If At First You Succeed, Just Wait Until the Government Finds Out

Peter Suderman | June 23, 2009

Yesterday's episode of Marketplace featured a story on the boom — sorry, explosion — in pot-clinic entrepreneurship in Los Angeles. From the transcript:

JEFF TYLER: In some Los Angeles neighborhoods, there are more medical marijuana dispensaries than there are Starbucks or McDonald's. Most sell more varieties of weed than Baskin-Robbins has ice cream flavors. City councilman Dennis Zine says calling it a boom is an understatement.

DENNIS ZINE: It's bigger than a boom. It's a major explosion with these facilities opening up, and they're opening up every single day in the city of Los Angeles.

At last count, there were 600 medical pot clinics in Los Angeles. That's right — 600.

Given the flailing economy, one might think this would be hailed as a small-business success story. At least someone is making money in this economy, right? Instead, it's seen as a regulatory failure: L.A.'s marijuanaclinics have simply been too successful. The story continues:

Zine says the city council is working on new regulations to crack down on these free-wheeling pot pharmacies. Many will be closed.

Zine: Oakland, for example, has four medicinal marijuana facilities. That's easy to regulate and control. When you have 600, you can't regulate and control. We will bring this down to a reasonable number.

While the city tries to curb the growth of pot clinics, the marijuana economy in California seemingly can't be stopped.

Can't be stopped? One hopes. But the city council isn't going to give up without trying.

Reason's Brian Doherty previously blogged about L.A.'s fight against marijuana dispensaries here. Greg Beato covered San Francisco's pot clubs here. Senior editor Jacob Sullum wrote about marijuana legalization here, here, and here.

Comments

Peter|6.23.09 @ 4:57PM|#

I'm not one to say that it should be stopped, but I can't see the need for 600 stores if they are all only doing currently-legal business. They should price eachother out eventually and draw the number down, unless they are making under the table deals and just using the store instead of the street corner.

Xeones|6.23.09 @ 4:58PM|#

I take back what i said about Ezra Klein being the dumbest person in the world. With Dennis Zine in the running, the title is still pretty hotly contested.

phalkor|6.23.09 @ 5:00PM|#

If you grew up and live on the east coast it is very hard to imagine pot culture in LA. On my visit I found that marijuana was de facto legal. Where I grew up, my buddy was busted for less than 0.1g of leftover shake on the dash.

If there's anyplace in the world where stopping pot is impossible, it's LA.

Invisible Finger|6.23.09 @ 5:02PM|#

What the hell is Dennis Zine smoking that makes him so fucking stupid?

|6.23.09 @ 5:05PM|#

You don't suppose he'll invite the feds to sort this out do you?

dfd|6.23.09 @ 5:10PM|#

but I can't see the need for 600 stores

Why should anyone care whether you or anyone else can see the "need" for 600 stores?

They should price eachother out eventually and draw the number down, unless they are making under the table deals and just using the store instead of the street corner.

Yes, competition probably will drive the number down if LA doesn't do it first. But why would doing deals under the table insulate them from price competition? That's nonsense. Under or over the table, customers are price sensitive and with that many stores it's not hard to go down the block to the next one for a better deal.

|6.23.09 @ 5:11PM|#

We will bring this down to a reasonable number.

So the city council "knows" how many outlets there should be.

Elsewhere in the spot Zine (I assume) referred to "shady" (not his word, but his sentiment) who is scripts for complaints like insomnia and anxiety. Yep, just what we need, busybodies deciding what ailments are "legitimate".

That's the fight right there, isn't it? Who is the rightful owner of one's person?

But, I'm starting to preach to the choir so I'll stop there.

|6.23.09 @ 5:14PM|#

I would argue that he's correct in the sense that they're too successful to keep up the facade of being "medicinal." If, legally, they're only supposed to be selling pot for medical purposes and regulations are in place to ensure that's what's going on, then yes, having 600 dispensaries in LA might suggest that tighter regulation needs to be in place. Of course, that's not what Zine actually argued. If there's really a need for 600 dispensaries, and they can't regulate it, well that's there problem, not the problem of somebody at home with MS or cancer who needs marijuana to function.

|6.23.09 @ 5:16PM|#

...well that's theretheir problem...

Me flunk English? That's unpossible.

