Thursday, March 04, 2021

Legal Pot Still In A Legislative Pothole; The Man At The Center Of The Storm As Lawmakers Face Major Hurdles And A Ticking Clock

Duke Rodriguez
The drive to legalize recreational marijuana has hit a major pothole that could end up being its graveyard when the legislative session concludes March 20. How can that be when 61 percent of the public polled supports legalization and there's a bunch of new progressive Democrats in the legislature as a result of last year's election? Let's take a look. . . 

The finger-pointing over this train wreck has already begun and Duke Rodriguez, a trailblazer of NM medical marijuana, is where the fingers are pointed.

The wrap on Rodriguez, president and CEO Of Ultra Health, the dominant medical marijuana producer in a state with now nearly 105,000 users, is that he's also trying to dominate the new recreational market and his insistence is blocking legal pot in Santa Fe.

Medical marijuana is a $200 million year industry. Rodriguez recently told the NM Press Women that the legal pot market in NM could be upwards of $800 million a year, a stunning number in a state of just 2 million people and signaling the immense profits that are at stake. From Ultra Health

 Combined patient sales from the 34 licensed producers in New Mexico’s Medical Cannabis Program totaled $55 million for the third quarter of 2020, an increase of $21 million or 62% over reported patient sales in the third quarter of 2019. Ultra Health topped all producers in the quarter with $12 million in patient sales. 

Sidebar from the newspaper in 2016:

 (Ultra Health is not one of the state’s 35 licensed nonprofit producers authorized by the New Mexico Department of Health to grow and sell medical marijuana. Instead, Ultra Health owns and manages the growing operation and several dispensaries under an agreement with a licensed nonprofit producer. Such management agreements between licensed nonprofit producers and for-profit management companies are becoming the norm in New Mexico.)

The key point of contention is whether there should be a limit on how much marijuana a licensee can produce. Rodriguez supports unlimited production but opponents of that provision contained in HB 12--the main legalization vehicle--argue it could lead to a huge over supply that could end up in the black market and ruin the legal pot program.

They point to Oregon where legal pot began with no production caps but because of over supply the black market flourished and the state slapped on caps.  

Rodriguez argues there should be no "arbitrary plant limits that would limit the overall industry’s performance."

Senate tax committee chairman Benny Shendo entertained debate on four legalization bills Saturday and in the end ordered the bickering parties to seek a compromise over production and other items holding up the bill. But there is little movement and, according to Roundhouse insiders, if there isn't a deal on production limits, legalized marijuana is probably dead. 

SOCIAL JUSTICE ISSUE

There's also the issue of expungement. HB12, passed by the full House on a 39-31 vote vote and now the subject of intense wrangling in the Senate, provides for expungement of records of people arrested for violating the state's current marijuana laws. The American Bar Association explains

(Expungement) is the process by which a record of criminal conviction is destroyed or sealed from state or federal record. An expungement order directs the court to treat the criminal conviction as if it had never occurred, essentially removing it from a defendant’s criminal record as well as, ideally, the public record.

HB 12 sponsor Rep. Javier Martinez doesn't see a problem but various law enforcement and district attorneys say a separate bill is needed. There's also contention over who would sit on the cannabis regulatory board established in the bill. 

ANOTHER ROADBLOCK?

Yet another potential roadblock is conservative Senate Finance Committee Chairman George Munoz. He says he's concerned about provisions that could fall under his committee's purview and whether the bill must go before his panel as well as the Senate tax and judiciary committees. A triple referral for a bill is often called the "kiss of death."

As you can, see there's a bundle of trouble to overcome. 

MLG POSITIONING

The Governor has not been getting her hands dirty. Sources say she has signaled that a bill that does not have production caps is a nonstarter but she does not have a heavy hand in the negotiations, even though some pot advocates are grumbling over that.

Further complicating the debate is the fact that the House Speaker Brian Egolf, who helped shepherd HB 12 through the House and key Senate player Jacob Candelaria, who is also against production caps, are both employed as private attorneys by Rodriguez. That's permitted in a citizen legislature but that doesn't mean that the Rodriguez foes don't point to it as evidence that Duke is the power behind the scenes.

Rodriguez is a big donor to political campaigns, including MLG, who has been a favorite of the cannibas industry for her legalization support.

Over two weeks remain in Session '21 and that's a long time for surprising developments. But the surprises better start soon or it will be the 61 percent of the public who want legal pot who will end up being most surprised. 

ED SANDOVAL

Ed Sandoval
Former longtime ABQ Dem North Valley State Rep. Ed Sandoval succumbed to Covid Wednesday after a better than two month hospital stay. The 74 year old was appointed to the state Senate and served two years there in the 1970's. He was first elected to the House in 1983 and served until his retirement in 2015. He was known for chairing the House taxation committee. House Speaker Egolf said: 

 I am deeply saddened by the loss of Ed Sandoval, who was as kind, thoughtful, and caring as any person ever to serve in state government. Chairman Sandoval’s legacy is seen in communities with clean water, safe streets, and modern school buildings. He had a sense of humor and joy that was infectious; the halls of the legislature seemed silent without Ed’s laughter filling its rooms.

LARRY WILLARD

Larry Willard
Larry Willard was a star businessman in ABQ and NM in the 80's and 90's, so much so that he was often urged to run for Governor or another elective office. He never did but the former president of Wells Fargo bank and a power player supreme cast a wide net during this state's go-go years. He died in Midland, Texas this week at the age of 78. 

The remembrances include the words "tireless "inspiring" "an outstanding citizen. He was all that and more. Willard, a Texas native who group in Roswell, did so much and was so omnipresent in his day in ABQ that we were surprised to hear he was only 78 when he passed. His presence was notable and his absence from the biz scene even more so. . .

THE BOTTOM LINES

ABQ Dem Rep. Deb Haaland is expected to win confirmation as Secretary of Interior from the Senate energy committee in DC today and then it's on to the full Senate for another vote of approval, expected at the middle of this month. GOP Sens. Susan Collins and Lisa Murkowski now say they will vote for Haaland, helping to ensure her appointment. . .We blogged that MLG had $351,000 in her campaign account as of last October. The correct number is $241,000. 

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(c)NM POLITICS WITH JOE MONAHAN 2021