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California Moves to Legalize Marijuana. Aired 12:30-1p ET

Aired December 30, 2017 - 12:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BORIS SANCHEZ, CNN CORRESPONDENT: The New Year will usher in a new era for California and the stakes are high. We're talking billions of dollars in tax revenue every single year and tons of new jobs because of legal marijuana. CNN's Miguel Marquez has more.

MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT: Boris, yes, legal pot is coming to California, but this is a state that has existed in a legal gray area with medical marijuana for more than two decades. Unlike other places we've seen legalizing medical and recreational pot, the task here, enormous. But if successful, the republic of California will have a new industry that is massive.

The cannabis gold rush is on. Legal medical and recreational marijuana comes to the Golden State Monday.

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UNIDENTIFIED MALE: We're looking to expand into a 6,000 square foot dispensary because we think that we'll be able to serve close to 1,000 to 1,500 patients a day.

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MARQUEZ: Today, Jerred Kiloh's medical dispensary, The Higher Path, in suburban Los Angeles, serves about 200 people a day. He employs 25 full-time workers, making at least $18 an hour. With legalization, he expects to employ 70.

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UNIDENTIFIED MALE: Just this year alone or at least the 2017 harvest season, I tripled the size of my cultivation in an effort to be able to supply my increase as a dispensary.

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MARQUEZ: The market in Los Angeles alone projected to be ginormous.

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MARQUEZ: When it happens in Los Angeles, how big will it be?

UNIDENTIFIED MALE: Well, I mean, right now, Los Angeles's market is bigger than Colorado and Washington combined. So you're looking at one market that's the largest in the world.

UNIDENTIFIED FEMALE: I'm a drug dealer.

(END VIDEO CLIP) MARQUEZ: California and pop culture long portrayed as a pot smoker's paradise. Sales of medical marijuana legal or at least is allowed in many towns and cities across the state for more than 20 years. What's different now, the entire state will be regulated, licensed and taxed like any other business, except more.

So come the first of the year, the regulatory regime for marijuana businesses across California will change dramatically, everything from childproof caps to security systems for every single business.

For places like The Higher Path that are already playing by the rules, the cost of legalization, enormous. Taxes on retail marijuana up to 45 percent and license fees to cultivate, distribute and sell medical and recreational pot for just this one business, in just this first year, $280,000.

(BEGIN VIDEO CLIP)

MARQUEZ: As California moves into legal marijuana, finally, what is your feeling?

UNIDENTIFIED MALE: I'm still excited for the state. I mean, on an individual level, I can be a little bit disappointed that I won't be a part of the party on January 1st. But it's not going to be long before I am up and running and legal.

(END VIDEO CLIP)

MARQUEZ: On day one, while pot will be legal, it won't be available everywhere. Only a few smaller localities have approved licenses to start recreational sales on January 1st. Cities like San Francisco and Los Angeles won't be ready for legal sales under the new regulations for days or weeks.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We're talking about an unregulated industry that's been thriving for at least 22 years. But now you have this set of rules, and track and trace system, and taxation, and all these local agencies, and bureaucrats, and state regulators and licenses. It's a totally different beast.

(END VIDEO CLIP)

MARQUEZ: Bumps in the road ahead for California, but legal pot here is expected to spur massive growth for the legal cannabis industry in the U.S. and around the world. So there's a real contradiction here, and that some shops that want to play by the rules will have to shut down while they wait for their licenses to operate legally. The state's Bureau of Cannabis Control says it is prepared for an

onslaught of applications after the 1st, and towns, and cities and counties have busily been laying down their own rules for how, when and where pot can be sold legally, if at all. And none of this takes into account the marijuana black market here that's estimated to be bigger than the legal market.

It is a lot to be tackled in California before the pot market here is functional and bringing in an estimated $1 billion in tax revenue alone -- Boris.

SANCHEZ: Miguel Marquez, thanks for that. Ahead on the CNN NEWSROOM, a teen badly beaten and his family says the police are to blame. This is a look at a protest happening right now in Alabama where people are demanding answers. We have a live report ahead.

(COMMERCIAL BREAK)

SANCHEZ: A family in Troy, Alabama, is demanding answers after their son was allegedly beaten up by a police officer. I want to warn you these pictures we are about to show you are disturbing.

Police said they used reasonable and necessary force after 17-year-old Ulysses Wilkerson resisted arrest and reached for his waistband. Wilkerson's parents say he was so badly disfigured that they could barely recognize him. Now they want to see police body cam and dash cam footage of his arrest.

CNN National Correspondent Dianne Gallagher is in Troy with more -- Dianne.

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: Yes, Boris, I'm actually here at a peaceful protest of people from all over Alabama, but the majority that I've spoken to are from right here in Troy.

The police department is behind me. You can probably see the people gather around here. They have speakers who were talking about not only what happened to Ulysses Wilkerson, but also what they see as a systemic problem here in Troy, something that they feel like there's not a good relationship.

There's a very tense relationship between the police department and the community, and specifically the black community here in Troy. So they're discussing this. They're talking about it.

