New Mexico Cannabis Laws

New Mexico has made significant strides in cannabis regulation, legalizing recreational use for adults 21 and over in 2021. The state's Cannabis Regulation Act allows individuals to possess up to 2 ounces of cannabis and cultivate up to six mature plants. With a focus on safety and consumer protection, New Mexico requires cannabis businesses to adhere to strict packaging, labeling, and security protocols, as well as compliance with taxation and operational regulations.

Every Dispensary Must Know

New Mexico Cannabis Laws at a Glance

Medical Marijuana: Legal since 2007 under the Lynn and Erin Compassionate Use Act, New Mexico allows patients with qualifying medical conditions to access cannabis for therapeutic purposes. Conditions include chronic pain, cancer, PTSD, and other severe ailments.

Adult-Use Cannabis: As of June 2021, adults 21 and older can legally possess and purchase up to 2 ounces of cannabis, 16 grams of extract, or 800 milligrams of edibles. Home cultivation is also permitted, with adults allowed to grow up to six mature plants and six immature plants per household.

Regulation and Licensing: The Cannabis Control Division (CCD) is responsible for overseeing all aspects of cannabis production, distribution, and sales in New Mexico. This includes issuing licenses to cultivators, manufacturers, and retailers, as well as enforcing strict guidelines around packaging, labeling, and advertising.

Retail Sales: Cannabis retail stores are permitted to operate across the state, offering both medical and recreational products. Retail stores must comply with zoning laws and are prohibited from operating near schools and other sensitive areas.

Public Consumption: Public consumption of cannabis remains illegal. Consumption is only allowed in private residences or licensed consumption lounges, which may be established under New Mexico’s regulations.

This section provides a summary of the key aspects of New Mexico’s cannabis laws in 2024. Let me know when you’re ready for the next section!

New Mexico Cannabis Packaging and Labeling Requirements

In New Mexico, cannabis packaging and labeling regulations are designed to ensure consumer safety and product transparency. All cannabis products sold in the state must adhere to strict guidelines set forth by the Cannabis Control Division (CCD). Here are the key points:

Child-Resistant Packaging: All cannabis products must be packaged in child-resistant containers to prevent accidental ingestion by children. The packaging should also be tamper-evident and resealable if the product is intended for multiple uses.
Labeling Requirements: Labels must include comprehensive information about the product, including:
- Product Name: The common or generic name of the product.
- THC and CBD Content: The total amount of THC and CBD in milligrams per serving and per package.
- Batch Number: A unique identifier that allows for tracking the product back to its origin.
- Health Warnings: Mandatory health warnings such as “Keep out of reach of children” and “This product contains cannabis.”
- Usage Instructions: Clear directions on how to use the product, including recommended dosage.
Prohibited Labeling: Labels must not contain any false or misleading statements, make unsubstantiated health claims, or appeal to children. This includes the use of images or language that could be attractive to minors.
Branding Restrictions: Products cannot be packaged or labeled in a way that resembles commercially available food products or beverages, especially those that could appeal to children.
Testing Information: The label must also indicate that the product has been tested for contaminants and potency, as required by state regulations.

These regulations ensure that consumers are well-informed and protected when purchasing cannabis products in New Mexico. Let me know when you’re ready for the next section!

New Mexico Cannabis License Types and Application Process

New Mexico offers a variety of cannabis licenses, catering to different aspects of the cannabis industry, from cultivation to retail. The Cannabis Control Division (CCD) oversees the licensing process, ensuring that all applicants meet the state’s stringent requirements. Here’s an overview of the main license types and the application process:

