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New Mexico Is Officially Accepting Recreational Marijuana Producer Applications

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Applications are now open for businesses interested in becoming legal marijuana producers licensed by the state of New Mexico.

A day after the state released finalized rules for cannabis producers, the Cannabis Control Division announced on Wednesday that interested parties can now use an online application portal to get the process started.

“We are open for business,” Regulation and Licensing Department Superintendent Linda Trujillo said in a press release. “Effective today, businesses and entrepreneurs can use our streamlined online system to submit their application to become a producer in New Mexico’s growing cannabis industry.”

Regulators touted the modernization of the application process, as prospective producers in the state’s existing medical cannabis program previously needed to fill out multiple paper forms to apply.

“The Cannabis Control Division is committed to standing up the adult-use cannabis industry and maintaining our nationally recognized medical cannabis program in ways that support businesses, consumers and communities,” Trujillo said. “CCD has invested time and resources into developing a user-friendly application system so that producers can get to work faster. And, for consumer and worker security, our robust accountability protocols will ensure that licensees are always in compliance.”

The launch of the portal comes several days ahead of the mandated September 1 deadline for regulators to begin accepting applications.

After an application is submitted, regulators will have 90 days to issue a determination.

Adults 21 and older are currently able to possess up to two ounces of cannabis and grow up to six mature plants for personal use under a law that was enacted earlier this year, but officials were still tasked with developing regulations for the commercial market. So far, only the rules for producers have been published in the New Mexico Register, and they took effect immediately on Tuesday.

Rules for retailers, testing facilities and other cannabis sectors are still being developed and need to be finalized by January 1, 2022 in advance of the launch of sales by April.

“The Cannabis Control Division is committed to making the licensing process as easy as possible while upholding the law and ensuring the integrity of New Mexico’s cannabis industry,” Trujillo said. “We look forward to working with licensees to stand up an industry we can all be proud of.”

Most of the new regulations for producers concern licensing requirements, public safety, patient access and social equity.

For example, the Cannabis Control Division said it will ensure that 50 percent of marijuana producer licensees will meet its social equity standard, supporting communities that have been most impacted by the war on drugs.

It will also “solicit public input to create and implement a social and economic equity plan” and create that plan by October 15. It will “include guidelines to determine how to assess which communities have been disproportionately impacted, how to assess if a person is a member of a community disproportionately impacted, and proposed incentives to promote social and economic equity for applicants, licensees, and cannabis industry employees.”

The rules published in the New Mexico Register on Tuesday cover a lot of territory for producers. It sets out rules for licensing, security requirements, recalling and disposing cannabis products, transporting marijuana and testing for quality assurance.

There’s also a significant focus on ensuring that patients continue to have access to cannabis after the adult-use market opens up.

Marijuana shops must “make reasonable efforts to sell a minimum of twenty-five percent of their monthly cannabis sales to qualified patients, primary caregivers, and reciprocal participants,” according to the rules.

If there’s a cannabis shortage for patients, regulators would have the authority to take certain steps such as requiring retailers to set aside at least 10 percent of their products for the medical marijuana community or reducing the per plant fee for medical cannabis to incentivize such production.

There’s been some concern about whether New Mexico has the capacity to produce enough marijuana to meet the recreational market demand while still serving patients.

But regulators are nonetheless optimistic that they’re moving in the right direction to ensure a smooth rollout of the adult-use market while still protecting the state’s medical cannabis program.

John Blair, deputy superintendent at New Mexico’s Regulation Department, told KOAT that while there may be an initial surge in sales when the market opens up to adult-use consumers, there are provisions in the legalization law that ensure regulators “can control and ensure that every business is growing, selling, manufacturing a certain percentage of cannabis to maintain the strength and integrity of the medical cannabis industry.”

There is no set limit on the number of business licensees that could be granted under the program, or the number of facilities a licensee could open, although regulators could stop issuing new licenses if an advisory committee determines that “market equilibrium is deficient.”

Cannabis purchases will include a 12 percent excise tax on top of the state’s regular eight percent sales tax. Beginning in 2025, the excise rate would climb by one percent each year until it reached 18 percent in 2030. Medical marijuana products, available only to patients and caretakers, would be exempt from the tax.

