Sacramento County will finally consider cannabis sales (and taxes) in unincorporated areas

It took more than four years, but Sacramento County has finally drafted regulations that would sanction and tax marijuana businesses in unincorporated areas. On Tuesday, the Board of Supervisors will vote to place a measure on the November ballot, and given the clear mandate from voters who backed legalization in 2016 — they definitely should.

But the way the ordinance is drafted, estimates as high as $8 million in new tax revenue would be absorbed by the county’s General Fund. There are better uses for that money that address historical wrongs and reduce the risk for the county’s youngest residents. Allowing legitimate cannabis businesses to flourish in these communities could also undercut the underground market that still operates in many neighborhoods.

The Board of Supervisors should heed the calls from various civil rights and youth advocacy organizations to direct a share of revenue toward substance abuse prevention and public health measures — particularly in communities that were disproportionately impacted by the racist War on Drugs and mass incarceration.

But as the ordinance stands currently, any tax revenue generated from new cannabis businesses in Sacramento’s unincorporated areas would funnel toward the $3.5 billion General Fund, to be used however the Board of Supervisors see fit.

We can think of a better use for that money.

So can multiple representatives from various local civil rights and youth advocacy groups, who have called on the supervisors to redirect some of the revenue into preventative programs instead, including abuse prevention, public health and community education.

The revenue should be used for preventative programs to prioritize areas that have been disproportionately hurt by the racist war on drugs and mass incarceration.

The city of Sacramento may ask voters to do the same on its own November ballot, if Mayor Darrell Steinberg has his way. Steinberg wants the city to set aside approximately 40% of cannabis tax revenue for youth substance abuse prevention, youth mental health and other youth services. Given the city’s historic failure to dedicate money for youth programs, there’s a serious need for such a measure.

Cannabis has been legal in California for years and is the fifth largest crop in the state according to data from the California Department of Food and Agriculture — behind dairy products, almonds, grapes and strawberries. County leaders must invest in neglected areas, and cannabis revenue could be a reliable funding stream to do that. Crafting a responsible ordinance is a good way to achieve both, and further the promise of legalization that California voters approved back in 2016.

Many of Sacramento County unincorporated areas encompass diverse neighborhoods, home to immigrant communities and lower-income families who have been disproportionately impacted by decades of cannabis legislation and haphazardly-enforced laws.

This is a reasonable ask by advocates from all sides of the aisle, and the Sacramento County Board of Supervisors should enact it. Putting clear language of fiscal intent into the ballot measure itself would help voters understand the intricacies of the politics behind what’s being asked of them.

The Sacramento County Supervisors have a chance to be proactive with this policy and begin restoring communities harmed by laws that willfully ignored the consequences. The county’s cannabis ordinance is a chance to establish inclusion at the outset.

This story was originally published July 12, 2022 at 5:00 AM.