North Dakota House Passes Adult-Use Cannabis Bill

The Republican-controlled North Dakota House of Representatives passed an adult-use cannabis bill on Tuesday, February 23, 2021 in a 56-38 vote.  The bill legalizes possession of up to one ounce for people 21 and older.  The bill limits the number of cultivators within the state to seven, and the number of dispensaries to 18.  During debate, multiple state legislators stressed that failure to legalize adult-use cannabis on their terms could lead to broader legalization under a ballot initiative, as occurred in South Dakota last year.

The North Dakota House also passed a separate bill establishing a 15 percent gross receipts tax on cannabis products, three percent of which would go to the municipality in which the sale occurs.  We will continue to monitor this bill as it moves through the legislative process.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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