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New Mexico is the Next State to Legalize Adult-Use Cannabis

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New Mexico is the Next State to Legalize Adult-Use Cannabis

After calling for a special session at the end of March, Governor Lujan Grisham received a legalization bill. And she signed it into law. New Mexico is the third state in a matter of weeks to legalize adult-use cannabis this year. Surprisingly, it’s been through legislation, not voters. It shows a more openness to reform and that encourages people every day. 

House Bill 2

After HB 12 stalled in the Senate, the governor called for a special session. In that special session, HB 2 came forward. It offers some of the same rules and regulations HB 12 had. But a lot of the language for social equity became part of a separate bill. Many lawmakers who originally stalled HB 12 were concerned about the scope that HB 12 was taking on. There was too much happening in one bill, they said. So HB 12 became two separate bills. HB 2 became the first bill signed into law. The other bill on expungement and social equity won’t be far behind. 

Specifics

Let’s break down HB 2.

  • Citizens over 21 can purchase and possess up to 2 ounces of raw cannabis, 16 grams of concentrate, and 800mg of infused edibles
  • 12 home grown plants are allowed. Six can be mature
    • Any home grown cannabis cannot be sold or bartered
  • Advertising toward anyone under 21 is prohibited. Cartoons and other imagery enticing children is forbidden
    • Also no billboard advertising or any public medica within 300 feet of a school, daycare, or church.
  • There will be no limit on the number of businesses, though regulators can stop issuing new licenses. But only under the recommendation of the advisory board.
  • Microbusinesses, which grow less than 200 plants, can operate fully under one license
  • A 12 percent excise tax is set for all sales on top of the 8 percent state sales tax
    • Starting in 2025, the tax will increase one percent each year until it reaches 18 percent in 2030
    • Medical cannabis sales are exempt
  • Local governments cannot ban any businesses
    • However, they can use their local zoning authority to limit the number of retailers and the distance from schools, daycares, and other cannabis businesses
  • Tribal governments can participate in the state cannabis industry
  • A Cannabis Control Division will be established.
    • They will run under the Regulation and Licensing Department
    • By the end of September 2021, a cannabis regulatory advisory committee will begin

Lawmaker Excitement

While it seems like a lot for one bill to handle, HB 2 is just the groundwork for legalization. Governor Michelle Lujan Grisham said in a press release:

“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. We are going to increase consumer safety by creating a bona fide industry. We’re going to start righting past wrongs of this country’s failed war on drugs. And we’re going to break new ground in an industry that may well transform New Mexico’s economic future for the better.”

The original sponsor of HB 12, Representative Javier Martinez, also expressed excitement over HB 2’s passage and legalization.

“Today, New Mexico seized a once-in-a-lifetime opportunity to establish a multi-million industry with a framework that’s right for our state and will benefit New Mexicans for generations to come. Not only are we launching a burgeoning industry that will strengthen our economy, create jobs and generate tax dollars, but we are doing so in an equitable way that will curb the illicit market and undo some damage of the failed war on drugs.”

Future

Sales will begin on April 1, 2022, about a year from now. Licensing rules will be established on January 1, 2022 and licenses will be issued no later than the start of sales. 

It’s exciting to see the changes happening in New Mexico, New York, and Virgina all so close together. Hopefully other states will follow soon.

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