Is Marijuana Legalization Inevitable In The US? - YouTube

Channel: CNBC

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Cannabis has a complicated history in the United States.
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It is only through enlightenment that this scourge can be wiped out.
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They both smoke pot. That's jive talk for marijuana
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People who push drugs must be put in jail for a minimum of 50 years.
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Someone caught, even with a small amount, can be sent to prison.
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President Carter today came out for an end to all federal criminal
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penalties for the possession of up to one ounce of marijuana.
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Marijuana could very well be the most dangerous threats to an entire
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generation of Americans of any drug that we know.
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I experimented with marijuana at the time or two, and I didn't like it and
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didn't inhale and never tried it again.
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Sentiment about cannabis in the U.S.
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is tied up in feelings about public health, race, crime and morality.
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And that complicated relationship makes the rapid change in public
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sentiment toward decriminalizing and legalizing the drug even more
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surprising. Every ballot initiative involving the decriminalization or
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legalization of marijuana passed in the 2020 election.
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Voters in New Jersey, Arizona and South Dakota chose to legalize marijuana
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for adult recreational use.
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South Dakota and Mississippi voted to legalize medical marijuana use.
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That means 15 states, along with the District of Columbia, have legalized
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marijuana for adult recreational use.
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And 36 states and D.C.
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permit medical use of the drug.
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Now, a third of the country lives in a state where medical marijuana is
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legal, with eight Republican senators representing legal cannabis states.
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Additionally, the Democratic controlled House of Representatives just
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passed the Marijuana Opportunity, Reinvestment and Expungement Act or the
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MORE Act. The bill would legalize marijuana at the federal level and
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implement sweeping regulations and reforms surrounding the drug.
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The 2020 election and the House vote reveals something important about the
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shift in the marijuana debate.
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Marijuana may be one of the few truly bipartisan issues in the United
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States right now, with 91 percent of Americans saying it should be legal
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for medical use, including nearly six in 10 Americans favoring
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legalization for both medical and recreational use.
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Despite the long road marijuana had in the U.S..
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Legalization advocates think the government may be on its way to be
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scheduling the drug after 50 years of it being criminalized at the federal
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level. Here's how the U.S.
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ended up with a web of contradictory marijuana policy and where the law
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might be headed from here.
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There has been a lengthy history of cannabis in the United States that has
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generally followed two tracks, medical and recreational.
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By the late eighteen hundreds, there were a wide number of medicinal uses
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for cannabis. People used it as a pain reliever to treat nausea and even
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to soothe the gums of teething babies.
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Its role as a recreational substance is about 100, 120 years old when
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migrants fleeing the dictatorship of Porfirio Diaz in Mexico came to the
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U.S. and started settling along the U.S.
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Mexico border.
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The migrants were able to recognize cannabis use as a recreational
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substance, which was very different than how Americans had been using the
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drug. And of course, this becomes immediately an issue because it is a
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minority population that is currently being demonized during this period.
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Nearly every state west of the Mississippi River past anti marijuana
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legislation, and by 1933, about 30 states had outlawed marijuana for
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non-medical use.
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Congress passed the first federal law that addressed recreational marijuana
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use in 1937 called the Marijuana Tax Act.
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It didn't specifically outlaw cannabis.
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Instead, it required anyone who grew distributed or used marijuana to
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register with the federal government and pay a small tax.
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What essentially that allowed the federal government to do was to collect
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the names and identifying information of everyone who is involved in the
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cannabis trade, making it easier to keep an eye on them and essentially
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allow the government to survey their activities.
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In the 1940s, World War II made hemp patriotic.
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The military needed it to create rope and other useful materials.
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With the end of the war, measures to crack down on weed ramped up again.
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And with the counterculture of the 60s, it became a symbol of protest.
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When Richard Nixon entered the Oval Office in 1969, he made drug
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prohibition one of his main priorities, culminating in the Controlled
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Substances Act of 1970, which created a scheduling system for drugs.
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The system is based on two criteria the drugs, medicinal value and the
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drug's potential for abuse.
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Schedule one drugs are considered to have no medical value and high
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potential for abuse.
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The legislation gave the control of determining which schedule drugs
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should fall under to Nixon's attorney general, John Mitchell, rather than
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to a doctor such as the surgeon general.
