Where Is Marijuana Legal?

All you need to know about the status of marijuana legalization

throughout the world.

Keith Speights
(TMFFishBiz)
Updated: Aug 27, 2019 at 5:33PM
Author Bio

Marijuana has been used for thousands of years, primarily for treating medical
conditions. It was used in ancient China as an anesthetic. It was one of five herbs taken
to help relieve anxiety during India's Iron Age. Cannabis seeds have been found in
Viking ships, possibly for use in alleviating pain.

And for most of human history, marijuana use was legal. That began to change in the
early 20th century, though. Between 1916 and 1931, 29 U.S. states banned the use of
marijuana. The Marihuana Tax Act of 1937 essentially made cannabis illegal across the
U.S. Many other countries outlawed marijuana during the first half of the century, with
more nations added to the list in subsequent decades.

But the tide is turning. Several countries and many U.S. states have legalized the use and
sale of medical marijuana. A couple of countries and a growing number of U.S. states
allow the use and sale of recreational marijuana. Where is marijuana legal now? Here's
what you need to know.
IMAGE SOURCE: GETTY IMAGES.

Global overview
Following are the countries that have broadly legalized the use and sale of marijuana as
of Nov. 30, 2018:

Country Medical Marijuana Legal? Recreational Marijuana Legal?

Canada Yes Yes

Uruguay Yes Yes

Argentina Yes No

Australia Yes No

Chile Yes No

Colombia Yes No
 Country Medical Marijuana Legal? Recreational Marijuana Legal?

Croatia Yes No

Cyprus Yes (for cancer patients only) No

Czech Republic Yes No

Denmark Yes No

Finland Yes No

Germany Yes No

Greece Yes No

Israel Yes No

Italy Yes No

Jamaica Yes No

Luxembourg Yes No

Macedonia Yes No

Malta Yes No

Mexico Yes (with THC content < 1%) No

Netherlands Yes No

Norway Yes No

Peru Yes No

Poland Yes No

Portugal Yes No

San Marino Yes No

 Country Medical Marijuana Legal? Recreational Marijuana Legal?

South Korea Yes No

Sri Lanka Yes No

Switzerland Yes No

United Kingdom Yes No

Zimbabwe Yes No
DATA SOURCE: WIKIPEDIA. THC IS THE PRIMARY PSYCHOACTIVE COMPONENT IN CANNABIS.

Canada claims the largest overall market where marijuana use of any kind is legal at the
federal level. Medical cannabis has been legal in the country since 2001, although
initially patients had to grow their own marijuana plants. New regulations in 2013,
subsequently replaced in 2016, opened the door for licensed producers to supply
medical marijuana to patients across the country.

Justin Trudeau ran for the office of prime minister in 2015. He pledged to legalize
recreational marijuana if elected. Trudeau won the election -- and began working to
advance legislation through the Canadian parliament to fulfill his campaign promise.
Those efforts succeeded, with the Canadian senate voting a final time to legalize
recreational marijuana on June 19, 2018. Under the Cannabis Act (also known as bill C-
45), recreational marijuana became available for purchase by adults on Oct. 17, 2018.

The Canadian marijuana market in 2017 totaled around $600,000. Arcview Market
Research and BDS Analytics project this figure will soar to $5.5 billion by 2022.

However, Germany is likely to become the top international market for medical
marijuana where use is legal at the federal level. The country's medical marijuana market
is expected to increase to $1.6 billion by 2022 from around $260 million in 2018.
Germany claims the largest population in the European Union, and its laws make
medical cannabis easily available, which makes rapid growth for the German medical
market likely.

Current status of legalization in the U.S.

Both medical and recreational marijuana use remain illegal at the federal level in the U.S.
The Controlled Substances Act of 1970 placed cannabis in the most restricted category,
Schedule I, which includes drugs that the U.S. government deemed had no accepted
medical use and a high potential for abuse.
But individual states began to push back against federal marijuana policy, beginning
with a ballot initiative in California, passed in 1996, that legalized medical marijuana in
the state. Other states soon followed California's lead. In 2012, Colorado and
Washington state approved ballot initiatives that legalized recreational marijuana.

