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Marijuana Ballot Measures, New Sales Records And Crackdowns On Hemp: The Biggest State-Level Cannabis Developments Of 2024



From toxifillers.com with love

Despite many cannabis advocates’ focus on federal reform in 2024—including around issues such as rescheduling and banking—some of the most impactful movement this year happened at the state level. Voters in a number of states considered legalization measures in November’s election, for the most part rejecting them.

In other areas, consumers in jurisdictions where marijuana is already legal geared up for the launch of regulated markets. Some states also saw massive growth in marijuana sales this past year, especially fledgling markets such as New York and New Jersey. The year also saw the opening of stores in Ohio as well as the first legal source of marijuana in North Carolina, where cannabis remains illegal: a retail store on tribal land operated by the Eastern Band of Cherokee Indians.

As some cannabis markets expand, others are in the crosshairs—particularly markets for hemp-derived cannabinoid products, such as delta-8 THC. Several states now restrict the substances or are planning to do so, while critics are also calling for regulation at the federal level.

Here are some of the biggest state-level marijuana news stories of 2024:

Voters in three states reject adult-use cannabis legalization

Florida

Following a contentious campaign that saw infighting among Republicans, allegations of defamation and millions of dollars in campaign spending, the effort to legalize marijuana for adults in Florida failed by a narrow margin this year. Although a majority of voters cast ballots for Amendment 3, the 55.9 percent support was below the necessary 60 percent threshold needed to pass a constitutional amendment in the state.

The measure, funded largely by the multi-state cannabis operator Trulieve, would have allowed the purchase and possession of up to three ounces of marijuana or five grams of concentrate by adults 21 and older. The reform would not have allowed home cultivation of marijuana, however, nor did it include expungement of prior cannabis-related criminal records or provisions to promote social equity.

Notably, the reform was endorsed by then-presidential candidate Donald Trump, though it was strongly opposed by Gov. Ron DeSantis (R). A post-election poll nevertheless indicated that Trump’s support failed to influence his supporters to vote for the measure. DeSantis, meanwhile, faced allegations of weaponizing state departments to push anti-legalization narratives through various PSAs, prompting one Democratic state senator to sue over what he claimed was an unconstitutional appropriation of tax dollars. A Florida judge later dismissed that lawsuit due to what he claimed to be a lack of standing and claim of injury.

In the wake of the measure’s defeat, a Republican lawmaker told local reporters he’d like to explore a limited legalization option that would allow only noncommercial cultivation and consumption by adults at home. GOP leaders, however, have said they’re not interested in the plan.

North Dakota

For the second time in two election cycles, North Dakota voters defeated an adult-use marijuana legalization ballot measure in November. Nearly 53 percent of state voters rejected Measure 5, which would have allowed adults to grow, possess and use marijuana, as well as buy products from a limited number of state-licensed dispensaries. Up to seven manufacturers and 18 retailers would have been able to operate under the proposal. Currently there are eight medical marijuana dispensaries operating statewide, which would have a path to dual-licensure under the rejected measure.

The group behind the measure, New Economic Frontier, said in September that they submitted more than 22,000 voter signatures to put the reform on the state ballot. Activists released an ad the following month emphasizing the revenue North Dakota is missing out on as neighboring states build up their cannabis markets.

Polling, meanwhile, showed a tight race ahead of the election: One from October found the legalization measure ahead, with a plurality of support, but without the majority needed to pass due to a sizable share of voters who remain undecided on the reform. That survey was more encouraging for advocates than a separate poll released in August that found sizable majority opposition to the measure. Opponents included law enforcement and some medical groups, with North Dakota’s Medical Association, Hospital Association, Peace Officers Association, Chiefs of Police Association and Sheriffs and Deputies Association all coming out against the measure.

South Dakota

Voters in South Dakota also rejected an adult-use marijuana legalization measure at the polls in November, with 55.5 percent casting their ballots against Measure 29. The vote came after months of grassroots efforts by South Dakotans for Better Marijuana Laws (SDBML) to reach the signature threshold for ballot placement.

