Cannabis could become legal in New Mexico

SANTA FE, NM (AP) – A panel of lawmakers examined the economic uncertainties surrounding the legalization of recreational cannabis and thorny public health concerns on Wednesday, ahead of a legislative session that could pave the way for recreational cannabis in New Mexico.

The legalization task force convened by Democratic Governor Michelle Lujan Grisham is proposing regulations that would cap local taxes on recreational cannabis at approximately $171 and issue production licenses for only 500 plants per month, with additional fees per plant.

Medical cannabis would not be taxed and would be sold separately at all dispensaries, with the aim of ensuring affordable access for patients suffering from conditions such as nausea and cancer-related pain. Approximately 78,000 people participate in the medical program in the state.

At a public hearing, lawmakers heard from Sarah Stith, a professor of economics at the University of New Mexico, who expressed opposition to legalization measures that could make retail prices uncompetitive, either through supply restrictions or excessive taxation.

«You can’t raise taxes too high, or consumers will turn to the black market,» she said.

The chair of the working group, Pat Davis, a member of the Albuquerque City Council, told lawmakers that he expects more than $50 million in tax revenue from adult-use cannabis sales, and at least $94 million once the market stabilizes in five years.

He highlighted the economic development potential of rural farming communities and the possibility of setting aside a $5 million fund for local law enforcement and public safety measures, such as clearly identifiable labeling of products containing THC, particularly to prevent children from accessing them.

None of them convinced Republican State Representative Martin Zamora to move forward with legalization. He opposed new duties being imposed on law enforcement, stated that cannabis producers would not be immune to economic losses, and raised the possibility of a pregnant woman using cannabis.

«I could stay here and scream all day, and I intend to do just that when it comes to the legislation,» Zamora said. «I just want more factual, scientific, and medical information—presented in a more straightforward way.»

In response, Representative Antonio Maestas of Albuquerque stated that when it comes to cannabis, «prohibition simply doesn’t work.».

A bipartisan bill on legalization passed the House earlier this year before moving on to the Senate. Both chambers are controlled by Democratic majorities.

Democratic Senate President Mary Kay Papen said Wednesday that she was «not exactly enthusiastic» about the prospect of legalization but that she might change her mind.

Papen, who is facing a challenge in the Democratic primary, said that a significant portion of the tax revenue from cannabis sales should be allocated by the state to healthcare spending.

Lawmakers led by Democratic Representative Javier Martinez of Albuquerque are currently drafting a bill on legalization for the 2020 state legislative session, which is limited to 30 days starting in January.

Lujan Grisham expressed her own concerns about recreational cannabis use, road safety, workplace safety, and children’s access to these products.