California’s Growing Industry

by Jack Lee with portions from the SF Chronical

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In the spirit of keeping up the so called war-on-drugs, California Gov. Arnold Schwarzenegger (R) Thursday signed into law a bill that decriminalizes the possession of up to one ounce of marijuana. The bill reduces simple possession from a misdemeanor to an infraction. Marijuana is a growing industry in California and brings in about $14bn in tax free money to those willing to take a small risk in cultivation and distribution. For instance, a 20X15 room with grow lights can produce up to $5000 in a little over one month’s time. In Mendicino pot farmers average about $65,000 a year in tax free income and some make a lot more, ranging into the hundreds of thousands for which they pay no taxes. In some areas where there is abundant and cheap empty homes growers rent or buy those houses just to grow their pot. As an example both Sacramento and Stockton have been targeted because of the empty housing. This pot business is booming, thanks to government mismanagement.

Consider, this comes at a time when people are hard hit by a recession and desperate for a little extra cash. Along comes the virtual decriminalization of marijuana and a huge demand thanks to these fake prescriptions. This has law enforcement overwhelmed and disgusted. D.A. are not interested in prosecution pot cases unless they are really huge.

Gov. Arnold Schwarzenegger signing of the latest pot bill only encourages more cultivation and gives law enforcement less reason to bother with enforcement. This has truly created a prohibition type atmosphere where a whole lot of people are taking their cuts and there’s a massive criminal underground at work within California that includes Mexican drug cartels.

Currently, small-time pot possession is “semi-decriminalized” in California. There is no possible jail sentence and a maximum $100 fine. But because possession is a misdemeanor, people caught with pot are “arrested,” even if that means only they are served a notice to appear, and they must appear before a court.

That has happened to more than a half million Californians in the last decade, and more than 60,000 last year alone. Every one of them required a court appearance, complete with judge and prosecutor. That costs the cash-strapped state money it desperately needs.

Under the bill signed today, SB 1449, by Sen. Mark Leno (D-San Francisco), marijuana possession will be treated like a traffic ticket. The fine will remain at $100, and there will be no arrest record.

In a signing statement, Schwarzenegger said he opposed decriminalization for personal use — and threw in a gratuitous jab at Proposition 19, the tax and regulate marijuana legalization initiative — but that the state couldn’t afford the status quo.

“I am signing this measure because possession of less than an ounce of marijuana is an infraction in everything but name,” said Schwarzenegger. “The only difference is that because it is a misdemeanor, a criminal defendant is entitled to a jury trial and a defense attorney. In this time of drastic budget cuts, prosecutors, defense attorneys, law enforcement, and the courts cannot afford to expend limited resources prosecuting a crime that carries the same punishment as a traffic ticket.”

“Gov. Schwarzenegger deserves credit for sparing the state’s taxpayers the cost of prosecuting minor pot offenders,” said California NORML director Dale Gieringer. “Californians increasingly recognize that the war on marijuana is a waste of law enforcement resources.”

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6 Responses to California’s Growing Industry

  1. Harold Ey says:

    This pot issue is as self- destroying to California as Prohibition effected crime along the border states of the US and Canadian waterways during the 20’s and 30’s.
    So in the name of cost savings we are allowing users to take another step toward legalizing a mind altering substance that is harmless until they cause damage or death through its abuse.
    While I agree with the comment about the meaningless bite the current statue takes out of crime, I believe there should be a records and punishments ,much like drunk driving to protect the potential victim’s who will be increasingly exposed to the danger and actions of Pot consumers.
    Now the out going Governor can say he tried to bring cost effectiveness to California much in the same vane as Obama takes credit for the tax cut extensions. Pure Politics, I am not impressed!

  2. Tina says:

    This is one of many “cuts” in big government policy that will be interesting to watch over the next year.

    Questions…can we tax an illegal substance? Can we license growers of an illegal product? Can we collect a percentage of the profits made from this illegal product? The obvious answer is No-ooo! But we can beat the *%&# out of the legal private sector!

    As long as this substance remains illegal at the federal level there is no practical means to “control” what has been made kinda, sorta legal to use. The entire subject is ripe for a slapstick comedy routine! Next thing you know, we’ll elect a president from among the profiteers pushing this bootleg product…ask not what your country can do for you…but ask what you can do for your country…wahoo!

  3. Post Scripts says:

    Legal or not the IRS sure as heck can tax income, to that there is no doubt. Just read how the IRS took down Al Capone. The IRS is the most powerful branch of the US government.

  4. Tina says:

    Jack: “Legal or not the IRS sure as heck can tax income, to that there is no doubt. Just read how the IRS took down Al Capone.”

    An interesting point. Capone was a well known gangster who filed returns though…right? How many of these growers are flying completely under the radar?

    Harold, I’m not impressed either!

  5. Quentin Colgan says:

    I wonder if we could have done something to stop the crimes associated with marijuana?
    Say, last month, on the 2d?
    I guess crime–and dead people–are good for America.

  6. Post Scripts says:

    When your average next door neighbor can easily add $20K to their annual budget, completely tax free, by growing a few pot plants in their bedroom, you know it’s over. There’s no effective legal control on pot cultivation – the campaign against pot is hopelessly lost and there is no chance of turning back from wherever this path leads.

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