Monday, March 29, 2010

The California Regulate, Control and Tax Cannabis Act: Part 1

Yesterday evening, the California Secretary of State affirmed that the voter initiative to legalize marijuana received an estimated 523,531 valid signatures – well more than the 433,971 signatures needed to get on the November ballot. The California legalization initiative has supporters that argue pot legalization will not only save the cash-strapped California economy cash, but will bring in the instant cash of tax revenue. Some detractors of the bill argue that legalizing the drug will lead to a rise in crime and health impacts. Other detractors worry that legalizing gray-market marijuana will reduce the quality of marijuana and significantly harm the budding marijuana industry. Part 1 of this article covers the Regulate, Control, and Tax Cannabis Act in California and the arguments for its passage. Part 2: Arguments against Marijuana Legalization in California covers the arguments against marijuana legalization in California.

History of marijuana legalization in California.

In 1913, the first state law criminalizing marijuana in the United States was passed in California. Other states quickly followed suit. By 1937 the federal law has made the transfer and possession of "Marihuana" illegal for everything except industrial and medical uses.

In 1969 this act was declared unconstitutional; however, the US Federal government kept marijuana in the controlled substance act of 1970. The national controversy was reignited when California legalize medical marijuana with proposition 215 in 1996. The federal government nevertheless considers marijuana an illegal Schedule I narcotic and considers it to have "no valid medical use."

California measures to legalize marijuana.

The voter initiative to legalize marijuana, known as the Regulate, Control, and Tax Cannabis Act, has many limitations on the use to legally use marijuana. Anyone 21 or older would be permitted to "possess, cultivate, or transport marijuana for personal use." Governments though all of California would be able to tax and manage commercial sale or production of marijuana. It would be illegal still to drive when under the influence of marijuana, have the drug on school grounds, to smoke in public, to give it to any underage persons, or to smoke while any minors are present.

Marijuana legalization cost-savings argument

Supporters of the Regulate, Control and Tax Cannabis Act argue the legalization of marijuana would conserve the State of California a significant amount of money. California has been using payday cash advances on the state budget to cover all their costs because they’re in a huge budget deficit.

The savings estimates are anywhere from $ 156 million to $ 1 billion. Supporters claim that once the currently-stretched-thin law-enforcement system ceases prosecuting individuals for growing, possessing or selling marijuana, they can focus on crimes and criminals that are more violent or dangerous. A lot of of the proponents point out that few deaths in California are due to marijuana while alcohol is the contributor of hundreds of deaths every year.

The discussion on taxation for cannabis legalization.

In addition to saving the state of California millions of dollars in law enforcement, the Regulate, Control and Tax Cannabis Act also gives local governments the ability to tax marijuana. Proponents of the act estimate that $ 15 billion worth of gray-market and black market marijuana is sold each year in California.

$ 1.3 billion a year or more in income would be brought in with an excise tax on the retail sales. Some counties and cities within California currently tax medical marijuana dispensaries. $350,000 per dispensary is what is brought in by these city and county taxes.

The jobs argument for legalizing pot

Humboldt county also as other areas in California have already a large marijuana tourism industry. With services from medical marijuana dispensaries to schools focused on how to grow marijuana, the area brings in several million dollars a year in tourism revenue. Supporters of legalizing cannabis point out that if the marijuana tourism industry in California grows to just one-third the size of the wine industry, it would produce more than 50,000 jobs. If marijuana were legalized, it would also become legal to produce hemp in the state, which could add to the agricultural base of California.

The Californian's Regulate, Control and Tax Cannabis Act can be on the November ballot. To see the arguments in opposition to the legalization of marijuana in California, see Part 2: Arguments against Marijuana Legalization in California.



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