Are you wondering how to open a dispensary in North Dakota? This page will keep you up-to-date on the latest news and information relevant to opening a cannabis business in North Dakota. This includes helpful insights into what is to come. Cannaspire’s Cannabis consultants support operators from application through daily operations.
As of 2024, North Dakota allows the use of medical marijuana for patients who qualify under specific rules. However, recreational marijuana use remains illegal in the state.
On November 8th, 2022, North Dakota Statutory Measure 2 was proposed for the ballot but was ultimately defeated. If passed, the measure would have legalized the personal use of marijuana for adults aged 21 and older. Additionally, the Department of Health and Human Services would have been tasked with establishing regulations for adult-use marijuana by October 1, 2023. However, the measure did not receive enough support, with 54.94% of voters casting “no” votes.
On April 16th, 2024, North Dakota launched a renewed campaign to legalize recreational cannabis, submitting the initial paperwork to the secretary of state. The initiative advocates a “consumer-friendly yet highly regulated” framework, capping the number of marijuana retail stores at 18 and manufacturing facilities at 7, with strict ownership guidelines. Despite voter rejections in previous years, supporters are hopeful. The legislation stipulates that, if passed, sales would begin by October 1, 2025.
Building on this momentum, the New Economic Frontier advocacy group received approval on April 25, 2024, to collect signatures for a marijuana legalization ballot initiative in November 2024. The initiative aims to redirect law enforcement resources from marijuana enforcement to more pressing issues like the opioid crisis and establish a regulatory framework for safer cannabis products. By June 6, 2024, the campaign had verified 8,344 signatures. On July 8, 2024, they submitted 22,444 signatures, exceeding the required 15,582 to qualify for the ballot. If approved, the initiative would allow adults 21 and older to possess up to one ounce of marijuana flower, four grams of concentrate, and 300 milligrams of edibles, and to cultivate up to three plants for personal use. On August 12, 2024, the North Dakota Secretary of State gave the green light for adult-use cannabis legalization to be included on the November ballot as Measure 5. Despite efforts, voters rejected the initiative on November 5 by 52.55% to 47.45%, ending the push for recreational cannabis legalization in 2024.
On April 23, 2025, North Dakota Governor Kelly Armstrong signed House Bill 1203 into law, legalizing cannabis-infused edible products for medical marijuana patients. The law defines allowable edible products and sets THC content limits at no more than 5 milligrams per serving and 50 milligrams per package. This development opens a new product line for dispensaries and manufacturers, catering to patients seeking alternatives to smoking.
2016: The North Dakota Compassionate Care Act, also known as Measure 5, was passed by the voters.
2017: Senate Bill 2344, which would make changes to the medical cannabis law that voters approved, is passed by the state legislature.
2018: Measure 3, an adult-use legalization measure, qualifies for the ballot; voters reject it.
2019: Gov. Doug Burgum signed HB 1050 to remove jail sentences for adults having up to half an ounce of cannabis. HB 1519 increased the list of debilitating medical disorders.
2021: The House of Representatives of North Dakota votes in favor of House Bill 1420, but the bill ultimately fails to win approval in the Senate of North Dakota.
2022: The New Approach North Dakota collects 25,000 signatures to legalize adult-use marijuana.
2023: On March 16th, 2023, Senate Bill 2068 was signed into law. The bill increased the allowable purchase limit of THC from 4,000 milligrams to 6,000 milligrams in 30 days for cannabinoid concentrates and medical cannabinoid products.
2024: The New Economic Frontier leads a new initiative aiming to legalize adult-use cannabis. The proposal, included in the November 2024 ballot, permits adults over 21 to possess and purchase cannabis from registered businesses. Voters rejected the initiative.
The North Dakota Department of Health (NDDoH) is required by state law to register no more than eight dispensaries unless it determines that additional entities are required to increase access to usable marijuana for registered qualifying patients and registered designated caregivers. In this case, the NDDoH may register additional entities.
In February 2019, the first dispensary in the state of North Dakota opened its doors in Fargo. A number of new dispensaries opened their doors in 2019, with the eighth and last dispensary setting up shop in Dickinson in December 2019.
The state of North Dakota is home to a total of eight dispensaries. Check out the available dispensaries in North Dakota.
According to one projection, the value of marijuana sales in North Dakota in the year 2025 is expected to be close to 25.3 million USD.
In North Dakota, medical marijuana dispensaries are regulated under strict guidelines to ensure safe and responsible access to cannabis for medical use. The state limits the number of dispensaries to eight, strategically distributed across designated regions to ensure accessibility for registered patients and caregivers. Each dispensary must register with the state’s health department and is permitted to acquire and dispense marijuana, along with related supplies and educational materials.
Dispensaries are subject to strict location restrictions, requiring them to be situated at least 1,000 feet away from pre-existing schools and to comply with local zoning laws, with necessary approvals from local officials to confirm compliance. They must also implement strong security measures to prevent unauthorized access and secure their inventory, including advanced security systems and controlled access to storage areas. Comprehensive record-keeping is required for all transactions and inventory to ensure transparency and compliance.
The state conducts random inspections to ensure that dispensaries comply with all regulations, including financial, dispensing, and inventory standards. Marijuana packaging must also meet specific state guidelines to ensure it is safe, secure, and non-appealing to children, with a verification system in place to ensure that marijuana is only dispensed to individuals holding valid identification cards. Dispensaries must also adhere to legal limits on the quantity of marijuana dispensed to prevent excessive possession.
In 2016, voters in North Dakota gave Measure 5 their approval, which authorized the use of cannabis for medical purposes in the state. In 2017, both chambers of the state legislature approved amendments to Measure 5, one of which was the elimination of a clause that had permitted medical marijuana patients to cultivate their plants. It also became mandatory in some circumstances for a qualified medical practitioner to suggest smoking marijuana as a means of consumption. The requisite two-thirds majority vote was achieved in both chambers of the North Dakota State Legislature for the bill to be passed.
To be eligible for a medical marijuana card, patients need to be at least nineteen (19) years old when they submit their application. Patients must also have a certified diagnosis of one of the debilitating medical conditions to be eligible for the program. Some examples of these conditions include cancer, HIV/AIDS, decompensated cirrhosis from hepatitis, and amyotrophic lateral sclerosis.
As of April 2024, North Dakota has 9,932 active medical marijuana cardholders.
Medical dispensaries in the state of North Dakota are allowed to purchase medical cannabis products from only licensed manufacturing facilities. They are also allowed to store, deliver, transfer, and transport medical marijuana, but only for the purpose of dispensing the product to qualified patients or caregivers who have registered with the state. Patients and their caregivers are allowed to get educational materials and other goods related to medical marijuana from dispensaries.
With the state’s dispensary licenses currently capped and no new application window open, strategic preparation is essential for prospective operators monitoring future opportunities. Structured cannabis consulting can help evaluate regulatory positioning, capital readiness, and market timing ahead of any reopening.
The cost to open a dispensary in North Dakota includes a non-refundable application fee of $5,000 as well as a licensing fee of $90,000.
We anticipate many new events unfolding through 2026 that will affect when and what recreational legalization will look like. If you are planning ahead for future opportunities, working with a North Dakota cannabis consultant can help you stay prepared and positioned for upcoming licensing openings. Our cannabis compliance services cover SOPs, GMP readiness, and ongoing monitoring.
If you’re planning to open a dispensary in North Dakota or preparing for future licensing opportunities, Cannaspire’s consultants can help you understand the regulatory process and prepare your business for success.
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