LEGALIZE MARIJUANA AND REAP THE REVENUES FOR CALIFORNIA

With the state out of money, the economy in a tailspin and our
prisons overflowing, California's laws against marijuana make no
economic sense. Every year, the state shells out millions in
taxpayers' dollars to arrest, prosecute and imprison marijuana
offenders in a vain attempt to stamp out its use. Meanwhile, legal
and more dangerous drugs such as tobacco and alcohol are generating
billions in revenue for the state.

California taxpayers would benefit from a bill by Assemblyman Tom
Ammiano, D-San Francisco, that would legalize, tax and regulate
marijuana for adult use. The bill would establish a state licensing
system for producers and distributors, who could sell to adults over
21. Producers would pay an excise tax of $50 per ounce, or about $1
per joint. Additional revenue would be generated from sales taxes.
Altogether, tax revenue would be on the order of $1 billion,
comparable to the cigarette tax. This is a common sense, fiscally
conservative policy that would regulate cannabis in a manner similar
to other legal intoxicants and raise much-needed revenue.

At the same time, this policy would eliminate marijuana-related crime
and law enforcement expenses, which include an estimated $170 million
annually for the arrest, prosecution and imprisonment of marijuana
offenders. It would likewise put an end to such prohibition-related
problems as the proliferation of black market dealers, grow houses,
smugglers and pirate gardeners on public

Finally, a legal marijuana industry could generate substantial
additional economic benefits in legal employment, business and
payroll taxes, and spinoff industries -- like the wine industry,
which currently contributes $50 billion to California's economy.

History shows that California's laws against marijuana have failed.
Only after being outlawed did marijuana become widely popular,
eventually spreading to millions of Californians. By 1975,
enforcement costs had become so high that the Legislature
decriminalized possession of small quantities under the Moscone Act,
saving the state $100 million each year.

Despite dire predictions by opponents, decriminalization had no
perceptible effect on marijuana use by either adults or young people.
Nonetheless, production and distribution remained illegal, causing
continued prohibition-related problems. In 1990, the California
Research Advisory Panel urged further decriminalization, noting that
"an objective consideration of marijuana shows that it is responsible
for less damage to society and the individual than are alcohol and cigarettes."

In 1996, California voters legalized the medical use of marijuana in
Proposition 215 (though neglecting to establish a legally regulated
supply system). Contrary to the predictions of opponents, marijuana
use by youths actually declined after Proposition 215's passage, but
arrests continued unabated.

In 2007, marijuana-related arrests jumped to 74,119 -- their highest
level since the Moscone Act. California now has more than 1,500
marijuana prisoners, more than 10 times as many as in 1980. Marijuana
accounts for 61 percent of the illicit drug traffic from Mexico,
where prohibition-fueled gang wars have killed over 6,800. In
California, agents eradicated a record 5 million illegal plants last
year, up more than tenfold since 2003. The value of the illegal crop
has been estimated as high as $14 billion, enough to qualify as the
state's leading crop.

Ammiano deserves credit for recognizing that the only way to solve
the marijuana problem is to legalize, tax and regulate it. As usual,
California is ahead of the rest of the nation. Ammiano's bill
provides a pathbreaking blueprint for change that would benefit our
economy, safety and freedom by making marijuana a winning proposition
for California.