BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 390
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          Date of Hearing:   January 12, 2010
          Counsel:                Kimberly A. Horiuchi


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                   AB 390 (Ammiano) - As Amended:  January 4, 2010
           
           
           SUMMARY :    Legalizes the possession, sale, cultivation and  
          other conduct relating to marijuana by persons over the age of  
          21.  Specifically,  this bill  :  

          1)Declares the intent of the Legislature to enact the Marijuana  
            Control, Regulation, and Education Act, to do all of the  
            following:

             a)   To legalize marijuana and its derivatives.

             b)   To remove all existing civil and criminal penalties for  
               adults 21 years of age or older who cultivate, possess,  
               transport, sell, or use marijuana, without impacting  
               existing laws proscribing dangerous activities while under  
               the influence of marijuana, or certain conduct that exposes  
               younger persons to marijuana.

             c)   To regulate marijuana in order to more effectively limit  
               access to marijuana by minors.

             d)   To deprive the criminal market of revenue derived from  
               the cultivation, smuggling, and sale of marijuana. 

             e)   To reduce the violence associated with the criminal  
               market for marijuana.

             f)   To prevent the environmental degradation that results  
               from the production and eradication of marijuana associated  
               with the criminal market.

             g)   To address the overall failure of marijuana prohibition  
               to protect the public health and safety. 

             h)   To raise funds and to discourage substance abuse by the  
               imposition of a substantial fee on the legal sale of  








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               marijuana, the proceeds of which will support drug  
               education and awareness.

             i)   To impose a set of regulations and laws concerning  
               marijuana comparable to those imposed on alcohol.

             j)   To impose substantial fines for violations of the  
               noncommercial regulations and laws concerning marijuana,  
               which will be applicable until and after commercial  
               marijuana is available by virtue of future changes in  
               federal law.

             aa)  To prevent state and local agencies from supporting any  
               prosecution for federal or other crimes relating to  
               marijuana that are inconsistent with those provided in this  
               bill.

             bb)  To exclude from the fees and regulations imposed by this  
               act marijuana that is for uses other than smoking or  
               ingestion, and to exclude medicinal marijuana from fees  
               under these provisions.

             cc)  To encourage the Federal Government to reconsider its  
               policies concerning marijuana, and to change its laws  
               accordingly.

          1)Authorizes the use of off-sale general license for sale, to  
            consumers only and not for resale, of marijuana, concentrated  
            cannabis, or any of its derivatives. 

          2)States provisions of this bill are an exercise of police  
            powers of the state for the protection of the safety, welfare,  
            health, peace, and morals of the people of the state, to  
            eliminate the evils of unlicensed and unlawful production,  
            selling and disposing of marijuana and to promote temperance  
            in the use and consumption of marijuana.  It is hereby  
            declared that the subject that the subject matter of this  
            legislation involves the highest degree of economic, social  
            and moral well-being and the safety of the state and of its  
            people.  All provisions of this bill shall be liberally  
            construed for the accomplishment of these purposes. 

          3)Declares the intent of the Legislature to ensure the strict,  
            honest, impartial and uniform administration and enforcement  
            of marijuana laws throughout the state governing the  








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            production, sale, disposal, and promotion of temperance in the  
            use and consumption of marijuana. 

          4)Requires the Department of Alcoholic Beverage Control (ABC) to  
            administer and enforce the terms of legalized marijuana, as  
            defined in this bill.  ABC shall make and prescribe those  
            reasonable rules as may be necessary or proper to carry out  
            the purpose and intent of this bill, and to enable it to  
            exercise the powers and perform the duties required. 

          5)Defines marijuana as all parts of the plant Cannabis sativa  
            L., whether growing or not; the seeds thereof; the resin  
            extracted from any part of the plant; concentrated cannabis;  
            and every compound, manufacture, salt, derivative, mixture, or  
            preparation of the plant, its seeds or resin.  It does not  
            include the mature stalks of the plant, fiber produced from  
            the stalks, oil or cake made from the seeds of the plant, any  
            other compound, manufacture, salt, derivative, mixture, or  
            preparation of the mature stalks (except extracted resin),  
            fiber, oil, or cake, or the sterilized seed of the plant that  
            is incapable of germination.  

          6)Provides that "marijuana" does not include "medical marijuana"  
            regulated in the Health and Safety Code. 

          7)Requires ABC to license commercial cultivators of marijuana.   
            The fee for the license shall be set at an amount that will  
            reasonably cover to costs of assuring compliance with the  
            regulations to be issued, but may not exceed $5,000 for an  
            initial application, or $2,500 per year for each annual  
            renewal.

          8)Mandates ABC require background checks of applicants.  At the  
            request of ABC or other local agencies, the Attorney General  
            (AG) shall provide summary criminal history information to  
            ABC, as specified. 

          9)Authorizes ABC, with consideration for the risks posed by  
            cultivation of a valuable crop with public health implications  
            that is subject to significant fees, to issue and enforce  
            regulations concerning commercial cultivators of marijuana  
            that provide for all of the following:

             a)   Adequate security to reasonably protect against  
               unauthorized access to the marijuana crop at all stages of  








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               cultivation, harvesting, drying, processing, packing,  
               packaging, labeling and delivery to licensed sales outlets  
               or wholesalers.  Each licensee shall be required to provide  
               a detailed crop security plan, along with satisfactory  
               proof of the financial ability of the licensee to provide  
               for that security.

             b)   Appropriate employment rules, including the rule that a  
               person under 21 years of age may not have access to  
               marijuana during cultivation, storage, drying, packing, or  
               at any other time.

             c)   Safeguards to assure that a person under the age of 21  
               may not transport marijuana on behalf of a commercial buyer  
               or commercial seller.

             d)   Restrictions to ensure that marijuana is not used or  
               consumed on the premises of a commercial cultivator.

             e)   An inspection and tracking system to reasonably ensure  
               that all marijuana produced by the cultivator that is  
               eventually sold is assessed under the Revenue and Taxation  
               Code. 

             f)   Recordkeeping consistent with the regulatory needs of  
               ABC.

             g)   Ensure that all applicable statutory environmental and  
               agricultural requirements are followed in the cultivation  
               of marijuana. 

             h)   Adequate labeling of packages of marijuana to describe  
               the purity, potency, processing and any adulteration of the  
               product.

          10)Requires ABC to license marijuana wholesalers, who shall be  
            allowed to package and prepare marijuana for sale, and who  
            shall be authorized to sell marijuana to licensed sales  
            outlets.  The fee for the license shall be set in an amount  
            that will reasonably cover the costs of compliance with the  
            regulations to be issued, but may not exceed $5,000 for an  
            initial application, or $2,500 per year for each annual  
            renewal.

          11)Requires ABC to issue and enforce regulations concerning the  








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            sale of marijuana by off-sale general licensees.  Those  
            regulations shall provide for all of the following:

             a)   An inspection and tracking system to ensure that  
               marijuana may not be sold by a licensee if that marijuana  
               has not been made subject to an assessment provided for in  
               the Revenue and Tax Code.

             b)   Marijuana shall be kept behind a counter in an area not  
               directly accessible to any customer, and shall be stored in  
               a case that is locked between sales.

             c)   Marijuana may not be sold to anyone person under the age  
               of 21.

             d)   Punishments for violations in actions against licensees  
               that are in substantial accord with those applicable to the  
               regulation of alcohol sales, including heavy penalties for  
               permitting persons under 21 years of age to purchase these  
               products and other appropriate regulatory provisions  
               concerning such matters as the time of sale, deliveries,  
               and signage. It is the intent of the people in enacting  
               this act that the regulation of marijuana sales be  
               consistent with the statutory guidance regarding alcohol  
               sales to the extent that consistency is feasible.

             e)   Recordkeeping consistent with the regulatory needs of  
               ABC.