And in regards to what happened to Ulysses, they're calling for transparency really. There are still a lot of questions about this whole scenario, specifically, why police were stopping him in the first place. This is a 17-year-old kid who was walking a little before midnight, the day before Christmas Eve.

He didn't run according to police, but his family says they don't even know why they were trying to stop him in the first place. In fact, they claimed that they haven't heard anything from the police since the phone call, letting them know that Ulysses was in the

hospital.

Now, Boris, he is out of the hospital now. He is recovering. His family says that he's likely going to have surgery next week. His eye socket was fractured several times during this incident.

According to the mayor, an officer has been placed on leave during this investigation. And the police chief asked the State Bureau of Investigation to look into the use of force. So now it is a state investigation, which means we're not really sure when or if we will see that body cam video until that investigation is complete.

The district attorney confirms that the incident -- there is some body camera video and there's audio. But for the people here, Boris, they would like to see that now and hoping that can clear up exactly what happened during that arrest.

SANCHEZ: Yes, those pictures certainly raise questions. Dianne Gallagher, thanks so much for joining us.

Apple says it's sorry about a misunderstanding about older iPhones being slowed down, but not everyone is accepting their apology. More on this story next on the CNN NEWSROOM.

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SANCHEZ: Apple is issuing an apology to customers for how it rolled out an update that slows down older phones allegedly. The company now faces class action lawsuits over those slowed down phones. CNN Samuel Burke has more.

SAMUEL BURKE, CNN TECH CORRESPONDENT: Apple is calling all this a misunderstanding, that's the word they're using. And even though they're not admitting any wrongdoing, they are issuing a rare apology for how they communicated about this whole debacle.

Now they're trying to correct the real issue at the heart of all this, the battery. They're slashing the price of a replacement battery from $79 to $29. So if you have an iPhone 6, 6S, SE or the iPhone 7, even if it's out of warranty, you have the cheaper option to avoid a slowed down phone.

Plus, Apple says that an upcoming iOS update will come with a new tool so you can see how your battery is performing. Think of it like a heart monitor but for the battery. Many people are still upset though, even Florida Senator Rubio tweeting, "The problem isn't just the phone, it's the arrogance of Apple, remotely controlling how phones work and admitting it only after getting caught."

So having a U.S. Senator tweeting about this shows just how much it got under people's skin and why Apple realized they had to correct their misjudgment.

SANCHEZ: All right, Samuel Burke, thank you. Over 70 million Americans are getting hit with an arctic blast. We're certainly feeling it here.

The National Weather Service issuing wind chill advisories in parts of the country, warning people to keep as much skin covered as possible to protect from frostbite. CNN meteorologist Allison Chinchar joins us now. Allison, please don't tell me it's going to get colder. I know you are, but please don't.

ALLISON CHINCHAR, CNN METEOROLOGIST: I really wish, Boris, I could bear you some better news, but that's just not simply the case.

Now the worst of the cold weather is currently positioned over the Midwest. But that air is going to push into areas of the northeast and even the southeast in the coming days. So we take a look at what we're dealing with.

These are some of the record lows we had from yesterday, minus 19 in Glens Falls, New York. The old record was minus 9, so they blew that away. Watertown, New York, minus 17. Augusta, Maine was minus 15. This is what these folks in these communities woke up to for their temperatures. In the afternoon, high temperatures really aren't going to be much better.

Now take a look at where we normally would be. Minneapolis, for example, their high today is minus 5, but their average is 24. Chicago is going to have a high of 6 degrees today. They'd normally be much closer to that freezing mark. And even New York and Boston, you're looking at those temperatures at least 10, if not 15 degrees below where they normally would be.

We've already had that first wave of cold air come through. Now we get another one Sunday into Monday. And then as you take a look at the long term, Wednesday

into Thursday, we get yet another wave that moves back through. And this is pushing pretty far south.

Take a look, Dallas, Texas, may not make it to freezing on Monday, same thing with Atlanta. Here's the other thing, everybody keeps talking about what are we going to do in New York City for New Year's Eve, because there's so many people out there

and not just for an hour. They stand out there for hours on end.

Here's the problem. The coldest section of the week is that transition from Sunday into Monday. In fact, Boris, it looks like as the ball drops, that temperature will likely be about 10 degrees with a feel-like temperature of minus 5. So my recommendation is grab

your whole wardrobe from your closet and just put everything on, top to bottom.

SANCHEZ: That's definitely an interesting look for New Year's Eve. Allison Chinchar, thanks so much. And whatever you're doing tomorrow night, make sure you ring in 2018 with CNN's special New Year's Eve coverage hosted by Anderson Cooper and Andy Cohen. That starts tomorrow night at 8 pm right here on CNN.

Next, there's only one news story that's kept the world's attention all year long.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I, Donald John Trump, do solemnly swear that I will faithfully --

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SANCHEZ: Of course, the Trump presidency, we're going to examine his impact throughout 2017 when we return.

(COMMERCIAL BREAK)

SANCHEZ: 2017 is almost in the books and what a year it has been. There have been a slew of major stories to cover, and probably the biggest one played out at the White House with a new president and no shortage of drama.

CNN's Dana Bash looks back at the highs and lows of the Trump White House.

DANA BASH, CNN CORRESPONDENT: Let's be honest, the first year of the Trump presidency feels more like a decade because of the relentless stream of news. Here's a look at some of the key moments of President Trump's first year in office.

(BEGIN VIDEOTAPE)

BASH (voice-over): For candidate Trump, large campaign crowds were the norm. But at his inauguration, this was a sore subject. The new president grew angry watching reports his inaugural crowd size was smaller than President Obama's. One of his first presidential acts was to order his press secretary to do this.

SEAN SPICER, FORMER PRESS SECRETARY: This was the largest audience to ever witness an inauguration, period.

BASH: That's something the President himself amplified while standing in front of a CIA memorial to fallen heroes.

TRUMP: We had a massive field of people. You saw the pack. I looked out, the field was -- it looked like a million, million and a half people.

BASH: But the numbers didn't lie and the episode set an early Trump administration tone. Government regulation, it sure doesn't sound exciting so it's no surprise that Trump administration effort on this was not splashy 2017 news.

TRUMP: One, two, three.

BASH: But the President withdrew hundreds of regulations, a term with a real-world impact, from safety of the products you use to the air you breathe.

TRUMP: We have reduced unnecessary regulations to a point that this country hasn't seen in years.

BASH: It was a promise kept to Republicans who argued excess regulation hurts business and economic growth.

UNIDENTIFIED MALE: Raise your right hand.

BASH: The most lasting Trump 2017 accomplishment is arguably the nomination and confirmation of Neil Gorsuch to the Supreme Court.

NEIL GORSUCH, ASSOCIATE JUSRICE OF THE SUPREME COURT: I will do all my powers permit to be a faithful servant of the Constitution and laws of this great nation.

BASH: The seat was open for a year since the death of Justice Antonin Scalia and Senate Republicans' refusal to consider President Obama's pick, Judge Merrick Garland.

TRUMP: You will go down as one of the truly great justices in the history of the United States Supreme Court.

GORSUCH: Judges can disagree without being disagreeable.

BASH: Getting Gorsuch was noteworthy not just for the Trump legacy but the process.

TRUMP: It is an extraordinary resume.

BASH: From announcement to confirmation, this success was the most conventional Trump undertaking of the year.

After months of back and forth between Donald Trump and North Korea's dictator, words like "Rocket Man" and "fire and fury," the President took his insults to

the world stage. His first speech at the United Nations --

TRUMP: If it is forced to defend itself or its allies, we will have no choice but to totally destroy North Korea.

BASH: The rhetorical crossfire continued on Twitter and through regime statements.

TRUMP: Rocket man is on a suicide mission for himself.

BASH: By year's end, the escalation reached new heights. North Korea tested its most powerful missile yet, with the capacity to reach the U.S. mainland.

No discussion about Donald Trump's first year in the White House would be complete without talking about his favorite little birdie. He sent more than 2,000

tweets in 2017 alone, from the mystery of covfefe to a series of really consequential posts, like unprecedented attacks on his own party's leadership and some head-scratching retweets.

This anti-Muslim video sent by a Brit convicted of hate crimes caused a diplomatic rift with the British prime minister. Plus, his claim that President Obama wire-tapped Trump Tower, yet the one that may come back to haunt him the most, taunting fired FBI Director James Comey, "better hope there are no tapes of our conversations."

The hands down biggest 2017 Trump defeat, failure to repeal and replace Obamacare. John McCain's dramatic "no" vote sealed its fate, but Republicans was split of how to fulfill their Obamacare repeal promise, one that helped them win control of government. That loss made President Trump and Hill Republicans quest for tax reform a political life or death mission must-pass legislation

MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: The Tax Cuts and Jobs Act as amended is passed.

BASH: And it worked.

TRUMP: The people are going to be very, very happy. They are going to get tremendous, tremendous tax cuts.

BASH: Whether most Americans, especially working class Trump voters, will see that as a win, to be determined.

And finally, the most important Trump moment of 2017, firing FBI Director James Comey. Sacking Comey while he was investigating potential 2016 Trump Russia collusion caused a political earthquake with aftershocks, still rattling the President.

TRUMP: We'll see what happens.

BASH: Not the least of which, Comey's revelation that he kept detailed memos documenting meetings with the President, which Comey asked a friend to leak to the press.

JAMES COMEY, FORMER FBI DIRECTOR: I asked a friend of mine to share the content of the memo with a reporter. I asked him to because I thought that might prompt the appointment of a special counsel.

BASH: That's exactly what happened and Special Prosecutor Robert Mueller's Russia investigation was a cloud over the Trump's first year of presidency, which so far produced indictments of two former Trump campaign officials and the guilty plea of former national security adviser Michael Flynn for lying to the FBI.

What a year. What will 2018 bring? Buckle up.

(END VIDEOTAPE) SANCHEZ: We have much more just ahead in the CNN NEWSROOM. It all

starts right now.

UNIDENTIFIED MALE: This is CNN breaking news.

SANCHEZ: Russian President Vladimir Putin sharing a New Year's resolution with President Trump. This morning Putin is calling for "pragmatic cooperation."