Surveys ahead of the vote had suggested skepticism among the electorate, with the campaign trailing in both June and October. Meanwhile, South Dakota’s Republican party adopted a policy expressing “strong opposition” to the measure, and two Catholic dioceses similarly urged voters to reject the initiative.

It was the third consecutive failed attempt by advocates to adopt the change in the state following earlier efforts in 2020 and 2022. In 2020, voters approved adult-use legalization, but the state Supreme Court subsequently overturned the measure. In 2022, voters themselves rejected the reform.

Nebraska legalizes medical marijuana, but court challenges linger

Nebraska voters in November approved a pair of ballot measures to legalize and regulate medical marijuana, passing the initiatives with with 71.1 percent and 67.3 percent support, respectively. Legal disputes around the proposals, however, remain unresolved. The measures backed by the Nebraskans for Medical Marijuana still face litigation, including a lawsuit that’s headed to the Nebraska Supreme Court.

John Kuehn, a former Republican state senator and State Board of Health member, filed a lawsuit ahead of the election over whether the campaign’s collected signatures were valid. Secretary of State Bob Evnen (R), despite initially certifying the signatures, also raised concerns. Barely a week before the election, a state district judge rejected a motion in the case that would have prevented votes from being counted. And while challenges continued after the election, in mid-December Gov. Jim Pillen (R) proclaimed that the measures had succeeded.

For now, purchasing medical marijuana in the state remains illegal; the newly authorized Nebraska Medical Cannabis Commission still has to write and adopt rules for the new industry. The deadline for that is July 1, 2025, with licensing set to begin by October 1.

Lawmakers in three states get marijuana legalization to finish line, then stumble

Virginia

Democratic lawmakers in Virginia spent the early months of 2024 working to finally legalize a regulated cannabis market in the state. Use, possession and limited cultivation of cannabis by adults is already legal in Virginia—the result of a Democrat-led proposal approved by lawmakers in 2021—but Republicans subsequently blocked the required reenactment of a regulatory framework for retail sales.

After lawmakers this year hammered out a compromise sales bill—combining separate proposals from Del. Paul Krizek (D) and Sen. Aaron Rouse (D)—the legislature passed a unified proposal in February. But despite bipartisan support from lawmakers, Gov. Glenn Youngkin (R) vetoed the legislation in March—a move that drew a rebuke from the national Democratic Legislative Campaign Committee, which said Youngkin “continues to hold Virginia back and block the progress made by Democrats in control of the legislature.”

Krizek and Rouse plan to bring back their compromise bill in the 2025 legislative session, though they’ve acknowledged the likelihood of yet another veto from the governor. Nevertheless, Krizek has said that with Youngkin unable to run for reelection in 2025, more legislative Republicans may be willing to back the cannabis reform.

New Hampshire

New Hampshire nearly legalized adult-use marijuana in 2024, but the bipartisan plan fell apart just hours ahead of the end of the legislative session.

The Republican-sponsored measure—one that outgoing Gov. Chris Sununu (R) had indicated he’d support—had bipartisan support in both legislative chambers, but House Democrats narrowly voted to table it at the last minute. The move sparked accusations that Democrats were using the issue to earn the party votes at the ballot box, though most who voted against the bill at the time said they were opposed to the plan on its merits, pointing to the proposal’s state-controlled franchise model that would have given the state unprecedented sway over retail stores and consumer prices.

Further diminishing the chances for state-level reform in the next few years was voters’ election of Republican Kelly Ayotte in November to replace Sununu. While Sununu hesitantly supported legalization, Ayotte spent recent months disparaging the idea and has indicated she’d oppose the change. Advocates have acknowledged the setback but say they’ll work with the governor’s office to try to find a form of legalization she might agree to.

One possibility is instead legalizing cannabis merely for personal use. Rep. Jared Sullivan (D), a legalization supporter, has requested two versions of legalization legislation be drafted for the coming session: one bill that would legalize and regulate a commercial cannabis industry and another that would merely legalize personal possession and use. “They are unlikely to pass [and] become law,” Sullivan told Marijuana Moment in November, “but at least the conversation will continue.”

Hawaii

Marijuana legalization made it further through Hawaii’s legislature in 2024 than during any previous legislative session, but the proposal—backed by Gov. Josh Green (D) and written by state Attorney General Anne Lopez (D), whom he appointed—ultimately fell short.

