In November 2016, nine statewide marijuana ballot initiatives went before voters, and eight were approved.
In 2018, voters in a number of additional states are likely to see cannabis questions when they go to their polling places.
Here’s an in-depth look at those states that have the best chance of qualifying marijuana initiatives, followed by some brief info on a few that seem like longer shots…
(Note: Additional states that don’t allow voter initiatives or referenda could see legalization or medical cannabis measures approved by legislatures. A future post will examine those opportunities.)
The Michigan Regulation and Taxation of Marihuana Act would allow adults over 21 to possess, grow and use small amounts of marijuana legally.
Specifically, they could grow up to 12 total marijuana plants in a single residence, possess 2.5 ounces outside their homes and store 10 ounces at home (in addition to what they grow legally).
State regulators would grant business licenses for cultivators, processors, testing facilities, secure transporters, retail stores and microbusinesses (i.e. small businesses cultivating a low number of plants from which they would sell product directly to consumers).
Municipalities would be empowered to regulate or ban cannabis businesses.
Retail sales would be subject to a 10 percent excise tax in addition to the state’s regular six percent sales tax. Revenues would cover the cost of regulation and additionally fund schools, roads, local governments and FDA-approved research on medical marijuana’s role in helping military veterans struggling with PTSD and other conditions.
Path to ballot: Organizers need to collect 252,523 valid signatures from registered voters to qualify the measure but, because voters sometimes sign petitions incorrectly and signatures are disqualified, organizers turned in more than 360,000 in late November. State officials will now verify that a sufficient number are valid.
Who is behind the campaign: The Coalition to Regulate Marijuana Like Alcohol is organized by Washington, D.C.-based Marijuana Policy Project (MPP), which has spearheaded many previously successful cannabis initiatives. MPP worked to garner buy-in for the effort from grassroots activists with MI Legalize who narrowly failed to qualify a legalization measure for the state’s 2016 ballot.
Polling: Several surveys have shown majority support for legalization, including one this May that found likely voters back ending prohibition by a margin of 58 percent to 36 percent.
Another Michigan measure: A second legalization campaign is also collecting signatures but the team behind it doesn’t appear to have the funding it will likely take to qualify their measure for the ballot.
A proposed constitutional amendment would allow doctors to recommend medical cannabis for any condition.
Qualified patients, after getting physician approval, would receive identification cards from the state that last for one year, subject to renewal. Patients and their primary caregivers would be allowed to cultivate up to six marijuana plants and purchase at least four ounces of cannabis from dispensaries on a monthly basis.
The state would issue licenses for medical cannabis cultivation, testing, infused products manufacturing and dispensing businesses.
The measure sets up a four percent retail tax on medical cannabis sales, with all revenue going toward services for military veterans after implementation and regulations costs are covered.
Path to ballot: Organizers need to collect 160,199 valid signatures from registered voters to qualify the measure. As of late September, the campaign had collected nearly 75,000 raw signatures.
Who is behind the campaign: New Approach Missouri is working to put the measure before voters. The organization narrowly failed to qualify a similar measure for 2016’s ballot.
Polling: A number of polls have found majority support for medical cannabis, including a July 2016 survey showing voters favored an earlier proposed ballot measure by a margin of 62 percent to 27 percent.
Other Missouri Measures: A second medical cannabis constitutional initiative being organized by physician, lawyer and former lieutenant governor candidate Brad Bradshaw appears that it may qualify as well. His campaign says that it has already collected nearly 150,000 signatures. A third measure, a statutory one involving former House Speaker Steve Tilley, is also in play. And there are also a number of other competing marijuana initiatives seeking ballot access, including several that would legalize recreational marijuana in addition to medical cannabis, but there is no indication that these measures have enough funding to qualify.
A proposed statutory initiative would allow would allow doctors to recommend medical cannabis for any condition.
Qualified patients, after getting physician approval, would receive identification cards from the state, and would be allowed to possess three ounces of marijuana on their person and eight ounces at home. They could also cultivate six mature plants and six seedlings. And they would be allowed to possess one ounce of cannabis concentrates and 72 ounces of marijuana edibles.
Homebound patients could designate a caregiver who could purchase, grow or possess marijuana for them.
People who are caught with 1.5 ounces or less of cannabis and who don’t have medical marijuana cards but can state a medical condition would be met with misdemeanor offenses punishable by no more than a $400 fine.
The state would issue licenses for medical cannabis cultivation, processing, transportation and dispensing businesses.
A seven percent retail tax on medical cannabis sales would be levied. After covering implementation and regulation costs, additional revenue would fund education and drug and alcohol rehabilitation programs.
Path to ballot: The measure has already qualified. There was a chance it could have appeared before voters in 2016 but, because a dispute over the measure’s official ballot title with then-Attorney General Scott Pruitt (now U.S. Environmental Protection Agency administrator) was not resolved by the state Supreme Court in time, its consideration was delayed until the next election. Gov. Mary Fallin (R) placed the measure on the June 26 primary ballot.
