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November 7, 2018

Canna-Decision 2018: California Round-Up and National Outlook

In the wake of Election Day, the nation and the state of California are taking a long look at 2018 cannabis ballot measures that were passed. Let’s dig in on where the Golden State and the United States stand on marijuana.

Cannabis Acceptance in America Keeps On Growing

While voters in Michigan (full recreational use passed), Missouri (medicinal), Utah (medicinal again) sent a clear message that more US citizens than ever before are for legalization of cannabis, voters in North Dakota pumped the brakes a little on the canna-party. Still, on the whole, Election Day 2018 marks another step on the long path to legalization. As we touched on when looking at states like Massachusetts and New Jersey last month, never before have so many Americans approved of legalization and that showed in the 2018 elections. Let’s take a quick look at where each newly legalized state stands.

Michigan Proposal 18-1Michigan: While states such as Illinois and Ohio continue to plug away at medicinal efforts, Michigan is now the Midwest’s leader in adult-recreational use cannabis. Passage of Prop 1 means new business opportunities in Michigan and makes it the largest market in the region. Additionally, Michigan is now the second-largest market in the United States for cannabis.

  • Don’t expect cannabis to be commercially available until 2020 or so. As we’ve seen in countless states (California, Colorado, Washington, Massachusetts), on-boarding a legal marketplace from the ground up is a complex and time-consuming labor.
  • Consumers still must be 21+ and will be allowed to carry 2.5 ounces on their person. Michiganders will also be allowed to grow up to 12 plants for personal use. Important to note, landlords can prohibit tenants from growing.
  • The state’s Department of Licensing and Regulatory affairs has one year to develop a regulatory framework for cannabis retailers, cultivators, etc. Many anticipate that the state’s medical marijuana infrastructure will be a model for recreational.”Our licensing and regulatory infrastructure for medical marijuana can be scaled up to incorporate the oversight of adult-use marijuana,” Shelly Edgerton, director of LARA explained to the Detroit Free Press.

Missouri Amendment 2Missouri: Mizzou has passed a medical bill that is relatively similar to what other states have done regarding medical marijuana bills. There are two worthwhile and distinct features to Amendment 2, though:

  • Missouri’s bill affords medical professionals the right to determine what a qualifying patient is in the eyes of the law. Unlike other states that have seemingly arbitrary standards for determining “qualifying patient,” Missouri’s given this power to medical professionals working directly with patients. A notable and noble change.
  • There will be a 4% tax on medical cannabis that will go towards covering the program. Any excess tax revenue will go towards the Missouri Veteran Affairs funding.

Utah's Prop 2 is incremental progress on the cannabis front.Utah: As anticipated, Utah’s Prop 2 was largely a symbolic vote. State lawmakers in advance of Election Day had been working on a draft of a bill that is similar to Prop 2 (but with fewer retail locations and some other modest changes). The bill will go before a special session vote before the end of the year.

New California Cannabis Measures

California communities saw a large amount of ballot measures on Election Day. Maybe not so surprisingly, a lot of them passed! (USA! USA! USA!) and our friends over at the California Cannabis Industry Association have been keeping track of the results as they rolled in through last night and into the morning. Below, you’ll see their updated table with all results. For more info please head over to their full election coverage.

As it stands, a lot of  new communities wanting to get in on cannabis are going to be getting into the cannabis game –and learning all about compliance. Hi! We’re MMLG: “Yours in Compliance.” Areas such as Malibu and El Dorado County approved measures to allow recreational sales and, in the case of El Dorado, to cultivate and sell in unincorporated areas of the county. Meanwhile, Half Moon Bay, Filmore and Bakersfield, et al made it clear that they’re not sold on cannabis in their communities.

