Cannabis Legalization: 5 States Poised for Change

Yesterday’s voting saw cannabis legalization succeed in all five states where it appeared on the ballot. In Oregon, already operating with legal cannabis, voters also passed measures concerning illicit drugs and the therapeutic application of psychedelic mushrooms.

Four of the five states voting on cannabis measures authorized the legal, recreational use of marijuana for adults aged 21 and over. Mississippi granted approval for medical applications, while South Dakota simultaneously approved both recreational and medical cannabis use.

This represents a significant opportunity for cannabis startups as they explore these emerging markets. Many businesses in this sector view each new state as a period of rapid growth, aiming to attract both consumers and commercial partners. However, establishing a presence will require time, as each state presents unique rules and regulations that cannabis companies must understand and comply with.

A decade ago, cannabis was prohibited nationwide throughout the United States. This began to shift in 2012 when Colorado and Washington voters approved recreational marijuana. Although it remains federally illegal, with these recent additions, approximately one-third of the American population will soon have legal access to cannabis.

New Jersey

New Jersey voters have authorized recreational cannabis, with implementation scheduled for January 1, 2021. The state legislature is now responsible for creating the guidelines and regulations for the consumer market.
New Jersey is the first state in the mid-Atlantic region to enact such legislation.

Montana

Montana voters approved a measure and constitutional amendment to legalize cannabis and establish an adult-use age of 21.
Montana residents will be permitted to possess, use, and cultivate marijuana starting at 12:01 a.m. on January 1, 2021.
Sales for recreational use are anticipated to begin in January 2022.

South Dakota

South Dakota voters made history by simultaneously legalizing both medical and recreational cannabis through a constitutional amendment and a ballot initiative.
Cannabis will remain illegal until July 1, 2021, at which point South Dakota residents can legally possess, use, and grow up to three plants.
Sales for medical use will commence on July 1, 2021.
The state has until April 1, 2022, to develop the necessary rules and regulations for the sale of recreational cannabis.

Arizona

Following the failure of a legalization bill in 2016, Arizona voters approved a proposition legalizing recreational cannabis.
The exact date when possession of cannabis will become legal is currently unspecified.
Retail sales may begin as early as April 5, 2021.

Mississippi

Mississippi voters approved medical marijuana through a ballot initiative.
The state is required to establish rules and regulations by July 1, 2021.

Oregon

Oregon became the first state to legalize the regulated medical use of psilocybin, a substance commonly found in psychedelic mushrooms.
Medical use will be implemented following a two-year development period.
Oregon voters also passed a measure to decriminalize small amounts of illicit drugs, treating offenses similarly to traffic violations.