Local governments cannot ban cannabis businesses entirely, 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.

Polling indicates New Mexico voters are ready for the policy change. A survey released in October found a strong majority of residents are in favor of legalization with social equity provisions in place, and about half support the decriminalization of drug possession more broadly.

Gov. Michelle Lujan Grisham (D) gave final approval to the cannabis legalization legislation in April, fulfilling a key goal for her administration. She had to convene a special session to ensure that lawmakers got the job done after they failed to pass legalization during the regular session.

A separate, complementary bill providing for expungements for convictions made legal under the marijuana legalization law was also passed during the special session and signed by the governor. Under it, courts must begin reopening qualifying cases within 30 days after the legislation goes into effect on January 1, 2022.

Regulators launched a website to provide information about legalization before the governor even signed the bill into law.

Lujan Grisham included cannabis legalization as part of her 2021 legislative agenda and has repeatedly talked about the need to legalize as a means to boost the economy, especially amid the coronavirus pandemic. She said during a State of the State address in January that “a crisis like the one we’ve experienced last year can be viewed as a loss or as an invitation to rethink the status quo—to be ambitious and creative and bold.”

Additional pressure to end cannabis prohibition this year came from neighboring Arizona, where sales officially launched in January after voters approved a legalization ballot initiative last year. To New Mexico’s north is Colorado, one of the first states to legalize for adult use.

New Mexico’s House in 2019 approved a legalization bill that included provisions to put marijuana sales mostly in state-run stores, but that measure died in the Senate. Later that year, Lujan Grisham created a working group to study cannabis legalization and issue recommendations.

In May of last year, the governor signaled she was considering actively campaigning against lawmakers who blocked her legalization bill in 2020. She also said that she was open to letting voters decide on the policy change via a ballot referendum if lawmakers didn’t send a legalization bill to her desk.

Congress Should Protect Small Marijuana Businesses From Big Tobacco Takeover, Colorado Attorney General Says

Photo courtesy of Mike Latimer.

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Congressman Files New Marijuana Banking Reform Amendment To Large-Scale House Bill

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The House sponsor of a bill to protect banks that work with state-legal marijuana businesses announced on Friday that he is seeking to attach an amendment containing the reform to a broader bill dealing with research and innovation in the tech and manufacturing sectors.

Rep. Ed Perlmutter (D-CO), sponsor of the Secure and Fair Enforcement (SAFE) Banking Act, has expressed interest in finding another vehicle to pursue his proposal after it was stripped from a separate defense bill late last year. The congressman’s legislation has cleared the House in five forms at this point, only to stall in the Senate.

His latest attempt to get the reform enacted is by filing an amendment with the SAFE Banking language to the America COMPETES Act, which does not deal specifically with cannabis issues as drafted but was introduced in the House this week.

“Cannabis-related businesses—big and small—and their employees are in desperate need of access to the banking system and access to capital in order to operate in an efficient, safe manner and compete in the growing global cannabis marketplace,” Perlmutter, who is retiring from Congress after this session and committed to passing his bill first, said in a press release.

“The SAFE Banking Act is the best opportunity to enact some type of federal cannabis reform this year and will serve as the first of many steps to help ensure cannabis businesses are treated the same as any other legal, legitimate business,” he said. “I will continue to pursue every possible avenue to get SAFE Banking over the finish line and signed into law.”

It remains to be seen whether the America COMPETES Act will serve as a more effective vehicle for the cannabis banking bill than the National Defense Authorization Act (NDAA), where the language was successfully attached on the House side but later removed amid bicameral negotiations. Perlmutter said at the time that Senate leadership, which is working on comprehensive legalization legislation, was to blame for the decision to remove his amendment from the proposal.

The new SAFE Banking Act amendment will still need to be made in order by the House Rules Committee in order to be formally be considered on the House floor when the body takes up the research and innovation package. The deadline to file amendments was Friday, and the panel is set to take them up starting on Tuesday.

