Thoughts from the void: Cannabis and California

When the world became consumed by reefer madness, there were a few places that managed to stay sane. They kept the cannabis plant alive through its cultivation and usage and did not allow the plant to die. One of these places was California. The American state is the world's fifth largest economy and home to many industries. It was the home of counter culture in the 1960s and cannabis was a major part of this counter culture movement that stood against war and coercive governance, against the destruction of nature and against inequality. Cannabis was so much a part of this movement that the US federal government decided that one of the best ways to destroy the movement and to remove dissent against war and mandatory military draft was to push for the world wide ban on cannabis through the UN. The ban proved successful in most places globally but not in California. In spite of repeated attempts, the government failed to eliminate the plant and change the thinking of its users, mainly poets, musicians, philosophers and writers who saw through the visions of worldwide domination through military power and control over oil that the country's politicians were trying to sell. Humboldt, along with Mendocino and Trinity counties which form California's Emerald Triangle is the stuff of legends producing some of the best cannabis in the world

Cannabis was grown by a number of small farmers who supplied the plant to a significant number of consumers. The cannabis community gradually pushed through the message of the medical and recreational benefits of cannabis and of how wrong cannabis prohibition was. Over many years research on the plant continued in leading scientific institutions in the state that were at loggerheads with the federal governments, led by the likes of Nixon and Reagan, who were determined to keep the plant outlawed. The plant was gradually legalized for various medical conditions in the course of the 1990s and the number of physicians prescribing the plant and the patients using it, often through self prescription, grew so much that cannabis for medical use became a legal reality in the state. Finally in 2016, the people of California voted overwhelmingly in favor of adult recreational use through Proposition 64 which allowed licensed cultivators and sellers to grow and sell the plant to its citizens. This was a significant move in the global cannabis legalization scenario given California's worldwide influence. With legalization for adult use, many growers procured temporary licenses and the legal cannabis industry took off finally after decades of prohibition.

High end retail outlets, large scale growers and multi-million dollar cannabis companies are now a part of the legal landscape. Cannabis lounges are being looked at to address the issue of consumers not having places to consume their cannabis without interference and harassment. Lawmakers have ruled in favor of allowing caregivers to medicate students suffering from debilitating medical conditions like epilepsy with cannabis within school premises. Earlier these children were not even able to attend school due to their medical conditions. Taxes from cannabis are now being utilized to improve school education, improve infrastructure and to create funds to support startups and businesses for people who suffered disproportionately in the war against cannabis. Some of California's leading universities and research centers have embarked on in depth research into the plant that should yield high quality results and find new ground-breaking applications in the field of medicine, industry, culture and recreation.

Yet, the illegal cannabis market in California is still four times larger than the legal market. There are a number of reasons for people choosing to remain in the black market. Licenses have been an issue with temporary licenses initially being issued as the state got its regulatory framework in place. It was only from 2019 that permanent licenses were issued. The switch over has concerned many license holders. According to Proposition 64, a city, county or municipality can decide to ban cannabis growth and retail within its limits. Given this option, only 30% of Californian cities have allowed adult recreational cannabis. The rest remain opposed or demand exorbitant fees from entities wishing to set up cannabis businesses locally. In spite of this, in 2020 California’s legal market – which launched in 2018 – hit $4.4 billion in sales, compared with $2.8 billion in 2019 and $1.4 billion in 2018. Home delivery of cannabis is being looked at as a way to address this issue and provide access to cannabis users especially the elderly and the ill though there are still people continuing to oppose this, giving flimsy excuses like cash carried by delivery vans being a security risk. Cannabis regulations are said to be confusing with almost 142 pages of new cannabis related regulations in the draft stage. The small growers who are the backbone of the cannabis world find it extremely difficult to move into the legal market with the regulations and restrictions that currently exist and to compete with businesses with deep pockets. Banking still does not support the cannabis industry and it is still mainly cash only with a few credit unions offering support. Equity in the industry is a challenge as women, minority groups and those who are victims of the war on cannabis still finding it very hard to enter into the booming legal businesses. The number of persons who face prison sentences and criminal records are still high. There is the risk of environmental damage through cannabis businesses going all out and using artificial lighting, excess water, chemical fertilizers and pesticides to maximize profits at the cost of the environment. This is especially ironic since naturally grown cannabis is one of the most environmentally sustainable plants.

These are challenges that need to be overcome as the plant comes back into mainstream society. It is very likely that the next few years should iron out the creases that still exist in the legal industry. A new pro-cannabis governor taking charge in 2019 is seen as a positive. Sun grown cannabis from California could emerge as some of the world's finest varieties. The Golden State's legal cannabis world could be just the medicine needed to further fuel its creativity and power of influence in the world. Whether the plant will become truly free in California or whether big businesses will corner it at the cost of the ones who need the plant the most, the poorest, the minorities, the indigenous people, the ill, the elderly, the youth and women remains to be seen. How cannabis once again finds its equilibrium in the state of California is something that may set the template for changes all over the world.

At least 35 US states have legalized cannabis for medical use so far. The federal US government however continues to keep cannabis in the Schedule 1 list of banned substances saying that it has no medicinal value. The list of US states that have legalized adult recreational cannabis is available here. All these states have legalized cannabis for adult recreational use, aimed specifically at improving public health, ensuring equity, reducing crime, decreasing the black market, improving law enforcement, reforming criminal justice, improving the economy, agriculture and industry, to name just a few reasons.

Listed below are articles taken from various media related to the above subject. Words in italics are the thoughts of your truly at the time of reading the article.

'Safe in Mexico, I watched the anti-junk campaign. I read about child addicts and Senators demanding the death penalty for dope peddlers. It didn't sound right to me. Who wants kids fr customers? They never have enough money and they always spill under questioning. Parents find out the kid is on junk and go to the law. I figured that either Stateside peddlers have gone simple-minded or the whole child-addict set-up is a propaganda routine to stir up anti-junk sentiment and pass some new laws.
Refugee hipsters trickled into Mexico. "Six months for needle marks under the vag-addict law in California." "Eight years for a dropper in Washington." "Two to ten for selling in New York."' - Junky, William S Burroughs, 1977, originally published in 1953

'The overall displacement or cannibalization of tobacco by cannabis products in California alone amounted to $84.5 million overall from 2017-2018 (not including 2017 e-cigarettes, figures for which were not available). The shifts amounted to $33.8 million for cigarettes, $8.3 million for non-cigarette tobacco, and $42.6 million for e-cigarettes (in 2018 only).

Across the U.S. overall, the 2018 spending shifts amounted to $4.3 billion for alcohol: (1.54% of that market), $1.3 billion for pharmaceuticals (1.10%), and $219 million (0.22%) for tobacco.'
https://newfrontierdata.com/marijuana-insights/altria-pmi-merger-confirms-longtime-predictions-marks-industry-progression/

'Applicants that qualify for the city’s social equity program will get priority in having their applications processed.

But only 100 retail licenses will be awarded during the coming application period, and they’ll be available on a first-come, first-served basis, according to the DCR website.'
https://mjbizdaily.com/los-angeles-opens-next-cannabis-licensing-round-for-100-retail-permits/

Cannabit from New Frontier Data...

'The 29 U.S. states having reporting licensed hemp cultivation acreage total nearly half a million acres in combined cultivation land area, a massive increase over 2018’s combined U.S. total of just over 100,000 acres.
Colorado leads the nation in hemp cultivation and processing land area with over 80,000 acres reported.
Oregon, Kentucky, Tennessee, and Montana lead in hemp program expansion efforts.
Tennessee leads in total hemp licenses issued in 2019.
At least 70% of the 2019 U.S. hemp harvest is intended for extract production.
California is poised to be the top-producing hemp state for both conventional and organic production as thousands of acres have already been planted in 2019'

https://newfrontierdata.com/marijuana-insights/hemp-licenses-issued-by-state-2019/

'The social equity program in California is designed to help people or communities disproportionately impacted by cannabis criminalization by providing funding for assistance and services to local equity applicants and licensees.'
https://mjbizdaily.com/california-awards-cities-10-million-in-social-equity-marijuana-grants/

