Updated in June 2022
How to Get a Cannabis Business License in New Mexico
Do you want to know the process of getting a cannabis business license in New Mexico? Through House Bill 2, passed on April 12, 2021, New Mexico legalized recreational marijuana, allowing the possession and consumption of individuals 21 years or older. Since then, the Cannabis Control Division has become the cannabis regulatory advisory committee responsible for regulating the adult-use cannabis program of the cannabis manufacturer.
If you’re an entrepreneur looking to get a marijuana business license and open a dispensary in New Mexico, you’ll need to know about House Bill 2. Passed on April 12, 2021, this bill legalized adult-use marijuana in the state, allowing for the possession and consumption of cannabis by individuals 21 years or older. Since then, the Cannabis Control Division has become the regulation and licensing department of the adult-use cannabis program. In this article, we’ll provide you with all the information you need to know about how to get a cannabis industry license in New Mexico to start businesses like cannabis dispensaries or manufacture cannabis products.
What are the requirements to open a cannabis business in New Mexico?
The first step to getting a license to operate a marijuana-related business and offer cannabis products in New Mexico is to submit an application packet to the Cannabis Control Division. This packet must include:
- A completed Application for License or Renewal form
- A non-refundable application fee of $1,000
- An outlined business plan that includes information about your proposed business, such as the business name, location, type of business, and projected start date
- A resume or CV for each applicant
- Proof of age 21 years or older for each applicant
- Background check forms for each applicant
- An ownership disclosure form for each applicant
- A surety bond in the amount of $5,000
After the Cannabis Control Division reviews your application packet and approves it, you will be issued a license. You must then post the license at your place of business in a conspicuous location.
Now that you know how to get a marijuana industry license in New Mexico, you can start your application process, plan your business, and get started on the path to success, like opening a marijuana dispensary in New Mexico.
What are the benefits of a New Mexico marijuana industry license?
A New Mexico license for cannabis businesses allows you to legally operate your own marijuana enterprise in the state. This license is required in order to cultivate, manufacture, distribute, or sell cannabis. A cannabis business license also allows you to open a retail cannabis dispensary.
The benefits of having a marijuana business license in New Mexico include:
- Legally operating your business: A business license is required in order to legally operate cannabis establishments in New Mexico. This includes cultivators, manufacturers, distributors, and retailers.
- Selling cannabis products: A retail cannabis dispensary can only sell cannabis products if they have a valid New Mexico cannabis business license.
- Access to the regulated market: Only businesses with a New Mexico cannabis business license are able to participate in the regulated cannabis market. This includes being able to sell cannabis products produced in New Mexico to licensed dispensaries.
- Protection from law enforcement: Cannabis businesses that are licensed and operating legally are protected from law enforcement. This means that you can operate your business without fear of being raided or shut down by the police.
- Become part of a multimillion legal industry: Economic projections have shown that recreational cannabis sales in New Mexico could total as much as $318 million in the first year alone.
If you are looking to start a marijuana business in New Mexico, make sure to get a business license! This will allow you to operate legally and protect your business from law enforcement.
So, even though the licensing process requires special attention to detail, the results may be worth opening a dispensary in New Mexico.
What types of cannabis business licenses are there in New Mexico?
With 10 types of licenses available, and some hoops to jump through, New Mexico -like other states- requires special attention to regulations in order to stay compliant with the adult-use cannabis program.
According to House Bill 2 Cannabis Regulation Act, there are 10 different types of adult-use cannabis licenses available in New Mexico:
- Adult-Use Producer License
- Adult-Use Manufacturer License
- Adult-Use Retailer License
- Vertically Integrated Cannabis Establishment
- Cannabis Producer Microbusiness
- Integrated Cannabis Microbusiness
- Adult-Use Cannabis Courier
- Cannabis Consumption Area
- Cannabis Research Laboratory
- Adult-Use Cannabis Testing Laboratory
RELATED POST: HOW TO GET A MARIJUANA BUSINESS LICENSE IN MICHIGAN
RELATED POST: HOW TO GET A MARIJUANA BUSINESS LICENSE IN MASSACHUSETTS
How much is a New Mexico cannabis industry license?
The licensing fees for New Mexico’s cannabis businesses licenses are as follows:
|Type of license||Annual Fee||Additional Anual Costs|
|Adult-Use Producer License||$2,500/year||$1,000/ year for each additional licensed premises|
|Adult-Use Manufacturer License||$2,500/year||$1,000/ year for each additional licensed premises|
|Adult-Use Retailer License||$2,500/year||$1,000/ year for each additional licensed premises|
|Vertically Integrated Cannabis Establishment||$7,500/year||$1,000/ year for each additional licensed premises*|
|Cannabis Producer Microbusiness||Up to $1,000/year|
|Integrated Cannabis Microbusiness||Up to $2,500/year||$500/ year for each additional licensed premises|
|Adult-Use Cannabis Courier||$1,500/year||$1,000/ year for each additional licensed premises|
|Cannabis Consumption Area||$2,500/year|
|Cannabis Research Laboratory||$2,500/year||$1,000/ year for each additional licensed premises|
|Adult-Use Cannabis Testing Laboratory||$2,500/year||$1,000/ year for each additional licensed premises|
*It cannot exceed $125,000
You have to have in mind that these costs are only the official fees in order to apply for and maintain a license in the state. However, you have to take into account real estate if you’re planning on opening a retail establishment or licensed premises, as well as operational/day-to-day costs in order to factor in how much money you will need to spend to get the operation going, including if you want to open other cannabis establishments and getting a robust cannabis pos system.
How to get a marijuana business license in New Mexico
If you want to check specific requirements so far established by House Bill 2, you’d probably want to check out our “How to Apply for an Adult-Use New Mexico Cannabis License” post. As mentioned there, the specific requirements needed in order to apply for a license are not out yet, and final license rules are due by January 1, 2022, with licenses themselves having to be issued no later than April 1.
However, what is clear is that, in order to obtain a cannabis business license in New Mexico, you will have to start an application process for which you will need to prepare a marijuana business plan.
That business plan should include the following items:
- Executive Summary
- Company Description
- Market Analysis
- Competitive Analysis
- Management & Operations
- Marketing and Sales
- Financial Summary
- New Mexico-Specific Requirements
To gain perspective on your future operations, a cannabis business plan is vital, as it is the blueprint for your cannabis business.
If you want more information regarding what could you do in order to stay compliant with the industry in New Mexico, don’t hesitate to contact us.
If you want to be updated on the current state of Cannabis legalization, you should check out our map of marijuana legality by state.
RELATED POST: HOW TO GET A CANNABIS BUSINESS LICENSE IN CALIFORNIA
RELATED POST: VIRGINIA SOCIAL EQUITY CANNABIS LICENSE