Who is behind the campaign: Oklahomans for Health qualified the measure and is running the campaign to pass it.
Polling: A Sooner Poll found that 62 percent of Oklahomans support the ballot initiative.
The Utah Medical Cannabis Act would allow doctors to recommend medical marijuana to patients with cancer, HIV/AIDS, multiple sclerosis, PTSD, chronic pain and other specifically enumerated conditions.
Qualified patients, after getting physician approval, would be issued state identification cards and be allowed to purchase two ounces of cannabis or products containing 10 grams of cannabidiol or tetrahydrocannabinol from a dispensary during any 14-day period. Patients who do not live within 100 miles of a dispensary would be allowed to grow six plants. The measure would create an affirmative defense that could be used by patients before identification cards become available.
Smoking medical cannabis would not be allowed. Patients could designate caregivers who would help grow, obtain and administer cannabis.
The state would issue licenses for medical cannabis cultivation, processing, testing and dispensing businesses.
Municipalities would be allowed to regulate, but not ban, marijuana businesses.
Medical cannabis would be exempt from sales taxes. Revenues generated by licensing fees are expected to offset implementation and regulation costs.
Path to ballot: Organizers need to collect 113,143 valid signatures from registered voters to qualify the measure. As of October, they had turned in roughly 20,000 signatures.
Who is behind the campaign: The Utah Patients Coalition is the driving force behind the measure, and is primarily funded by the Marijuana Policy Project.
Polling: Numerous polls have shown strong majority support for medical cannabis. An October Salt Lake Tribune survey found that 75 percent of the state’s registered voters back medical marijuana.
Commonwealth of the Northern Mariana Islands: Lawmakers in the U.S territory are considering legislation that would place a measure legalizing marijuana and allowing medical cannabis before voters in 2018.
Maryland: State legislators are considering putting a marijuana referendum on the ballot so that voters can decide to enact legalization.
Rhode Island: Some lawmakers in the state have in years past floated the idea of placing a nonbinding legalization referendum on the state ballot so that voters could weigh in on the issue. Activists prefer for the legislature to simply pass a bill to end prohibition, but if that doesn’t seem possible as the 2018 session goes on, they may pursue the referendum approach. If a referendum were to pass, lawmakers would likely feel increased pressure to enact a bill in 2019.
South Dakota: Activists with New Approach South Dakota are circulating petitions for two ballot measures: One to allow medical cannabis and one to legalize recreational marijuana.
Photo courtesy of Democracy Chronicles.
Montana Lawmakers Weigh Bill To Limit Marijuana Businesses
The committee also considered legislation on employment protections for medical cannabis patients.
By Keila Szpaller, The Daily Montanan
Glenn Broughton grew his medical marijuana business from a small storage shed to an operation that employees nearly 30 people, and if he’s shut down, he said he’ll go bankrupt.
“I’ve never been so scared in my life of what is going to happen to me at a pen-stroke,” said Broughton, who operates in Missoula, Lolo and St. Regis.
The business owner testified Wednesday before the House Business and Labor Committee against House Bill 568. The bill would allow roughly 115 marijuana dispensaries in the state—or not more than one per 10,000 people in a county, but 10 maximum—compared to the 355 medical dispensaries that are currently open.
No members of the public spoke in favor of the legislation.
In November, voters passed an initiative that legalizes recreational marijuana by 57 percent, and the Montana Department of Revenue anticipates accepting license applications in October.
Sponsored by Rep. Lola Sheldon-Galloway, R-Great Falls, the bill would limit dispensaries to be no closer than 1,000 feet from a school, daycare, place of worship, park or playground. It also would limit dispensaries to one per 10,000 residents in a county or up to 10 dispensaries maximum in one county.
“The people of Montana have asked us to have recreational marijuana in our state,” Sheldon-Galloway said. “My bill is just asking for some sideboards.”
Opponents, though, argued the sideboards would “squash the little guy” and favor massive operations flush with cash over smaller homegrown businesses. They also said the prohibitions go too far to realistically implement.
Sam Belanger, who said he read Montana’s marijuana legalization bill from cover to cover, told the committee he didn’t think the location restriction of 1,000 feet as the crow flies—rather than 500 feet and on the same street—would work in cities and towns.
“It eliminates almost all viable options for any dispensary in the state inside municipalities,” said Belanger, of Ronan.
Kate Cholewa, a cannabis advocate who has worked on related legislation in Montana, said the math simply doesn’t pencil out. When medical users were “tethered,” or tied to a specific provider, she said a business with 200 customers could make a good living.
With proposed limits, providers would have six times those customers. She also wondered who would be deciding who gets the the small number of licenses that would be available if the bill is enacted.
