Can Marijuana Help Rescue California's Economy?

[Neil]

Why don't you just see how the Dutchies have done it before?

Because Europe generally fails at pretty much everything it tries.

[garbon]

But the original post suggests that legalization is a solution now.  When it clearly isn't.

It doesn't actually say when they expect those profits to come in.

[Admiral Yi]

Sure, less charges for cultivation, but will it lead to more charges of driving while stoned?

Driving while impaired doesn't generate prison terms.  Night in the tank, fine, suspended sentance.

[The Brain]

Sure, less charges for cultivation, but will it lead to more charges of driving while stoned?

Driving while impaired doesn't generate prison terms.  Night in the tank, fine, suspended sentance.

They put drunk/stoned drivers in tanks? Genuis!

[grumbler]

They put drunk/stoned drivers in tanks? Genuis!

The drunk tank lacks treads and weapons, so it isn't as dangerous as you might think from the name.

[garbon]

Update to this topic. Interesting part in bold.

http://news.yahoo.com/s/ap/20090716/ap_on_re_us/us_marijuana_taxes

SAN FRANCISCO – A bill to tax and regulate marijuana in California like alcohol would generate nearly $1.4 billion in revenue for the cash-strapped state, according to an official analysis released Wednesday by tax officials.

The State Board of Equalization report estimates marijuana retail sales would bring $990 million from a $50-per-ounce fee and $392 million in sales taxes.

The bill introduced by San Francisco Democratic Assemblyman Tom Ammiano in February would allow adults 21 and older to legally possess, grow and sell marijuana.

Ammiano has promoted the bill as a way to help bridge the state's $26.3 billion budget shortfall.

"It defies reason to propose closing parks and eliminating vital services for the poor while this potential revenue is available," Ammiano said in a statement.

The way the bill is written, the state could not begin collecting taxes until the federal government legalizes marijuana. A spokesman says Ammiano plans to amend the bill to remove that provision.

The legislation requires all revenue generated by the $50-per-ounce fee to be used for drug education and rehabilitation programs. The state's 9 percent sales tax would be applied to retail sales, while the fee would likely be charged at the wholesale level and built into the retail price.

The Equalization Board used law enforcement and academic studies to calculate that about 16 million ounces — or 500 tons — of marijuana are consumed in California each year.

Marijuana use would likely increase by about 30 percent once the law took effect because legalization would lead to falling prices, the board said.

Estimates of marijuana use, cultivation and sales are notoriously difficult to come by because of the drug's status as a black-market substance. Calculations by marijuana advocates and law enforcement officials often differ widely.

"That's one reason why we look at multiple reports from multiple sources — so that no one agenda is considered to be the deciding or determining data," said board spokeswoman Anita Gore.

Advocates and opponents do agree that California is by far the country's top pot-producing state. Last year law enforcement agencies in California seized nearly 5.3 million plants.

If passed, Ammiano's bill could increase the tension between the state and the U.S. government over marijuana, which is banned outright under federal law. The two sides have clashed often since state voters passed a ballot measure in 1996 legalizing marijuana for medical use.

At the same time, some medical marijuana dispensary operators in the state have said they are less fearful of federal raids since U.S. Attorney General Eric Holder said the Justice Department would defer to state marijuana regulations.

Advocates pounced on the analysis as ammunition for their claim that the ban on marijuana is obsolete.

"We can't borrow or slash our way out of this deficit," said Stephen Gutwillig, California state director of the Drug Policy Alliance. "The legislature must consider innovative sources of new revenue, and marijuana should be at the top of that list."

Ammiano's bill is still in committee. Hearings on the legislation are expected this fall.

Also Wednesday, three Los Angeles City Council members proposed taxing medical marijuana to help close the city's budget gap.

Council members Janice Hahn, Dennis Zine and Bill Rosendahl backed a motion asking city finance officials to explore taxing the drug.

Hahn said that with more than 400 dispensaries operating in the city, the tax could generate significant revenue. The motion pointed out that a proposed tax increase on medical marijuana in Oakland, which has only four dispensaries, was projected to bring in more than $300,000 in 2010.

Meanwhile, marijuana supporters have taken the first official step toward putting the legalization question directly to California voters.

A trio of Northern California criminal defense attorneys on Wednesday submitted a pot legalization measure to the state attorney general's office, which must provide an official summary before supporters can begin gathering signatures.

About 443,000 signatures are necessary to place The Tax, Regulate and Control Cannabis Act on the November 2010 ballot. The measure would repeal all state and local laws that criminalize marijuana.

Who knew that when I voted for Ammiano last fall, he'd waste his time on this?

[Neil]

Yet another reason why ballot initiatives are terrible.

Besides, I'm sure the feds could somehow steal jurisdiction and have all drug users executed.  At least I'd hope so.

[The Minsky Moment]

this is all rather silly.  All the AG has said is that the feds will not be in the business of raiding medical dispensaries that are acting consistently with state medical marijuana laws absent evidence that they are fronts for traffickers.  There is nothing to suggest that the Feds will stop enforcing federal drug laws outside of this limited concept.  Any attempt by California to legalize will not change the fact that the manufacture, distribution and sale of pot will remain illegal under federal law.

[saskganesh]

I was President of Kailifornia, I could adapt  existing cannabis legislation and regulations and have a functioning regulatory framework within six months, with significant revenue flowing in from annual licenses and user taxes almost immediately.

so if you want to give me this mandate, which comes with a host of unprecedented, unconstitutional powers, you know where to find me.

[Strix]

gambling is another one of those societal ills, but its legal in many places. some of the cash raised goes towards treatment, education, enforcement etc.

you also have large savings in law enforcement.

if its legalised, within a few years most people, even most nontokers,  will accept it as a normal state of being.

Yeah, we have such large savings in law enforcement from the legalization of alcohol.  And one cannot forget to argue how the legalization of tobacco and alcohol has little or no impact on the medical costs.

And, I agree, nontokers will soon accept it as a normal state of being. Just as much as they currently accept tobacco smokers, and how much they embrace homeless drunks.

[Josquius]

Awesome if so. If it did manage to pass others would likely soon follow suite and thus the world as a whole will steadily be improved just that little bit.

[Strix]

Driving while impaired doesn't generate prison terms.  Night in the tank, fine, suspended sentance.

It does in NY and NC for repeated offenders.  If you get a 2nd DWI within 10 years in NY it can be prosecuted as a Felony, and if you get a 4th DWI in 10 years in NC you can be charged with Habitual DWI and get a minimum of a year in prison (they are trying to change the law so if you get three DWI's lifetime they can charge you with Habitual).

[DGuller]

Driving while impaired doesn't generate prison terms.  Night in the tank, fine, suspended sentance.

It does in NY and NC for repeated offenders.  If you get a 2nd DWI within 10 years in NY it can be prosecuted as a Felony, and if you get a 4th DWI in 10 years in NC you can be charged with Habitual DWI and get a minimum of a year in prison (they are trying to change the law so if you get three DWI's lifetime they can charge you with Habitual).

My dad's friend, who lives in Wisconsin, spent some short time in jail for his second DUI.  He says he got the message after that.

[garbon]

And, I agree, nontokers will soon accept it as a normal state of being. Just as much as they currently accept tobacco smokers, and how much they embrace homeless drunks.

Homeless drunks are the only type of people who drink.

BTW, here in SF, pretty much everyone is friendly to those who smoke weed.

[Strix]

Homeless drunks are the only type of people who drink.

BTW, here in SF, pretty much everyone is friendly to those who smoke weed.

How much do they embrace tobacco smoke? At the very least, if it's legalized than perhaps they can make it smell better when it burns.