year period. In what seems to be a disturbing trend in some state legislatures this year, this bill is not expected to initially include home cultivation either.

In Connecticut, however, a new adult-use bill has been introduced that would center on restorative justice and social equity in the industry and would allow adults to grow limited amounts of cannabis in their homes. This bill has strong support in the state legislature but may soon have to compete with Gov. Ned Lamont’s proposal, which is expected to be released soon.

Nearby Pennsylvania is likely to consider adult-use legislation this year, with Gov. Tom Wolf (along with the incredibly supportive and newly internet-famous lieutenant governor) urging lawmakers to address the issue and – earlier this month – calling it a priority for his state’s annual budget proposal. Rhode Island lawmakers are expected to consider legalization again this year as well, and with the departure of Gov. Raimondo, it is more likely that the emphasis will shift away from a state-run model and back to regulating private businesses.

Farther South, Virginia made headlines this month by becoming the first state in 2021 to have both chambers of its legislature approve adult-use bills. Lawmakers are committed to ironing out the differences between the two bills this month during an extended session. With Gov. Ralph Northam in full support, Virginia stands poised to become the 16th state overall to make cannabis legal for adults and the first state to do so in the South, and it would be only the third to regulate cannabis through its legislature.

Adult-use legislation has also been introduced in Maryland, with supporters and cosponsors optimistic that it could be passed this year, though lawmakers there are not as far along in the process as their neighbors in Virginia. And in medical news, advocates in South Carolina are taking another shot at passing a medical cannabis bill there.

There are signs of progress from elsewhere in the nation as well. After running out of time in an emergency session last year, New Mexico’s governor and lawmakers wasted no time in getting back to legalization efforts this year. There are currently several bills being considered, and it appears very likely that some form of adult-use will be approved there this year.

This is just a snapshot of the momentum and positive movement we are seeing at the state level this year. If you are interested in up-to-date information about all cannabis-related state legislation in the U.S., please consider subscribing to Marijuana Moment’s bill tracker.

Unfortunately, the news isn’t all good.

In South Dakota, where voters approved both medical and adult-use initiatives in November by wide margins, advocates have suffered a temporary setback on the adult-use front. After a pair of law enforcement officials sued to have the adult-use bill thrown out because it addresses too many issues for a constitutional amendment, a circuit court judge ruled in their favor earlier this month. This situation is extremely disheartening and outrageous: the will of the people was overturned by a judge who was appointed by a governor who not only actively campaigned against the ballot initiative but also paid for the lawsuit to overturn it with taxpayer money! However, supporters have appealed the decision to the state Supreme Court.

In Montana, where voters also passed an adult-use initiative in November, supporters are faced with another lawsuit on similar grounds that was filed by opponents. However, observers are skeptical of that suit being successful, and lawmakers are moving ahead with developing enacting legislation.

And in Idaho, where a medical cannabis initiative was prevented from getting on the ballot last year, prohibitionist lawmakers are moving forward with a bill that would prevent any future legislation to make cannabis or any other currently illegal substance legal. If passed, this bill would be put before the voters in 2022, where it could very well be on the same ballot as a medical cannabis referendum.

Despite efforts to overturn progress and maintain failed and harmful cannabis policies, things are generally looking up and we expect several states to pass laws to stop arresting cannabis consumers and establish legal, regulated marketplaces in the near future.

One last item, so as not to totally leave out federal news: this week, NCIA joined members of Congress, advocates, and other industry leaders in calling on Pres. Biden to pardon all non-violent cannabis convictions and commute the sentences of anyone currently serving time.

Stay tuned for further developments!

 

Member Blog: Four States Legalized Cannabis in November – Here’s What That Means for the Industry

By Aaron Rosenbluth, Director of Content at Hybrid Marketing Co.

Voters in New Jersey, Arizona, South Dakota, and Montana legalized adult-use cannabis sales during November’s election. So, what comes next?

Last month, Americans in four states voted to legalize adult-use cannabis. 

If you’re an adult over 21 in Arizona, New Jersey, South Dakota, or Montana, theoretically, you’ll be able to consume and purchase cannabis legally in 2021.

