Pubdate: Fri, 05 Nov 2010
Source: Columbia Valley Pioneer, The (CN BC)
Copyright: 2010 The Columbia Valley Pioneer
Contact: http://www.columbiavalleypioneer.com/contact.html#letter
Website: http://www.columbiavalleypioneer.com/
Details: http://www.mapinc.org/media/4207
Author: Kelsey Verboom, Pioneer Staff

CALIFORNIA CANNABIS LAW GOES UP IN SMOKE

Earlier this week, voters in California cast their ballots for or against 
Proposition 19 -- a controversial initiative that would have legalized 
marijuana in the sunshine state. They ultimately voted against 
legalization, preventing a loss for British Columbia of about $2-billion 
annual revenue, made through illegal exports of marijuana to the United States.

Although the monies generated from the growth and export of marijuana are 
illegal and difficult to estimate, the B.C. bud industry produces an 
underground economy of around $7-billion annually according to a 2004 study 
by the Fraser Institute, making it one of the largest industries in the 
province.

A large portion of marijuana produced in B.C. is exported across the border 
and is sold for up to $300 or $400 per ounce in California.

If the drug were to be legalized in the state, prices would likely plummet 
as the risk factor would disappear, leaving an increase in supply and 
demand, lowered production costs, the ability to grow larger yields, and 
decreased retail price.

A drastically overturned market could potentially mean the end for some of 
the estimated 17,500 grow operations in B.C., many of which are located in 
and around the Kootenay region. These would be faced with the high-risk 
production of a relatively unprofitable product, compared with today's prices.

Although Proposition 19 was voted down on Novemeber 2nd, with 56.5 percent 
opposed and 43.5 percent in favour, supporters will push for the 
proposition to reappear on the 2012 ballots, where voters will once again 
decide the fate of a portion of the profitable pot industry in Canada.

Staff Sergeant Marko Shehovac of the Columbia Valley RCMP, who has been 
noted for his vocal opposition to the drug, said voters made the right 
decision when they marked their ballots.

"I'm glad that the voters voted down this issue ... it appears that 
although supporters are very vocal at every opportunity, the silent 
majority spoke up."

With regards to organized grow operations in the Kootenays, things will 
continue on as usual, Staff Sergenant Shehovac said.

"Organized crime is going to be with us regardless of the vote. There is a 
strong debate about this issue. I just deal with the law that's on the 
table at the time." 
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MAP posted-by: Jo-D