4 States Join the Club on Election Day

Voters approved ballot measures in Arizona, Montana, New Jersey, and South Dakota on election day, Tuesday, November 3, bringing the country to 15 total states that now have an adult-use cannabis law or a mandate to create one. What does each ballot measure say in the 4 states, and how many of them focus on social equity and small businesses?

“Arizona is the only state, this election, to include social equity language in their ballot measure, directing the state to form a Social Equity Ownership Program, starting with 26 licenses, and with details to be worked out later ...”

This past election day, Tuesday, November 3, 2020, 4 states passed adult-use cannabis-related measures at the ballot box. Voters approved ballot measures in Arizona, Montana, New Jersey, and South Dakota bringing the country to 15 total states that now have some form of adult-use cannabis legislation or a mandate to create one. Below we explore each state’s new ballot measure, and we look at how many of them focus on social equity and small businesses.

Arizona

Almost 60% of Arizona voters passed Proposition 207 directing the Department of Health Services, which currently oversees their state medical cannabis program, to create an adult-use program by April 5, 2021. Arizona is the only state, this election, to include social equity language in their ballot measure, directing the state to form a Social Equity Ownership Program, starting with 26 licenses, and with details to be worked out later. Proposition 207 also defines a 21.6% tax for cannabis products, that’s a 16% cannabis tax plus the state’s 5.6% sales tax, with excise tax revenue will support public safety, public health programs, community colleges, and infrastructure projects, and includes home cultivation at 6 plants per adult, possession of 1 ounce of flower and 5 grams of concentrates, and early market access for their medical dispensaries. Corporations like Curaleaf and Harvest Enterprises operate in Arizona's current medical program and supported Proposition 207.

Montana

Last Friday over 55% of Montana voters passed 2 ballot measures, Initiative 190 and Initiative 118, moving the state toward an adult-use program. Initiative 190 directs the Department of Revenue to setup commercial sales by October 1, 2021, and Initiative 11 amends Montana's state constitution to set the legal age for cannabis consumption at 21. Initiative 190 doesn't include any social equity language but does include a few details, such establishing a 20% sales tax on cannabis products, allows home cultivation of 4 mature plants per adult, with 8 plants maximum per household, possession of 1 ounce of flower and 8 grams of concentrates, and early access for their medical dispensaries. 

New Jersey

Nearly 70% of voters in New Jersey passed Ballot Initiative #1 rewriting the state's constitution to set the legal age for cannabis consumption at 21 and directing the legislature to set up a tax and regulatory framework. The initiative doesn't include any social equity language or any other details but it does state cannabis products will be subject to sales tax, currently set at 6.625%, and authorizes local municipalities to charge their own taxes. New Jersey currently has a medical cannabis program, and one of the biggest donors to Ballot Initiative #1 in New Jersey came from the parent company of Scotts Miracle-Gro.

South Dakota

Voters in South Dakota said yes to 2 ballot measures on election day, Initiated Measure 26 and Constitutional Amendment A, becoming the first state to pass medical and adult-use cannabis at once! Initiated Measure 26 allows for cannabis to be used as a medicine and the Department of Health has until October 29, 2021, to get things going. Constitutional Amendment A allows adult-use cannabis and directs the State Department of Revenue to set up commercial sales by April 1, 2022. Measure 26 allows patients to possess up 3 ounces, grow 3 plants, and buy from a dispensary. Amendment A allows adults to possess 1 ounce and grow 3 plants per house and sets the sales tax for cannabis products at 15%, with half of the proceeds going to South Dakota public schools and the remainder to the state’s general fund.