Editor's note: Election results reported are projected, and subject to change. CBT/CD will update its election coverage as necessary to accommodate changing election results.

Preliminary results from Mississippi show that medical cannabis legalization passed with approximately 67% of the vote, according to the New York Times. Initiative 65, the measure from Mississippians for Compassionate Care’s Medical Marijuana 2020 campaign, received about 48% more votes than a competing measure put on the ballot by the state legislature, Alternative 65A. Roughly 33% of voters were against both measures.

Mississippians for Compassionate Care announced its win on social media.

A fiscal analysis by Mississippi’s Legislative Budget Office estimates the first year of the medical program will cost the state roughly $11.1 million, according to the Medical Marijuana 2020 site. In the following years, the program will bring in around $10.7 million in overall annual revenue, which will need to go back into the program.

Residents must have one of 22 serious qualifying conditions, such as cancer, chronic pain, or epilepsy, to qualify as a medical cannabis patient.

Mississippians for Compassionate Care nor the state representatives behind Alternative 65A could be reached for comment by Cannabis Business Times and Cannabis Dispensary about election results.

Jamie Grantham, Medical Marijuana 2020’s communications director, told CBT and CD in July, “Our medical marijuana program here in Mississippi is going to be a robust program in that patients who need help will actually have access to regulated, safe, secure medical marijuana.

“It is going to be a strictly regulated program made especially for Mississippi. It'll be regulated by the Mississippi Department of Health, and medical marijuana treatment centers here in Mississippi will be the only places that medical marijuana will be available.”

Regarding Alternative 65A, legislators’ competing measure, Grantham said at the time that she believed the legislature was working to confuse voters and intentionally split the vote, adding that the lack of a timeline in the competing proposal could halt the development of a medical cannabis program indefinitely.

“If they actually wanted to put a medical marijuana program in place, they would have done it legislatively,” Grantham said in July. “But there's been more than 25 attempts by people to pass [medical cannabis] bills legislatively, and they've never allowed them to go to the floor. So, the only reason they put the alternative on the ballot is because ours had just qualified.”

In late October, Mary Hawkins Butler, mayor of Jackson, Miss., suburb Madison, petitioned the Mississippi Supreme Court, claiming Initiative 65 is unconstitutional, according to ABC affiliate WAPT.

Steve Hawkins, executive director of the Marijuana Policy Project (MPP), said in a prepared statement provided to CBT and CD, “Just like we saw in the 2018 victory in Utah, Mississippi voters have proven that medical marijuana legalization is politically viable in even the most conservative states in the country. This victory is especially significant considering voters were able to see past the legislature's attempt to derail Amendment 65 by proposing a confusing and unnecessary alternative initiative of their own.”

Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML), said in a prepared statement provided to CBT and CD, “Initiative 65 puts the needs and interests of patients first. This was a grassroots effort to provide patients with access to a treatment option that patients already enjoy in 34 other states and in the District of Columbia.

“By contrast, Measure 65A was a cynical effort by lawmakers to misdirect voters. The same state lawmakers that for decades had refused to ever seriously address the issue were the ones behind 65A, and voters wisely rejected their campaign.”

Morgan Fox, media relations director and committee manager of NCIA, said in a prepared statement, "Despite the best efforts of the opposition to create confusion on this ballot, Mississippi voters showed that they want their seriously ill loved ones to be able to safely and legally access the medicine that works for them.

“We urge the state government to begin implementing this sensible measure without delay so that Mississippians can get relief as soon as possible and start obtaining medical cannabis from tested and reliable providers. Hopefully this successful initiative will push more states in the region to enact effective medical cannabis programs of their own."

Editor's note: Election results reported are projected, and subject to change. CBT/CD will update its election coverage as necessary to accommodate changing election results.

Access to medical cannabis in the U.S. expanded on the night of Nov. 3, as voters in South Dakota approved a ballot measure that paves the way for a program that would allow individuals with debilitating medical conditions access to the plant’s therapeutic benefits.

Measure 26, originally filed by Melissa Mentele, executive director of New Approach South Dakota, passed with 68.8% support with 84% of precincts reporting, according to the Associated Press (AP).

Among other items, Measure 26 would cap licensing fees for medical cannabis establishments at $5,000 (adjusted annually for inflation), would implement a sliding scale for patient application and renewal fees based on household income, and would require the state’s Department of Health (DoH) to issue rules within 120 days of the effective date of the act. Once the program is established, patients will be able to home grow at least three plants and possess up to three ounces of dried cannabis (with limits on cannabis products to be set by the DoH).

