New Mexico Register / Volume XXXII,
Issue 24 / December 28, 2021
This is an
amendment to 16.8.2 NMAC, amending and
renumbering Sections 29 to Section 43 and adding new Sections 36 through 43,
effective 12/28/2021.
[A. License
Types: The division may license four classes of manufacture:
(1) Class
I: A licensee that only packages or repackages cannabis products, or labels or
relabels the cannabis product container;
(2) Class
II: A licensee that conducts Class I activities, and manufactures edible
products or topical products using infusion processes, or other types of
cannabis products other than extracts or concentrates, and does not conduct
extractions;
(3) Class
III: A licensee that conducts Class I and Class II activities, and extracts
using mechanical methods or nonvolatile solvents; and
(4) Class IV: A licensee that conducts Class I, Class II,
and Class III activities, and extracts using volatile solvents or supercritical
CO2.
B. Division application forms: All applications
for licensure authorized pursuant to the Cannabis Regulation Act shall be made
upon current forms prescribed by the division using the online application
portal.
C. License required: Unless licensed
pursuant to the Cannabis Regulation Act and division rules, a person shall not
manufacture cannabis extract, unless for personal use pursuant to Section
26-2C-31, NMSA.
D. Other activities prohibited: Except as
provided in Subsection BB of 16.8.2.8 NMAC, no cannabis manufacturer
establishment licensee may produce cannabis, courier cannabis or cannabis
products, or engage in the retail sale of cannabis or cannabis products unless
the licensee has properly applied for, and the division has approved, the
applicable license type required for those activities.
E. Prohibited additives: A
manufacturer shall not manufacture or distribute a product that is intended
to be consumed
by inhalation that includes polyethylene glycol, polypropylene glycol,
vitamin E acetate,
or medium chain triglycerides. A manufacturer shall not combine nicotine, caffeine, or any other addictive
substance with a cannabis
product. This prohibition shall not apply to the combination of cannabis with sugar,
or a product in which caffeine is naturally occurring, such as coffee,
tea, or chocolate.]
[16.8.2.29 NMAC – N/E, 09/08/2021; N, 12/28/2021]
16.8.2.30 APPLICATION
REQUIREMENTS FOR CANNABIS MANUFACTURER LICENSE:
[A. An initial application or renewal for
cannabis manufacturer licensure shall include the following:
(1) Contact information for the applicant and the cannabis establishment,
to include:
(a) applicant’s full legal name;
(b) applicant’s mailing address;
(c) applicant’s contact
telephone number;
(d) applicant’s contact email address;
(e) applicant’s business physical address and mailing address, if
different;
(f) applicant’s business legal name, including a DBA name if applicable;
(g) applicant’s business web address, if applicable;
(h) applicant’s business hours of operation;
(i) name and contact information for each controlling person;
(j) demographic data
pursuant to the Cannabis Regulation Act; and
(k) license type sought
(Class I, Class II, Class III, or Class IV);
(2) proof the applicant or each controlling person is at least 21 years of
age, which shall include identification issued by a federal or state government
that includes the name, date of birth, and picture of the applicant or
controlling person;
(3) legible and
accurate diagram containing information required by Subsection 16.8.2.32 NMAC
and description of the location of the land
or facility to be used for the cannabis establishment and the method(s)
to be used to manufacture cannabis (extraction, infusion, packaging, labeling),
including a description of extraction and infusion methods, in a portable
document format (.pdf), and if requested by the division, digital photographic
photos;
(4) fully executed and
dated documentation of the applicant’s ownership or legal authority to use the property, buildings, or other facilities,
establishing the applicant is, or will be, entitled to possession of the
premises for which the application is made;
(5) demonstration of a
legal right to use the quantity of water that the division determines is needed
for cannabis manufacturing, as evidenced by either:
(a) documentation from a water provider
that the applicant has the right to use water from the provider and that the
use of water for cannabis manufacturing is compliant with provider's rules, or
(b) documentation from the office of the
state engineer showing that the applicant has a valid and existing water right,
or a permit to develop a water right, at the proposed place of use of the
cannabis establishment. The documentation may include any of the following:
(i) a state engineer permit or license
in good standing, but not including a permit issued pursuant to Sections
72-12-1, -1.1, -1.2, or -1.3, NMSA 1978;
(ii) a
subfile order or decree issued by a water rights adjudication court;
(iii) the
findings of an office of the state engineer hydrographic survey; or
(iv) other
documentation the office of the state engineer has deemed in writing as
acceptable to the office of the state engineer under this rule.
(6) a
copy of a current business license, fire inspection report, and zoning
approval;
(7) if
applicable, certification the applicant is in good standing
with the New Mexico secretary of state,
including all documents filed with the New Mexico secretary of state;
(8) a list of all
controlling persons, a list of other current or prior licensed cannabis
businesses, documentation of the applicant’s or a controlling person legal name
change, and criminal history screening documents as set forth in 16.8.2.9 NMAC
and the Cannabis Regulation Act;
(9) a
detailed description of any criminal convictions of the applicant and any
controlling person, including the date of each conviction, dates of incarceration,
probation or parole, if applicable, description of the offense, and statement
of rehabilitation of each conviction;
(10) a
list of the types of products that will be manufactured, packaged, or labeled;
(11) a complete
written description of good manufacturing practices (GMPs).
(12) a complete written description of the means that the
manufacturer shall employ to safely manufacture cannabis products, including
hygiene standards consistent with the requirements of the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, division rules , and other
state or federal rules applicable to manufacturing;
(13) A
detailed description of the licensee’s proposed plan for obtaining cannabis
from a licensed cannabis producer or cannabis microproducer.
(14) legible
electronic images of the labeling and packaging of the cannabis or cannabis products that the manufacturer
shall utilize, which satisfies
the labeling and packaging requirements of the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, division rules, and other state
or federal rules applicable to labeling and packaging;
(15) if
applicable, proof of prior approval by the New Mexico regulation and licensing department for the use of any compressed gas extraction equipment to be utilized
by the manufacturer;
(16) if applicable, a sample of the record form(s),
which shall identify (among
other items) the name
of the wholesale purchaser, the date of the
sale, the quantity, and price of cannabis
sold;
(17) certification the applicant will adhere
to manufacturing requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(18) certification the applicant will adhere
to cannabis transport requirements pursuant to the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, or division rules;
(19) certification the applicant will adhere
to security requirements pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(20) certification the applicant will adhere
to quality assurance requirements pursuant to the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division
rules;
(21) certification
the applicant will adhere
to applicable federal, state and local laws governing the protection of public
health and the environment, including occupational health and safety, food
safety, fire safety, environmental impacts, natural resource protections, air
quality, solid and hazardous waste management, and wastewater discharge;
(22) certification
the applicant has never been denied a license or had a license suspended or
revoked by the division or any other state cannabis licensing authority or a
detailed description of any administrative orders, civil judgements, denial or
suspension of a cannabis license, revocation of a cannabis license, or
sanctions for unlicensed cannabis activity by any state licensing authority,
against the applicant, controlling person, or a business entity in which the
applicant or controlling person was a controlling person within the three years
immediately preceding the date of the application;
(23) certification
the applicant is not licensed under the Liquor Control Act.