Location Title Result
Adelanto Measure S – ESTABLISHING MAXIMUM TAX RATES FOR CANNABIS BUSINESSES PASSED
Arvin Measure M – Commercial Cannabis Tax Measure PASSED
Atascadero Measure E-18 – Cannabis Business Tax PASSED
Atwater Measure A – Imposing a Cannabis Business License Tax PASSED
Bakersfield Measure O – Medical Marijuana Business Authorization and Tax FAILED
Banning Measure N – Cannabis Business Tax PASSED
Banning Measure O – Cannabis Dispensary Tax PASSED
Benicia MEASURE E – ESTABLISHING AN ANNUAL CANNABIS BUSINESS TAX PASSED
Carson Measure CA – Adopt a City Charter to Provide Greater Local Control Through Provisions FAILED
Capitola Measure I – Cannabis Business Tax PASSED
Calexico Measure K – Cannabis Business Tax PASSED
Ceres MEASURE W: CANNABIS BUSINESS LICENSE TAX PASSED
Chula Vista MEASURE Q – CANNABIS BUSINESS TAX PASSED
Colfax Measure C – Cannabis Business Tax PASSED
Colton Measure U – ESTABLISHING A GENERAL TAX ON CANNABIS BUSINESSES PASSED
Contra Costa County Measure R – Cannabis Business Tax PASSED
Daly City Measure UU – Business License Tax on Cannabis Businesses PASSED
Del Norte County Measure B – Cannabis Tax PASSED
Dunsmuir Measure T – Cannabis Industry Tax Ballot Measure PASSED
Emeryville Measure SS – Emeryville Cannabis Business Tax PASSED
El Dorado County Measure N – Cannabis Business Tax PASSED
El Dorado County Measure Q – Outdoor and Mixed Light Cultivation (Recreational) PASSED
El Dorado County Measure P – Outdoor and Mixed Light Cultivation (Medical) PASSED
El Dorado County Measure S – Indoor Recreational Commercial Cannabis Measure PASSED
El Dorado County Measure R – Indoor Medical Cannabis Activities Measure PASSED
Filmore Measure T – TO ALLOW AND REGULATE COMMERCIAL MEDICAL CANNABIS CULTIVATION FAILED
Fresno MEASURE A: CANNABIS BUSINESS LICENSE TAX PASSED
Goleta MEASURE Z2018 – CANNABIS BUSINESS TAX PASSED
Hanford Measure C – Cannabis Business Tax PASSED
Half Moon Bay Measure GG – Cannabis Nursery Ballot Measure PASSED
Half Moon Bay Measures EE, SS, MM – Cannabis Advisory Ballot Measure ALL 3 FAILED
Half Moon Bay Measure AA – Commercial Cannabis Tax Measure PASSED
Hemet Measure Z – CITY-SPONSORED INITIATIVE TO TAX AND PROHIBIT COMMERCIAL CANNABIS ACTIVITIES PASSED
Hemet Measure Y – CITIZEN-SPONSORED INITIATIVE TO REGULATE AND TAX COMMERCIAL CANNABIS ACTIVITIES FAILED
Hesperia MEASURE T – COMMERCIAL CANNABIS TAX MEASURE PASSED
Imperial Measure I – Cannabis Business Tax PASSED
Jurupa Valley MEASURE L – TO ALLOW, REGULATE, AND TAX MEDICAL AND ADULT-USE COMMERCIAL CANNABIS ACTIVITIES PASSED
Kern County Measure J – POTENTIAL RESTRICTION ON RECREATIONAL CANNABIS AND CANNABIS TAX FAILED
Kern County Measure K – REMOVING PROHIBITION ON COMMERCIAL CANNABIS AND INSTITUTING A TAX FAILED
La Mesa Measure V – Commercial Cannabis Business Tax PASSED
Lake County Measure K – Cannabis Business Tax PASSED
Lassen County Measure M – Cannabis Tax Ballot Measure PASSED
Lindsay Measure G – Commercial Cannabis Business Tax PASSED
Lompoc MEASURE D2018 – ESTABLISHING A CANNABIS BUSINESS TAX PASSED
Los Angeles MEASURE B – CHARTER AMENDMENT TO ALLOW THE CITY TO ESTABLISH A MUNICIPAL FINANCIAL INSTITUTION FAILED
Malibu Measure G – Citizens Initiative to Allow and Regulate Cannabis business; Permit Existing Medical Marijuana Dispensaries to Add Sale and Delivery of Recreational Cannabis; Impose a 2.5% Tax on Gross Receipts for Non-Medical Cannabis Sales PASSED
