By Rachel Sapin / Albuquerque Business First
Published on December 22, 2016
A Democrat-controlled state legislature in 2017 has some Democratic lawmakers hopeful that recreational use of cannabis could become legal in New Mexico.
Duke Rodriguez, owner and CEO of Ultra Health LLC, one of the state’s 35 licensed nonprofit medical cannabis producers, is also optimistic about that. He said the state’s more liberal political climate along with a fast-growing consumer base could make 2017 the year the “green rush” goes all the way in New Mexico.
Rodriguez said he is confident that even if Gov. Susana Martinez vetoes any measures by the state’s lawmakers to make recreational cannabis legal, a constitutional amendment that would let voters decide has a good chance of passing this year in light of the state’s $69 million budget deficit for the current fiscal year.
“Republican and Democratic legislators have both said in the current environment, everything is on the table. That includes cannabis,” he said.
Following news that legalized marijuana accounted for nearly $1 billion in sales and $135 million in sales-tax revenue in Colorado in 2015, California, Massachusetts, Maine and Nevada passed ballot measures legalizing the recreational use of marijuana, bringing the total number of states allowing recreational use to eight.
Rodriguez said Ultra Health is expecting New Mexico’s medical marijuana industry to expand next year, thanks to new legislation. He said this year, he anticipates the state could allow medical marijuana producers to grow up to 4,500 plants. The state currently only allows producers to grow up to 450.
“That we’re fully anticipating and preparing for,” Rodriguez said.
He said if the plant count goes up for producers, he expects the state’s medical cannabis program to double in size.
According to the New Mexico Department of Health, there are 32,840 medical cannabis card holders in New Mexico. In 2013, that number was about 10,000, and the Albuquerque Journal reports that a year ago, there were 14,000 card holders.
Other players in the field are expanding too. This year the Verdes Foundation, which employs roughly 40 people, opened its second location in Rio Rancho. With over $1 million in total receipts as of July, The Verdes Foundation averages 250 clients per day.
Though several states near New Mexico have already legalized recreational use of cannabis, Rodriguez said New Mexico is not too late to benefit from legalization.
“Within one gas tank of New Mexico’s borders, you have a large population of Texans waiting for legalization in New Mexico,” he said. Texas has a a limited medical marijuana program that allows for the legal use of oils containing CBD.
Rodriguez cites a September study by by economist Kelly O’Donnell that estimates the industry could bring in $412.5 million in annual revenue in the first year of legalization, with more than 40 percent of this new revenue coming from out-of-state tourists who buy marijuana while visiting New Mexico.