There are currently 24 states in the United States that have legalized recreational marijuana as of August 2024, either by ballot measure or by legislative action. These states are:
- Alaska1: Legalized in 2014 by Ballot Measure 2 with 53% of votes. Allows possession of 1 oz usable, 6 plants (no more than 3 mature), and 1 oz hash/concentrates.
- Arizona2: Legalized in 2020 by Smart and Safe Arizona Act (Prop 207) with 59.95% of votes. Allows possession of 1 oz usable, 6 plants, and 5 g hash/concentrates.
- California3: Legalized in 2016 by Proposition 64 with 57% of votes. Allows possession of 1 oz usable, 6 plants, 8 g hash/concentrates.
- Colorado: Legalized in 2012 by Amendment 64 with 55% of votes. Allows possession of 1 oz usable, 6 plants (no more than 3 mature), and 1 oz hash/concentrates.
- Connecticut: Legalized in 2021 by SB 1201. Allows possession of 1.5 oz usable, 6 plants (no more than 3 mature beginning July 2023), up to 7.5 g concentrates (up to 750 mg of THC), up to 25 g concentrates (up to 2,500 mg of THC) in a locked container.
- Delaware: Legalized in 2023 by House Bill 1 and House Bill 2. Allows possession of 1 oz usable, 12 grams or less of concentrated cannabis, or cannabis products.
- District of Columbia: Legalized in 2014 by Initiative 71 with 65% of votes. Allows possession of 2 oz usable, 6 plants (no more than 3 mature).
- Illinois: Legalized in 2019 by House Bill 1438. Allows possession of 1 oz usable, 5 g hash/concentrates.
- Maine: Legalized in 2016 by Question 1 with 50% of votes. Allows possession of 2.5 oz usable, up to 15 plants (no more than 3 mature), 5 g hash/concentrates.
- Maryland: Legalized in 2022 by Maryland Question 4 (Marijuana Legalization Amendment) with 66.88% of votes. Allows possession of 1.5 oz usable, up to 2 plants for personal use, 12 g of cannabis concentrates.
- Massachusetts: Legalized in 2016 by Question 4 with 54% of votes. Allows possession of 1 oz usable, 6 plants, 5 g concentrates.
- Michigan: Legalized in 2018 by Proposal 1 with 56% of votes. Allows possession of 2.5 oz usable, 12 plants, 15 g concentrates.
- Minnesota: Legalized in 2023 by HF100. Allows possession of 2 oz usable in public, 2 pounds usable at home, 8 plants (no more than 4 mature), 800 mg of THC in edibles, 8 g of concentrate.
- Missouri: Legalized in 2022 by Amendment 3. Allows possession of up to 3 oz usable, up to 6 flowering plants, 6 immature plants, and 6 plants under 14 inches for personal use.
- Montana: Legalized in 2020 by Initiative I-190 (56.89%) and CI-118 (57.82%). Allows possession of 1 oz usable, 4 mature plants, 8 g hash/concentrates.
- Nevada: Legalized in 2016 by Question 2 with 54% of votes. Allows possession of 1 oz usable, 6 plants, 3.5 g hash/concentrates.
- New Jersey: Legalized in 2020 by New Jersey Marijuana Legalization Amendment with 66.88% of votes. Allows possession of 1 oz usable.
- New Mexico: Legalized in 2021 by House Bill 2. Allows possession of 2 oz usable, 6 plants (no more than 12 per household), 16 g concentrated marijuana, 800 milligrams of edible cannabis.
- New York: Legalized in 2021 by Senate Bill S854A. Allows possession of 3 oz usable, 12 plants, 24 g concentrates.
- Oregon: Legalized in 2014 by Measure 91 with 56% of votes. Allows possession of 1 oz usable in public, 8 oz homegrown usable at home, 4 plants, 16 oz solid marijuana-infused, 72 oz liquid infused, and 1 oz extract at home of hash/concentrates.
- Ohio: Recreational marijuana was legalized in Ohio by a ballot measure that passed on November 8, 2023, with 55 percent of the vote1. The measure, known as Issue 2, allows adults 21 and over to possess up to 2.5 ounces of marijuana and grow up to six plants at home.
- Rhode Island: Legalized in 2022 by Rhode Island Cannabis Act. Allows possession of 1 oz usable in public, 10 oz usable at home, 3 mature plants and 3 immature plants, 5 g concentrate.
- Vermont: Legalized in 2018 by Legislative Bill H.511. Allows possession of 1 oz usable, 6 plants (no more than 2 mature), 5 g hash.
- Virginia: Legalized in 2021 by Senate Bill 1406 and House Bill 2312. Allows possession of 1 oz usable, 4 plants.
- Washington: Legalized in 2012 by Initiative 502 with 56% of votes. Allows possession of 1 oz usable, 16 oz solid marijuana-infused, 72 oz liquid infused, and 7 g of concentrates.
It is important to note that marijuana laws are changing at a rapid pace across all 50 states and it’s important to understand and respect the rules that vary across the U.S. regarding marijuana use.
Marijuana laws are changing at a rapid pace across all 50 states, making things a bit confusing at times. In order to keep up with the ever-changing laws, DISA has provided an interactive map for information on legalization, medical use, recreational use, and anything in between. You can check out their website for more detailed information on the legality of marijuana in each state.
Even though marijuana may be legal in some states, it is still illegal under federal law. Possessing, growing, transporting, and distributing marijuana is a federal felony. Individual laws that have legalized marijuana for recreational or medical use have challenged the federal government, creating a contradiction between the rights of states to create their own regulations and the federal government’s power.
Which States Have Legalized Recreational Weed?
As of 2024, recreational cannabis is legal in 24 states and Washington, D.C. This signifies a growing acceptance of cannabis use across nearly half of the country. The states that have embraced legalization often feature a mix of established markets and newer entrants into the legal cannabis scene.
As of the latest update, the following states have legalized recreational weed, recreational cannabis and/or recreational marijuana in the United States:
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Montana
- Nevada
- New Jersey
- New Mexico
- New York
- Ohio
- Oregon
- Rhode Island
- Vermont
- Virginia
- Washington
Additionally, recreational weed is also legal in Washington, D.C.1.
What Does Recreational Legalization Mean for Consumers?
Legalization typically allows individuals aged 21 and over to purchase and possess marijuana up to certain limits. For example, in Michigan, adults can possess up to 2.5 ounces of marijuana in public and grow up to 12 plants for personal use (World Population Review). Meanwhile, states like Rhode Island permit possession of one ounce in public and up to ten ounces at home (The Cannigma).
- Alaska1: Allowed since 2014. Up to 1 oz and 6 plants (max 3 mature)
- Arizona2: Allowed since 2020. Up to 1 oz, 6 plants, and 5 g concentrates.
- California3: Allowed since 2016. Up to 1 oz, 6 plants, and 8g concentrates.
- Colorado: Allowed since 2012. Up to 1 oz, 6 plants (max 3 matures)
- Connecticut: Allowed since 2021. Up to 1.5 oz, 6 plants (max 3 mature from July 2023)
- Delaware: Allowed since 2023. Up to 1 oz and 12 grams concentrates.
- District of Columbia: Allowed since 2014. Up to 2 oz, 6 plants (max 3 mature).
- Illinois: Allowed since 2019. Up to 1 oz and 5 g concentrates.
- Maine: Allowed since 2016. Up to 2.5 oz, 15 plants (max 3 mature).
- Maryland: Allowed since 2022. Up to 1.5 oz, 2 plants.
- Massachusetts: Allowed since 2016. Up to 1 oz, 6 plants.
- Michigan: Allowed since 2018. Up to 2.5 oz, 12 plants.