(24) applicant’s
social and economic equity plan to encourage economic and social diversity in
employment, including race, ethnicity, gender, age, and residential status of
licensee, controlling persons and employees of applicant and whether the
applicant, controlling persons, employees or the locations where the cannabis
products are produced are located in an underserved rural community, including
tribal, acequia, land grant-merced, federally designated opportunity zone, or
other rural historic communities;
(25) an attestation that the manufacturer will not use dimethylsulfoxide (DMSO) in the production of cannabis
products, and will not possess
DMSO on the premises
of the manufacturer:
(26) an
attestation of the following statement: Under penalty of perjury, I hereby
declare that the information contained within and submitted with the
application is complete, true and accurate. I understand that a
misrepresentation of fact or violation of these rules may result in denial of
the license application or revocation of a license issued; and
(27) for
a class IV license, a signed attestation from a licensed engineer stating the
chemical extraction equipment is a closed loop system, is being utilized for
its intended use and meets requirements of subsection I of 16.8.2.34 NMAC;
(28) for class II, III, and IV licenses, evidence that the
applicant has completed the self-certification required for the production of
edibles and topicals from the New Mexico environment department and provide confirmation
from the New Mexico environment department at the time the license application
is submitted; and
(29) payment
of any required fees as set forth in 16.8.11 NMAC.
B. Verification
of information: The division
may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face or virtual meeting and the production of additional documentation; or
(4) consulting
with state or local governments.
C. Trade
secrets: Any applicant submitting operating procedures and protocols to the
division pursuant to the Lynn and Erin Compassionate Use Act, the Cannabis
Regulation Act, or division rules, may claim such information as a trade secret
or confidential by clearly identifying such information as “confidential” on
the document at the time of submission. Any claim of confidentiality by an
applicant must be based on the applicant’s good faith belief that the
information marked as confidential constitutes a trade secret as defined in the
Uniform Trade Secrets Act, Sections 57-3A-1 to -7, NMSA 1978. In the event the division receives a request to
inspect such documents, the division will notify the applicant or licensee, via
the current email of record. If the division does not receive an injunction
pursuant to the Uniform Trade Secrets Act within five days of the request to
inspect, the division will make the documents marked confidential available for
inspection as required pursuant to the Inspection of Public Records Act.]
A. An initial application or renewal
for cannabis manufacturer licensure shall include the following:
(1) Contact information for the applicant and the cannabis establishment,
to include:
(a) applicant’s full legal name;
(b) applicant’s mailing address;
(c) applicant’s contact
telephone number;
(d) applicant’s contact email address;
(e) applicant’s business physical address and mailing address, if
different;
(f) applicant’s business legal name, including a DBA name if applicable;
(g) applicant’s business web address, if applicable;
(h) applicant’s business hours of operation;
(i) name and contact information for each controlling person;
(j) demographic data
pursuant to the Cannabis Regulation Act; and
(k) license type sought
(Class I, Class II, Class III, or Class IV);
(2) proof the applicant or each controlling person is at least 21 years of
age, which shall include identification issued by a federal or state government
that includes the name, date of birth, and picture of the applicant or
controlling person;
(3) legible and
accurate diagram containing information required by 16.8.2.32 NMAC and description of the location of the land or
facility to be used for the cannabis establishment and the method(s) to
be used to manufacture cannabis (extraction, infusion, packaging, labeling),
including a description of extraction and infusion methods, in a portable
document format (.pdf), and if requested by the division, digital photographic
photos;
(4) demonstration of a
legal right to use the quantity of water that the division determines is needed
for cannabis manufacturing, as evidenced by either:
(a) documentation from a water provider
that the applicant has the right to use water from the provider and that the
use of water for cannabis manufacturing is compliant with provider's rules, or
(b) documentation from the office of the
state engineer showing that the applicant has a valid and existing water right,
or a permit to develop a water right, at the proposed place of use of the
cannabis establishment. The documentation may include any of the following:
(i) a
state engineer permit or license in good standing, but not including a permit
issued pursuant to Sections 72-12-1, -1.1, -1.2, or -1.3, NMSA 1978;
(ii) a
subfile order or decree issued by a water rights adjudication court;
(iii) the
findings of an office of the state engineer hydrographic survey; or
(iv) other
documentation the office of the state engineer has deemed in writing as
acceptable to the office of the state engineer under this rule;
(5) if applicable, certification the applicant is in good standing
with the New Mexico secretary of state,
including all documents filed with the New Mexico secretary of state;
(6) a list of all controlling persons, a list of other current
or prior licensed cannabis businesses, documentation of the applicant’s or a
controlling person legal name change, and criminal history screening documents
as set forth in 16.8.2.9 NMAC and the Cannabis Regulation Act;
(7) a detailed description of
any criminal convictions of the applicant and any controlling person, including
the date of each conviction, dates of incarceration, probation or parole, if
applicable, description of the offense, and statement of rehabilitation of each
conviction;
(8) if
applicable, proof of prior approval by the New Mexico regulation and licensing department for the use of any compressed gas extraction equipment to be utilized
by the manufacturer;
(9) if
applicable, a sample of the record form(s),
which shall identify (among
other items) the name
of the wholesale purchaser, the date of the
sale, the quantity, and price of cannabis
sold;
(10) for class II, III, and IV licenses,
documentation that the applicant has obtain all necessary authority required for
the production of edibles and topicals from the New Mexico environment
department and that such authority is valid at the time the license application
is submitted;
(11) certification the applicant will adhere
to manufacturing requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(12) certification
the applicant will adhere to cannabis transport requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(13) certification
the applicant will adhere to security requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(14) certification
the applicant will adhere to quality
assurance requirements pursuant to the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules;
(15) certification the
applicant will adhere to applicable federal, state and local laws governing
the protection of public health and the environment, including occupational
health and safety, food safety, fire safety, environmental impacts, natural
resource protections, air quality, solid and hazardous waste management, and
wastewater discharge;
(16) certification the applicant has never
been denied a license or had a license suspended or revoked by the division or
any other state cannabis licensing authority or a detailed description of any
administrative orders, civil judgements, denial or suspension of a cannabis
license, revocation of a cannabis license, or sanctions for unlicensed cannabis
activity by any state licensing authority, against the applicant, controlling
person, or a business entity in which the applicant or controlling person was a
controlling person within the three years immediately preceding the date of the
application;
(17) certification the
applicant is not licensed under the Liquor Control Act.
