California Police Chief- Fall 2013 CPCA_2019_Spring Magazine- FINAL | Page 37

In addition to mountains of tax revenue, we would
retain local control, the black market would die a quick
death and funding for youth programs, and research
would prevent spikes in DUID driving and abuse by
minors.
In actuality, 2018 marijuana revenues were $345
million, or roughly a third of the industry’s rosy
projection. There is indeed room for growth, but the
number says more about misinformation during the
campaign than flawed tax rates.
Fast-forward to today when Sacramento is inundated
with lobbyists prophesying the imminent demise of the
fledgling marijuana industry due to crushingly high taxes.
Enter Assembly Bill 286, authored by Assemblymember
Bonta. The bill would temporarily reduce California’s
cannabis excise tax from 15% to 11% percent and suspend
the cultivation tax altogether through 2022.
The industry has argued small growers and retailers
can’t compete with the black market, and as they go out
of business, only the largest monopolistic companies will
have the resources to survive. However, this was always
going to be the case. Decisions on tax rates should not be
knee jerk reactions to these market forces. Moreover, the
promises made to California voters should not be undone
in a futile attempt to rescue people who made a business
decision to come out of the shadows. Law enforcement,
of course, should want to encourage this, but not at the
expense of funding for promised youth programs and the
infrastructure needed to regulate cannabis properly.
The primary flaw of focusing on tax rates is that it just
puts cash in the pockets of the industry without addressing
the real problem of enforcement. Without effective
enforcement, any tax rate, combined with the costs of
regulation, will keep the black market thriving.
Budget and staffing challenges following the great
recession led to hard choices for Chiefs. Narcotics units
often ended up on the chopping block to cut costs. On
the heels of these cuts, law enforcement responded to the
will of the public and Sacramento as penalties for drug
crimes were systematically reduced making arrests and
prosecutions problematic. In short, many agencies got out
of the proactive narcotics enforcement business.
Current plans to combat the black market place too
much emphasis on regulation and inspections with not
nearly enough focus on investigations, enforcement
operations, and good old fashioned arrests. Enforcement
mechanisms should not just be focused at the state level
and instead must be in partnership with local and county
law enforcement agencies. Few police agencies, however,
have the money or staff to start up a narcotics unit or
commit personnel to task forces. This funding must come
from the state. It’s encouraging there is talk of additional
funding for enforcement efforts, but the details – like how
much and where it’s directed - matter.
We cannot combat the illegal cannabis market without
enforcement any more than we can eliminate the illicit
opioid market with Naloxone. There are already sufficient
incentives in place to leave the black market. There must
be more focus on deterrents for those choosing to reject
lawful business practices. A focus on proactive enforcement
and maximized penalties should be the priority before any
consideration of rolling back tax rates. ■


SPRING 2019 | California Police Chief
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