What to Know About North Dakota’s Upcoming Cannabis Ballot Measure

The race is on in North Dakota as we wait to see if North Dakota Initiated Measure 5 passes, effectively legalizing recreational marijuana in the Flickertail State. Should the measure pass, those interested in joining the burgeoning industry must prepare to navigate the complexities of the applications, licensing, and regulatory requirements. Here’s what you need to know about North Dakota’s upcoming cannabis ballot.

North Dakota cannabis on the ballot

Voters in North Dakota approved medical cannabis in 2016 and rolled out a regulated program the following year. In 2019, Governor Doug Burgum signed a bill to decriminalize the possession of small amounts of cannabis and reduce the penalties for larger amounts.

Voters rejected a 2018 initiative to legalize recreational cannabis in North Dakota at 59% to 41%. Residents tried to legalize cannabis once again in 2020, with the North Dakota Freedom of Cannabis Act, which never made it on the ballot because it was about 3,000 signatures short of the requirement. In 2022, residents turned in enough signatures to get cannabis on the ballot, but voters once again rejected the measure.

Recreational cannabis in North Dakota is on the ballot again this year. The measure would allow for the possession of cannabis as well as small home grows. It would also require a state department to establish regulations for the production and sale of recreational cannabis. Under the proposed measure, officials can award licenses to seven manufacturing (allows for cultivation and processing) and 18 retail facilities.

North Dakota cannabis licensing

Should voters approve Measure 5, officials will create rules and regulations for aspiring businesses. The state already has a medical cannabis market, so we can use the existing framework as a general guide for what to expect with legal recreational North Dakota cannabis.

How to start a cannabis business in North Dakota

In line with North Dakota’s current medical cannabis business structure, here’s what we expect will be required of those looking to start a cannabis business in the state:

• Business Plan
• Residency Verification
• Financial Statements
• Security Plan
• Compliance Plan
• Operating Procedures
• Background Check
• Application and licensing fees

Final thoughts

We are close to knowing if North Dakota will pass recreational cannabis this election cycle. While we can expect the rollout to be similar to the state’s medical cannabis program, we also expect the recreational program to have its own unique set of rules and regulations. We will

keep an eye on the race and provide updates as they come. If approved, we will update with more detailed plans for obtaining a North Dakota cannabis business license.

Are you interested in obtaining a cannabis business license in North Dakota? Call us to speak with an industry expert at 602-290-9424.

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