Welcome to my latest Weekly Weed Report. The article below is a condensed transcript; the video contains charts and additional details.

Marijuana remains illegal at the federal level in the United States, but federalism continues to work to the great advantage of the marijuana industry, providing a sustained tailwind for pot stocks. You can thank the Founding Fathers.

“Federalism” is a mixed mode of government that combines a federal government with state governments into a single political system. Federalism is embodied in the Constitution of the United States, and it ensures a system of checks and balances that has helped our democratic republic keep authoritarianism at bay for more than 240 years.

Various bills to legalize pot on a national basis are stuck in Congress, but the states have stepped into the breach. The total of legal “adult-use” (i.e., recreational) states currently stands at 18, along with the District of Columbia. There are currently 37 states that have medical marijuana laws, including all that allow recreational use.

Let’s look at the latest and most significant state-level developments regarding marijuana laws, regulations and sales.

California. Lawmakers in the Golden State last week advanced bills to authorize interstate marijuana commerce, implement employment protections for people who consume cannabis outside of the workplace, and prevent localities from banning medical marijuana delivery services.

The measures have reached the floors of the Assembly and Senate for consideration; analysts expect the measures to pass and reach the desk of Gov. Gavin Newsom (D) for his signature.

Illinois. Marijuana retailers in the Prairie State sold more than $135 million worth of adult-use marijuana in July, the largest monthly sales total so far this year and the second largest month since sales first launched in 2020, the Illinois Department of Finance and Professional Regulation announced last week.

Illinois marijuana dispensaries sold 3.2 million cannabis products worth a collective $135.6 million in July.

Maryland. Elections officials last week finalized the language for a marijuana legalization referendum that will appear on the ballot in November. They’ve also released a formal summary of the reform proposal.

The Maryland legislature in April approved two closely linked cannabis measures. One measure put the question of legalization to voters as a constitutional amendment on the ballot, and a complementary measure lays out the implementation infrastructure if voters approve the ballot initiative.

Last week, the Maryland Secretary of State certified the final text of the cannabis measure, designated as Question 4, that will go before voters:

“Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1, 2023, in the State of Maryland?”

Polls show that a majority of residents in the Old Line State favor legalizing marijuana.

Michigan. According to data released last week by the Michigan Cannabis Regulatory Agency, the Great Lakes State set a new monthly record for marijuana sales in July, reaching nearly $210 million.

The state witnessed $21.1 million in medical cannabis sales and $188.8 million adult-use marijuana purchases last month. That total is about $15 million greater than the previous monthly record set in April.

Nebraska. Marijuana is still illegal in the Cornhusker State, but individuals living in Nebraska are free to invest in cannabis operations in states where it is legal, a state ethics board has declared.

The eight-member Nebraska Lawyer’s Advisory Committee, which issued the marijuana advisory last week, provides guidance on technical matters concerning the practice of law.

An attorney who resides in Nebraska asked the panel if he could invest in a medical marijuana business in another state, where marijuana is legal, without violating the state’s Rules for Professional Conduct for lawyers. He got the green light, which implicitly paves the way for other investors.

As for legalization in Nebraska, the state is among those handful of deeply conservative jurisdictions whereby the loosening of pot restrictions does not seem to be on the political horizon.

New York State. New York cannabis regulators last week announced that they will officially begin accepting applications for the state’s first adult-use retail dispensary licenses, reserved for people harmed by the War on Drugs. Application reviews and acceptances are scheduled to begin August 25.

To qualify for a conditional adult-use marijuana retail license, applicants must have faced a conviction for a pot-related criminal offense prior to the enactment of legalization in the state or claim a direct relative with such a conviction. They also must prove experience in operating a qualifying business.

The Empire State became the 15th state to legalize recreational cannabis on March 31, 2021. The state has an estimated average of 1.6 million people who consume cannabis at least once a month, with 2.4 million who report consuming some at least once per year. Annual sales of adult-use cannabis in New York are projected to surpass $2.4 billion by 2025.

As I’ve just explained, new money-making opportunities are increasingly emerging in the realm of marijuana. But how can you separate the solid bets from the crap shoots? You need guidance.

That’s why I urge you to read my new book: The Wide World of Weed and Psychedelics. My book is your definitive guide for making money in the thriving cannabis and psychedelics industries. Click here to get a copy of my book.

John Persinos is the editorial director of Investing Daily.

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