This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

In 2014, Pot States Will Be Growing Like Weeds

Updated from 9:18 a.m. EST with information on Uruguay's pending legislation in the final paragraphs.

NEW YORK (TheStreet) -- The economics of legalizing marijuana for recreational use has several states watching Colorado and Washington to see if revenue can grow like a weed. The latest member of the club is Portland, Maine, which just legalized pot within the city limits. A city ordinance went into effect on Friday, Dec. 6 that allows possession up to 2.5 ounces. It's the first city on the East Coast to legalize recreational use of marijuana.

"It's like the onset of casino gambling," says Alan Bochstein, founder of the 420 Investor. Colorado and Washington are the first states to legalize recreational use of marijuana and the money is as green as the weed.

Colorado's Amendment 64 was expected to save $12 million a year for reduced criminal costs and generate $32 million in new revenue. Washington state says it can save $23 million a year on criminal costs, but thinks the business could deliver up to $530 million, a much higher number than the other states partly because it includes marijuana tourism estimates.

All in all, it's no wonder other states are jonesing for this new found revenue.

The states are approaching legalization from two different angles: medicinal use and recreational use. States using the medicinal marijuana approach employ varying degrees of enforcement. Illinois passed a medical marijuana bill that is one of the strictest in the country. Patients can't just go to a "doc in a box" for a patient card, they have to be a long time patient of a doctor to receive their card. California is known for its very lax medicinal enforcement where a headache qualifies you as a patient.

Quite a few states are entering the medicinal arena, including:

Minnesota -- This state had several bills introduced this year. Senate Bill 1641 permits medical marijuana and authorizes cities to enact zoning regulations to address dispensaries. House Bill 1818 also permits medical marijuana use and authorizes rulemaking and fees. A separate measure, House File 508, doesn't legalize marijuana, but instead gives a defense for medicinal use.

New York -- Where you can smell the chiba wafting as you walk down the city streets. Newly elected New York City Mayor Bill DeBlasio is in favor of legalization. Two Senate Bills and one Assembly Bill were filed this year. SB 1682 legalizes pot possession of up to eight ounces and is mostly concerned with organizations, while SB 4406 and Assembly Bill 6357 deals with the patients.

Pennsylvania --  The Keystone state may become the Key Stoned state. It has both a Senate Bill 770 and a House Bill 1181 that provide for the medical use of marijuana.

Meanwhile, other states are skipping the medicinal route altogether and jumping right into recreational. 

Here are the next states expected to say "don't bogart that joint."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs