Cannabis News in the Southeast

The Southeast region of the United States includes Mississippi, Maryland, Georgia, Arkansas, Florida, Virginia, Missouri, Alabama, Tennessee, Kentucky, South Carolina, North Carolina, Louisiana, Delaware, West Virginia, and Washington, D.C.

Though a few states in the Southeast have legalized adult-use cannabis, many have established a medical cannabis program. Within the last few months, especially with the November ballot drawing closer, many states are looking to either establish a medical or adult-use cannabis program, or expand their existing programs.

Mississippi

Mississippi became the 37th state to legalize medical cannabis in February with the Mississippi Medical Cannabis Act. The state has seen many delays in the roll out of a legal cannabis program, including in 2020. Though voters had passed Initiative 65 to create a legal medical cannabis program, the state’s Supreme Court overturned the vote citing a constitutional technicality. Despite Mississippi’s successful legalization this year, some cities are already taking steps to ban medical marijuana businesses within their borders. The state has a May 3^rd deadline for cities that wish to opt-out of dispensaries, cultivation facilities, or both.

Maryland

Maryland will decide whether or not to legalize recreational cannabis through a voter referendum this November. If the people of Maryland vote in favor of recreational cannabis, the legislation will be enacted starting July 2023. The new law would allow for possession of up to 1.5 ounces of cannabis and home cultivation of up to two plants.

Georgia and Arkansas

Georgia medical marijuana patients are allowed to legally possess cannabis oil with up to 5% THC, but there is currently no legal way to purchase the oils. Although Georgia approved a medical marijuana program in 2015, dispensaries are blocked by an ongoing lawsuit preventing any medical marijuana sales in the state. Sixteen applicants have challenged the licensing process as being fatally flawed. Though a compromise bill that would have reopened licensing and could have increased the license cap had gained traction, the bill ultimately failed and the Georgia medical cannabis program is back on hold.

Georgia is not the only state in the Southeast facing lawsuits over cannabis business licensing. Arkansas is currently involved in a lawsuit over alleged racial bias that is preventing the last two medical cannabis licenses from being granted.

Florida

Florida was unable to get a recreational cannabis bill on the ballot for this year and will now focus efforts on 2024. The state’s Supreme Court had initially rejected the language of the ballot measure that would have allowed the legalization of recreational cannabis through voter initiative. Though the language was revised, it ultimately did not receive the required signatures for inclusion. Florida is in the process of scoring the applications for one medical license, called the Pigford Black Farmer License and the application period ended in March.

Virginia

Though it is legal to possess cannabis in Virginia, there are not yet legal cannabis retailers. The Virginia recreational program will not kick off until 2024 and it will likely take time to get regulated cannabis products on the market. Until then, people in Virginia will have to rely on the state’s medical market for access to cannabis, a program which is growing slowly and is still relatively small compared to the population.

Missouri

The Cannabis Freedom Act is pending discussion in the Missouri House. The legislation would legalize the possession and sale of cannabis, the licensing of social consumption facilities, as well as provide opportunities for expungement for cannabis-related offenses.

Alabama

Though Alabama legalized medical cannabis in 2021, there is still much debate in the state on what the program should look like. A Senate committee is moving forward with a bill that places unprecedented restrictions on the purchase of medical cannabis. The bill would require women to receive a negative pregnancy test from a licensed lab prior to purchasing medical cannabis. This legislation is very likely to be challenged as non-constitutional.

Tennessee

The Free All Cannabis for Tennesseans Act, which seeks to legalize adult-use cannabis and expand the medical program, will soon be going before a legislative committee. The new law would allow for possession of up to 60 grams of cannabis flower or 15 grams of cannabis concentrate, as well as the home cultivation of up to 12 plants.

Kentucky

In March, the Kentucky House passed a bill aimed at regulating medical cannabis in the state. The new bill would allow medical cannabis prescriptions for a set list of conditions, including epilepsy and cancer, and would authorize four cannabis business types: cannabis farmers; processors; dispensaries; and safety testers. The bill awaits discussion in the Senate.

North Carolina

Though North Carolina does not yet have any legal cannabis program, the state has been considering establishing a medical cannabis program. The Compassionate Care Act has bipartisan support and would allow for 10 medical cannabis licenses, with up to four dispensaries each. The bill is headed to the Senate and if approved, will then be presented to the House.

South Carolina

A bill legalizing medical marijuana in South Carolina has now passed both the House and the Senate. Though the bill was blocked in 2021, efforts to pass the legislation have led to the bill’s description as the “most conservative medical cannabis bill in the country.” The bill now moves on to a full-committee public hearing.

Louisiana

Many bills have been filed in Louisiana in an attempt to expand the state’s medical cannabis program. Much of the legislation was aimed at increasing medical cannabis access in the state, including seeking to raise license caps and allow nurse practitioners to recommend cannabis for patient use.

Delaware

Though cannabis legislation failed in the Delaware House earlier this year, two bills have been submitted which aim to legalize the possession and trading of cannabis, as well as create a legal framework for commercial cannabis businesses. The bills have significant bipartisan support.

West Virginia

Although much of the legislation discussed in West Virginia’s 2022 legislative session dealt with cannabis reform, none of the cannabis reform bills were enacted. The failed bills sought to decriminalize cannabis possession and legalize and tax cannabis.

Washington, D.C.

Though Washington, D.C. only has a medical cannabis program, a legal loophole has allowed for the “gifting” of cannabis. Retailers sell non-cannabis merchandize for an inflated price and include the cannabis as a “gift.” Washington, D.C. officials voted on banning this practice earlier this month, but voted against closing the “gifting” loophole.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked in 35 states and are excited to work in more states as the cannabis industry expands. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!