State Governments Are Creating Their Own Drug Cartels

“some states legalized it, hoping to put an end to the black market. But legalization hasn’t ended the violence.

Why? Because many states impose so many unnecessary rules.

California is one of the worst.

“The illicit market is approximately two to three times the size of the legal market,” says cannabis industry lawyer Tom Howard in my new video.

Illegal sales thrive in California because politicians make distribution pointlessly difficult.

Howard advises clients who want to open a dispensary, “You have to have a $50,000 safe, a $200,000 security system, and a $100,000 consultant help you make an 800-page application.”

Every single plant must be weighed, tagged, and tracked from seed to sale.

This information is “not being used to benefit anybody,” complains grower Jason Downs. “It’s just a waste of everybody’s time, money.”

While legal sellers struggle, clueless California Gov. Gavin Newsom complains: “Illegal cannabis grows! They’re getting worse, not better.”

His solution: California taxpayers now will spend $100 million to bail them out!”

“Illinois’ rules are probably the worst.

“Only ‘social equity veterans’ in Illinois can get a license,” explains Howard. In other words, new licenses are supposed to go to prior “victims of the drug war.”

But the bureaucrats’ rules are so complex that a full year after legalization, zero new licenses have been issued.

Meanwhile, politically connected people grabbed every existing license.

One billionaire from the Wrigley gum family “paid $155 million for six dispensary licenses,” says Howard. Illinois is “creating a cartel.””

“Other states have bad rules, too.

“Florida and Arizona are millionaires’ clubs,” says Howard. “You have to not only grow it; you have to be able to produce it and process it. You have to own your own dispensary. If you have $40 or $50 million, it’s great.”

Massachusetts requires all dispensaries to black out windows lest anyone see the marijuana. Stores must also check everyone’s IDs multiple times.

Legalization doesn’t have to be stupid.

Oregon and Colorado have reasonable rules, and in Oklahoma, “anyone can get a cannabis license,” says Howard, “provided you’ve lived in Oklahoma for two years.”

The result?

“You get a lot more innovation—more entrepreneurs coming into market. Some go out of business, and some do very well….It’s free market capitalism.”

That works!”

Housing-Starved San Francisco Fines Developer $1.2 Million For Building Too Many Units

“Planning documents show that in 2013 the city granted permission for the construction of five buildings—containing 10 units of housing plus office space and ground-floor retail—on lots that were either vacant or featured a shuttered gas station.

The developers instead ended up building 29 total units without any of the offices or open space they had promised. In addition, the final project lacked some of the promised parking spots and had none of the fancy façade features depicted in the original plans. The new units also lack a second means of egress, which is required for fire safety purposes.

The project received its final certificate of occupancy in 2016. According to the Chronicle, problems with the neighbors began even before construction was finished, as it became clear that the façade going up in their neighborhood did not match the plans approved by the city.

“I saw it go up and I thought, ‘This turd is not what we were promised,'” one neighbor told the Chronicle.

The Planning Department’s website shows several complaints dating back to 2017 about the building’s illegal units, lack of below-market-rate rental units, and absence of promised street trees.”

“The question is what will now happen at the currently occupied apartment complex.

The developers’ attorneys have filed applications to legalize the additional, unapproved units and to add fire escapes on the rear of the building. That will require the city to grant variances for the properties, which are collectively zoned for only 14 units. That’s not guaranteed to happen, so some of the current units may end up getting dismantled and their occupants forced to move elsewhere.”

How California’s bizarre recall system could elect a Republican governor

“The first question voters will see on the ballot: Should Governor Newsom be recalled? Voters get to answer yes or no.

The second question: If Newsom is recalled, who should be his replacement? Here voters are presented with 46 candidates (Republicans, Democrats, and others) — but not Newsom. Mail-in voting has already begun, and in-person voting will take place September 14.

Here’s where it gets bizarre. Newsom needs to win a majority of the vote to stay in office. If he fails to get that majority, his replacement can win merely by being the top-vote getter in a crowded field. Two recent polls have shown conservative talk radio host Larry Elder (R) in first place with 23 percent of the vote — a small plurality that could still make him governor if Newsom loses the recall question.”

