Foley Hoag: New Mexico Legalizes on the Heels of New York

New Mexico Legalizes on the Heels of New York

New Mexico has recently followed the likes of ArizonaNew JerseyVirginia, and New York in becoming the 17th state to legalize adult use cannabis. Indeed, New Mexico became the second state in 24 hours to legalize adult use cannabis, following New York’s efforts the day before. Specifically, HB 2, passed the Senate and House by a vote of 22-15 and 38-32 respectively.

The fundamental provisions of the adult-use law passed by New Mexico include:

  • Adults 21 and over may purchase and possess up to: (1) two ounces of cannabis; (2) 16 grams of cannabis concentrates; and (3) 800 milligrams of infused edibles.
  • Home cultivation of up to six mature plants (twelve per household).
  • Adult use sales to commence by no later than April 1, 2022.
  • Licensing rules to be presented by January 1, 2022.
  • No hard caps on the number of licenses, but de facto soft caps predicated upon a determination by regulators as to market saturation.
  • Taxation including 8 percent sales tax and 12 percent excise tax, with the excise rate climbing by 1 percent per year until capping at 18 percent.
  • Reservation by existing medical operators of 10 percent of all products for patients in the event of a shortage.
  • Local control – municipalities may not prohibit cannabis uses, but may limit by zoning.

New Mexico’s medical cannabis patient population totaled 104,655 as of the end of 2020.

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