To many Americans, the end of cannabis prohibition in these states looks like a sudden act of voter mobilization. But industry insiders know it took years of work by activists, business people, and lawmakers to make legalization possible.

Before adults can legally purchase and consume cannabis, lawmakers in each state must outline rules and regulations, and dispensaries must go through intense licensing processes before opening their doors to the public. 

The process won’t happen overnight. 

In some newly legal states, it could take close to a year to iron out the details. And in the past, it’s taken even longer. 

Take Massachusetts, for example. Voters cast their ballots in favor of legalization in 2016, but the first dispensary didn’t open until 2018. 

Maine’s citizens also voted in support of legal weed in 2016, but it took four years for the first dispensary to open. The first two retailers – SeaWeed and Theory Wellness – opened on October 8 of this year. 

“It has taken four years to move from referendum to retail sales since Mainers narrowly approved the legalization of recreational cannabis at the ballot box in 2016. Legislative rewrites, gubernatorial vetoes, a change in state administration, and then the impact of COVID-19 pandemic have combined to make Maine’s rollout the slowest in U.S. history.” – Portland Press Herald 

Lawmakers in New Jersey are trying to speed things up. Democratic Senator Nick Scutari wants to move quickly to pass legislation modeled off a 2019 legal cannabis bill he sponsored. Still, legislators are fighting over the details. New Jersey’s Medical Marijuana licensing policies force applicants to pay large sums to compete for a limited number of licenses, allowing big businesses with deep pockets and holdings in other legal states to make millions. 

Some New Jersey lawmakers are trying to keep the same from happening when adult-use dispensaries open their doors by prioritizing local businesses.

Arizona lawmakers anticipate legal cannabis sales to begin as early as March. The state plans to prioritize licenses for owners “from communities disproportionately impacted by the enforcement of previous marijuana laws.” Arizona’s 123 medical marijuana dispensaries will have the first opportunities to apply for adult-use licenses in January after the Arizona Department of Health Services writes the rules. 

Entrepreneurs in South Dakota and Montana are ready to apply for dispensary licenses, but they, too, will have to wait.

In South Dakota, lawmakers say dispensaries will be open and selling legal adult-use cannabis by July 1. In Montana, people should be able to legally purchase cannabis on October 1, barring any bumps in the road. 

Have we reached a tipping point?

The public’s view of cannabis is changing. One in three Americans now live in a state with legal weed, and, according to a recent Gallup poll, 68% of Americans support federal cannabis legalization. So, have we reached a tipping point? 

That’s hard to say. 

Thirty-six states now have a legal medical cannabis system. When sales begin in Arizona, New Jersey, South Dakota, and Montana, more than twenty states will have fully legalized cannabis. And while federal cannabis reform might be a defining aspect of the incoming administration’s legacy, legalization is mostly dependent on congress, and it’s still unclear which party will control the Senate next year. 

Democratic leaders have pledged to end federal cannabis prohibition. If the Democratic party wins Senate control, full legalization is almost a certainty. But if Republicans maintain their Senate majority, the Republican party’s past approach to cannabis doesn’t indicate their leaders are ready to support far-reaching reform. Still, federal cannabis legalization isn’t outside the realm of possibility, even with a Republican-controlled Senate. 

Only time will tell. 

And again, regardless of what happens politically, it’s obvious America’s opinion of cannabis isn’t what it once was. 

Oprah asked former President Obama if he and Michelle indulged in “pizza, pot, or alcohol” on election night in a recent televised interview. When a television icon casually asks a former President if he smoked weed with the former first lady, you know attitudes are changing. 

Could federal cannabis legalization be the key to healing our COVID-ravaged economy?

This year, COVID-19 slowed the progress of cannabis legalization for individual states, but the pandemic could help push federal legalization forward next year. Here’s why.

A federally legal cannabis industry would accelerate America’s economic recovery.

The pandemic has had a catastrophic impact on many industries, and while a lot of employees will return to work, many jobs will be forever lost. The longer it takes for people to find employment, the longer it will take for the economy to recover. 

