TOWN CASHING IN AFTER TAX HIKE ON MEDICAL MARIJUANA
October 22, 2009
By Suzanne Zionts For Fox Business News.com


All this week FOX Business is investigating the medicinal pot business and national debate on legalization in a special report called High Noon.

One town in America that is cashing in on medical marijuana is Oakland, Calif., where 80% of voters approved a measure in July to raise taxes on medical marijuana.

Oakland City Councilwoman Rebecca Kaplan said medical cannabis in her city has become an issue of “fiscal responsibility and a source of public resources.” She said the future of marijuana legalization in the U.S. is in the hands of individual states, and that public attitude towards medicinal-cannabis reform is shifting.

Q: How is Oakland handling regulation of medical marijuana differently from other towns and states?
Kaplan: At the state level, California legalized medical cannabis in 1996, but that state law did not give specific details. What Oakland has done is create a set of local permitting locations for regulating cannabis dispensaries so you don’t have people opening facilities wherever they want. There is a whole application process, and a limit to the total number. Dispensary owners have to undergo background checks. We [Oakland] passed our own special tax on medical marijuana in July. We haven’t had any problems with our dispensaries because [they are following the special rules we’ve enacted].

Q: How has the general attitude towards medical marijuana shifted?
Kaplan: I think that in the past people have thought cannabis laws were only for people who wanted cannabis. Now, we are seeing this as a fiscal responsibility and a source of public resources. This issue has a much wider applicability. It ensures we have funding for basic public services. Medical marijuana reform is about the wider financial and resource issues. I think that is why there has been such a dramatic reversal in cannabis opinions.

Q: What do you think about the Obama administration’s announcement about the easing of federal prosecution for both medical marijuana users and dispensaries?
Kaplan: The announcement is good news. Frankly, it is good news for everybody because what it means is federal law enforcement will be used for real problems.

Q: Where do you see the legalization issue headed in our country for both medical and non-medical marijuana?
Kaplan: The most likely future is we will make this an issue of state control and different states will decide to do different things. Some states will decide to do comprehensive adult legalization. We have got a federal government that has to take care of a lot, but the federal government doesn’t have to be the place to determine cannabis regulation. I think it is very healthy for states to devise local laws. If one state finds something that is working better than the others, other states will copy them.

Q: Where do you see the future of medical marijuana in Oakland?
Kaplan: The big change we just made was the new tax adopted by the voters this summer. There is an $18-tax per thousand-dollar-in-gross-receipts for medical marijuana. That passed with 80% of the vote. Next [we need] to look at what the right number of dispensaries should be. The step beyond that is a system to regulate the growers. We’ve got a good set of regulations in place here in Oakland. We have had great success with our dispensary regulation. They [main-street neighbors] are happy with the dispensaries. I think that by having a real set of permits and regulations we can keep criminal organizations out.

Q: How do you feel Oakland’s approach differs from Los Angeles when it comes to dispensary regulation?
Kaplan: The challenge that L.A. is facing is that they don’t have a clear system of how to get permits. Because there is no permit system, the problem they are having is one of uncontrolled dispensaries. Oakland has a very clear structure. There is [lots of] paper work and rules.