Cannabis legislation in the USA

Northeastern United States

New York State

In 2014, New York State legalized medical cannabis.

Following this, several attempts to legalize its recreational use by adults have been unsuccessful. Why? The reasons for this impasse are numerous. Here, we will mention only one. Indeed, the state’s leaders are struggling to agree on the distribution of tax revenues related to the legal distribution of cannabis.

Nevertheless, two major reasons will force them to revisit the issue of legalizing recreational cannabis use. What are they? On the one hand, New York State is facing a budget deficit ($15 billion) following the COVID-19 pandemic. On the other hand, the neighboring state of New Jersey is making significant progress in this direction. Therefore, it could potentially obtain all the revenues related to the sale of recreational cannabis. “If New York doesn’t legalize, it’s missing out on a huge opportunity,” says Rob DiPisa, co-chair of Cole Schotz’s cannabis law group. “New Jersey will get this influx of customers from New York, and it’s just that New York is losing tax revenue they can’t afford to lose,” he adds. New Jersey’s adult-use market is projected to reach nearly $1 billion in annual sales by 2024. Marijuana Business Daily projects that a New York adult-use market could eventually become the largest on the East Coast. It could generate $2.3 billion in annual sales as early as its fourth year.

The benefits of this legalization would extend even beyond simply addressing the budget deficit. On the one hand, jobs will be created, as new businesses in this sector will emerge. On the other hand, it would allow for the development of projects for communities affected by the war on drugs. In this regard, Cuomo, in a press release, envisioned a structure offering “licensing opportunities and assistance to entrepreneurs in communities of color that have been disproportionately impacted by the war on drugs.”

The residents of this state are simply hoping that this movement doesn’t change course. There is very little room for doubt that it won’t work. Several influential figures have already spoken out on the subject.

State of VermontThe state of Vermont stands out from others thanks to its cannabis legalization process. Indeed, while other states (primarily) use referendums to legalize this substance, Vermont opts for a legislative process. Phil Scott, Governor of the state in 2018, signed the bill legalizing cannabis use. The law came into effect on July 1st of the same year. The Governor commented on the matter, saying:

“I personally believe that what adults do at home is their choice, as long as it doesn’t negatively affect the health and safety of others, especially children.”

The creation of cannabis dispensaries This decision follows. In this context, home cultivation is permitted, but under certain conditions. First, the individual cultivating the plants must be an adult (over 21 years old). Second, the number of plants is limited to two flowering plants and four vegetative plants per household. Regarding possession and consumption, the maximum quantity is 28 grams. Exceeding these limits is punishable by a $200 fine. Furthermore, the law permits the possession of accessories used for cannabis consumption. These include, for example, bongs, pipes, and vaporizers.

In the Western United States

State of Colorado

On November 6, 2012, the State of Colorado legalized the use of small quantities of cannabisby referendum. The latter was accepted by 53.25% and took effect on January 1, 2014. From then on, cannabis for recreational and medicinal use was legal. Individuals over the age of 21 could possess up to 56 grams of the substance. However, consumption in a public place was prohibited. Furthermore, cultivation was limited to 6 plants (3 of which could be flowering plants).

State of Nevada

TheState of Nevada, in a referendum held on November 8, 2016, accepted the legalization of cannabis for recreational use by 54%. Later, the legalization of cannabis for medicinal use followed. However, each came with very specific restrictions. On the one hand, it was prohibited to consume this substance in the street (or in any other public place). On the other hand, the sale of cannabis to minors was strictly prohibited.State of California

On November 8, 2016, the

State of CaliforniaCalifornia, by referendum with 56% approval, legalized recreational cannabis. Medical cannabis has been legal since 1996. Following this referendum, a law passed in 2018 authorizing the production, consumption, and sale of cannabis. This has propelled California into the ranks of the world’s largest cannabis markets. In the Midwestern United States, the state of Michigan lagged behind other states in legalizing cannabis. It legalized the substance in 2018, and sales officially began in 2019. However, the primary distribution points for cannabis are dispensaries. However, it should be noted that, although legalization occurred in 2018, dispensaries had already been authorized to use cannabis for therapeutic purposes since 2008. In this regard, patients could cultivate 12 plants and possess up to 70 grams.

State of Illinois

Illinois legalized medical cannabis in 2013.

Later, in 2019, recreational cannabis became legal. Governor J.B. Pritzker promised to legalize cannabis during his campaign. Once in office, it became a reality. The state legislators approved the bill legalizing the substance. This law includes two main taxes: one of 10% for products containing 35% THC, and the other of 25% for those with a THC content of 20%. This law expands the scope of medical cannabis, which began in 2013. Now, each patient can cultivate up to five cannabis plants. However, cultivation remains prohibited for healthy individuals, but is decriminalized. Violators will be required to pay a fine ranging from $100 to $200.

