Michigan voted on Tuesday to legalize marijuana for recreational use, ending decades of prohibitive regulation and ushering in a new era of cannabis law and a burgeoning cannabis industry, according to an NBC projection.
Michiganders chose to authorize the legalization of possession, use and cultivation of marijuana products by those who are at least 21 years of age.
Individuals will now be permitted to possess and use marijuana and marijuana-infused edibles and grow up to 12 marijuana plants for personal consumption. The approved law will impose a 10-ounce limit for marijuana kept at residences and mandate that amounts over 2.5 ounces be secured in locked containers.
Permitted retail sales of marijuana and edibles will be subject to a 10 percent tax, dedicated to implementation costs, clinical trials, schools, roads, and municipalities where marijuana businesses are located. Per state law, ballot initiatives go into effect 10 days after results are certified, which can take up to three weeks from the day of the election. That puts formal legalization on track for December 2018.
Attitudes surrounding cannabis and its use in Michigan, reflecting national trends, have relaxed in recent years. Several of the state’s major cities, including Grand Rapids and Ann Arbor, have decriminalized certain types of possession and use in recent decades. A 2008 ballot initiative made Michigan the 13th state to legalize cannabis for medical use.
Sixty-six percent of Americans now support legalizing marijuana, according to the latest Gallup poll. The latest figure from Gallup marks the third consecutive year that support on the measure has increased and hit a new record.
Earlier this year, Vermont joined a growing list of states allowing recreational use on July 1, Oklahoma voters overcame late opposition to overwhelmingly approve medical use in June and New York State health officials told Governor Andrew Cuomo this summer that “the positive effects of regulating an adult marijuana market in NYS outweigh the potential negative impacts.”
Notwithstanding a federal prohibition on cannabis and criticism from President Donald Trump’s attorney general,Jeff Sessions, nine states and the District of Columbia had OKed recreational and medical marijuana use prior to the Michigan decision.
Michigan’s decision could give a further boost to the cannabis industry. Shares of major Canada-based cannabis companies rallied on Tuesday ahead of the results. Tilray gained 5.8 percent, Canopy Growth added 6.2 percent and Aurora Cannabis rose 0.6 percent; all three companies trade on both U.S. and Canadian exchanges.
Along with the Michigan yes vote, Democrats winning control of the House of Representatives should also help the industry.
“While we expect the Senate to remain Republican, the prospects for moving cannabis legislation are better if the House can pass bills,” said Vivien Azer, a Cowen analyst covering the cannabis industry, to CNBC on Tuesday before the midterm results. “Given popular support for cannabis legislation and a preference by many Senate Republicans to respect state’s rights, a GOP Senate could advance a cannabis bill.”
