Voters could legalize recreational marijuana in five states this November and medical marijuana in three more. This record number of state ballot measures promises to be a great boon for the cannabusiness industry. With national prohibitions against interstate cannabis commerce, as well as current federal banking and drug laws, large companies have been kept out of the industry, so the market is still primarily comprised of small businesses.
California, Arizona, Maine, Massachusetts and Nevada will consider legalizing the recreational use of cannabis while Florida, Arkansas and North Dakota will decide on marijuana for medical purposes.
What’s going on state by state?
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California, Prop 64
California is the biggest potential market in the country and the passage of Prop 64 "will create an explosion in the value of compliant medical marijuana dispensary and cultivation licenses in good standing,“ said Steve Gormley, CEO of Seventh Point LLC a private equity fund acquiring those kinds of assets throughout Los Angeles, California. “That's the precedent we've seen in Colorado, Oregon, Washington State, Alaska and DC.,” he said, “ I have no reason to believe California will be any different."
Proposition 64 would legalize marijuana for “adult use,” (the new term for recreational/non-medical use.) A set of rules would govern marketing and other business functions, and allow local governments to levy their own additional taxes or ban related activities in their area.
Nevada, Question 2
Entrepreneurs in Nevada see marijuana legalization as a way to further enhance the state’s role as a preferred vacation spot for adults to come enjoy activities they might not participate in at home. “The black market has thrived in Nevada for decades, and this is the surest way we have ever seen to break its back,” said Leslie Bocskor, President of Electrum Partners, a Nevada-based advisory services firm specializing in medical and recreational cannabis and ancillary businesses. “The passage of Question 2 will also provide tax revenues to improve the educational system in Nevada, one of the lowest ranked in the country,” he said.
Nevada will vote to legalize and regulate recreational marijuana, and if it passes, use the tax revenues for K-12 education. Medical marijuana has been legal in the state since 2000.
Maine, Question 1
The campaign language “Regulate Marijuana Like Alcohol” has helped polling in Maine to get to 54% of those in favor of legalization. Entrepreneurs expect pot taxes to help the state and the industry to provide jobs ranging from agriculture and retail to software engineering and financial services, according to Mike Bologna, CEO of Green Lion Partners, a Denver-based business strategy firm focused on early stage development and entrepreneurship
Maine is voting to legalize recreational marijuana use. If the measure passes, adults in Maine could legally possess more pot than residents of California and Nevada (2.5 oz vs 1 oz) Municipalities can limit or ban retail pot shops.
Arizona, Prop 205
Entrepreneurs like Megan Stone who designs interiors for medical marijuana dispensaries will be able to expand their businesses if recreational use is legalized in Arizona. Examining retail data in other states, “you can see the entrepreneurial dreamland take shape,” said Stone.
Cannabusiness people like Ms. Stone who operate in states where recreational use is being added to medical use, have a head start on serving the new market because they are used to working under marketing, packaging and other marijuana-specific regulations.
Proposition 205 would allow adult recreational use of marijuana in non-public spaces. People could carry up to an ounce and grow six plants. There will be a 15% tax on retail marijuana sales.
Massachusetts, Question 4
Massachusetts has 1.4 million more residents than Colorado, so canna-business people expect sales totals to exceed those of Colorado. “These sales will also have a massive impact on the state as 3.75% of the total sales, in addition to the standard sales tax, will be paid on every dollar spent at the register,” said Rob Hunt, President of Teewinot Life Sciences, a company focused on the biosynthetic production of pure pharmaceutical-grade cannabinoids.
Medical marijuana has been legal since 2012 in Massachusetts and with this measure the state could also legalize and regulate recreational marijuana. Residents would be able to carry one ounce of pot, and would be allowed to possess larger amounts (10 ounces) if it is locked up in an enclosed place in their residence. Municipalities would be able to impose restrictions or bans on commercial activities.
Medical Marijuana Opportunities in Florida, Arkansas and North Dakota:
States voting on allowing medical sales, especially Florida with its population of about 20 million people, offer a vast array of new jobs, “at least half of which are in ancillary areas like packaging, engineering, lighting design, branding and professional services like legal and accounting,” according to Alex Halperin, who writes a weekly aggregated marijuana newsletter called Weed Week. While the regulations in each state might be different, what they have in common is opportunity he said, for entrepreneurs interested in agriculture, manufacturing, retail, security, marketing and transportation.
What’s on the ballot?
Florida
Florida is voting to make medical marijuana legal, allowing doctors to decide when it should be prescribed. This type of measure was narrowly defeated previously.
Arkansas
Two competing marijuana ballots aim to allow medical marijuana for a few specified conditions.
North Dakota
While they fell short of signatures required to put recreational legalization on the ballot, North Dakota will vote to allow medical marijuana to be used for a dozen medical conditions.
