In a landmark development for cannabis legislation, all five states with cannabis measures on the ballot during the November 2020 election have voted in favor of either medical or adult-use legalization. New Jersey, Arizona, and Montana approved adult-use cannabis, while Mississippi passed a measure for medical cannabis. Notably, South Dakota became the first state to legalize both medical and adult-use cannabis simultaneously. Currently, 35 states have legalized medical cannabis, with 15 states allowing adult-use, meaning roughly one in three Americans has access to legal cannabis, as reported by POLITICO.
“If there was any remaining stigma around cannabis as a form of medicine, it is gone forever,” stated Greg Kaufman, partner and co-leader of Eversheds Sutherland’s Cannabis Industry Team. He emphasized that the continued acceptance of cannabis is likely to increase pressure on Congress to act on pending cannabis legislation.
State-by-State Breakdown of the Election Results
New Jersey
Voters in New Jersey approved Public Question No. 1, which amends the state constitution to allow cannabis legalization for adults age 21 and over, with a 67-33 voting margin. This amendment will take effect on January 1, 2021. Lawmakers are now tasked with setting up the program, including restrictions, regulations, and licensing processes, while forming a Cannabis Regulatory Commission. Experts estimate that adult-use cannabis sales could exceed $352.6 million in 2021, growing to nearly $649 million in the following year, indicating a significant market opportunity.
Arizona
Despite legal challenges and opposition from the state’s governor, Arizona voters approved adult-use cannabis legalization with a 60-40 margin. Under Proposition 207, adults aged 21 and older can purchase and possess up to one ounce of cannabis and cultivate up to six plants at home. The Arizona Department of Health will oversee the new adult-use industry, which is required to launch by June 1, 2021. Forecasts suggest that the market might generate over $288.6 million in sales in 2021, increasing to nearly $857 million in 2022.
Mississippi
In Mississippi, medical cannabis legalization passed with approximately 67% of the vote, largely supported by Initiative 65 from the Mississippi Medical Marijuana 2020 campaign. Voters had to choose between Initiative 65 and a competing measure, Alternative 65A, the latter receiving about 33% support. To qualify as a medical patient, individuals must have one of 22 serious conditions such as cancer or chronic pain. The Mississippi Department of Health will implement regulations for the program, which is estimated to cost around $11.1 million in its first year while producing approximately $10.7 million annually thereafter.
Montana
Montana voters showed strong support for cannabis legalization, with 59% approving Initiative I-190 for adult-use cannabis. Additionally, 61% favored legislation establishing the legal age for consumption. These initiatives are expected to generate social and economic benefits, calling attention to the need for federal law reform regarding cannabis.
South Dakota
On November 3, voters in South Dakota made history by passing Amendment A, legalizing adult-use cannabis without an existing medical program. With 53.4% in favor, the amendment allows adults aged 21 and older to possess up to one ounce of cannabis. It also mandates that the legislature create a medical cannabis program and establish laws for hemp sales by April 2022. Municipalities may restrict cultivation businesses, but residents lacking local retailers can grow up to three cannabis plants at home.