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.