          12)States beginning 30 days after the operative date of the  
            regulations issued, ABC shall begin to enforce the  
            regulations, as specified. 

          13)Eliminates marijuana-related misdemeanors from provisions of  
            law allowing for criminal records destruction after a period  
            of two years. 

          14)Amends various provisions of law prohibiting or regulating  
            the use of tobacco to include marijuana. 

          15)Eliminates objects designed to use or market marijuana,  
            hashish or hashish oil or designed to clean or refine  
            marijuana from the definition of "drug paraphernalia", as  
            specified. 









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          16)Deletes tetrahydrocannabinols from the list of Schedule I  
            drugs and instead includes synthetic tetrahydrocannabinols not  
            derived from cannabis plants. 

          17)Eliminates existing penalties for possession of marijuana  
            with the exception of penalties for possession of any amount  
            of marijuana on school campus and sale to a person under the  
            age of 18. 

          18)Deletes existing penalties for possession for sale and  
            transportation of marijuana, as specified, and makes  
            conforming amendments to provisions related to denial of  
            probation. 

          19)Removes crimes of possession, sale or growth of marijuana  
            from the list of offenses for which property may be the  
            subject of asset forfeiture. 

          20)Eliminates possession and growth of marijuana from provisions  
            of law defining the terms "marketing of illegal controlled  
            substances" and "specified illegal controlled substances". 

          21)States it is lawful and not a violation of California law for  
            a person 21 years of age or older to smoke or ingest marijuana  
            in one's home, or in any private residence, or upon the  
            grounds of that home or residence not visible from any public  
            place or neighboring property, with the consent of a resident  
            21 years of age or older.

          22)Creates an infraction to smoke marijuana in a public place.

          23)States it is lawful and not a violation of California law,  
            except as specified, for a person 21 years of age or older to  
            be under the influence of marijuana.

          24)Provides that it is unlawful for a person not licensed, as  
            specified, to cultivate marijuana, except in compliance with  
            the following requirements:

             a)   Marijuana may be cultivated only by persons 21 years of  
               age or older.

             b)   Marijuana may be cultivated only in a location in the  
               home or yard in which the marijuana is not visible from any  
               public place.








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             c)   "Public place" does not include air space, or any place  
               from which a viewer would violate the cultivator's  
               legitimate expectation of privacy.

             d)   Each person 21 years of age or older may have in  
               cultivation no more than 6 mature plants at any given time.

             e)   A licensed nursery may cultivate seedlings for sale to  
               persons 21 years of age or older, but shall destroy any  
               seedling if it has not been purchased by a consumer before  
               it reaches maturity.

             f)   Aside from the sale of seedlings by a licensed nursery,  
               marijuana cultivated pursuant to this section may not be  
               sold.

          25)Punishes unlawful cultivation of marijuana as an infraction,  
            punishable by a fine of up to $100.

          26)States that selling, providing, or transporting marijuana, or  
            possessing marijuana with the intent to sell, provide, or  
            transport that marijuana, into a state in which the receiving,  
            purchasing, or possessing marijuana would violate that state's  
            law is a felony. 

          27)States possession or use of marijuana by a person under 21  
            years of age is an infraction, punishable by a fine of up to  
            $100.  Any other violation of these provisions, as specified,  
            is an infraction, punishable by a fine of up to $100.

          28)Provides that notwithstanding any other law, it is lawful and  
            not a violation of California law to possess, transport, or  
            sell the mature stalks of the plant Cannabis sativa L., fiber  
            produced from the stalks, oil or cake made from the seeds of  
            the plant, any other compound, manufacture, salt, derivative,  
            mixture, or preparation of the mature stalks (except the  
            extracted resin, which is regulated as marijuana), fiber, oil,  
            or cake, or the sterilized seed of the plant that is incapable  
            of germination.

          29)Provides that state or local funds may not be expended on,  
            and state or local law enforcement or other personnel may not  
            assist in, the enforcement of any federal or other laws that  
            are inconsistent with the provisions of this bill, or provide  








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            for greater sanctions for conduct prohibited by this bill.

          30)Provides that this bill may not be construed to affect or  
            limit any criminal statute that forbids impairment while  
            engaging in dangerous activities like driving, or that  
            penalizes bringing marijuana to a school enrolling pupils in  
            kindergarten or any of grades 1 to 12, inclusive.  This bill  
            may not be construed to affect the rights of employers  
            concerning employees who use marijuana.

          31)Declares the intent of the people in enacting portions of  
            this bill to discourage drug use and to raise revenue for drug  
            education and drug awareness programs by enacting a  
            supplemental fee on marijuana.

          32)Defines the following terms:

             a)   "Marijuana" includes all marijuana, concentrated  
               cannabis, and their derivatives, except that marijuana  
               containing less than one-half of 1 percent  
               tetrahydrocannabinol by weight is not subject to this  
               supplemental fee. However, no fee shall be imposed under  
               this part on marijuana used medicinally with a doctor's  
               recommendation, as specified.

             b)   "Retailer" means any retailer licensed pursuant to  
               provisions of this bill who sells marijuana at retail.

          33)Provides that until a different fee is determined, as  
            specified, there is hereby imposed a fee of $50 per ounce  
            (avoirdupois) for the sale of marijuana sold at retail in  
            California on or after the date determined by the bill. 

          34)States that to the extent feasible or practicable, the  
            relevant provisions of the Revenue and Taxation Code shall  
            govern returns and payments, determinations, collections of  
            fees, overpayments and refunds, and administration, as  
            specified.

          35)Provides that the Franchise Tax Board (FTB) shall enforce  
            relevant provisions and may prescribe, adopt, and enforce  
            rules and regulations relating to the administration and  
            enforcement of this part. The FTB may prescribe the extent to  
            which any ruling and regulation shall be applied without  
            retroactive effect.








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          36)States any amount required to be paid to the state, as  
            specified, shall be paid to the FTB in the form of a  
            remittance payable to the State Board of Equalization (BOE).   
            The FTB shall transmit the payments to the Treasurer to be  
            deposited in the Drug Abuse Prevention Supplemental Funding  
            Account, which is hereby created in the General Fund.  Upon  
            appropriation by the Legislature, the moneys in the fund shall  
            be expended exclusively for drug education, awareness, and  
            rehabilitation programs under the jurisdiction of the  
            Department of Alcohol and Drug Programs, or any successor to  
            that agency.

          37)Provides that the fee imposed, as specified, shall be  
            annually reviewed by the Department of Alcohol and Drug  
            Programs (ADP), or any successor to that agency, to determine  
            whether a fee less than $50, as specified, will provide  
            sufficient resources to support its drug education, awareness,  
            and rehabilitation programs.  Based on this annual review, the  
            Department of ADP shall adjust that fee to an amount not to  
            exceed $50 per ounce (avoirdupois) of marijuana that is  
            necessary to fund its drug education, awareness, and  
            rehabilitation programs, and that amount shall be collected in  
            place of the fee, as specified.  

          38)Eliminates existing prohibitions on possession of marijuana  
            in a vehicle. 

          39)States the provisions of this bill are severable. 

