Cannabis and the 2020 elections – where are we now?

In November 2020, residents in five states voted to legalize adult cannabis and / or medicinal cannabis, and a year later, only one state has made significant strides in getting sales up and running. In historic polls across the country, Americans voted for adult cannabis in Arizona, Montana, New Jersey, and South Dakota, and medicinal cannabis in Mississippi and South Dakota. In fact, South Dakota was the first state where residents voted for adult legalization of cannabis and medicinal cannabis at the same time.

After nearly 12 months, Arizona is the only one of the four states that voted to legalize adult cannabis where sales began. New Jersey has been lagging in regulatory and application processing delays, while Montana lawmakers have just passed a “workable” adult medical measure, and South Dakota remains awaiting a state Supreme Court ruling on a lawsuit alleging becomes that his legalization law is illegal.

At the same time, South Dakota lawmakers have reluctantly pushed ahead with the implementation of the medical cannabis program, and Mississippi lawmakers continue to delay the start of the state’s program.

Let’s take a closer look at each of these states to see what residents voted on in November 2020, what it looked like three months after the election, and what they look like today.

Arizona

Adult cannabis sales began in Arizona on January 22, 2021 – less than three months after residents voted to legalize recreational marijuana in November 2020. Initially, 73 of the state’s 131 medical cannabis companies were licensed for adult use. In the first 10 days of launch, adult cannabis sales in the state reached $ 2.9 million.

At the same time, the 131 existing businesses that were vertically integrated by law were allowed to apply for a second cultivation license. This means that a company with a medical cannabis license can have one off-site grow facility, and if that company is licensed for adult use, it can have a second off-site facility. The cultivation licenses have no square footage caps.

In April 2021, the state issued a further 13 licenses for use by adults in a lottery with 400 applicants. These licenses provided additional access to consumers in eight rural counties. Another 26 adult retail licenses will be awarded to social justice applicants in early 2022.

Mississippi

The Mississippi State Supreme Court ruled in May 2021 that the November 2020 resident legalization initiative to legalize medical cannabis was illegal because supporters only collected signatures from four congressional districts of the state, not the five legally mandated. Unfortunately, as of the 2000 census, Mississippi only had four congressional districts.

Therefore, it was up to the Mississippi Legislature to pass a law introducing the program in the state. Unfortunately, lawmaker and Governor Tate Reeves have yet to reach an agreement on this law, and a special session to legalize medical marijuana is repeatedly delayed.

Montana

Montana Governor Greg Gianforte signed House Bill 701 on May 19, 2021, which legalized the sale of cannabis by adults in a watered-down version considered by industry insiders to be toned down and inconsistent with what residents were on for Voted in Initiative 190 on November 3, 2020.

The law that was signed saw, for example, a postponement of the sales start date to the 1st and a reduction in home-growing from four to two plants per person.

In addition, the Ministry of Finance is responsible for the supervision and rulemaking process. The new adult use program will also allow for horizontal surgery rather than requiring vertical integration, as was the case with the state’s medical cannabis program.

New Jersey

New Jersey residents voted to legalize adult cannabis in Garden State on November 3, 2020, and lawmakers passed a law regulating and introducing the adult market on December 17, 2020. It was another two months before Governor Phil Murphy signed the February 22, 2021 bill.

The first set of rules was only published on August 19, 2021. These rules favor local entrepreneurs rather than the multiple state operators who hold most of the state’s existing medical cannabis licenses. The law also allows 37 new breeders (who must be licensed before February 2023) and an unlimited number of manufacturing, wholesale, distribution, retail and supply licenses. In addition, micro-businesses do not count towards licensing restrictions and social justice applicants are prioritized in the licensing process.

Remember, these rules are the rules required for the August 2021 regulatory deadline set out in the law signed by Governor Murphy. They are not the complete or final rules, so changes can still be made.

The next deadline the state cannabis regulatory commission had to meet by law was September 18, 2021. By that time, the commission should have started accepting new cannabis business license applications, but regulators missed that deadline.

The law also states that within 12 months of the law being signed, the commission must select the date when legal sales will begin. Since the deadline for accepting license applications was missed, a sales launch date in February 2022 is unlikely. Instead, sales are expected to begin in spring 2022, but the date has not yet been set.

South Dakota

In the November 2020 elections, residents voted in favor of Action 26, which legalized medical cannabis, and Amendment A, which legalized adult cannabis. Almost a year later, no program has been started.

The adult-use market was challenged in court by opponents supported by Governor Kristi Noem, and a District Court judge appointed by Governor Noem ruled that the voter-approved change was unconstitutional. The South Dakota Supreme Court has yet to rule on this matter.

Meanwhile, the Legislature Subcommittee on Adult Cannabis has decided to push legalization on October 19, 2021. Next, the entire Marijuana Studies Subcommittee must decide whether or not to proceed with the proposed bill. If so, they would need to get the approval of the Legislative Executive Committee for the law to be introduced in the 2022 session.

Once the bill enters the 2022 legislature, it would have to go through standard committee actions and eventually be put to a vote in the House and Senate of the state. Keep in mind that Governor Noem is against legalizing adult cannabis and will likely veto such legislation. The only way to overturn their veto is to get a two-thirds majority in both the House of Representatives and the Senate.

Unsurprisingly, signatures are already being collected to put another initiated measure to legalize adult cannabis use on the ballot for the 2022 general election. This would be a state law if it were more likely to enact an amendment to the state constitution that the district court judge ruled against.

Regarding the state’s medical cannabis program, the law passed by voters in November 2020 stipulates that the rules must be enacted by October 29, 2021, and the South Dakota Department of Health by November 18, 2021 with the issuance of medical ID cards must begin. The Problem This bill is inconsistent with what residents voted for when they supported Measure 26 that was under way.

What’s next?

While things were moving fast in Arizona, adult cannabis programs are being adopted much more slowly in New Jersey. Montana is nearing the development of an adult program and South Dakota is barely holding out. On the medical side, South Dakota is doing a little better and Mississippi will eventually make it. Patience is the order of the day.

Do you want to keep an eye on all of the new licenses that are being rolled out in these states, as well as in the US, Canada, and international markets? Schedule a Demo of the Cannabiz Media License Database!