What Is a Non-Profit Producer License in New Mexico?
A New Mexico non-profit producer license is a cannabis business license issued to state-certified non-profit corporations allowing them to produce, distribute, dispense, and manufacture cannabis and cannabis-derived products and sell wholesale or through direct sale to qualified patients and primary caregivers. The non-profit producer license also permits the licensee to obtain plants, seeds, and usable cannabis from other licensed non-profit producers.
Does New Mexico Issue Non-Profit Producer Licenses?
Yes. Pursuant to NMAC 188.8.131.52, the New Mexico Department of Health (NMDOH) issues non-profit producer licenses to qualifying non-profit cannabis producer establishments operating facilities limited to a combined total of no more than 1,750 cannabis plants, excluding seedlings, and inventories of usable cannabis and seeds that reflect current patient needs. Such cannabis establishments are granted licenses to sell and distribute usable cannabis to persons or entities authorized to receive and possess it.
How to Apply for a Non-Profit Producer License in New Mexico
It is recommended that you acquaint yourself with the NMDOH licensing rules before applying for a non-profit producer license. Municipal regulations may also apply in the area where you intend to set up your cannabis production business. Municipal ordinances may influence where marijuana businesses may be located in the city or county, their hours of operation, and public health and safety. Hence, you should also research the appropriate local regulations in the city or county where your cannabis production facility will be located.
An applicant for a non-profit producer license must provide the following information and materials to the New Mexico Department of Health per NMAC 184.108.40.206:
- Organizational information and materials: These include:
- proof the applicant is in good standing with the state taxation and revenue department and the secretary of state
- copies of the organization's by-laws and articles of incorporation
- proof that the board of directors includes at least five voting members
- a list of all entities or persons with direct or indirect control over the management or policies of the business
- a list of all persons or entities with ownership interests in any property used by the applicant
- the identities and financial information, including information concerning loans and monetary investments, of all creditors with security interests in the business; a business plan showing how the business plans to fund its operations
- Production and distribution information and materials: These include:
- an attestation that production will not exceed the total cannabis plants that the applicant will be approved to produce and an inventory of usable cannabis that reflects the current patients’ needs
- a production plan that shows the applicant's strategy for growth, cultivation, and harvesting of medical cannabis
- a written set of distribution criteria for qualified patients or primary caregivers describe methods and locations of distribution
- a detailed description of the means that the applicant will use to dispense cannabis to patients and caregivers safely
- an acknowledgment that patients will not be allowed to consume cannabis or its derived products on the facility
- a declaration that the applicant will require the presentation of an NMDOH-issued ID card and valid state photo ID or passport before selling or distributing cannabis to patients or caregivers
- a sample and description of the packaging of the usable cannabis and its derived products that the facility will use, including a label that satisfies the labeling requirements of NMDOH rules
- a written quality assurance plan
- Facility information: These include:
- a description of the equipment and facilities that the applicant will use in the production, distribution of cannabis, and the manufacture of cannabis-derived products
- evidence that the facility is not within 300 feet of any church, school, or daycare center
- a description of the methods and devices that the establishment will use to provide security
- Educational methods and materials: These include:
- a description of the marijuana establishment's strategies for educating qualified patients and primary caregivers about the limitations on the right to possess cannabis
- a description of the marijuana establishment's methods for informing qualified patients or primary caregivers about the product's quality
- a description of the ingestion options for usable cannabis provided by the establishment
- a description of the inhalation techniques that the establishment will provide to qualified patients
- a description of the side effects and how the establishment will educate qualified patients and the primary caregivers about possible side effects
- a description of how the establishment will educate qualified patients and primary caregivers about how to report adverse occurrences related to medical cannabis use
- a description of how the private entity will educate qualified patients and the primary caregivers about how to report concerns about the establishment's product and services
- Business licensure; TRD Certificate: The current business license and tax revenue registration certificate are required.
- Policies and procedures: Copies of policies and procedures prepared, enacted, and to be kept on the marijuana establishment's premises are among the policies and procedures required. The applicant will attest that the establishment will follow the policies and procedures as drafted and submitted to the NMDOH.
- Personnel Records: These include:
- separate national and statewide criminal history screening documentation
- samples of the records to be retained for each employee, such as state and federal documentation, sample application for employment, sample job descriptions or employment contracts, and payment or payroll records for each individual associated with the application
- an on-site training curriculum that addresses: federal and state confidentiality laws, including HIPAA; professional conduct and ethics; LECUA and NMDOH rules; informational developments in the medical use of cannabis; and employee safety and security training addressing security measures for emergency responses.
- Proof of HIPAA certification for all persons connected with the application.
- Other materials: Any other document or information such as the name of couriers that the non-profit entity intends to use for transportation of usable cannabis and a description of the testing laboratory that the marijuana establishment will use to test the usable cannabis
All individuals associated with the application for a non-profit producer license must agree to and be subject to statewide and background checks performed by the New Mexico Department of Public Safety and nationwide criminal history checks. The applicant is liable for any costs associated with the DPS statewide and national criminal history screening. Individuals who have been convicted of felony offenses involving the trafficking or distribution of a controlled substance, or a violation of any related federal or state statute, will have their license applications rejected.
After completing the Non-Profit Producer License Application Form, submit it along with the required documentation to:
New Mexico Department of Health
5301 Central Ave. NE Suite 204
Albuquerque, NM 87108
Note that submitting a non-profit producer license application does not imply that the NMDOH will approve it. An applicant may not begin handling medical cannabis products until the Medical Cannabis Program has approved the application. Following the filing of an application, the NMDOH may conduct a verification of the information included in the application and related paperwork by performing the following procedures:
- Conducting on-site visit
- Contacting the applicant by telephone, mail, or email
- Requiring a face-to-face meeting and requesting additional identification materials if proof of identity is not clear
- Requesting further information as the NMDOH consider necessary
If the NMDOH determines that an application for licensure is incomplete, it will contact the applicant by email with details of the missing information or documents. The application will be deemed incomplete and licensing denied under the Uniform Licensing Act if the applicant fails to provide the required information or documentation within 90 days of being notified of the deficiency. Therefore, it is advised that you respond to correspondence or requests for documentation or information from the NMDOH as soon as possible. The NMDOH is authorized to reject an application for:
- Failing to submit a completed application
- Submitting incomplete, false, inaccurate, or misleading information
- Submitting materials that are illegible in whole or in part
To resume the application process, an applicant must submit a new application. Previously paid fees are non-refundable; hence, the applicant must pay new fees with each new application.
How Much Does a Non-Profit Producer License Cost in New Mexico?
In accordance with the provisions of NMAC 220.127.116.11, a non-profit producer license applicant must submit with the licensing application an application fee of $10,000. If the application is denied, the NMDOH will issue a refund of $9,000 to the applicant.
After an applicant's application for a non-profit producer license is approved, the applicant must submit a non-refundable licensure fee to the medical cannabis program no later than July 1st of each renewal year and no earlier than August 1st of each renewal year, in the following amounts:
- $40,000 for the first 500 cannabis plants possessed by the non-profit producer;
- $5,000 for each additional increment of 50 cannabis plants above 500, up to a collective total of of 1,000 cannabis plants; and
- $6,000 for each incremental addition of 50 cannabis plants above 1,000
Can Marijuana Non-Profit Producer Licensees Hold Other Cannabis Licenses in New Mexico?
There are no explicit regulations in New Mexico’s Cannabis Regulation Act restricting the type of cannabis business licenses that non-profit producer licensees may hold.