ILLICIT POT SALES BOOM IN CALIFORNIA DESPITE LEGALIZATION

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An employee packages cannabis eighths in the packaging room at the CMX Distribution Center in Costa Mesa, Calif., April 9, 2019. California has a massive oversupply of illicit marijuana that is undermining licensed shops and threatening the state’s giant legalization experiment. (Jenna Schoenefeld/The New York Times)

COSTA MESA, Calif. — In the forests of Northern California, raids by law enforcement officials continue to uncover illicit marijuana farms. In Southern California, hundreds of illegal delivery services and pot dispensaries, some of them registered as churches, serve a steady stream of customers. And in Mendocino County, north of San Francisco, the sheriff’s office recently raided an illegal cannabis production facility that was processing 500 pounds of marijuana a day.

It’s been a little more than a year since California legalized marijuana — the largest such experiment in the United States — but law enforcement officials say the unlicensed, illegal market is still thriving and in some areas has even expanded.

“There’s a lot of money to be made in the black market,” said Mendocino County Sheriff Thomas Allman, whose deputies seized cannabis oil worth more than $5 million in early April. Legalization, Allman said, “certainly didn’t put cops out of work.” California Gov.

 

Gavin Newsom has declared that illegal grows in Northern California “are getting worse, not better” and two months ago redeployed a contingent of National Guard troops stationed on the border with Mexico to go after illegal cannabis farms instead. Conscious of the consequences that the war on drugs had on black and Latino communities, cities like Los Angeles say they are wary of using criminal enforcement measures to police the illegal market and are unsure how to navigate this uncharted era.

California gives cities wide latitude to regulate cannabis, resulting in a confusing patchwork of regulations. Los Angeles, San Francisco, San Jose and San Diego have laws allowing cannabis businesses, but most smaller cities and towns in the state do not — 80% of California’s nearly 500 municipalities do not allow retail marijuana businesses. But the more fundamental reason for the strength of the black market in California — and what sets the state apart from others — is the huge surplus of pot. Since medical marijuana was made legal in California more than two decades ago, the cannabis industry flourished with minimal oversight.

 

Now many cannabis businesses are reluctant to go through the cumbersome and costly process to obtain the licenses that became mandatory last year. Of the roughly 14 million pounds of marijuana grown in California annually, only a fraction — less than 20% — is consumed in California. The rest seeps out across the country illicitly, through trafficking routes that have existed for decades.