“This is just an invitation to problems and corruption,” Cholewa said.
Pepper Petersen, president of the Montana Cannabis Guild, said one of the reasons he helped draft Initiative-190, the legalization bill, is that recreational marijuana can generate tax revenue for the state.
“Most of that coal economy is gone. We need a replacement for that money,” Petersen said.
He estimated the revenue for state coffers could hit nearly $100 million a year for both recreational and medical marijuana. A study from the Bureau of Business and Economic Research at the University of Montana estimated a 20 percent tax on recreational marijuana could result in $43.4 million to $52.0 million a year from 2022 to 2026.
As part of her argument in favor of the bill, Rep. Sheldon-Galloway pointed to the relatively high use of marijuana among Great Falls middle and high school students compared to the state average. In Alaska, she said school suspensions for marijuana increased 141 percent after legalization.
Chuck Holman, though, said Montanans don’t want more regulations, and Cascade County needs to deal with its own problems.
“That county needs to address it themselves,” Holman said.
Wednesday, the committee heard a separate bill related to medical marijuana, House Bill 582.
Sponsor Rep. Robert Farris-Olsen, D-Helena, said he brought the bill forward because one of his constituents told him she lost her job because of her use of medical marijuana for a debilitating condition.
He said the bill wouldn’t allow the use of medical marijuana on the job, but it would prevent an employer from barring a person from using medical marijuana off the job for a medical condition.
Several opponents argued the bill wouldn’t make sense for industries where employees operate heavy equipment or must have a CDL, a commercial driver’s license. Jason Todhunter, with the Montana Logging Association, said logging is a highly hazardous industry, and some employers choose to conduct drug testing.
“This would muddy the waters on what we could check for,” Todhunter said.
The committee did not take action on either bill on Wednesday.
IRS Chief Says Agency Would ‘Prefer’ If Marijuana Businesses Could Pay Taxes Electronically
The head of the Internal Revenue Service (IRS) told Congress this week that the federal agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.
During an oversight hearing before the House Appropriations Financial Services and General Government Subcommittee on Tuesday, IRS Commissioner Charles Rettig was asked about the lack of banking access for marijuana businesses and what steps could be done to normalize the market.
Rep. David Joyce (R-OH), who serves as a co-chair of the Congressional Cannabis Caucus, said that barring marijuana companies from traditional financial services is “inefficient for business and the IRS alike, obviously, not to mention ample opportunity for fraud and abuse it creates, as well as potential for criminal acts as far as robbing and stealing from those.”
Rettig replied that “the IRS would prefer direct deposits moreso than receiving actual cash payments.”
“It’s a security issue for the IRS. It’s a security issue for our employees in our taxpayer assistance centers, [which] is actually where we receive these payments,” he said. “We created special facilities in the tax to receive the payments. Then we similarly have to transport the payments themselves.”
Watch the IRS commissioner talk about marijuana tax challenges below:
“Money is fungible. We have to receive it. We don’t make a determination as to what is or is not legal, but the tax payments do come in and we would rather have direct deposits if we could,” the commissioner said.
Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.
Marijuana finances also came up this week during a confirmation hearing for President Joe Biden’s pick for deputy secretary of the Treasury.
Sen. Catherine Cortez Masto (D-NV) asked the nominee, Adewale Adeyemo, whether he feels 2014 Financial Crimes Enforcement Network (FinCEN) guidance should be updated to “set expectations for financial institutions that provide services to cannabis-related industries” and what steps he would take to that end.
“I look forward, if confirmed, to talking to my colleagues at Treasury about this important issue and thinking through what changes may be needed and doing this in a way that’s consistent with the interagency with the president’s guidance,” Adeyemo replied. “In doing that, I look forward to consulting with you and members of this committee on our path forward.”
IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.
This update appears to be responsive to a Treasury Department internal watchdog report that was released in April. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”
The IRS’s commissioner of the Small Business/Self Employed Division participated in a cannabis-focused event in December in which he noted the legalization movement’s continued momentum, saying that it will potentially succeed in ending prohibition in “all states.”
As far as banking is concerned, House Democrats did approve a bill in 2019 that would have protected financial institutions that service the marijuana industry from being penalized by federal regulators. Leadership also attached that measure’s language to two pieces of coronavirus relief legislation last year, but they declined to add it to their latest version, despite having reclaimed the majority in both chambers of Congress and control of the White House.
Many of these financial services issues would also be resolved if Congress passed legislation to federally deschedule cannabis—and there’s a plan in the works on the Senate side to get that done this year.
A trio of senators—Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ)—are in the process of drafting a legalization bill. And they recently held a meeting with representatives from a variety of advocacy groups and business associations to get input on the policy change.
