Cannabis Business in New Mexico

New Mexico's cannabis market operates under a comprehensive framework that governs both adult-use and medical cannabis. Adults aged 21 and over can legally purchase, possess, and consume cannabis, with all commercial cannabis activities regulated by the Cannabis Control Division (CCD). The state’s cannabis laws ensure compliance from cultivation through to sale, making New Mexico a structured environment for businesses looking to enter or expand in the industry.

In September of 2024, New Mexico’s cannabis industry generated $46.8 million in total sales, with $35.7 million from adult-use cannabis and $11.1 million from medical cannabis. The state had 1,006 licensed dispensaries by the 3rd Quarter of the same year.

Recreational and Medical Marijuana Licensing in New Mexico

The state of New Mexico does not limit the number of cannabis licenses that can be issued. Local governments can set reasonable restrictions based on time, place, and manner, but they can't completely prohibit cannabis businesses. Consumption areas are an exception to this rule; local jurisdictions have the option to ban them.

New Mexico issues various cannabis business licenses, including:

• Personal Production License: Authorizes registered medical marijuana patients to cultivate medical cannabis in a designated location.
• Adult-Use Cannabis Producer License: Permits the cultivation of cannabis plants, possession of tested unprocessed cannabis products, transportation of unprocessed cannabis products to other licensed cannabis premises, and wholesale of cannabis products.
• Adult-Use Cannabis Manufacturer License: Authorizes the processing of uncultivated cannabis into various products, packaging of cannabis products, possession of tested cannabis products, and the acquisition, sale, or transport of wholesale cannabis products to other licensed cannabis establishments.
• Adult-Use Cannabis Retailer License: Allows the sale of cannabis products to qualified patients, primary caregivers, reciprocal participants, or directly to cannabis consumers.
• Vertically Integrated Cannabis Establishment License: Permits the licensee to operate as a cannabis courier, manufacturer, producer, and retailer.
• Cannabis Producer Microbusiness License: Allows the licensee to operate as a cannabis producer on a single licensed premise with a limit of 200 mature cannabis plants at any given time.
• Integrated Cannabis Microbusiness License: Authorizes the licensee to engage in one or more of the following activities: cannabis production (limited to 200 mature plants), manufacturing, sales and transportation of their manufactured or produced products, operating a single retail establishment, and couriering cannabis products to qualified individuals.
• Adult-Use Cannabis Courier License: Permits the transportation of cannabis products to qualified patients, primary caregivers, reciprocal participants, or consumers.
• Cannabis Consumption Area License: Authorizes the operation of an area where cannabis products can be consumed.
• Cannabis Research Laboratory License: Permits the production and possession of cannabis and cannabis products for research purposes, specifically to study cultivation, characteristics, and uses.
• Cannabis Testing Laboratory License: Allows the sampling, collection, testing, and transportation of cannabis products for testing purposes.
• Non-Profit Producer License: Enables licensed entities to cultivate, extract, process, produce, and dispense medical cannabis products to registered patients.
• Medical Cannabis Manufacturer License: Authorizes the manufacture, packaging, transportation, and testing of cannabis products. It also allows for obtaining, purchasing, selling, and transporting cannabis products to other cannabis establishments and preparing products for personal production license holders.
• Medical Cannabis Courier License: Permits the delivery of cannabis from licensed non-profit producers to qualified medical cannabis patients.
• Medical Cannabis Testing License: Allows the testing of cannabis from registered medical cannabis businesses to ensure compliance with testing regulations.

Applicants must submit their applications online, and paper applications are not accepted. A background check is required for all controlling individuals in a cannabis business, and certain felony convictions can disqualify someone from obtaining a license.

CBD and Hemp Licensing in New Mexico

In New Mexico, CBD products derived from hemp are legal, as long as they contain less than 0.3% THC. However, CBD derived from marijuana is only legal for medical marijuana patients. Individuals and businesses involved in cultivating, extracting, or producing hemp products must obtain separate licenses. The New Mexico Department of Agriculture (NMDA) is responsible for issuing licenses to cultivators, while the New Mexico Environment Department (NMED) handles licenses for processors, extractors, and manufacturers. Both the NMDA and the NMED have established specific requirements for obtaining licenses, including background checks and adherence to local ordinances. Businesses involved in these activities must also comply with the state’s labeling requirements for CBD products.

Cannabis Industry Social Equity in NM

New Mexico is committed to fostering diversity and inclusivity within its cannabis industry. The state doesn't impose caps on the number of licenses issued and has adopted measures to encourage participation from communities disproportionately impacted by cannabis prohibition. The CCD actively promotes participation from individuals in underserved communities. They also provide support to microbusinesses, including a logo that identifies products from small New Mexico cannabis businesses, making it easier for consumers to support them. This focus on social equity aims to create a more equitable and representative cannabis industry in the state.