The business of Medicinal Cannabis

The following info was gleaned from an article by an Associated Press writer named Lisa Leff.

Oakland (Calif.) is looking at licensing four cannabis production plants. These outfits would grow the cannabis and produce food items and oils as well as whole flowers. The licensing would cost $211,000 along with the requirement of a two mil insurance (liability) policy. Oh, and there’s the possibility of an, up to, 8% sales tax on gross sales.

As with all things, some folks think it’s a great idea and some think it sucks.

One of the smaller growers called it the “McDonalds-ization” of cannabis. The complaint being that many of the current strains wouldn’t still be available. Obviously, any of the current suppliers to the dispensaries wouldn’t be in favor of the proposal; for legitimate reasons and maybe some not.

Supporters claim the current growers are tax dodgers. Also, there’s a question about where the current supplies are coming from and the methods used in growing it.

Last year Oakland’s four retail cannabis stores grossed 28 million. Yes, boys and girls, 28 large. Oakland figures they’ll receive 1.5 mil from a business tax the voters passed last year; providing the cannabis business is as brisk as it was previously. Having the ability to tax the products at the source would double that dollar amount.

I haven’t an opinion on the subject. I just thought I’d toss the info out here for your purview.

I do have a few question and\or reservations though. As I’ve mentioned previously, all of the dollar figures presented are based upon the current pricing. From what I understand cannabis from a dispensary (collective, whatever) is priced at or above the current black-market. If (when) the voters in California legalize cannabis in November, will pricing plummet? I dunno, it just seems like there’s a lot of eggs being counted and called chickens.

One thing is for certain; these types of proposals and business engagements by city and state governments is encouraging. This activity is a far cry from Reefer Madness.

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4 Comments

  1. writerpro25 said,

    August 1, 2010 at 7:35 am

    I think almost any substance can be abused and that it’s ridiculous that marijuana is illegal when it is much less dangerous when it is abused than when alcohol is. http://stonerdiary.wordpress.com

  2. capndrift said,

    August 1, 2010 at 11:01 am

    I’m sure you’ve seen those commercials for FDA approved pharmaceuticals? You know, where some of the more serious side effects include stroke, heart attack and\or death?

    In recorded history not one single death from a cannabis overdose has been documented.

    Cannabis doesn’t destroy the liver or kidneys. Though one would assume inhaling any particulates from a burning material isn’t healthy, there isn’t a single case of lung cancer that can be attributed to smoking cannabis, alone. (i hope i punctuated that correctly, heh)

    I’d guess cannabis to be the safest drug on the market. It’s safer than aspirin (shrug).

  3. writerpro25 said,

    August 2, 2010 at 5:00 am

    Hey, would you be interested in doing a link exchange at all?

  4. capndrift said,

    August 2, 2010 at 9:01 am

    No thanks, I’m good.
    Thanks for asking though.


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