California is Still Cracking Down on Illegal Cannabis

Friday, June 07, 2019

California police carried out multiple raids on illegal marijuana grows Wednesday in an ongoing effort to tamp down on black market cannabis. The Riverside County Sheriff’s Department served 80 search warrants in Anza Valley and made several arrests. They seized an estimated 140,800 plants valued at $189 million, along with 3,00 pounds of processed marijuana, 17 rifles, and 10 handguns.

“There are legitimate concerns in Northern California particularly as it relates to illegal cannabis grows. They are getting worse, not better,” Governor Gavin Newsom said.

California has a comprehensive regulatory framework for legal marijuana, and cannabis growers are required to go through a step-by-step licensing process, including background checks. However, according to New Frontier Data, as much as 80% of the cannabis sold in the state comes from the black market. The company estimated that California’s black market marijuana is worth $3.7 billion, more than four times the size of the legal cannabis market.

A report from the state Cannabis Advisory Committee found that “Lack of enforcement is creating a thriving environment for the unregulated ‘underground market.”

The problem isn’t just limited to marijuana grows. The state Bureau of Cannabis control has sent 2,842 cease-and-desist letters to cannabis shops operating without state licenses.

“It’s difficult to say how many of those letters resulted in action,” Bureau spokesman Alex Traverso said. “Businesses could shut down and relocate.”

In June, local law enforcement raided five properties in Sonoma County that were producing medical marijuana oil. The owner of the company was using “illegal and hazardous production methods” in addition to breaking a number of city ordinances.

Cannabis is easy to get in the state: 1 in 5 Californians have purchased marijuana from illegal sources in the last three months, and 84% of those people said that they were highly likely to purchase cannabis from the same illicit source again.

In order for a regulated cannabis market to thrive and for consumers to get safe, high-quality cannabis, enforcement of marijuana regulations, and convincing non legal operations to go through the licensing process is essential.

“We believe that this governor is committed to addressing our concerns, and he has a Legislature that is showing their willingness to author bills that will strengthen the regulated market while minimizing the illicit market,” said Josh Drayton, a spokesman for the California Cannabis Industry Association.