California’s cannabis market is booming nearly five years after voters legalized recreational weed. But there’s a catch: The vast majority of pot sales are still underground.
California’s cannabis law lets local officials decide whether to open the door to cannabis or slam it shut. So far, most are opting for the latter. | Justin Sullivan/Getty ImagesLOS ANGELES — California’s cannabis market is booming nearly five years after voters legalized recreational weed. But there’s a catch: the vast majority of pot sales are still underground.
Licensed cannabis shops offering legal goods are sparsely scattered across the state — there are roughly 2 per 100,000 people, one of the lowest rates in the nation among states that support legal recreational sales. Law enforcement agencies in the last few months alone have broken up sprawling grow operations in the arid Antelope Valley and urban Alameda County, discovering around 50 tons of processed cannabis goods and more than 100,000 plants, a haul valued well above $1 billion.
Unlicensed dispensaries shuttered for city code enforcement violations often pop up again, sometimes right down the street. And cultivation sites like the one raided in Antelope Valley often resume operations just days later, law enforcement officials concede. California’s cannabis law lets local officials decide whether to open the door to cannabis or slam it shut. So far, most are opting for the latter.
Public meetings in places like Mountain View in the Silicon Valley and Anaheim have devolved into hours-long marathons filled with protests and name calling when the topic of allowing cannabis shops comes up. “Local control has, let's just be honest, crippled the California market and prevented it from reaching its potential,” said Hirsh Jain, founder of cannabis consulting firm Ananda Strategy.will take away that power, largely due to fierce support for local control from law enforcement and city and county officials.some jurisdictions to open their arms to weed. By Jain’s count, 28 cities will open their first dispensaries in 2022 and 37 more that will pass a retail ordinance.
Regulators warn that products purchased from unlicensed retailers pose a public health risk, pointing to a rash of lung illnesses related to untested vape cartridges that killed 68 people and hospitalized more than 2,800 nationwide in 2019.the face of opposition from SEIU, the powerful union that helped bankroll the 2016 ballot measure. The union disagrees with the industry argument that reducingwill spur growth and eventually boost tax revenue, said Robert Harris, a lobbyist for SEIU.
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