Marijuana 'Silicon Valley' gets go-ahead

[Oz]

THE city council of Oakland, California, has voted to allow industrial scale production of medical marijuana in a landmark decision which some hope will turn the city into "the Silicon Valley of pot".

 

The controversial plan allows four large growers to set up shop in the city that sits just across the bay from San Francisco - but makes no provision for the hundreds of growers who currently supply Oakland medical dispensaries, The Los Angeles Times reported.

 

The council promised it would set up plans for those growers before permits were issued next year for the four big producers.

 

The 5-2 vote in favor of the proposal followed a heated debate between small-scale pot growers - who argued that it threatened their means of income - and local businessmen who claimed it would flood the city with new jobs and tax revenues.

 

A tax on wholesale pot sales would bring in more than $US3 million ($3.4 million) to the city, which faces a $35 million deficit.

 

The audience booed and hissed during discussions, prompting the city council president to call for order several times, according to the LA Times.

 

Under the plan, each cannabis grower will pay fees and permits of around $311,000 to the city in addition to an 8 per cent tax rate on gross sales. The growers will be expected to cultivate at least the 2727kg of marijuana that is sold annually through the city's dispensaries.

 

According to City Council members Larry Reid and Rebecca Kaplan, who proposed the measure, expanding Oakland’s pot business will allow the city to cover its bottom line amid budget shortfalls.

 

It will also improve safety, they said, claiming shoddy electric systems at poorly-regulated indoor growing operations led to an increase in electrical fires in recent years.

Author: NewsCore

Date: 21/07/10

Source: Herald Sun

Copyright: © Herald and Weekly Times.

[MongyMan]

THE city council of Oakland, California, has voted to allow industrial scale production of medical marijuana in a landmark decision which some hope will turn the city into "the Silicon Valley of pot".

 

The controversial plan allows four large growers to set up shop in the city that sits just across the bay from San Francisco - but makes no provision for the hundreds of growers who currently supply Oakland medical dispensaries, The Los Angeles Times reported.

 

The council promised it would set up plans for those growers before permits were issued next year for the four big producers.

 

The 5-2 vote in favor of the proposal followed a heated debate between small-scale pot growers - who argued that it threatened their means of income - and local businessmen who claimed it would flood the city with new jobs and tax revenues.

 

A tax on wholesale pot sales would bring in more than $US3 million ($3.4 million) to the city, which faces a $35 million deficit.

 

The audience booed and hissed during discussions, prompting the city council president to call for order several times, according to the LA Times.

 

Under the plan, each cannabis grower will pay fees and permits of around $311,000 to the city in addition to an 8 per cent tax rate on gross sales. The growers will be expected to cultivate at least the 2727kg of marijuana that is sold annually through the city's dispensaries.

 

According to City Council members Larry Reid and Rebecca Kaplan, who proposed the measure, expanding Oakland’s pot business will allow the city to cover its bottom line amid budget shortfalls.

 

It will also improve safety, they said, claiming shoddy electric systems at poorly-regulated indoor growing operations led to an increase in electrical fires in recent years.

 

 

Author: NewsCore

Date: 21/07/10

Copyright: © Herald and Weekly Times.

 

So in a nut shell....

 

THE city council of Oakland, California is replacing the hundreds of growers who currently supply Oakland medical dispensaries with four large growers who will pay them around $311,000 each, in addition to an 8 per cent tax rate on gross sales.

 

Their reason for doing this.....

A tax on wholesale pot sales would bring in more than $US3 million ($3.4 million) to the city, which faces a $35 million deficit.

Shoddy electric systems at poorly-regulated indoor growing operations led to an increase in electrical fires in recent years.

 

What I think that means........

Big business or possibly something more sinister is monopolizing the market and and are paying the council a kickback for handing it to them in the form of tax. This is replacing the hundreds of small legal businesses who currently supply Oakland medical dispensaries and putting them out of business.

 

What I think about councils reasons given to justify this.....

What a load of crap. The same tax could be raised from the current growers and any "poorly-regulated indoor growing operations" can only be blamed on a council slack on regulating them.

Something stinks here to me, and it's not the skunk.

 

Peace MM

[brick]

Agree mm. Sorta smells like mafia connections to me. Or Mexican drug lords.

[The Hash Nibbler]

I agree fellas, looks like the Big Boys are coming in to play with their Mates in Power because it's big money now, it is going to make it hard for the lil guy to survive.

It's going to end in a price war, which as we have seen in supermarket chains leaving a few big players and squeezing out the smaller Players. Thought the price had dropped out of the market in Cali anyway, what will this do to it?

Hope they give discounted rates of Tax to the smaller growers who have been supporting the system from the beginning and give them permits to continue their good work.

Where ever there is a dollar to be made Corruption and Organized Crime won't be far behind. Sad.

[Indycar]

To be honest. how else did the average stoner think this was going to pan out? History of how the corperate world and monopolies have acted over the years in every industry is evidence enough. Why would the Canna industry (medicinal or other) be any different?

 

In a few ways, i'm quite content on how the legislation is in my country. Admittedly, I don't like the restrictions imposed on sales of certain items though. Like SA's hydro supply laws 'n Bong sales in various States. But in general, for the perso grower. Sometimes it's better the devil you know.

 

EDIT: I'm not sure where this sinister ploy came from that corrupt/drug lords/organised criminals are tied into it. It's quite possible that it's just well financed backers are prepared to get into this newish industry. Hopefully more about this topic will be revealed in time.

 

[MongyMan]

To be honest. how else did the average stoner think this was going to pan out? History of how the corperate world and monopolies have acted over the years in every industry is evidence enough. Why would the Canna industry (medicinal or other) be any different?

 

Sadly true Indy in many ways. Lets hope we can do it differently when we have Australian medical cannabis.

 

EDIT: I'm not sure where this sinister ploy came from that corrupt/drug lords/organised criminals are tied into it. It's quite possible that it's just well financed backers are prepared to get into this newish industry. Hopefully more about this topic will be revealed in time.

 

It could just be legitimate big business I agree, but it could just as easily be organised crime groups too imo. Organised crime moves into legal markets too when they can if the money is there. It makes more money if they can sell cannabis legally for them in the long run and they don't have to legalize 'dirty' money. This plan sounds suspicious to me because it is designed to hand as good as a monopoly to 4 growers, when there is already a legally regulated system in place of growers who supply the dispensaries and could be taxed just as easily to raise the money. time will tell.

 

Peace MM

[pisspotgrower]

Quick question Mongy, since its now fully reckonised as a medicine and large scale grows are gona occur. Will the average joe growing for him self still get jail time in cali if he aint got a permit.

 

To me i would think that it if is a legal substance in some way than the criminal of 0ffence for ILLIGAL cultivation should drop to a fine now.

[Reverend]

Good question PPG, I am still sure that the federal laws over there still apply.

[sativaindicaruderalis]

Quick question Mongy, since its now fully reckonised as a medicine and large scale grows are gona occur. Will the average joe growing for him self still get jail time in cali if he aint got a permit.

 

To me i would think that it if is a legal substance in some way than the criminal of 0ffence for ILLIGAL cultivation should drop to a fine now.

 

nah people should just be able to grow it themselves. Also having dispensaries is handy if ur grow screws up so u got a supply if u need it.

[Chato]

I'd think you;d be screwed harder ppg, in the states specifically in oakland that is, cuz now your a tax evader

 

peace

c