Additionally, the ballot’s language prevents counties from banning medical facilities. Patient access was a priority for the Measure 26 campaign, as South Dakota ranks in the bottom 10^th percentile in state population density rankings.

The Marijuana Policy Project's (MPP) deputy director, Matthew Schweich, said in a statement: “By approving Measure 26, South Dakotans have made it clear that they believe individuals with debilitating medical conditions should have the right to use medical marijuana without fear of criminalization.”

Morgan Fox, media relations director and committee manager for the National Cannabis Industry Association (NCIA), also said in a statement, “We commend the voters of South Dakota for supporting compassion and joining the majority of states with medical cannabis programs that allow seriously ill patients to legally and safely access the medicine that works for them.”

On Twitter, Schweich wrote, “... We are awaiting the results of Amendment A, which legalizes marijuana for adults 21 and over and protects the medical marijuana policy established by Measure 26. At this time, Amendment A is leading 52-48...” MPP was heavily involved with both ballot initiatives.

South Dakota has legalized medical marijuana by passing Measure 26. We are awaiting the results of Amendment A, which legalizes marijuana for adults 21 and over and protects the medical marijuana policy established by Measure 26. At this time, Amendment A is leading 52-48...

— Matthew Schweich (@mhschweich) November 4, 2020

NORML Executive Director Erik Altieri said in a statement, “South Dakotans sent an unequivocal message in support of allowing patients the ability to legally access it under the advice of their physician. When operational, this program will provide lab-tested medical cannabis products to thousands of South Dakotans who can benefit from them. These patients cannot wait, and voters were right to take action to make this access a reality.”

The adult-use amendment, Amendment A, currently sits at 52.9% in favor of legalizing adult-use cannabis with 84% of precincts reporting.

Editor's note: Election results reported are projected, and subject to change. CBT/CD will update its election coverage as necessary to accommodate changing election results.

New Jerseyans have voted to approve Public Question No. 1, which amends the state constitution to legalize cannabis for adults aged 21 and over, as well as the cultivation, processing and sale of recreational cannabis products, by a 67-33 margin, according to unofficial election results reported by the New York Times at 9:48 p.m. ET. 

The ballot initiative does not spell out a regulatory framework of any kind.

The Public Question No. 1 referendum comes after years of failed attempts to legalize adult-use cannabis in the state legislature.

This year’s referendum effort raised more than $2 million in campaign contributions, most of which were given to cannabis-legalization campaign NJ CAN 20 and political advocacy group Building Stronger Communities Action Fund.

NJ CAN 2020’s coalition included the American Civil Liberties Union (ACLU) of New Jersey, Minorities for Medical Marijuana (M4MM), the National Organization for the Reform of Marijuana Laws (NORML), the National Association for the Advancement of Colored People (NAACP), Law Enforcement Action Partnership, Progressive Democrats of New Jersey, and other industry members and stakeholders.

The initiative received a full-throated endorsement by New Jersey Governor Phil Murphy. “$150 million. That’s what processing marijuana arrests costs New Jersey taxpayers every year—arrests that disproportionately impact young people of color and make it harder for them to get a job, a place to live, even a credit card. … Join me in correcting this wrong by voting ‘yes’ on Public Question No. 1 to legalize and regulate adult-use marijuana,” said Murphy in a video advertisement for NJ CAN 2020.

The NJ CAN 20 campaign also worked to ensure voters knew the question was on the ballot, and not to mistakenly skip it on the back page. A #TurnthePage campaign was promoted on social media, by Gov. Murphy as well as Senator Cory Booker (D-NJ). 

“This is great news for the Garden State but the work is not over,” said Bill Caruso, an attorney with Archer & Greiner and a member of NJ CAN 2020, in an emailed statement to Cannabis Business Times (CBT) and Cannabis Dispensary (CD). “Now, the legislature must immediately act to end arrests and establish statutory guidance on legalization. We are hopeful that legislation will pass and be signed into law later this month and that adult use sales could begin in NJ in the 3rd or 4th quarter of 2021.”

NJ’s Past Legalization High Hopes and Setbacks

Medical cannabis in New Jersey became law in 2010 under the Compassionate Use Medical Marijuana Act (CUMMA); however, the state’s previous governor Chris Christie (R) was staunchly opposed to legalization and held up the program’s implementation while he was in office.

Christie vowed to crack down on state cannabis programs federally during his presidential run in 2016, and going so far as to say cannabis would “poison our kids” and that taxes from legalization would be “blood money” in a speech in 2017. (In 2018, Christie made comments that suggested he has since softened his stance and now views legalization as a states’ rights issue.)