           EXISTING LAW  :

          1)Provides that "marijuana" is all parts of the plant Cannabis  
            sativa L., whether growing or not; the seeds thereof; the  
            resin extracted from any part of the plant; and every  
            compound, manufacture, salt, derivative, mixture, or  
            preparation of the plant, its seeds or resin.  It does not  
            include the mature stalks of the plant, fiber produced from  
            the stalks, oil or cake made from the seeds of the plant, any  
            other compound, manufacture, salt, derivative, mixture, or  
            preparation of the mature stalks (except the resin extracted  
            there from), fiber, oil, or cake, or the sterilized seed of  
            the plant which is incapable of germination.  [Health & Safety  
            Code (HSC) Section 11018.]









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          2)States that except as authorized by law, every person who  
            possesses any concentrated cannabis shall be punished by  
            imprisonment in the county jail for a period of not more than  
            one year, by a fine of not more than $500, by both such fine  
            and imprisonment, or shall be punished by imprisonment in the  
            state prison.  [HSC Section 11357(a).]

          3)States that except as authorized by law, every person who  
            possesses not more than 28.5 grams of marijuana, other than  
            concentrated cannabis, is guilty of a misdemeanor and shall be  
            punished by a fine of not more than $100.  Notwithstanding  
            other provisions of law, if such person has been previously  
            convicted three or more times of an offense described in this  
            subdivision during the two-year period immediately preceding  
            the date of commission of the violation to be charged, the  
            previous convictions shall also be charged in the accusatory  
            pleading; if found to be true by the jury upon a jury trial or  
            by the court upon a court trial or if admitted by the person,  
            the provisions of existing law shall be applicable to him or  
            her, and the court shall divert and refer him or her for  
            education, treatment, or rehabilitation, without a court  
            hearing or determination or the concurrence of the district  
            attorney, to an appropriate community program which will  
            accept him or her.  If the person is so diverted and referred,  
            he or she shall not be subject to the fine specified in this  
            subdivision.  If no community program will accept him or her,  
            the person shall be subject to the fine specified in this  
            subdivision.  In any case in which a person is arrested for a  
            violation of this subdivision and does not demand to be taken  
            before a magistrate, such person shall be released by the  
            arresting officer upon presentation of satisfactory evidence  
            of identity and giving his or her written promise to appear in  
            court, as provided in existing law, and shall not be subjected  
            to booking.  [HSC Section 11357(b).]

          4)States that except as authorized by law, every person who  
            possesses more than 28.5 grams of marijuana, other than  
            concentrated cannabis, shall be punished by imprisonment in  
            the county jail for a period of not more than six months, by a  
            fine of not more than $500, or by both such fine and  
            imprisonment.  [HSC Section 11357(c).]

          5)States that except as authorized by law, every person 18 years  
            of age or over who possesses not more than 28.5 grams of  
            marijuana, other than concentrated cannabis, upon the grounds  








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            of, or within, any school providing instruction in  
            Kindergarten or any of Grades 1 through 12 during hours the  
            school is open for classes or school-related programs is  
            guilty of a misdemeanor and shall be punished by a fine of not  
            more than $500, by imprisonment in the county jail for a  
            period of not more than 10 days, or both.  [HSC Section  
            11357(d).]

          6)Provides that every person who possesses for sale any  
            marijuana, except as otherwise provided by law, shall be  
            punished by imprisonment in the state prison.  (HSC Section  
            11359.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    

           1)Author's Statement  :  According to the author, "California's  
                                            prison spending is out of control. Since 2000, prison costs  
            have grown 50% to over $10 billion - about 10% of the state  
            budget.  It now costs $46,000 to incarcerate one person for  
            one year.

          "In order to slow the increased costs of incarceration in the  
            state, California must slow the prison population growth.  
            Since the late 1980s, the prison population has increased by  
            75% to over 170,000 - nearly three times faster than the  
            general adult population. Meanwhile, the number of  
            incarcerated nonviolent offenders skyrocketed from 20,000 to  
            70,000.

          "Most of those nonviolent offenders incarcerated in the state  
            prison system have been convicted of relatively minor drug  
            offenses. Many of these drug offenses involve marijuana - a  
            drug which modern science and public opinion have suggested  
            should not be classified as a schedule I drug.  In addition to  
            the cost of incarcerating those convicted of possession, sale,  
            transportation, or cultivation of marijuana, the state and  
            local governments incur the extraordinary costs of enforcing  
            these laws and trying suspects in court.

          "California is experiencing the worst economic recession it has  
            seen since the Great Depression. With the downturn in the  
            housing market and the meltdown of the banking industry, the  
            state has been forced to cut vital programs and social  








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            services at an alarming rate. More Californians than ever are  
            in need of government assistance yet our state eliminated many  
            important programs in the most recent budget. California is in  
            desperate need of new revenue sources.

          "Among those programs cut were drug addiction treatment programs  
            required by Proposition 36. That initiative was passed by the  
            voters in 2000 to allow first- and second-time nonviolent,  
            simple drug possession offenders the opportunity to receive  
            substance abuse treatment instead of incarceration.

          "It is anticipated that this bill would inject nearly $1 billion  
            into a special fund dedicated to drug education, awareness,  
            and rehabilitation under the jurisdiction of ADP. The current  
            total budget for this department is $661 million and is  
            partially covered by existing dedicated revenue sources.  
            $189.5 million comes from the General Fund but other funding  
            sources could be legally redirected to other programs.  
            Proposition 36 treatment programs are virtually unfunded now,  
            but previously received $120 million, annually, from 2000  
            through 2006. According to the 2008 UCLA evaluation of  
            Proposition 36 full funding of the program would require $250  
            million, annually.

          "It is clear that the revenue generated by this bill could  
            offset hundreds of millions in existing General Fund  
            obligations, fully fund Proposition 36 treatment programs, and  
            still provide additional new resources for drug awareness and  
            prevention.


           2)Federal Preemption  :  This bill proposes to legalize marijuana,  
            a substance currently prohibited under both state and federal  
            law.  This bill has no impact on existing federal prohibition  
            and punishment of possession, cultivation and sale of  
            marijuana.  A state statute that conflicts with federal law  
            creates several issues of enforcement.  

          First, courts may have to decide if the federal law is itself  
            unconstitutional, clearing the way for state law.  If the  
            federal statute is ruled constitutional as applied to the  
            state, the courts may have to determine if the state law is  
            constitutional.  If so, it is possible for a state law and a  
            federal law to be in conflict but co-exist.  California's  
            Compassionate Use Act of 1996 is considered a valid state law,  








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            but was determined to have no effect on federal criminal law  
            related to marijuana; hence, the State may grant criminal  
            immunity for actions still illegal and punishable under  
            federal law.  

          Second, courts may determine that a state statute is  
            unconstitutional because it is in conflict with federal law.   
            This argument is grounded in the U.S. Constitution's Supremacy  
            Clause [U.S. Const. Art. VI 2].  This provision allows  
            federal law to trump state law under a theory of preemption.  

          As briefly explained above, the idea of preemption takes many  
            forms and is rooted in the Supremacy Clause in Art. VI 2 of  
            the United States Constitution, which states, "The  
            Constitution, and the laws of the United States which shall be  
            made in pursuance thereof; and all treaties made, or which  
            shall be made under the authority of the United States shall  
            be supreme law of the land; and the judges in every state  
            shall be bound thereby, any thing in the Constitution or laws  
            of any state to the contrary notwithstanding."  [U.S. Const.,  
            art. VI, 2].  