(18) applicant’s social and economic equity
plan to encourage economic and social diversity in employment, including race,
ethnicity, gender, age, and residential status of licensee, controlling persons
and employees of applicant and whether the applicant, controlling persons,
employees or the locations where the cannabis products are produced are located
in an underserved rural community, including tribal, acequia, land
grant-merced, federally designated opportunity zone, or other rural historic
communities;
(19) an attestation that the manufacturer will not use dimethylsulfoxide (DMSO) in the production of cannabis
products, and will not possess
DMSO on the premises
of the manufacturer:
(20) certification the applicant has
obtained a current local jurisdiction business license, or will prior to operation
of the cannabis establishment, and the applicant shall adhere to local zoning
ordinance;
(21) an attestation of the following
statement: Under penalty of perjury, I hereby declare that the information
contained within and submitted with the application is complete, true and
accurate. I understand that a misrepresentation of fact or violation of these
rules may result in denial of the license application or revocation of a
license issued; and
(22) payment of any required fees as set
forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(4) consulting with state
or local governments.
C. Trade
secrets: Any applicant submitting operating procedures and protocols to the
division pursuant to the Lynn and Erin Compassionate Use Act, the Cannabis
Regulation Act, or division rules, may claim such information as a trade secret
or confidential by clearly identifying such information as “confidential” on
the document at the time of submission. Any claim of confidentiality by an
applicant must be based on the applicant’s good faith belief that the
information marked as confidential constitutes a trade secret as defined in the
Uniform Trade Secrets Act, Sections 57-3A-1 to 7, NMSA 1978. In the event the division receives a request to
inspect such documents, the division will notify the applicant or licensee, via
the current email of record. If the division does not receive an injunction
pursuant to the Uniform Trade Secrets Act within ten days of the request to
inspect, the division will make the documents marked confidential available for
inspection as required pursuant to the Inspection of Public Records Act.
[16.8.2.30
NMAC – N/E, 09/08/2021; A/E, 12/02/2021; N, 12/28/2021]
16.8.2.31 SUBMITTAL OF APPLICATION FOR
AMENDED CANNABIS MANUFACTURER LICENSE:
[A. Application: A licensed
manufacturer shall submit to the division an application form for an amended
license, if applicable, pay the required fee, and obtain approval from the division,
prior to implementing any of the following:
(1) material
or substantial change of the size or location of the premises;
(2) change
of licensee’s legal or business name;
(3) change
or modification in extraction type(s) or equipment;
(4) material
or substantial change in water source;
(5) addition
of a controlling person;
(6) material
or substantial change to a license’s security system;
(7) material
or substantial modification of the premises; or
(8) engaging
in an activity which requires an addition or change of a license type.
B. Amended license not required: Changes to standard operating policies and
procedures may be made without providing notification to the division, provided
that licensees shall maintain at each licensed premises a copy of all current
and prior operating policies and procedures.
C. Requirements
and processing of application for amended license: The application for
amended license must comply with all requirements applicable to initial
applications, except that the application shall be clearly designated as one
for an amended license. The division shall prorate required fees to align with
the expiration date of the licensee’s original license, which shall be the
expiration date of the licensee’s amended license, if approved. The division
shall approve or deny an application for amended license within 90 days of
receiving a completed application. Denial of an application for amendment shall
be pursuant to the Uniform Licensing Act.
D. Material or substantial
change: Material or substantial changes requiring approval include:
(1) increase
or decrease in the size of the premises, including the sale of property used
for the cannabis establishment, the purchase of additional property for the use
of the cannabis establishment, or a change in the location of the cannabis
establishment;
(2) a
modification in the licensee’s access to the water source submitted with an
application for initial or renewal licensure or a ten percent, or more,
increase in the licensee’s water usage;
(3) change
to a license’s security system, including relocation or security points or
installation of a new security system; or
(4) modification
of the premises to relocate cannabis activities.]
A. Application: A licensed
manufacturer shall submit to the division an application form for an amended
license, if applicable, and obtain approval from the division, prior to
implementing any of the following:
(1) material
or substantial change of the size of the premises;
(2) change
of licensee’s legal or business name;
(3) change
or modification in extraction type(s) or equipment;
(4) material
or substantial change in water source;
(5) addition
or elimination of a controlling person;
(6) material
or substantial change to a license’s security system; or
(7) material
or substantial modification of the premises.
B. Amended license not
required: Changes to standard
operating policies and procedures may be made without providing notification to
the division, provided that licensees shall maintain at each licensed premises
a copy of all current and prior operating policies and procedures.
C. Requirements
and processing of application for amended license: The application
for amended license must comply with all requirements applicable to initial
applications, except that the application shall be clearly designated as one
for an amended license. The division shall approve or deny an application for
amended license within 90 days of receiving a completed application. Denial of
an application for amendment shall be pursuant to the Uniform Licensing Act.
D. Material or substantial change: Material or
substantial changes requiring approval include:
(1) increase or
decrease in the size of the premises;
(2) a modification in
the licensee’s access to the water source submitted with an application for
initial or renewal licensure or a 10 percent, or more, increase in the
licensee’s water usage;
(3) change to a
license’s security system, including relocation or security points or
installation of a new security system; or
(4) modification of
the premises to relocate cannabis activities.