“in theory, the recall process is all about giving more power to the people so they can boot out politicians they think need to go. Who could be against that? But the devil’s in the details about just who “the people” happen to be, and how that choice is structured.

For one, to get the recall on the ballot, activists needed to meet a relatively low signature threshold: 12 percent of the voters who turned out in the last governor’s election. Even in a deep-blue state like California, 38 percent of voters backed Newsom’s GOP opponent last time around, so with the proper shoe leather and funding, that wasn’t a very hard threshold to meet.

Turnout is another issue. The nature of a recall means it’s an election that happens at an odd time, and oddly-timed elections can have a different electorate, in which those who are more fired up are more likely to turn out. So in practice, what the recall can do is give an impassioned minority of voters a chance at scoring an unexpected victory, due to low turnout from the less-engaged majority.”

“The handling of the replacement candidates is also unusual because, unlike in typical elections, there are no primaries beforehand in which the field is sorted. So this time around there are 24 Republican candidates, 9 Democrats, and 13 others from third parties or with no party preference. With only a plurality necessary to win if Newsom loses the recall question, and no runoff, this poses the possibility that someone with a small slice of the vote would end up governor. This thrills conservatives, since a conservative candidate would have little chance of winning a typical two-candidate California election.

Another feature of the system takes away one possible choice from voters: Newsom is prohibited from appearing as a replacement candidate. That creates the strange asymmetry where Newsom needs a majority on the recall question to stay in office, but his replacement does not need a majority to be elected.”

California mandated masks. Florida opened its restaurants. Did any of it matter?

“the science on masks is clear: They work. Even experts I spoke with who think harsh lockdowns may have been counterproductive say indoor mask mandates were clearly effective.

“Indoor masking guidance was proven to be effective,” Amesh Adalja, senior scholar at the John Hopkins Center for Health Security, told me. “When you look at it all, I think that is probably going to be the one that shows the most effect. … Most things can be done safely if people socially distance and wear a mask indoors in an unvaccinated setting.”

The available research supports that conclusion. In a study published in March 2021, CDC researchers examined case and death rates at the county level after mask mandates were put into place and found the mandates were associated with slower transmission.”

“An earlier study, published in June 2020 in Health Affairs, had reached the same conclusion. Its authors estimated that mask mandates had averted some 200,000 Covid-19 cases by mid-May; at the time, the US had counted less than 2 million cases, indicating that the mask mandates had a meaningful effect in slowing the virus down early in the pandemic.

Some commentators have questioned why dire warnings about what would happen when Texas lifted its mask mandate for good in March 2021 never materialized. But the mandate’s rollback took place in a very different context from the spring of 2020.

For one, many more people now have protection from the virus, between vaccinations and prior infections. More widespread immunity was already an obstacle for the virus.

But on top of that, because the pandemic has become so politicized, people have already sorted themselves into their different camps, experts indicated — and so a state mandate might not have changed behavior. By now, you are already either a mask-wearer or you’re not. A government mandate probably isn’t going to affect someone’s behavior in June 2021 as much as it would have a year ago, especially after enforcement has been nonexistent.”

Solar and Wind Power Struggle as California Faces Blackouts

“Rolling electric power blackouts afflicted roughly 2 million California residents in August as a heat wave gripped the Golden State. At the center of the problem is a state policy requiring that 33 percent of California’s electricity come from renewable sources such as solar and wind power, rising to a goal of 60 percent by 2030. Yet data showed that power demand peaks just before the sun begins to go down, when overheated people turn up their air conditioning in the late afternoon. Meanwhile, the power output from California’s wind farms in August was erratic.

Until this summer, California utilities and grid operators were able to purchase extra electricity from other states. But the August heat wave stretched from Texas to Oregon, so there was little to no surplus energy available.”

“California has been bringing the hammer down on a huge source of safe, reliable, always-on, non-carbon-dioxide-emitting electricity: nuclear power. In 2013, state regulators forced the closing of the San Onofre nuclear power plant, which supplied electricity to 1.4 million households. By 2025, California regulators plan to close the Diablo Canyon nuclear power plant, which can supply electricity to 3 million households.
The problem of climate change, along with the blackouts resulting from the vagaries of wind and solar power, suggests that California should not only keep its nuclear power plants running but also build more innovative reactors designed to flexibly back up variable renewable electricity generation.”