New Mexico’s Draft Rules for Cannabis Producers

Draft Rules for Cannabis Producers in New Mexico

On May 25, 2021, New Mexico’s Cannabis Control Division (CCD) issued the draft rules for the licensing of cannabis producers. Comments will be accepted through Tuesday, June 29, 2021, which is the same day the Cannabis Regulation Act takes effect.

Here is all the information you need to know about these draft rules:

Types of licenses to be issued

The draft rules will allow for two types of producer’s licenses:

  1. Cannabis Producers
  2. Cannabis Producers Microbusinesses

We already covered the bases requirements of how to get an adult-use cannabis license in New Mexico, as well as how to prepare yourself to apply for an integrated cannabis microbusiness license. So, if you’re an entrepreneur in New Mexico, you should check out those post.

What can you do with these licenses?

According to HB002:

  1. Cannabis Producers are a person or entity allowed to (1) cultivate cannabis plants, (2) have unprocessed cannabis products tested by a cannabis testing laboratory, (3) transport unprocessed cannabis products to other cannabis establishments, or (4) sell cannabis products wholesale.
  2. Cannabis Producers Microbusinesses are cannabis producers at a single licensed premise that possesses no more than two hundred total mature cannabis plants at any one time.

What must an applicant include in their license application?

According to the draft rules, other than the requirements established on HB002, these are the minimum requirements any applicant must include for licensure:

  • Consent to undergo a national criminal history background check, as well as a statewide background check
  • Water supply which is sufficient for the intended operation
  • Proof that the plumbing is of adequate size and design, as well as adequately installed and maintained
  • Proof that all weighting or measuring devices used in the wholesale of cannabis are appropriately documented as having undergone certified registration and calibration
  • Diagrams of the proposed premises
  • A plan to implement and maintain standard policies and procedures as established in the regulations
  • Cultivation plan
  • Measurement of the canopy
  • Lightning diagram
  • Pest management plan
  • Security plan
  • Recall of product plan
  • Chain of custody procedure
  • Cannabis waste procedures plan
  • General safety and health requirements

General operational requirements for licensure

  • First and foremost, every applicant must comply with the applicable local and state laws, including -but not limited to- zoning, employment, construction, water-use and obviously, licensing.
  • Every applicant must be at least 21 years of age, this includes any controlling person and employees of the cannabis establishment.
  • The CCD won’t approve any application for licensure to operate within the boundaries of federally recognized Indian Nation, Tribes, or Pueblos unless these tribal government and the department have entered an agreement to do so.
  • It is prohibited to sell and distribute to any person that isn’t authorized to receive the product, and it is also prohibited to consume cannabis on or within the premises of the establishment.
  • Licensees can’t sell alcoholic beverages
  • Licensees must display their licenses in a conspicuous place, within plain sight of the public.
  • The CCD can require applicants to use specified trace and track equipment, software and services
  • Licensees have to report every theft or security incident to the CCD
  • The establishment must be at least 300 feet away from schools and daycare centers.

How to apply for a New Mexico cannabis license?

All applications will have to be completed using the online application portal available on the CCD Webpage and applications must include every material detail and attachment required by regulations and the CCD.

If for some reason the applicant doesn’t include all requirements, the CCD will contact the applicant with a note of deficiency that needs to be addressed within 90 days, if it is not addressed, the CCD will close the application as incomplete.

Further, the CCD may ask applicants to clarify information contained in their application. This request for information needs to be addressed within 90 days from the date was deemed to be completed, otherwise the division will deny the licensure.

Finally, applicants may withdraw their application at any time prior to the CCD’s issuance or denial of a license.

What to do if you are a medical cannabis licensee?

In order to be entitled to continue producing cannabis, a person properly licensed and in good standing pursuant to the Lynn and Erin Compassionate Use Act on June 29, 2021, must submit a complete application for a cannabis producer license, along with required fees, within 30 days of the effective date of the rules.

If the medical cannabis establishment doesn’t comply with the new rules, they must cease their operations immediately.

As always, getting licensed in the cannabis industry is not an easy task, these are just the general requirements for licensure, and there are a lot more details that every applicant has to take into account when applying for a license.

You can submit comments to the newest proposed legislation until June 29, 2021 by going to the CCD’s Webpage, and if you have any questions regarding the licensing process, do not hesitate to contact us.

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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