'Researchers interested in the history of marijuana and medicine will appreciate learning about the Tod Mikuriya Papers (1933–2015), a newly-available archival collection here at the National Library of Medicine (NLM). Tod Mikuriya (1933–2007) was a psychiatrist and medical marijuana activist. In addition to his work in addiction medicine and biofeedback, he is well-known for compiling Marijuana: Medical Papers, 1839–1972, a master bibliography of historical resources on marijuana, and for campaigning for California Proposition 215 (Prop 215) which legalized medical marijuana in the state in 1996. Dr. Mikuriya conducted research on marijuana use and founded the California Cannabis Research Medical Group, a non-profit educational organization.'
https://circulatingnow.nlm.nih.gov/2020/02/25/tod-mikuriya-papers-now-available-for-research/

The urban legend of 420..
https://thedcapage.blog/2020/04/21/california-dreamin-or-the-tale-of-420/

Cannabis legalization in India is to the world what cannabis legalization in California was to the US...India needs to wake up to it's cannabis heritage and destiny...
Jul 20, 2020, 4:56 PM

'The practice itself – of landowners entering into contracts with farmers to grow marijuana – is nothing new, said Hezekiah Allen, board chair of California cannabis farmer cooperative Emerald Grown.

Allen, who grew up in Humboldt County, the heart of California’s Emerald Triangle, said he took part in such a deal himself from 2006 to 2008.

“I was a sharecropper for a few years. It was kind of how you got established in the business,” Allen said.

In that sense, he said, it was akin to “an apprenticeship, where you manage someone else’s farm for less than you were worth before you got your own farm.”

These days, Allen said, it’s more a question of precisely how such agreements and contracts are structured, which he noted can often get “messy.”'
https://mjbizdaily.com/contract-cannabis-farming-gaining-popularity-in-california-but-practice-draws-lawsuits/

'Applicants that qualify for the city’s social equity program will get priority in having their applications processed.

But only 100 retail licenses will be awarded during the coming application period, and they’ll be available on a first-come, first-served basis, according to the DCR website.'
https://mjbizdaily.com/los-angeles-opens-next-cannabis-licensing-round-for-100-retail-permits/

'The social equity program in California is designed to help people or communities disproportionately impacted by cannabis criminalization by providing funding for assistance and services to local equity applicants and licensees.'
https://mjbizdaily.com/california-awards-cities-10-million-in-social-equity-marijuana-grants/

'California has raised $1 billion in cannabis tax revenue since the industry kicked into gear in January 2018, according to figures recently released by the state.

The bulk of that $1.03 billion in tax money, after covering regulatory costs, has been spent on programs such as child care for low income families, cannabis research, public safety grants and cleaning up public lands harmed by illegal marijuana grows.'
https://www.ocregister.com/2020/03/10/california-passes-1-billion-in-cannabis-tax-revenue-two-years-after-launching-legal-market/

'While a review of California’s latest licensing activity for cannabis cultivation reveals the state’s continued market evolution, one truism has been restored: Humboldt’s return as king. After briefly ceding its primacy to Santa Barbara County late last year, Humboldt has re-established its place as the state’s top legal growers’ market.

Indeed, the Emerald Triangle (i.e., Humboldt, along with Mendocino and Trinity counties) now accounts for nearly half (47%) of all licenses issued in the state.'

https://newfrontierdata.com/cannabis-insights/humboldt-once-again-king-of-californias-cultivating-counties/

'California’s fabled Emerald Triangle (i.e., Humboldt, Mendocino, and Trinity counties) accounts for half of California’s cannabis licenses, affirming the region’s longstanding reputation as the nation’s top-producing cannabis region.
The licensing distribution widens the north-south divide in the state’s cannabis cultivation, with those plus Sonoma, Lake, and Yolo counties anchoring northern production while Santa Barbara, Los Angeles, and Monterey counties lead production to the south.
While most companies hold fewer than 10 licenses, nearly one-fifth (18%) among more than 5,000 issued cultivation licenses are held by just 20 companies, signaling early consolidation in the space.
Indoor cultivation accounts for but 14% of licensing, while mixed-light operations (i.e., greenhouses with supplemental light) total more than do outdoor cultivators (45% vs. 41%, respectively), reflecting some significant cost advantages in cultivating under natural light.'

https://newfrontierdata.com/cannabis-insights/california-cannabis-cultivation-licensing-update/

'“This process has become untenably long and financially draining for the applicants, most of whom have been paying leases on expensive properties for over a year,” social equity retail winner Whitney Beatty wrote in an email to MJBizDaily.

