California Assemblymember introduces AB390 to tax and regulate sales and legalize adult use of cannabis
TomAmmiano’s AB 390 would raise over $1 billion for State
By Dale Gieringer, California NORML director
Article courtesy of West Coast Leaf, a quarterly newspaper for the cannabis community
California Assemblyman Tom Ammiano (D-SF) Feb. 23 announced the introduction of AB 390, a landmark bill to tax and regulate cannabis like alcohol and tobacco. The bill will be heard in December or January for action by the legislature.
“With the state in the midst of an historic economic crisis, the move towards regulating and taxing marijuana is simply common sense,” said Ammiano at a San Francisco press conference. “This legislation would generate much-needed revenue for the state, restrict access to only those over 21, end environmental damage to our public lands from illicit crops, and improve public safety by redirecting law enforcement efforts to more serious crimes.”
Winds of Change — (Left to right) Aaron Smith of Marijuana Policy Project, Dale Gieringer of California NORML, and Steve Gutwillig of Drug Policy Alliance stand by as Assemblyman Tom Ammiano announces his bill to regulate cannabis sales.
West Coast Leaf photo by Mikki Norris.
Ammiano’s bill would provide for licensed producers and distributors, who could sell to adults over 21. Producers would pay an excise tax of $50 per ounce, just under $1 per half-gram cigarette. Sales taxes would generate additional revenues, bringing total tax revenues to $1 billion. Additional economic benefits would be generated in the form of employment, business and payroll taxes and spin-off industries, like the wine industry, amounting to some $12 - $18 billion.
Last but not least, the bill would save hundreds of millions of dollars in costs for arrest, prosecution and imprisonment of cannabis offenders.
State Board of Equalization member Betty Yee spoke in support of AB 390, saying that it would save the state’s taxpayers some $1.3 billion. California NORML supplied economic analysis for the bill, provided the bill’s text from a draft donated by former State Senator John Vasconcellos, and also provides information about the bill at canorml.org.
Also endorsing the Ammiano bill are Oakland City Council member Rebecca Kaplan, Judge James Gray, San Francisco Sheriff Mike Hennessey, the Drug Policy Alliance and Marijuana Policy Project.
Assembly Bill 390 would not alter state medical marijuana laws. Patients and collectives could grow for their own supply without paying any excise tax. Non-medical growers would be allowed to grow up to ten plants for personal use.
Despite the increased taxes, the bill’s sponsors expect the price of cannabis would decline sharply due to decreased pressure from law enforcement.
This is the first legalization bill to be introduced since state outlawed cannabis or “Indian hemp” in 1913. Since then, millions of Californians have come to enjoy cannabis, despite some 2.4 million arrests.
Although support for legalization is growing, there is little expectation that Ammiano’s bill will be signed this year. Gov. Schwarzenegger has blindly vetoed bills opposed by law enforcement, which strongly supports the status quo. “The last thing our society needs is yet more legal intoxicants,” whined John Lovell, chief lobbyist for the Narcotics Officers’ Assn.
A major political obstacle to the bill is that it flies in the face of current federal law. Supporters hope this can be overcome. “The final architecture of the bill has yet to be defined,” said Ammiano in a Feb. 25 interview on CBC’s As It Happens. “Accommodation is possible. It’s possible that laws may not be the same in a year or two.”
Californians should contact their legislators to support AB 390; for info, see canorml.org.