Following are the U.S. states, districts, and territories that have broadly legalized either
medical marijuana or recreational marijuana as of Nov. 30, 2018:

State/District/Territory Medical Marijuana Legal?

Alaska Yes Yes

California Yes Yes

Colorado Yes Yes

District of Columbia Yes Yes

Maine Yes Yes

Massachusetts Yes Yes

Michigan Yes Yes

Nevada Yes Yes

Oregon Yes Yes

Vermont Yes Yes

Washington Yes Yes

Arizona Yes No

Arkansas Yes No

Connecticut Yes No

Delaware Yes No

Florida Yes No
 State/District/Territory Medical Marijuana Legal?

Guam Yes No

Hawaii Yes No

Illinois Yes No

Louisiana Yes No

Maryland Yes No

Minnesota Yes No

Missouri Yes No

Montana Yes No

New Hampshire Yes No

New Jersey Yes No

New Mexico Yes No

New York Yes No

North Dakota Yes No

Ohio Yes No

Oklahoma Yes No

Pennsylvania Yes No

Puerto Rico Yes No

Rhode Island Yes No

Utah Yes No

West Virginia Yes No

DATA SOURCE: NATIONAL CONFERENCE OF STATE LEGISLATORS.
This list changed as a result of the November 2018 U.S. elections. Residents of Michigan
voted to legalize recreational marijuana, while Missouri and Utah citizens voted to
legalize medical marijuana. The only setback for marijuana legalization was in North
Dakota, where a ballot initiative to legalize recreational marijuana was defeated.

California is by far the largest marijuana market in the U.S. -- and in the world. The
state's marijuana sales were close to $3 billion in 2017. The state's total marijuana
market is projected to soar to $7.7 billion by 2022.

Of the U.S. states where only medical marijuana is legal, Michigan currently ranks as the
largest market, with estimated 2017 sales of $811 million. However, Florida could be on
track to jump past Michigan within the next four years, with estimated medical
marijuana sales of more than $1.7 billion.

In addition, 15 other states have cannabidiol (CBD) laws that permit the legal use of the
nonpsychoactive cannabis component for medical purposes. Several of these states also
allow the use of medical marijuana with low levels of tetrahydrocannabinol (THC), the
primary psychoactive component in cannabis. Four states -- Idaho, Kansas, Nebraska,
and South Dakota -- have no statutes permitting the legal use of marijuana.

Sen. Cory Gardner (R.-Colo) and Sen. Elizabeth Warren (D.-Mass.) are promoting
bipartisan legislation that would result in the U.S. federal government's recognizing
state laws that have legalized either medical or recreational marijuana. Both Gardner
and Warren represent states that have legalized both medical and recreational
marijuana. In April, President Trump signaled his support for Sen. Gardner's effort to
keep the federal government out of the way of states that have legalized marijuana. The
bill introduced by Sen. Gardner and Sen. Warren has not been brought up for a vote in
the full Senate yet, though.

Dynamics behind the push to legalize marijuana

Even before significant efforts began to legalize marijuana, several countries and U.S.
states moved to decriminalize the drug through the relaxation of criminal penalties
associated with personal marijuana use. In 1973, Oregon became the first U.S. state to
decriminalize marijuana, establishing a relatively low fine of $100 for possession of up to
one ounce of the drug.

The biggest factor behind the push to legalize marijuana has been growing public
support for legalization. A survey conducted by the Center for American Progress (CAP)
and GBA Strategies in June 2018 found that 68% of respondents supported legalizing
marijuana -- a record high level. Of those in favor of legalization, 40% indicated that
they "strongly support" marijuana's being legalized.
Some might question a survey sponsored by CAP because of its left-leaning political
views. However, other surveys have also indicated increasing levels of support among
Americans for marijuana legalization.

For example, results announced in October 2018 from a Pew Research Center
survey found that 62% of Americans think that marijuana should be legalized. That level
of support is nearly double the 31% of respondents favoring legalization in 2000.

One major reason marijuana legalization has picked up overall support among U.S.
citizens is that millennials are heavily in favor of legalization. Millennials are expected to
overtake baby boomers as the largest living adult generation in 2019. The Pew Research
Center survey reported that an overwhelming majority -- 74% -- of millennials support
legalization of marijuana. However, majorities of all other generation groups except the
Silent Generation -- Americans born between 1925 and 1945 -- also support the
legalization of marijuana.

But why has public opinion shifted toward support for marijuana legalization? A CBS
News poll taken in April found that only 9% of Americans felt that marijuana was more
dangerous than alcohol. Slightly more than half of Americans think that alcohol is more
dangerous than marijuana.

There are also more reasons now for people to believe that the use of marijuana can be
beneficial for some medical conditions. A report released by the National Academies of
Sciences, Engineering, and Medicine in 2017 found "conclusive or substantial" evidence
for marijuana's efficacy in treating chronic pain, chemotherapy-induced nausea and
vomiting, and multiple sclerosis spasticity. In addition, the report cited moderate
evidence supporting the efficacy of cannabis in treating short-term sleep
issues, fibromyalgia, chronic pain, and multiple sclerosis.

The most important wins for medical marijuana came in 2018. In June the U.S. Food and
Drug Administration (FDA) approved CBD drug Epidiolex for treating Dravet syndrome
and Lennox-Gastaut syndrome (LGS), both of which are rare forms of childhood-onset
epilepsy. In September the U.S. Drug Enforcement Administration (DEA) classified
Epidiolex as a Schedule V drug -- the least restrictive category available.

Impact following marijuana legalization

What has happened in countries and states following marijuana legalization? It's still
early for most areas, but some effects have been seen.

In Uruguay, which legalized recreational marijuana in 2017, illegal drug trafficking of

marijuana has plummeted. Cannabis hasn't become a huge industry in the South
American country yet, however. This is due in large part to banks pressuring pharmacies
in Uruguay not to sell marijuana.
Canada's legalization of medical and recreational marijuana created a rapidly expanding
industry. The country's top licensed producers sport multibillion-dollar market caps and
have attracted attention from major companies outside of the cannabis industry.

The U.S. states that were among the first to legalize recreational marijuana probably
provide the best information about the impact of legalization. Colorado's total
marijuana sales topped $1.5 billion in 2017 and more than $1 billion as of August 2018.
Since 2014 the state has collected more than $840 million in tax revenue from marijuana
sales.

Washington saw sales of legal marijuana totaling $1.3 billion in its fiscal year 2017,
which ended on June 30, 2017. The state collected $319 million of that amount in taxes
and license fees. Half of the total collected revenue went to help fund the state's Basic
Health Plan Trust Account, which provides healthcare services to those in the state who
lack coverage. Another 31% of the total went to the state's general fund, with the
remaining amount distributed among substance abuse programs and other public
services.

Studies have also indicated that opioid use is lower in states that have legalized medical
marijuana than in states that haven't. Data from Medicare's drug database showed a
14% reduction in opioid prescriptions in states with laws allowing relatively easy access
to medical marijuana than in other states. It should be noted, however, that this analysis
showed only a correlation between lower opioid use and states' medical marijuana
policies, not firm grounds for concluding that the medical marijuana access caused the
lower opioid use.

Marijuana-related arrests have generally fallen in states with legal recreational

marijuana. Concerns about legalized marijuana's effect on such problems as teen
marijuana use and traffic fatalities have so far not been borne out, with rates remaining
relatively steady in states that have legalized recreational marijuana.

On the other hand, some negative impacts have followed marijuana legalization. There
have been more traffic-related insurance claims in states that have legalized recreational
marijuana. And in Colorado, overall crime rates have gone up since recreational
marijuana legalization, while the trend has been downward for the U.S. as a whole.
However, it's not certain whether Colorado's increasing crime rate is a result of
marijuana legalization or other factors.