Beatty said that, like her, many of the 100 retail winners are running into “investor fatigue” and are just “weeks, not months” from running out of cash to keep alive their storefronts and license hopes.

According to the Cannabis Equity Retailer Association, the losses of only 60 of those license winners add up to over $1.2 million per month in real estate payments for shops that remain unopened.'
https://mjbizdaily.com/los-angeles-marijuana-market-remains-chaotic-as-entrepreneurs-wait-for-mayor-city-council-to-act/

'Gov. Gavin Newsom (D) said at a press conference that he’s “very proud of this state” for going beyond issues such as implicit bias in policing and the “deadly use of force.” California’s leadership helped advance “a conversation about broader criminal justice reform to address the issues of the war on drugs” and “race-based sentencing,” he said.

“That’s why the state was one of the early adopters of a new approach as it relates to cannabis reform. Legalization around adult-use of marijuana,” he said. “It was a civil rights call from our perspective.”'
https://www.marijuanamoment.net/california-governor-says-marijuana-legalization-is-a-civil-rights-matter-amid-mass-protests-over-racial-injustice/

'Judge Thomas Anderle ruled on May 15 that the sheriff’s office had to return the seized property because “the record here shows that a California licensed cannabis operator committed no crime, much less intentionally committed a crime.”

After Santa Barbara sheriff’s deputies raided Arroyo Verde Farms in January and seized the oil and cash, the sheriff’s office tried to persuade Judge Anderle that the assets should be forfeited to them because they were connected to an ongoing criminal investigation into the farm.

Anderle disagreed and ordered the oil released to its owners.'
https://mjbizdaily.com/judge-orders-santa-barbara-county-sheriff-to-return-seized-marijuana-oil-cash/

'If another increase had been deemed necessary, it would have gone into effect July 1.

But the agency stated that the current rate will remain unchanged for at least another six months, until its next recalculation.

“We have determined the cannabis markup rate will remain unchanged at 80% for the remainder of the 2020 calendar year,” the CDTFA noted in its bulletin.

“To make this determination, we used an analysis of statewide market data to calculate the markup rate between the wholesale cost and the retail selling price of cannabis and cannabis products.”'
https://mjbizdaily.com/california-marijuana-excise-tax-to-remain-stable-through-2020/

The war on drugs is morphing into a war on unlicensed retailers now..these unlicensed retailers are most likely from the poorer and minority communities unable to pay the price and qualify for licensed retail. At some point of time, the cannabis plant needs to be recognized as just another plant, requiring as much regulation as, say, spinach. That is when we can say that the plant has been truly normalized. Otherwise, the same crimes against the same people are going to be enacted in a different garb, while the upper classes buy their posh cannabis at exorbitant prices from licensed cannabis shops run by celebrities..
https://mjbizdaily.com/los-angeles-illicit-cannabis-enforcement-suffers-setbacks/

'The recommendations include:

- Granting temporary approval for all social equity license applicants.
- Allowing applicants and businesses to relocate within the city; currently, applicants are required to find a location and stick with it through the licensing process.
- Limiting new storefront retail licenses and delivery licenses to social equity applicants until 2025.
- Improving processes to minimize “predatory practices” in the social equity program'
https://mjbizdaily.com/los-angeles-proposes-major-course-change-for-marijuana-business-licensing-social-equity/

'In the United States, most methamphetamine is sold as methamphetamine. However, there have also been reports of tablets sold as “ecstasy” that contained methamphetamine instead (notably in Missouri). The sale of methamphetamine in the form of falsified Adderall tablets is a new phenomenon, with laboratories manufacturing such falsified medicaments found in a number of states, in particular Georgia and California. The expansion of methamphetamine trafficking has also gone hand in hand with the increasingly common practice of mixing methamphetamine with fentanyls. This practice has proved to be particularly harmful and has contributed to the rapid rise in methamphetamine-related deaths in recent years.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf