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Three States May Legalize Adult-Use This November

North Dakota ballot measure approved

Maria Brosnan by Maria Brosnan
9 months ago
Reading Time: 5 mins read
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Voters in three states will decide whether to legalize adult-use cannabis this November now that the North Dakota Secretary of State has approved a statutory ballot measure.

Assigned as Measure 5, the proposal put forward by New Economic Frontier would legalize cannabis possession, production, processing and sales in North Dakota. Adults 21 and older could possess up to one ounce of cannabis, 4 grams of cannabis concentrate, 1,500 mg of an “adult use product,” and 300 mg of edible lozenges. Adults can also grow up to three plants.

The ballot measure qualified Aug. 12. Out of the 22,384 signatures submitted by New Economic Frontier, a total of 18,964 were accepted, more than 3,000 above the necessary signatures to qualify, according to a press release from Secretary of State Michael Howe.

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This will be the third time voters will consider legalizing adult use after rejecting ballot measures in 2022 and 2018. The House of Representatives approved a bill in 2021, but it was defeated by the Senate.

And the measure reportedly still has a steep hill to climb. Marijuana Moment reported that a recent poll found only 43% of voters approved it.

Steve Bakken, chairperson of New Economic Frontier and a Burleigh County commissioner, told CRB Monitor News that he believes the measure will pass this time because it’s “much more conservative, much more restrictive.”

He said past measures were initiated by out-of-state organizations. Measure 5’s language, with some of it coming from the Department of Health and other agencies, was carefully written to align with the North Dakota state constitution and give the state legislature and regulators the “utmost control” over licensing and taxation.

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Additionally, with adult-use markets already legal in neighboring Montana, Minnesota and Canada, “We wanted to make sure we’re putting together a measure that helps law enforcement enforce illegal trafficking,” he said.

Measure 5 has the support of state Rep. Matt Ruby. “Our goal now is to educate voters on why we believe this to be a great step forward for our state,” he said in a statement. “We’re focusing on three key areas: economic growth, more effective regulation, and less barriers to medical cannabis.”

Medical use was approved by voters in 2016. There are currently 11 active business licenses, including 8 dispensaries, two cultivators and one testing lab, according to the CRB Monitor licensing database.

The proposal would allow medical businesses to become licensed for adult-use, but they would not have priority. Total licenses would be limited to seven manufacturing facilities and 18 dispensaries. Individual owners would be limited to one manufacturing facility and four dispensaries, with only one within 20 miles of another dispensary. The program would be required to start no later than Oct. 1, 2025.

The measure includes bar-coded track and trace requirements. But it does not mention any tax.

So far, the biggest financial supporters are existing medical cannabis businesses, which have donated more than $287,000 to the campaign, according to the North Dakota Monitor.

Bakken said the medical industry has been a big contributor to the campaign, which he said was ironic given that there’s no guarantee they will be licensed for adult-use sales.

“Their support of a free market is very encouraging,” Bakken said.

South Dakota’s adult-use measure won’t open sales

North Dakota’s southern neighbor is also considering a legalization measure that would allow residents to possess and grow more adult-use cannabis, but it won’t create a regulated market.

Measure 29 in South Dakota would legalize possession, use, processing and transport of cannabis. Adults over age 21 can possess up to 2 ounces of cannabis, 16 grams of concentrate or extracts, and products containing up to 1,600 mg of THC. Cultivation of up to six plants per person, 12 plants per household, will be allowed.

It will also be the third time South Dakotans would decide whether to legalize adult use. It was approved in 2020, but then successfully challenged in court. However, medical cannabis was legalized that year. There are 146 active medical cannabis businesses as of Aug. 5, according to the CRB Monitor database. Advocates tried again in 2022, but voters rejected it.

Florida measure is politically hot

But when it comes to full legalization, most of the media, political and donor attention is on Florida, which has a constitutional amendment on the ballot that former president and current presidential candidate Donald Trump indicated he may vote for.

The language in Amendment 3, submitted by Smart & Safe Florida, is pretty simple. It would allow people over age 21 to possess up to 3 ounces of marijuana, with no more than 5 grams in the form of concentrate. Current Medical Marijuana Treatment Centers and other licensees would be allowed to acquire, cultivate, process, manufacture, sell and distribute marijuana products for personal use.

But there’s no guarantee that the market would be opened to new businesses. The amendment language states the “legislature may provide for the licensure of entities thar are not Medical Marijuana Treatment Centers.”

Gov. Ron DeSantis is staunchly against adult-use legalization and vetoed a restrictive hemp bill with the hope more money would be donated to the Republican Party of Florida and the Florida Freedom Fund to oppose the measure.

At least one Florida hemp company, POB Ventures, doing business as Chronic Guru, has contributed $100,000 to the Florida Freedom Fund. Its owner, Patrick O’Brien, reportedly said that he isn’t opposed to adult-use legalization. Rather, he objects to the ballot language because it doesn’t guarantee more licenses to allow non-medical marijuana dispensary owners not currently operating in the state to enter the market.

Passage of the amendment looks like it will be a close call. Three polls have showed voter support above the 60% approval that is required to pass, but one did not, reported Marijuana Moment.

If it is approved, it will take effect six months after the election, or in May 2025.

Florida’s medical licensing regime is different from most other states. It issues vertically integrated licenses to operators rather than to individual businesses. There are currently 24 active vertically integrated licensees and nine lab licenses, according to the CRB Monitor licensing database.

Trulieve Inc., which has donated more than $60 million to the Smart & Safe Florida campaign so far, operates 142 dispensaries in the state, nearly twice as many as number two operator MUV, which has 77 dispensaries under the license for Plants of Ruskin. There are currently 661 approved dispensaries as of Aug. 8, according to Florida’s Office of Medical Marijuana Use’s weekly update.

Keep up with all the news impacting the regulated cannabis market with the CRB Monitor weekly news digest. Subscribe now.
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Maria Brosnan

Maria Brosnan

Maria Brosnan brings to CRB Monitor more than 20 years of experience in financial journalism, marketing and communications. She began covering the cannabis industry during the early days of medical marijuana legalization as editor of The Marijuana Business Report for DealFlow Media. As editor of CRB Monitor News, she covers cannabis legislation, regulation and litigation while managing news content.

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