Marina MEASURE V – MEASURE TO ALLOW, REGULATE, AND TAX MEDICAL AND ADULT-USE COMMERCIAL CANNABIS ACTIVITIES PASSED
Maywood Measure CT – Commercial Cannabis Activity Tax Measure PASSED
Morgan Hill MEASURE I – IMPOSING A SUPPLEMENTAL LICENSE TAX UPON CANNABIS BUSINESSES “CANNABIS BUSINESS TAX” PASSED
Moreno Valley Measure M – Commercial Cannabis Activity Tax PASSED
Morro Bay MEASURE D-18 – CANNABIS TAX MEASURE PASSED
Mount Shasta Measure S – Cannabis Industry Tax PASSED
Mountain View Measure Q – Imposing a Cannabis Business Tax on Commercial Cannabis Activities PASSED
Nevada County Measure G – Cannabis Tax Ordinance PASSED
Oakland Measure V – Cannabis Tax Flexibility PASSED
Oakdale Measure C – Cannabis Business Tax PASSED
Oroville Measure T – Cannabis Business Tax PASSED
Oxnard MEASURE G – CANNABIS BUSINESS TAX PASSED
Palm Desert Measure Q – Cannabis Business Tax PASSED
Paso Robles MEASURE I-18 – CANNABIS BUSINESS TAX PASSED
Patterson Measure Y – Cannabis Business Tax PASSED
Perris Measure G – Commercial Marijuana Distribution and Manufacturing Operations Tax Measure PASSED
Placerville Measure M – Cannabis Business Tax Ballot Measure PASSED
Plumas County Measure G – Enacting a County Ordinance on Cannabis Activities FAILED
Pomona Measure PC – Cannabis Business Tax Measure PASSED
Redding Measure C – Cannabis Business Tax PASSED
Redwood City Measure DD – Cannabis Business Tax Measure PASSED
Riverbank Measure B – Cannabis Tax Measure PASSED
San Bernardino MEASURE W – CANNABIS TAX MEASURE (CITY COUNCIL INITIATIVE, NOVEMBER 2018) PASSED
San Bernardino MEASURE X – AMENDING AND REENACTING CHAPTER 5.10 TO REGULATE COMMERCIAL CANNABIS ACTIVITIES (NOVEMBER 2018 PASSED
San Carlos Measure NN – Cannabis Tax Measure PASSED
San Francisco Proposition D – Cannabis Tax Measure PASSED
San Joaquin County Measure B – Imposing a Cannabis Business Tax on Commercial Cannabis Activity FAILED
San Juan Bautista MEASURE I – CANNABIS BUSINESS ACTIVITIES TAX ORDINANCE PASSED
San Luis Obispo MEASURE F-18 – CANNABIS BUSINESS TAX MEASURE PASSED
Santa Ana Measure Y – Tax on Commercial Cannabis Businesses PASSED
Santa Clara MEASURE M – CITY OF SANTA CLARA COMMERCIAL CANNABIS ACTIVITY MEASURE PASSED
Santa Paula Measure N – Cannabis Tax PASSED
Simi Valley Measure Q – Cannabis Tax PASSED
Simi Valley Measure R – Commercial Cannabis Advisory Measure FAILED
Simi Valley Measure S – Marijuana Overlay Zones Advisory Measure FAILED
Sonora Measure N – Cannabis Business License Tax Measure PASSED
Solvang MEASURE F2018 – ESTABLISHING A CANNABIS BUSINESS TAX PASSED
Suisun City Measure C – Imposing a Cannabis Business Tax on Commercial Cannabis Activities PASSED
South San Francisco Measure LL – Cannabis Business License Tax PASSED
Thousand Oaks Measure P – Cannabis Tax PASSED
Tracy MEASURE D – IMPOSING A CANNABIS BUSINESS TAX ON COMMERCIAL CANNABIS ACTIVITIES FAILED
Tuolumne County Measure M – Commercial Cannabis Tax Measure PASSED
Union City Measure DD – Cannabis Business Tax Ordinance PASSED
Vista Measure Z – Citizen Dispensary Measure

PASSED

Vista Measure AA – Cannabis Business Tax Measure PASSED
Vista Measure BB – MEDICINAL CANNABIS BUSINESS ORDINANCE MEASURE

FAILED

Willits Measure I – Cannabis Industry Tax PASSED