Arizona just legalized recreational cannabis, opening the door to a $790 million market for major marijuana firms
- Arizona just voted to legalize recreational cannabis, as did New Jersey, Montana, and South Dakota.
- The initiative, called Proposition 207, allows adults over the age of 21 to possess up to 1 ounce of cannabis.
- The state has had a medical cannabis program since 2011 and tried once before to pass an adult-use program.
Arizona became one of four states to legalize cannabis for all adults, after voters passed a ballot initiative that would make marijuana legal for everyone over the age of 21.
The measure has the support of almost 60% of Arizona voters, according to preliminary results from Decision Desk HQ.
Every state that voted on cannabis on Tuesday loosened restrictions on the drug. Four states legalized cannabis for all adults (New Jersey, Arizona, Montana, and South Dakota) and two voted in favor of medical-marijuana programs (South Dakota and Mississippi), according to Decision Desk HQ and the Associated Press.
Arizona's initiative, Proposition 207, comes four years after a separate measure to legalize marijuana failed to garner enough support. Some cannabis giants backed the ballot initiative, including Curaleaf, Cresco, and Harvest Enterprises.
The program will be headed by the Arizona Department of Health Services (ADHS), which currently oversees the state's medical marijuana program. ADHS is required to lay out the state's adult-use cannabis regulations on or before April 5, 2021.
Marijuana Business Daily projects that the market could reach $790 million in annual sales by 2024.
Details on legalization in Arizona:
- Adults would be allowed to possess up to 1 ounce of cannabis, 5 grams of which can be concentrates, under the new regulations.
- Arizonans would be allowed "home cultivation," meaning they would be allowed to grow cannabis plants in their homes. Each person would be limited to 6 plants individually or 12 plants total in a household of two adults over the age of 21.
- "Qualified early applicants," namely medical dispensaries currently operating in Arizona, will be given the opportunity to submit early applications for recreational licenses between January and March of 2021, after which remaining licenses will be distributed by random selection.
- There will be a 16% tax on cannabis sales, which will go toward community colleges, police, fire departments, and public health programs.
Important dates:
- April 5, 2021: The date we can expect to see more rules laid out for Arizona's adult-use program
- July 12, 2021: The date those convicted of possessing less than an ounce of cannabis will have their records expunged
- Jan 1, 2023: The date the ADHS can adopt recreational cannabis delivery regulations
Read the ballot initiative here.