In a contest that pitted the legal establishment against activists that have long sought the measure’s approval, California voters snuffed out a proposal that would have legalized recreational marijuana for adults over age 21 and permit the state to tax commercial sale of the drug.

California was the only state with a measure on recreational pot, but South Dakota and Arizona ballots included medical marijuana initiatives, South Dakota’s Measure 13 went down in flames, 63 percent to 37 percent. Arizona’s Proposition 203 was statistically on the fence, though no-votes were ahead by about 7,000 with 92 percent of precincts reporting early Wednesday morning. There are currently 14 states, and the District of Columbia, with forms of medical marijuana laws.

The proposal – titled the “Regulate, Control and Tax Cannabis Act” – would have allowed adults 21 and over to possess up to an ounce of pot, consume it in nonpublic places as long as no children were present and grow it in small private plots. Proposition 19 also would have authorized local governments to permit commercial pot cultivation, as well as the sale and use of marijuana at licensed establishments.

Projections in California and by the National Council of State Legislatures show the measure has gone down to defeat by a significant margin, with 54 percent voting no compared with a 46 percent yes vote with most precincts reporting – rejecting a low-budget but high-profile campaign that could have set a groundbreaking trend for the rest of the nation. Advocates had argued that the proposal, known as Proposition 19, would have provided the cash-strapped state with a significant revenue stream and helped ease the overburdened court system, while opponents contended the measure’s approval would have created legal and social chaos.

Supporters of Proposition 19 blamed Tuesday’s outcome on the conservative leanings of older voters who participate in midterm elections. They also acknowledged that young voters had not turned out in sufficient numbers to secure victory, but said they were ready to try again in two years.

“It’s still a historic moment in this very long struggle to end decades of failed marijuana prohibition,” said Stephen Gutwillig, California director for the Drug Policy Project. “Unquestionably, because of Proposition 19, marijuana legalization initiatives will be on the ballot in a number of states in 2012, and California is in the mix.”

Tim Rosales, who managed the No on 19 campaign, scoffed at that attitude from the losing side.

“If they think they are going to be back in two years, they must be smoking something,” he said. “This is a state that just bucked the national trend and went pretty hard on the Democratic side, but yet in the same vote opposed Prop 19.”

According to preliminary exit poll data, only about 1 voter in 10 said that his or her main motivation to vote in this election was Prop. 19.

Voters younger than 40 were slightly more drawn by the marijuana contest than older voters, but even among the younger voters, Prop. 19 came in third.

By far, the pot legalization initiative drew worldwide attention, but support for the measure had been sinking leading up to Tuesday’s ballot, according to recent polls. As late as Tuesday, Oakland City Attorney John Russo – a leading proponent of the pot plan – signaled its fading prospects during a Bay Area press conference.

“Even if we are cheated out of a win today, we have changed the debate from licentious hippies-versus-straight-arrow cops to one that recognizes this issue in all of its complexity,” Russo said, according to the Los Angeles Times.

Sources: Politico

To address concerns from smaller farmers, the council pledged to create regulations on regulating small- and medium-size marijuana farms this year. Council members and proponents of marijuana cultivation regulation viewed the proposal as smart public policy: It would generate revenue, ensure that fire and building codes are enforced, keep neighborhoods safe from robberies, and further position Oakland as the center of the state’s cannabis economy.

“It’s really important for Oakland to be a vital part of that growth and development for licensed facilities,” said Councilwoman Rebecca Kaplan.

But many of the folks on the front lines of the young industry say it will change the culture of what they’ve built.

They say industrial farms will turn a grassroots economy into a corporate one, driving down costs but also eroding the quality of the marijuana, which state voters defined in 1996 as medicine.

The most influential critic was Steve DeAngelo, owner of Oakland’s Harborside Health Center, the largest medical marijuana dispensary in the nation.

His dispensary buys from some 500 different growers, meaning Harborside offers about 100 varieties at any time. Permitting only industrial operations would reduce variety, he said.

“Government should not choose the winners and losers but create a level playing field,” he said. “Some people might prefer mass production, assembly-line cannabis that costs less. Others might prefer cannabis grown by a master gardener in a smaller plot.

“Let the market sort it out,” he said.

The regulations will award permits to four indoor marijuana farms. There will be no size limit, but there have been proposals for farms as large as 100,000 square feet – about the size of two football fields.

DeAngelo said he would prefer farms of various sizes.

The regulations will require applicants to have a minimum of $3 million worth of insurance, hire security and pay a $211,000 annual permit fee.

The city will be begin to issue permits in January and will allow the industrial farms to sell only to medical cannabis dispensaries.

But if state voters pass Prop. 19, a November initiative that would legalize recreational use of marijuana, proponents believe the city would be well situated for the booming industry.

By regulating certain growers, Oakland also plans to crack down on illegal grows, said Arturo Sanchez, an assistant to the city administrator.

His comments immediately prompted hissing and booing in the crowd.

Oakland has long been pushing the boundaries of marijuana legalization.

In 2004, voters passed Measure Z, declaring marijuana a low concern for law enforcement. In 2009, voters passed Measure F to tax medical cannabis at 1.8 percent.

The taxation, believed to be the first of its kind in the nation, was a step toward legalization.

By  Matthai Kuruvila

The city of Oakland became the first place in America to impose a tax on the sale of medicinal marijuana this week in what has been seen as a huge step on the path towards marijuana’s eventual decriminalization. Famed for its liberal stance on the subject, Oakland (fondly dubbed Oaksterdam by the cannabis community) city council backed the move by unanimously voting through a proposition to allow voters a chance to have their say on Measure F.

Proposed by the city’s 4 “cannabis clubs” themselves as a way of contributing towards the local economy, Measure F imposes a tax of 1.8% on the sale of medical marijuana – $18 on every $1000 sold. “It is important because the city of Oakland is facing a massive deficit like many jurisdictions in California,” says Steve DeAngelo, a leader of one of the city’s cannabis clubs.. “And we decided to step up to the plate and make a contribution to the city in a time of need.” Measure F was passed into state law last Tuesday with 80% of voters backing the proposal in a special postal ballot.

Source: CNN.com

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