Opportunities in the New Mexico Cannabis Market

New Mexico has long been at the forefront of the evolving cannabis since it became one of the first states to allow medical-use cannabis in 2007. Now, the state is fully entering the industry with the signing of legislation to legalize the recreational use of cannabis. The signing of the Cannabis Regulation Act in New Mexico follows the legalization of adult-use cannabis in states like New York, New Jersey, and Montana, and many hope it will provide a boost to the state economy.

“The legalization of adult-use cannabis paves the way for the creation of a new economic driver in our state with the promise of creating thousands of good paying jobs for years to come,” said Governor Michelle Lujan Grisham. “We’re ready to break new ground. We’re ready to invest in ourselves and the limitless potential of New Mexicans. And we’re ready to make this industry a successful one that helps transform New Mexico’s economic future for the better.”

Cannabis Regulation Act

The Cannabis Regulation Act officially legalized recreational cannabis in the state. As of June 29, adults 21 years of age and older will be allowed possess up to two ounces of cannabis. Additionally, adults will be permitted to home grow up to 12 cannabis plants, as long as cultivation is not visible from outside the home. Smoking in public is prohibited and smoking is currently restricted to private residences, although New Mexico plans to establish cannabis consumption areas. The state also signed legislation to decriminalize cannabis and initiate an expungement process for eligible criminal records.

The Cannabis Regulation Act created a comprehensive licensing, taxing, and enforcement regulatory structure for adult-use cannabis in New Mexico that will be administered by the Cannabis Control Division (CCD), which is located in the Regulation and Licensing Department. Recreational sales will begin no later than April 1, 2022 for licensees approved by the CCD.

Once the regulations are established, the CCD will begin accepting and processing licenses for commercial cannabis producers no later than September 2021. In addition to current taxes on sales, an excise tax will be placed upon cannabis sales that starts at 12% and rises to 18%, though taxes will be waived on medical cannabis sales.

The following cannabis business license types have been announced: Courier; Manufacturer; Producer; Producer Microbusiness; Retailer; Consumption Areas; Research Laboratory; Testing Laboratory; Integrated Cannabis Microbusiness; and Vertically Integrated Cannabis Establishments.

New Mexico Cannabis

The legalization of adult-use cannabis is spreading quickly through the United States, and New Mexico is only one of many states that have signed legislation in support of cannabis this year. Like other states which have legalized, the New Mexico economy will likely see a nice boost in the coming years. Once the law has been fully implemented, the market value of the New Mexico cannabis market could reach $342 million to around $1 billion by 2026. New Mexico’s existing medical cannabis industry has also been thriving and reported over 112,000 patients enrolled in the program as of March.

Many looking to open cannabis businesses in the state are considering property in areas that border Texas, which has only legalized medical-use cannabis products for a limited number of conditions. The tourism industry is on the rise since states have begun to reopen from the pandemic, and cannabis tourism is increasing in popularity. The cannabis tourism industry in Colorado has seen multiple dispensaries pop up in the border towns of non-legal states, and this will likely be the case in New Mexico as well.

The future is promising for the cannabis industry in New Mexico and those applying for a cannabis business license are already preparing for the licensing process. It will be important to hire an expert in the industry to ensure success in securing one of New Mexico’s first recreational cannabis business licenses.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group have over 30 years of security experience and expertise. Sapphire has worked in 34 states, including New Mexico, and has aided in submitting over 400 cannabis business applications. Follow us on social media to stay up to date with New Mexico cannabis industry updates!