Trevor Hughes

USA TODAY

A tech billionaire’s plan to legalize recreational marijuana in California has taken a major step toward the November ballot.

Known as the “Adult Use of Marijuana Act,” the ballot measure legalizes possession of small amounts of cannabis for adults, establishes tax rates and a structure for farmers to grow pot, and creates the framework for a statewide distribution system. It has likely collected enough signatures to qualify for the fall ballot, although it still must receive formal certification from state elections officials, its proponents said Wednesday.

Medical marijuana use has been legal in California since 1996, but the proposal backed by former Facebook president Sean Parker opens up marijuana use for all adults, not just those with a doctor’s note.

"This is a game changer," said Calif. Lt. Gov. Gavin Newsom, who is backing the initiative, at a press conference Wednesday, which was made public via Periscope. "We have a chance to lead a national dialogue, a national debate.”

The California Police Chiefs Association is helping coordinate an opposition campaign that also includes sheriffs deputies and Teamsters.

The stakes are huge. Experts say legal marijuana could be worth billions for California, not just through taxes, but through a new network of licensed cultivation, distribution and testing facilities, all of which will need employees, construction workers and equipment. Nationwide, by 2020, adult use and medical marijuana sales are expected to reach nearly $23 billion, triple this year, based in part on California's legalization.

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The ballot measure dovetails with and builds on legislation establishing basic ground rules for legal marijuana in the Golden State.

A similar proposal failed to qualify for the 2014 ballot because its backers lacked the money necessary to collect sufficient signatures. Parker donated $100,000 to that 2014 effort but has donated more than $1 million to this current initiative. Other backers include the Drug Policy Alliance and Nicholas Pritzker of Hyatt Hotels, although Parker is the single-largest financial supporter.

Newsom said legalization will help address racial and economic disparities in marijuana possession prosecutions while keeping pot out of the hands of kids because legal marijuana facilities will follow strict age guidelines. Parker's donations will help the ballot initiative pay for campaign advertisements urging voters to approve the measure.

“We’re not doing this lightly. We’re doing it very thoughtfully," Newsom said. “This is not about creating a new gold rush in California."

Californians in 2010 rejected a similar plan, and since then have seen Colorado, Alaska, Oregon, Washington, and the District of Columbia all legalize adult recreational use. Colorado, Oregon and Washington also legalized marijuana stores where pot is taxed when sold to customers. Alaska is still developing its commercial marijuana system, and the District of Columbia has not yet created one, although both states permit cultivation and use.

“Today, it’s a different world. You have seen what recreational has done in Denver, in Washington. You see it works," said Ata Gonzalez, the founder of G FarmaLabs, a California-based cannabis company also selling in Washington. He envisions tourists drawn to California is the same way they come for the wine.

“You can come to Cali, land, buy your cannabis," he said. "I think it’s going to bring our revenues up tremendously.”

If passed, the measure would create a new Bureau of Marijuana Control, require growers and sellers to pay taxes, and establish stiff penalties for anyone caught illegally diverting water, an aspect popular with environmentalists. It would tighten the state’s comparatively lax medical marijuana system and bar use by anyone younger than 21.

Ballot-measure backers collected more than 600,000 signatures to put the initiative before voters, who are widely expected to approve it, especially given Parker's apparent willingness to fund advertising. Backers say the contested presidential race will also likely drive high Democratic voter turnout, which would tend to favor legalization. Several competing ballot measures to legalize marijuana are also being floated, but Newsom said he expects support to coalesce behind this one.

Adult Use of Marijuana Act (AUMA): Let's get it right, California!

The measure allows adults to possess up to an ounce of marijuana at a time and grow six plants without needing a license. It also would bar public consumption, require quality and contamination testing, and grant business licensing priority to recognized medical marijuana producers. Giving preference to established medical marijuana industry players means they'll get a jumpstart on their competition.

Opponents argue the initiative, if made into law, will increase criminal activity.

In a statement, the "Public Safety First" campaign said the initiative contains too many loopholes to be effective, including language allowing people with felony drug convictions to participate in the legal market.

"...This new initiative will specifically allow for convicted major meth and heroin dealers to be licensed recreational marijuana vendors in California. You have to question proponents in terms of placing personal wealth and corporation profits ahead of community well-being," Ken Corney, president of the California Police Chiefs Association, said in a statement.

Parker chairs a self-named philanthropic organization that focuses on civic engagement, life sciences and global health. He's been open about using his wealth to fund social causes and frequently donates to California politicians and ballot committees, including Newsom. Parker didn't speak at Wednesday's announcement, although the initiative is routinely referred to as the "Parker measure."

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