The State of Cannabis Legislation & Licensing: North Dakota, South Dakota, Nebraska, Kansas
A federal appeals court ruled May 30 to hold open a case challenging the scheduling status of marijuana under federal law. While progress is made at the federal level, each U.S. state is deciphering its own path in the legalization of cannabis, medical and recreational, as well as CBD and hemp cultivation.
CannaCon is hosting its Midwest cannabis conference later this month, so we’re reviewing the state of cannabis throughout the region. Below is an update on marijuana legislation and cannabis business licensing in North Dakota, South Dakota, Nebraska and Kansas (as of May 2019).
North Dakota Cannabis Business Licensing
Cannabis is legal for medical use, and cultivation of hemp is also legal. Possession of small recreational amounts is now a misdemeanor crime in ND. North Dakota is the 25th state to remove the threat of jail time for possessing small amounts of marijuana. First-time offenders caught possessing half an ounce or less of cannabis will be subject to a fine of up to $1,000 with no jail time. Individuals could be charged with a misdemeanor if they get additional possession infractions over the course of a year. On May 28, North Dakota lawmakers agreed to study the implications of legalizing recreational marijuana, ahead of another expected ballot measure campaign.
Currently, only compassion centers, cardholders, or otherwise authorized persons may produce, process, sell, possess, transport, dispense or use marijuana. No more than two compassion centers with the sole purpose of operating as a manufacturing facility will be registered, as well as eight compassion centers with the sole purpose of operating as a dispensary. The North Dakota health department may register additional compassion centers if the department determines additional are necessary to increase access to usable marijuana by registered qualifying patients and registered designated caregivers.
The application fee for a compassion center is $5,000 and nonrefundable. Once the applicant is notified they are eligible for registration, then a $90,000 certification fee applies for a dispensary and $110,000 for a manufacturing facility. These registration certificates expire after two years. Renewal applications must be submitted a minimum of 60 calendar days before the expiration of the registration certificate, along with a renewal fee of $90,000 for a dispensary and $110,000 for a manufacturing facility. Read NDCC Chapter 19-24.1 for more details.
South Dakota Cannabis Business Licensing
Cannabis is illegal for any purpose; possession of small amounts is a misdemeanor crime, punishable by a maximum sentence of one-year imprisonment and a maximum fine of $2,000. South Dakota is the only U.S. state that outlaws ingestion of controlled substances, therefore testing positive for cannabis can be a felony offense. A recently initiated measure that would let people age 21 and older to possess, grow, sell and distribute marijuana in South Dakota has begun the process to be added to the 2020 election ballot. It would also allow persons younger than 21 to use cannabis with a doctor’s recommendation.
Nebraska Cannabis Business Licensing
Cannabis is illegal for all purposes, but a first offense for possession of small amounts is a civil infraction. A bill aimed at legalizing medical marijuana in Nebraska passed the Legislature’s Judiciary Committee, but it did not move forward in the State Senate after backers reported they couldn’t get enough votes to end a filibuster by opponents. It should be noted that Nebraska has a marijuana tax stamp law, meaning those who possess marijuana are legally required to affix state-issued stamps to the contraband.
Kansas Cannabis Business Licensing
Cannabis is illegal for all purposes; possession of small amounts is a misdemeanor crime. House Bill 2163 aims to legalize medical cannabis. It was referred to the Committee on Health and Human Services Feb. 6, 2019.
Kansas also has a marijuana tax stamp law; those who possess marijuana are legally required to affix state-issued stamps to the contraband. Possession and retail sale of products containing CBD containing zero percent THC is permitted as of May 2018. Kansas permits all adults, not only those with qualified medical conditions, to possess and purchase these kind of CBD products.
Learn and Network at THE Cannabis Expo
Want to know more about starting a cannabis business in the Midwest? Are you looking for information on how to grow cannabis and services to support your business? Advance your knowledge by attending CannaCon.
Much more than a cannabis convention, CannaCon is an opportunity to meet with fellow marijuana business professionals, interact with informed speakers, and find products and services for your marijuana-related business.
If you joined attended a CannaCon last year or joined us at the Northeast CannaCon in Seattle earlier this year, thank you! If you missed them, register to attend the 2019 Midwest CannaCon in Detroit June 21-22 and the 2019 Northeast CannaCon in Boston Aug. 23-24.
Interested in other states?
Illinois, Indiana, Kentucky, Michigan, Ohio
Wisconsin, Iowa, Missouri, Minnesota
Legalize