New cannabis legalization in 5 states
Voters in Arizona, Montana, South Dakota, Mississippi, and New Jersey will decide on the legalization of medical and adult-use cannabis. Projected market gains of billions of dollars hang on voters’ decision on November 3rd. If these efforts are successful, then it’s likely that other neighboring states will follow suit with legislation.
Arizona
Currently, medical use is legalized and regulated in Arizona. The operators that currently hold licenses are multi-state operators that gained a presence in Arizona and aggressively expanded their operation. A few independent operators exist in Arizona, and a recreational market would drastically increase that number. If Arizona passes the initiative, they will offer 26 social equity licenses.
Projected first-year sales: $375-$400 million
Adult-Use or Medical: Adult-use (recreational), Proposition 207
Montana
Voters will decide if recreational cannabis licenses should be limited to Montana residents, with no limit on the number of licenses issued. If passed, the existing medical operators would get a 12-month head-start. The business license application process would begin by October of 2021.
Projected first-year sales: $217.2 million (according to a University of Montana study)
Adult-Use or Medical: Adult-Use (recreational), Initiative 190
South Dakota
If the cannabis legalization bill passes, South Dakota would be the first state in the country to legalize both medical and adult-use marijuana at the same time. Regulators plan on issuing enough licenses to reduce black-market cannabis sales while limiting licenses so as to not concentrate marijuana sales in a particular municipality.
Projected first-year sales: $1.5-$2 million (for medical market only)
Adult-Use or Medical: Both – Amendment A, recreational marijuana; Measure 26, medical marijuana
Mississippi
Citizens collected enough signatures to get a business-friendly medical marijuana initiative on the ballot, but the election code placed by state lawmakers makes it more difficult to pass if competing measures are on the same ballot. If passed, licenses will be issued no later than August 15th, 2021 and regulators would be prevented from limiting the number of licenses.
Projected first-year sales: $240-$265 million
Adult-Use or Medical: Medical; Initiative 65 (citizens’), 65A (lawmakers’)
New Jersey
The ballot measure in New Jersey will significantly pressure the surrounding states to legalize recreational marijuana. Residents are deciding whether or not to legalize a commercial recreational cannabis program that would be an annual multi-billion dollar industry. The number and types of business licenses available would depend on lawmakers and regulatory agencies.
Projected first-year sales: $375-$400 million
Adult-Use or Medical: Adult-Use (recreational)
How Canna Business Services Can Get You Started
Canna Business Services is a cannabis consulting company that offers unparalleled market expertise and regulatory compliance. We have had successful experience in highly competitive states. We’re a powerhouse team of experts ready to guide you through every step of the process, avoiding pitfalls while providing education.
If you want expertise, mastery, and certainty in the cannabis industry, you want Canna Business Services on your side. Call us now at 888.453.0555 or visit us at www.cannabusinessservices.com – we can’t wait to hear from you!