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When Nixon and Mitchell, both of whom were adamantly opposed to marijuana
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use because they saw it tied to the counterculture civil rights movement
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and the uprisings of the 60s when they tried to put cannabis into Schedule
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one, they had a hard time convincing Congress that that was where it
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should go in order to reach an agreement with Congress.
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They said they would form a commission to study marijuana in the U.S..
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Nixon and Mitchell subsequently classified marijuana as a Schedule One
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drug alongside heroin, LSD and ecstasy, while the commission, which came
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to be known as the Shafer Commission, set about studying marijuana.
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The report ended up contradicting that decision, determining after a two
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year examination of marijuana users that the drug did not cause the
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concerned side effects such as a lack of motivation or increased
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aggression. Nixon refused to accept these findings and kept marijuana
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classified as a Schedule one drug.
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But the commission's report didn't go unnoticed.
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It became available to the public, and many activists took it upon
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themselves to work to decriminalize the drug at the state level.
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Between 1973 and 1978, a dozen states across the country decriminalize
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marijuana, essentially making possession of up to an ounce of cannabis,
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the equivalent of a parking violation.
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But the decriminalization came to a crashing halt in 1978 when concerned
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parents began pushing back.
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As decriminalization spread across the country, so too did additional
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industries that aided in the consumption of this decriminalized drug
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paraphernalia magazines, movies, music.
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So a lot of the products were available to children.
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And that was the crux of the problem.
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In the late 90s, public sentiment surrounding marijuana use began to turn.
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In 1996, California became the first state to legalize cannabis for medical
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use, and in 2012, Colorado and Washington became the first states to
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legalize marijuana for adult recreational use.
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15 states and D.C.
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have followed suit since then, culminating in the major wins for the
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legalization movement in 2020.
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The conflict between federal and state laws pose challenges to cannabis
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businesses operating legally at the state level.
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One of the biggest issues for businesses is a lack of access to banking
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services, as well as the inability to get loans.
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Anyone running a legal cannabis business, according to state law, is still
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considered a criminal at the federal level.
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That means banks, including state chartered ones, are at risk of federal
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regulators deciding that the financial institutions are violating money
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laundering laws. This means multimillion dollar businesses have to
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function largely as cash only enterprises.
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A big shift for the cannabis industry came when the Justice Department in
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2013 issued what is referred to as the Cole memorandum.
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The memorandum provided a set of criteria for states operating
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recreational and medical cannabis programs, such as preventing diversion
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to the black market and protecting minors and other vulnerable populations
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from accessing cannabis products.
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The Department of Justice had a policy that if states could meet these
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standards, it would not enforce federal marijuana law in those states.
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In January 2018, Attorney General Jeff Sessions during President Donald
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Trump's administration rescinded the Cole memorandum.
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After the recession of the Cole memorandum, every single U.S.
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attorney in each state actually still abided by that same criteria that
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was included in the Cole memorandum because it was good policy and it made
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sense and it just wasn't feasible to enforce federal
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law in the way that anyone in the Trump administration had threatened to
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do. The criminalization of cannabis has led to a large number of people
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being charged and incarcerated for possession or trafficking of the drug.
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Pew Research Center found after analyzing data from the FBI that four in 10
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U.S. drug arrests in 2018 were for marijuana offenses.
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A 2020 ACLU analysis of FBI crime data found that despite an increasing
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number of states legalizing or decriminalizing marijuana, law enforcement
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made at least half a million marijuana arrests in 2018, more than for any
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other drug. The report also found that Black Americans were nearly four
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times more likely than white Americans to be arrested for marijuana
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possession, despite the two groups using the drug at the same rates.
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Between 2010 and 2018, marijuana arrests in the United States trended
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downward slightly but rebounded at several points.
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As of 2018, the national downward trend appears to have leveled off, even
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as the number of states that have legalized or decriminalize marijuana has
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increased. Maritza Perez is the national affairs director for the Drug
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Policy Alliance, a nonprofit that advocates for complete legalization of
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marijuana. It continues to be one of the main drivers of drug arrest -
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marijuana possession, that is, and marijuana use.
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It continues to be a driver of deportations.
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So it's a major criminal justice issue that really has lifelong
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consequences for people with convictions.
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But some have expressed concerns around legalization for recreational use.
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Kevin Sabet is the president and CEO of Smart Approaches to Marijuana, a
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nonprofit organization that opposes the commercialization and non-medical
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legalization of marijuana.
