PENNSYLVANIA PONDERS LEGALIZING MEDICAL MARIJUANA

State Rep. Mark Cohen of Philadelphia announced this week his desire
to introduce a bill next month that would legalize medical marijuana
in Pennsylvania.

The bill, as explained by Cohen, would be of the same nature as the
New Jersey legislation introduced earlier this year, which offers
prescriptions of the drug to patients suffering from cancer, multiple
sclerosis, and other diseases. New Jersey's governor has stated that
he would sign the bill proposed in his state.

Aside from the potential benefits the bill would bring in the medical
community, from an economic standpoint, Cohen also saw the bill as a
way to increase state revenue.

"I think it can easily raise $25 million a year in
taxes."

There are twelve states in the U.S. that have passed legislation
permitting the use of marijuana for medical purposes. Alaska,
California, Colorado, Hawaii, Maine, Montana, Nevada, New Mexico,
Oregon, Rhode Island, Vermont, and Washington have all passed medical
marijuana legislation.

Pennsylvania is one of three states, including Michigan and New
Jersey, that are currently considering legalizing the drug for medical
use.

In recent weeks, California legislators have begun discussing and
debating a new addition to their existing marijuana laws.

San Francisco Assemblyman Tom Ammiano proposed last month that
California legalize and tax marijuana, a major - and still technically
illegal - crop in the state, in an attempt to ease some of
California's economic strain.

"We're all jonesing now for money," Mr. Ammiano said. "And there's
this enormous industry out there."

Betty Yee, the state's tax collector and chairwoman of the California
Board of Equalization, said that legal marijuana could potentially
raise nearly $1 billion per year through a $50-per-ounce fee that
would be charged to retailers.

Upwards of $400 million could also be raised through sales tax on
marijuana sold to buyers. Currently, California's illegal marijuana
crop is estimated to yield $14 billion annually.

The proposed law, formally addressed as AB 390, mirrors some of the
key stipulations associated with alcohol related legislation in the
United States. The law limits the purchasing demographic to adults
over the age of 21 and also states that driving under the influence is
a punishable offense.

Yee explained that due to the increasingly bleak budget problems,
California has been dealing with recently, the proposal is worth
talking about especially since there is a law already on the books
regarding medical use of the drug.

"We know the product is out there, and we know marijuana is available
to young people as well, but there's no regulatory structure in
place," said Yee.

"I think it's an opportunity to begin the debate."

Several law enforcement groups have already objected to the idea of
legal marijuana in the state, which would conflict with federal law.

As it stands now, the plant is still very much illegal on a federal
level which means that although States themselves may have lenient
policies regarding penalties for possession and legislation, allowing
the drug to be used in specified medical instances, the U.S. Federal
government can still raid and shut down medical marijuana
distributors.

Lobbyists such as John Lovell, who works on behalf of several
California law enforcement officials, says the plan would open the
floodgates to a large, uncontrolled and therefore, un-taxed, black
market while also increasing substance abuse problems.

"The last thing we need is yet another legal substance that is
mind-altering," Lovell said.

Scott Pattison, executive director of the National Association of
State Budget Officers, said many lawmakers wanted to avoid tapping
more traditional tax sources during an economic downturn.

"What's pushing it is this incredible desire to raise revenue,"
Pattison said.

"But it's coupled with the desire not to raise the general and sales
and income taxes."