Cannabis Legalization Could Make New Strides in 2023

The effort to reform the nation’s cannabis laws made new strides in 2022 with the passage of recreational marijuana legalization ballot measures in Maryland and Missouri in the November midterm elections. Success was not universal, however, as similar propositions on the ballot in Arkansas, North Dakota and South Dakota failed to gain the approval of voters. 

Looking at 2023, new milestones have already been achieved this year, with Connecticut launching regulated retail sales of adult-use cannabis on January 10, a move that was preceded by the expungement of nearly 43,000 marijuana-related convictions in the state at the dawn of the new year. And as we head further into 2023, several states across the country are likely to make new ground in the struggle to end cannabis prohibition.

A New Focus

Brian Vicente, a founding partner at the cannabis and psychedelics law firm, Vicente Sederberg LLP, says that despite spending millions of dollars on lobbying federal lawmakers in 2022, the efforts of cannabis activists were unable to result in the passage of any meaningful marijuana policy reform at the next level. With the change in the political climate in Washington, D.C., efforts this year will take a new focus.

“With Republicans taking over the House, any federal reform in the two years seems exceedingly unlikely. Fortunately, movement leaders have begun coalescing around a strategy to cut back on federal lobbying and instead push resources toward state-level reform,” Vicente said in an email. “These efforts are aiming to flip as many as 10 states to adult-use in just three years, which would not only open new markets for consumers, but also create intense pressure on Congress to pass legislation aligning federal law with the thirty-odd states where cannabis is legal for adults.”

As the new year begins, more than a half-dozen states are likely to consider legislation to reform their marijuana laws, with most activity centering in the South and Midwest regions. Outside those broad areas, Hawaii could be poised to make progress on the issue with a new governor at the helm, Democrat Josh Green, who included support for expanding the state’s current legalization of medical marijuana to include adult-use cannabis as part of his campaign for office last year. On January 11, Democratic state Rep. Jeanné Kapela announced her plans to introduce a recreational marijuana legalization bill, saying, “this year, we stand on the precipice of history.”

“We now have a roadmap for legalizing recreational cannabis in our islands,” Kapela said in a statement quoted by Marijuana Moment. “Legalizing cannabis is not just a matter of money, it is a matter of moralities.”

Snowden Stieber, a regulatory analyst with cannabis compliance technology firm Simplifya, notes that the bill has some hurdles to clear before it can get to Green’s desk, however.

“The Hawaii Senate President, Ron Kouchi, has already come out with statements expressing skepticism on any fast movement for cannabis legalization, and many elected officials are still waiting on the upcoming report from the Dual Use of Cannabis Task Force to guide their votes in the new year,” he said in an email. “While it is of course possible that the task force recommends full legalization, prior experience in other states would suggest that legislators will take their time with any report’s findings and that a sudden move toward legalization is unlikely.”

The South

Vicente believes three states in the South—Kentucky, North Carolina and South Carolina—could pass legislation to legalize medical marijuana this year. With the nearby states of Louisiana, Mississippi, Alabama, Georgia and Florida already demonstrating that a regulated marijuana industry can provide jobs and tax revenue, other states in the region are likely not far behind.

South Carolina, where Rep. Nancy Mace has become one of the few Republicans in Congress advocating for cannabis policy reform at the national level, is one of the few remaining states that still hasn’t legalized marijuana in any form. But reform is popular with the state’s residents, with a Winthrop University poll conducted before last year’s midterm elections showing that more than 75% of voters support the legalization of medical cannabis. This year, lawmakers from both sides of the aisle have pre-filed separate medical marijuana legalization bills for the 2023 legislative session. But Simplifya regulatory analyst Justin Bedford isn’t optimistic about the fate of the legislation.

“Though these may seem like promising developments, history suggests that South Carolina still has a long way to go before any form of commercial legalization occurs,” he wrote in an email. “All 14 cannabis-related bills that were deliberated during the 2022 legislative session failed to pass, with most dying in the early stages of development. Nothing has changed in the state’s sociopolitical environment that would suggest anything will be different this year.”

In North Carolina, the state Senate passed a bill to legalize medical marijuana in June 2022, but the House of Representatives declined to take up the legislation. Brian Fitzpatrick, chairman and CEO of cannabis software developer Qredible Inc, notes that public support for medical marijuana legalization is strong, and if a bill makes it to the desk of Democratic Gov. Roy Cooper, he’s likely to sign it into law.

