I find an intriguing dichotomy in California’s Control, Regulate, and Tax Marijuana Act proposed Friday October 2 for review. On the one hand, the draft is positively socialistic. It permits Californians aged over 21 to possess an ounce of marijuana (eight decent-sized joints) and have six pot plants in the garden of which their mother may or may not approve. The rest of the 51-page draft focusses on squeezing tax money out of a to-be-regulated industry. Regardless, it would be a huge step forward for the industry to make marijuana legal in California.
The sponsors make for interesting reading. Sean Parker, Napster co-founder and ex Facebook president kicked the ball onto the pitch although his sidekick denies he supports the latest version. The leading sponsors are now Progressive Insurance, the founder of Weedmaps Media (an app guiding consumers to marijuana dispensaries) and a bunch of heirs to the Hyatt Hotel chain. This could make an interesting story line someday but you connect the dots. The Hyatt money might just be enough to inspire consensus on the bill this year.
Key Components of California’s Control, Regulate, and Tax Marijuana Act
I touched on the 21-year-old with the garden already. The following is a summary of the rest of the bill with emphasis on the business side:
– A Board of Marijuana Control (Dept. of Consumer Affairs) replaces the Bureau of Medical Regulation, shifting the emphasis from palliative to pleasure.
– A 15% surcharge tax applies to retail sales of recreational marijuana. This is in addition to regular local and state sales tax.
– California commercial marijuana growers bear a cultivation tax. This amounts to $9.35 per ounce of bud or flower, and $2.75 on leaves.
– There is provision for 21 marijuana business licenses: 10 for cultivation, 2 for processing, one for testing, 2 for retail, and the balance for ‘microbusinesses’ permitted to cultivate, transport and sell.
– Persons aged over 21 found with more than an ounce commit an infraction (legal violation) and pay up to $100. Minors do a drug education program instead.
– Selling marijuana without a licence in California incurs a $500 fine or 6 months in county jail. First-offender minors get drug education. Repeaters pay the $500 or spend 5 days in juvenile detention.
– Driving under the influence of marijuana invokes regular DUI penalties.
– Folk with previous marijuana convictions may petition for relief without committing an offense.
THIS BILL IS NOT LAW YET. It may make California’s November 2016 ballot because of the financial clout of its backers. Until then, the smoke will continue to rise and frustrate law enforcement.