Legalization of cannabis in New Mexico officially takes effect

The legalization of cannabis in New Mexico went into effect yesterday, with limited personal possession and cultivation officially becoming legal for adults 21 and over.

People can now legally possess up to two ounces (56 grams) of cannabis, 16 grams of concentrates and grow up to six mature plants for personal use. But it will still be some time before retail sales are launched.

New Mexico is the first of three states where adult-use legalization is set to take effect this week. Next come Virginia and Connecticut, where new policies ending cannabis prohibition take effect on Thursday.

In New Mexico, according to a timetable released by the Division of Cannabis Control, part of the state's Department of Regulation and Licensing, regulators must establish an advisory committee and begin accepting certain marijuana business licenses by September 1.

By January 1, 2022, the division must license qualified commercial cannabis businesses and begin authorizing cannabis training and education programs. Retail sales are scheduled to begin on April 1, 2022.

New Mexico! Cannabis legalization is here.
In #NM:

✅ Possession of cannabis is legal for adults ages 21+.
✅ New Mexicans can grow up to 12 plants
✅ Retail cannabis starts no later than 4/1/22

We're transforming New Mexico's economic future for the better. #nmpol pic.twitter.com/nH3YkwDjHb

- Michelle Lujan Grisham (@Michelle4NM) June 29, 2021

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Regulators will hold the first public hearing on cannabis production rules on Tuesday.

«After decades of people being arrested for simply possessing cannabis or growing a few plants, New Mexicans can finally breathe,» said Emily Kaltenbach, senior director for the Resident States and New Mexico for the Drug Policy Alliance, in a press release. «But make no mistake, this fight is not over. We still have work to do to fully repair the damage done by prohibition, and that means advocating for equity and diversity in the new industry and coming back in the 2022 budget session to ensure that funds are available for critical reinvestment in the communities that have been most harmed.»

A few details

No limit was set on the number of licenses that could be granted under the program, nor on the number of facilities a licensee could open, although regulators could stop issuing new licenses if an advisory committee determined that «market balance is deficient».

Cannabis purchases will be subject to an excise tax of 12 % on top of the state's usual sales tax of 8 %. Starting in 2025, the excise rate will increase by 1% per year, reaching 18% in 2030. Medical cannabis products, reserved for patients and caregivers, will be exempt from this tax.

To ensure that medical patients continue to have access to medicines after the adult-use market opens, the bill allows the state to require licensed cannabis producers to reserve up to 10% of their products for patients in the event of a shortage, or to grow more plants for use in medical products.

Local governments can't completely ban cannabis businesses, as some other states have allowed. Municipalities can, however, use their local zoning authority to limit the number of retailers or their distance from schools, daycares or other cannabis businesses.