16.8.2.33 CANNABIS MANUFACTURER
POLICIES AND PROCEDURES:
[A. Minimum
policy and procedure requirements: A manufacturer shall develop,
implement, and maintain on the licensed premises, standard policies and
procedures, which shall include the following:
(1) cannabis testing criteria and
procedures, which shall be consistent with the testing requirements of the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division
rules, and shall include at a minimum, the following topics:
(a) representative
sampling and analytical testing of cannabis or cannabis products for contaminants
prior to wholesale or transfer to another cannabis establishment;
(b) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
product samples to a cannabis testing laboratory;
(c) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(d) protocols
to ensure that cannabis or cannabis products, including any samples of cannabis
or cannabis products, are transported and stored in a manner that prevents
degradation, contamination, tampering, or diversion;
(e) protocols
for testing sample collection that ensures accurate test results; and
(f) procedures
for destruction of a tested batch of cannabis or cannabis products if the
testing samples from the tested batch indicate noncompliance with applicable
health and safety standards;
(2) employee
policies and procedures to address the following minimum requirements:
(a) adherence
to state and federal laws;
(b) responding to an
emergency, including robbery or a serious accident or incident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
health and safety;
(f) crime
prevention techniques; and
(g) if
applicable, confidentiality laws, including the Health Insurance Portability
and Accountability Act of 1996; and
(3) documentation
prepared for each employee and statements signed by employees indicating
receipt and understanding of policies and procedures.
B. Training
program:
(1) Licensee shall
implement a training program, approved by the division, to ensure that all
personnel present at the premises are provided information and training that,
at minimum, covers the following topics within 30 days of the start of
employment:
(a) employee health and safety training
materials;
(b) health and safety hazards;
(c) hazard communication training for all
solvents or chemicals used at the licensed premises and as described in the
safety data sheet for each solvent or chemical;
(d) training
requirements for the proper use of health and safety measures and controls;
(e) emergency procedures;
(f) security procedures; and
(g) record keeping requirements.
(2) Prior to independently engaging in
any cannabis manufacturing process, including but not limited to extraction:
(a) an overview of the process and
standard operating procedure(s);
(b) quality control procedures;
(c) hazard analysis and control
procedures as appropriate;
(d) proper and safe usage of equipment or
machinery;
(e) safe work practices applicable to an
employee’s job tasks, including appropriate use of any necessary safety or
sanitary equipment;
(f) cleaning and maintenance
requirements;
(g) emergency operations, including
shutdown; and
(h) any additional information reasonably
related to an employee’s job duties.
(3) A licensee, or employee, involved in
the handling, transportation, manufacture, extraction, testing, or packaging of
cannabis products must successfully complete a food handler course accredited
by the American National Standards Institute (ANSI) prior to conducting any
related activities. Such training shall be maintained while employed under a
manufacturing licensee. The licensee shall obtain documentation evidencing the
fulfillment of this requirement.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section. This annual refresher training must
be completed within 12 months of the previous training completion date. The
licensee shall maintain a record which contains at minimum:
(a) an
annual attestation by licensee that they received and understood all
information and training provided in the training program;
(b) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(c) documentation
of training topics and dates of training completion for all personnel;
(d) training
topics and dates of refresher training completion for all personnel;
(e) the
signature of the individual personnel and the licensee verifying receipt and
understanding of each training or refresher training completed by the
personnel;
(f) any
official documentation attesting to the successful completion of required
training by personnel.
(2) Licensee
may designate supervisory personnel with responsibility to oversee the
requirements of this section. Assigned supervisory personnel must have the
education, training, or experience (or a combination thereof) necessary to
ensure the production of clean and safe cannabis products by all personnel. The
designated training personnel shall sign and date a document on an annual basis
attesting that they have received and understood all information and training
provided in the training program. This documentation shall be maintained as
part of the record requirements.
D. Retention of training documentation:
Licensees shall maintain documentation of an employee’s training for a period
of five years for current employees and at least six months after the
termination of an employee’s employment.]
A. Minimum
policy and procedure requirements: A manufacturer shall develop, implement,
and maintain on the licensed premises, standard policies and procedures, which
shall include the following:
(1) cannabis testing criteria and
procedures, which shall be consistent with the testing requirements of the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division
rules, and shall include at a minimum, the following topics:
(a) representative
sampling and analytical testing of cannabis or cannabis products for contaminants
prior to wholesale or transfer to another cannabis establishment;
(b) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
product samples to a cannabis testing laboratory;
(c) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(d) protocols
to ensure that cannabis or cannabis products, including any samples of cannabis
or cannabis products, are transported and stored in a manner that prevents
degradation, contamination, tampering, or diversion;
(e) protocols
for testing sample collection that ensures accurate test results; and
(f) procedures
for destruction of a tested batch of cannabis or cannabis products if the
testing samples from the tested batch indicate noncompliance with applicable
health and safety standards;
(2) employee
policies and procedures to address the following minimum requirements:
(a) adherence
to state and federal laws;
(b) responding
to an emergency, including robbery or a serious accident or incident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
health and safety;
(f) crime
prevention techniques; and
(g) if
applicable, confidentiality laws, including the Health Insurance Portability
and Accountability Act of 1996; and
(3) documentation
prepared for each employee and statements signed by employees indicating
receipt and understanding of policies and procedures.
B. Training
program:
(1) Licensee shall
implement a training program, approved by the division, to ensure that all
personnel present at the premises are provided information and training that,
at minimum, covers the following topics within 30 days of the start of
employment:
(a) employee health and safety training
materials;
(b) health and safety hazards;
(c) hazard communication training for all
solvents or chemicals used at the licensed premises and as described in the
safety data sheet for each solvent or chemical;
(d) training
requirements for the proper use of health and safety measures and controls;
(e) emergency procedures;
(f) security procedures; and
(g) record keeping requirements.
(2) Prior to independently engaging in
any cannabis manufacturing process, including but not limited to extraction:
(a) an overview of the process and
standard operating procedure(s);
(b) quality control procedures;
(c) hazard analysis and control
procedures as appropriate;
(d) proper and safe usage of equipment or
machinery;
(e) safe work practices applicable to an
employee’s job tasks, including appropriate use of any necessary safety or
sanitary equipment;
(f) cleaning and maintenance
requirements;
(g) emergency operations, including
shutdown; and
(h) any additional information reasonably
related to an employee’s job duties.
(3) A licensee, or employee, involved in
the handling, transportation, manufacture, extraction, testing, or packaging of
cannabis products must successfully complete a food handler course accredited
by the American national standards institute (ANSI) prior to conducting any
related activities. Such training shall be maintained while employed under a
manufacturing licensee. The licensee shall obtain documentation evidencing the
fulfillment of this requirement.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section. The licensee shall maintain a record, which contains
at minimum:
(a) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(b) documentation
of training topics and dates of training completion for all personnel;
(c) dates
of refresher training completion for all personnel;
(d) the
signature of verifying receipt and understanding of each training or refresher
training completed.
(2) Licensee
may designate supervisory personnel with responsibility to oversee the
requirements of this section.
D. Retention of training documentation:
Licensees shall maintain documentation of an employee’s training for a period
of two years for current employees and at least six months after the termination
of an employee’s employment.
