Despite federal efforts to reform drug policy in 2023 increasing, U.S. state governments continued to push for marijuana legalization throughout the last year. States have passed new legalization measures and launched adult-use sales. They also set sales records.
State legislators also continued to make changes to the laws governing legal cannabis, including how to regulate private use and commercial activity. In 2023, there were several trends. These included allowing state-level tax deductions for legal marijuana businesses, protecting workers who consume cannabis while on duty, and preparing to expand interstate cannabis commerce.
Here are the top marijuana stories in 2023.
State-Level Legalization
In 2023, five more U.S. States and Territories will have passed legislation legalizing marijuana. Hawaii and New Hampshire are two other states that have made some progress on the road to reform, despite some bumps. Oklahoma voters rejected a legalization initiative, and some cities in Texas voted on decriminalization measures with mixed results.
Minnesota
In May, Gov. Tim Walz, (D), signed into law a reform bill to legalize marijuana in Minnesota. As of August 1, penalties for simple possession or home cultivation will be removed. While regulators are still seeking public input in preparation for a system regulated sales, some legal retailers on tribal lands have already opened.
Red Lake Band of Chippewa Indians , for instance, opened their medical dispensaries in August to adult consumers , and announced plans to introduce a mobile retail vehicle that will sell marijuana across the state. White Earth Nation also opened an adult-use marijuana shop after its governing council voted to approve marijuana sales. The Leech Lake Band Of Ojibwe is also moving to legalize.
According to Minnesota’s Office of Cannabis Management, broader state regulations may not be implemented until 2025. This means that broader retail sales will likely take a while.
Before Walz even signed the reform law, had launched a website to serve as a central hub of information on the new legislation. The state also started soliciting vendors who could help develop a licensing system.
Since then, other legalization-related modifications have been made, such as the creation of the Cannabis Expungement Board. This will facilitate the sealing of records for those with marijuana convictions that are eligible. The review of eligible cases started in August.
The Minnesota Supreme Court ruled in September that the smell of marijuana alone does not constitute probable cause to allow police officers search a car.
In the same month, OCM ran into a notable snag when Erin DuPree resigned after just one day after a Star Tribune reported that her hemp shop was allegedly selling illegal products.
Ohio
Ohio’s voters approved Issue 2 in a closely-watched vote during the November election. This made Ohio the 24th state to end the cannabis prohibition. Republicans in the Senate announced plans to amend the new law almost immediately. Legalization supporters criticized this move as an attempt to subvert state voters’ will.
GOP lawmakers said the changes were needed because voters did not understand the initiative’s provisions. The Senate has rushed to implement the changes, but the House of Representatives have been slower and refused to act until the end of the year.
Gov. Mike DeWine, (R) stated earlier this month that Senate’s amendment proposal is a good bill. He also said that he spoke with House Speaker Jason Stephens, (R), and was assured that the chamber will take up the matter once they return to session. The Ohio legislature is scheduled to reconvene mid-January.
The GOP House and Senate have differed over certain procedural questions related to amending marijuana laws, such as timelines for enactment. However, they both expressed general support for making changes, including revising tax structures, preventing public use and discouraging impaired driving.
As we enter the New Year, advocates are still concerned about the Senate’s plan. Reformers claim that even though it has been significantly modified from its original version in committee — restoring home cultivation for example — it still undermines voters’ will.
DeWine complained in a TV interview at the end of the year about what he called a “ridiculous” situation where marijuana was legalized for possession and use, but there were no legal retailers. DeWine stated in a TV interview that “the legislature needs to act now so that Ohio can start selling marijuana legally and that they control the way it’s being sold.”
Local activists won a series on municipal level victories in three Ohio cities , Harbor View, Risingsun, and Sugar Grove, as voters legalized marijuana statewide.
Delaware
Delaware Governor John Carney vetoed reform proposals in the session of last year. John Carney (D ) permitted a pair marijuana bills to be passed in April . This made Delaware the 22nd state to legalize cannabis for adult use. The first measure legalized the marijuana, and the second set up a system of legal sales.
Carney, who said he was still against the policy changes at the time, explained that he felt it was “time” to “move on” and focus on other issues. Even if Carney decided to veto both bills, they would have passed the legislature and had more than enough support for him.
The measure, sponsored by Rep. Ed Osienski, (D), allows adults to buy up to one ounce of marijuana from a licensed retailer. However, home cultivation remains illegal. While sharing marijuana between adults is permitted, it’s prohibited to give marijuana to another adult “concurrently with another reciprocal exchange between the same parties”. This is to avoid the gray market sales schemes that have been seen in other states.