“A poll carried out in January 2021 by Elon University found that 73% of North Carolinians supported medical cannabis,” Fitzpatrick said in an email. “A subsequent poll in May 2022 showed that support had increased to 82% across bipartisan lines. I believe that the governor is aware of this and will fully support the legalization of a medical cannabis bill in 2023.”

In Kentucky, where an executive order from Democratic Gov. Andy Beshear decriminalizing medical marijuana went into effect on New Year’s Day, a bill to legalize both medical and recreational cannabis was unveiled by lawmakers on January 7. The measure, Senate Bill 51, would legalize and regulate the “possession, cultivation, production, processing, packaging, transportation, testing, marketing, sale and use of medical cannabis and adult-use cannabis,” according to a report from the online resource Business Insurance. With Kentucky being one of the nation’s largest hemp producers, industry insiders believe the legislation has a good chance of success this year.

The Midwest and Surrounding States

Several states in the Midwest could make advancements in cannabis policy reform in 2023. In Ohio, voters could get the chance to vote on a cannabis legalization measure championed by the Coalition to Regulate Marijuana Like Alcohol, which was kept off the ballot for the November midterm election after legal challenges. Last week, Secretary of State Frank LaRose reintroduced the proposal, which would legalize marijuana for adults 21 and older and levy a 10% tax on commercial cannabis products. If the state legislature doesn’t approve the measure within four months, the coalition can collect signatures to put the proposal before the votes in the fall. Trent Woloveck, chief commercial director of cannabis commerce platform Jushi, believes legalization efforts have an even chance of success in Ohio this year.

“It is very unlikely that the legislature acts on the initiated stature in the next four months, but reasonably likely that the Coalition will be able to gather the additional required signatures for the effort to make the ballot,” he says. “While polling would suggest a ballot initiative legalizing cannabis would pass, the Senate president and other legislators disagree. And, even if voters approved an initiated statute, the legislature would have unrestricted authority to repeal or materially revise legalization.”

Like Hawaii, Pennsylvania has a new governor, Democrat Josh Shapiro, who has expressed support for legalizing recreational marijuana. The issue has been stymied in years past by Republican lawmakers, but a new Democratic majority in the state House of Representatives may help the chances at success.

“While we’ve heard some interest from both sides of the aisle in previous years, conversations about legalization seem to be happening among a much larger group of legislators with increased frequency and specificity,” Woloveck says. “It also sounds like many legislators, including several previously unwilling to engage in any cannabis-related discussions, now acknowledge something has to be done about the illicit market and to stop revenue from flowing to neighboring states where people can buy legal, regulated cannabis for non-medical purposes.”

After legalizing low-potency THC edibles last year, cannabis policy experts say Minnesota could be the most likely state to legalize recreational marijuana in 2023. The state’s Democratic-Farmer-Labor Party (DFL) is now in charge of both the legislative and executive branches of government, and party leaders including Gov. Tim Walz have said that cannabis legalization will be a priority for 2023. Last Wednesday, a bill sponsored by DFL lawmakers Rep. Zack Stephenson and Sen. Lindsey Port received the approval of a legislative committee, with more hearings on the measure to come.

In Oklahoma, where 10% of adults hold cards to participate in the state’s liberal medical marijuana program, voters will decide on a ballot measure to legalize recreational cannabis in March. If passed, State Question 820 would legalize marijuana for adults 21 and older. The measure also contains provisions to expunge past convictions for marijuana-related offenses. Proponents of the measure had hoped it would appear before voters during the November midterm elections, but a delay in certifying petition signatures and legal challenges from opponents prevented its inclusion on the ballot.

Lawmakers in other states including Georgia and Delaware could also take up measures to legalize marijuana this year, although the prospects for success in 2023 seem unlikely given the political climate in those states. But progress in cannabis policy will probably continue if the trend seen over the last decade goes on.

“Since 2012, when Colorado and Washington became the first states to legalize cannabis, we’ve seen an average of two states per year pass adult-use laws,” Vicente notes. “I predict that 2023 will continue this trend with both Oklahoma and Minnesota looking very likely to legalize.”