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Cannabis Legalization and Regulation in North Dakota

North Dakota has not legalized adult-use cannabis. Recreational possession, sale, and cultivation remain illegal under state law. Ballot measures to legalize recreational cannabis were rejected in both 2018 and 2022.

Medical cannabis was legalized in 2016 through Measure 5 and became operational in 2019. Registered patients with qualifying conditions—including cancer, epilepsy, ALS, Crohn’s disease, chronic pain, and PTSD—may purchase products from state-licensed dispensaries. Patients may possess up to 3 ounces of dried flower or its equivalent in other approved forms such as concentrates, tinctures, capsules, and topicals. Smoking cannabis is permitted for medical use, but home cultivation is not allowed.

The North Dakota Department of Health and Human Services oversees the Division of Medical Marijuana, which regulates licensing for dispensaries, manufacturing facilities, and testing labs. The program operates with a limited number of dispensaries across the state, ensuring geographic access for patients.

Hemp cultivation and hemp-derived CBD products are legal in North Dakota if they contain no more than 0.3% THC. Intoxicating hemp cannabinoids such as delta-8 THC are restricted and fall under stricter oversight when marketed for human consumption. All cannabis and hemp products must meet state requirements for testing, labeling, and packaging.

For cannabis operators, North Dakota offers a limited medical market with strict regulatory oversight. Banks and financial service providers require full compliance documentation, including license verification, ownership disclosures, tax IDs, operating agreements, and financial statements. Because cannabis businesses remain cash-heavy, operators must establish armored cash transport, reconciled deposits, AML/BSA monitoring, and audit-ready accounting systems. Accurate sales and excise tax reporting is essential for maintaining banking and financial service relationships.

The North Dakota Department of Health and Human Services, Division of Medical Marijuana, regulates the program. For official program details, licensing resources, and compliance updates, visit: https://www.hhs.nd.gov/mm