The legal sales of cannabis are not expected to start until late 2024.
Delaware’s new marijuana law allows local governments to opt out from legal cannabis commerce. Some of the state’s beach towns, despite being known for their boozy party atmospheres , have already banned marijuana businesses.
Separately in March, Delaware’s Senate passed a resolution that urges state representatives to back legislation that ends federal prohibition of cannabis.
U.S. Virgin Islands
About a year ago the U.S. Virgin Islands Governor. Albert Bryan Jr., (D), began 2023 with two bills to legalize marijuana for adults as well as facilitate automatic cannabis expulsion. He joined the Northern Mariana Islands and Guam in adopting the reform. Bryan passed a medical cannabis law in 2019.
Sarauw said that despite political tensions with the Governor over what he described as delays, she was “grateful” that he put politics aside to sign the bill. She also expressed her excitement for “the next steps, and to see the Governor really do something to establish the infrastructure that will allow this industry to thrive.”
While there has been some criticism about the legalization process, the licensing of the industry is stalled because of the lack of a fully-formed regulatory body. Sarauw and other reform advocates are particularly frustrated by the delays in the equity provisions of the law.
In November Bryan’s administration asked those with previous marijuana convictions “proactively” to reach out to see if they were eligible. Citing “recent changes which have made the expunction process more complicated than originally intended.”
Maryland
The state legislature finally resolved the differences between two bills that would regulate marijuana sales in April, only months before voters’ approved law went into effect.
It’s our responsibility. C. T. Wilson, Chairman of the House Economic Matters Committee (D), said in the House before the vote to pass the bill. “This isn’t the perfect vehicle but it’s the best we can do based on the information we have. We want to ensure that, by July 1, we can fulfill our duties to our citizens that wanted recreational marijuana.”
The measure passed set the tax rate on adult-use marijuana to 9 percent, but does not tax medical marijuana.
The majority of medical marijuana dispensaries opened their doors to adults in July. The state also passed two other laws at the same time. One prohibits police officers from searching based solely on the smell or possession of marijuana. Another prevents officials from interpreting the responsible and lawful use of cannabis by guardians and parents as “neglect.”
Kentucky
A bill signed by Gov. Andy Beshear , a Democrat from Kentucky, made Kentucky the 38th state in the U.S. to legalize medical cannabis. This means that more than three-quarters of states have adopted this reform. It was sponsored by Senator Stephen West (R).
In the past, House members had introduced similar measures, only for them to be stalled in the Senate. But things were different in 2023. The other organ took the lead in advancing the issue.
The bill prohibits smoking marijuana, but patients may still obtain raw flower for vaporization. Home cultivation is also illegal.
The Kentucky Center for Cannabis will accept patients with cancer, severe pain or epilepsy or multiple sclerosis. They can also have muscle spasms, spasticity or chronic nausea and cyclical vomiting.
The main provisions of the law will take effect January 1, 2025.
In the past year, the legislature of the state, which already produces a lot of hemp, submitted a bill that would regulate sales of delta-8 THC-containing products, a measure Beshear also signed into law.
New Hampshire, Oklahoma Hawaii, North Carolina, and Texas are all worthy of mention
The New Hampshire commission was to make recommendations on the legalization of marijuana at the start of December. But the plan collapsed at the final meeting. Members, some of whom were against the reform , could not reach a consensus. A list of last-minute demands from Gov. Chris Sununu, who originally directed members to investigate a state-run store system, further divided the group. Some lawmakers, despite the failure of the effort, have previewed several competing legalization measures ahead of the next legislative session. Others are focusing on reforms to the existing medical marijuana system in the state.
In Oklahoma voters rejected a ballot measure that would have legalized adult marijuana in a March vote by a margin of 62-38. State Question 820, the cannabis reform proposal, was the only one on the ballot in most counties, which is a first in the history. State Republican Party officials and GOP elected officials urged voters not to accept the measure. The reform was supposed to be on the ballot in November 2022, but due to delays in the signature verification process by state officials and the subsequent ruling of the Supreme Court in litigation it did not qualify.
After Hawaii attorney general Anne Lopez (D), announced her support for cannabis legalization on April 1, her office released in November a comprehensive proposal, and several lawmakers have expressed an interest in moving forward with it. They also asked for revisions that would strengthen equity provisions and eliminate language that could perpetuate the criminalization of cannabis. Hawaii legislators have introduced legalization bills in recent sessions. The Senate passed a reform measure in March but it has yet to be implemented. David Tarnas, the chairman of the House Judiciary Committee (D), said Lopez had done “a good job bringing together all the different input and presenting a comprehensive bill.” Sen. Jarrett Keohokalole, the chair of the Senate Commerce and Consumer Protection Committee (D), called Lopez’s proposal the “best version” to date.
