MJBizMag October 2020 - 52

Marijuana on the Ballot
Rudder predicts a " level of urgency "
for lawmakers to pass the ensuing
legislation and for regulators to establish
the rules because of pressure to generate
economic opportunities and tax revenues
in wake of the coronavirus pandemic.
Bridget Hill-Zayat, a cannabis attorney
with Hoban Law Group who is licensed
to practice in New Jersey, agreed. " If the
motivation is a drive for tax revenues,
they are going to want to move as quickly
as possible, " she said.
With racial justice even more of an
issue in recent months, Hill-Zayat said
New Jersey might issue micro-licenses
and loan programs to encourage
applicants from diverse backgrounds
to apply.
Municipalities, which could levy up
to a 2% retail tax on adult-use marijuana
products, also might be more motivated
to opt-in to recreational marijuana, given
their own budget pressures, Rudder said.
Experts expect the ballot initiative
to pass, noting that the latest polls
show roughly two-thirds of New Jersey
residents in favor of the initiative.
If New Jersey Public Question 1 is
successful at the ballot box, Rob DiPisa,
partner and co-chair of cannabis law
group Cole Schotz in Hackensack, New
Jersey, predicts a market launch in the
second half of 2021, given the likelihood
of existing MMJ operators to be fasttracked
for adult use.
Initiative: Legalize a commercial
recreational marijuana program by
constitutional amendment.
Sponsor: A supermajority of New
Jersey lawmakers passed a measure that
put the referendum to legalize an
adult-use marijuana program before
voters in November.
License opportunities:
* Lawmakers and regulators would
decide on the number and type
of marijuana business licenses
available, but existing MMJ
operators are expected to get first
crack at the adult-use market.
* Currently, New Jersey has
12 vertical medical marijuana
licensees. The state plans to issue
24 additional MMJ licenses-four
of them vertical and the remainder
stand-alone cultivation, processing
and dispensary licenses.
* Presuming the ballot measure is
successful, state lawmakers would
pass enabling legislation and
regulations would be developed
by the New Jersey Cannabis
Regulatory Commission, which
was created last year but has yet to
get up and running.
Tax rate: 6.625% sales tax on adult-use
products. Municipalities could pass ordinances
to charge local taxes of up to 2%.
Likelihood of passage: Residents favor
the legalization proposal by a margin
of 68% in favor and 26% against with
6% unsure, according to a July poll
commissioned by the cannabis law
practice of Brach Eichler and conducted
by DKC Analytics. An April poll
conducted by Monmouth University
found 61% of respondents in favor of
adult-use legalization.
SOUTH
DAKOTA
BALLOT MEASURES: Amendment A
and Measure 26
POPULATION: 884,659
PROJECTED FIRST-YEAR SALES:
$1.5 million-$2 million*
PROJECTED 2024 SALES:
$10 million-$12 million*
* Figures are for medical marijuana only
South Dakota could become the first
state in the nation to simultaneously
legalize medical (Measure 26) and
adult-use marijuana (Amendment A)
in November.
That would be a milestone for the
politically conservative state, especially
52 Marijuana Business Magazine | October 2020
considering that MMJ supporters
weren't able to collect enough signatures
to get a legalization initiative on the
ballot in 2018.
Initiative: Legalize a recreational
marijuana market through a
constitutional amendment.
Sponsor: South Dakotans for Better
Marijuana Laws
License opportunities:
* The initiative calls for the state
Department of Revenue to issue
" enough licenses to substantially
reduce the illicit production and sale
of marijuana throughout the state. "
* But state regulators also are directed
in the initiative to limit licenses " to
prevent an undue concentration " in
any municipality.
* Four license types would be available:
cultivation, wholesale/processing,
retail and lab testing.
Other important business factors:
* Local jurisdictions could ban
marijuana operations in their
areas or limit the locations of
such operations. But a local
government could not prohibit
the transportation of marijuana
products on public roads by those
who are licensed elsewhere.
* The state Department of Health
would have to establish program
rules within 120 days of the passage
of the act, including scoring criteria
should a local jurisdiction receive
more applicants than the number
of licenses allowed.
* Individuals who have a debilitating
medical condition as defined by
the state would be eligible for MMJ
as long as a physician certifies the
condition. Such conditions include
" severe " or " debilitating " pain.
* A dispensary could not sell more
than 3 ounces of cannabis to a
qualified patient during a 14-day
period.
MJBizMag October 2020

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