New Mexico Legalization and Cannabis Business Regulations

It’s no surprise that New Mexico was the next state to legalize cannabis use, with its bordering neighbors being Colorado, and the reasonably new legalized state, Arizona. This new law officially went into place on June 29th, 2021, allowing legal possession of up to two ounces of cannabis for anyone of legal age. This makes New Mexico the 18th state to legalize the adult use of marijuana and the fifth state to pass this law through a legislative process. A year later, New Mexico’s recreational cannabis industry is getting ready to open its doors for business.

Over the last year, since the legalization, word spread that you could now apply for a recreational business cannabis license. The state has already received over 1,500 applications and at least 1000 from microbusinesses. Meaning we’re about to see a wave of new cannabis growers and dispensaries sprouting in New Mexico. Bringing with it the possibility for new cultivation techniques, strain genetics, products, and much more.

Legalization Process

The process of legalizing cannabis is not an easy task, but one that the state of New Mexico planned out strategically and with its community in mind. New Mexico knew legalizing marijuana would ultimately change the industry forever. Hopefully, rebuilding the state's cannabis industry will put the underground, illegal market out of business. The residents of New Mexico are excited to see this law go into effect and hope that it repairs the damages done by the drug war. Legalizing cannabis will help stop the maltreatment that has unfairly impacted Hispanic, Black, Native, and Indigenous communities in New Mexico. Bringing with it the stop of excessive and unreasonable criminalization for cannabis possession, especially for people of color.

As expressed above, legalizing the sale of cannabis was a strategic way to boost the economy, especially during the Coronavirus pandemic's impact. The Governor of New Mexico, Michelle Grisham, was quoted saying, "a crisis like the one we experienced last year can be viewed as a loss or as an invitation to rethink the status quo—to be ambitious and creative and bold." And with that mindset, on March 31, 2021, New Mexico passed the Cannabis Regulations Act, becoming the 18th state to legalize, regulate, and tax cannabis and the 5th state to do so without putting it on a ballot. Though legalization laws have already gone into effect, sales won't begin until April 1, 2022.

New Mexico Cannabis Laws

With the news of legalization on the horizon, both consumers and cultivators are gearing up and getting ready for this new green movement. Whether you’re trying to purchase weed, breed cannabis strains, license a dispensary, you name it! A law is already set in place to make your cannabis experience smooth and stress-free.

Business Laws

The laws around cannabis for businesses either looking to sell or grow differ from the consumer side of things. Among other requirements, producers must obtain specific documents, follow safety procedures, and abide by the laws set in motion by the Cannabis Regulations Act. Here’s what anyone looking to get into the cannabis industry needs to know.

Can Anyone Apply for a License to Produce, Sell or Transfer cannabis?

Anyone can apply as long as they’re over 21 and don’t have any prior criminal convictions such as company fraud or embezzlement. Other criminal convictions also may affect eligibility.

What Prerequisites Must I Have in Place in Order to Apply for a Business License?

In order to successfully obtain a business license, producers must complete the cannabis producer/ Microbusiness Producer Applicant Licensing Checklist which has you complete a series of background checks. The checklist includes providing a social and economic equity plan, proof of legal age, a complete series of background checks, documents confirming you have legal water rights for your grow, a water and energy plan, and a diagram of your designated work premises. You'll also have to install a security system including video cameras and a vault.

How Many Plants Will Manufacturers and Producers be Able to Produce?

The answer depends on the size of your business. The difference being with microbusinesses, you can grow up to 200 plants, compared to full producers who can yield over 3,000 cannabis plants.

What Types of Licenses are Available in New Mexico, and What is the Difference Between Them?

There are three different cannabis licenses you can apply for in New Mexico these are:

• Producer/ Dispensary License - This license gives you the right to grow, cultivate, and sell cannabis. Producers and Dispensaries in New Mexico can legally grow and sell cannabis at a retail storefront with this license.
• Manufacturer License - Provide cannabis goods such as edibles, capsules, and oils for wholesale.
• Testing Labs License - To ensure consistency and quality, a testing lab license must provide that marijuana labs analyze products for contaminants, solvent residue, THC, and CBD in cannabis plants.

Can a Cannabis Grower also Have a Permit for a Cannabis Retail Space?

Yes. In addition, a producer license can also allow you access to generate a retail storefront for your cannabis business as long as you follow the Cannabis Retailer Applicant Licensing Checklist.

What are the Packing Requirements for Cannabis in New Mexico?

All cannabis products must be packaged and labeled according to state laws and must not advertise or be designed to appeal to children. All cannabis products must include; the names of the producers and manufacturers, the strain name, manufactured date and expiration, total THC and CBD contents per package, the weight of the product, barcode, batch number, a warning label, and instructions for use.

Consumer Laws

As of March of last year, you are now legally able to use cannabis recreationally in the state of New Mexico, and soon enough, on April 1st of this year, you’ll be able to purchase it from a dispensary. This legalization brings forth new cannabis laws for consumers. Here’s what anyone looking to buy cannabis needs to know.

Who is Eligible to Purchase and Possess Cannabis? How much Can You Purchase at Once?

Anyone over the legal age of 21 can purchase cannabis for recreational use. Though, residents can have a larger supply in their homes. You’re allowed to buy up to 2 ounces of cannabis or 16 grams of cannabis extract, according to the Marijuana Policy Project. Or, you have the option to grab up to 800mg of edibles from a licensed dispensary.

What Types of Cannabis can I buy in New Mexico?

As soon as April 1st, 2022, you’ll be able to purchase flower, concentrates, and edibles for legal consumption.

Is New Mexico Cannabis Taxed?

The state will charge a 12 percent tax on all recreational marijuana sales in addition to the growth tax on all cannabis products you’re purchasing, which in Sante Fe is 8.4%. While legalizing the sale of recreational cannabis, New Mexico’s supreme court ruled that all medicinal cannabis purchases be subject to no tax, though.

What Will New Mexico’s Cannabis Tax Money Pay For?

By adding a state tax to recreational cannabis products, New Mexico hopes to rebuild its economic development to bring other businesses and attractions to the area—using tax revenues to improve community awareness around drugs and ideally implement social campaigns.

Can I Grow Cannabis for Personal Use? Do I Need a Permit to Grow at My Home?

Yes. You can have up to 6 plants for yourself or 12 plants if your household has two or more adults over 21. It doesn’t require a permit. All you’ll need are seeds from your favorite strain.

Where is the Consumption of Cannabis Legal?

You are only allowed to use cannabis in private, such as in your home.

Cannabis Companies in New Mexico

According to a press release, the Cannabis Control Division has already accepted recreational manufacturing and retail license applications through its online licensing system. They've received a total of over 300 submitted applications, which are currently under review. Depending on these producers' schedules and checklists to ensure everything follows state laws, we can see sales beginning as soon as April 1st, 2022.

With the rise of new recreational cannabis storefronts soon to arrive in New Mexico this Spring, current Medical dispensaries are gearing up in preparation to expand their cannabis sales to offer recreational products to consumers. Not only will we see new cannabis brands emerge, but some of our trusted favorites. One dispensary that's getting ready for this new wave is Green Gods. The owner plans on opening two additional storefronts in preparation for entering the recreational market. Bringing with it over 100 new job openings in both retail and cultivation.

In Conclusion

We’re excited to welcome New Mexico as our 16th state to legalize the use and sale of recreational cannabis. On April 1st, if over the age of 21, you’ll officially be able to purchase cannabis and toke legally. Many residents of New Mexico are waiting patiently for this long-awaited day, while others are preparing by submitting their applications for manufacturing and retail licenses.