Hey gang, I don't want to take discussion away from RMLW campaign signature gathering news, but I drafted a "clean-up" bill for the Regulate Marijuana Like Wine initiative, should the initiative both make it onto the ballot and pass the General Election in 2012.
This legislation adopts taxation and regulatory rules, including a statewide implemented (and partially mandatory) licensing scheme, along with wording enhancements to make various activities not unlawful. In addition, this was drafted with the idea of making it preemption-proof, thanks in part to recent court cases in California. Notable changes would allow the sale of marijuana by any off-sale general and off-sale beer and wine license, among many others. Marijuana growers would be allowed to operate in any zone approved for wineries, and such license (from the Department of Alcoholic Beverage Control) shall cost $100/year.
I encourage you all to take a look and ask questions (message me if you'd like). If the RMLW initiative makes the ballot, it'd be my goal to get a legislator to take this bill up for consideration.
Enjoy!
Summary:
CRA Summary
Bill Text:
http://ca2012.com/download/CRA 12-03-11.pdf
EDIT: I updated the draft on 12/03 to clarify the taxation section slightly.
Taxation would be as follows:
$0.02/gram of marijuana*
$0.02/package of marijuana-infused product
$0.20/gram of concentrated cannabis
$0.20/mature plant used to sell the dried marijuana thereof, upon reaching maturity
*As 1 gallon of wine is taxed at $0.20, this assumption is that 10 grams of marijuana = 1 gallon of wine. As 1 gallon of wine will get 10 people drunk in a sitting, 10 grams of high grade marijuana will get 10 people stoned off their ass in a sitting. As such, the final per gram figure might fluctuate in the $0.02-$0.05 range.
In the devising of such taxation, the following calculation was made:
1 plant + 8 ounces (~240 grams) = $0.20 + $4.80 = $5/half pound, or presumably $10/pound.
Selling 10 pounds = $100 tax on the grower's side.
Excise taxes are charged only once, so ultimately most of these taxes will be payed by the grower or wholesaler.
In 2006, estimates were that CA grew and sold 8.6 million pounds of marijuana within the state. Let's assume that this amount hasn't increased or decreased, and would enter the legal market in 2013.
The taxation amount generated in 2013 would be estimated as:
~ 85 million dollars in excise taxes
~ 392 million dollars in state and local sales taxes (2010 BOE analysis figure)
= 477 million dollars in 2013.
It's a more realistic amount than the $1.4 billion that was estimated by AB390, and accounts for a variety of factors, including 50% decrease in prices upon legalization, and 40% increase in consumption overall. Enforcement of federal law, along with court cases in the state, may hamper the effect of implementing this taxation immediately. The BOE analysis further states that 8.9 million pounds are produced, but only 1 million are consumed within California. An additional assumption is made that, if a wine model were taken, the increased availability of marijuana would shift the playing field so that exporters of marijuana would no longer be dependent upon a specific grower-exporter relationship, and thus buy their marijuana lawfully under California law (thus be subject to the excise tax).
Subverting the tax is a $2500 fine for the first offense, with the addition of six months in county jail for subsequent offenses.
