Please ensure Javascript is enabled for purposes of website accessibility

Alabama Legalizes Medical Marijuana

By Eric Volkman - May 18, 2021 at 9:19AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The state becomes the 37th sanctioning marijuana to some degree.

On Monday, Alabama became the latest in an ever-growing list of states to legalize marijuana to some extent, as Gov. Kay Ivey signed into law a bill that permits the sale and consumption of medical cannabis.

With Ivey's signature, the Deep South state becomes the 37th across the U.S. to legalize medical marijuana. Alabama's new law was passed by the state Senate earlier this month following amendments made by the Alabama House of Representatives. It sailed through the Senate in a 20 to 9 vote; the preceding House vote was also a crushing victory, at 68 to 34.

Alabama road sign with marijuana leaf.

Image source: Getty Images.

In addition to sanctioning medical weed, the law calls for the creation of the Alabama Medical Cannabis Commission, a state agency that will oversee the industry. The drug can be prescribed to qualifying patients suffering from a range of illnesses including cancer and epilepsy. 

Meanwhile, growers of the drug will be regulated by the Alabama Department of Agriculture and Industries.

As with numerous other legalization initiatives throughout the U.S., Alabama's law won't instantly create a market for the drug. Rules and procedures need to be established, in addition to licensing frameworks for entities involved in the marijuana business. Accordingly, the law stipulates that the cannabis commission must set these and start allowing applicants to file for licenses by Sept. 1, 2022.

As legal marijuana is entirely new to Alabama, none of the publicly traded pot companies are yet active in the state. One certain to have an eye on it is Trulieve Cannabis (TCNNF -1.76%), which is based in neighboring Florida and has a dominant position there. Trulieve, which recently announced its acquisition of Harvest Health & Recreation, is clearly eager to expand its footprint in other states.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Trulieve Cannabis Corp. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Trulieve Cannabis Stock Quote
Trulieve Cannabis
TCNNF
$12.84 (-1.76%) $0.23
Harvest Health & Recreation Inc. Stock Quote
Harvest Health & Recreation Inc.
HRVSF

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.