Oakland Pot Growers Fear “Wal-Marting” of Weed

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CBS After weathering the fear of federal prosecution and competition from drug cartels, California’s medical marijuana growers see a new threat to their tenuous existence: the “Wal-Marting” of weed.

The Oakland City Council on Tuesday will look at licensing four production plants where pot would be grown, packaged and processed into items ranging from baked goods to body oil. Winning applicants would have to pay $211,000 in annual permit fees, carry $2 million worth of liability insurance and be prepared to devote up to 8 percent of gross sales to taxes.

The move, and fledgling efforts in other California cities to sanction cannabis cultivation for the first time, has some marijuana advocates worried that regulations intended to bring order to the outlaw industry and new revenues to cash-strapped local governments could drive small “mom and pop” growers out of business. They complain that industrial-scale gardens would harm the environment, reduce quality and leave consumers with fewer strains from which to choose.

“Nobody wants to see the McDonald’s-ization of cannabis,” Dan Scully, one of the 400 “patient-growers” who supply Oakland’s largest retail medical marijuana dispensary, Harborside Health Center, grumbled after a City Council committee gave the blueprint preliminary approval last week. “I would compare it to how a small business feels about shutting down its business and going to work at Wal-Mart. Who would be attracted to that?”

The proposal’s supporters, including entrepreneurs more disposed to neckties than tie-dye, counter that unregulated growers working in covert warehouses or houses are tax scofflaws more likely to wreak environmental havoc, be motivated purely by profit and produce inferior products.

“The large-scale grow facilities that are being proposed with this ordinance will create hundreds of jobs for the city,” said Ryan Indigo Warman, who teaches pot-growing techniques at iGrow, a hydroponics store whose owners plan to apply for one of the four permits. “The ordinance is good for Oakland, and anyone who says otherwise is only protecting their own interests.”

Study: Marijuana Prices to Crater If Legalized.

Read full article about the Wal-Martization of Marijuana.

© COPYRIGHT CBS NEWS, 2010

Photo by KayVee.INC

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