Even some Republicans are scratching their heads about how Democrats have so far failed to pass the modest banking reform with majorities in both chambers and control of the White House. For example, Rep. Rand Paul (R-KY) criticized his Democratic colleagues over the issue last month.

In the interim, federal financial regulator Rodney Hood—a board member and former chairman of the federal National Credit Union Administration (NCUA)—recently said that marijuana legalization is not a question of “if” but “when,” and he’s again offering advice on how to navigate the federal-state conflict that has left many banks reluctant to work with cannabis businesses.

Ohio Lawmakers Will Be Forced To Consider Marijuana Legalization As State Validates Activist Signatures

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Ohio Lawmakers Will Be Forced To Consider Marijuana Legalization As State Validates Activist Signatures

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Ohio activists have collected enough signatures to force the legislature to take up the issue of marijuana legalization, the secretary of state’s office confirmed on Friday.

This comes about two weeks after the Coalition to Regulate Marijuana Like Alcohol (CTRMLA) submitted a final round of signatures for the measure. The petitions’ formal validation triggers the legislative review of legalization, but it does not require lawmakers to enact the reform.

The legislature now has four months to consider the campaign’s cannabis reform proposal. Lawmakers can adopt the measure, reject it or pass an amended version. If they do not pass the measure, organizers can then collect an additional 132,887 valid signatures from registered voters to place the issue on the ballot in November.

CTRMLA previously submitted petitions for the initiative but the state said they were short some 13,000 signatures, requiring activists to go back and make up the difference.

“We are ready and eager to work with Ohio legislators over the next four months to legalize the adult use of marijuana in Ohio,” CTRMLA spokesman Tom Haren said in a press release. “We are also fully prepared to collect additional signatures and take this issue directly to voters on November 8, 2022, if legislators fail to act.”

The measure that lawmakers will be required to consider would legalize possession of up to 2.5 ounces of cannabis for adults 21 and older, and they could also have up to 15 grams of marijuana concentrates. Individuals could grow up to six plants for personal use, with a maximum 12 plants per household.

A 10 percent sales tax would be imposed on cannabis sales, with revenue being divided up to support social equity and jobs programs (36 percent), localities that allow adult-use marijuana enterprises to operate in their area (36 percent), education and substance misuse programs (25 percent) and administrative costs of implementing the system (three percent).

A Division of Cannabis Control would be established under the state Department of Commerce. It would have authority to “license, regulate, investigate, and penalize adult use cannabis operators, adult use testing laboratories, and individuals required to be licensed.”

The measure gives current medical cannabis businesses a head start in the recreational market. Regulators would need to begin issuing adult-use licenses to qualified applicants who operate existing medical operations within nine months of enactment.

The division would also be required to issue 40 recreational cultivator licenses and 50 adult-use retailer licenses “with a preference to applications who are participants under the cannabis social equity and jobs program.” And it would authorize regulators to issue additional licenses for the recreational market two years after the first operator is approved.

Individual municipalities would be able to opt out of allowing new recreational cannabis companies from opening in their area, but they could not block existing medical marijuana firms even if they want to add co-located adult-use operations. Employers could also maintain policies prohibiting workers from consuming cannabis for adult use.

Further, regulators would be required to “enter into an agreement with the Department of Mental Health and Addiction Services” to provide “cannabis addiction services,” which would involve “education and treatment for individuals with addiction issues related to cannabis or other controlled substances including opioids.”

With respect to social equity, some advocate are concerned about the lack of specific language on automatic expungements to clear the records of people with convictions for offenses that would be made legal under the legislation. That said, it does include a provision requiring regulators to “study and fund” criminal justice reform initiatives including expungements.

Ohio voters rejected a 2015 legalization initiative that faced criticism from many reform advocates because of an oligopolistic model that would’ve granted exclusive control over cannabis production to the very funders who paid to put the measure on the ballot.

Activists suspended a campaign to place another measure on the 2020 ballot due to the coronavirus pandemic.

Aside from the new voter initiative, state lawmakers from both parties are separately working to advance marijuana reform.

legalization bill that was the first of its kind to be introduced in the Ohio legislature last year would legalize the possession, sale and cultivation of cannabis by adults. It’s being championed by Reps. Casey Weinstein (D) and Terrence Upchurch (D).

