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new mexico marijuana Laws 

New Mexico Marijuana Laws

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House bill 2 has passed

​In April 2021, Governor Michelle Grisham signed into law House Bill 2 legalizing recreational marijuana within the state. Local governments would not be authorized to ban marijuana businesses entirely, but hold the right to limit the number of cannabis retailers. However, there is no cap on licenses for marijuana businesses currently.

Target date for retail sales of marijuana products is April 1, 2022.

This bill allows for the purchase and possession of up to 2 ounces of cannabis, 16 grams of concentrates, as well as up to 800 milligrams of THC within edibles.

A cap of 12 total plants are allowed to be cultivated in a residence, as long as they are not in public view. 

New Mexico’s medical marijuana program has nearly 80,000 patients as of November 2019. There are 98 medical dispensary locations across 20 counties as of August 2019, according to NMDOH. New Mexico’s Medical Marijuana Program has one of the most robust distribution networks in the country, with a patient-to-dispensary ratio of 1 store for every 787 patients.

Available License Types

  • Cannabis Retailer license

Fee of up to $2,500, with an additional $1,000 per each licensed premises. 

  • Cannabis Producer license

Fee of up to $2,500, with an additional $1,000 per each licensed premises. 

  • Cannabis Manufacturer license 

Fee of up to $2,500, with an additional $1,000 per each licensed premises. 

  • Cannabis Courier license 

Fee of up to $1,500 with an additional $1,000 per each licensed premises. 

  • Cannabis Testing Laboratory license 

Fee of up to $2,500, with an additional $1,000 per each licensed premises.

  • Vertically Integrated Cannabis Establishment license

Application fee of up to $125,000. Licensing fee of up to $7,500 with an additional $1,000 per each licensed premises. 

  • Cannabis Producer Microbusiness license

Fee of up to $1,000. 

  • Integrated Cannabis Microbusiness license

Fee of up to $2,500, with an additional $500 per licensed premises. 

Medical Marijuana 

Applications included Non-Profit Producer, Manufacturer, and Courier Licenses.

  • As an example, a non-profit producer that is licensed submitted a non-refundable license fee of: $30,000 for the first 150 cannabis plants

  • $10,000 for each additional 50 plants - maximum of 450 plants.

Medical marijuana purchases are exempt from excise tax.

Qualifying Conditions 

New Mexico’s Department of Health currently lists 28 qualifying conditions. They are:

  1. Alzheimer's Disease

  2. Amyotrophic Lateral Sclerosis (ALS)

  3. Autism Spectrum Disorder

  4. Cancer

  5. Crohn's Disease

  6. Damage to the Nervous Tissue of the Spinal Cord 

  7. Epilepsy/Seizure Disorder

  8. Friedreich's Ataxia

  9. Glaucoma

  10. Hepatitis C Infection currently receiving antiviral therapy

  11. HIV or AIDS

  12. Hospice Care

  13. Huntington’s disease

  14. Inclusion Body Myositis

  15. Inflammatory Autoimmune-mediated Arthritis

  16. Intractable Nausea/Vomiting

  17. Lewy Body Disease

  18. Multiple Sclerosis

  19. Obstructive Sleep Apnea

  20. Opioid Use Disorder

  21. Painful Peripheral Neuropathy

  22. Parkinson’s disease

  23. Post-Traumatic Stress Disorder

  24. Severe Anorexia/Cachexia

  25. Severe Chronic Pain

  26. Spasmodic Torticollis (Cervical Dystonia)

  27. Spinal Muscular Atrophy

  28. Ulcerative Colitis

Book a consultation with one of our experts and let us guide you. 


In April 2007, Governor Bill Richardson signed into law Senate Bill 523, the Lynn and Erin Compassionate Use Act, allowing patients and caregivers access to medical marijuana with a physician’s recommendation, regulated by the New Mexico Department of Health (NMDOH). State licensed businesses may grow, process, transport, and dispense medical marijuana. 

On April 3, 2019, Governor Michelle Lujan Grisham signed SB 323 into law to decriminalize marijuana possession in New Mexico. Penalties for possession of up to a half-ounce of marijuana will be decreased to a $50 fine instead of jail time, treated as a penalty assessment misdemeanor and not considered a criminal conviction. The law went into effect July 1, 2019. 

On January 24, 2019, state Representative Javier Martínez introduced House Bill 356, also known as the Cannabis Regulation Act, to legalize recreational marijuana in New Mexico. The bill stalled in the Senate without a vote as the legislative session ended on March 16, 2019, effectively killing the bill. 

As of October 31st, the NMDOH Medical Cannabis Program had more than 78,000 patients.  New Mexico’s Medical Marijuana Program totaled $106 million in 2018. Under the current program design, the Medical Marijuana Program’s total industry revenues are projected to reach $131 million by the end of 2019. If the program allowed patients to fully access medical cannabis, the industry could achieve over $290 million in sales by the end of 2019.

Amount/types of licenses issued/available

As of November 2019, legalization of recreational marijuana is said to lead to 11,000 jobs and bring in $54 million in tax revenue to the state. Licensed Non-Profit Producers (LNPP) application process is closed. NMDOH is not accepting applications from businesses interested in producing and distributing medical marijuana.

New Mexico amended its hemp production laws on April 1, 2019, allowing for production, research, and manufacturing of hemp-derived cannabidiol (CBD) in the state.

how to start a marijuana business in new mexico

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in New Mexico, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities.