Oakland to license, tax indoor marijuana growers

OAKLAND, Calif. (AP) - Pot-friendly Oakland is taking a unique approach to medical marijuana growers. While other cities in California and the West are cracking down, Oakland is talking about licensing and taxing pot growers.

Two city council members are preparing legislation that would license a few big growers who would supply the city's four legal medical marijuana dispensaries.

A tax on the dispensaries is expected to bring in $1 million in its first year, and Councilman Larry Reid says a tax on growers could bring in even more money. That would be a big boon when the city is facing a $42 million budget shortfall.

Reid expects to introduce the bill next month.

Growing and selling marijuana remain illegal under federal law.