California looks to build $7 billion legal pot economy

SACRAMENTO, Calif. – The future of California’s legal marijuana industry is being shaped in a warren of cubicles tucked inside a retired basketball arena, where a garden of paper cannabis leaves sprouts on file cabinets and a burlap sack advertising “USA Home Grown” dangles from a wall.

Here, in the outskirts of Sacramento, a handful of government workers face a daunting task: By Jan. 1, craft regulations and rules that will govern the state’s emerging legal pot market, from where...

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