The problem with hardcore drugs is that they are way more addictive than other substances. They've destroyed a lot of lives and a lot of families. And rehab is a long and difficult process already. Even with regulated sale of these drugs, I can't see how it would reduce addiction and drug related crime.
Also, in your system, I'd put #2 a lot higher up. Supplying hard drugs to minors should carry a very strong penalty.
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Good points, and as for 2 like I said, the levels aren't right but tweaking couldn't hurt.
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Check out Vancouver, Canada. THAT is what we should be basing our hard drug policy off of.