[16.8.2.33 NMAC – N/E, 09/08/2021; N,
12/28/2021]
16.8.2.34 MINIMUM STANDARDS FOR THE MANUFACTURE OF CANNABIS
PRODUCTS:
[A. General requirements: Licensees shall ensure the following:
(1) manufacturing shall be done in premises
that are in compliance with state and local laws
that do not conflict with the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act;
(2) the licensee’s right to
use the quantity of water sufficient to meet the manufacturing facility’s needs
remains in good standing;
(3) weighting or measuring devices that are used in the wholesale of cannabis
be appropriately documented as having
undergone certified registration and calibration that is in accordance with applicable requirements of the New Mexico department of agriculture;
and
(4) licensee
shall notify the division of any changes
to the days or hours of business operation;
B. Permissible Extractions:
(1) Except
as provided in Subsection (2), cannabis extraction shall only be conducted
using the following methods:
(a) Mechanical
extraction, such as screens or presses;
(b) chemical
extraction using a nonvolatile solvent such as a nonhydrocarbon-based or other
solvent such as water, vegetable glycerin, vegetable oils, animal fats, or
food-grade glycerin, (nonhydrocarbon-based solvents shall be food grade);
(c) chemical
extraction using a professional closed loop CO2 gas extraction system;
(d) chemical
extraction using a volatile solvent; or
I cap applicant or licensee shall submit a
detailed description of the extraction method, including any documentation that
validates the method and any safety procedures to be utilized to mitigate any
risk to public or worker health and safety.
(3) Extraction
equipment shall be used and operated in accordance with its intended
manufacturer use and design.
C. Volatile
Solvent Extractions: Chemical extractions using volatile solvents shall be
subject to the following requirements:
(1) hydrocarbon-based
solvents shall be at least ninety-nine percent purity;
(2) ethyl
alcohol must be food grade, and non-denatured in composition;
(3) all
extractions shall be performed in a closed loop extraction system as described
in subsection I of 16.8.2.34 NMAC; and
(4) Manufacturers
shall not use ignition sources including but not limited to a heat gun or any
open flame source next to extraction equipment that utilizes volatile solvents,
including in rooms designated solely for extraction or in areas that contain or
uses flammable liquids and gasses.
D. Closed-Loop Extraction System Requirements:
(1) Chemical
extractions using CO2 or a volatile solvent shall be conducted in a
professional closed loop extraction system. The system shall be commercially
manufactured and bear a permanently affixed and visible serial number. The
system shall be certified by a licensed engineer that
the system was commercially manufactured, safe for its intended use, and built
to codes of recognized and generally accepted good engineering practices, or
listed, or approved by a nationally recognized testing laboratory.
(2) The
certification document must contain the signature and stamp of a professional
engineer and the serial number of the extraction unit being certified.
(3) Professional
closed loop systems, other equipment used, the extraction operation, and
facilities must be approved for use by the local fire code official and meet
any required fire, safety, and building code requirements specified in:
(a) National
Fire Protection Association (NFPA) standards;
(b) International
Building Code (IBC);
(c) International
Fire Code (IFC); or
(d) Other
applicable standards including all applicable fire, safety, and building codes related
to the processing, handling and storage of the applicable solvent or gas.]
A. General requirements: Licensees shall ensure the following:
(1) manufacturing shall be done in premises
that are in compliance with state and local laws that
do not conflict with the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act;
(2) the licensee’s right to
use the quantity of water sufficient to meet the manufacturing facility’s needs
remains in good standing;
(3) weighting or measuring devices that are used in the wholesale of cannabis
be appropriately documented as having
undergone certified registration and calibration that is in accordance with applicable requirements of the New Mexico department of agriculture;
and
(4) licensee
shall notify the division of any changes
to the days or hours of business operation;
B. Permissible Extractions:
(1) Except
as provided in Paragraph (2), cannabis extraction shall only be conducted using
the following methods:
(a) Mechanical
extraction, such as dry screens, sieves, or presses, potable water and ice made
from potable water, cryogenic or subzero manufacturing not involving a solvent,
or pressure and temperature;
(b) Chemical
extraction using a nonvolatile solvent such as a nonhydrocarbon-based or other
solvent such as water, vegetable glycerin, vegetable oils, animal fats, or
food-grade glycerin, (nonhydrocarbon-based solvents shall be food grade);
(c) Chemical
extraction using a division approved closed loop extraction system; or
(d) A
method authorized by the division pursuant to Paragraph (2) below.
(2) To
request authorization from the division to conduct cannabis extraction using a
method other than those specified in Subparagraphs (a) – (c) above, the applicant
or licensee shall submit a detailed description of the extraction method,
including any documentation that validates the method and any safety procedures
to be utilized to mitigate any risk to public or worker health and safety.
(3) Extraction
equipment shall be used and operated in accordance with its intended
manufacturer use and design.
(4) Current
safety data sheets shall be kept on the premises for all chemicals used in the
extraction process.
C. Volatile
Solvent Extractions: Chemical extractions using volatile solvents shall be
subject to the following minimum requirements:
(1) hydrocarbon-based
solvents shall be at least 99.5 percent purity with a certificate of analysis
from the manufacturer to confirm purity;
(2) ethyl
alcohol must be food grade, and non-denatured in composition;
(3) solvents
shall be free of odorants, bitterants, or other additives and stored, handled,
and disposed of in accordance with local, state, and federal regulations,
(4) all
extractions shall be performed in a closed loop extraction system, unless
approved by the division, as described in Subsection B of 16.8.2.34 NMAC; and
(5) licensees
shall not use ignition sources including but not limited to a heat gun or any
open flame source next to extraction equipment that utilizes volatile solvents,
including in rooms designated solely for extraction or in areas that contain or
uses flammable liquids and gasses.
D. Closed-Loop
Extraction System Requirements:
(1) Closed
loop systems, other equipment used, the extraction operation, and facilities
must be approved for use by the local fire code official and meet any required
fire, safety, and building code requirements specified in:
(a) National
Fire Protection Association (NFPA) standards;
(b) International
Building Code (IBC);
(c) International
Fire Code (IFC); or
(d) Other
applicable standards including all applicable fire, safety, and building codes
related to the processing, handling and storage of the applicable solvent or
gas.
(2) All
pressure vessels must comply with the Construction Industries Licensing Act,
Section 60-13-1 et seq., NMSA 1978,
including associated rules, applicable codes, and standards.