Tricky Prickears|6.23.09 @ 5:28PM|#

It sounds to me like doctors are writing these "prescriptions" like Viagra or something, like marijuana has jumped from a Schedule I down to a Schedule III, skipping over any Schedule II restrictions. However, Schedule II restrictions are imposed by the federal government and the DEA. Perhaps they need to impose regulations similar to the federal Schedule II. If they are serious about "medicinal" use.

|6.23.09 @ 5:42PM|#

Certainly people are abusing the medical system. I live in CA, so I know that pot smokers, at least the older ones, have found medical dispensaries to be a reliable dealer. Backache, headaches, depression, anxiety... whatever ails you. Only downside really is what this article is talking about... all this fraud might cause a backlash against medical pot. Of course, the fraudsters will still find ample supplies; but your sick grandma will die slowly and painfully.

The potential upside is that after marijuana has been legal in the 2nd most populace US city for a while, and after society hasn't crumbled, it'll become even more difficult to defend marijuana prohibition. Onward to heroin!

|6.23.09 @ 5:43PM|#

As a patron of these (currently) flourishing businesses, I think a lot of the blowback comes from the aesthetics; if these places were tastefully decorated and well maintained, I suspect the neighbors wouldnt whine so much to the City Council to "do something".

Basically, some guy takes over a long-abandoned dry cleaner, adding nothing in the way of paint or plaster. He hauls in a beat-up glass case, hangs a picture of Bob Marley on the wall and slaps a marijuana leaf and a home-made "herbal healing" sign on the door. Voila! Open for Business.

Now all this looks great to ME, but I can see why the neighbors view it as yet another nail in the coffin of their property values. So I'm guessing the shops that look the nicest will be the ones that survive the purge.

|6.23.09 @ 5:53PM|#

It sounds like you guys are under the mistaken impression that California only allows MMJ for serious illnesses like MS, cancer and AIDS. Here in California it's up to your doctor to decide. I'd bet most of the scripts written here are for mild conditions like chronic back pain and anxiety. Because of that, you've got a lot of CA stoners(and there are many of those) signing up and getting a prescription(probably the majority of the people I know).

I even know one guy who's not dealing anymore thanks to the competition from the dispensaries. Rumor has it that prices have fallen in Nor-Cal and are already dropping here. Last I checked, prices are around $55 per 1/8oz for some damn fine product.

I can't speak for all dispensaries, but the one's I've seen definitely don't just accept anyone off the street. You've got to have a valid prescription and ID, and even then they're pretty paranoid about who gets in. Things may have changed in the last 2 months though.

Tricky Prickears|6.23.09 @ 5:59PM|#

Mari Dupont,

It's been my experience, at least on the right coast, that any business is better than an empty storefront. Except maybe a methadone clinic. I can't see why these businesses would be any less desirable than say a dollar store, Chinese takeout, or check cashing.

|6.23.09 @ 6:07PM|#

It sounds like you guys are under the mistaken impression that California only allows MMJ for serious illnesses like MS, cancer and AIDS.

I am aware of that, and therein lies the rub. As somebody who thinks that pot should be legal for everybody, I don't care what they write scrips for so long as the truly sick have access to it. My one concern, though, is that other states will be hesitant to legalize medicinal marijuana precisely because they don't want a situation like that in California. I'd hate for somebody in chronic pain in Illinois to be denied medicinal marijuana because potheads in California are abusing the system.

I hope what I'm saying makes sense; it's not that I care if grown adults want to get high. I just care more about people in chronic pain getting the relief they need, and I worry that abusing the legal medicinal marijuana system in CA will have a long-term negative impact on both the medical marijuana movement and the legalization movement overall.

|6.23.09 @ 6:22PM|#

Don't worry, the government will find a way to ruin, er, regulate the marijuana industry as well. Then all we need to do is bailout the pot industry, appoint a half dozen czars and it will be leaner, meaner and more successful.

Russ 2000|6.23.09 @ 6:23PM|#

but I can see why the neighbors view it as yet another nail in the coffin of their property values.

Would they prefer dealing on the street corners? Cuz the dealing's going to happen, regardless of the neighbors' view.

Russ 2000|6.23.09 @ 6:24PM|#

and even then they're pretty paranoid about who gets in.

Paranoid? They must not be using the good stuff.

Paul|6.23.09 @ 6:45PM|#

I tooooooooooooooooooold you! Legalize us! Regulate us! Tax us! We want to be legitimate!

Whoa whoa whoa! What's with all the regulation, Moriarty?

aCalifornian|6.23.09 @ 6:45PM|#

Would they prefer dealing on the street corners?

You must be from the east coast. Californians don't buy pot on street corners - we buy it from our relatives, friends, neighbors, gardeners, surfers, dentists... sorry if I left anyone off this list.

Californian's created the current legal climate, not the other way around.

|6.23.09 @ 6:49PM|#

Who wants to make a wild guess as to the political affiliations of the LA City Council? Are they overwhelmingly Democrat or Republican? Remember, this is Obama's New America full of Hope and Change. So think well before you guess. Democrat or Republican? Concerned well meaning Democrats or cold hearted Republicans?

aCalifornian|6.23.09 @ 6:58PM|#

Are they overwhelmingly Democrat or Republican?