The measure passed the Senate, but ahead of a deadline late in the session the head of the House Finance Committee decided to pull the bill from consideration, citing “numerous concerns regarding the implementation of the bill.”

Many had already foreseen issues in the committee following a razor-thin House floor vote on the measure the month before. One member of the committee, Rep. Gene Ward (R), had warned that if the bill became law, “homelessness is going to be catalyzed by the increase in use.” Ward also noted in his floor comments that AG Lopez’s office itself has said that she does not support the reform.

The more-than-300-page bill was formally introduced in both chambers in January and would have allowed adults 21 and older to possess up to an ounce of marijuana and up to five grams of cannabis concentrates. And despite the bill’s failure to cross the finish line, The bill’s sponsor in the House, Rep. David Tarnas (D), has already committed to bringing a revised proposal next session, and some advocates think Hawaii is well positioned to adopt the reform in the coming year.

Progress on medical marijuana stalls in multiple states

Kansas

Though strong majorities of voters in Kansas say they support the legalization of marijuana for medical (73 percent) and adult use (61 percent), lawmakers on a special committee recently voted against recommending cannabis legislation for the upcoming 2025 legislative session.

Pollsters said the apparent mismatch is because legalization simply isn’t a major issue for voters when choosing what candidate to support at the ballot box. Lawmakers on the legislature’s special medical marijuana committee said there wouldn’t be enough time in the coming session to wade through the legal uncertainty around legalization, while other legislators have complained that the state keeps discussing the issue without taking action. In 2015, about 68 percent of respondents favored medical marijuana legalization. By 2024, that support had jumped up by five points.

North Carolina

North Carolina’s Senate approved a medical marijuana bill in June, agreeing to attach cannabis provisions to a hemp- and kratom-related measure. It passed the chamber handily—on a 36–10 vote—but then languished and ultimately died in the House.

Speaker Tim Moore (R) said at the time that he personally supported legalizing medical marijuana, but he also noted that the House’s informal rule is that at least 37 GOP members must back any given bill in order for the speaker to bring it to the floor.

The measure’s provisions around medical marijuana were similar to that of a standalone bill from Sen. Bill Rabon (R), a cancer survivor who has sponsored multiple medical marijuana proposals. The senator previously described his interest in using the hemp legislation as a potential vehicle after his latest standalone bill also stalled in the House.

For now, the only legally operating dispensary in the state is operated by the Eastern Band of Cherokee Indians.

South Carolina

Medical marijuana legalization in South Carolina passed the Senate this year, but it didn’t receive a final House vote before the end of the legislative session. The chair of a House panel said there there simply wasn’t enough time to consider and weigh in on the proposal.

“We just don’t have a lot of time,” Rep. Sylleste Davis (R) said with about a week left in the lawmaking session. “But I mean, I do think this was a worthwhile effort. It certainly isn’t time wasted.”

The bill’s sponsor, Sen. Tom Davis (R), has said he was frustrated by how long it took for his measure to be taken up by House lawmakers following its passage by the Senate.

A separate Senate-passed medical cannabis bill from Davis was also blocked in the House in 2022. After that, the lawmaker tried another avenue for the reform proposal, but that similarly failed on procedural grounds.

A poll released last year found that a strong majority of South Carolina adults support legalizing marijuana for both medical (76 percent) and recreational (56 percent) use—a finding that U.S. Rep. Nancy Mace (R-SC) has promoted.

Ohio launches first legal marijuana sales

In August, retailers in Ohio opened their doors to the first legal, regulated marijuana sales to adults—including a Republican state senator who was one of the first to make a purchase on opening day. Regulators also launched an online map where adult-use consumers can view a list of approved dispensaries.

While Gov. Mike DeWine (R) doesn’t personally support legalization, he repeatedly criticized the delay in access to regulated products after voters weighed in and possession became legal in December 2023. As of the first day of legal sales, nearly 100 shops had been licensed. And since then, business has been brisk: In early November, the Division of Cannabis Control reported that recreational stores had sold more than $131 million worth of marijuana products in less than three months of legal sales.

