Medical Cannabis Legalization in North Dakota

Medical cannabis was legalized in North Dakota through Measure 5 (also known as the North Dakota Compassionate Care Act) which was approved in the 2016 elections. As a result of this measure, the North Dakota Medical Marijuana Program was established through which patients with certain medical conditions could register for identification cards to be able to purchase and possess medical cannabis. The state Department of Health is responsible for operating the medical marijuana program, issuing identification cards to qualifying patients and licensing medical cannabis manufacturing facilities and dispensaries (known as compassionate centers). Medical cannabis cards issued in other states are not recognized in North Dakota.

On April 17, 2017, Measure 5 was amended with Senate Bill 2344. The amendments included the removal of the provision for home cultivation of cannabis by registered patients. The revised medical marijuana program includes the following key aspects:

• Identification cards can be issued to patients who have one or more of the following medical conditions: “any terminal illness, cancer, HIV/AIDS, hepatitis C, ALS, PTSD under certain circumstances, agitation of Alzheimer’s disease, dementia, Crohn’s disease, fibromyalgia, spinal stenosis, chronic back pain (including neuropathy or damage to the nervous tissues of the spinal cord with objective neurological indication of intractable spasticity), glaucoma, epilepsy, a medical condition that produces cachexia or wasting, severe and debilitating pain that has not responded to previously prescribed medication or surgical measures for more than three months or for which other treatment options produced serious side effects, intractable nausea, seizures, or severe and persistent muscle spasms”.
• Only whole plant, patches, tinctures, topicals and capsules are allowed. For patients to be able to use cannabis in the whole plant form, they must have a doctor’s certification.
• Qualifying patients and their caregivers can buy up to 2.5 ounces of cannabis in a 30-day period.
• At maximum 3 ounces of cannabis can be possessed by a qualifying patient or their caregiver.
• No home cultivation is allowed.
• Two compassion centers operating as manufacturing facilities and eight compassion centers operating as dispensaries will be licensed by the state Department of Health. Additional compassion centers may be licensed if the Department of Health believes that it is necessary to increase supply of medical cannabis. Applicants for the license must pay a non-refundable fee of $5,000. The non-refundable certification fee for a dispensary is $90,000. The non-refundable certification fee for a manufacturing facility is $110,000.

In 2019, two bills were passed. House Bill 1417 was enacted to allow registered patients with debilitating cancer to purchase larger amounts of cannabis. House Bill 1519 expanded the list of qualifying debilitating medical conditions.

North Dakota Medical Cannabis Market

According to the Medical Marijuana Program Annual Report from the Division of Medical Marijuana, in 2023, there were 9,596 qualifying patients, 196 designated caregivers and 457 agents registered in the Medical Marijuana Program. In 2023, total dispensary sales were valued at $21,606,000 with 66% of total sales being dried leaves and flowers. MJBizDaily’s 2024 MJBiz Factbook forecasts that in 2024, North Dakota’s medical cannabis market could reach $25 million in value.

There are currently two licensed manufacturing facilities and eight licensed dispensaries.

Cannabis Delivery in North Dakota

Under current regulations, the state prohibits the delivery of medical marijuana.

Adult-Use Cannabis Legalization in North Dakota

Recreational marijuana has not yet been legalized in North Dakota.

Timeline:

2018. Measure 3, which would have legalized the use of recreational cannabis for individuals older than 21, was placed on the ballot in the 2018 elections. It was defeated.

2019. Gov. Doug Burgum decriminalized the possession of small amounts of marijuana by signing House Bill 1050 into law. This bill reclassified possession of less than 0.5 ounces of cannabis from misdemeanor to criminal infraction, meaning that it is punishable by a fine of up to $1,000 but does not result in imprisonment.

2021. House Bill 1420 was introduced in the North Dakota House with the aim to legalize possession of up to 1 ounce of cannabis by individuals over 21 years old and set up a licensing scheme for cultivation, processing and sale of adult-use cannabis. The bill was rejected in the North Dakota Senate.

2022. House Bill 1501 was introduced in the North Dakota House which sought to impose a gross receipts tax of 15% on sale of recreational cannabis from dispensaries and an excise tax of 10% on sale of recreational cannabis from a manufacturing facility to a dispensary when it is legalized in the state. It was rejected in the North Dakota Senate.

2021-2022 legislative session. House Concurrent Resolution 3031 (HCR 3031) was introduced in the North Dakota House and planned to place a ballot measure to legalize adult-use cannabis in the 2022 elections. If approved, it would have allowed the possession, sale and use of recreational cannabis by individuals over 21 years old. The Resolution failed in the House.

2022. A ballot measure called Measure 2 gained enough signatures to be placed on the 2022 ballot. This measure aimed to establish an adult-use cannabis program by October 1, 2023. It was rejected in the 2022 elections.

2024. The Marijuana Legalization Initiative might appear in the 2024 elections. The initiative would legalize recreational marijuana and would allow individuals older than 21 to possess up to 1 oz of marijuana, 4g of concentrate and 300mg of edibles. It would also permit individuals to grow a maximum of three plants with a limit of six plants per household. Cannabis Reform Ballot, November 5.

North Dakota Recreational Cannabis Market Projections

According to North Dakota Cannabis Information, the legalization of recreational cannabis could generate annual revenue between $8 million and $10 million.

North Dakota Cannabis Market Infographics

North Dakota Hemp Industry