Monday, July 20, 2009

California finds pot is a huge cash cow

AP via Seattle Times

SAN FRANCISCO — A drug deal plays out, California-style:

A conservatively dressed courier drives a company-leased Smart Car to an apartment on a weekday afternoon. Erick Alvaro hands over a white paper bag to his 58-year-old customer, who inspects the bag to ensure that everything he ordered over the phone is there.

An eighth-ounce of organic marijuana buds for treating his seasonal allergies? Check. An eighth of a different strain for insomnia? Check. THC-infused lozenges and tea bags? Check and check, with a free herb-laced cookie thrown in as a thank-you gift.

It's a $102 credit-card transaction carried out with the practiced efficiency of a home-delivered pizza — and with just about as much legal scrutiny.

More and more, having premium pot delivered to your door in California is not a crime. It is a legitimate business.

Now if they can just make it free if it doesn't come in under thirty minutes...

Although a dozen other states, including Washington, have adopted similar laws, California is the only one where privately owned pot shops have flourished. Los Angeles County alone has at least 400 dispensaries and delivery services, nearly twice as many outlets as Amsterdam, the Netherlands capital whose coffee shops have been synonymous with free-market marijuana for decades.

California's pot dispensaries now have more in common with a corner grocery than a speak-easy. They advertise freely, offering discount coupons and daily specials.

Meredith Lintott, Mendocino County's district attorney, argues that big-time growers never would bother filing tax returns. "Legalizing it isn't going to touch the big money," she said.

But others predict the black-market business model would fall apart.

Large-scale agri-businesses in California's Central Valley would dominate legal marijuana production as they already do bulk wine grapes, advocates argue. Pot prices would fall dramatically, forcing growers to abandon costly clandestine operations that authorities say trash the land and steal scarce water.

And legalization, supporters insist, would save state and local governments billions on police, court and prison costs.

But others survey California in 2009 and say the cannabis future is now. Richard Lee has parlayed two Oakland dispensaries into a mini-empire that includes a marijuana-lifestyle magazine, a starter-plant nursery and a three-campus marijuana trade school. Oaksterdam University's main campus is a prominent fixture in revitalized downtown Oakland.

All without legalization.

We're gettin' there.

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