2016 – Year of the Legalization of Cannabis
In 2016, US elections. UU. They resulted in a green wave when cannabis legalization measures were approved in eight of the nine states.
Now, the industry and its followers expect another great victory in November.
This year, five -states voters will decide whether they adopt new laws on medical or recreational cannabis or, perhaps, both in the case of a state.
As is now, 33 states have legalized medical cannabis, and of them, 11 states have legalized cannabis for recreational use of adults.
If more states join that list, it could be a great opportunity for industry growth, since legalization supporters believe that successful electoral initiatives could have a domino effect in other states, especially those who seek to address problemsBudget and Social Justice.
"We have seen that public support continues to grow every year," said Karen O’Keefe, director of State Policies of the Marijuana Policy Project, the legalization defense group that supports several of the measures.
Cannabis sales in states that have legalized the plant for medical and recreational purposes totaled around $ 15 billion in 2019, and it is expected to exceed $ 30 billion by 2024, according to data from BDS Analytics, which tracks salesof dispensaries.
Below is a look at the five states that voted on legal cannabis this November.
- Arizona
Four years ago, residents in the state of the Grand Canyon defeated little an initiative to legalize recreational cannabis. Failed for less than 67.100 votes, and 51.3% of voters said no.
The 2016 measure was very disputed, attracting a total of $ 13 million of high profile donors such as the DR soap company. Bronner’s, who was in favor of the measure, and opponents such as the multimillionaire tycoon of the Sheldon Adelson casinos, the Discount Tire tire retailer and pharmacist. INSYS COMPANY.
This time, sponsors of the recreational cannabis initiative include some of the most important names in the US cannabis business. UU., An industry that has matured significantly for the last four years. State election financing records show that taxpayers who support proposition 207 include cannabis producers and retailers in several states, such as Harvest Health & Recreation (HRVSF), based in Tempe, Arizona, and companies such as Curaleaf (Curlf) andCRESCO LABS (CRLBF), which have crop operations and retail sale in the Arizona Medicinal Cannabis Industry.
There are still governor Doug Ducey, the Chamber of Commerce of Arizona and Smart Approaches to Marijuana, a national organization that opposes the legalization and marketing of cannabis.
For the most part, Proposition 207 is structured similarly to the 2016 measure. It would allow adults over 21 years to possess, consume or transfer up to 1 ounce of cannabis and create a regulatory system for the cultivation and sale of products. Some key differences with the new measure include the addition of social equity provisions and reforms of criminal justice, such as the elimination of criminal records.
According to estimates of the publication of the Marijuana Business Daily industry, recreational sales in Arizona could total between $ 700 million and $ 760 million for 2024.
- New Jersey
When Governor Phil Murphy was chosen in 2017, he promised to fulfill a campaign promise to legalize cannabis. At that time, he told the Star-Ledger of New Jersey that the legalization could be a blessing of $ 300 million for the state coffers, but that the main reasons for legalization would be for social justice purposes: review the old laws ofdrugs that disproportionately criminalized people in color.
However, legislative efforts to legalize failed to obtain enough support. Legislators finally decided to take another path and present the measure to voters.
If approved, the public question does not. 1 would legalize cannabis for adults over 21 years. The program will be regulated by the same commission that supervises the medical cannabis businesses of New Jersey, and recreational cannabis products would be subject to the State Sales Tax (currently 6.625%).
According to initial estimates, the New Jersey recreational cannabis market could be considerable. Marijuana Business Daily sets annual sales between $ 850 million and $ 950 million by 2024, but a successful initiative is more important outside the New Jersey borders. The approval of recreational cannabis in New Jersey could accelerate legislative efforts in neighboring New York and Pennsylvania.
- South Dakota
In general, states have legal medical cannabis programs before adopting laws on recreational cannabis.
South Dakota could implement medical and recreational programs at once.
Voters in Dakota del Sur will make a decision on measure 26, which would establish a medical cannabis program and a registration system for people with conditions that qualify, as well as on amendment A, which would legalize cannabis for all adults and requirethat state legislators adopt cannabis and medicinal hemp.
The South Dakota Legislative Research Council projected that amendment A could result in $ 29.3 million in fiscal income for fiscal year 2024 of the State. Sales estimates were not yet available, according to the Marijuana Policy Project, which is helping with the South Dakota campaign.
- Mountain
Montana voters will also see two cannabis initiatives on their tickets.
The issuance of the I-190 electoral ballot would allow adults in the state to possess, buy and use cannabis for recreational use. A separate initiative, CI-118, would establish 21 years as the legal age to buy, possess and consume cannabis.
If approved, the I-190 would establish a 20% tax on recreational cannabis, with more than half of the tax collection in the General State Fund and the rest assigned to programs such as the application of the law, the treatmentfor substance abuse and services for veterans. The measure would also allow people to serve a sentence for certain acts related to cannabis request a new sentence or the elimination of criminal record.
According to a fiscal analysis, the State hopes that recreational cannabis sales total almost $ 193 million in 2025, generating $ 38.5 million in fiscal income.
- Mississippi
In Mississippi, there are two competence measures to legalize cannabis for medical purposes.
Initiative 65, which resulted from a citizen petition, would allow doctors to recommend medicinal cannabis for patients with any of the 22 qualified conditions such as cancer, multiple sclerosis and posttraumatic stress disorder. The constitutional amendment would establish a regulatory program for companies to cultivate and sell medicinal cannabis and for products to be taxed with a 7% rate.
According to Mississippi’s law, the legislature has the option of amending or writing an alternative measure, and that is what he did here through the 65A initiative. Competence measure requires medical products of pharmaceutical quality, limits the consumption of medical cannabis to people with terminal diseases and leaves the future creation of rules and a regulatory framework to the legislature.
Marijuana Business Daily officials said that if initiative 65 is approved, medical sales could total $ 750 million and $ 800 million by 2024.
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