Pubdate: Sat, 22 Dec 2012
Source: Gazette, The (Colorado Springs, CO)
Copyright: 2012 The Gazette
Contact: http://www.gazette.com/sections/opinion/submitletter/
Website: http://www.gazette.com/
Details: http://www.mapinc.org/media/165
Authors: Harris Kenny and Leonard Gilroy
Note: Harris Kenny is a Denver-based policy analyst and Leonard
Gilroy is the director of government reform at Reason Foundation
(reason.org). They wrote this article for the Independence
Institute, a Denver think tank.

LEGISLATURE HAS THE CHANCE TO SET A STANDARD ON 64

Last month Colorado voters resoundingly passed Amendment 64 into the
state constitution, legalizing both recreational marijuana and
industrial hemp. So far, realizing the will of the voters is on track,
but implementation risks threaten to undermine the intentions behind
Amendment 64. Policy makers are contending with thriving black markets
and gray markets (goods or services that while legal, are still traded
outside of any tax or regulatory regime), so it is in their best
interests to get this right-even if they didn't support the initiative
in the first place.

The most glaring opposition comes from President Barack Obama, despite
his recent opaque comments in an interview with Barbara Walters about
how enforcing marijuana prohibition is not a "top priority." He has
tragically escalated the policies of his like-minded predecessor,
George W. Bush, for four years by taking hostile actions against
legal, legitimate medicinal marijuana businesses in direct
contradiction to his campaign promises. Continued hostility should be
expected from the Obama administration until proven otherwise.

Fortunately, Colorado voters aren't doing this alone.

Gov. John Hickenlooper recently announced a 24-member task force
assigned with recommending needed legislative actions. Congresswoman
Diana DeGette is sponsoring a bill (HR 6606) with bipartisan support
that would prevent federal statutes from pre-empting state laws on
marijuana.

Voters in Washington State passed a similar marijuana legalization
initiative; meaning two states are waging this fight-for now.
Correspondingly, major national pollsters, including Gallup, Angus
Reid and Public Policy Polling, have found a majority of Americans
support legalizing recreational marijuana.

Amendment 64 allows possession and transfer without remuneration of up
to one ounce of marijuana, and home cultivation of up to six marijuana
plants for adults over 21. It also calls for Colorado policy makers to
adopt laws taxing and regulating marijuana, a critical step towards
creating a legal, commercial market.

But a failure of the legislature to follow through could work to
perpetuate prohibition-enabled black and gray market operations.

The best way for policy makers to avoid this scenario would be to
swiftly establish the tax and regulatory components of the new system,
so marijuana is regulated akin to alcohol.

Unlike alcohol, though, the policies must be clear and effective on
both sides of the cash register.

Colorado's regulations on alcohol are no model.

The state has anachronistic regulations on alcohol, such as forbidding
franchising for liquor store owners, preventing direct sale from
wholesalers to consumers, and forcing grocers to sell lower
concentration alcohol.

Sensible regulations on both sides of the cash register terrify black
market operators (like drug cartels and gangs), because it means
competition from legitimate businesses. For consumers, the biggest
issue will likely be additional legislation on driving under the
influence of marijuana, even though it is already illegal. A bill is
being written to prohibit driving with five nanograms of
tetrahydrocannabinol (THC)-the main psychoactive ingredient in
marijuana-per milliliter of blood.

This proposal is problematic. Inactive THC can stay in one's system
for days or weeks, so the test can't differentiate past use from
present intoxication. As the bill is still being written, new language
reportedly would allow drivers to prove their sobriety.

Nonetheless, many remain justifiably wary.

Predictably, many are salivating at the thought of new tax revenue
that hasn't even been collected.

Besides new state and local sales tax revenue, the legislature is
tasked with selecting an excise tax rate of up to 15 percent.

However, the Taxpayer's Bill of Rights (TABOR) amendment to the state
constitution requires voters to approve all tax increases.

The attorney general has indicated the language in Amendment 64 "did
not comply" with TABOR. Hence, separate voter approval of the excise
tax is expected.

Colorado imposes relatively low excise taxes on alcoholic spirits and
beer (44th and 46th respectively, among all states, according to the
Tax Foundation). Low excise taxes would be prudent for marijuana, too.
The higher the excise taxes, the greater incentive black and gray
market operators have to stay in business.

Black and gray market operators have proven resilient throughout the
so-called "War on Drugs," while policy makers obstinately continue
ineffective prohibition that squanders countless dollars and ruins
lives. Instead, the people of Colorado tasked policy makers with
adopting more sophisticated drug policy by legalizing recreational
marijuana and industrial hemp. While early signals are encouraging,
implementation risk looms large, and voters are watching.
- ---
MAP posted-by: Jo-D