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Is 2020 a High Point (Or Low One) For Cannabis Tech? NORML’s Political Director Weighs In

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So … 2020: Politically speaking, is the new year a high or a low point for cannabis companies? On one hand, 33 states and the District of Columbia have legalized weed in one way or another. And 11 states and D.C. have even legalized it for recreational use.

What’s more: A legislative bill is advancing in the U.S. House that would federally decriminalize and de-schedule cannabis and incentivize states to do the same. Plus: Legislation has passed the House to protect banks that provide services to legal cannabis companies.

Yet on the other hand, there’s a downturn in the markets of California and Canada (due to what some describe as their artificially overheated conditions). And, nationwide, overall, confusing, conflicting regulations prevail.

Then there’s the persistence of negative views about cannabis, exemplified by this week’s CES ruling that the company KEEP (which makes a phone app-controlled lock box for one’s consumer cannabis stash) would not be permitted to use the word “cannabis” on the exhibitors’ floor — causing KEEP to withdraw from CES altogether. Ironically this decree came mere months after CES actually honored KEEP with its Innovation Award.

Say what?

For insight about where cannabis companies are at the inception of this new year, we reached out to Justin Strekal, political director of NORML (the National Organization for the Reform of Marijuana Laws). And the first thing we learned was that Strekal doesn’t actually consider that CES prohibition against KEEP a reflection of widespread narrow mindedness about cannabis. So we asked why …

Justin Strekal: It reflects the narrowness of the feelings of the small group of people that made the decision to discriminate against that company. I wouldn’t extrapolate a broader narrative out of that one isolated incident or just a few anecdotal instances. This is a huge societal shift, so a couple of anecdotes here and there … are just that – anecdotes.

Anecdotes aside, then, what were the biggest concrete developments that occurred in cannabis politics in 2019?

Justin Strekal: I would say the biggest developments [included] legalization in Illinois, the first state to legislatively legalize marijuana. The SAFE Banking Act passing in the House of Representatives in September. The MORE Act [the Marijuana Opportunity Reinvestment and Expungement Act of 2019] passing the House Judiciary Committee, becoming the first bill to end prohibition to pass out of that committee.

How far does it still have to go to get to the floor?

Strekal: It was assigned to eight committees, and just last night it was reported that the Small Business Committee advanced it, so it has six more committees to go. Then I would say just the increase in public support [is a positive sign]. If marijuana legalization was not working, if marijuana legalization had significant negative consequences, then we wouldn’t continue to see year-over-year increased public support. That’s the biggest development.

Any important lawsuits?

Strekal: I don’t do industry work; my focus is on impacts on individuals. But last year we saw the trend continue: more and more courts are evolving to rule on the side of individual freedoms when it comes to marijuana. The biggest case was out in Arizona: a case regarding concentrate and whether or not the state could ban concentrates. [Opponents] were victorious in challenging the state and striking down that ban.

Anything on the tech side of cannabis to talk about?

Strekal: One thing I find troubling is the emergence of tech companies claiming to have cracked the code on marijuana breathalyzers. It’s important to keep in mind that while there are many aspects of public policy and intoxication portfolios that can be analogous with alcohol, impairment is not one of them that can be detected by a breathalyzer. There is no way to develop a system [where alcohol is concerned] with the conclusion that at “point 0.08” for the most part the overwhelming majority of Americans would be legally intoxicated. There’s no core finding on the threshold for marijuana.

And now these tech companies are out here saying they’ve developed a breathalyzer and that you could hypothetically consume marijuana right now, two hours later get a positive on that test — and you are in no way, shape or form intoxicated at all. And should state lawmakers choose to purchase these products and equip law enforcement, we could see some potentially devastating consequences when it comes to how it impacts consumers.

Any other tech developments you’d mention?

Strekal: I would say the evolving technology of vaporizers. Particularly the low-quality technology we’re seeing coming out. The way that the heating coils can have different impacts on the concentrate; the cartridges themselves can have trace amounts of heavy metals that will then get mixed in with the concentrate. So, there’s a need to make sure that products have standards and systems in place for consumers.

Has there been progress? Is the federal government poised to regulate these products?

Strekal: No.

So … your predictions for 2020?

Strekal: The best-case scenario for 2020 has to be realistic – we don’t expect [Senate Majority Leader] Mitch McConnell to take up the MORE Act this year. We would love him to, but he is a staunch prohibitionist and wants to maintain federal criminalization. But it is entirely plausible that the Senate would advance the Safe Banking Act [and] the full House would pick up and pass the MORE Act.

What about cannabis companies organizing, because there’s strength in numbers?

Strekal: There is a growing number of federal lobbyists representing the cannabis industry, either through a growing number of trade associations or through companies hiring more traditional lobby shops. That was a strong contributing factor why we saw the Safe Banking Act pass through the American Bankers Association and the National Bankers Association and the credit unions all come out in favor. But unlike other industries, we’ve yet to see one clear lobby group emerge as the standard bearer. The closest would be the National Cannabis Industry Association. But it’s a very fractured time because we’re in a very basic stage of what a legal industry is.

Final thoughts?

Strekal: The new FBI Uniform Crime Report that was issued – with 2018 data – came out and showed for the third year in a row the number of arrests for Americans for marijuana-related charges had increased despite more and more states reforming their laws and legalizing.

That’s surprising. What do you attribute it to?

Strekal: I refer to it as the death rattle of prohibition. Law enforcement very much appreciates the ability to use the fictions of marijuana as a reason to enter into an interaction with [defendants], so it’s “use it before you lose it.” And it’s really unfortunate because the people who disproportionately are arrested, targeted, searched and have their houses raided are lower income and are people of color.

The conversation has been edited and condensed for clarity.