North Carolina legislators made an attempt to legalize medical cannabis in 2023. A bill was passed through the Senate in march. After months of stagnation, Tim Moore (R), Speaker of the House in July , declared that the proposal was dead for the entire year. Several months later, however the Eastern Band of Cherokee Indians was the the first jurisdiction in North Carolina to legalize marijuana. The tribe passed the measure 70-30 in September despite threats by North Carolina legislators. The tribe legalized medical cannabis in the past and issued , the first legal medical cannabis cards within North Carolina, in October.
In Texas a number cities have made notable policy decisions this year. The most notable decision was made by Lubbock leaders who voted to place a local marijuana-decriminalization initiative before voters in a May 2024 special election. had unanimously rejected a decriminalization measure that activists put on the agenda a month before after submitting enough signatures. In Harker Heights, earlier this year, voters narrowly reaffirmed the cannabis decriminalization measures they had previously approved. However, local officials later repealed those measures. San Antonio voters rejected a initiative to decriminalize marijuana. The proposal was part of a measure which would also have blocked the enforcement of abortion restrictions.
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New York and Three States Legalize the Sale of
In 2023, legal sales will also be available in Maryland, Missouri, and Connecticut. New York saw limited sales start on December 29, 2022. This year, despite delays that frustrated many new licensees, the state continued to open storefronts.
Maryland
Maryland legislators worked quickly in 2023 to approve a bill regulating sales just a few short months before the legalization of marijuana in this state, which took place in July. By the beginning of July, more than 100 medical marijuana dispensaries were approved to serve adults over 21. In the first weekend after legal recreational sales began, storefronts had sold more than 10 million dollars worth of products. Maryland Cannabis Administration reported in December that the state had collected more than 12 million dollars in marijuana tax revenue in the first three month of legal sales. A top Maryland regulator spoke with Marijuana Moment earlier in the year to explain how quickly the state set up its new system.
Missouri
Missouri’s first non-medical marijuana sale was in February 2023. This followed voters’ approval of a legalization measure just the previous November. had created thousands of jobs in less than two months following the launch. After the first month, the state’s marijuana market had generated $102.9 million sales — including $72 million for recreational marijuana. The combined sales had increased by almost a quarter to $126,000,000 in the following month.
Connecticut
Connecticut started 2023 in January with the opening the first state-wide adult-use marijuana store. State regulators awarded hybrid licenses to existing medical marijuana providers in order to supply both markets. “Today marks an important turning point in the injustices brought about by the drug war, especially now that there’s a legal alternative for the underground, dangerous market of cannabis sales,” said Gov. Ned Lamont, a Democrat at the time, said that it was a turning point in the injustices caused by the war on drugs. As the year ended, regulators reminded consumers that while alcohol sales are prohibited on holidays like Thanksgiving, marijuana stores can remain open. Regulators reminded customers that alcohol sales were prohibited on major holidays such as Thanksgiving and New Year’s Day. However, marijuana shops could remain open.
New York
Although New York stores began selling marijuana to adults in the last days of 2022 technically, the sales didn’t start until this year in the majority of the state. Even then, in 2023, the launch was slower than expected due to a court order that halted the processing of business licenses. Regulators have a backlog containing hundreds of conditional retail licenses. Only 34 retailers in the state had licenses by December 2023. Officials said that they expect another dozen shops to be opened before the end of the calendar year. During the long-delayed legalization process, illegal cannabis operators proliferated. The governor announced that the state will “intensify” enforcement. In an effort to increase consumer access to legal cannabis, regulators launched the Cannabis Growers Showcase program (CGS), a project of OCM, which allowed licensed growers to sell directly to customers. The program is now over, but an Assembly member says he’ll be filing legislation to extend it. The New York Senate Cannabis Subcommittee was established in April and has invited witnesses to discuss possible legislative solutions to state’s ongoing problems with cannabis legalization implementation.
States set records for legal marijuana sales
In 2023, a handful of states will set sales records for legal marijuana. Some of these records may be multiple records in a short period of time. At least seven states set sales records in August, including Montana ($28.7 millions), New Mexico ($48million), Connecticut ($25million), Maine ($22million), Massachusetts ($139.3million), and Maryland ($92million). Rhode Island set a new state record with its $9.7 million in monthly sales. This was the fourth consecutive month.