(3) A
list of the name(s) of all trained employees must be prominently displayed
inside or immediately outside of the extraction area.
(4) A
licensee that is currently approved to use CO2 or a volatile solvent for
extraction has 6 months from the effective date of this rule to comply with the
applicable requirements. Nothing in this subsection is intended to relieve a
licensee of its obligation to comply with any applicable federal, state, or
local laws and regulations.
[16.8.2.34 NMAC – N/E, 09/08/2021; N,
12/28/2021]
16.8.2.35 [SEVERABILITY: If any part or application of this rule is held to be invalid, the remainder or its application to other situations or persons
shall not be affected. Any section of this rule legally
severed shall not interfere with the remaining protections and duties provided by this rule.]
[16.8.2.35
NMAC - N, 12/28/2021
16.8.2.36 APPLICATION
REQUIREMENTS FOR CANNABIS RETAILER LICENSE:
A. An initial application or renewal
for cannabis retailer licensure shall include the following:
(1) Contact information for the applicant and the cannabis establishment,
to include:
(a) applicant’s full legal name;
(b) applicant’s date of birth, if applicable;
(c) applicant’s mailing address;
(d) applicant’s contact
telephone number;
(e) applicant’s contact email address;
(f) applicant’s business physical address and mailing address, if
different;
(g) applicant’s business legal name, including a DBA name if applicable;
(h) applicant’s business web address, if applicable;
(i) applicant’s business hours of operation;
(j) name and contact information for each controlling person;
(k) demographic data
pursuant to the Cannabis Regulation Act; and
(l) license type sought;
(2) proof the applicant or each controlling person is at least 21 years of
age, which shall include identification issued by a federal or state government
that includes the name, date of birth, and picture of the applicant or
controlling person;
(3) legible and
accurate diagram and description of the
location of the land or facility to be used for the cannabis establishment,
including a description of each retail area and all security requirements, in a
portable document format (.pdf), and if requested by the division, digital
photographic photos;
(4) if applicable, certification the applicant is in good standing
with the New Mexico secretary of state,
including all documents filed with the New Mexico secretary of state;
(5) a list of all controlling persons, a list of other current
or prior licensed cannabis businesses, documentation of the applicant’s or a
controlling person legal name change, and criminal history screening documents
as set forth in 16.8.2.9 NMAC and the Cannabis Regulation Act;
(6) a detailed description of
any criminal convictions of the applicant and any controlling person, including
the date of each conviction, dates of incarceration, probation or parole, if
applicable, description of the offense, and statement of rehabilitation of each
conviction;
(7) certification the applicant will
adhere to retail requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(8) certification the
applicant will adhere to cannabis transport requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(9) certification the
applicant will adhere to security requirements pursuant to the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, or division rules;
(10) certification the
applicant will adhere to quality
assurance requirements pursuant to the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules;
(11) certification the
applicant will adhere to applicable federal, state and local laws governing
the protection of public health and the environment, including occupational
health and safety, food safety, environmental impacts, natural resource protections,
air quality, solid and hazardous waste management, and wastewater discharge;
(12) certification the applicant has never
been denied a license or had a license suspended or revoked by the division or
any other state cannabis licensing authority or a detailed description of any
administrative orders, civil judgements, denial or suspension of a cannabis
license, revocation of a cannabis license, or sanctions for unlicensed cannabis
activity by any state licensing authority, against the applicant, controlling
person, or a business entity in which the applicant or controlling person was a
controlling person within the three years immediately preceding the date of the
application;
(13) certification the
applicant is not licensed under the Liquor Control Act;
(14) certification the
applicant has obtained a current local jurisdiction business license, or will
prior to operation of the cannabis establishment, and the applicant shall
adhere to local zoning ordinance;
(15) if applicable,
certification the applicant will adhere to courier requirements pursuant to the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules;
(16) applicant’s social and economic equity
plan to encourage economic and social diversity in employment, including race,
ethnicity, gender, age, and residential status of licensee, controlling persons
and employees of applicant and whether the applicant, controlling persons,
employees or the locations where the cannabis products are produced are located
in an underserved rural community, including tribal, acequia, land
grant-merced, federally designated opportunity zone, or other rural historic
communities;
(17) an attestation of the following
statement: Under penalty of perjury, I hereby declare that the information
contained within and submitted with the application is complete, true and
accurate. I understand that a misrepresentation of fact or violation of these
rules may result in denial of the license application or revocation of a
license issued; and
(18) payment of any required fees as set
forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(4) consulting with state
or local governments.
16.8.2.37 SUBMITTAL OF APPLICATION FOR
AMENDED CANNABIS RETAILER LICENSE:
A. Application: A licensed
retailer shall submit to the division an application form for an amended
license, if applicable, pay the required fee, and obtain approval from the division,
prior to implementing any of the following:
(1) material
or substantial change of the size;
(2) change
of licensee’s legal or business name;
(3) addition
or elimination of a controlling person;
(4) material
or substantial change to a license’s security system; or
(5) material
or substantial modification of the premises.
B. Amended license not
required: Changes to standard operating policies and procedures may be made
without providing notification to the division, provided that licensees shall
maintain at each licensed premises a copy of all current operating policies and
procedures.
C. Requirements and
processing of application for amended license: The application for amended
license must comply with all requirements applicable to initial applications,
except that the application shall be clearly designated as one for an amended
license. The division shall approve or deny an application for amended license
within 90 days of receiving a completed application. Denial of an application for
amendment shall be pursuant to the Uniform Licensing Act.
D. Material or
substantial change: Material or substantial changes requiring approval
include:
(1) increase
or decrease in the size of the premises;
(2) change
to a license’s security system, including relocation or security points or
installation of a new security system; or
(3) modification
of the premises to relocate cannabis activities.
16.8.2.39 CANNABIS
RETAILER POLICIES AND PROCEDURES:
A. Minimum
policy and procedure requirements: A licensed retailer shall develop, implement,
and maintain on the licensed premises, standard policies and procedures, which
shall include the following:
(1) cannabis
handling criteria and procedures, which shall be consistent with the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules, and
shall include at a minimum, the following topics:
(a) employee
health and safety training materials;
(b) training
requirements for the proper use of health and safety measures and controls;
(c) if
applicable, recordkeeping and chain of custody protocols for transportation of
cannabis or cannabis product samples to a cannabis testing laboratory;
(d) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(e) protocols
to ensure that cannabis or cannabis products, including any samples of cannabis
or cannabis products, are transported and stored in a manner that prevents
degradation, contamination, tampering, or diversion;
(g) if
applicable, protocols for testing sample collection that ensures accurate test
results; and
(h) if
applicable, procedures for remedial measures to bring cannabis or cannabis
products into compliance with division standards or destruction of a tested
batch of cannabis or cannabis products if the testing samples from the tested
batch indicate noncompliance with applicable health and safety standards;
(2) employee
policies and procedures to address the following minimum requirements:
(a) adherence
to state and federal laws;
(b) responding
to an emergency, including robbery or a serious accident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
safety;
(f) crime
prevention techniques; and
(g) confidentiality
laws, including the Health Insurance Portability and Accountability Act of
1996; and
(3) documentation
prepared for each employee and statements signed by employees indicating
receipt and understanding of policies and procedures.