- Minnesota: Allowed since 2023. Up to 2 oz in public, 2 lbs at home, 8 plants (max 4 mature).
- Missouri: Allowed since 2022. Up to 3 oz, 6 flowering plants.
- Montana: Allowed since 2020. Up to 1 oz, 4 mature plants.
- Nevada: Allowed since 2016. Up to 1 oz, 6 plants.
- New Jersey: Allowed since 2020. Up to 1 oz.
- New Mexico: Allowed since 2021. Up to 2 oz, 6 plants (max 12 per household).
- New York: Allowed since 2021. Up to 3 oz, 12 plants.
- Oregon: Allowed since 2014. Up to 1 oz in public, 8 oz at home, 4 plants.
- Rhode Island: Allowed since 2022. Up to 1 oz in public, 10 oz at home, 6 plants.
- Vermont: Allowed since 2018. Up to 1 oz, 6 plants (max 2 mature).
- Virginia: Allowed since 2021. Up to 1 oz, 4 plants.
- Washington: Allowed since 2012. Up to 1 oz, solid and liquid infusions allowed.
California started allowing medical weed in 1996. After that, 40 states and Washington, D.C. have allowed it for health reasons. For personal use, 24.
Consumers in these states enjoy access to a variety of cannabis products, including flowers, edibles, concentrates, and topicals. Both recreational and medical dispensaries are available, with some states offering dual-licensed shops that cater to both consumer bases. It’s important to note that while recreational and medical products are similar, medical dispensaries might offer additional benefits like tax breaks or higher potency limits for patients (Leafly).
What Are the Implications for Businesses? Are there any limitations or risks to consider?
The expansion of legal recreational cannabis opens significant opportunities for businesses, ranging from cultivation and manufacturing to retail and ancillary services. As states regulate and expand their markets, businesses can tap into a growing customer base while navigating compliance with state laws.
When it comes to marijuana industry insurance for SMBs, there are several limitations and risks to consider:
- Federal vs. State Law: The conflict between state and federal laws creates a challenging environment. While many states have legalized marijuana to varying degrees, it remains illegal under federal law, classified as a Schedule I drug1.
- Banking Restrictions: Due to federal regulations, cannabis-related businesses often face severe banking restrictions. Many operate on a cash-only basis, which can increase the risk of theft and liability1.
- Insurance Coverage: The unique legal status of cannabis means that businesses may struggle to find comprehensive and affordable insurance coverage. Policies may be restrictive, and insurers are often hesitant to participate in this market.
- General Business Risks: Like any agricultural or manufacturing business, cannabis-related businesses face risks such as workplace accidents, property damage, and crop failure. They are also particularly prone to fires.
- Theft and Security: The transportation and storage of cannabis products and cash carry risks of theft, robbery, or hijacking, which can be exacerbated by the large amounts of cash handled due to banking restrictions2.
- Regulatory Challenges: The cannabis industry is subject to rapidly evolving regulations, which can pose challenges for businesses trying to stay compliant.
- Product Liability: There is a risk associated with product liability, especially if a consumer claims harm from a product’s use1.
It’s essential for businesses in the marijuana industry to stay informed about the latest legal and regulatory developments and to work with insurance providers who understand the unique challenges of the industry. A proactive approach to risk management and compliance can help mitigate some of these risks. We can definitely help you with that.
How can Cover Cannabis help?
For businesses involved in the cannabis industry, understanding and managing risks is crucial. Cover Cannabis specializes in providing tailored insurance solutions for cannabis operations. Whether you operate a dispensary, a cultivation facility, or any other cannabis-related business, having the right insurance coverage is essential to protect against potential liabilities and ensure business continuity.
Cover Cannabis offers a range of insurance services, including General Liability Insurance and Workers’ Compensation Insurance. These services are designed to address the unique challenges faced by businesses in the cannabis industry, ensuring they can operate safely and confidently amid the legal landscape of 2024.
You can also request a quote specific to your insurance needs.