Stocks to watch
The genie is out of the bottle with respect to marijuana legalization. This means plenty
of investing opportunities. Below are key marijuana stocks to watch that are well
positioned to profit from the expansion of marijuana legalization.
 Company Type o

Canopy Growth (NYSE:CGC) Marijuana producer

Innovative Industrial Properties (NYSE:IIPR) Real estate investment trust

Organigram Holdings (NASDAQ:OGI) Marijuana producer

Origin House (OTC:ORHOF) Marijuana distributor

Scotts Miracle-Gro (NYSE:SMG) Supplier to cannabis industr

DATA SOURCE: YCHARTS. MARKET CAPS AS OF NOV. 30, 2018.

Canopy Growth: This company ranks as one of the top Canadian licensed producers of
marijuana. Canopy claims 4.3 million square feet of growing space currently licensed for
production, with another 1.3 million square feet planned. It has supply agreements in
place with all the Canadian provinces that have finalized plans for the recreational
marijuana market. Canopy also has a solid presence in key international markets,
including Germany. Alcoholic beverage giant Constellation Brands (NYSE:STZ) has
invested $4 billion in Canopy and owns a 38% stake in the company.

Innovative Industrial Properties: Organized as a real estate investment trust (REIT) -- a

company that owns and leases income-generating real estate -- Innovative Industrial
Properties focuses on the U.S. medical marijuana industry. It currently owns nine
properties in Arizona, Maryland, Massachusetts, Michigan, New York, and Pennsylvania,
all of which have legalized medical marijuana.

Organigram Holdings: Like Canopy Growth, Organigram is a Canadian licensed

cannabis producer. Although smaller than Canopy, Organigram still ranks among the 10
largest marijuana growers in terms of annual production capacity. The company has
secured supply agreements with seven Canadian provinces for the recreational
marijuana market. Organigram also has partnerships in the Australian and German
medical marijuana markets.

Origin House: Formerly known as CannaRoyalty, Origin House is the largest distributor
of marijuana in California, with more than 50 brand partners. The company also markets
several of its own recreational marijuana brands. Origin House's acquisition of 180
Smoke, a leading vape retailer with 26 stores, will give it a retail presence in the
Canadian market.

Scotts Miracle-Gro: Perhaps best known for its consumer lawn and garden products,
Scotts Miracle-Gro has made several acquisitions to become the top supplier to the U.S.
cannabis industry. The company's Hawthorne Gardening subsidiary supplies fertilizers,
hydroponics, lighting systems, pumps, ventilation systems, and other products to
marijuana growers. Scotts ranks as the largest U.S.-based marijuana stock in terms of
market cap.

What's next for marijuana legalization?

More countries are likely to legalize medical marijuana in the coming years. More U.S.
states are likely to do so as well. It's hard to argue that marijuana doesn't have at least
some medical benefits in the face of studies indicating otherwise.

It wouldn't be surprising for more countries and U.S. states to legalize recreational
marijuana also. Public support for doing so is growing. And the tax revenue being
generated in states and countries that have already legalized recreational marijuana
could prove tempting to those that haven't.

The big question is whether or not the U.S. will legalize marijuana. Rep. Dana
Rohrabacher (R.-Calif.), a staunch supporter of President Trump, stated in October 2018
that the president will work to legalize medical marijuana at the federal level and ensure
that the federal government will leave recreational marijuana legalization to the states.
Rohrabacher was defeated in the November 2018 elections, but the results of those
elections could improve the chances that federal marijuana laws will change in the near
future.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends
Constellation Brands, Innovative Industrial Properties, OrganiGram Holdings, and Origin House.
The Motley Fool has a disclosure policy.

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STOCKS

Scotts Miracle-Gro
NYSE:SMG
$100.68
down
$-3.38
(-3.25%)

Constellation Brands
NYSE:STZ
$182.26
down
$-4.37
(-2.34%)

OrganiGram Holdings
NASDAQ:OGI
$2.66
down
$0.20
(-6.98%)

Canopy Growth Corp.

NYSE:CGC
$18.61
 down
$-1.68
(-8.28%)

Origin House
OTC:ORHOF
$3.35
down
$0.05
(-1.47%)

Innovative Industrial Properties

NYSE:IIPR
$77.97
down
$-1.88
(-2.35%)

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2 Stocks That Got Punched
on Monday
One company considered to be a marijuana stock was burned, as
was a familiar consumer goods name embroiled in controversy.