          The Supremacy Clause allows Congress the power to preempt state  
            law.  State law that conflicts with a federal statute is  
            without effect.  [Jevne vs. Superior Court (2005) 35 Cal.4th  
            935, 949; County of San Diego vs. San Diego NORML (hereinafter  
            San Diego NORML) (2008) 165 Cal.App.4th 798, 819.]  

          There are four variations of federal preemption:  express,  
            conflict, obstacle and field.  Express preemption arises when  
            Congress defines explicitly the extent to which its enactments  
            pre-empt state law.  Pre-emption fundamentally is a question  
            of congressional intent; and when Congress has made its intent  
            known through explicit statutory language, it is obvious when  
            the states are preempted from acting differently.  Second,  
            conflict preemption will be found when simultaneous compliance  
            with both state and federal directives is impossible.  Third,  
            obstacle preemption arises when under the circumstances of a  
            particular case, the challenged state law stands as an  
            obstacle to the accomplishment and execution of the full  
            purposes and objectives of Congress.  Finally, field  
            preemption, i.e., congressional intent to pre-empt all state  
            law in a particular area, applies where the scheme of federal  
            regulation is sufficiently comprehensive to make reasonable  
            the inference that Congress left no room for supplementary  








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            state regulation.  [Viva! Internat. Voice for Animals vs.  
            Adidas Promotional Retail Operations (2007) 41 Cal.4th 929,  
            935-936; San Diego NORML at 819.] 

          The federal Controlled Substances Act (CSA) prohibits  
            possession, distribution and manufacture of marijuana.   
            However, Congress stated it did not intent to preempt the  
            state on the issue of drug regulation.  The CSA explicitly  
            contemplates a role for the states in regulating controlled  
            substances.  Federal law states: 

          "No provision of this title shall be construed as indicating an  
            intent on the part of the Congress to occupy the field in  
            which that provision operates, including criminal penalties,  
            to the exclusion of any State law on the same subject matter  
            which would otherwise be within the authority of the State,  
            unless there is a positive conflict between that provision of  
            this title and that State law so that the two cannot  
            consistently stand together.  [21 U.S.C. 903].  

          Hence, the federal CSA does not seem to expressly preempt state  
            law and limits preemption to cases of positive conflict.   
            "Because Congress provided that the CSA preempted only laws  
            positively conflicted with the CSA so that the two sets of  
            laws could not consistently stand together, and omitted any  
            reference to an intent to preempt laws posing an obstacle to  
            the CSA, we interpret 21 USCS 903 as preempting only those  
            state laws that positively conflict with the CSA so that  
            simultaneous compliance with both sets of laws is impossible."  
             [San Diego NORML)(2008) 165 Cal. App. 4th 798, 825, review  
            denied 2008 Cal. LEXIS 11986 (September 26), review denied  
            2009 U.S. LEXIS 3594 (2009).]  The Court of Appeals in San  
            Diego NORML went on to explain:

          "Although we conclude that [18 USCS Section 903] signifies  
            Congress's intent to maintain the power of States to elect 'to  
            'serve as a laboratory' in the trial of 'novel social and  
            economic experiments without risk to the rest of the country'  
            (internal citation omitted) by preserving all state laws that  
            do not positively conflict with the CSA, we also conclude the  
            identification laws are not preempted even if Congress had  
            intended to preempt laws posing an obstacle to the CSA.   
            Although state laws may be preempted under obstacle preemption  
            when the law 'stands as an obstacle to the accomplishment and  
            execution of the full purposes and objectives of Congress'  








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            (internal citation omitted), not every state law posing some  
            de minimus impediment will be preempted. To the contrary,  
            '[d]isplacement will occur only where, as we have variously  
            described, a 'significant conflict' exists between an  
            identifiable 'federal policy or interest and the [operation]  
            of state law,' [citation] or the application of state law  
            would 'frustrate specific objectives' ? [citation].'  [Boyle  
            v. United Technologies Corp. (1988) 487 U.S. 500, 507, italics  
            added.]  Indeed, Boyle implicitly recognized that when  
            Congress has legislated in a field that the states have  
            traditionally occupied, rather than in an area of unique  
            federal concern, obstacle preemption requires an even sharper  
            conflict with federal policy before the state statute will be  
            invalidated."  [San Diego NORML at 826]

          Although the San Diego NORML case affirmed the judgment of the  
            lower court that providing identification cards as authorized  
            by the California's Compassionate Use Act were not preempted,  
            laws pertaining to medical marijuana are considerably narrower  
            than outright legalization.  It is unclear whether the courts  
            would take such a strict view of conflict preemption when  
            applied to a larger policy change like legalized marijuana.   
            It important to note, however, that both the California and  
            U.S. Supreme Court declined to hear this case, giving at least  
            tacit approval of its holding, albeit quite narrow in scope.    
            Also important to note is the identification cards at issue in  
            San Diego NORML explicitly stated a person may still be  
            prosecuted under federal law.  As briefly explained above,  
            state laws may not provide immunity from federal prosecution  
            unless the federal statute is ruled an unconstitutional use of  
            federal authority.  Federal authority may be found in the  
            interstate commerce clause.  

          It is also possible that creating a state structure to legalize  
            and regulate marijuana rather than just eliminating statutes  
            that penalize possession and/or cultivation of marijuana may  
            be construed as obstacle preemption.  As noted above, where  
            the statute at issue is not an area of unique federal concern,  
            there must be a "sharp conflict" with federal policy for the  
            state statute to be invalid.  [Boyle at 506.]  Provisions of  
            this bill authorize the cultivation and sale of marijuana on  
            specified circumstances.  Although it seems likely that the  
            courts will not see drug policy as a unique federal concern,  
            legalization and regulation may also be seen as the sort of  
            sharp conflict that rises to the level of obstacle preemption.  








                                                                  AB 390
                                                                  Page 16

             

           3)Interstate Commerce Clause  :  A significant way in which the  
            Federal Government regulates state conduct is through the  
            interstate commerce clause.  The United States Constitution  
            states that of the powers granted to Congress is "[the power]  
            [t]o regulate commerce with foreign nations, and among the  
            several states, and with the Indian Tribes".  (United State  
            Constitution Article I, Section 8.)  

          The CSA defined five schedules of narcotics based on medical  
            uses and the likelihood of addiction.  (21 USCS Sections  
            801-844.)  The Act defines "marijuana" as "all parts of the  
            plant Cannabis sativa L., whether growing or not; the seeds  
            thereof; the resin extracted from any part of such plant; and  
            every compound, manufacture, salt, derivative, mixture, or  
            preparation of such plant, its seeds or resin.  Such term does  
            not include the mature stalks of such plant, fiber produced  
            from such stalks, oil or cake made from the seeds of such  
            plant, any other compound, manufacture, salt, derivative,  
            mixture, or preparation of such mature stalks (except the  
            resin extracted there from), fiber, oil, or cake, or the  
            sterilized seed of such plant which is incapable of  
            germination."  [21 USCS Section 802(16).]  California has also  
            adopted this definition and similarly characterizes marijuana  
            as a Schedule I controlled substance.  Schedule I controlled  
            substances incur the highest penalties for possession, use and  
            sales and is perceived as having little or no medical purpose.  
             (See HSC Section 11018.)

          The United States Supreme Court ruled that Congress is within  
            its right to supersede state drug laws because even intrastate  
            manufacturing and sales affects a national and international  
            drug trade that poses a risk to the United States as a whole.   
            [21 USCS Section 801; Gonzales vs. Raich (hereinafter Raich)  
            (2004)545 U.S. 1, 17.]