Ohioans voted to legalize marijuana through Issue 2 in November 2023. Under Ohio law, customers 21 and older can buy up to 2.5 ounces of recreational marijuana at dispensaries.

Arkansas officials block legalization from ballot

Ahead of Election Day, Arkansas’s state Supreme Court ruled that votes for a medical expansion initiative on the ballot would not be counted.

Prohibitionists who challenged the cannabis measure by Arkansans for Patient Access (APA) successfully convinced the court that the ballot title was misleading, and justices ruled the election result moot. The court said it was siding the anti-marijuana group Protect Arkansas Kids (PAK) in agreeing that the measure’s title was misleading because it failed to adequately explain that, beyond expanding the state’s medical marijuana program, it would also more broadly legalize possession of cannabis if a federal policy change is made and would also restrict the legislature from revising the voter-approved law if enacted.

The state’s medical marijuana has proved popular since its implementation in 2019, with officials announcing in May that at least 102,000 residents have registered for patient cards, exceeding expectations. Arkansas voters defeated a ballot initiative to more broadly legalize marijuana for adults in 2022.

Local voters in Texas approve municipal decriminalization measures

In November, the cities of Dallas, Lockhart and Bastrop became the latest Texas municipalities to see voters pass a local marijuana decriminalization ordinance. In Dallas, for example—the state’s third most populous city—two-thirds of voters cast ballots in favor of the reform. In response, however, state Attorney General Ken Paxton (R) filed a lawsuit seeking to overturn the measure, a continuation of Paxton’s so far unsuccessful campaign to reverse local decriminalization policies.

Numerous Texas cities have enacted local decriminalization laws in recent years, and, in January, Paxton similarly sought to block the reform in Austin, San Marcos, Killeen, Elgin and Denton. State district judges dismissed two of the lawsuits—which argue that state law prohibiting marijuana preempts the local policies—in Austin and San Marcos. The city of Elgin, meanwhile, reached a settlement, with the local government pointing out that decriminalization was never implemented there despite voter approval of the initiative.

Gov. Greg Abbott (R), for his part, has also lashed out against the municipal cannabis reform efforts. “Local communities such as towns, cities and counties, they don’t have the authority to override state law,” the governor said in May. “If they want to see a different law passed, they need to work with their legislators. Let’s legislate to work to make sure that the state, as a state, will pass some of the law.”

Abbott has previously said that he doesn’t believe people should be in jail over marijuana possession—although he mistakenly suggested at the time that Texas had already enacted a decriminalization policy to that end.

Minnesota readies for launch of legal marijuana despite turbulence

Minnesota officials spent much of 2024 preparing for the coming launch of the statewide adult-use marijuana market set to open in the coming months.

Complicating that effort are a number of obstacles, however, including most recently the cancellation of a special business license lottery for social equity applicants. Now the soonest license lottery isn’t expected until May or June—months later than initially projected. So far at least eight legal challenges have been filed with a state appeals court challenging earlier license application denials.

In some instances, cannabis regulators have said they were suspicious of apparently predatory arrangements in which out-of-state firms sought to obtain licenses by partnering with eligible social equity applicants—a pattern seen in other states, such as Missouri and Arizona. Officials said earlier in the year that they were reviewing hundreds of applications but were confident the first license lottery would be held by the end of 2024.

In the meantime, limited sales of legal marijuana products have already begun on tribal lands within Minnesota—legal under the state’s cannabis law—and Gov. Tim Walz (D) said earlier this year that tribal nations could become major players in the state’s marijuana industry.

California governor signs consumption lounges bill, vetos marijuana farmers markets

California Gov. Gavin Newsom (D), long a proponent of commercial marijuana legalization, signed a bill in September to legalize cannabis cafes in the state—a day after vetoing a separate proposal to allow small marijuana growers to sell their products directly to consumers at state-organized farmers markets.

While the governor supports cannabis legalization, he’s been notably reserved about various drug policy proposals in recent years, for example vetoing legislation to legalize psychedelics and allow safe consumption sites for illegal drugs, in addition to nixing the farmers market proposal. Newsom had also vetoed a previous version of the cannabis cafe bill.