When Christie left office in 2017 and Gov. Phil Murphy came into power, Murphy promised to legalize cannabis within his first 100 days in office. New Jersey cannabis lobbyists tripled their spending in the state the following year. However, efforts to legalize adult-use in the legislature fell short when disputes over taxation remained unresolved.

According to POLITICO, Scott’s Miracle-Gro Company, which owns the cannabis hydroponic product distributor Hawthorne Gardening Co., was the largest financial backer of this year’s effort, contributing $100,000 to NJ CAN 20 and $700,000 to Building Stronger Communities Action Fund.

More than 60 percent of New Jerseyans are in favor of adult-use legalization, according to data collected by an April 2020 Monmouth University Poll.

Today, New Jersey’s medical market includes more than 86,000 patients, as well as an expanded qualifying conditions list, reduced barriers for young patients, and sales tax rate reductions since the program’s start.

What’s Ahead

The amendment to legalize adult-use cannabis will take place on Jan. 1, 2021; however, experts anticipate it will be at least a year before adult-use cannabis will be ready for sale, according to Patch.com. Lawmakers are now tasked with determining how the program is run, including restrictions and regulations, and a licensing process. Officials must also establish and appoint members to the state’s Cannabis Regulatory Commission, according to NJ.com. (The commission was established under the Jake Honig Compassionate Use Medical [Marijuana] Cannabis Act in July 2019.) The legislature will likely look to State Senator Nicholas Scutari’s recreational marijuana legalization bill from 2018 as a legal framework. According to POLITICO, an enabling bill could be introduced as soon as Thursday, Nov. 5.

The initiative does not affect the state’s current medical cannabis program nor its hemp program, Patch.com reported.

Cannabis industry research firm Brightfield Group projects that an adult-use cannabis market in New Jersey could see more than $352.6 million in sales in 2021, and nearly $649 million in sales the following year. By 2023, Brightfield estimates recreational sales in the state to be more than $1 billion. These figures assume that voters will approve adult-use legalization, and Brightfield makes these projections “for states that we think have a good chance of legalizing,” according to Brightfield Group’s Alyssa Jank.

Industry members anticipate that New Jersey’s legalization may also influence legalization in neighboring states and throughout the country.

“If New Jersey votes in favor of adult-use cannabis, then the pressure will be on Pennsylvania, New York, and even Connecticut to also legalize adult use, otherwise, they will lose significant tax revenues to New Jersey as customers cross state lines to purchase cannabis (even though it remains federally illegal to return from out of state with cannabis),” according to Patricia Baldwin Gregory, general counsel for Pennsylvania-based medical cannabis dispensary operator Keystone Canna Remedies.

Industry groups echo this sentiment. “Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island. On the national stage, New Jersey’s sizable population and relatively large congressional delegation is likely to add significantly to the growing chorus of federal lawmakers calling for an end to prohibition,” according to a statement from the National Cannabis Industry Association emailed to CBT and CD.

In an emailed statement, Marijuana Policy Project Executive Director Steve Hawkins told CBT and CD, “This victory will undoubtedly have a rippling effect in the Northeast and add to the increasing pressure in neighboring states to take action on marijuana legalization.”

More Industry Reaction

“By moving to end this fiscally wasteful and morally repugnant policy, state officials will now be able to prioritize law enforcement resources toward combating more serious criminal activities, better respect the personal freedom and civil liberties of their citizens, end the racist application of marijuana prohibition laws against communities of color, and direct new tax revenues toward important social programs such as education and infrastructure development,” said NORML Executive Director Erik Altieri in an emailed statement. 

“Their first priority should be bringing about an end to the tens of thousands of low-level marijuana possession arrests that occur each year in New Jersey. Once this is accomplished, they should then expeditiously move forward to meet voters’ second demand, which is to initiate regulations to license and oversee the commercial cannabis market in New Jersey,” Carly Wolf, NORML’s State Policies Coordinator, commented in an emailed statement.

In response to how New Jersey legalization could affect the country overall, Gregory of Keystone Canna Remedies said, “The population in the Northeast equates to the aggregate population in the adult-use states of California, Oregon, Washington, and Colorado. Projected sales for these Western states in 2020 is approximately $8 billion, representing approximately 50% of the entire U.S. industry. While initially, the Northeast is not likely to produce the level of sales seen in the mature Western markets, over time they will rival them and consequently move the needle significantly.”