Marijuana

A Senate committee discusses legalization of recreational marijuana

SANTA FE — A Senate committee had plenty of tough questions Wednesday after hearing a presentation from supporters of proposals to legalize recreational use of marijuana in New Mexico. But they had a few laughs, too. Sen. Pat Woods, R-Broadview, drew a few chuckles when he asked pointblank: “What’s a joint cost right now on the street?”

No one in the audience seemed willing to admit knowing the answer, and there were a few jokes about the price depending on the size of the joint.

But Sen. William Sharer, R-Farmington, offered his own estimate, which he took care to point out came from Google, not personal experience. A joint costs about $4 to $5, he said, assuming marijuana costs $229 per ounce.

The point the two Republicans seemed to be making was that taxing and regulating marijuana might make legal joints more expensive than illegal ones, undercutting the benefits of a legal market. They raised a variety of public safety-focused concerns, too.

Economist Kelly O’Donnell told the Senate Corporations and Transportation Committee that she estimated a $412 million market in New Mexico for legal recreational marijuana. It could create 11,000 new jobs, she said.

And there’s potential to draw tourists or buyers from out of state, at least early on, before more and more states also make it legal, O’Donnell said.

She said it’s important to create a reasonable regulatory system that isn’t so costly that it drives up prices.

O’Donnell didn’t estimate for the committee the potential tax revenue that could be generated or what taxes should be imposed.

“I’m an economist — there’s a downside to everything,” she said, “but I don’t know what it is.”

Sharer, in turn, said New Mexico should make itself a leader in energy production — wind, solar, oil, gas, whatever.

“I’m OK with harvesting cow farts and sending those out,” he said.

PARTNERSHIPS: A proposal aimed at allowing the state and local governments to enter long-term partnerships with private companies to build big public projects is advancing through the Senate.

The Corporations and Transportation Committee agreed to recommend approval of Senate Bill 143, sponsored by Senate Majority Whip Michael Padilla, D-Albuquerque.

The projects covered by the law include broadband and telecommunications, public buildings and infrastructure, and improving state or locally owned real estate.

“We do need to be looking at ways to encourage investment in New Mexico,” Padilla said.