1. Types of Cannabis Licenses:

Producer License: For businesses involved in the cultivation of cannabis. This license allows the holder to grow cannabis plants, either indoors or outdoors, and sell them to manufacturers or retailers.
Manufacturer License: Allows businesses to process cannabis into different products such as edibles, concentrates, and topicals. This license also covers the packaging and labeling of products.
Retailer License: Permits the sale of cannabis products directly to consumers. Retailers must ensure that all products are properly labeled and tested before sale.
Microbusiness License: Designed for small-scale operations, this license allows the holder to produce and sell a limited amount of cannabis. Microbusinesses can engage in cultivation, manufacturing, and retail, but within specific limits set by the state.
Testing Laboratory License: For facilities that test cannabis products for potency and contaminants. This license ensures that all products meet the state’s safety standards.
Courier License: Allows the transportation and delivery of cannabis products from licensed producers, manufacturers, and retailers.

2. Application Process:

Initial Application: Prospective licensees must submit an application to the CCD, which includes detailed information about the business, such as ownership details, financial background, and a comprehensive business plan.
Background Checks: All applicants must undergo a criminal background check. The state has strict disqualifications for applicants with certain felony convictions.
Zoning Compliance: Applicants must provide evidence that their proposed business location complies with local zoning laws, including distance requirements from schools, parks, and other sensitive areas.
Financial Documentation: Proof of financial stability is required, demonstrating that the applicant has sufficient capital to operate the business.
State Approval: After reviewing the application, the CCD will either approve, request additional information, or deny the application. Approved applicants receive their license and must adhere to all state regulations and ongoing compliance checks.

This licensing framework ensures that the New Mexico cannabis industry operates within a regulated and controlled environment, promoting safety and compliance across the board.

New Mexico Cannabis Establishment Security Requirements

To ensure the safety and integrity of cannabis operations, New Mexico has implemented stringent security requirements for cannabis establishments. These requirements are designed to prevent theft, unauthorized access, and ensure the safe handling of cannabis products throughout the supply chain.

Key Security Measures:

Surveillance Systems:
- All cannabis establishments must have a comprehensive video surveillance system that records all areas where cannabis is handled, processed, stored, or sold. The cameras must operate 24/7, with recordings retained for a minimum of 90 days.
- The surveillance system must cover all points of entry and exit, as well as any area where cannabis is stored, including vaults and safes.
Access Control:
- Access to areas where cannabis is stored or processed must be restricted to authorized personnel only. Establishments must implement an electronic access control system that logs all entries and exits.
- Employees must wear identification badges at all times, and visitors must be escorted by authorized staff and sign in and out of the facility.
Alarm Systems:
- A professionally monitored alarm system is required to secure all entrances, exits, windows, and any other potential points of unauthorized access. The system must include motion detectors, glass break sensors, and panic buttons.
Secure Storage:
- Cannabis products must be stored in a secure vault or safe when not being handled or sold. The storage area must be locked and accessible only to authorized personnel.
Transportation Security:
- When transporting cannabis, establishments must use secure, GPS-monitored vehicles. The vehicle must not be marked in any way that indicates it is carrying cannabis, and the driver must follow a pre-approved route.
Lighting:
- Adequate lighting must be installed both inside and outside the facility to deter unauthorized access and ensure clear visibility on surveillance footage.
Record Keeping:
- Establishments must maintain detailed records of all security measures, including surveillance footage, access logs, and alarm system activity. These records must be made available to regulatory authorities upon request.

These security measures are critical in maintaining compliance with New Mexico state laws and ensuring the safe operation of cannabis establishments. Implementing these protocols helps to protect the business, its employees, and its customers, while also maintaining the integrity of the cannabis industry in New Mexico.

New Mexico Cannabis Retail and Operational Compliance

Retail Operational Hours: In New Mexico, licensed cannabis retailers are permitted to operate between 7:00 AM and midnight daily. It is important for retailers to adhere strictly to these hours to avoid penalties or license suspension.

Sales Limits: Retailers must enforce the state’s sales limits, which allow adults aged 21 and older to purchase up to 2 ounces of cannabis flower, 16 grams of cannabis extract, and 800 milligrams of edible cannabis products in a single transaction. Medical marijuana patients may have different limits depending on their prescription.