State of Ohio The State of Ohio legalized medical cannabis in 2016

Various attempts to legalize recreational cannabis have been unsuccessful. The most recent was rejected by the Ohio Attorney General’s office. He justified the decision as follows:

“Because your submission did not contain verified signatures from at least 1,000 eligible voters, we must reject it.”

In the far Northwest of America

State of Alaska

The State of Alaska moves from decriminalization to legalization of cannabis

Indeed, this substance has been decriminalized in this state since 1982. Its legalization occurred in 2014. Now, adults (people over 21 years of age) can possess and/or consume up to 28 grams of cannabis. Cultivation is permitted under certain conditions: a maximum of 6 plants, 3 of which must be flowering. Unlike other states that prohibit consumption in all types of public places, Alaska allows it only at the point of purchase. Regarding sales for recreational use, it is important to clarify that they officially began in November 2016, unlike sales for medical use, which have been legal since 2007.In the Southeast and Southwest of the United States

State of Florida

The

State of Florida approved the legalization of cannabis for medical use in November 2016. Recreational use, however, remains prohibited. Possession of 20 grams is considered a misdemeanor. Offenders face various penalties, including imprisonment of up to one year, a fine of up to $1,000, and a driver’s license suspension.State of New Mexico

New Mexico The governor is also embarking on a process of legalizing cannabis. In 2020, a bill to legalize cannabis for adults was adopted by a Senate committee. Later, it was rejected by a second committee. Nevertheless, the governor included cannabis legalization in her 2021 legislative agenda. In an interview, she stated that she was “still very optimistic about cannabis.” Two bills were introduced in this context.

One, by Republican Senator Cliff Pirtle, highlighted the following points:

The creation of a private commercial industry: this would allow adults aged 21 and over to purchase and possess up to two ounces (56 grams) of cannabis.

2. A ban on home cultivation.
4. The definition of designated locations for cannabis consumption.

1. A 2% excise tax on retail sales, in addition to local taxes.
3. The other, by Democratic Senator Daniel Ivey-Soto. This bill highlights the following points:

Authorization for adults 21 and older to purchase and possess up to two ounces of cannabis. Prohibition of cultivating cannabis for personal use. However, cultivating up to three mature plants would constitute a civil offense punishable by a $500 fine.A 21% tax on cannabis sales.

In 2021, the Democratic Governor of New Mexico, Michelle Lujan Grisham, signed both bills. Therefore, cannabis for adult use is now legal. This means that individuals 21 years of age or older are allowed to possess up to two ounces (56g) of cannabis and 16g of extract. They can also cultivate up to six cannabis plants at home. Furthermore, cannabis-related criminal records are automatically expunged.

Furthermore, regarding specialty shops, it should be noted that their opening is planned for 2022. These shops will initially be taxed at 12%. However, this rate will eventually increase to 18%, and cannabis businesses will be subject to taxes ranging from 5% to 9%.

State of VirginiaThe state of Virginia is the 16th in the USA to legalize cannabis. Indeed, legislators in this part of the country approved the bill that aims to legalize the plant within their territory. This bill is the culmination of two texts submitted by both houses of Congress. The final version was adopted by a vote of 48 to 43 in the Virginia House and 20 to 19 in the Senate. It is important to note that no Republicans voted for this bill in either chamber.

Therefore, it is up to the Governor of Virginia, Ralph Northam, to approve it in order for its implementation. It should be noted that Northam supports the legalization initiative. In fact, some time before, Ralph stated that “It’s time to legalize marijuana in Virginia.” Following this line of thought, well before the emergence of this bill, he first signed another bill decriminalizing cannabis. This bill set a $25 fine for simple possession, thereby sealing conviction records and prohibiting employers from inquiring about prior convictions.

From this perspective, what does this bill on the legalization of cannabis in the State of Virginia

1. entail? It can be summarized by the following key points: Sales of cannabis for adults will not begin before 2024, according to thecompromise law
2. .
3. The imposition of a 21% excise tax on sales. To which municipalities add an additional 3% tax on retailers, on top of the sales tax.
4. Tax revenues are used to fund education, substance use disorder treatment programs, other public health initiatives, and a cannabis equity reinvestment fund. This fund would provide resources such as scholarships and workforce development for communities affected by drug abuse. Adults over the age of 21 can possess up to 1 ounce (28g) of cannabis, with up to four plants per household allowed for home cultivation.

This bill, while not without room for improvement, represents a true cornerstone of justice in the state of Virginia. Echoing this sentiment, Del. Charniele Herring, sponsor of the legalization bill and Democratic majority leader, stated: “This is, to me, a justice bill. While it has flaws and is not a perfect bill… I think it takes us in the right direction.” The MORE Act and its Implications

The vote on the

MORE Act

is initially scheduled for September 2020. Indeed, the adoption of this law would radically change the perception of cannabis in the USA. In fact, for some, its adoption would represent a return to racial justice and a significant political shift.