B. Training
program:
(1) Licensee shall
implement a training program, approved by the division, to ensure that all
personnel present at the premises are provided information and training that,
at minimum, covers the following topics within 30 days of the start of
employment:
(a) health and safety hazards;
(b) security procedures; and
(c) record keeping requirements.
(2) Prior to engaging in any cannabis
retail process:
(a) an overview of the process and
standard operating procedure(s);
(b) safe work practices applicable to an
employee’s job tasks, including appropriate use of any necessary safety or
sanitary equipment;
(c) cleaning and maintenance
requirements;
(d) emergency operations, including
shutdown; and
(e) any additional information reasonably
related to an employee’s job duties.
(3) A licensee that retails edible
cannabis products shall ensure that all personnel who handle edible products
successfully complete a food handler course accredited by the American national
standards institute (ANSI). The licensee shall obtain documentation evidencing
the fulfillment of this requirement.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section. The licensee shall maintain a
record which contains at minimum:
(a) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(b) documentation
of training topics and dates of training completion for all personnel;
(c) dates
of refresher training completion for all personnel; and
(d) the
signature of each employee verifying receipt and understanding of each training
or refresher training completed.
(2) Licensee
may assign responsibility for ensuring compliance by individual personnel with
the requirements of this section to supervisory personnel.
D. Retention of training documentation:
Licensees shall maintain documentation of an employee’s training for a period
of two years for current employees and at least six months after the
termination of an employee’s employment.
[16.8.2.39 NMAC - N 12/28/2021]
16.8.2.40 MINIMUM
STANDARDS FOR RETAIL OF CANNABIS
PRODUCTS:
A. Access
to retailer premises prior to authorization of retail sale of commercial
cannabis: Prior to the division authorizing the retail sale of
commercial cannabis, pursuant to Subsection K of Section 26-2C-6 and Paragraph
(5) of Subsection (B) of Section 26-2C-7 of the Cannabis Regulation Act, NMSA
1978, access to the licensed premises of a retailer shall be limited to
individuals who are at least 18 years of age and possess a valid qualified
patient, primary caregiver, or reciprocal participant registry identification
card from the department of health medical cannabis program.
B. Access
to retailer premises upon authorization of retail sale of commercial cannabis: Upon the division
authorizing the retail sale of commercial cannabis, pursuant to Subsection K of
Section 26-2C-6 and Paragraph (5) of Subsection B of Section 26-2C-7 of the
Cannabis Regulation Act NMSA 1978, access to the licensed premises of a
retailer shall be limited to the following:
(1) individuals who are at least 21 years
of age and possess a valid form of identification; and
(2) individuals who are at least 18 years
of age and possess a valid qualified patient, primary caregiver, or reciprocal
participant registry identification card from the department of health medical
cannabis program.
C. Customer
access to the retail area:
(1) Individuals shall
be granted access to purchase cannabis goods only after the licensed retailer
or an employee of the licensed retailer has confirmed the individual’s age and
identity, and if applicable, the individual’s status as a qualified patient,
primary caregiver, or reciprocal participant.
(2) The licensed
retailer or at least one employee shall be physically present in the retail
area at all times when individuals who are not employees of the licensed retailer
are in the retail area.
(3) All sales of cannabis goods, with the
exception of cannabis goods sold through delivery, must take place within the
retail area of the retailer’s licensed premises.
(4) A licensed retailer shall sell and
deliver cannabis goods only between the hours reported to the division as
regular business hours.
D. Requirements
While Not Open for Business:
(1) At any time the licensed premises is
not open for retail sales, a licensed retailer shall ensure that:
(a) the licensed premises is securely
locked with commercial-grade, nonresidential door locks;
(b) the licensed
premises is equipped with an active alarm system pursuant to Section 10 of this
rule, which shall be activated when the licensed retailer or its employees are
not on the licensed premises; and
(c) only employees of the licensee and
other authorized individuals are allowed access to the licensed premises. For
the purposes of this section, authorized individuals include individuals
employed by the licensee as well as any outside vendors, contractors, or other
individuals conducting business that requires access to the licensed premises.
E. Commercial
and medical retail customers:
(1) Commercial
sales: A licensed retailer shall only sell cannabis and cannabis products
to individuals who are at least 21 years of age after confirming the customer’s
age and identity by inspecting a valid form of identification provided by the
customer as required by subsection B of this section.
(2) Medical
sales: A licensed retailer shall only sell cannabis and cannabis products
to individuals who are at least 18 years of age and possess a valid qualified
patient, primary caregiver, or reciprocal participant registry identification
card from the department of health medical cannabis program, after confirming
the customer’s age, identity, and valid registry identification.
(3) Acceptable forms of identification
include the following
(a) a document issued by a federal,
state, county, or municipal government, or a political subdivision or agency
thereof, including, but not limited to, a valid motor vehicle operator's
license, that contains the name, date of birth, and photo of the person;
(b) a valid identification card issued to
a member of the Armed Forces that includes the person’s name, date of birth,
and photo of the person; or
(c) a valid passport issued by the United
States or by a foreign government.
F. Cannabis
product display:
(1) Cannabis and cannabis products for
customer inspection and sale shall only be displayed in the retail area.
(2) Cannabis and cannabis products may be
removed from their packaging and placed in containers to allow for customer
inspection. The containers shall not be readily accessible to customers without
assistance of retailer personnel. A container must be provided to the customer
by the licensed retailer or its employees, who shall remain with the customer
at all times that the container is being inspected by the customer.
(3) Cannabis and cannabis products
removed from their packaging for display shall not be sold, shall not be
consumed, and shall be destroyed, pursuant to Section 15 of this rule, when the
cannabis or cannabis products are no longer used for display.
