New Mexico Prepares for an Influx of Cannabis Businesses
All across the country, as states pass various new laws regarding the sale and consumption of cannabis, new businesses spring up to meet these changing needs.
From retail outlets to lounges where the products can be enjoyed (regardless of the state’s existing smoking laws), business owners in cannabis-friendly states have been using their imagination to come up with ways to serve their new potential customers and audience.
The ideas for their businesses, however, can vary wildly from state-to-state depending on the specific laws and regulations, as well as the availability of cannabis in the area, and New Mexico is no exception.
New Mexico’s New Cannabis Laws
New Mexico is one of the newest states to pass laws permitting the sale and use of recreational cannabis for adults 21 and over. On April 12, 2021, Governor Michelle Lujan Grisham signed The Cannabis Regulation Act (or House Bill 2) that legalizes the use of recreational marijuana for adults over 21 years and older, as well as the sale thereof.
The law specifically enables the state to launch a fully-regulated cannabis market, which (according to Vox) will be taxed at levels beyond the state’s current sales tax. This will impact the price of cannabis, but will create an additional revenue stream for the state as a whole, which is a large motivating factor behind many states passing legislation around recreational cannabis.
This isn’t New Mexico’s first encounter with cannabis legislation, however. Back in 2007, the state passed an earlier bill allowing for the use of medical marijuana under carefully monitored circumstances, not dissimilar to other prescription medications or controlled substances. This bill, however, did not allow for the possession of cannabis for any other purpose, nor did it allow for cannabis retail (as opposed to controlled pharmaceutical distribution). The purpose of these new laws, as a result, are to broaden both the availability and accessibility of marijuana products throughout the state.
How Do These Laws Affect New Mexico Businesses?
With the passing of these laws, potential small business owners in New Mexico are chomping at the bit for their chance to get involved in this newest industry — but it might not be that easy.
The New Mexico Political Report explains that, even though House Bill 2 has been successfully passed into law, the law doesn’t actually take effect until June 29, 2021, and sales can’t legally begin until April 2022. This means that, even if businesses were to go through the necessary licensing process and the usual undertakings that accompany opening a business, they would not legally be able to deal in cannabis until spring of 2022.
Licenses, funding, and other business needs will also be impacted by these deadlines. Local business financing provider Aery Group explained in a recent blog post that applications for new cannabis businesses won’t be accepted by the state government until September 1, 2021. This may come with a few caveats, as it’s currently rumored that licenses may be issued to more rural areas first before bigger metropolitan areas can receive them.
So what does this mean for your potential cannabis business? Patience. The law is passed, and that is good news indeed — but it might take some time before the big ‘green rush’ that has gripped so much of the country can come to New Mexico.
When it does, however? It’ll all be worth it.