That being said, what are the implications of this law? We present them below. Removal of the federal prohibition on cannabis, Expungement of criminal records for individuals already convicted of cannabis offenses,

Imposition of a 5% federal tax on sales,

1. Possible review of cases for individuals incarcerated for cannabis-related offenses,
2. Protection of immigrants from denial of citizenship for cannabis-related offenses,
3. End of money laundering related to cannabis.
4. Given these rather enormous stakes, it goes without saying that cannabis will be central to the election of the next US president. While we wait for that moment, we recommend this video.
6. A last-minute date change

Although initially scheduled for September 2020, it is now expected to take place in December. At the time of writing, the exact date has not been specified. However, POLITICO reports that it could be held between December 1st and 4th, or between December 7th and 10th.

From this perspective, this postponement has provided an opportunity for certain figures to reiterate the importance and implications of this vote. Furthermore, the co-chair of the Cannabis Caucus, Barbara Lee, maintains that:

The November 2020 votes

Indeed, five states are holding votes on the legalization of medical and/or recreational cannabis within their borders in November 2020. These states are:

Arizona

New Jersey

1. South Dakota
2. Montana
3. Mississippi
4. Arizona
5. After previous rejections of cannabis legalization in these states, Arizona could take the next step with the November 2020 vote. This is especially true given the support of major organizations, including leading figures in the US cannabis industry. Among them are Tempe, Harvest Health & Recreation (HRVSF), based in Arizona, and companies such as Curaleaf (CURLF) and Cresco Labs (CRLBF), which have cultivation and retail operations in the medical cannabis industry in Arizona.

So, what are the implications of legalizing medical and/or recreational cannabis in Arizona? On the one hand, Proposition 207 will allow adults 21 and older to possess, consume, or transfer up to one ounce of cannabis and will create a regulatory system for the cultivation and sale of cannabis products. On the other hand, recreational sales in Arizona could total $700 to $760 million by 2024. New Jersey

In 2017, Governor Phil Murphy, during his election campaign, promised to legalize cannabis in New Jersey. This promise could become a reality with the November 2020 vote. In fact, according to him, legalizing cannabis would bring $300 million to the state coffers. He also argues that it would help establish social justice in the state.

If the vote is in favor of legalization, adults aged 21 and over could now legally possess and consume cannabis. Furthermore, recreational cannabis products would be subject to the state sales tax (currently 6.625%). Similarly, annual sales are projected to range between $850 million and $950 million by 2024. In short, it will still be a few months before the cannabis industry truly takes off and the related legislation is fully implemented in this state. As Charlana McKeithen, founder and director of Garden State NORML, explains, South Dakota wants to kill two birds with one stone. Why? Because most states often proceed with legalization in stages. In other words, first medical cannabis, then recreational cannabis. Or vice versa. Except that, in this case, it is possible that both will happen at once.

Indeed, the vote is on measure 26 of the bill. This measure, on the one hand, could establish a medical cannabis program and a registration system for eligible individuals. Along the same lines, Amendment A could legalize cannabis for adults. This, in turn, would require the legislature to adopt both medical cannabis and hemp.

On the other hand, Amendment A could generate $29.3 million in tax revenue for the state by fiscal year 2024.

Montana

To easily present the cannabis legalization project in the state of Montana, let’s look at the two main ballots that will be submitted to voters. First, I-190. This ballot would allow or prohibit adults in the state from possessing, purchasing, and using cannabis for recreational purposes. Second, CI-118. This would establish 21 as the legal age to purchase, possess, and consume cannabis.

If passed, I-190 would establish a 20% tax on recreational cannabis, with more than half of the tax revenue going into the state’s general fund and the remainder allocated to programs such as law enforcement, addiction treatment, and veterans’ services. This measure would also allow individuals serving sentences for certain cannabis-related offenses to request a retrial or expungement of their records.

Furthermore, recreational cannabis sales are projected to total nearly $193 million in 2025, generating $38.5 million in tax revenue.

Mississippi

Cannabis legalization in Mississippi hinges on two main initiatives.

Our source, CNN, presents the first as follows:Initiative 65, which originated from a citizen petition, would allow doctors to recommend medical cannabis to patients with one of 22 eligible conditions, such as cancer, multiple sclerosis, and post-traumatic stress disorder. The constitutional amendment would establish a regulatory framework allowing companies to cultivate and sell medical cannabis and tax the products at a rate of 7%.

Regarding the second initiative, Initiative 65A, the same source explains: “Under Mississippi law, the legislature has the power to amend or draft alternative measures, and that is what it did here through Initiative 65A. This alternative measure requires pharmaceutical-grade medical products, restricts the use of medical cannabis to terminally ill individuals, and leaves the future creation of rules and a regulatory framework to the legislature.”