California Assemblyman Announces Bill to Tax Marijuana

Assemblyman Tom Ammiano Introduces Bill that Would Decriminalize and Tax Marijuana for Adults
By Mechanic

California Assemblyman introduces bill to decriminalize and tax marijuana.
Assemblyman Ammiano says AB 390 will help state's economic downturn.
California State Assemblyman Tom Ammiano (D-San Francisco) has recently introduced Assembly Bill 390: The Marijuana Control, Regulation and Education Act, the first bill of its kind in the state of California that would decriminalize recreational marijuana use and set up the framework to regulate the sale and taxation of marijuana.
Under the bill, wholesalers of marijuana would pay an initial $5,000 licensing fee with a $2,500 annual renewal fee. Wholesalers are then able to sell marijuana to licensed retailers who would pay a "Marijuana Supplemental Fee" of $50 per ounce of marijuana sold to the public. This fee, officially the Marijuana Supplemental Fee Law, would be used to fund drug education and awareness programs but would not be applied to medical marijuana patients. The proposed bill would also restrict persons under 21 years of age from having "access to marijuana during receiving, processing, packing, storage, and delivery or at any other time," and restricts the consumption of marijuana on the property of wholesalers.
Financial Benefit
The announcement of the bill comes in the midst of tough economic times, both at the state and national level. Assemblyman Ammiano argues, "With the state in the midst of an historic economic crisis, the move toward regulating and taxing marijuana is simply common sense," he added, "This legislation would generate much needed revenue for the state, restrict access to only those over 21, end the environmental damage to our public lands from illicit crops, and improve public safety by redirecting law enforcement efforts to more serious crimes. California has the opportunity to be the first state in the nation to enact a smart, responsible public policy for the control and regulation of marijuana."
A study by the California State Board of Equalization estimated that taxing marijuana could generate 1.3 billion annually and a separate study conducted by California NORML estimated that the California cannabis industry to be worth between 12-18 billion dollars. A 2006 study conducted by Jon Gettman found that between 2003 and 2006, marijuana was America's #1 cash crop, marijuana production is California outpaced both vegetables and grapes, and estimated it's worth in the billions of dollars. Ammiano said, "I think the outcome would be very healthy for California and California's economy." A study by Harvard in 2005 estimated that by legalizing marijuana the federal government would save 7.7 billion dollars in prohibition enforcement and could generate taxes in between 2.4 and 6.2 billion dollars annually.
Medical Marijuana Vs. The Federal Government
In 1996, California voters approved Proposition 215, making California the first state in the United States to allow marijuana use for medical purposes. This put the state of California at odds with the Federal government's stance that marijuana is illegal to use, even for medical use, and would often make California's medical marijuana providers the subject of DEA raids. Under the 1970 Controlled Substance Act, marijuana is classified as a Schedule 1 narcotic (no medical benefit) despite numerous medical studies outlining marijuana's medical potential. Since the 1996 passing of Prop. 215, fifteen additional states have approved state medical marijuana legislation.
Proponents of the bill, including Assemblyman Ammiano, admit that one obstacle for the success of the bill is the federal ban on marijuana. However, recent polls suggest that Americans are growing more in favor of decriminalizing marijuana and even the federal government hinted that it may stop DEA raids on medical marijuana providers. Ammiano is hopeful, "We could in fact have the political will to do something, and certainly in the meantime this is a public policy call and I think it's worth the discussion."
Mixed Reactions
Marijuana activist groups like the National Organization for the Reform of Marijuana Laws (NORML), and The Marijuana Policy Project (MPP), have received the announcement of the bill with open arms, but opponents are not receiving the bill so well. In the few days since the announcement of the bill, a fierce debate has already developed. In what be a surprise to some, Gavin Newsom, the mayor of San Francisco, has spoken out against the measure. The LA Times published an editorial calling the bill an "ill advised tax scheme," on one hand but urges the government to review it's policies on marijuana because "it's the right thing to do". With advocates citing financial and practical benefits and opponents citing health concerns, only time will determine the outcome.

Sources:Assemblyman Ammiano's WebsiteAB 390 Text; Feb. 2009NORML; Feb. 2009CA NORML; Feb. 2009Marijuana Production in US, Jon Gettman, Drug Science, 2006About Jon Gettman, Drug Science, 200640% Say Marijuana Should Be Legalized, Rasmussen Reports, Feb. 2009State by State Laws(CA), NORML, 2008WAMM.org, 2002Therapeutic Effects, Medboardwatch.com, 2002US to yield marijuana jurisdiction to states, SF Chrnoicle, Feb. 2009Legal pot is not mayor's cup of tea, SF Chronicle, Feb. 2009Reefer Tax Madness, LA TImes, Feb. 2009
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