Pub. 12 2015 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Fall • 2015 13 cooperatives do not need to secure federal deposit insurance, the statute requires cooperatives to obtain approval from the Federal Reserve before commencing business. The statute also requires a cooperative to disclose to its members that federal law does not authorize financial institutions, including financial services cooperatives, to accept proceeds from activities that are illegal under federal law, such as that from licensed marijuana businesses. To date, there have been no applications in Colora- do to establish a marijuana-financed cooperative. In 2014, Colorado approved Fourth Corner Credit Union, a charter under the standard credit union statute, to provide fi- nancial services to the marijuana industry. The credit union was not able to commence operations as it was denied an ac- count with the Federal Reserve Bank by the Fed. The credit union filed a federal complaint against the Federal Reserve Bank of Kansas City. It seems unlikely that the Court will force the Federal Reserve to approve Fourth Corner’s application for a master account. Following Dr. Ghosh's presentation, Duke Rodriguez of Ultra Health gave a presentation that was alternately humorous and informative. Rodriguez is one of the top marijuana growers in the Southwest and his company is designed to provide consul- tation regarding the cultivation of marijuana. Ultra Health is committed to growing marijuana in a controlled, sterile envi- ronment, thus preventing exposure to pesticides and carcino- gens. Rodriguez's presentation was focused on, one, dispelling many of the myths regarding marijuana and, two, illustrating the economic benefits that marijuana can provide. Rodriguez focused on dispelling the notion that marijuana is a gateway drug and provided evidence that it is, in most ways, safer than alcohol. He clearly is of the belief that marijuana legalization is inevitable and will be an enormous economic boon to states that choose to see those possible economic benefits sooner rather than later. Rodriguez's presentation was focused around the belief that marijuana cultivation is becoming a booming industry that has the potential to be a complete economic game-changer if le- galized. Rodriguez is a consummate businessman who clearly recognized an emerging trend and jumped on it early. He did an excellent job of separating some of the stigma around mar- ijuana and allowed audience members to see the issue from a primarily economic viewpoint. Rodriguez portrayed marijuana as an industry that could aid an economic surge, much in the way technology has done in recent years. His presentation was remarkably well-received by audience members. Next, a panel discussion involving medical professionals cen- tered around the effectiveness of using marijuana to treat psy- chiatric conditions, specifically post-traumatic stress disorder (PTSD). The five participants were Dr. Dan Duhigg, a psychi- atrist at University of New Mexico who specializes in the treat- ment of addiction and chronic pain; Dr. Steve Jenison, a psychi- atrist who served as the first Medical Director and first Medical Advisory Board Chair on the New Mexico Medical Marijuana Board; Dr. Bill Johnson, a child and adolescent psychiatrist in Santa Fe; Dr. Bill Ulwelling, an Albuquerque psychiatrist who has worked with a number of military veterans; and Dr. Gerar- do Villareal, a UNM psychiatry professor who also is the Medi- cal Director of the PTSD program of the New Mexico Veterans' Health Care Program. Each panelist laid out their own views on the treatment of pain, anxiety and psychiatric disorders using medical marijuana. Dr. Duhigg was clearly skeptical about the medical benefits of marijuana use. He was insistent that pros and cons must be weighed prior to treatment. Dr. Jenison and Dr. John- son both made the case that marijuana is an effective form of treating psychiatric conditions, specifically PTSD. They view marijuana as a less harmful alternative to heavy psychiatric meds, which are often prescribed to veterans. Dr. Ulwelling made the case that marijuana use is not an effective method of treating PTSD specifically and, in his opinion, often exacerbates the initial problem. Finally, Dr. Villareal provided information about the effects of PTSD and what really needs to be done to help many military veterans. Senator Ortiz y Pino and Representative Armstrong thenmod- erated a question and answer session. It featured numerous thought-provoking questions from audience members on both sides of the issue. All told, the town hall opened up much-need- ed discussion on an issue that is becoming more relevant with each passing day. We attended the town hall to learn more about the Colorado experience. Many believe that marijuana legalization is, above all, an economic issue that could have huge ramifications in a state with a lagging business environment. In 2014, Colorado sold $386 million dollars inmedical marijuana and $313 million for purely medical purposes. All told, the two segments of the market generated $63 million in tax revenue and an additional $13 million in licensing and fees. These figures don’t include the additional revenue generated by tourism, including hotel and restaurant data, which has spiked since marijuana sales be- came legal. Needless to say, it’s been a boost to the economy of Colorado. The marijuana industry in Colorado has faced a number of hurdles since legalization. Marijuana is classified as a Schedule I drug under federal law. This classification means that mari- juana, under federal law, is considered as having no currently accepted medical use in treatment. The direct conflict between state and federal law concerning the use of medical marijuana, combined with federal banking restrictions, has caused many problems for the marijuana industry and for those seeking to serve it. The dual regulatory design in which a state may autho- rize a marijuana business to lawfully operate under its jurisdic- tion but cannot protect it from prosecution under federal law is to say the least problematic. It is curious that the federal gov- ernment has not blocked the progress of state marijuana legis- lation and the development of the medical marijuana industry. Colorado too has faced plenty of challenges since legalization. Growers and retailers are not eligible for the multitude of tax exemptions and deductions available to other businesses. Be- cause of the difficulty of not having access to banking services, marijuana enterprises operate on a cash only basis, which leads to a tremendous array of risk for business owners. But it ap- pears that Colorado has in the main incorporated medical mar- ijuana and recreational use of marijuana into state law without dire consequences. Once could argue the state has witnessed an economic boon in part because of legalization albeit with expe- riencing plenty of bumps in the road. It is unlikely that the 2015 New Mexico Legislature will con- sider the marijuana issue during its 30 day session. However, there appears to be an increasing awareness and interest among New Mexico policymakers in regarding to the Colorado experi- ence. 