Californians consume between $870 million and $ 2 billion worth of medical marijuana per year, according to a report to Oakland's Measure Z marijuana policy oversight committee. The report projects that the state could receive some $70 million to $120 million in sales tax revenues alone if medical marijuana was taxed legally like other herbal medicines.

At present only a portion of the state's 200-plus medical cannabis dispensaries pay sales taxes. In principle, medical cannabis is subject to sales tax under current Board of Equalization rules, which exempt only drugs dispensed in licensed pharmacies by a physician's prescription. However, many patients' groups contend that sales tax shouldn't apply to non-profit cooperatives and collectives.

A substantial portion of medical cannabis sales remains off the books due to the continued illegality of marijuana under federal law, which discourages accurate reporting. Despite this, a growing number of communities, led by Oakland, have begun to legally regulate and license medical cannabis sales through dispensaries. Although federal officials have sought to portray dispensaries as criminal enterprises, most have lawfully complied with local regulations like other legal businesses.

According to the Oakland business tax office, the city's medical cannabis dispensaries reported $26 million in revenues in fiscal year 2004. Revenues declined dramatically to just $5 million in FY 2006 after the city forced all but two of the city's cannabis clubs to close. Revenue is expected to rebound this year, as two new clubs have opened. The report estimates that potential revenues from medical dispensaries in greater Oakland could range as high as $64 million. Oakland's cannabis clubs pay the city an annual licensing fee of $20,000 plus a business tax of 0.1% on revenues.

In addition, many dispensaries pay substantial payroll taxes. A Modesto dispensary, California Healthcare Collective Inc., reported paying $93,000 per quarter in federal IRS taxes, $25,000 per quarter in state payroll taxes, and $50-60,000 per month in sales taxes before being raided by the DEA. Closure of the club has deprived the public of over $1 million in tax revenues per year.

It is estimated that between 150,000 and 350,000 Californians have a physician's recommendation to use marijuana. Because California does not have a comprehensive patient registry, these numbers are based on projections from physician surveys and data from other states. Medical users represent around 10% of the state's total marijuana-using population. Average consumption is around one pound per patient annually.

The marijuana used by California patients is entirely locally grown. However, due to steep federal penalties against cultivation, growers operate underground completely unregulated and untaxed. Prop 215 advocates have long sought to establish licensed production of medical cannabis to assure pharmaceutical purity and quality, but have been rebuffed by federal agencies intent on keeping marijuana illegal.

California NORML supports changing federal law so the state can legally regulate and tax commercial production and distribution of medical cannabis. A bill to allow states to regulate medical marijuana has been proposed by Rep. Barney Frank in recent sessions of Congress.

Advocates argue that it makes better economic sense to legally regulate and tax marijuana than to criminalize it. State taxpayers currently spend over $160 million per year to arrest, prosecute and imprison marijuana offenders. Altogether, Californians consume nearly $6 billion of marijuana per year. California NORML estimates that the state could net some $1.5 - $2.5 billion per year by legalizing marijuana for general adult use: .

California voters have shown growing interest in legalizing marijuana. In 2004, Oakland voters approved Measure Z, calling on the state to "tax and regulate" marijuana for general adult use, by 65%-35%. Last November, similar measures were approved by the voters of Santa Cruz and the San Francisco Board of Supervisors.

Marijuana (THC), Cocaine "Crack", PCP "Angel Dust", Opiates (Heroin, Codeine, Morphine), Amphetamines and Methamphetamines. Barbiturates: Phenobarbital (Donnatal), Seconbarbital (Seconal), Amobarbital, Pentobarbital (Nembutal), and Butalbital (Fiorinal or Fiorcet). Benzodiazepines: Diazepam (Valium), Oxazepam (Serax), Chlordiazepoxide (Librium), Chlorazepate (Tranxene), Temazepam (Restoril), Alprazolam (Xanax), Triazolam (Halcion), Lorazepam (Ativan), Prazepam (Centrax), Methadone, Propoxyphene (Darvon or Darvocet).

Rikei Corporation (Head Office: Shinjuku-ku, Tokyo, President & CEO: Katsuei Aoyagi) is pleased to announce that Rikei has concluded an agreement with Mistral Group based in Israel, starting to sell their "portable and easy to use" Explosives Detection Kits and Drug Detection Kits in Japan.

These detection kits are available in either spray-type or solution-type, and when they are blown onto a very small amount of residues of explosives or drug collected on a collection paper sheet, color-change reaction is immediately observed if the result is positive, allowing you to determine presence or non-presence of explosives or drugs and also their types. As these kits are light-weight portable types, anybody can easily hand-carry them to any place and any time for immediate detection and identification of explosives or drugs. Price per set which allows you to conduct more than 100 times of tests to determine presence or non-presence of multiple types of explosives or drugs is about Yen 70,000. We believe this price is very inexpensive when you consider the effect of the products. For this reason, these products are highly recommendable for the first stage investigation which requires the test results immediately at the investigation front.

The test kits which are released this time are as follows.

Explosives Test Kit:

Available in two types, Spray Type "EXPRAY" and Solution Type "DROPEX"

Types of explosives which can be detected:

• Group A Explosives: TNT, DNT, etc.
• Group B Explosives: Nitroglycerine, Semtex, etc.
• Inorganic Bomb: Nitrate based improvised explosives, Gun Powder, etc.
• New Inorganic Bomb: Chlorate based improvised explosives, TATP(Tri Aceton, Tri Peroxide) etc.

Drug Test Kit

Spray Type

Types of Detectable Drugs:

• Set of four sprays, each of which is designed to detect Hashish or Marijuana, Cocaine, Heroine or Amphetamine, and one single spray ("D4D") which is capable of detecting all these drugs.

Mistral Group based in Israel is a unique manufacturer that is specializing in chemical color-change reaction technologies, supplying these test kits to the U.S.A. and Europe. The U.S. Army is using the company's explosives test kits in Iraq, and legal authorities, police forces and customers of many countries are using their explosives and drug test kits.

Rikei believes the use of these kits is very effective for the need to detect explosives as a part of Japan's strengthened anti-terrorism efforts as well as a part of activities related to the sprit of the People Protection Law and also for the need to detect drugs to prevent young people from getting addicted to drugs. In view of such circumstances, Rikei plans to promote and sell these kits mainly to police stations across Japan, Japanese customs and the Self-Defense Force with a sales plan of about Yen 20M for the initial one-year period.