A pair of Ohio Republican lawmakers similarly filed a bill to legalize marijuana in the state in December. Reps. Jamie Callender (R) and Ron Ferguson (R) first announced their plan to push the legislative reform proposal in October and circulated a co-sponsorship memo to build support for the measure.

There are also additional local reform efforts underway in Ohio for 2022.

After voters in seven cities approved ballot measures to decriminalize marijuana possession during last November’s election—which builds on a slew of previous local reforms in the state—campaigns are now looking to enact decriminalization in Marietta, Rushville, Rutland, Shawnee, McArthur and Laurelville.

Ohio marijuana activists already successfully proved that they turned in enough valid signatures to put a local decriminalization initiative before Kent voters after having missed the 2021 ballot due to a verification error on the part of county officials. That measure is now expected to go before voters this November.

Top Federal Drug Official Says Marijuana Use ‘Stable’ Among Youth At Prohibitionist-Hosted Panel Sponsored By D.A.R.E.

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Top Federal Drug Official Says Marijuana Use ‘Stable’ Among Youth At Prohibitionist-Hosted Panel Sponsored By D.A.R.E.

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A top federal drug official participated in a panel hosted by a prohibitionist group and sponsored by D.A.R.E.—and she again reiterated that data shows youth marijuana use has remained stable “despite the legalization in many states.”

While National Institute on Drug Abuse (NIDA) Director Nora Volkow expressed concerns about certain cannabis trends related to potency, commercialization and use by pregnant women, she affirmed that surveys funded by her own federal agency have demonstrated that adolescent marijuana use is “stable,” despite repeated arguments from prohibitionists that legalization would lead more young people to experiment with cannabis.

The event was hosted by Smart Approaches to Marijuana (SAM), an anti-legalization group. SAM President Kevin Sabet and the organization’s co-founder former Rep. Patrick Kennedy (D-RI) led the discussion.

Sabet said that data on youth use has showed varying results in states that have legalized cannabis and asked Volkow to weigh in on the issue. She replied that federal data “have not been able to see large differences in terms of prevalence” of cannabis consumption among young people in legal and non-legal states.

The official made similar comments in an interview with Marijuana Moment late last year.

That said, Volkow said that they have seen some differences when it comes to consumption rates among adolescents for edible cannabis products.

“But the effects are not large, and one of the things that also certainly surprised me [is] the rate overall, the prevalence rates of marijuana use among teenagers, have been stable despite the legalization in many states,” she said, adding that there are some concerns about increased frequency of use and limitations in data collection with respect to dosages being taken.

Volkow also commented on a recent federally funded survey that found illicit drug use by young people has taken a significant plunge in the last year, though she largely attributed that to the reduced social interaction resulting from COVID-19 policies across the country.

“Interestingly what we’ve observed during the COVID pandemic is, across schools in the United States, the prevalence of drug use has gone down,” she said, “which likely very much reflects the fact that kids don’t have the opportunity to interact with others, and drug taking at that stage is a peer pressure behavior.”

The official also briefly addressed the fact that she feels criminalizing people over drugs in the first place is the wrong policy approach—a point she’s made repeatedly in interviews and blog posts.

She said that “criminalization has created a system for that allows a structural racism to be implemented, you can control people, and that’s a horrible policy. This criminalization actually opens up our eyes that well, yes, we need to change that.”

However, she said that “liberalizing and making the drugs widely available, with no counter messaging,” is not the alternative she would recommend.

While the SAM-hosted event did not touch specifically on psychedelics policy, Volkow has also recently discussed that issues, especially as data has shown an increase in use of the substances among adults.

She said people are going to keep using substances such as psilocybin—especially as the reform movement expands and there’s increased attention being drawn to the potential therapeutic benefits—and so researchers and regulators will need to keep up.

Volkow also mentioned that NIDA is “pleased” the Drug Enforcement Administration recently announced plans to significantly increase the quota of certain psychedelic drugs to be produced for use in research.

USDA Teams Up With Cornell University For Hemp Education Webinar Series

Photo courtesy of Philip Steffan.

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