Report: CA dispensaries illegally selling adult-use cannabis

Some California dispensaries are skirting the law and selling recreational cannabis to non-medical customers, according to the Orange County Register.

The newspaper reports that since voters legalized adult use last November, dozens of retail outlets throughout the state are allowing customers to purchase cannabis with little more than a driver’s license – versus a doctor’s recommendation, which California’s medical marijuana law has long required.

The stores are deeming themselves “Proposition 64 friendly,” according to the Register.

However, the regulations for California’s recreational cannabis market have not been issued and no retail marijuana stores can legally operate until the state develops a licensing system, which is expected to take until next January, the Register noted.

The legal, state-sanctioned marijuana industry in California could face a tough road ahead when it comes to competing with a well-established marijuana black market.

Industry watchers say businesses that operate outside the law do a disservice to the entire industry.

“We’ve got to make it possible for licensed businesses to have a fighting chance or the whole thing’s going to fail,” Aaron Herzberg, a partner in MMJ real estate company Calcann Holdings, told the Register.

5 comments on “Report: CA dispensaries illegally selling adult-use cannabis
  1. Andre on

    It’s a sad truth. I’ve just ended business dealings in this market in the highly regulated Colorado business market and after 3 years they are still coming into compliance. But then I visit businesses of the type mentioned in Los Angeles I literally walked into several without no more than door security as employees and customers came in off the street and made purchases. There’s a major defiance thoughout the entire market where a majority and I would say 90% are skirting the Law and they just do not care about current or future licensing or what’s to come This January 2018

    Reply
  2. Andre on

    It’s a sad truth. I’ve just ended business dealings in this market in the highly regulated Colorado business market and after 3 years they are still coming into compliance. But then I visit businesses of the type mentioned in Los Angeles I literally walked into several without no more than door security as employees and customers came in off the street and made purchases. There’s a major defiance thoughout the entire market where a majority and I would say 90% are skirting the Law and they just do not care about current or future licensing or what’s to come This January 2018 that’s going to hurt legitimate businesses

    Reply
  3. Nicole on

    Big surprise. If everyone wasn’t so gross about making sure their personal pockets were lined this “black market” wouldn’t exist. You reap what you sow, and shadiness begets shadiness.

    Reply
    • Rick Fague on

      I agree, these are shortsighted people and they’re risking their livelihoods if the regulators decide to make examples of them.

      Reply
  4. Andrew Collier on

    It is part of the culture. Living in San Francisco I eventually figured out why so many shops, restaurants, etc. are cash only. I had a friend hired at such an establishment under the table. It clicked with me finally, these “progressive California” businesses were tax evaders for the most part. You are in for a ride in CA if you think former black market operators in the CA industry who don’t even want legalization are going to fall in line with MJ regs. The IRS and eventual state regulator will need serious enforcement resources and a will to win if this is going legit.

    Reply

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