Cannabis Initiatives Win 2020 Election

By Shelley Swearingen | November 5, 2020


On November 3rd, millions of Americans spoke loud and clear: they want legal weed. Five states placed marijuana legalization on their ballots this year, and marijuana won approval in all five state elections.


Montana, Arizona, and New Jersey approved the institution of recreational marijuana markets. Mississippi approved the creation of a medical market, and South Dakota approved the legalization for all various forms of use.


The creation of these new markets means millions of dollars in sales to entrepreneurs as well as a massive influx of tax dollars to local governments. The legalization of cannabis within these states could also have an influence on bordering neighbors.  

Projected Sales

Here’s a breakdown of projected sales per state:


StatePopulationProjected 1st year sales
Arizona7,300,000+ $375,000,000
Mississippi2,900,000+ $240,000,000
Montana1,100,000+ $217,000,000
New Jersey8,900,000+ $375,000,000
South Dakota884,659+ $1,500,000

Polls have shown historically that most Americans are in favor of legalizing marijuana for medicinal use, but the country is torn more evenly on the issue of recreational use. The results of these elections show that the country is viewing marijuana more favorably than previously.

Licensing

In Arizona, existing cannabis operators will automatically receive licensure within the recreational market, and an additional 26 licenses will be issued to social equity applicants.


In Mississippi, there is no ceiling on the number of licenses available to cannabis businesses, and these licenses are required to be issued prior to August 15, 2021. That’s a very quick timeline for the creation of a new market.


Montana will require all license holders to be residents, but like Mississippi, there is no limit to the number of licenses to be issued.


New Jersey currently has a robust medical marketplace, and these operators will probably have the first opportunity to apply or be grandfathered in to the new recreational system.


The licensing guidelines within the proposed legislation in South Dakota are vague and will more than likely cause litigation or require further clarification. One clear rule states that municipalities may not ban medical dispensaries, but may limit the number of operations within its borders.

Cannabis Facility Design & Security

It’s safe to assume these states will look to other states for guidance on the design of new compliance and regulation legislation. KL Security has worked with various cannabis companies nationwide of all sectors: craft growers, secure transporters, large scale grow operators, medicinal pharmacies, recreational dispensaries, etc. We have assisted license applicants in multiple states in their architectural and schematic design concepts and application. Whether you’re in the application process or construction planning phase, we are ready and willing to help make your operation successful by driving revenues while maintaining compliance.

Focus Areas:
  • Security Plans and Intelligent IP Camera Systems
  • Cash Safes and Cash Management
  • Cannabis Vaults & Secure Rooms
  • Transportation cages and security
  • BR Rated Glass Partitions and Display Cases
  • DEA Approved Security Safes

Call 866-867-0306 or email [email protected]

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. The information contained in this site is provided for informational purposes only.

SOURCES:

Arizona One Step Closer to Recreational Marijuana Market

By Shelley Swearingen | August 11, 2020



Earlier this year, Arizonans banned together in an attempt legalize marijuana. Marijuana is currently legal for medicinal use in the state, but residents would like to see access made available for all adults.


The issue was set to be voted on within the November ballot. A petition was submitted earlier this year by constituents; the initiative required 237,645 signatures and Smart and Safe Arizona (the group spearheading the initiative) acquired 420,000.


Opposition to this proposal was met by Arizonans for Health and Public Safety, a group backed by the Center for Arizona Policy (conservative group that supports ‘right-wing’ legislation). It’s safe to assume this group is also anti-cannabis legislation of any kind, but attacked the proposal on the basis that it doesn’t adequately address cannabis sales tax increases, driving under the influence, or marijuana potency. It also claimed the initiative is ‘confusing and deceptive’.  Based on these theories, the group filed a lawsuit challenging the pro-cannabis initiative.


And late last week, this suit was rejected. A Superior Court Judge ruled the provisions had be addressed sufficiently and found the initiative was not lacking. The judge found their claims to be unfounded. This was a huge win to the voters of Arizona. For now, the issue of legalizing marijuana for all adult Arizonans will be resolved in November by voters.


The recreational market is proposed to favor existing medical marijuana operators and also designate 26 new licenses specifically for social equity applicants.


Using data from the US Census Bureau and assuming the Arizona market would resemble the Illinois market, we can figure that Arizona might have had $170,322,000 in sales (so far) in 2020. That would have brought in over $27,000,000 in tax dollars for the state.*

Here at KL Security, we observe and implement a holistic approach to cannabis facility compliance and safety. We assist dispensaries, pharmacies, secure transporters, craft growers, large scale growers, and testing facilities in achieving revenue goals through protecting assets. We assist with security planning and SOPs for security protocols that prevent diversion of cash and cannabis products at all steps within a marijuana business’s lifetime: from licensing to successful operation to inspections. If you need assistance with the security portion of an application, want to learn how to make your operation safer, or are concerned about compliance – contact the consultants at KL Security at 866-867-0306 or at [email protected]


Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.


*9,900,000 estimated adults in Illinois and $300,000,000 in sales (YTD Jan-Aug 2020) equated to roughly $30.3 spent per adult resident.5,677,400 estimated adults in Arizona = $170,322,000