          The Federal Government may use the interstate commerce clause to  
            affect state law if the activity regulates the use of the  
            channels of interstate commerce, the instrumentalities of  
            interstate commerce, and activities that substantially affect  
            interstate commerce.  [Raich at 15; Lopez v. U.S. (1995) 514  
            US 549.]  In viewing those factors, the court has held that if  
            legislators have a rational basis for believing that a  
            regulation affects interstate commerce and the means chosen  








                                                                  AB 390
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            are reasonable and appropriate, congressional action will  
            probably be deemed a fair use of the interstate commerce  
            clause.  [Heart of Atlanta of Atlanta Motel vs. United States  
            (1964) 379 U.S. 241 and Katzenbach vs. McClung (1964) 379 U.S.  
            294.]  

          There are two analogous cases that might shed light on whether  
            the State of California may amend its marijuana statute in  
            manner different than the federal statute.  First, in Wickard  
            vs. Filburn, the Supreme Court held that the Agricultural  
            Adjustment Act of 1938 permitted the Secretary of Agriculture  
            to regulate the growth and consumption of wheat on every farm  
            in the United States.  The Court reasoned that even one  
            farmer's growth and consumption because of the "cumulative  
            effect" each farmer might have on the overall wheat industry  
            and, hence, the national economy.  [Wickard vs. Filburn (1942)  
            317 U.S. 111.]  

          Second, in Gonzales vs. Raich, the U.S. Supreme Court, relying  
            heavily on the aforementioned Wickard case, held that  
            California may exempt marijuana for medicinal purposes from  
            its own criminal possession statute but that has no effect on  
            federal law.  The court based its ruling on the idea that use  
            of "any commodity, be it wheat or marijuana, has a substantial  
            effect on the supply and demand in the national market for  
            that commodity."  [Raich at 2208.]  

          It is unclear how legalizing marijuana in the State of  
            California will affect a federal prohibition on possession of  
            marijuana.  At the very least, a person may still be subject  
            to federal arrest and prosecution for possession, distribution  
            and manufacturing.  Therefore, legalization in California  
            would not immunize a person from a substantial federal prison  
            sentence.  The State of California should have an interest in  
            providing some comfort to its citizens that compliance with  
            state law is, by definition, lawful conduct. 

           4)Tenth Amendment  :  As explained above, the Supremacy Clause in  
            the U.S. Constitution allows Congress to regulate various  
            aspects of interstate commerce and otherwise limit state  
            action.  However, such powers are limited by the State's right  
            to act.  Tenth Amendment jurisprudence has expanded and  
            contracted over the past two hundred years.  Although the  
            first ten amendments are referred to as the "Bill of Rights",  
            the Tenth Amendment is different than the first nine and  








                                                                  AB 390
                                                                  Page 18

            provides, "The powers not delegated to the United States by  
            the Constitution, nor prohibited by it to the States, are  
            reserved to the States respectively, or to the People."  [U.S.  
            Const. Am. 10.]  The Tenth Amendment is not an individual  
            right but rather a recognition of the states' rights in  
            relationship to the Federal Government.  This amendment  
            though, has been largely ignored.  The landmark case of  
            McCulloch vs. Maryland (1819) 17 U.S. (4 Wheat.) was the first  
            to recognize federal constitutional limitations on the right  
            of states to enact contrary laws. [Stephens & Scheb, American  
            Constitutional Law, Vol. II (2008), p. 15; Mayer, Justice  
            Clarence Thomas and the Supreme Court's Rediscovery of the  
            Tenth Amendment (hereinafter Mayer), (1996) 25 Cap. U.L. Rev.  
            339, 362].  During the years following the New Deal, the U.S.  
            Supreme Court greatly limited the Tenth Amendment as a  
            restraint on federal power and particularly the interstate  
            commerce clause.  [See Wickard at 124; NLRB vs. Jones &  
            Laughlin (1937) 301 U.S. 1, 30; Mayer at 379.]  

          The Tenth Amendment lay mostly dormant until U.S. vs. Lopez  
            (1995) 514 U.S. 549 interpreted the application of the  
            Gun-Free School Zones (GFSZ) Act of 1990.  The Lopez Court  
            struck down as unconstitutional the federal GFSZ because it  
            exceeded congressional authority under the Commerce Clause.  
            [Mayer at 393].  In rejecting the Federal Government's claim  
            that firearms had a substantial effect on interstate commerce,  
            the Court stated, " . . . if we were to accept the  
            Government's arguments, we are hard-pressed to posit any  
            activity by an individual that Congress is without power to  
            regulate even in areas such as criminal law enforcement or  
            education where States historically have been sovereign."   
            [Lopez at 567].  The U.S. Supreme Court also rejected portions  
            of the Violence Against Women Act as an inappropriate use of  
            the interstate commerce clause in U.S. vs. Morrison (2000) 529  
            U.S. 598.  Both these cases related to congressional efforts  
            apply criminal penalties to the states.  Could a similar  
            analysis be applied to the federal Controlled Substances Act?  
            Also, of important note, is the distinction between  
            legalization and decriminalization.  Would it be more squarely  
            constitutional to eliminate various criminal penalties related  
            to possession, sale or cultivation rather than legalizing  
            marijuana and affirmatively regulating its possession and  
            sale? 

           5)Pending Initiatives Related to Marijuana Legalization  :  There  








                                                                  AB 390
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            are at least four initiatives proposing to legalize marijuana  
            pending signatures seeking inclusion on the November 2010  
            ballot.  The Cannabis Control, Decriminalization, Regulation  
            and Taxation Act adds five new sections to the Health and  
            Safety Code generally legalizing use, possession and sales of  
            marijuana and does not amend or delete any other existing  
            statute criminalizing marijuana.  The Regulate, Control, and  
            Tax Cannabis Act of 2010 also seeks to legalize possession and  
            cultivation of marijuana and authorizes local governments to  
            adopt regulations to control, license, regulate and permit  
            cultivation and sale of marijuana.  The Jack Herer Cannabis  
            Hemp Initiative is similar in that it legalizes the  
            possession, cultivation and sale of marijuana but also  
            contains a broad provision repealing all laws in conflict with  
            the terms of this initiative and requires that all persons  
            incarcerated for any non-violent cannabis, hemp or marijuana  
            offenses be released and all related criminal convictions be  
            expunged from the offender's record.  These three initiatives  
            each include language prohibiting the sale of marijuana to  
            persons under the age of 21.  Finally, the Common Sense Act of  
            2010 is the shortest of all the initiatives and simply  
            instructs the legislature to formulate new laws to regulate  
            and tax the cultivation, production, transport, sale and/or  
            use of marijuana by January 2011.  The Common Sense Act also  
            includes a provision requiring every member of the U.S.  
            Congress from California must work to remove federal criminal  
            penalties related to marijuana. Each initiative must obtain  
            433,971 valid signatures no later than April 2010 depending on  
            the initiative in order to qualify for the November 2010  
            ballot.  
           
