Politics

DEA: Marijuana grow operations may be 'the new meth houses'

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breaking bad meth
Not this kind of meth house.  AMC

The Drug Enforcement Agency (DEA) is taking aim at Colorado's marijuana industry.

In a June report — titled "Residential Marijuana Grows in Colorado: The New Meth Houses?" the DEA criticized the proliferation of large-scale marijuana grow operations in residential neighborhoods.

These growers are taking advantage of a loophole in Colorado state law, according to the report.

Colorado state law limits adult home-growers over the age of 21 to six plants per house. But a specific loophole in the law allows prospective growers to circumvent this rule.

Amendment 64, the law allowing people to grow and consume marijuana in their homes, also allows any adult in Colorado to "assist" any other adult in "possessing, growing, processing, or transporting" marijuana. Another provision, Amendment 20, allows caregivers — who grow marijuana for medical purposes — the ability to grow up to 99 plants for their patients. 

These loopholes have given growers the ability to turn residential homes into massive grow operations, according to the DEA. Because Colorado's Marijuana Enforcement Division — the body created to regulate marijuana growers — can only regulate licensed grow operations and the unlicensed grow houses fall under the aforementioned amendments, the residential grow operations are in a legal gray area.

"Much like the 'meth houses' of the 1990s," reads the report. "Many of these homes may ultimately be rendered uninhabitable." 

marijuana farm
Master Grower Ryan Douglas waters marijuana plant clones at Tweed Marijuana Inc. in Smith's Falls, Ontario, February 20, 2014.  Reuters/Blair Gable

Residential grow operations can render houses uninhabitable as growers often modify the electrical systems to install high-powered grow lights and air-conditioning units. Further, the modifications some growers make to the houses — including cutting holes in the floor and exterior walls to for ventilation tubes — can leave the houses structurally unstable, according to the report. 

As well, local police departments have fielded numerous calls about these residential grow operations, including complaints about, "strong odors, excessive noise from industrial air-conditioning units, blown electrical transformers, and heavy vehicle traffic," according to the report.

The DEA also contends that this unlicensed marijuana is frequently shipped over state borders, and that the system is "extensively exploited by traffickers who operate large grows to supply out-of-state markets," where the marijuana may fetch higher prices.

But the DEA report doesn't quantify how much marijuana is actually shipped across state borders, notes The Washington Post's Christopher Ingraham. 

People involved in Colorado's marijuana industry, however, reject the DEA's claims.

"The fear behind indoor grow houses strictly comes from an irrational fear of cannabis," Kyle Sherman, the CEO of Flowhub, a Colorado-based cannabis-software company, told Business Insider in an email. "While extracting cannabis oils inside a home can be dangerous, the typical small home grow is nothing like a 'meth house.'"

"This prohibition-era language is being used to misguide people on a topic they simply haven’t been educated on," Sherman continued.

Colorado's example, warts and all, will be pointed to as a model when legal- and medical-marijuana initiatives hit the ballot in California, Maine, Nevada, Arizona, Massachusetts, Florida, Missouri, and Michigan on November 8. 

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Jeremy is the founder and editor-in-chief of Cultivated Media, a newsletter bringing readers inside the emerging cannabis industry. Beyond his reporting, Jeremy is studying for his MBA at Columbia Business School and holds a certificate in cannabis pharmacology from the University of Vermont where he studied as a cannabis media fellow. Jeremy was formerly a senior reporter at Insider where he focused on the cannabis industry. Jeremy has covered the bumpy rollout of Canada's cannabis legalization, the boom in cannabis companies going public (and the resulting fallout), multibillion-dollar mergers between cannabis companies and corporations from other industries, the ongoing health effects from vaporizers, the mislabeling of CBD products, and how the world's largest financial, legal, and political institutions are reacting to and planning for legalization. He has also gotten scoops and broken news on layoffs affecting cannabis companies, startups raising money, banks and law firms building specialized cannabis practices, tracked which companies and individuals are profiting from cannabis, and profiled some of the top executives, investors, and leaders in the industry.He is a sought-after expert on cannabis business and policy, frequently speaking to the media and at industry conferences.