A. The division shall regulate the following in accordance with the Uniform Licensing Act [N.M. Stat. Ann. Chapter 61, Article 1], unless otherwise provided in the Cannabis Regulation Act:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(1)     commercial cannabis activity;

and (2)     the medical cannabis program, except for the medical cannabis registry;

(3)     all aspects of cannabis relating to cannabis training and education programs.

B. The division may issue, renew, deny, suspend or revoke licenses or discipline licensees for the following:

(1)     cannabis consumption areas; (2)     cannabis couriers;

(3)     cannabis manufacturers;

(4)     cannabis producer microbusinesses; (5)     cannabis producers;

(6)     cannabis research laboratories; (7)     cannabis retailers;

(8)     cannabis servers;

(9)     cannabis testing laboratories;

(10)    cannabis training and education programs; (11)    integrated cannabis microbusinesses; and (12)    vertically integrated cannabis establishments.

C. The division shall include a clear designation on all licenses that indicates whether the license is for medical cannabis activity, commercial cannabis activity or both.

D. The division shall issue a license to a cannabis retailer applicant at a discount if the applicant provides documentation of an agreement to accept cannabis products on consignment from a cannabis producer microbusiness or an integrated cannabis microbusiness.

E. A license is valid for twelve months from the date the license is issued and may be renewed annually. A licensee shall notify the division when the licensee begins or ends operations pursuant to the license.

F. The director shall not renew a license until the director receives notification from the secretary of taxation and revenue or the secretary’s designee that on a certain date:

(1)     the licensee is not a delinquent taxpayer pursuant to Section 7-1-16 N.M. Stat. Ann. only with respect to the cannabis excise tax or the gross receipts tax; and

(2)     there are no unfiled tax returns due with respect to the cannabis excise tax or the gross receipts tax.

G. A license shall not be transferable or assignable from a licensee to another person. The division shall not allow a person that is licensed as any type of cannabis establishment other than a cannabis research laboratory to hold, directly or indirectly, a cannabis testing laboratory license.

H. A license shall not be subject to execution, attachment, a security transaction, liens or receivership.

I. Except for verification of age, the division shall not require licensees to request information from consumers or impose any residency requirement upon consumers for the purchase of commercial cannabis products. The division may require licensees to request information from consumers for the purchase of medical cannabis products, which may include the presentation of legal identification issued by an authorized governmental entity or other documents as required by the medical cannabis program.

J. Except as otherwise provided in the Cannabis Regulation Act, the division shall not limit the number of licensed premises a licensee may occupy or operate under a license. Multiple licensees may occupy a single licensed premises, and the division shall not place any restriction or prohibition on the number of licensees occupying a single licensed premises or on the number of licensed premises of a cannabis establishment except as otherwise specifically provided for by that act. A licensee may conduct any lawful activity or any combination of lawful activities at a licensed premises except that a cannabis licensee shall not occupy any premises that also houses a business holding a license under the Liquor Control Act [60-3A-1 N.M. Stat. Ann.] that allows the sale or giving away of alcoholic beverages by the glass or package, including growlers, to the public or to members of a private club or otherwise allows consumption of alcohol on the premises.

K. Smoking in a cannabis consumption area on a licensed premises shall be allowed only if the cannabis consumption area is in a designated smoking area or in a standalone building from which smoke does not infiltrate other indoor workplaces or other indoor public places where smoking is otherwise prohibited pursuant to the Dee Johnson Clean Indoor Air Act [N.M. Stat. Ann. Chapter 24, Article 16].

L. Licensees are specifically allowed to conduct other licensed activities, including activities pursuant to the Hemp Manufacturing Act [N.M. Stat. Ann. Chapter 76, Article 24] and the Liquor Control Act except for co-location as specified in Subsection J of this section.

M. A person properly licensed and in good standing pursuant to the Lynn and Erin Compassionate Use Act [N.M. Stat. Ann. Chapter 26, Article 2B] on the effective date of the Cannabis Regulation Act may continue to operate pursuant to that license for medical cannabis until comparable licenses for commercial cannabis activity are available. The division shall determine when retail sales of commercial cannabis products begin, but no later than April 1, 2022. A facility of such a licensee, upon issuance of the applicable cannabis establishment license, shall constitute licensed premises of the licensee and the licensee shall be entitled to continued and uninterrupted operations of the licensed premises. As to activity under the medical cannabis program, the licensee shall continue to operate under rules promulgated for the medical cannabis program until the division promulgates rules for medical cannabis activity, and a qualified patient, primary caregiver or reciprocal participant shall not be prohibited from purchasing and obtaining cannabis products through the medical cannabis program.

N. To address a shortage of cannabis supply in the medical cannabis program, the division may:

(1)     require all cannabis establishment licensees to ensure that at least ten percent of their cannabis in stock on a monthly basis is designated for sale to qualified patients, primary caregivers and reciprocal participants;

(2)     initially take reasonable measures to expeditiously incentivize increased production of cannabis plants to remedy a shortage of cannabis supply in the medical cannabis program;

(3)     after having first exhausted measures to increase production of cannabis plants to address the shortage of cannabis supply in the medical cannabis program, exclude commercial cannabis activity from the scope of new licenses issued to initial applicants for a vertically integrated cannabis establishment, cannabis producer, integrated cannabis microbusiness, cannabis producer microbusiness or cannabis manufacturer license, which limitation shall be in force for a period of at least six months; and

(4)     require licensees who are licensed to produce cannabis to produce a specified quota of mature cannabis plants to be designated for use in the medical cannabis program; provided that:

(a) the division may require a licensee to devote no more than twenty-five percent of the licensee’s cultivated cannabis plants on a monthly basis for use in the medical cannabis program; and

(b) the division may require specific tracking of cannabis plants.

O. As used in this section, “shortage of cannabis supply in the medical cannabis program” means that the average number of cannabis plants in production in the medical cannabis program per qualified patient after June 29, 2021 is substantially less than the average number of cannabis plants in production in the medical cannabis program per qualified patient as of June 29, 2021, where:

(1)     the average number of cannabis plants in production after June 29, 2021 is measured over a period of three consecutive months; and

(2)     the average number of cannabis plants in production as of June 29, 2021 is measured over a period of three consecutive months immediately preceding June 29, 2021.

P. A person who is a member of the New Mexico senate or the New Mexico house of representatives on the effective date of the Cannabis Regulation Act shall not apply for or be granted a license to engage in any commercial cannabis activity prior to July 1, 2026.

Q. A medical cannabis legacy nonprofit corporation that was required by the department of health to organize under the provisions of the Nonprofit Corporation Act [N.M. Stat. Ann. Chapter 53, Article 8] in order to qualify for a medical cannabis license may be converted into a corporation under the Business Corporation Act [Chapter 53, Articles 11 through 18 NMSA 1978], a limited liability company under the Limited Liability Company Act [N.M. Stat. Ann. Chapter 53, Article 19], a limited partnership under the Uniform Revised Limited Partnership Act [N.M. Stat. Ann. Chapter 54, Article 2A] or a partnership under the Uniform Partnership Act (1994) N.M. Stat. Ann. § 54-1A-101 to 54-1A-1206 upon the nonprofit corporation’s filing with the secretary of state of restated articles of incorporation, articles of organization, certificate of limited partnership or statement under Section 54-1A-105 N.M. Stat. Ann.. The conversion shall be approved pursuant to an agreement of conversion in the manner provided for the conversion of a limited liability company in Section 53-19-60.1 N.M. Stat. Ann..