Californians to vote on legal weed

medical_marijuana_rally.gi.top.jpgOAKLAND, Calif.: A medical marijuana activist holds a sign during a rally on Jan. 4, 2010.By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- It's official: Californians will decide whether legal marijuana should be used to plug the state's $20 billion budget gap.

California residents are expected to vote this year on whether legalization should be approved to raise nearly $1.4 billion in state revenue. That's based on an estimate from the State Board of Equalization, a tax administration agency.

"It would be another source of revenue for the state," said Anita Gore, spokeswoman for the board. The board has not issued an opinion on legalization as a means of easing the state's budget crisis, she added.

California Secretary Debra Brown confirmed on Wednesday that enough signatures had been collected to put AB 390, a marijuana legalization bill, on the ballot for Nov. 2. A press release from the secretary said that legalization proponents submitted 694,248 petition signatures for the bill, easily surpassing the required 433,791.

"The momentum for reform has grown exponentially since we introduced the bill last year," said Quitin Mecke, spokesman for Assemblyman Tom Ammiano, D-San Francisco, the lead sponsor of the bill. "We're excited about the prospect to reform drug laws again."

Mecke noted that California was the first state to pass legislation allowing medicinal marijuana, 14 years ago.

Unlike prior legislation that has passed in California and other states, this form of legalization is not restricted to medicinal use of marijuana. The bill proposes that marijuana be regulated and taxed in a similar way to alcohol.

According to the bill, people would have to be 21 years or older "to possess, cultivate, or transport marijuana for personal use." Californians would not be permitted to use the drug in public or within the presence of minors, and would not be allowed to possess it on school grounds.

Most importantly, as far as the budget gap is concerned, the bill stipulates that the drug would be subject to a sales tax. An additional retail fee of $50 would be imposed on every ounce that's sold.

The State Board of Equalization estimates that the state could raise $1.382 billion in annual tax revenues from legal marijuana. The figure is based on estimated revenue of $990 million from the retail fees and $392 million from sales taxes.

"With the state in the midst of an historic economic crisis, the move towards regulating and taxing marijuana is simply common sense," Ammiano said in a press release when he first proposed the bill last year.

Also, Mecke said that legalization could prompt the state to "reallocate" more than $300 million in law enforcement spending away from non-violent drug activity to address violent crimes.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,814.94 -2.96 -0.02%
Nasdaq 4,758.25 3.36 0.07%
S&P 500 2,067.03 -2.38 -0.12%
Treasuries 2.26 -0.05 -2.16%
Data as of 8:11am ET
Company Price Change % Change
Apple Inc 117.60 -1.02 -0.86%
Bank of America Corp... 17.10 -0.08 -0.47%
Huntington Bancshare... 10.11 -0.07 -0.69%
Kinder Morgan Inc 40.75 -0.04 -0.10%
Ford Motor Co 15.68 0.01 0.06%
Data as of Nov 25

Sections

Airlines are a notoriously difficult industry for investors, but these stocks have been soaring and that's unlikely to stop. More

More retailers start their deals on Thanksgiving, but it's merely shifted some customers from Black Friday to Thursday. More

Sales of iPads and other tablets are slumping badly in 2014, and won't likely be a big hit during the holidays as they were last year. More

Ever since the Ebola epidemic erupted in her hometown of Foya, Liberia, Deboriah Foko has been working with Doctors Without Borders to inform others about this deadly virus. Here are journal entries from a day in her life. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.