Customer Verification: Retail establishments are required to verify the age and identity of every customer at the point of sale. This verification must be done using a government-issued ID. Failure to do so can result in severe penalties.

Reporting and Inventory Tracking: All retail transactions must be recorded in the state’s seed-to-sale tracking system, which is Metrc. This system helps ensure that all cannabis products are accounted for and that sales do not exceed legal limits. Accurate reporting is crucial for compliance, and discrepancies can lead to audits or penalties.

Security Requirements: Retailers must implement robust security measures, including surveillance cameras, alarm systems, and secure storage for cannabis products. Access to areas where cannabis is stored or handled should be restricted to authorized personnel only.

These compliance requirements are designed to ensure that cannabis retail operations in New Mexico are conducted in a safe, legal, and transparent manner. Adherence to these guidelines is essential for maintaining a good standing with the New Mexico Regulation and Licensing Department.

New Mexico Cannabis Taxes and Fees

In New Mexico, cannabis businesses are subject to specific taxes and fees that vary based on the type of operation and the products sold. Understanding these financial obligations is crucial for maintaining compliance and ensuring the smooth operation of your cannabis business.

Cannabis Excise Tax:

New Mexico imposes a Cannabis Excise Tax on all retail sales of adult-use cannabis products. As of 2024, the tax rate is set at 12%, which is applied to the total sales price. This rate is expected to increase gradually to 18% by 2030. Medical cannabis sales are exempt from this excise tax.

Gross Receipts Tax:

In addition to the Cannabis Excise Tax, businesses must also pay the state’s Gross Receipts Tax (GRT), which applies to all commercial transactions, including cannabis sales. The GRT rate varies depending on the location of the business but typically ranges between 5% and 9%. This tax is similar to a sales tax and is imposed on the seller, though it is often passed on to the consumer.

Licensing Fees:

New Mexico cannabis businesses are required to pay licensing fees that differ based on the type of license and the scale of the operation:
- Producer License Fees: These fees can range from $2,500 to $7,500 depending on the size and type of the cultivation operation.
- Retailer License Fees: Retail licenses generally have a fee of around $2,500.
- Manufacturer and Processor License Fees: Fees for these licenses are typically $2,500, but may vary depending on the specifics of the business.
- Microbusiness Fees: Microbusiness licenses, which allow for small-scale operations, have reduced fees, typically around $1,000.

Annual Renewal Fees:

Cannabis businesses in New Mexico must renew their licenses annually. The renewal fees are generally consistent with the initial licensing fees but may vary depending on changes in state regulations or business operations.

Local Fees:

In addition to state-imposed taxes and fees, local municipalities may impose additional taxes or fees on cannabis businesses. These can include local excise taxes, application fees, and annual operating fees. It’s important to check with local authorities to understand any additional financial obligations specific to your business location.

Staying informed about these taxes and fees is essential for cannabis business operators in New Mexico to avoid penalties and ensure compliance with state and local regulations.

New Mexico Cannabis Recordkeeping and Reporting Requirements

Overview:

In New Mexico, cannabis establishments are required to maintain accurate records and adhere to strict reporting requirements to ensure compliance with state regulations. These requirements are essential for maintaining the integrity of the cannabis supply chain, ensuring public safety, and complying with tax obligations.

Recordkeeping Requirements:

Inventory Tracking:
- Cannabis establishments must use a state-approved inventory tracking system to record the movement of cannabis and cannabis products from seed to sale. This system must track inventory levels, transfers, sales, and disposals to prevent diversion and ensure compliance with state laws.
Transaction Records:
- Detailed records of all transactions, including sales, returns, and exchanges, must be maintained. This includes the date of the transaction, the quantity and type of product sold, and the total sale amount. All sales must be reported in real-time through the state’s tracking system.
Employee Records:
- Records of all employees, including their job roles, training certifications, and background checks, must be maintained. This ensures that all staff handling cannabis are properly trained and authorized to work in the industry.
Security Records:
- Cannabis establishments must maintain records of all security measures, including surveillance footage, alarm systems, and access logs. These records must be kept for a minimum of 90 days and be readily available for inspection by state regulators.
Financial Records:
- Accurate financial records, including sales, expenses, and tax payments, must be maintained. These records are crucial for tax reporting and audits by the New Mexico Taxation and Revenue Department.

