California Today: What if Legal Pot Costs More Than Black-Market Pot?

https://www.nytimes.com/2017/09/19/us/california-today-a-marijuana-conundrum.html

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Good morning.

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Today’s introduction comes from Thomas Fuller, the San Francisco bureau chief.

California has a marijuana conundrum.

As regulators in California prepare for the start of recreational marijuana sales in January, people in the industry say they are concerned that the rollout may not be as smooth as was promised by the promoters of Prop 64, the ballot measure last November that legalized pot.

In addition to the low numbers of cannabis farmers who are joining the legalized system — only around one-tenth of growers have applied to county authorities for permits — there is the question of price.

Three years ago, when Colorado began its recreational marijuana program, prices at dispensaries there were significantly lower than the black market, providing an incentive for consumers to join the legal system.

The situation is reversed in California. There is so much pot being grown in California that the wholesale price has been falling sharply in recent years and any pot sold on the legal market in January will have the added costs of taxes, fees and mandatory testing for pesticides and other chemicals.

Tawnie Logan, chairwoman of the board of the California Growers Association, an advocacy group for small-scale marijuana producers, says the black market price for an eighth of an ounce of marijuana is around $20, compared with $50 in dispensaries.

She predicts a bump in legal sales in January when recreational pot goes on sale because of the novelty of being able to buy pot in a store. But that novelty may wear off, she said.

“All of a sudden they are calling their buddy again,” Ms. Logan said, referring to black-market vendors who have thrived in California in recent decades.

When regulators are asked how they plan to handle the black market their answer is law enforcement. This may prove difficult in areas of Northern California where pot is central to the local economy.

“You would be turning these law enforcement agencies against their own communities,” said Terry Garrett, a manager at Sustaining Technologies, a marketing company that researches the cannabis market in Sonoma County.

“That’s the conundrum for California.”

(Please note: We regularly highlight articles on news sites that have limited access for nonsubscribers.)

• “Democrats created an out-of-control deportation machine!” A group of young immigrants shouted down Representative Nancy Pelosi at a news conference in San Francisco. [The Associated Press]

• California’s recent legislative moves could make re-election more difficult for President Trump. Here’s why. [The Washington Post]

• State lawmakers had planned to restore internet privacy rules killed by Congress. They failed. [Fortune]

• California could become the first state to ban sale of puppies, bunnies and kittens that don’t come from shelters. [The New York Times]

• Millions of families and farmers would have to pony up for Gov. Jerry Brown’s so-called delta tunnels. The project would rework California’s north-to-south water system. [The Associated Press]

• California’s national monuments were spared in a review by Interior Secretary Ryan Zinke. But he wants to shrink six others, including Cascade-Siskiyou in Oregon. [The Mercury News]

• An appeals court reinstated California’s ban on foie gras. Some chefs are not happy. [Grub Street]

• As Facebook seeks its next billion users, its global hurdles are stark: privacy disputes in Europe, suspicions in Africa, censorship in China. [The New York Times]

• An Orange County couple gave $200 million to U.C. Irvine. It’s one of the largest gifts ever to a public university. [Orange County Register]

• In a poll, more than half of California voters said they considered moving because of the state’s housing crisis. [Sacramento Bee]

• Video: Watch Marshawn Lynch fire up Raiders fans with a lively dance on the sidelines. [Slate]

• Some people weren’t laughing after Sean Spicer’s cameo at the Emmy Awards. [The Atlantic]

• Grand Central Market, the Stahl House and the El Capitan Theatre: A drone tour of Los Angeles. [Mingomatic | YouTube]

With the start of the N.F.L. season, the reality of a Charger-less San Diego is sinking in.

The owner of the Chargers, Dean Spanos, moved the team to Los Angeles this year after efforts to build a new stadium fell apart.

The team had been in San Diego more than half a century.

Fans have been handling the transition in different ways.

Some resolved to put their anger at Mr. Spanos aside and continue to root for the players. Others have moved on.

And some, tormented by feelings of betrayal, are openly rooting for the Los Angeles Chargers to fail.

These former fans have relished the team’s rocky, 0-2 start to the season.

Victor Lopez, a supporter turned opponent, said it’s about more than just a sport. He cited the camaraderie among fans that the Chargers had fostered for decades in San Diego.

“A lot of us are suffering,” he said. “Most people in San Diego will never forgive Spanos, never.”

Mr. Lopez, 41, runs El Pollo Grill in Bonita, just south of San Diego.

Watching the Chargers play the Broncos last week, he had an idea to get back at the team.

He made a post on Facebook: After every Charger loss all season long, customers could come get a free taco.

Just say “Spanos Taco” and pick any taco off the menu.

On Monday, a day after the Chargers fell to the Dolphins, the line was out the door all day, Mr. Lopez said.

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The California Today columnist, Mike McPhate, is a third-generation Californian — born outside Sacramento and raised in San Juan Capistrano. He lives in Los Osos. Follow him on Twitter.

California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley.