COUNTY REPS OPPOSE PROP 19

HUMBOLDT - The November ballot measure that will allow counties to
regulate marijuana and gain tax revenue from its sale is opposed by
the state association that represents counties.

At the Sept. 14 Board of Supervisors meeting, Supervisor Mark
Lovelace reported that the board of the California State Association
of Counties (CSAC) voted to oppose Proposition 19, the Regulate,
Control and Tax Cannabis Act, the previous week.

Lovelace explained that a majority of CSAC board members believe
Prop. 19 falls short on defining regulation. "The board took a
position to oppose mostly due to the uncertainty as to what it will
really mean," he said.

That action follows a similar one by the board of the California
League of Cities last July.

Although in the minority of county representatives that voted to
support Prop. 19, Lovelace said he also sees problems with it. "I can
certainly understand why a lot of the supervisors would have taken
that position because effectively, what this does is, it says let's
legalize it first and we'll figure out how to regulate it later."

Proposition 19 allows anyone 21 years old or older to possess up to
an ounce of cannabis and cultivate it for personal use in a
25-square-foot area. It also conditionally allows its commercial sale.

The measure does not describe a specific regulatory process for
commercial activity. Instead, it allows cities and counties to adopt
ordinances that would set forth the rules for cultivation,
distribution and taxable retail sales. It would remain illegal to buy
it and sell it in cities and counties that choose not to regulate it.

Leaving the rule-making up to local governments has been a target of
Prop 19 criticism. "There is no regulatory framework - that provides
a tremendous amount of uncertainty and discomfort for a lot of
folks," said Lovelace.

He added that "it's just impossible to know, it's entirely conjecture
as to how it will be implemented.

But Lovelace said he nonetheless supports Prop 19 because "it creates
the opportunity to get at those issues."

He also said the CSAC board agrees that "the current situation isn't
working, prohibition didn't work, things have to change and what
needs to happen is that it needs to be legalized concurrently with a
full regulatory framework."

That can only happen "if the legislature takes this up themselves,"
Lovelace continued.

Prop 19 would allow the state legislature to define regulations for
commercial production of marijuana whether cities and counties do it
or not. Lovelace said the CSAC board voted to recommend that the
legislature deal with regulation.

Though not mentioned by Lovelace in his report, another aspect of
uncertainty is the effect of federal law. Proposition 19's taxation
provision requires licensed marijuana distributors to pay all taxes,
including federal taxes, but it's unclear how that can be done for
sales of a substance that the feds say is in the same category as
cocaine and heroin.

A state Legislative Analyst Office summary of Prop 19 states that
federal prosecution would interfere with the measure's goals. "Thus,
the revenue and expenditure impacts of this measure are subject to
significant uncertainty," according to the LAO summary.

But it also states that if a commercial marijuana industry is
successfully established, state and local governments could
"eventually collect hundreds of millions of dollars annually" in
additional revenues.

Also of note, the measure does not change the penalties for providing
marijuana to minors. But it sets forth an amendment to current law,
stating that anyone 21 years old or older who furnishes marijuana to
18- to 20-year-olds could be jailed for up to six months or fined up to $1,000.