Reporting Requirements:

Monthly Sales and Tax Reports:
- Cannabis establishments are required to submit monthly sales and tax reports to the New Mexico Taxation and Revenue Department. These reports must include details of all sales transactions and the amount of tax collected.
Incident Reports:
- Any incidents involving theft, loss, or security breaches must be reported to the Cannabis Control Division within 24 hours. Detailed reports of the incident, including the actions taken, must be submitted.
Compliance Audits:
- Regular audits may be conducted by state regulators to ensure compliance with recordkeeping and reporting requirements. Establishments must provide all requested records and cooperate fully with auditors.

By adhering to these recordkeeping and reporting requirements, cannabis establishments in New Mexico can ensure they remain in compliance with state regulations and contribute to the safe and legal operation of the cannabis industry.

New Mexico Cannabis Advertising and Marketing Regulations

Overview:
Advertising and marketing cannabis products in New Mexico are subject to stringent regulations aimed at ensuring public safety, preventing youth exposure, and promoting responsible use. The New Mexico Regulation and Licensing Department (RLD) and the Cannabis Control Division (CCD) oversee these rules to ensure that cannabis businesses operate within legal boundaries.

Key Advertising and Marketing Guidelines:

Prohibition of False or Misleading Advertising:
All cannabis advertisements must be truthful and not misleading. Claims about the benefits or safety of cannabis products must be supported by scientific evidence and must not make unsubstantiated health claims.
Restrictions on Targeting Minors:
Advertising cannabis products in a manner that appeals to individuals under the age of 21 is strictly prohibited. This includes avoiding the use of imagery, language, or content that might attract minors, such as cartoons, toys, or any content resembling children’s marketing.
Placement of Advertisements:
Cannabis advertisements are not allowed within 300 feet of schools, daycare centers, playgrounds, or any location frequented by minors. Additionally, businesses are restricted from placing ads on billboards or any outdoor media that is within close proximity to such sensitive areas.
Required Disclaimers:
All cannabis advertisements must include specific disclaimers, such as “For use only by adults 21 and older” and “Keep out of reach of children.” These warnings must be prominently displayed to ensure that consumers are fully informed about the potential risks associated with cannabis use.
Digital and Social Media Advertising:
When advertising online or through social media, cannabis businesses must take steps to ensure that the audience is primarily composed of individuals 21 and older. This may involve age-gating content and using platforms that allow for demographic targeting.
Prohibition on Free or Discounted Cannabis:
Promotions offering free or discounted cannabis products are prohibited. This includes “buy one, get one” deals or any form of giveaway that could encourage overconsumption.
Sponsorships and Events:
Cannabis businesses can sponsor events, but they must ensure that such sponsorships do not directly or indirectly promote the consumption of cannabis by minors. Event advertisements that include cannabis branding are subject to the same restrictions as general advertising.

By adhering to these regulations, cannabis businesses in New Mexico can ensure they remain compliant while effectively promoting their products to the appropriate audience. It is crucial for businesses to stay updated on any changes to these regulations, as the cannabis industry is continually evolving.

New Mexico Cannabis Testing and Product Safety Requirements

New Mexico mandates stringent testing and safety requirements for all cannabis products to ensure they are safe for consumption and accurately labeled. These regulations are crucial for maintaining product integrity, consumer safety, and compliance with state laws.

