Drug, Tobacco and Alcohol Policy on 2010 Statewide Ballots

Nov. 3, 2010

Voters in six states considered a total of eight measures relating to state policy on drugs, tobacco and alcohol this November 2.  It was not a good night for marijuana legalization -- California's Prop. 19 and at least two of the three medical marijuana measures failed to pass.  Arizona's medical marijuana initiative is teetering at 49.75% with 99% of the vote counted.  Voters in Washington reacted to the two competing measures to privatize liquor sales by rejecting both, although the results on I-1100 could conceivably change over the next few days as mail ballots continue to trickle in.

Hot Issues

• Drugs, Tobacco and Alcohol
• Legislatures
• Elections and Redistricting
• Budgets, Taxes and Revenue
• Hunting, Fishing and Animal Rights

More Resources

• 2010 Ballot Measure Results
• 2010 Ballot Measures: Pre-Election Overview
• Ballot Measure Database 

Skip Ahead to Alcohol Policy / Tobacco Policy / More Resources

Drug Policy on Statewide Ballots

Legalizing Marijuana

While pot was on the ballot in four states this year, just one -- California -- considered the legalization of the sale, possession and use of marijuana for adults aged 21 and older.  Voters rejected Prop. 19 yesterday, giving it just 45.4% of the vote.  The chief components of this initiative were:

• People aged 21 and older would be able to grow, possess, process, transport and share up to one ounce of marijuana for personal use.
• Use of marijuana would continue to be illegal in most public places, but local governments would be able to authorize and regulate both the use and sale of marijuana.
• Local governments would be permitted to tax marijuana-related activities, and marijuana sales would be subject to all applicable local, state and federal taxes.

While it's never been on the ballot in California in exactly this form, decriminalizing marijuana is not an entirely new issue on the California ballot.  It made its first appearance in 1972, with a measure that was also numbered Proposition 19.  That first attempt at legalizing marijuana would have removed criminal penalties for the use of marijuana by persons aged 18 and older.  It was rejected by voters.  It took 24 years for marijuana to make a second appearance on the ballot in California -- in 1996, voters approved Proposition 215, legalizing the medical use of marijuana.  More recently, in 2008, California voters rejected Proposition 5, which would have changed the sentencing laws for drug convictions and required rehabilitation instead of jail time for certain non-violent offenders.

Proponents of Prop. 19 likened current laws regulating marijuana to prohibition, and point to the potentially significant revenue for state and local governments from taxing the sale of marijuana.  The State Board of Equalization estimated in 2009 that a $50 per ounce tax on marijuana sales would bring in as much as $1.4 billion per year.  Prop. 19 did not include a specific tax rate for marijuana sales, however, and because of this the BOE declined to attach a specific dollar amount estimate to Prop. 19.  Supporters also pointed to the savings government would recognize in the areas of law enforcement, courts and corrections.  Opponents of Prop. 19 included many in the California law enforcement community.  In October, the California Beer and Beverage Distributors joined the fight, contributing $10,000 to the no on 19 campaign.

Medical Marijuana

Three states are voted on medical marijuana this year.  Arizona and South Dakota voters considered the idea of legalizing marijuana for medical use, while Oregon's Measure 74 asked voters to expand an existing medical marijuana law to establish a system of dispensaries to distribute medical marijuana.  Arizona's initiative is currently at 49.75% with 99% of the ballots counted; the other two medical marijuana measures have failed to pass.

California voters were the first to approve medical marijuana in 1996.  Since then, an additional 10 states -- including Arizona and South Dakota -- have voted on medical marijuana initiatives.  In 1996, Arizona voters approved Proposition 200.  It was a sweeping drug policy reform measure, legalizing the use of many drugs for medical purposes and decriminalizing certain drug offenses.  Voters approved Prop. 200, but because of flaws in its drafting, it has never been implemented.  This year's initiative avoided the drafting flaws of the 1996 effort by omitting the requirement that a physician write a prescription in order for a patient to legally obtain medical marijuana.  In South Dakota, voters rejected a medical marijuana initiative in 2006 -- the only instance in which voters have ever rejected a statewide medical marijuana proposal.  That measure would have legalized the medical use of marijuana for both adults and children.  This year's initiative would also have permitted children to use medical marijuana with a parent's consent.