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So I think there's been a false dichotomy over the last 20 or 30 years that
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pits legalization against incarceration or the war on drugs, as if those
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were the only two options we have for drug policy or for marijuana policy.
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And I think the reality is there are far more innovative, cost effective,
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interesting policies that frankly are much more in the middle and don't
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fall into the trappings of either, you know, criminalizing especially
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certain groups that are disproportionately affected or on the other hand,
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glamorizing, normalizing and commercializing today's very high, potent
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marijuana, you know, sold by Big Tobacco, Big Alcohol and Big Pharma.
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And we all sort of know how that movie ends with those industries.
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Why would we want to have marijuana follow the same suits?
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We think that in order to really have a framework around drug policy that's
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built in equity, you need to account for the legalization component
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because legalization often means that you're regulating the drug.
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So decriminalization is great at the start.
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But, you know, I think full legalization is really how we get issues
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surrounding equity. I personally believe our goal should be to discourage
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use, not encourage use.
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It's hard to discourage use if there's a pot shop on every corner and
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selling really nicely looking glamorous items that promise the world in
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terms of how they make you feel, etc..
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I think people need to realize that the interest that big tobacco and big
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alcohol have in the marijuana industry.
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This isn't about Cheech and Chong or mom and pop stores.
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This is about a major industry that is being taken over by the alcohol
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industry and by the tobacco industry.
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So I just don't see how this is going to be helpful for anybody when these
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big interests take over.
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The needle has moved enough on public opinion that the House of
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Representatives made the historic move toward legalizing marijuana at the
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federal level with the passage of the more act, the more act would not
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only remove marijuana from the list of controlled substances, but would
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also address criminal justice reform by allowing the expungement and
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resentencing of marijuana convictions.
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The legislation would also tax the marijuana industry in order to fund
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social programs that would invest resources into communities that have
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been most impacted by marijuana prohibition.
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And the taxes would also provide support to underrepresented communities
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trying to enter the cannabis industry.
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Even if marijuana legalization and decriminalization seem like bipartisan
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issues at the ballot box, Republican and Democratic lawmakers in
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Washington still seem far apart on the issue.
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The MORE act passed in the House along party lines, with five Republicans
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voting in favor of the bill and six Democrats voting against it.
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To me, I don't really take that as an indicator of, you know, Republicans
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being against the policy itself.
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I think a lot of them behind closed doors will say that they think that we
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need to legalize marijuana.
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I think the problem with many Republicans in terms of MORE Act
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specifically, they are reluctant to impose a five percent and then eight
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percent tax. And then there are various aspects of the bill that they
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would want to amend because it provides too much regulatory oversight by
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the federal government. The MORE Act couldn't be passed during the regular
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session of Congress because it's so controversial.
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So it was passed during the lame duck session, but I don't really see this
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as having much momentum going forward with the new Congress.
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There are still many Democrats that are uneasy with the idea of the MORE
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Act. And I think there are ways where we can decriminalize marijuana
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without opening up with the MORE Act to do, which is create a new huge for
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profit industry.
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It was pure, unadulterated, for profit, really irresponsible and reckless,
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full legalization of high THC products.
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So I don't really see it going forward further than it already has.
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The MORE Act is not expected to be taken up by the Senate this term.
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But Perez still thinks the passage of the bill in the House sets a
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precedent for policy advocacy going forward.
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We knew that this would you know, there's no way that this is going to go
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through the Senate this year. But that wasn't the goal.
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The goal was to have a marker bill where the House of Representatives had
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to take a vote on this issue and we can see where they landed.
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Also, we wanted to just let it be known that if it's not the MORE Act, if
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it's less than that, like it's just not a marijuana bill that Congress
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should be wasting their time on.
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President elect Joe Biden and Vice President elect Kamala Harris might
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disagree on marijuana policy.
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Biden has said that he is in favor of decriminalizing the drug and has
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embraced legalization for medical use.
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He has not come out in favor of legalizing marijuana for adult recreational
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use at the federal level and prefers to reschedule the drug rather than
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descheduling it entirely.
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Harris, however, sponsored the MORE Act in the Senate and has taken a much
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more progressive stance on marijuana legalization.
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When Joe Biden picked Kamala Harris, I know that he knew what she stands
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for. He strategically made that pick because I think that he feels like he
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has a lot of work to do, at least on the criminal justice end, given his
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background on those issues, as I do think that she could perhaps push him
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on this issue, if not at least begin to educate them.