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A Funny Thing Happened on the Way to Cannabis Legalization: Illegal Pot Still Thrives
In the decade since the first states legalized recreational marijuana, about half the country has moved to allow adults to buy regulated pot from authorized sources. But in some states, that’s been more theory than practice.
New York’s Struggle with Licensing Legal Cannabis Retailers
In New York, which legalized marijuana in 2021, retail sales are dominated by ubiquitous illegal “smoke shops,” while the state struggles to license legitimate ones. Governor Kathy Hochul has called the transition “a disaster,” and has pledged to crack down on the illegal sellers.
Maine’s Battle Against Illegal Cannabis Producers
In Maine, the congressional delegation last summer asked the Justice Department for help in combatting illegal cannabis producers, who outnumber the state’s licensed operations and are believed to be funded in part by Chinese investors.
The Persistence of the Black Market in California
And in California, where voters approved recreational pot in 2016, state officials readily acknowledge the industry still operates mostly in the shadows. “The black market is very pervasive and it’s definitely larger than the legal market,” says Bill Jones, the head of enforcement for the state’s Department of Cannabis Control.
Challenges Faced by Licensed Producers and Retailers
California is the biggest example of the unfulfilled promise of a legitimate cannabis market. Some entrepreneurs blame high taxes and start-up costs for licensed producers and retailers. Smaller operators often have trouble getting access to capital, as the continued federal prohibition on the marijuana business makes it virtually impossible for them to tap into traditional financial services.
Law Enforcement’s Role in the Growth of the Black Market
Jones, however, focuses on what law enforcement did — or rather, what it didn’t do — in the first few years after the vote to allow a licensed weed industry. “Most jurisdictions — local jurisdictions — police or sheriff’s departments and district attorney’s offices, were very reluctant to do any kind of enforcement on cannabis,” he says. “It really created an air of impunity, and the unlicensed activity really skyrocketed.” Washington state, by contrast, maintained law enforcement pressure on illegal marijuana after voters legalized pot in 2012, which gave the new licensed industry time to establish itself.
Efforts to Curb the Black Market in California
In California, the Department of Cannabis Control (DCC) is now trying to close the gap. It gathers anonymous tips about unlicensed cannabis stores, which operate semi-openly out of storefronts that aren’t hard to identify. These raids have ramped up in the last couple of years, especially in Los Angeles. Some of the unlicensed retailers have shifted toward delivery services. But the penalty for getting caught selling unlicensed marijuana is relatively light — usually a $500 fine, unless the person has broken other laws — and law enforcement officers find themselves raiding the same storefronts over and over again.
The Economic Factors Driving the Black Market
Tiffanie Perrault, a postdoctoral researcher at McGill University in Montreal who studies cannabis markets, explains that the black market becomes more competitive when legalization removes the risk and attracts more consumers. The black market also benefits from the restrictions on licensed competitors, as only about 40% of local jurisdictions in California permit cannabis stores. Additionally, high taxes on licensed pot can reach 38%, making black market prices more appealing to buyers.
The Impact on Public Safety and Criminal Activity
The persistence of the black market has significant consequences for public safety. Unlicensed cannabis stores often have ties to gangs and organized crime. In rural areas like Riverside County, illegal grow operations have led to multiple reports of homicides, kidnappings, human trafficking, and rapes. The illegal export of California’s marijuana to states where it is still illegal has attracted Mexican drug cartels and Asian human smuggling rings.
The Road to Curbing the Black Market
Bill Jones of the DCC believes that legalization was imperative, but acknowledges that curbing the black market will require significant resources and consistent enforcement over many years. Efforts to crack down on unlicensed cannabis stores and illegal growers are ongoing, but it remains a challenging task.
SDGs, Targets, and Indicators
1. No Poverty
- Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services including microfinance.
8. Decent Work and Economic Growth
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises.
16. Peace, Justice, and Strong Institutions
- Target 16.4: By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets, and combat all forms of organized crime.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services including microfinance. | N/A |
| Decent Work and Economic Growth | Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises. | N/A |
| Peace, Justice, and Strong Institutions | Target 16.4: By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets, and combat all forms of organized crime. | N/A |
Explanation:
1. The issue of illegal cannabis sales and the dominance of the black market in the cannabis industry are connected to the SDG of No Poverty. Target 1.4 aims to ensure equal rights to economic resources and financial services for all individuals, including the poor and vulnerable. The article highlights the presence of illegal cannabis stores that evade taxes and do not contribute to providing services for the community.
2. The specific target under No Poverty that can be identified is Target 1.4.
3. No specific indicators are mentioned or implied in the article that can be used to measure progress towards Target 1.4.
4. The table presents the identified SDGs, their corresponding targets, and the lack of specific indicators mentioned in the article.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: laist.com
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