The end of federal cannabis prohibition would create thousands of new jobs and reverse the pandemic’s adverse economic impact. 

Here’s a point to consider: according to estimates from New Frontier Data, America’s legal cannabis market could be worth nearly $30 billion by 2025  – and that’s without federal legalization. If government officials choose to end federal prohibition next year, the estimates will increase dramatically. 

For cannabis dispensaries, cultivators, cannabis-adjacent businesses (like cannabis marketing agencies), and American citizens, a nationwide end to prohibition would be life-changing. 

But again, what the immediate future holds is anyone’s guess. 


Aaron Rosenbluth is Hybrid Marketing Co‘s Content Director, and he loves to write blogs. He’s written so many blogs that he’s lost count. And beyond his skills as a copywriter and storyteller, he’s an obsessive reader and researcher. Aaron writes on subjects ranging from cannabis to collaboration, social equity to HR software, interior design to cybersecurity. His words attract, engage, educate, and convert. Btw, Aaron hates the phrase “content is king” (even though content is king – and queen).

Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visit hybridmarketingco.com to learn more about the Hybrid approach. 

Election Night 2020: Victories For Sensible Cannabis Policies

by Morgan Fox, NCIA’s Director of Media Relations

While the country waits for the outcomes of national elections that could very well impact the future of cannabis policy reform advocacy, we do have a LOT to be happy about today!

Last night, adult-use and medical ballot initiatives SWEPT the elections, passing in every state in which they were considered!

Voters in Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults. South Dakota also approved a medical cannabis initiative by an even greater margin, and was joined by Mississippi where an overwhelming majority of voters not only supported medical cannabis but chose the much more comprehensive of two competing options.

You can learn more about these initiatives here and how they fared in the elections here.

There are a lot of important milestones and lessons to observe from these historic results.

First, let’s talk about New Jersey. Roughly two thirds of voters in the state approved this ballot measure, which was referred to them after lawmakers were unable to pass similar legislation last year. This is a big jump in ballot approval margins; before now, the most popular legalization referendum was in California, which approved Proposition 64 in 2016 with 57% of the vote. That’s a 10% margin increase in just four short years! The large population and huge market potential (more than $1.5B by 2025) are sure to have a major impact on the industry. Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island.

South Dakota also set a record by becoming the first state to approve an adult use law before having an established medical cannabis system, and in a very conservative state no less! Voters supported both medical and cannabis initiatives despite strong opposition from the governor and other officials.

In Arizona, after voters narrowly defeated a legalization initiative in 2016, a significant swing brought a 10% increase in support resulting in passage. This long-overdue change is especially important because Arizona is the only state where simple possession is a felony and nearly 15,000 people are arrested every year.

So what does this mean for future reform efforts?

First and foremost, the passage of the adult use initiatives means nearly 34% of Americans now live in states with laws making cannabis legal and regulated for adults. These four states account for roughly 60,000 marijuana arrests every year, mostly for simple possession. Congressional representation of states where cannabis is legal for adults will increase by 29 representatives and eight senators. This doesn’t guarantee their support for cannabis legislation, but it certainly increases the chances.

Second, passage of cannabis policy reform initiatives in conservative states like Mississippi, Montana, and South Dakota should send a signal to Republican lawmakers in Congress that this is an issue that they can support, and one which they will face political consequences for impeding. The fact that all three of these states had multiple cannabis-related issues on the ballot and voters were not swayed or confused is a testament to the will for change in these areas and a growing understanding of the issue.

Long story short: more and more states will continue to enact sensible, modern cannabis policies in the coming years, and every state that does so will help add to the chorus of voices from the public and in Congress calling for an end to outdated federal prohibition policies.

Cannabis State Ballot Measures – Facts & Figures

by Morgan Fox, NCIA’s Director of Media Relations

Arizona

Ballot: Proposition 207, Smart & Safe Act (adult use)

Summary: https://smartandsafeaz.com/about/

Full language: https://mk0adassociatioy1jbg.kinstacdn.com/wp-content/uploads/2019/10/I-23-2020.pdf

Main backers: Smart and Safe Arizona 

Possession: Adults 21+, 1 ounce flower or 5 grams concentrate

Home cultivation: YES, adults 121+ may have up to 6 plants in an enclosed locked location out of public view.

Licenses:   

  • Issue no more than one marijuana establishment license per 10 pharmacies;
  • Issue no more than two marijuana establishment licenses in counties that contain no registered nonprofit medical marijuana dispensaries;
  • Issue no more than one marijuana establishment license in counties with one nonprofit medical marijuana dispensaries; and
  • Issue 26 licenses, notwithstanding the other limits, to entities qualified under the Social Equity Ownership Program.

Social Equity:
Department of Health Services would be required to establish a Social Equity Ownership Program to promote cannabis business ownership and employment for individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.

Proposition 207 would establish a fund called the Justice Reinvestment Fund (JRF). Revenue in the JRF would be allocated as follows:

  • 35 percent to local public health departments in proportion to the county’s population for the purpose of providing justice reinvestment programs or giving grants to nonprofits to provide justice reinvestment programs within the county’s area.
  • 35 percent to DHS to provide grants to nonprofits to provide justice reinvestment programs in the state.
  • 30 percent to DHS “for the purpose of addressing important public health issues” that affect Arizona.

Taxes & Revenue:

Transaction Privilege Tax (currently 5.6%)

Specific 16% excise tax (non-medical)

Revenue from the excise tax and license fees would be deposited into the Smart and Safe Arizona Fund. First, revenue would be used to implement and enforce marijuana regulations. The remaining revenue would be allocated as follows:

  • 33.0 percent for community college districts;
  • 31.4 percent for municipal police and fire departments, county sheriff departments, and fire districts;
  • 25.4 percent for the state’s Highway User Revenue Fund;
  • 10.0 percent for the new Justice Reinvestment Fund; and
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Additional Resources: Proposition 7 InformationFAQ


Mississippi

Ballots: Initiative 65 (medical), Alternative 65A (medical, terminally ill patients only)

Summary:

Full Language:

Main Backers:

  • Initiative 65 – Medical Marijuana 2020
  • Alternative 65A – Rep. John Thomas “Trey” Lamar and Rep. Brent Powell

Possession:

  • Initiative 65 – Qualifying patients may purchase/possess up to two and a half (2.5) ounces every 14 days
  • Alternative 65A – Undefined, no explicit protections

Home Cultivation: NO

Licensing:

  • Initiative 65 – TBD by Dept. of Health; no limits on number of treatment centers; may not be located within five hundred (500) feet of a pre-existing school, church, or licensed child care center
  • Alternative 65A – Undefined

Social Equity: None explicitly included in either initiative.

Taxes & Revenue:

  • Initiative 65 – Dept. of Health may authorize taxes up to the level of the state sales tax (currently 7%); revenue to be used for special operating fund and may not revert to state general fund
  • Amendment 65A – Undefined
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Additional Resources: Overview and Sample Ballot Question – IMPORTANT! These questions are worded in a confusing manner on ballots.


Montana

Ballots: Initiative 190 Marijuana Legalization Initiative (adult use), CI-118 Allow for a Legal Age for Marijuana Amendment

Summary:

  • Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
  • Initiative 190 would regulate cannabis for adults age 21 and older.
  • Summary of both initiatives is available here.

Full Language:

Main Backers: New Approach Montana

Possession: Adults 21+, up to one ounce of flower or 8 grams of concentrate

Home Cultivation: YES, up to four (4) plants per adult, maximum eight (8) per household.

Licensing:

The Department of Revenue shall develop rules and regulations regarding licensing of providers, marijuana-infused products providers, and dispensaries for adult use. For the first 12 months, only existing medical cannabis licensees may apply. Provider licenses are established in tiers based on canopy size and also include micro-business licenses. Applicants must have resided in Montana for at least one year prior and may not have been convicted of a felony involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years. Cannabis businesses may not be located within 500 feet of a school or place of worship unless permitted by the local jurisdiction.

Social Equity: Persons convicted of behavior permitted by Initiative 190 may apply for resentencing or expungement.

Taxes & Revenue:

  • Specific sales tax – 20%
  • Revenue will be used to fund operating costs of regulation as well as to support conservation efforts, substance abuse treatment and education, veterans programs, local governments, the general fund, and other programs. More information is available here.
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Additional Resources: Initiative 190 Information


New Jersey

Ballots: Question 1, Marijuana Legalization Amendment (2020)

Summary: https://www.njcan2020.org/whats-on-the-ballot/

Main Backers: NJ Can 2020

Possession: 21+, limits TBD by Legislature

Home Cultivation: TBD by Legislature

Licensing: TBD by Legislature, regulated by existing Cannabis Regulatory Commission

Social Equity: TBD by Legislature

Taxes & Revenue: Standard state sales tax of 6.625%; Legislature can authorize municipalities to impose up to an additional 2% local tax

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Additional Resources: 


South Dakota

Ballots: Measure 26 (medical), Amendment A (adult use)

Summaries: https://www.southdakotamarijuana.org/the-initiatives

Full Language:

Main backers:

Possession: 

  • Measure 26 – Registered patients, up to three (3) ounces
  • Amendment A – Adults 21+, up to one ounce

Home Cultivation:

  • Measure 26 – Patients with home cultivation certification may grow 3 plants minimum or a number determined by their physician
  • Amendment A – 3 plants per person (6 max per household) in jurisdictions with no licensed retail stores

Licensing:

  • Measure 26 – TBD by Dept. of Health
  • Amendment A – TBD by Dept. of Revenue

Social Equity: None explicitly included in initiative language

Taxes & Revenue: 

  • Measure 26 – TBD by Dept. of Health and Legislature
  • Amendment A – 15% sales tax, split evenly between public school fund and state general fund after implementation and operation costs are covered.
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2020 Marijuana Ballot Initiatives – Time to Make History!

by Madeline Grant, NCIA’s Government Relations Manager

With the election coming up just around the corner, 2020 could be another big year for our movement. It is imperative that we all head to the polls, send in our mail-in ballots and make our voices heard in this monumental election. This week I will briefly go over each ballot initiative that has officially qualified for the November ballot. As we continue to get closer to the election, I will get into detail about what each ballot initiative does for each state. 2020 has been a year of uncertainty and as we approach the election it is our duty as U.S. citizens to get out and vote and as members of the cannabis industry, it’s important that we support the expansion of markets by donating to initiative campaigns. 

Without further ado please see marijuana ballot initiatives below:

  1. Arizona – Adult-Use: Smart and Safe Act (Prop 207)
  2. Mississippi – Medical: Initiative 65 
  3. New Jersey – Adult-Use: The New Jersey Marijuana Legalization Amendment
    • More information here.
  4. Montana – Adult-Use: I-190 would legalize, regulate, and tax marijuana in Montana. 
    • More information provided by the Marijuana Policy Project here.
  5. MontanaCI-118 would allow the minimum legal age for marijuana to be set at 21.
    • More information provided by the Marijuana Policy Project here.
  6. South Dakota – Medical- Initiated Measure 26
    • More information provided by the Marijuana Policy Project here.
  7. South Dakota – Adult-use (and protects medical law) Constitutional Amendment A 
    • More information provided by the Marijuana Policy Project here.
  8. Nebraska – Medical marijuana ballot initiative is no longer happening due to the Nebraska Supreme Court deeming the legalization of medical marijuana on the November ballot as unconstitutional. Following over 180,000 signatures by Nebraskans in support of the measure, the Supreme Court decided to not include the vote on November’s ballot on the day before the deadline. The justification of unconstitutionality came from Nebraska’s single-subject rule for a ballot measure, which bans multiple issues into yes-or-no questions for voters to address. 

It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform. 

Are you interested in any of these states or want to learn more about one of these ballot initiatives? If so, please feel free to reach out to me to set up a meeting to discuss the information in more detail or contact the campaigns directly to find out how you can support them. 

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