           6)Prior Legislation  :

             a)   SB 847 (Vasconcellos), Chapter 750, Statutes of 1999,  
               established the Marijuana Research Act of 1999 and provide  
               that the Regents of the University of California, if they  
               elect to do so, may implement a three-year program, the  
               "California Marijuana Research Program", under which funds  
               would be provided for studies intended to ascertain the  
               general medical safety and efficacy of marijuana and, if  
               found valuable, to develop medical guidelines for the  
               appropriate administration and use of marijuana.

             b)   SB 791 (McPherson), of the 2001-02 Legislative Session,  
               would have reduced simple possession of not more than 28.5  








                                                                  AB 390
                                                                  Page 20

               grams or marijuana to an infraction for the first offense  
               and an alternate infraction/misdemeanor for the second  
               offense.  SB 791 failed passage on the Assembly Floor.
                                                                     
             c)   SB 420 (Vasconcellos), Chapter 875, Statutes of 2003,  
               establishes a voluntary registry identification card system  
               for patients authorized to engage in the medical use of  
               marijuana, and their caregivers.

             d)   SB 131 (Sher), of the 2003-04 Legislative Session, would  
               have reduced simple possession of not more than 28.5 grams  
               of marijuana to an infraction for the first offense, would   
               have reduced simple possession for a subsequent offense to  
               an alternate infraction/misdemeanor, and would have  
               increased the penalty for an offense to a fine of not more  
               than $250.  SB 131 failed passage on the Assembly floor,  
               was granted reconsideration, and was never re-heard.

             e)   SB 797 (Romero) of the 2005-06 Legislative Session,  
               would have reclassified a first offense for simple  
               possession of not more than 28.5 grams of marijuana as an  
               alternate infraction/misdemeanor and increases the penalty  
               for the offense from $100 to $250.  SB 797 failed passage  
               on the Assembly Floor and was moved to the Inactive File  
               after being granted reconsideration.  

             f)   AB 684 (Leno), of the 2007-08 Legislative Session, would  
               have clarified the definition of "marijuana" contained in  
               the Uniformed CSA to exclude industrial hemp, except where  
               the plant is cultivated or processed for purposes not  
               expressly allowed, as specified.  AB 684 was vetoed. 

             g)   AB 2743 (Saldana), of the 2007-08 Legislative Session,  
               would have stated that it is the policy of the state that  
               its agencies and agents not cooperate in federal raids and  
               prosecutions for marijuana related offenses if the target  
               is a qualified patient.  AB 2743 was moved to the Inactive  
               File on the Assembly Floor. 

           7)Arguments in Support  :

              a)   California NORML  : "AB 390 would save the state over $170  
               million in enforcement costs to arrest, prosecute and  
               imprison marijuana offenders, while reaping an addition $1  
               billion in much needed revenue for the state.  See attached  








                                                                  AB 390
                                                                  Page 21

               financial analysis.

             "The evidence is clear that California's current laws against  
               marijuana have failed.  Criminal penalties have failed to  
               prevent drug use or abuse, or to protect public health or  
               safety.  California first prohibited cannabis (or "Indian  
               hem") in 1913 at the behest of the state Board of Pharmacy.  
                At the time, cannabis use was virtually unknown, the  
               purpose of the law being to prevent foreign immigrants from  
               spreading it.  Only after being prohibited did marijuana  
               become widely popular, eventually being used by millions of  
               Californians.

             "Felony penalties failed to prevent an explosion of marijuana  
               use in the sixties and seventies.  Because of rising  
               enforcement costs, the legislature decriminalized  
               possession to a misdemeanor by the Moscone Act of 1975-6.   
               The Moscone Act saved the state an estimated $100-200  
               million per year in enforcement costs, with no perceptible  
               impact on marijuana use.  However, it failed to eliminate  
               prohibition-related crime, because production and sale  
               remained felonies.

             "Subsequent years have seen continued marijuana arrests, at  
               the rate of 16,400 felonies and 55,200 misdemeanors per  
               year.  Last year, arrest climbed to their highest level  
               since decriminalization.

             "Since 1980, the number of marijuana offenders in state  
               prison has increased 15-fold, with no perceptible effect on  
               marijuana use.

             "In 1983, the state introduced the CAMP marijuana eradication  
               program.  CAMP's take has soared in recent years, reaching  
               an all-time record high of 2.9 million plants in 2007-8.   
               At $1,000 per plant, the value of the lost crop is worth  
               over $3 billion - money lost to California's legal economy  
               due to prohibition.

             "The evidence is clear that all of the state's efforts have  
               failed utterly to eradicate marijuana use.  So long as  
               marijuana remains illegal, the state will continue to waste  
               money criminalizing its citizens, searching for illegal  
               gardens in our parks and national forests, hunting down  
               smugglers and "grow houses," and generating needless  








                                                                  AB 390
                                                                  Page 22

               prohibition-related crime.

             "By undermining the illicit market, AB 390 would improve  
               public safety in the same way that repeal of alcohol  
               prohibition did.  Illegal producers and dealers would be  
               forced off the market by legally licensed suppliers, while  
               taxpayers would benefit from the revenues of the legal  
               market.  Taking into account the $50/ounce tax levied under  
               AB 390, the price of marijuana could be expected to fall to  
               around $100/ounce, further reducing any remaining incentive  
               for illegal growing.

             "As for consumption, there is no need to fear significant  
               adverse effects to public health or safety from legal  
               marijuana.  This is first of all due to the unique safety  
               profile of marijuana.  In the words of the 1990 Report of  
               the California Research Advisory Panel:  'an objective  
               consideration of marijuana shows that it is responsible for  
               less damage to the individual and society than are alcohol  
               and cigarettes.'  This has been confirmed by subsequent  
               studies, which have consistently showed that (1) marijuana  
               is a significantly lesser driving hazard than alcohol, and  
               (2) marijuana smoke poses a negligible risk of lung cancer,  
               unlike tobacco.  Any increase in marijuana use would  
               therefore have minimal negative impact on public health,  
               and could even be beneficial, to the extent that it might  
               substitute for alcohol, tobacco, and other, more harmful  
               drugs.  In addition, legalization would break the  
               connection between marijuana and the illegal drug market,  
               decreasing the likelihood that its users would have access  
               to other drugs.

             "Finally, it must be noted that there is no evidence that  
               legalization would lead to excessive marijuana and drug  
               abuse.  This can be seen from experience in the  
               Netherlands, the one country where marijuana is now de  
               facto legally available.  Surveys of drug usage in Europe  
               show that the marijuana usage rate in the Netherlands is  
               around 3.3 % , in the mid-range of other European  
               countries,  and half that in the U.S. and California.  In  
               India, where cannabis use was under 1%, with the highest  
               rate (in Calcutta) just 5.4%.  More recently, a succession  
               of studies on decriminalization have repeatedly failed to  
               find any link between the harshness of criminal penalties  
               and marijuana usage.  In particular, studies comparing San  








                                                                  AB 390
                                                                  Page 23

               Francisco to Amsterdam have found no evident differences in  
               usage attributable to criminal penalties in the former.

             "We note that the British Indian Hemp Drugs Commission Report  
               of 1893-4, which remains by far the most exhaustive study  
               ever conducted of a legal cannabis regime, rejected  
               prohibition as an inadvisable policy for British India.   
               Instead, it concluded that 'the combination of a fixed duty  
               with license fees for the vend constitutes the best system  
               of taxation for hemp drugs'. This is precisely the system  
               proposed in AB 390.

             "In sum, AB 390 proposes the only policy for cannabis control  
               that has proven historically successful and viable.  We  
               urge the legislature to act favorably on AB 390 with the  
               understanding that whatever technical adjustments may be in  
               order, the basic framework of legal licensing and taxation  
               is clearly preferable to California's failed current policy  
               of prohibition."

              b)   Drug Policy Alliance  : "AB 390 (Ammiano) would set up a  
               comprehensive system to tax and regulate marijuana and  
               decriminalizes possession, sale, cultivation,  
               transportation and other conduct relating to marijuana by  
               adults.  If enacted, AB 390 (Ammiano) would enhance public  
               safety, while generating $1.3 billion in annual revenue,  
               and redirecting scarce law enforcement, court and other  
               criminal justice resources to more important matters of  
               public safety.  

             "Drug Policy Alliance supports AB 390 (Ammiano) for the  
               following reasons:

             "  Existing Marijuana Policies are a Threat to Public Health  
               and Safety  :  Marijuana prohibition creates a violent,  
               multibillion-dollar criminal industry that fuels drug  
               trafficking organizations and organized criminal groups in  
               Mexico and California. The safe regulation of marijuana  
               would undermine these criminal enterprises on both sides of  
               the border while boosting California's economy and  
               protecting Californians.

             "Research shows that California spends over $980 million  
               annually in enforcing marijuana laws given the costs of law  
               enforcement, courts, and incarceration. These considerable  








                                                                  AB 390
                                                                  Page 24

               resources would be better spent on preventing and  
               investigating serious and violent crimes.  Available  
               research shows that policing strategies that stringently  
               enforce marijuana prohibition do not produce reductions in  
               violent or property crimes and instead divert limited  
               resources from more effective law enforcement approaches.

             "Existing policies of criminalizing casual, adult, marijuana  
               use constitute an invasion of privacy and are an example of  
               government overreaching.  In many cases, current marijuana  
               policies create criminals out of otherwise law- abiding  
               citizens.  The heavy-handed reach of the criminal law into  
               private conduct substantially burdens the liberty interests  
               of thousands of Californians.  Moreover, beyond direct  
               criminal penalties, current policies create indirect  
               burdens in numerous areas concerning individual liberty,  
               from the ability to find a job, to paying taxes, to the  
               procurement of federal student loans and other public  
               benefits.  AB 390 (Ammiano) replaces the blunt instrument  
               of the criminal law with a more precise and effective  
               system of regulation and taxation.

             "  Existing Marijuana Laws are Enforced in a Racially Biased  
               Manner  :  The burdens of marijuana prohibition in California  
               disproportionately and dramatically impact minority and  
               working class Americans.  Despite relatively equal  
               marijuana consumption rates across ethnic and racial lines,  
               African Americans and Latinos are far more likely to be  
               arrested for marijuana offenses in California.  African  
               Americans comprise approximately 6 percent of California's  
               total population but over 32 percent of felony marijuana  
               arrests and 19 percent of misdemeanor marijuana arrests.   
               Latinos comprised 37 percent of all misdemeanor marijuana  
               arrests in 2007.   Additionally, a report by the California  
               Judicial Council Advisory Committee on Racial and Ethnic  
               Bias in the Courts found that: 'It is likely that the  
               enforcement of the drug laws has unequally affected  
               minority-group members, particularly African Americans.'

             "Marijuana law enforcement unjustly discriminates against men  
               and women in communities of color, contributing to economic  
               and social disenfranchisement for those persons and their  
               families, and deteriorating public safety in communities  
               unjustly impacted by zealous drug enforcement and high  
               incarceration rates.








                                                                  AB 390
                                                                  Page 25


             "  Marijuana is a Billion-Dollar Industry that Could Generate  
               Considerable Revenue  : Marijuana is the California's largest  
               de facto cash crop, conservatively valued at $13.8 billion  
               annually-nearly twice the value of the California's  
               vegetable and grape crops combined.  Marijuana, if taxed  
               and regulated like alcohol and tobacco, would allow  
               taxpayer dollars currently used for marijuana enforcement  
               and prosecutions to be redirected to health, education,  
               drug treatment and other state programs.  The regulation of  
               marijuana cultivation, distribution and sales would  
               generate considerable additional revenue from excise and  
               sales tax as well as licensing fees.  California has  
               already collected more than $100 million in tax revenues  
               from roughly 400 medical cannabis dispensaries statewide  
               pursuant to policies established by the State Board of  
               Equalization.  Far greater revenues would be generated as a  
               result of AB 390 (Ammiano) because it imposes taxes and  
               fees on every phase of the legal marijuana economy,  
               including permitting and licensure fees for cultivation,  
               production, manufacture, and sale; regulation and taxation  
               of distributors; licensing of retail outlets; sales and use  
               taxes; excise taxes; and income taxes on legal workers at  
               every level.

             "For these reasons, in 2005 over 500 leading economists,  
               including three Nobel Laureates (the late Dr. Milton  
               Friedman, Dr. George Akerlof of the University of  
               California at Berkeley and Dr. Vernon Smith of George Mason  
               University) signed an open letter to the President,  
               Congress, Governors, and State Legislatures urging an open  
               and honest debate about marijuana prohibition, which 'will  
               favor a regime in which marijuana is legal but taxed and  
               regulated like other goods.'

             "Regulation and Taxation will Reduce Marijuana Use by Young  
               People:  Existing laws have resulted in a black market in  
               which marijuana is readily available to minors.  In the  
               2007 Monitoring the Future survey on adolescent drug use in  
               the United States, nearly two fifths of 8th graders (37.4  
               percent), more than two thirds of all 10th graders (69  
               percent), and 84 percent of all high school seniors  
               reported marijuana as being "very easy" or 'fairly easy' to  
               attain.  The recently released 12th Biennial California  
               Student Survey on Drug, Alcohol and Tobacco Use, 2007-08,  








                                                                  AB 390
                                                                  Page 26

               found that current marijuana use is more prevalent than  
               cigarette use among California youth in grades 7, 9 and 11;  
               and that marijuana is perceived as being easier to obtain,  
               more widely used among peers, and more widely used on  
               school property than are cigarettes among students in all  
               these grades.  

             "AB 390's system of taxation and regulation will reduce  
               access to marijuana by minors.  Age restrictions and taxes  
               have consistently proven effective at limiting young  
               people's access to and consumption of alcohol and nicotine.  
                A meta-analysis of 112 previous studies published in the  
               February 2009 issue of Addiction concluded that the higher  
               taxes tended to reduce drinking among adult and teenage  
               social drinkers as well as problem drinkers.  A recent  
               study of state tobacco taxes from 1991-2005 found that  
               every $1.00 in increased state tax could potentially result  
               in a 5.9% decrease in past-month smoking and a 4.1%  
               decrease in frequent smoking among U.S. high school youth.   
               Likewise, regulations and taxation required by AB 390  
               (Ammiano) would limit young people's access to marijuana.

           8)Arguments in Opposition  : 

              a)   California District Attorneys Association  :  "The stated  
               purpose of this bill is to 'regulate marijuana' and  
               'deprive the criminal market of revenue derived from the  
               cultivation, smuggling, and sale of marijuana.'   
               Unfortunately, the bill's own provisions make achieving  
               either one of those goals very difficult, if not  
               impossible.

             "AB 390 replaces existing felony penalties for the unlawful  
               cultivation and sale of marijuana with infractions  
               punishable by a fine of up to $100.  Despite the assertions  
               of proponents of decriminalization that a legal, regulated  
               market will sap demand from the illegal market, the bill  
               ensures that there will be no meaningful sanction for those  
               who will choose to continue to participate in the black  
               market.  The marijuana growers and sellers who will operate  
               outside of the regulated framework will undoubtedly view  
               fines of $100 as a small cost of doing business.  