The new law will allow on-site marijuana consumption at licensed businesses, which can also sell non-cannabis food and non-alcoholic drinks and host live events such as concerts. There have been examples of California businesses that have found workarounds to permit on-site consumption while making food available to guests—but they’ve operated in a grey area, partnering with separately licensed restaurants that receive the profits.

After early hiccups, New York’s legal cannabis market is expanding

Amid the slow, bumpy launch of New York’s legal marijuana market, the state saw marked progress this year. Gov. Kathy Hochul (D) even described the state market in August as “smokin’ hot,” saying that state efforts to “shut down illicit storefronts and support our legal dispensaries” had paid off: “New York’s legal cannabis industry is reaching an all-time high—surpassing $500 million in sales!”

By the end of 2024, sales from state-licensed retailers were expected to expected to pass $1 billion—a noteworthy milestone, but one that came slower than in neighboring New Jersey, which has less than half the population of New York and launched its market only several months earlier.

New York officials contend that the state is succeeding despite some remaining challenges. In a recent op-ed in Marijuana Moment, OCM’s chief equity officer, Damian Fagon, said that despite litigation, bureaucratic delays and public safety concerns, the state’s progress “demonstrates that carefully designed market rules can simultaneously encourage diverse ownership, protect competition, drive innovation and prevent consolidation.”

Eastern Band of Cherokee Indians sell first legal marijuana in North Carolina

Late this summer, a tribally owned marijuana retailer in Cherokee, North Carolina—the Great Smoky Cannabis Co.—opened its doors to all adults 21 and older. Located on the 57,000-acre Qualla Boundary of the Eastern Band of Cherokee Indians (EBCI), it’s the only regulated cannabis retailer within hundreds of square miles. Thousands of adults have now made marijuana purchases at the shop.

Notably, marijuana remains outlawed for all purposes in North Carolina, and none of the state’s neighbors—Georgia, Tennessee, South Carolina or Virginia—have legalized recreational sales. Meanwhile about 70 percent of EBCI members voted to legalize adult-use cannabis in an election last year. Medical cannabis sales began on April 20 of this year, and in July, the store opened recreational sales to members of EBCI and other federally recognized tribes.

Nevada opens first cannabis consumption lounge

In February, a local government official in Las Vegas sparked a joint at 4:20 p.m. to mark the opening of Nevada’s first legal marijuana consumption lounge. Patrons at the launch of the THRIVE Cannabis Marketplace facility were also served a curated selection of marijuana products and non-alcoholic THC-infused beverages. The event marked the culmination of years of rulemaking efforts to allow the license type. The Nevada Cannabis Control Board (CCB) gave final approval for the “Smoke and Mirrors” lounge earlier in the month. Dozens of other lounges have since been approved for licenses.

Kentucky readies for launch of new medical marijuana market

After passing a medical marijuana law in 2023, Kentucky began implementing the program this year. In December, for example, doctors started being able to issue medical marijuana recommendations to patients who qualify under the new law. Just weeks ahead of the start date, more than 150 doctors were already certified to issue the recommendations. In late November, state officials also held the state’s first lottery to award dispensary licenses. The following month, they issued another round of dispensary licenses.

Gov. Andy Beshear (D) said as 2024 wound down that if all goes smoothly with the launch of the medical marijuana program, Kentucky could also potentially legalize adult-use cannabis sales.

States see record marijuana sales

While the maturation of adult-use marijuana markets has meant slower growth and even decreasing enrollment in medical marijuana programs, cannabis business overall nevertheless boomed in 2024.

For example, data from regulators showed that six U.S. states—Connecticut, Maine, Maryland, Michigan, Missouri and New York—reported hitting their highest-ever monthly sales numbers in August. That surge in sales across multiple U.S. states came about half a year after the last broad boost to retail sales, which was seen in several states in December 2023, including in Connecticut, Illinois, Maryland, Massachusetts, Michigan, Missouri, New Mexico and Rhode Island.

