Can you name the states where weed is still totally illegal?

Since the beginning of 2021, arguably no industry has generated more excitement than cannabis. And it’s understandable why, as some estimates suggest that annual weed sales in the United States could triple between 2019 and 2025, reaching over forty-one billion dollars.

Thirty-seven states gave the green light to medicinal cannabis in November’s elections. 19 (plus Guam) of 37 also allow the retail sale and consumption of cannabis for adults. One might reasonably surmise that the United States is going green at a very rapid pace.

Fewer than seven million of the 335 million people who live in the United States live in areas where cannabis has been legalized to some degree. The left has three degrees of legalization. There are eleven third-degree legalization states that have severely restricted access (SLA) programs and have a population of just over 90 million people.

In addition, there are twenty other states and two territories (the United States Virgin Islands and Puerto Rico) that are second-degree medical use only and have a combined population of nearly 118 million. Finally, in the 20 first-degree states and territories, all of which have legalized the recreational use of marijuana while also allowing medicinal (second-degree) use, there is a population of almost 150 million people.

Cannabis is still illegal in over a dozen US states

Though Gallup’s annual poll reported an all-time high of 68% of respondents supporting legalization of marijuana statewide, there are still over a dozen states that have yet to legalize cannabis.

In no particular order, these are the states where cannabis is still totally illegal:

• Georgia

• Indiana

• Kentucky

• Iowa

• Texas

• Idaho

• Wyoming

• Nebraska

• Wisconsin

• South Carolina

• North Carolina

• Tennessee

• Kansas

The annual Gallup cannabis poll shows broad support for legalization.

All ages, all genders, all levels of education, and all household income levels support its legalization. The holdouts are the people who identify as Republicans: Only 48% of Republicans want marijuana legalized nationwide, compared to 83% of Democrats and 72% of independents. These states are all currently ruled by Republicans or have frequently moved so in previous elections.

Additionally, only three (Wyoming, Idaho, and Nebraska) of these states use the initiative and referendum process, meaning that residents of the state have the choice of initiating an electoral measure, collecting signatures, and possibly presenting the measure to a general electoral vote. The remaining states are completely dependent on their various Republican-led legislatures to bring about change on the marijuana front.

Will President Biden shake up the marijuana landscape?

Is anything being done about the holdout states? Cannabis stocks have been on the upswing since the beginning of the year. President Joe Biden took office last week, and on Jan. 5, both Georgia Democratic Party Senate candidates won their respective runoff elections. The Democrats now have a firm grip on the federal government’s legislature. This makes the chance of federal legalization much more plausible on paper than if Republicans had retained their small Senate majority.

What’s particularly notable about the postponement is that Republican Mitch McConnell, the Senate Majority Leader, is adamantly opposed to measures to legalize marijuana and has prevented any cannabis bill bills or tabs from reaching the Senate vote almost universally. With the current House Majority Leader, Chuck Schumer, a Democrat, cannabis legislation is more likely to make headway in the House and President. The Senate is still not running for legalization.

However, that doesn’t guarantee that we’ll see major disparities in marijuana policy at the federal level. Washington lawmakers are unsure they will vote along party lines. More crucially, President Biden has not pledged his support for full legalization. During his election campaign, President Biden pushed for the rescheduling and decriminalization of cannabis, which is a long way from legalization.

Regardless of what happens, United States weed stocks have a bright future

However, if there’s a green light at the end of the tunnel, it belongs to marijuana stock investors. At this point, whether the federal government does anything or not, marijuana companies are in perfect shape. As long as the Justice Department maintains a “hands-off” approach, which appears to be happening under this new administration, cannabis stocks will be able to operate freely in the thirty-six states where they have been legalized. Repeal of the 280E tax law may be more important for public companies than full state legalization.

For example, the investment community may see this year make history for Curaleaf Holdings (CURLF -0.93%), the largest unadulterated cannabis stock in the United States. Curaleaf is on track to become the first marijuana stock to hit $1 billion in annual sales this year after acquiring famed Select brand and privately held Multistate Operator (MSO) Grassroots. The grassroots deal has expanded Curaleaf’s presence to 23 states, which accounts for almost two-thirds of the current legalized market.

Innovative Industrial Properties (IIPR 3.24 percent), a cannabis-focused real estate investment trust (REIT), is a side player with a good chance of success if Biden simply re-plans cannabis. Innovative Industrial Properties relies on its sale-leaseback program to grow its business. Through the program, IIP purchases processing and cultivation facilities from MSOs in need of cash and immediately leases the land back to the sellers. The MSO received much-needed cash, while the IIP secured a long-term tenant.

The argument is that even large states like Texas could remain cannabis-free through 2022 and beyond without jeopardizing marijuana companies’ development prospects.

bottom line

Despite the massive popularity of cannabis in the United States and around the world, there are still states that have no intention of following the trends. Although Democrats now appear to have the power to make legalization a statewide event, there is no urgency or need to do so, lest the nation’s cannabis stocks and revenues be indifferent to the decisions of those states.

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