             "Additionally, we are very concerned about the bill's  
               language that provides that "state or local funds may not  








                                                                  AB 390
                                                                  Page 27

               be expended on, and state or local law enforcement or other  
               personnel may not assist in, the enforcement of any federal  
               or other laws that are inconsistent with this division, or  
               provide for greater sanctions for conduct prohibited by  
               this division."  This provision hamstrings peace officers  
               and prosecutors from assisting their federal partners and  
               creates a dangerous precedent of non-cooperation

              b)   California Narcotics Officers Association  :  "We have  
               examined AB 390 and regret that we must oppose this  
               legislation.  AB 390 would decriminalize marijuana use,  
               cultivation, sale and transportation for sale in  
               California.  Further, the penalties for illegal cultivation  
               - activities that have increasingly been taken over by  
               organized criminal enterprises - are also weakened.   
               Moreover, even if federal law is changed, the RAND  
               Corporation has already demonstrated that any actual  
               revenues from AB 390 would be negligible.  The RAND  
               Corporation conclusions, presented at the Informational  
               Hearing on October 12, effectively remove any benefit that  
               would be derived from decriminalization of marijuana.

             "It's also worth noting that AB 390 contains no tool in place  
               to deal with the increase in criminal activity that will  
               inevitably follow decriminalization.  Right now we have  
               serious public safety and social problems cause by abuse of  
               alcohol and abuse of pharmaceuticals.  Abuse of alcohol and  
               pharmaceuticals - both lawful products - place incalculable  
               burdens on the criminal justice system.  Given that  
               reality, it is pertinent to ask how on earth things will  
               get better by adding yet another mind altering substance -  
               marijuana - to the array of legal substances that interfere  
               with a person's five sense?  And, into the bargain  
               marijuana is carcinogenic; assuring that its increased use  
               will also ratchet up cancer deaths.  This fact by itself  
               should give policy makers pause - surely no one would  
               advocate a return to cigarette vending machines based on  
               bare assertions of increased revenues.

             "Will legalization reduce the organized criminal activity  
               associated with marijuana distribution?  The available  
               evidence suggests that it will not.  The experience in  
               Amsterdam provides an important canary in the coal mine:   
               Since legalizing marijuana cafes in 1988, Amsterdam has  
               gone from having three identified crime organizations to  








                                                                  AB 390
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               ninety-three today.  That is one of the reasons the Dutch  
               government, in December 2008, has now embarked on a program  
               to close marijuana cafes:  in order to drive out organized  
               crime.

             "In California, marijuana cultivation and distribution are  
               largely in the hands of either Asian criminal combines, who  
               control most of the indoor grown activity; or the Mexican  
               drug cartels, who now control most illegal cultivation in  
               the emerald triangle.  These are violent and sophisticated  
               organizations - the FBI estimates that over half of the 200  
               abductions taken place in southern California this year are  
               attributable to the Mexican drug cartels.  To suggest that  
               legalization will somehow make these criminal combines go  
               away is not only na?ve, but contrary to the experiences of  
               history.  Serious analyses of the repeal of Prohibition has  
               revealed that far from disappearing, the criminal combines  
               engaged in bootlegging simply became "lawful" alcoholic  
               beverage distributors in various states.  The Kefauver  
               Organized Crime hearing in the 1950's showed that from the  
               base of alcoholic distribution businesses, organized crime  
               came to corrode local and state governments throughout the  
               United States.  Is there anyone who seriously believes that  
               the Asian criminal combines or the Mexican drug cartels are  
               going to be meekly "driven out of business" by marijuana  
               legalization?  Every experience of history suggests that it  
               will only strengthen their hand.

             "Marijuana legalization will cause increase of other crimes,  
               as well.  Legalization of marijuana will increase use - but  
               use doesn't come for free.  What is being suggested is the  
               legalization of  the sale  of marijuana - not grants of  
               marijuana to low-income users.  We in law enforcement can  
               expect increases in the crimes that are typically  
               associated with drug users attempting to finance their  
               habit- auto burglaries, auto theft, identity theft, and  
               other crimes against persons and property.

             "Another crime that we can expect to see exponentially  
               increase is drugged driving.  Even without marijuana  
               legalization, this is a serious problem - a 2004 study of  
               emergency room admissions from motor vehicle crashes  
               revealed that more than half of the drivers admitted to a  
                                                                   level-1 trauma center tested positive for drugs other than  
               alcohol.  This study, published in the Traffic Injury  








                                                                  AB 390
                                                                  Page 29

               Review, was similar to numerous other studies.   
               Significantly, when breakouts were done of the drugs that  
               resulted in the DUI accident or arrest, the overwhelming  
               majority of the test samples showed marijuana in the blood  
               system of the arrestee.

             "Legalization of marijuana will only result in an increased  
               use of marijuana, with a corresponding increase in the  
               drugged driving arrests.  Unlike many countries in Western  
               Europe, who provide that the presence of any level of  
               illegal drug in a person's system is a driving violation,  
               California has no statutory system in place to deter  
               drugged driving.  In fact, this committee rejected  
               legislation in 2008 that would have adopted a western  
               European per se standard.  Drugged driving is a growing  
               problem and marijuana is a major element of drugged  
               driving; law enforcement has no real tools to combat  
               drugged driving; surely no one can seriously suggest that  
               legalization of marijuana will help with this problem - it  
               will only make it worse.

             "Here's what we know:  We already have serious problems  
               created by abuse of legal mind-altering products;   
               legalization of yet another mind-altering product will only  
               add to the current level of problems:  since that product  
               is carcinogenic, public health problems will also increase;  
               legalization not only will not deter organized criminal  
               activity, it will probably increase it; crimes related to  
               drug use will increase; and the impartial RAND Corporation  
               (which, unlike the Board of Equalization did not rely on  
               NORML sources for their fiscal research) has concluded that  
               any fiscal benefits are illusory.  For these reasons, we  
               must respectfully oppose AB 390; there is simply no public  
               benefit derived."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          A New PATH
          AFL-CIO
          American Civil Liberties Union
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          Associated Students, University of California, Santa Barbara








                                                                  AB 390
                                                                  Page 30

          Bill Rosendahl, Councilmember, City of Los Angeles
          California Communities United Institute
          California NORML
          California Public Defenders Association
          California Tax Reform Association
          Courage Campaign
          Drug Policy Alliance 
          Interfaith Drug Policy Initiative 
          Legal Services for Prisoners with Children 
          Los Angeles Community Action Network
          Northern California Chapters of Pink Pistols
          Office of the Public Defender, City and County of San Francisco
          Office of the Sheriff-Administration, City and County of San  
          Francisco
          Taxpayers for Improving Public Safety
          24 private individuals

           Opposition 
           
          Alcohol-Narcotic Education Foundation
          Association for Los Angeles Deputy Sheriffs
          California District Attorneys Association
          California Fraternal Order of Police
          California Narcotics Officers Association
          California Peace Officers' Association
          California Police Chiefs Association
          California State Sheriffs' Association
          Californians for Drug-Free Schools
          Concerned Women for America of California
          Long Beach Police Officers Association
          Los Angeles County Professional Peace Officers
          Los Angeles Police Protective League
          Riverside Sheriffs Association 
          Santa Ana Police Officers Association
          Sheriff, Alameda County
          Sheriff, Amador County
          Sheriff-Coroner, Del Norte County
          Sheriff, El Dorado County
          Sheriff, Fresno County
          Sheriff-Coroner, Napa County
          Sheriff, Sacramento County
          Sheriff, San Bernardino County
          Sheriff, Stanislaus County
          Sheriff, Tuolumne County
          Sheriff, Ventura County








                                                                  AB 390
                                                                  Page 31

          Sheriff, Yolo County
          6 private individuals
           

          Analysis Prepared by  :    Kimberly Horiuchi / PUB. S. / (916)  
          319-3744