Yeah, will they shut them down for the children, or will they shut them down for the lord?

db|6.23.09 @ 7:32PM|#

I am very much in favor of legalization and the ending of the drug war. However, I have talked with people who live in LA and attend the "pot clinics" (I do not partake, myself). What I have heard described to me is basically that a doctor sits near the entrance to the club, interviews you briefly, and writes a prescription that one can then get filled "at the bar." I find it very unlikely that most "patients" are legitimately in need of the medical benefits of marijuana.

I find it curious that there are physicians who are willing to risk their licenses facilitating this kind of behavior.

This whole medical marijuana thing is just a pretty obvious end run--one that's working well apparently--around the drug laws.

Again, I'm fully in support of ending the drug war, and putting whatever you want into your body, but the way to win the hearts and minds and get the laws changed is not to pretend that everyone else is too stupid to figure this dodge out. I think this has the potential to end badly for the movement, especially if it starts happening in states that are somewhat less freewheeling than California.

Paul|6.23.09 @ 7:51PM|#

a doctor sits near the entrance to the club, interviews you briefly, and writes a prescription that one can then get filled "at the bar." I find it very unlikely that most "patients" are legitimately in need of the medical benefits of marijuana.

Of course they're not. That was never the point with "medical marijuana" legalization. It was supposed to be a 'shoe in' to legalize marijuana for eeeeveryone! Peace! Love! Dope! Relief from our medical problems!

I have repeatedly warned (and yes, I'm not a popular kid on this subject with my libertarian bretheren) that if we keep pushing this "medical marijuana" angle, instead of a blanket legalization, no strings attached, it's going to backfire in our faces. As a result, what we're going to get instead is a new layer of bureaucracy, reduced privacy and new pressures of "oversight" and regulation. The government will use medical marijuana against us and create a new class of criminal.

This whole medical marijuana thing is just a pretty obvious end run--one that's working well apparently--around the drug laws.

It's not, and whatever "success" you're seeing now is doomed to fail, with the zillion pound hammer of government coming down harder than before. And this will be the 'proof' that they needed that this whole medical marijuana thing was a sham. As I've said before: grind it up, put it in a pill, demand a prescription for it.

And like the cough medicine, keep it behind the counter, demand a fingerprint, blood sample and drivers license before letting anyone receive it.

beth|6.23.09 @ 8:14PM|#

"I find it very unlikely that most "patients" are legitimately in need of the medical benefits of marijuana."

We all are.

db|6.23.09 @ 8:34PM|#

We all are.

But do you see my point: that when the state thinks of the word "medical," that it thinks in the same thought "clinical." That the state imagines no room for self medication, only that prescribed by a state licensee, preferably in a state licensed facility, under close supervision.

I can't imagine a concept more anathema to the free spirited culture of marijuana users than that. Leave aside what you think of as a "legitimate medical need" and consider what the state intend by those words. Then ask yourself if the consequences of that paradigm are acceptable.

|6.23.09 @ 9:20PM|#

If you think its legitimate to prescribe sleeping pills, then I can't see how you'd have a problem with prescribing weed.

For fun, I actually prefer cocktails to pot, but its the "sleep aid" of choice when I work crazy hours (i.e. working till midnight and having to be in the office at 8am) There's no way I can get any sleep without "help".

How is this not a legitimate use? Because its also pleasurable?

Compared to creepy sleeping pills like Halcyon, weed is mother's milk. Remember, you can't OD on weed!

db|6.23.09 @ 10:12PM|#

How is this not a legitimate use? Because its also pleasurable?

Do you lack basic reading comprehension skills? I clearly stated that in considering the efficacy of the "medical marijuana" approach, one needs to focus on the STATE's interpretation of "medically legitimate use."

I don't think I can make myself more clear. Please re-read my posts and think, real hard, "where did he indicate he had a problem with prescribing weed?"

db|6.23.09 @ 10:19PM|#

hen I work crazy hours (i.e. working till midnight and having to be in the office at 8am)

Also, sincerely no offense noted, but I would love to get to sleep for about 7 hours a night. I can't fall asleep before 11:30 or so most nights, and I have to be at the office by 6:30 every morning. Your concept of "crazy hours" sounds like bliss to me :)

hmm|6.23.09 @ 11:13PM|#

I plan on opening a 7-11 within one block of every pot clinic. Munchies & paraphernalia.

It's the Burger King and Wendy's business model of open near a McDs and let them draw the foot traffic.