Oregon voters approved medical marijuana back in 1998.  That measure established a permit system for the use of marijuana for certain medical conditions.  This year's Measure 74 would have permitted the distribution of medical marijuana through state-licensed dispensaries.  It would have required the Oregon Department of Human Services to regulate dispensaries, and also to conduct research on the safety and efficacy of medical marijuana use.  DHS marijuana-related activities would have been funded by dispensary licensing fees and a 10-20% gross receipts tax paid by dispensaries.  In 2004, Oregon voters rejected Measure 33, which was similar to this year's Measure 74.

Alcohol Policy on Statewide Ballots

Sales Tax on Liquor

Question 1, approved yesterday by voters in Massachusetts, repeals the sales tax on alcoholic beverages.  Before 2009, Massachusetts didn't have a tax on alcohol sales.  But in order to balance the 2010 budget, the legislature increased the general sales tax from 5% to 6.25% and at the same time applied it to beer, wine and alcohol sales.  The sponsors of Question 1, which included liquor store owners and alcohol producers and distributors, feared that shoppers will go to neighboring states where tax laws are more favorable to alcohol retailers, and prices are lower.  According to a late August State House News poll, just 38% of Massachusetts voters supported the repeal of the tax.

Privatizing Liquor Sales

In Washington, voters faced dueling initiatives on the subject of privatizing alcohol sales:  Initiative 1100 and Initiative 1105.  Currently, Washington is one of 19 control states where liquor is sold only in state stores or by private retailers who contract with the state Liquor Control Board.  While the two were similar, they contained some important differences too, as summarized in the table below.

It was not clear what would have happened if both Initiative 1100 and Initiative 1105 had passed.  In 1993, when competing tax reform measures passed, the state attorney general issued an opinion supporting the legislature's ability to implement both measures by amending them with a two-thirds vote to harmonize duplicate and competing provisions.  Failing that, it would likely have fallen to the courts to decide how to implement the voters' wishes.  In many states, the measure receiving the highest number of affirmative votes takes precedence over the other.

Tobacco Policy on Statewide Ballots

There was just one tobacco-related ballot measure this year:  Referred Law 12 in South Dakota.  In 2009, the legislature passed and the governor signed HB 1240, expanding ban on smoking that had been around since 2002 to include all restaurants, bars, liquor stores, and casinos.  Casino and video lottery operators filed a popular referendum against HB 1240.  Voters weighed in on Nov. 2, and opted to enact the legislature's expansion of indoor smoking restrictions.  The majority "yes" vote on Referred Law 12 results in the enactment of HB 1240.  If the "no" vote had prevailed, HB 1240 wouldl not have been enacted. 

More Information

Prop. 19 - legalizing marijuana in California

• California Voter Information Pamphlet - Proposition 19
• NORML - National Organization for the Reform of Marijuana Laws
• Drug-Free America Foundation

Medical Marijuana

• Arizona Ballot Pamphlet - Proposition 203
• Oregon Voter Information - Measure 74
• South Dakota Ballot Question Pamphlet - Initiated Measure 13
• NCSL's page on medical marijuana
• Marijuana Policy Project

Regulation of Alcohol Sales

• Massachusetts Voter Information - Question 1
• Washington Voters' Guide - Initiatives 1100 and 1105
• National Alcoholic Beverage Control Association
• Municipal Research Services Center of Washington (large collection of resources related to I-1100 and I-1105)
• Association of Washington Cities brief comparing I-1100 and I-1105

Tobacco Policy

• NCSL's website on enacted indoor smoke-free laws

For More Information

Contact

.

NCSL Contacts

• Jennie Drage Bowser is NCSL's contact for information on ballot measures and the initiative process.
• Contact NCSL's Criminal Justice Program for more information criminal drug laws.
• Karmen Hanson is NCSL's contact for information on medical marijuana.
• Jan Goering is NCSL's contact for information on the regulation of alcohol sales.