New Cannabis Laws: Business Licenses in New Mexico

For the last 11 years, cannabis has been legalized for medical use in New Mexico. Activists were trying to get cannabis legalized for all kinds of uses and business as well. In April 2021, the state passed new cannabis laws in the state of New Mexico.

The new laws allow the use of cannabis for recreational purposes. Citizens can also grow marijuana for personal use in their homes. If citizens want to start a business of cannabis production, they need to get a license in New Mexico.

The license system is still improving as the authorities proceed about it.

Obtaining a license in New Mexico

Obtaining a license in New Mexico is not complex. The state’s regulation department has kept the application system online. It is great news for users who can’t travel because of Covid restrictions. The online portal is accessible to everyone, and producers can submit an application form with a 2000 dollars fee.

The state will get back to the user within ninety days. The user will have to provide further information about their process and submit some documents.

The state’s regulatory department will provide a background check on the citizen. The inspection team might also visit and inspect the whole operation before issuing a license.

Business license

A business license will give the user right to grow and sell cannabis in the state.

Nature of license

The nature of business licenses in New Mexico is vertically integrated. Vertical integration license means that the owner has to have ownership over all aspects of the business, i.e.,

  • Cultivation
  • Experimentation
  • Manufacturing
  • Retail

It is also known as the “seed to sale” business model.

Types of business licenses

New Mexico is working on two types of business licenses which will start to issue at the start of next year.

  • Production license (full scale)
  • Micro-business license

The major difference between these business licenses is the limit of plants.

Production license

The production license in New Mexico is set to issue from January. Business owners can obtain this license by submitting an application and waiting for the licensing procedure. This license will allow the citizens to cultivate their land with cannabis plants. The state has to approve the cannabis operation after inspecting the complete setup.

Business owners can produce as much cannabis as they can. They can sell the cannabis to retail stores or customers. They have to follow the state’s packaging laws.

Micro-business license

This license is for small landowners. People who do not have large pieces of land or huge setups can also apply for a business license in New Mexico. The small business owners will face a 200 plants limit. This means they can have no more than 200 full-grown plants for sale.

Experts say that the limit is very harsh and the total cost of operation to produce 200 plants is less than the estimated profit.

Final word

Business licenses in New Mexico are of two kinds. Full-scale and micro business licenses will start to issue next year. The licenses will be non-contestant. If the state issues a license, the municipality can’t object to the production of cannabis.

Related: Map of Marijuana Legality By State

tom

tom

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
tom

tom

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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