If you follow cannabis news in New Mexico, you know it’s been a heady few months: After years of speculation, adult-use cannabis has officially crossed the finish line. With Governor Michelle Lujan Grisham (D) having convened a special legislative session, in June of 2021 the Land of Enchantment officially threw open the doors for adult-use cannabis cultivation and possession.
You’ll note that “adult-use cannabis sales” aren’t on that list. That’s because the state’s Cannabis Control Division was granted a three-month delay in order to formulate adult-use cannabis licensing requirements in New Mexico. But as of September 1, 2021 at the latest, the state is slated to begin processing license applications. And once those adult-use dispensary licenses are issued and cannabis training programs get underway, the state is tasked with beginning adult-use sales no later than April 1, 2022.
What does this mean for those looking to enter the New Mexico cannabis industry? With some sources estimating that the state’s legal cannabis industry is poised to generate some 11,000 new jobs and $300 million in annual sales, it’s Go Time for New Mexico cannabis entrepreneurs. And that means the competition is going to be fierce, with the state scrutinizing each and every application to weed out those deemed unqualified or unprepared.
If you’re looking for a foot in the door, we’d like to help. We’re Bridge West, a team of seasoned cannabis industry veterans with decades of combined experience and a proven approach to cannabis business licensing. We offer our clients an unparalleled advantage in terms of start-up business planning, licensing and advisory services, and much, much more. We invite you to begin your education with this overview of the regulations governing the cannabis licensing requirements in New Mexico.
Adult-Use Cannabis Licensing Requirements in New Mexico: The Regulatory Framework
New Mexico administers its cannabis program through the Cannabis Control Division. And while the state currently offers a number of cannabis business licenses, we’ll narrow our focus to New Mexico’s adult-use cannabis licensing requirements for today’s purposes.
New Mexico Adult-Use Producer License: This license permits the cultivation of cannabis plants (including the testing of unprocessed cannabis products by a licensed cannabis testing laboratory). License-holders may transport unprocessed cannabis products to other licensed cannabis establishments, as well as sell cannabis products wholesale.
Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises.
New Mexico Adult-Use Manufacturer License: This license permits the holder to process cannabis into edibles, oils, and other products; package cannabis products; have cannabis products tested by a testing facility; and purchase, acquire, sell, and transport wholesale cannabis products to other licensed establishments.
Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises
New Mexico Adult-Use Retailer License: This license allows the holder to sell cannabis products to consumers, qualified patients, primary caregivers, and reciprocal participants.
Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises
New Mexico Adult-Use Cannabis Courier: This license permits the holder to transport cannabis products directly to consumers, qualified patients, primary caregivers, and reciprocal participants.
Licensing fees: $1,500/year; $1,000/year for each additional licensed premises
New Mexico Cannabis Consumption Area: Regulated in a similar manner to a microbrewery, these are areas where cannabis products (but not alcohol; that’s a separate license) may be consumed.
Licensing fees: $2,500/year
New Mexico Adult-Use Cannabis Testing Laboratory: This license permits the holder to sample, collect, test, and transport cannabis products for the purpose of testing and assessment.
Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises
In addition, New Mexico will issue licenses to cannabis servers, cannabis training and education programs, and several types of vertically integrated cannabis businesses.
Now that you know your breadth of options, let’s turn our focus to a few of the key points you’ll need to keep top of mind if you’re preparing to apply for a New Mexico cannabis license.
Cannabis Licensing Requirements in New Mexico: General Considerations
Following the lead of other states intent on redressing the inequities of the War on Drugs, New Mexico is demonstrating a commitment to social equity in its legal cannabis industry. This means, among other things, that while applicants may not have prior convictions “substantially related to the qualifications, functions or duties” implicit in their roles, this does not necessarily include prior cannabis convictions. At present, disqualifying felony convictions include fraud, embezzlement, deceit, or ‘involving a minor’ in drug sales.
As implied by our comments earlier in this article, New Mexico has also signalled an openness to vertical integration. At present, multiple licensees may occupy a single licensed premises, and the CCD may not place restrictions on the number of licensees occupying a single licensed premises, or on the number of locations of a single licensed cannabis business.
Cannabis Licensing Requirements in New Mexico: Business and Operations Plans
Yes, a business plan is required to be submitted with cannabis license applications. Importantly, it is also the case that a strong and clear-eyed business plan is one of the most important foundational tools for you and your stakeholders. And when the CCD is reviewing your application, your business plan will provide a singular opportunity for you to demonstrate your strong grasp of the New Mexico cannabis industry, your understanding of the legal and regulatory playing field, and the ways you plan for your business to positively impact the community you serve.
Over and above this, having a solid business plan is a major factor in your ability to attract investors, partners, banking and other related financial institutions, and additional key players.
If a business plan is a strategic roadmap for your enterprise, an operations plan is its more tactical counterpart. Submitting a solid operations plan will signal to the license review board how you’ll ensure that your facility will be in compliance with the state’s security, diversion, public safety, and other requirements. We encourage you to envision your operations plan as an “operator’s manual” for running a successful, compliant, and profitable cannabis business.
Cannabis Licensing Requirements in New Mexico: In Conclusion
If you’re interested in gaining entrance to the New Mexico cannabis industry, we can help. As a partner filled with highly-skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders, and chart a course for success in this exciting—yet challenging—new landscape. We invite you to reach out anytime to schedule a consultation.