Eric Volkman
(TMFVolkman)
Nov 18, 2019 at 8:46PM
Author Bio

It was a fairly good Monday for many stocks, with indexes generally headed in the right
direction (i.e., up). Even some of the more sluggish movers of late managed to rise in
price.

I'm here to discuss two that didn't. Both declined, at least partially due to fresh news
coming from their press rooms. Without further ado, let's step into the ring for a closer
look at the action.
IMAGE SOURCE: GETTY IMAGES.

Scotts Miracle-Gro
Although Scotts Miracle-Gro (NYSE:SMG) isn't exclusively in the business of cannabis,
many investors nevertheless consider it as belonging to the small universe of marijuana
stocks.

That's not a great club to belong to these days, as marijuana stocks have really taken a
hit this year on both poor company-specific fundamentals and industrywide challenges.
Perhaps this disfavor with the asset class is why the stock took a 4% hit to its price on
Monday.

No doubt compounding this is Scotts Miracle-Gro's recently reported Q4 of fiscal 2019

results. Revenue for the period exceeded analyst estimates, coming in 15% higher on a
year-over-year basis at nearly $498 million, versus the average estimate, which was
nearly 11% lower.

But net loss was deeper than anticipated. This landed at $50.7 million, or $0.91 per
share, against the expected earnings per share of $0.87.
Interestingly, it's the marijuana wing of Scotts Miracle-Gro that's showing the most
miraculous growth. For the entirety of fiscal 2019, the Hawthorne Gardening unit, which
sells products used mainly or exclusively in the cultivation of cannabis, nearly doubled
its sales.

That was vastly better than the core U.S. consumer business (up only 8%) and the small
catchall "other" category (down 2%). So perhaps, having digested these results,
investors are growing (ha ha) concerned that the company has only one good source of
growth.

To an extent, I think that's valid. Hawthorne will likely continue to improve its sales
figures, although it's conceivable that as a maturing business it won't come close to
posting another double in future fiscal years. After all, the marijuana industry is
developing more slowly than anticipated, with legalization proceeding at a snail's pace
overall.

All that said, Scotts Miracle-Gro shares aren't very expensive on a valuation basis, and
despite those fits and starts, the cannabis industry is here to stay and will improve as the
legal environment continues to thaw. I think investors should consider buying this stock
despite the headwinds.

Under Armour
There's nothing like a worsening scandal to leech a stock price. So it is with once-high-
flying athletic wear purveyor Under Armour (NYSE:UA), which saw its shares dip by
nearly 2% on Monday, thanks to continued fallout from a controversy.

Earlier this month, in the wake of the company's latest quarterly results release, it was
revealed that Under Armour was under federal investigation for its accounting practices.

And late last week, a Wall Street Journal article said that unnamed "former executives" at
the company used possibly fraudulent means to extend a long string of quarterly sales
growth results of 20% and more. Understandably, Under Armour is now being targeted
by irate investors and other concerned parties in a class action lawsuit.

No matter how well a company is doing, these sorts of underhanded actions (if proven
to be accurately reported) are indicative of desperate management that has misplaced
its priorities. Such a business probably can't be trusted to report accurate numbers, and
we should never buy anything on data that is less than precise and true.

Under Armour might, just might, get a pass if its business was going gangbusters. That's
really no longer the case, though. Other companies, such as longtime powerhouse
rival Nike, have successfully pushed into segments such as athleisurewear. No wonder
Under Armour recently made a big cut to its full-year revenue guidance.
The combination of lower-than-expected growth and legal controversy is enough for
me to stay away from this stock. Plus, even with this latest pullback, it's still quite pricey
on anticipated profitability.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and
recommends Nike and Under Armour (C Shares). The Motley Fool has a disclosure policy.

MOTLEY FOOL RETURNS

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17+ years348%94%
Stock Advisor launched in February of 2002. Returns as of 11/22/2019.

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STOCKS

Under Armour (C Shares)

NYSE:UA
$15.61
up
$0.36
(2.40%)

Scotts Miracle-Gro
NYSE:SMG
$100.68
down
 $-3.38
(-3.25%)

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