Pubdate: Mon, 29 Apr 2013
Source: Washington Times (DC)
Copyright: 2013 The Washington Times, LLC.
Contact:  http://www.washingtontimes.com/
Details: http://www.mapinc.org/media/492
Author: Valerie Richardson
Page: A6

LEGAL POT ISSUE STILL SMOLDERS OUT WEST

Implementation, Tax Issues Fester

DENVER - Those who backed last year's votes to legalize marijuana in 
Colorado and Washington are still in high spirits, but now they're 
also grappling with a series of post-election potholes.

A proposal under discussion in the Colorado legislature would place a 
measure to repeal Amendment 64 on the November ballot. The repeal 
would only take effect if voters refuse to approve a second measure 
to fund state costs associated with marijuana regulation.

No repeal bill has been introduced, but those who campaigned for 
Colorado's Amendment 64 were furious, arguing that the proposal 
amounts to "extortion of the voters."

Talk of a repeal capped what could only be described as a harsh week 
for pot advocates. It started when gunfire broke out at Colorado's 
annual 4/20 pot festival, injuring three people and leaving the 
legalization movement with a nasty public relations shiner.

Then the Colorado Court of Appeals ruled Thursday that workers may be 
fired for their after-hours medical marijuana use. Medical marijuana 
is legal in some form in 18 states, including Colorado, but the drug 
remains illegal under federal law.

On the other hand, public support for legalized marijuana has never 
been higher. A Pew Research Center study released earlier this month 
found that 52 percent of adults favor legalization with 45 percent 
against, the first time in more than four decades of Pew polling that 
supporters outnumber opponents.

Meanwhile, Colorado and Washington officials are wading through the 
regulatory weeds as they grapple with the details of creating a legal 
framework for marijuana cultivation, sales and use for adults 21 and over.

"We are in a new era," said Democratic state Rep. Dan Pabon, who 
introduced one of the legislature's three pot-related bills.

His bill establishing a regulatory framework won initial passage, but 
debate over the pot taxation bill grew testy late Friday, with House 
Republicans staging a walkout shortly before midnight after being cut 
off by the Democratic leadership.

The Colorado legislation would create a 15 percent excise tax and 15 
percent special sales tax on marijuana. House Republicans are pushing 
to lower the rate on both taxes to 10 percent.

In this instance, Republicans are aligned with legalization 
advocates, who worry that a higher tax rate could result in an 
expanded black market and even rejection at the hands of tax-averse 
voters in November.

Under Colorado's Taxpayer Bill of Rights, any tax increase must be 
approved by voters. Amendment 64 calls for voters to approve an 
excise tax to cover the costs of marijuana regulation and fund school 
construction projects, but doesn't specify what would happen if 
voters were to reject the tax.

That's where the repeal discussion comes in. Diane Carlson of Smart 
Colorado, an anti-legalization group, argued that voters should be 
given the option of repealing Amendment 64 in order to avoid budget 
cuts to other spending priorities, such as K-12 education.

"This just gives the option for voters that if there is not the money 
to cover the costs, then Amendment 64 should not be implemented," 
said Ms. Carlson. "Are we going to shift money from our schools to 
fund marijuana? That is not what we were promised in the fall."

Christian Sederberg, a member of the state's marijuana task force, 
said enforcement could be funded by other means, such as licensing 
fees on the industry or operators' fees levied by local government.

"We're incredibly surprised to hear that there are some legislators 
even considering this proposal," said Mason Tvert, who led the 
Amendment 64 campaign. "We want to nip it in the bud because number 
one, it's not permissible, and number two, it's an irrational 
approach to implementing the will of the voters with Amendment 64."

In Washington, the ballot measure set taxation at 75 percent, 
settling the question. Washington legislators approved Friday a bill 
that sets legal distinctions between recreational marijuana and 
industrial hemp, which is sold for its fiber.

Washington's Liquor Control Board has been charged with implementing 
recreational-marijuana regulations. Still unresolved is whether the 
U.S. Justice Department will let the two states flout federal law by 
proceeding with their own regulatory framework for legalization.
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MAP posted-by: Jay Bergstrom