New Mexico Published Draft Rules for Cannabis Growers

New Mexico legalize Adult-Use on April 12th, 2021. House Bill 2 allows for the possession and consumption of marijuana for those who are 21 years of age or older. The Cannabis Control Division is responsible for regulating the adult-use marijuana program.

The state will begin accepting applications for cannabis Producers and Producer Microbusinesses by Sept 2021. Producer licenses are for a business who cultivates cannabis plants; has unprocessed cannabis products tested by a cannabis testing laboratory; transports unprocessed cannabis products only to other cannabis establishments; or sells cannabis products wholesale. A producer microbusiness license is for cannabis producers at a single licensed premise that possesse no more than two hundred total mature cannabis plants at any one time.

This week, the state published its draft regulations for cannabis Grower (Producer) licenses.

Applicants applying for a producer license will need to submit an application to include the following information:

• Contact information for the applicant and the cannabis establishment
• Proof the applicant or each controlling person is at least 21 years of age
• Proof the applicant is in good standing with the New Mexico taxation and revenue department
• Business formation documents
• Information pertaining to the land or facility that will be utilized as the cannabis establishment and information about the method that will be used to produce cannabis
• Documentation that shows the applicant’s ownership or legal authority to use the property, buildings, or other facilities
• State documented proof that the applicant has valid rights to the use of water for cannabis production and that the applicant has a legal right to a commercial water supply, water rights, another source of water, and the water supply is sufficient to meet the water needs as determined by the division.
• Documentation of a current business license, fire inspection report, certificate of occupancy, and zoning approval, as well as certification on whether or not energy and water reduction opportunities will be utilized
• Certification the applicant is in good standing with the New Mexico Secretary of State
• A list of all controlling persons and information of any businesses they have managed in the last 5 years (if applicable)
• Information on any criminal convictions of the applicant and parties involved.
• Description and legible electronic image of the labeling and packaging of the cannabis products that the applicant plans to use
• Information about the wholesale purchaser as well as date of purchases, the date of the sale, the quantity, and price of medical or commercial cannabis sold
• The initial number of mature cannabis plants the applicant proposes for production
• Summary of proposed operations (should include cannabis and cannabis products to be produced at the location)
• Proof that the applicant will adhere to production requirements according to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules.
• Proof that the applicant will comply with transportation requirements according to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules.
• Proof that the applicant will adhere to New Mexico Department of Agriculture (NMDA) pesticide registration, licensing, and use requirements to ensure a safe product and environment
• Proof that that the applicant will comply with quality assurance requirements according to Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules.
• Proof that the applicant will follow all applicable federal, state and local laws governing the protection of public health and the environment.
• Proof that the applicant has not had a license revoked, suspended, or denied by the by the division or any other state cannabis licensing authority
• Proof that the proposed premise is not within 300 feet of a school or daycare center.
• An attestation of the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that a misrepresentation of fact or violation of these rules may result in denial of the license application or revocation of a license issued.
• Payment of any required fees as set forth in 16.8.11 NMAC ($2,500/year; $1,000/year for each additional licensed premises).

The State of New Mexico is currently accepting public comments on the proposed draft rules. To provide public comment, you can:

• Visit the link below and submit a comment:
  • https://ccd.rld.state.nm.us/2021/05/24/adult-use-cannabis-producer-licensing-requirements-2/
• Email your public comment to ccd.publiccomment@state.nm.us
• Submit your public comment via postal mail to:

Public Comment
c/o Robert Sachs
P.O. Box 25101
Santa Fe, NM 87504

The deadline to submit public comment is at the conclusion of the public hearing on June 29, 2021. A public hearing will take place on June 29th at 9am.  The public is welcome to join and present public comments via video conference or telephone.

For more information on how to apply for a Producer License in New Mexico or to learn more about how we may we may be able to assist you, please call 602-290-9424 or email info@thecannabisbusinessadvisors.com.