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Reefer Madness in Ohio – Issue 3

28 Oct 2015

As goes Ohio, so goes the nation.

nn_07_gg_marijuana_140111On Tuesday November 3, Ohioans will go (hopefully flock in droves) to the polls to vote either for or against ballot initiative Issue 3.

Issue 3 is a proposed constitutional amendment calling for the legalization of marijuana for medicinal and recreational use. There are many reasons why you might want to vote against Issue 3:

While each of these reasons has validity, even if you are a recreational smoker praying for legalization of marijuana, Issue 3 is an economic abomination against the principles of free enterprise that made our economy and our nation great. The first statement on the ballot text of Issue 3 reads:

Endow exclusive rights for commercial marijuana growth, cultivation, and extraction to self-designated landowners who own ten predetermined parcels of land in Butler, Clermont, Franklin, Hamilton, Licking, Lorain, Lucas, Delaware, Stark, and Summit Counties. One additional location may be allowed for in four years only if existing facilities cannot meet consumer demand.

Issue 3 uses the Ohio constitution to ensure significant profits to a small self-selected group of investors who were willing to pay for the rights to grow marijuana and produce marijuana infused products. Issue 3 creates a structured cartel (the “Columbus Cartel”) to ensure profits above those created by a free market. Should we ever have legalized marijuana, the market would have to be licensed and regulated. The primary problem with Issue 3 is that it uses the State Constitution to destroy all semblance of enterprise freedom. The proposed Columbus Cartel will be 10 druglords officially sanctioned and written into law through the Constitution. The Ohio State Constitution is going to be manipulated by a special interest to the detriment of Ohio businesses and citizens if Issue 3 passes. Issue 3 is crony capitalism at its worst. It must have been challenging to write a proposal for the legalization of marijuana that could be opposed by the Libertarian Party of Ohio, but issue 3 has done just that.

The creators of Issue 3 actually had the moxie to write the level of taxation of the industry right into the Constitution!

Create a special tax rate limited to 15% on gross revenue of each marijuana growth, cultivation, and extraction facility and marijuana product manufacturing facility and a special tax rate limited to 5% on gross revenue of each retail marijuana store. Revenues from the tax go to a municipal and township government fund, a strong county fund, and the marijuana control commission fund.

More in depth information on taxation is included in the full amendment.

Issue 2 is an attempt by the state legislature to stop initiatives that utilize the Ohio State Constitution to operationalize business plans. The first statement on the ballot text of Issue 2 reads:

Prohibit any petitioner from using the Ohio Constitution to grant a monopoly, oligopoly, or cartel for their exclusive financial benefit or to establish a preferential tax status.

Issue 3 proposes to create the Columbus Cartel to ensure that a group of investors who have paid for a very slick pro-marijuana legalization advertising campaign in Ohio will be able to reap excessive oligopolistic profits into the indefinite future. Issue 2 attempts to thwart not only Issue 3, but also future attempts to misuse the Ohio constitution in this manner.

This week marks “the future” for the movie enterprise: Back to the Future. In the second installment in the trilogy, Marty goes forward into the year 2015.* In 30 years, what would a visitor from the current day find in the state of Ohio? The vote on Issue 3 will help determine the cultural landscape we leave to our children.

 

*Hopefully, the comparisons between Biff and Donald Trump are purely coincidence :).