SAN FRANCISCO — California cities and counties could conceivably issue clouds of bonds backed by more than $1 billion a year in marijuana-related tax revenue if Proposition 19 passes Tuesday, transforming a decades-old pipe dream into reality.

Prop. 19 would legalize marijuana under California law, but not federal law, permitting local governments to tax commercial production, distribution and sale of the drug in the Golden State and allowing anyone over 21 to grow, sell and smoke pot. The option comes at a time when California is beset by funding shortfalls.

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