Key Testing Requirements:

Mandatory Testing: All cannabis products must undergo testing for potency, which includes measuring THC and CBD levels. Additionally, products are tested for contaminants such as pesticides, heavy metals, mold, and residual solvents to ensure they meet the safety standards set by the New Mexico Cannabis Control Division (CCD).
Accredited Testing Laboratories: Only laboratories that are accredited and licensed by the state are authorized to conduct these tests. These labs must adhere to strict protocols to maintain the accuracy and reliability of their results.
Labeling Requirements: After testing, products must be properly labeled with accurate information regarding their potency (THC/CBD content), the presence of any contaminants, and the date of testing. This ensures transparency and helps consumers make informed decisions.
Batch Testing: Every batch of cannabis products must be tested before it is distributed or sold. This batch testing ensures that any contaminants are identified early, preventing unsafe products from reaching consumers.
Recall Procedures: If a product fails testing or is found to be unsafe after distribution, there are clear procedures in place for recalling the product. This includes notifying retailers and consumers, and removing the product from shelves.

These rigorous testing and safety requirements are part of New Mexico’s commitment to providing safe, high-quality cannabis products to its residents. By enforcing these regulations, the state helps to protect public health and maintain consumer confidence in the legal cannabis market.

New Mexico Cannabis Purchase and Possession Limits

In New Mexico, cannabis purchase and possession limits vary depending on whether an individual is a recreational user or a registered medical cannabis patient.

Recreational Users:

Purchase Limits: Adults 21 years and older can purchase up to 2 ounces of cannabis flower, 16 grams of cannabis extract, and 800 milligrams of edible cannabis in a single transaction.
Possession Limits: Recreational users are allowed to possess the same amounts: up to 2 ounces of cannabis flower, 16 grams of cannabis extract, and 800 milligrams of edible cannabis. These limits apply to what can be carried on one’s person.

Medical Cannabis Patients:

Purchase Limits: Registered medical cannabis patients in New Mexico may purchase up to 230 units of cannabis every 90 days. A unit generally equals 1 gram of cannabis flower or 200 milligrams of THC in other forms like edibles or concentrates.
Possession Limits: Medical cannabis patients are permitted to possess up to 8 ounces of cannabis over a 90-day period.

These regulations are in place to ensure responsible use while allowing both medical patients and recreational users access to cannabis within legal boundaries. It’s important for individuals to stay within these limits to avoid potential legal issues.

New Mexico Cannabis Delivery Regulations

In New Mexico, the delivery of cannabis products is regulated to ensure safety, compliance, and proper tracking. Here are the key points regarding cannabis delivery regulations in the state:

Authorized Delivery Entities: Only licensed cannabis retailers and their authorized agents are permitted to deliver cannabis products. These entities must comply with all state regulations and maintain proper documentation for each delivery.
Delivery Restrictions: Cannabis deliveries can only be made to residential addresses. Deliveries to commercial properties, schools, and government buildings are strictly prohibited. Additionally, delivery to any location within 300 feet of a school, daycare center, or other locations where minors congregate is not allowed.
Age Verification: Upon delivery, the receiving individual must provide valid identification proving they are at least 21 years old. Delivery agents must verify this information before completing the transaction.
Delivery Limits: The quantity of cannabis that can be delivered is subject to the same purchase limits as in-store purchases. This includes limits on the amount of flower, concentrates, and edibles that can be delivered per transaction.
Tracking and Reporting: All cannabis deliveries must be logged into the state’s seed-to-sale tracking system. This ensures that all cannabis products are accounted for from the point of sale to the point of delivery. Retailers must also keep detailed records of each delivery, including the date, time, delivery address, and products delivered.
Delivery Hours: Cannabis deliveries can only occur during the operating hours of the licensed cannabis establishment. Deliveries outside of these hours are not permitted.

These regulations are designed to ensure that cannabis deliveries are conducted safely, legally, and in a manner that minimizes the risk of diversion or misuse.