The New Mexico Legislature introduced HB356 which legalizes recreational marijuana and establishes a regulatory framework for the licensing and oversight of marijuana cultivators, retailers, processors, testing labs, transporters and microbusinesses by the Cannabis Control Division. The legislation requires the Division to adopt rules by July 1, 2020. The Division is also directed to establish an advisory committee to help draft the regulations by September 1, 2019. Temporary licenses must be granted by January 1, 2020, and permanent licenses must be issued by January 1, 2021.
The legislation is comprehensive and should be read carefully by interested parties. Below are 6 things that cannabis businesses should know about New Mexico’s marijuana legalization bill.
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The bill allows for areas within a retail store where marijuana may be consumed.
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Tax revenues will be used to provide medical marijuana to New Mexico residents who are diagnosed with debilitating medical conditions.
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Commercial marijuana licensees must sell both recreational and medical marijuana products.
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As a condition of licensing, the licensee must use 50% captured, active, passive or natural solar energy or recycled water to produce cannabis or otherwise in the business licensed,
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A local jurisdiction may ONLY prohibit the operation of a recreational marijuana retailer or microbusiness.
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The state will charge a 9% cannabis excise tax on the purchase price of recreational marijuana; a municipality may impose a municipal cannabis tax of no more than 3%; and a county may impose a county cannabis tax of no more than 3%