In a historic election for hashish, 5 totally different states voted to legalize hashish!

In this particular version of our ongoing Cannabis Regulation Watch, we’ll break down the outcomes of hashish legalization efforts on this yr’s historic election.  We can be reviewing the outcomes from state proposals in Arizona, Mississippi, Montana, New Jersey, and South Dakota.

Read on for the hottest election outcomes, and an evidence for what the principles and rules can be in these newly hashish pleasant states.

Mitch Kraemer, Market Research Analyst

This report was ready by Mitch Kreamer, Market Research Analyst at Cannabis Real Estate Consultants. Reach out with questions, our devoted compliance staff and professional actual property brokers will assist you make the most of these newly open markets!

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Statewide Proposal Results for Cannabis Legalization

The hashish business was profitable all through the United States on Election Day!

The hodge podge of state hashish legalization continued on election day, with all pending initiatives passing, however every of them that means one thing totally different for the business and the customers that help the business.

It is now estimated that the hashish business is presently in extra of $12 billion in retail gross sales with $9 billion of further progress anticipated within the subsequent 24 months as new states come on-line and present authorized states broaden operations.

The following is a fast abstract:

  • Arizona – expanded its medicinal solely business to now embrace leisure with a 16% excise tax on all retail gross sales.
  • Mississippi – legalized medicinal use, whereas leisure stays unlawful. The accredited poll measure recognized 20 totally different medical situations and capped affected person possession to 2.5 ounces of flower at one time.
  • Montana – accredited leisure use whereas capping possession to 1 ounce of flower or eight grams of focus.
  • New Jersey – after the state legislature didn’t approve legalization, voters accredited leisure in all vertical classes together with cultivation, processing and retail.
  • South Dakota – Voters in South Dakota accredited an modification to their state structure legalizing leisure hashish and the state legislature has till April 1, 2021 to move legal guidelines supporting this election. Local jurisdictions are supplied with the flexibility to proceed to ban hashish inside their metropolis/county.


Read the small print of every state’s regulation updates under:


Arizona – Proposition 207 Marijuana Legalization Initiative

Proposition 207  legalizes leisure hashish possession and use for adults over the age of twenty-one in Arizona.  Individuals can be allowed to own as much as one ounce of hashish, as much as 5 ounces of hashish focus and are  permitted to develop as much as  six marijuana crops of their residences, so long as the crops are inside a lockable enclosed space and past public view.  Local governments could have the facility to resolve whether or not to permit hashish companies of their cities, with an choice to ban business makes use of outright within the metropolis in addition to establishing native regulation, zoning, and licensing guidelines.

The Arizona Department of Health Services can be accountable for growing a algorithm and rules for business makes use of, together with the licensing of marijuana retail shops, cultivation amenities, and manufacturing amenities.  Those hoping for fast entry to supply hashish must wait a bit of longer, as Proposition 207 requires that the DHS wait till not less than January 1st, 2023 to manage and allow supply, with a ultimate deadline to determine a program by January 1st, 2025.

DHS can be required to limit the early entry utility interval to present nonprofit medical marijuana dispensaries, which might be eligible to carry each nonprofit medical marijuana and for-revenue marijuana licenses, in addition to potential marijuana companies inside counties which have one or zero nonprofit dispensaries.  This early utility interval can be open between January 19th, 2021 and March ninth, 2021.  After the early entry interval, the division will make remaining accessible licenses by way of a random choice course of that can be publicized not less than sixty days previous to the start of the choice.

The Department of Health Services can be restricted to issuing not more than two marijuana institution licenses for each county with no nonprofit medical dispensary, and one license per county with a registered nonprofit medical dispensary.

Proposition 207 additionally goals to help low-earnings and minority communities by establishing a Social Equity Ownership Program (SEOP), which might reserve hashish licenses for candidates whose house owners are “from communities disproportionately impacted by the enforcement of previous marijuana laws.” Anyone convicted of sure marijuana-associated crimes associated to possession, consumption, cultivation, and transportation will be capable of petition for the expungement of their felony document beginning on July 12, 2021.

Proposed Tax Rates: Proposition 207 would place a 16 % tax on marijuana gross sales, along with the present transaction privilege tax and use tax, and break up the proceeds between supporting local people schools, municipal police, sheriff, and fireplace departments; fireplace districts; the state’s Highway User Revenue Fund, and a brand new Justice Reinvestment Fund.

Results: Proposition 207 Passes 59.85% to 40.15%

Links: Click here for the full text of ballot initiative 207.


Mississippi voters had two separate medical marijuana poll initiatives to contemplate this election, with each initiative 65 and Alternative 65A making medical marijuana packages accessible for sufferers affected by debilitating medical situations.

Voters had been requested first to decide on whether or not or not they need both initiative to move, and had been then requested to resolve which of the 2 proposals they wish to help.

Initiative 65  

While each proposals would set up an authorized framework for medical marijuana, well being and hashish business advocates closely favored Initiative 65 because it gives instant qualification for this system to sufferers affected by  not less than considered one of  22 specified qualifying situations together with most cancers, epilepsy or seizures, Parkinson’s illness, publish-traumatic stress dysfunction (PTSD), Crohn’s illness, HIV, and extra.  Initiative 65 additionally gives a framework for lawmakers to approve of further medical therapies to be included sooner or later.

The initiative permits sufferers to own as much as 2.5 ounces of medical marijuana at any time, taxes medical marijuana as much as the state tax charge of seven%. Under the measure, no medical marijuana remedy heart will be positioned inside 500 ft of a faculty, church, or little one-care institution.  Zoning provisions relevant to retail dispensaries shall be no extra restrictive than these for a licensed retail pharmacy. The guidelines and rules shall not restrict the variety of licensed medical marijuana remedy facilities nor set the worth of medical marijuana.

The Mississippi Department of well being can be in command of growing the principles and rules for the medical marijuana program by July 1st, 2021 and units a deadline off August 15th, 2021 to start issuing medical marijuana playing cards to sufferers.

Alternative 65 A

Alternative Initiative 65A alternatively, didn’t specify which situations could be coated by this program, resulting in worries that many medical sufferers coping with sever debilitating situations could be ignored of this system.  Additionally, Initiative 65A restricts the flexibility of medical sufferers to smoke hashish merchandise to terminally unwell sufferers,  fails to specify pointers for the quantity of medical marijuana sufferers can possess or the speed at which it is going to be taxed, and gives no timeline for when sufferers would be capable of achieve entry to medical marijuana remedy.

Results: Initiative 65 Passes 67.89% to 32.11%

Links: Click here for additional information on the variations between these two proposals and for the entire textual content of the proposition.


Montana – Initiative 190, Marijuana Legalization Initiative

Initiative 190 legalized the possession and sale of hashish merchandise for leisure use for all adults over the age of 21.  People within the state could be allowed to own as much as one ounce of hashish or eight grams of hashish focus and allowed to domesticate as much as 4 crops and 4 seedlings in a single’s non-public residence starting on January 1st, 2021.

The Montana Department of of Revenue can be accountable for growing rules for hashish cultivation, manufacturing, transportation and gross sales within the state and start accepting purposes for licenses no later than October 1st, 2021.  Initiative 190, permits native authorities the facility to additional regulate native hashish companies by way of native ordinances and resolutions.

A licensed grownup-use supplier or grownup-use marijuana-infused merchandise supplier could: function grownup-use dispensaries; and have interaction in manufacturing; make use of workers to domesticate marijuana, manufacture marijuana concentrates and marijuana-infused merchandise, and dispense and transport marijuana and marijuana-infused merchandise.

The state plans on providing a range license sorts permitting cultivation starting from grows as small as 250 sq. ft, to largest license sort permitting a cover of as much as 30,000 sq. ft at as much as seven registered premises.

No marijuana enterprise can be allowed inside 500 ft of and on the identical avenue as a constructing used solely as a church, synagogue, or different place of worship or as a faculty or postsecondary college apart from a commercially operated college, except the locality permits for a lowered distance.

Under Initiative 190, folks serving marijuana-associated sentences which can be now not crimes beneath the initiative or have a lesser punishment may request to be re-sentenced or have their conviction expunged relying on the circumstances of their case.

Tax charge: Marijuana and marijuana-infused product gross sales could be taxed at 20% of the retail worth. After deducting any administrative prices incurred by the division to implement the initiative, the tax income could be allotted to the overall fund, conservation packages, veterans packages, drug dependancy remedy packages, native authorities implementing the initiative, and healthcare staff.

Results: I-190 Passes 56.58% to 43.42%

Links: Full Ballot Measure Text


New Jersey – Public Question 1, Marijuana Legalization Amendment

Public Question 1 legalizes the possession and use of marijuana for individuals age 21 and older and legalizes the cultivation, processing, and sale of retail marijuana starting on January 1st, 2021, making it the primary state within the mid-Atlantic area to legalize leisure hashish use.

The 5-member Cannabis Regulatory Commission (CRC), which was first established to supervise the state’s medical-marijuana program, can be accountable for regulating the cultivation, processing, and sale of leisure marijuana and can set pointers for extra specifics, comparable to possession limits, house-develop guidelines, and retail rules.

Tax Rate: Question 1 would apply solely the present state gross sales tax of 6.25% of gross receipts to leisure marijuana purchases and would prohibit further state gross sales taxes. The state Legislature could be approved to permit native governments to enact further native sale tax charges solely as much as 2%, which provides New Jersey by far the bottom tax charge of any state to legalize leisure hashish use.

Result: Public Question 1 Passes 66.94% to 33.06%

Link: Full Ballot Measure Text


South Dakota – Constitutional Amendment A, Marijuana Legalization Initiative and Initiated Measure 26, Medical Marijuana Initiative.

South Dakota residents voted on two separate poll proposals this week, turning into the primary state to vote on each medical and leisure marijuana proposals on the similar time.  Initiated Measure 26 decided if the state ought to create a medical marijuana program for sufferers with debilitating situations and Constitutional Amendment A determined whether or not or to not legalize the possession and sale of hashish for adults over the age of twenty one.

Initiated Measure 26

Under Initiated Measure 26, residents with a qualifying medical situation outlined as “a chronic or debilitating disease or medical condition or its treatment that produces one or more of the following: cachexia or wasting syndrome; severe, debilitating pain; severe nausea; seizures; or severe and persistent muscle spasms, including those characteristic of multiple sclerosis.”   Under the measure, the Department of Health retains the flexibility to approve further qualifying situations for inclusion within the Medical Marijuana Program.

Under the measure, sufferers could possess a most of three ounces of marijuana and sufferers registered to domesticate marijuana at house may develop three crops at minimal, or one other quantity as prescribed by a doctor.

The measure legalizes marijuana testing, manufacturing, and cultivation amenities, in addition to marijuana dispensaries. These institutions should register with the Department.  The measure would require the Department of Health, no later than 120 days after the efficient date of the initiative, to enact guidelines associated to implementing South Dakota’s medical marijuana program, offering an efficient begin date of October 29, 2021.

Result: Initiated Measure A Passes 69.21% to 30.79%

Link: Full Ballot Measure Text

Constitutional Amendment A

After the passage of Constitutional Amendment A, Individuals can be allowed to own or distribute as much as one ounce of leisure marijuana within the state of South Dakota.  Individuals who stay in a jurisdiction with no licensed retail shops can be allowed to  domesticate as much as three marijuana crops every in a personal residence in a locked house, although no more than six marijuana crops in whole will be stored in a single residence at a time.

The measure requires the Department of Revenue to undertake guidelines and rules to implement the modification together with the issuance of licenses, well being and security necessities, and extra.  Under the modification, an area authorities may set native pointers for marijuana cultivators, testing amenities, wholesalers, or retail shops  and even ban them from working in its limits, however cannot prohibit the transportation of marijuana on public roads in its jurisdiction by those that are licensed to take action.

The measure approved the Department of Revenue to create 4 licenses sorts:

  • licenses for business cultivators;
  • licenses for testing amenities;
  • licenses for wholesalers to package deal, course of, and distribute marijuana to retail gross sales retailers; and
  • licenses for retail shops to promote marijuana.

The modification doesn’t legalize hemp;  nevertheless it requires the Legislature to move legal guidelines regulating the cultivation, processing, and sale of hemp by April 1st, 2022.

Tax Rate: Under the modification, marijuana gross sales could be taxed at 15% with an choice for regulators to regulate the speed after November third, 2024. After the tax income is used by the Revenue Department to cowl prices related to implementing the modification, 50% of the remaining income could be appropriated to fund state public colleges and 50% could be deposited within the state’s common fund.

Result: Constitutional Amendment A Passes 53.41% to 46.59%

Link: Full Text of the proposal can be found here.


CREC is the main brokerage and compliance agency closing hashish transactions all through the United States. Contact us to seek out out extra in regards to the new guidelines and rules within the United States, and we’ll assist you get forward of the competitors and discover viable properties in these new thrilling markets!


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