Missouri Bill Would Add MDMA, Psilocybin Mushrooms And LSD To Right-To-Try Law
Missouri residents with debilitating, life-threatening or terminal illnesses could gain legal access to an array of psychedelic drugs under new legislation aimed at expanding the state’s existing right-to-try law.
A bill introduced last week by Republican Rep. Michael Davis of Kansas City would allow seriously ill people to use substances such as MDMA, psilocybin mushrooms, LSD, DMT, mescaline and ibogaine with a doctor’s recommendation after exhausting all other approved treatment options. It would also remove felony penalties statewide for simple possession of the drugs, reclassifying low-level offenses as misdemeanors.
Supporters at Crossing Paths PAC, a political action committee that supports “pro-drug policy and criminal justice reform campaigns and candidates,” said the bill would allow patients to try therapies “considered promising in the treatment of a variety of mental health conditions,” including post-traumatic stress disorder (PTSD) and depression.
In a statement put out by the group, Davis said the bill “protects the liberty interests of Missourians who believe these drugs offer valuable options in the treatment of numerous conditions.”
— Crossing Paths PAC (@DrugReformMO) February 19, 2021
“Many psychedelic drugs have decades of clinical research supporting their efficacy and safety profiles,” Davis said, “yet the FDA has been slow to act to reschedule these drugs.”
HB 1176 would build on the state’s 2014 right-to-try law, Republican-led legislation that allows patients with terminal illnesses to access “investigational drugs and devices” that are not approved by the U.S. Food and Drug Administration (FDA).
President Donald Trump signed a federal “Right to Try Act” in 2018, allowing certain patients to access drugs that have not yet been approved by the Food and Drug Administration for broad use.
The current Missouri law specifically forbids the use of Schedule I controlled substances.
The new bill would remove that provision and expand eligibility to include patients with “debilitating” or “life-threatening” illnesses. A patient with a doctor’s recommendation who “has considered all other treatment options” would be exempt from the state’s laws against possessing the drugs.
Drug manufacturers could also legally produce the substances under state law, and physicians and pharmacies could lawfully distribute them.
For people who aren’t qualifying medical patients, the measure appears to reduce existing criminal penalties for possessing the listed substances. Under HB 1176, possession of up to 10 grams would be a class D misdemeanor, which carries a maximum $500 fine. Possession of between 10 and 35 grams would be a class A misdemeanor, punishable by up to a year in jail and a maximum $2,000 fine.
Under current law, possessing any amount of the listed psychedelics is class D felony, which can mean up to seven years in prison.
The Missouri measure is similar to a bill introduced in Iowa last week that would expand that state’s right-to-try law to include psilocybin, MDMA, LSD, DMT, peyote and other currently illegal drugs. The Iowa bill’s sponsor, Rep. Jeff Shipley (R), who earlier this month introduced legislation to remove psilocybin from the state’s list of controlled substances, recently described the right-to-try legislation to Marijuana Moment as “the most conservative approach to usher in the new age of mental and emotional healthcare.”
Marijuana Moment is already tracking more than 700 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.
Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
Missouri’s HB 1176 is one of more than a dozen bills related to drug policy to have been introduced in the state this year, including measures to put marijuana legalization on the 2022 ballot and allow medical marijuana consumption at hotels and Airbnb lodgings.
Other bills being considered this session, according to a summary of legislation being tracked by Crossing Paths PAC, would expunge marijuana-related offenses, prohibit the disclosure of medical marijuana patient information to unauthorized parties, reduce penalties for drug possession, protect medical marijuana patients in family court matters and adjust rules around medical marijuana licensing, taxes and banking.
“While other crises took precedence in terms of media attention,” the group said in a blog post last week, “2021 will go down in history as the year Missouri lawmakers—Republican and Democrat—began to take serious action to end the War on Drugs.”
Elsewhere across the country, lawmakers are considering similar reforms to roll back drug penalties or carve out legal access for therapeutic use.
Last week, a California lawmaker, state Sen. Scott Wiener (D) introduced legislation that would legalize the possession and social sharing of a number of drugs, including psilocybin mushrooms, LSD, ketamine, mescaline, ibogaine, DMT and MDMA. It would also provide for the expungement of past criminal records for possession or use. The state would establish a task force under the proposal to study potential future regulatory systems around psychedelics, with a report due in 2024.
Also last week, Massachusetts lawmakers introduced two drug-reform proposals, one to remove criminal penalties for all drugs and another to establish a task force to explore legalizing plant- and fungi-based psychedelics.
Earlier this month, a Texas state legislator introduced a bill to require the state to study the therapeutic potential of psilocybin, MDMA and ketamine in the treatment of certain mental health conditions.
Vermont lawmakers, meanwhile are expected to introduce a number of drug reform bills this session, including a measure to decriminalize all drugs and a separate proposal, expected Tuesday, that would remove psychedelic plants and fungi from the state’s list of regulated substances.