California Budget to be Rescued by Legalizing Marijuana
Faced with under-funded state services and a legislature seemingly unable to find the answer to the $20 billion deficit, voters in California voters will have the opportunity to consider one potential cash crop: taxes raised by the legalization of the sale of marijuana for adults at least 21 years old, and smoking marijuana in public or around minors would continue to be prohibited. Currently, many people in California find themselves needing a criminal defense attorney because of marijuana or other drug related charges.
In November, voters will consider the very issue on a ballot measure that would legalize the distribution, possession, and cultivation of marijuana, while regulating and taxing that industry. Advocates argue that taxing such businesses would raise $1.4 billion annually in tax dollars that could be used to bolster law enforcement and prison budgets that are already strained.
In 1972, a similar effort at legalizing marijuana failed to gain public support. However, that campaign tried to justify legalization by offering evidence that marijuana was harmless and did not require regulation.
Today, the campaign offers a different justification: money. California has been hit hard by the recession, and the state’s budget shortfall has led to cuts in every state agency across the board. By taxing the sales of marijuana that already take place illegally in an unregulated black market, the people of California as a whole stand to benefit. The law would permit licensed retail markets to sell up to one ounce to a customer. Those sales would be a new and welcome source of sales tax revenue for California.
And the measure enjoys a newfound high in support, with a 2009 Field Poll showing 53 percent of Californians support marijuana legalization. Dan Newman, a San Francisco-based strategist in support of the measure, said he expects support for the bill to be bipartisan and widespread because Californians are worried about the economy. “Voters’ No. 1 concern right now is the budget and the economy,” “makeing them look particularly favorably at something that will bring in more than $1 billion a year.”
The language in the law has an “opt out” clause that some cities and local governments might adopt. Even some advocates, such as the director of the Drug Policy Alliance, imagines a modest implementation of the measure, with most local jurisdictions choosing not to legalize sales. Yet, such opt-out provisions could reduce the fears that some may have about legalizing behavior they don’t personally condone. Supporters believe this provision might even result in greater support from non-pot smokers who are yet undecided. Opponents, such as Frank Schubert agree, stating that “There’s going to be a large sector of the electorate that would never do this themselves that’s going to sort out what the harm would be versus what the supposed good would be; that’s where the election is going to be won.”
In addition, between $10 and $20 million is expected to be raised in support of the proposition. The primarily source of fundraising is expected to be small donations through the internet. National groups are already planning to suggest that individuals donate $4.20 each, a nod to the slang name for the drug, “420.”
The state race for governor does not appear to ride on the debate, with all major candidates, including former eBay chief executive Meg Whitman, insurance commissioner Steve Poizner, and Jerry Brown all opposing the measure, although for different reasons.
On a national level, although the Obama administration has already indicated it will continue to honor laws in 14 states making the use of medical marijuana legal, it has not said the same about this proposition, which appears to conflict with federal law. In that case, even if the law passes through a popular vote in California, a user or retailer might find themselves charged with a violation of federal law. In that case, you would need a federal criminal defense attorney with experience fighting drug-related charges, like the attorneys at Elden Law Group.