More recently, Massachusetts officials recently announced that the state’s recreational marijuana market had sold $7 billion worth of cannabis products thanks to a record $1-billion sales surge over the course of several months. And Michigan regulators recently said the state’s legal marijuana market was expected to surpass $10 billion in total sales by the end of 2024. New York and New Jersey, meanwhile, are each expected to reach the $1 billion total sales mark by December’s end, according to officials in those states. In Missouri, meanwhile, the cannabis market grew to $1.4 billion in 2024—outperforming states with a longer history of legalization

While not all states saw sales increase—monthly totals slid in Arizona during 2024, for example—overall the nation’s marijuana market is growing.

That’s also meant more money for state governments, which since 2021 have collected more than $9.7 billion in cannabis tax revenue, according to a recent report from the U.S. Census Bureau. During the third quarter of 2024—the most recent period for which data is available—states reported about $734.8 million in total marijuana tax revenue to the federal agency.

Individual states reporting the highest dollar amounts during Q3 of 2024 were adult-use jurisdictions with more established markets and larger populations: California ($159.6 million), Michigan ($79.3 million), Washington State ($77.3 million) and Illinois ($72.8 million). Among the lowest were more restrictive states like Louisiana ($284,000) and Mississippi ($385,000) as well as Washington, D.C., where marijuana is legal for adults but sales of non-medical cannabis remain illegal.

States add female orgasmic difficulty (FOD) as qualifying condition

Three states—Illinois, Connecticut and New Mexico—took steps this year to add FOD as a qualifying condition for medical marijuana in those jurisdictions, responding to a slowly growing body of evidence showing that cannabis can provide benefits such increased orgasm frequency, improved satisfaction and greater ease achieving orgasm among female patients. Illinois formally added FOD as a qualifying condition in recent weeks following preliminary approvals in Connecticut and New Mexico.

Advocates’ efforts have had mixed results nationwide, however: Five states—Arkansas, Ohio, Mississippi, Maryland and Oregon—have so far rejected the addition of FOD. Petitioners in some of those states are now exploring appeals of those decisions.

California State Fair allows on-site cannabis consumption

The California State Fair OK’d on-site marijuana sales and consumption for the first time this year, adding to what in recent years was limited to cannabis-focused events, competitions and educational booths. In addition to a 30,000-square-foot consumption area for adults 21 and older, customers could also order products through a virtual storefront and pick them up at a nearby retailer operated by the cannabis company Embarc.

While a first for California, on-site cannabis use and sales were allowed at the New York State Fair in 2021, after adult-use legalization was enacted in that state. That fair, however, stopped permitting public consumption the following year—though attendees could buy marijuana products from nearly a dozen local growers at a cannabis farmers market held in conjunction with the event.

States continue crackdown on intoxicating hemp-derived cannabinoids

Following the legalization of hemp in the 2018 federal Farm Bill, hemp-derived products have exploded on to the market—including products that create a psychoactive high similar to the delta-9 THC found in marijuana. Now state lawmakers in jurisdictions across the country are working to rein in hemp-derived cannabinoid products or outlaw them altogether.

In California, for example, emergency rules backed by Gov. Gavin Newsom (D) banned most consumable hemp products in the state, including those containing any intoxicating cannabinoids derived from the plant. While industry sued to stop implementation of the rules, a state judge denied that effort in October.

States around the country—including Illinois, New Jersey, Missouri, Tennessee, Ohio, Texas, South Dakota and others—are similarly moving to enact cannabinoid restrictions, often prompting pushback from businesses claiming that the changes would cause substantial harm to businesses producing and selling the products, which understood by many in the industry to be legal after the Farm Bill change. Earlier this year, in March, 21 state attorneys general wrote to Congress asking lawmakers to regulate the substances at the federal level.

Some groups want to see an all-out ban on hemp-derived cannabinoids federally, but it’s unclear whether that will happen. An alternative plan, introduced this fall, would instead create a federal regulatory framework for hemp-derived cannabinoids, allowing states to set their own rules for products such as CBD while also empowering the Food and Drug Administration (FDA) to ensure that certain safety standards are met in the marketplace—including making sure that products aren’t marketed to children. Yet others say the government should aim for parity between marijuana and hemp products, for example by creating a common license type for all cannabis product retailers.

Photo courtesy of Chris Wallis // Side Pocket Images.

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