In Maine, the legal cannabis market accounted for over $200 million during the same period. Arizona’s legal marijuana sales for 2023 surpassed the $1 billion mark in September.
In the course of the year, medical marijuana sales declined in many states that had just begun adult-adult use programs. Retail sales increased. Maryland set adult-use records despite a slight drop in overall sales. In some states, like Connecticut, the increase in sales to adults has more than compensated for the decline in medical receipts.
Illinois hasn’t had a record-breaking month for marijuana sales since December 2022. However, in November, retailers were able to sell more marijuana than ever before. has made more money from cannabis than alcohol in the past, and this trend is expected to continue. Michigan made more revenue tax-wise from marijuana than alcohol. cannabis revenues grew nearly 50%.
Colorado , the first state to legalize marijuana, reported this year that it had sold $15 billion worth of marijuana in the last decade.
Marijuana businesses can now claim tax deductions in more states
In 2023, the legal cannabis industry was still subject to IRS tax rule 280E. This prohibits marijuana businesses from taking standard deductions for business on federal tax returns. In a few legislatures, lawmakers tried to implement state-level tax changes that would treat marijuana businesses more equally.
New York, Illinois and Maine were among the states that adopted a state level version of marijuana tax reform in the last year. House members in Pennsylvania approved a similar cut to the tax rate in October, despite opposition from Republicans.
New York Gov. Kathy Hochul (D), who was also a signatory to a bill that eased marijuana banking compliance, did so as the congressional reform efforts dragged on.
States Gear Up For Interstate Cannabis Commerce
While the federal prohibition of cannabis still prevents cross-border commerce, many states have taken steps to prepare for the nationalization that they see coming. Washington State’s governor, for instance, signed into law a bill in May that would have allowed the state to enter compacts for interstate cannabis commerce. However, it required a federal policy shift first “allowing or tolerating cross-border trade”. Oregon , California and Oregon are all positioned now to allow cannabis imports and exports within their borders. Maine lawmakers rejected a similar proposal this year.
While some local government groups in California had said that the activity a href=”https://www.marijuanamoment.net/allowing-interstate-cannabis commerce-wouldn’t risk federal enforcement actions/a>, the state’s attorney general stated that engaging in cross border commerce could put California at’significant legal risk. Although some local government groups had stated that the activity would not invite federal enforcement action but the state’s Attorney General said in December, engaging in cross border commerce at this time would place California in a’significant risk’.
Advocates are calling for regulators to adopt an universal symbol that can be applied to packaging of cannabis products. Some warn, however, that opening a national cannabis market without adequate protection can create monopolies, and hinder state-level equity initiatives.
Cannabis users are protected by anti-discrimination policies
Some states have taken steps to eliminate the stigma surrounding marijuana and cannabis use, after decades of prohibition.
Gov. Gavin Newsom, a Democrat from California, signed into law a bill in October that prohibits most employers asking about previous marijuana use. This change will take effect on January 1, 2020. The new law builds on the existing employment protections passed last session, which prohibited employers from penalizing workers who used marijuana according to state law while off the clock.
The reform expanded on a previous measure lawmakers approved to protect local government employees against a data-google-interstitial=”false” href=”https://www.marijuanamoment.net/workplace protections for dc medical marijuana patients extended under emergency bill/” rel=”noopener” target=”_blank>workplace discrimination due to their use of medical cannabis/a>. This reform was an expansion of a measure that had been approved by lawmakers to protect local government workers from workplace harassment due to their medical cannabis use. In New York too, there are exceptions for jobs that require a high level of safety and those that fall under federal regulation.
In Colorado, Gov. Jared Polis (D) signed a bill that codifies an executive order issued by Polis in 2022. The measure prevents regulators from revoking or denying professional certifications, licenses or registrations based on criminal or civil violations relating to cannabis-related activities that have been legalized under state law.
Washington State passed a law that prohibits discrimination against potential employees who use cannabis during the hiring process. However, employers can still fire or discipline employees once they are hired for cannabis use.
The Commonwealth of the Northern Mariana Islands passed a similar law this summer that would eliminate pre-employment drug testing in most government positions on the U.S. territory.
Michigan officials also proposed that pre-employment marijuana drug tests be discontinued for the majority of government job applicants. They also offered people who have already been punished for positive THC test results an opportunity to get their sanction rescinded retroactively.
In Louisiana, the House Committee advanced a proposal to prevent employees who use medical cannabis being denied unemployment benefits. However, this proposal was not furthered.
The Most important federal and congressional marijuana policy developments of 2023
The post New legalization laws, Marijuana sales records and the other top state developments of 2023 first appeared on Marijuana Moment.
