CA marijuana industry facing challenges as 420 comes and goes

Updated 3 hours ago
SAN FRANCISCO (KGO) -- As 420 comes and goes, the Trump administration is renewing a push for a massive overhaul in cannabis policy.

Some dispensaries say it's not happening quickly enough.

Monday, two people could be seen sitting under umbrellas at San Francisco's Hippie Hill in celebration of the unofficial cannabis holiday 420. It was a much different look than sanctioned events from years ago.

MORE: How San Franciscans are enjoying 4/20, the unofficial holiday celebrating cannabis culture

But those who did show up in the rain came to smoke weed.



"Honestly, I just like being high, you know? It just, it calms me down," said Grace Banks of Merced.

"Marijuana did help me with my PTSD, especially when I got out of the army," said Junior Torres of San Francisco.

But here we are years after the legalization of cannabis in California and those in the industry say there are still challenges front and center.

"They gotta cut us some slack because, honestly, the cannabis industry is really struggling right now," said cannabis industry expert Eric Farb.

Not only because of heavy state regulation and taxes, but also because of competition from illegal growers in the state.



Just last week more than 20,000 plants were confiscated at suspected illegal cannabis grows in Hayward.

"The legal market in California, despite being 10 years legal, is still less than 40% of the cannabis consumed in this state so we are still fighting every day against folks that are unregulated, they're untaxed, and we don't know the safety of their products," said Jim Scott, who is CEO at Harborside Dispensary in San Francisco.

At the federal level, four months ago, President Trump announced that marijuana would be reclassified as a less concerning Schedule III drug instead of a Schedule I drug, but that has yet to happen.

In fact, Trump appeared to address the hold-up just days ago during a press conference, requesting that the reclassification gets done.

"There are a lot of folks who I think are working on it and we just want to make sure that hopefully they will get it right and hopefully it will be very very soon," said Trulieve CEO Kim Rivers.



"That has not happened yet, which means every one of our customers that comes in has to use cash still instead of credit cards, which in a digital economy is pretty difficult," said Scott.

While difficult, it seems those who really want to get cannabis are making it happen, especially on a 420 in the rain.

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