G. Cannabis
and cannabis products for sale:
(1) A licensed retailer shall not make
any cannabis or cannabis products available for sale or delivery to a customer
unless:
(a) the cannabis or cannabis products
were received by the retail licensee from a licensed producer, licensed producer
microbusiness, licensed manufacturer, licensed vertically integrated cannabis
establishment, or licensed integrated cannabis microbusiness;
(b) the licensed retailer has verified
that the cannabis or cannabis products have not exceeded their expiration or
sell-by date if one is provided;
(c) in the case of manufactured cannabis
products, the cannabis product complies with all requirements of the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act and division rules;
(d) the cannabis or cannabis products
have undergone laboratory testing as required by the Cannabis Regulation Act,
the Lynn and Erin Compassionate Use Act and division rules;
(e) the packaging and labeling of the
cannabis or cannabis product complies with Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act and division rules; and
(f) the cannabis or cannabis product
complies with all applicable requirements found in the Cannabis Regulation Act,
the Lynn and Erin Compassionate Use Act and division rules.
H. Commercial
and medical cannabis purchase limits and excise tax:
(1) A licensed retailer shall not sell
more than the following amounts at one time to a single commercial cannabis
customer:
(a) two ounces of cannabis;
(b) 16 grams of cannabis extract;
(c) 800 milligrams of edible cannabis;
and
(d) six immature cannabis plants.
(2) A licensed retailer shall adhere to
department of health medical cannabis rules related to the sale of cannabis and
cannabis products to qualified individuals who are at least 18 years of age and
possess a valid qualified patient, primary caregiver, or reciprocal participant
registry identification card from the department of health medical cannabis
program.
(3) Pursuant to the Cannabis Tax Act,
Section 7-42-2 NMSA 1978, cannabis excise tax shall not apply to retail sale of
medical cannabis or cannabis products. Cannabis excise tax shall apply to
commercial sales of cannabis and cannabis products.
(4) The limits provided in Paragraph (1)
and Paragraph (2) of this subsection shall not be combined to allow a customer
to purchase cannabis or cannabis products in excess of the limits provided in
this section.
(5) The prohibition set forth in
paragraph one above shall not prohibit the sale of different product types to a
single customer, as long as the total amount sold does not exceed the limits
set forth above.
I. Customer
Return of Cannabis Goods:
(1) For the purposes of this subsection,
“customer return” means a customer’s return of cannabis or cannabis products
that were purchased from a licensed retailer, back to the licensed retailer the
cannabis or cannabis products were purchased from.
(2) A licensed retailer may accept
customer returns of cannabis or cannabis products that were previously sold to
a customer.
(3) A licensed retailer shall not resell
cannabis or cannabis products that have been returned.
(4) A licensed retailer shall treat any
cannabis or cannabis products abandoned on the licensed retailer premises as a
customer return.
(5) A licensed retailer shall destroy all
cannabis or cannabis products that have been returned to the licensed retailer
by a customer, pursuant to Section 15 of this rule.
J. Free
cannabis or
cannabis products:
(1) A licensed retailer shall not provide
free cannabis or cannabis product(s) to any person. A licensed retailer shall
not allow individuals who are employed or not employed by the licensed retailer
to provide free cannabis or cannabis product(s) to any person on the licensed
premises.
(2) Notwithstanding Paragraph (1) of this
section, in order to provide access to medicinal cannabis patients who have
difficulty accessing medicinal cannabis or cannabis product(s), a licensee may
provide free cannabis or cannabis product(s) if all of the following criteria
are met:
(a) free cannabis or cannabis products
are provided only to a qualified patient, primary caregiver, or a reciprocal
participant in possession of a valid registry identification card from the
department of health medical cannabis program;
(b) the cannabis or cannabis products
comply with all applicable requirements of the Cannabis Regulation Act, the
Lynn and Erin Compassionate Use Act and division rules;
(c) the cannabis or cannabis products
have been properly recorded in the track and trace system as belonging to the
licensed retailer;
(d) the cannabis or cannabis products
shall be applied toward the adequate supply for a medicinal cannabis customer
pursuant to department of health rules;
(e) the transaction shall be properly
recorded in the licensed retailer’s inventory records and the track and trace
system.
K. Inventory
reconciliation:
(1) A licensed retailer shall perform a
reconciliation of its inventory at least once every calendar month.
(2) In conducting an inventory
reconciliation, a licensed retailer shall verify that the licensed retailer’s
physical inventory is consistent with the licensed retailer’s records
pertaining to inventory.
(3) The result of inventory
reconciliation shall be retained in the licensed retailer’s records and shall
be made available to the division upon request.
(4) If a licensed retailer identifies any
evidence of theft, diversion, or loss, the licensed retailer shall notify the
division pursuant to Subsection N of 16.8.2.8 NMAC.
L. Record
of Sales:
(1) A licensed retailer shall maintain an
accurate record of every sale of cannabis and cannabis product made to a
customer.
(2) A record of cannabis or cannabis
product sold to a customer shall contain the following minimum information:
(a) the first name and employee number of
the employee who processed the sale;
(b) the date and time of the transaction;
(c) a list of all the cannabis or
cannabis product purchased, including the quantity purchased; and
(d) the total amount paid for the sale
including the individual prices paid for each cannabis or cannabis product
purchased and any amounts paid for cannabis excise tax.
(3) For the purposes of this section, an
employee number is a distinct number assigned by a licensed retailer to their
employees that would allow the licensed retailer to identify the employee on
documents or records using the employee number rather than the employee’s full
name. A licensed retailer shall be able to identify the employee associated
with each employee number upon request from the division.
(4) All licensed retailer-specific
records shall be maintained for at least 12 months.
M. Retailer
premises to retailer premises transfer:
(1) A licensee who has multiple licensed
retail premises may arrange for the transfer or sale of cannabis or cannabis
products from one licensed retail premises to another licensed retail premises
if both licensed retail premises are held under the same ownership.
(2) A licensee may arrange for the
transfer or sale of cannabis or cannabis products to another cannabis retailer
if both licensees properly record the transaction in the licensed retailer’s
inventory records and the track and trace system
(3) Cannabis or cannabis product transferred
to a licensed retail premises under this subsection may be sold by the licensed
retailer receiving the cannabis or cannabis product only if the cannabis or
cannabis products comply with all requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules.
N. Use
of licensed cannabis couriers:
(1) A retail cannabis
licensee may, consistent with this rule, and with the consent of a qualifying
patient, primary caregiver, reciprocal participant, or an individual who is at
least 21 years of age, utilize a license cannabis courier to deliver cannabis
or cannabis products to a qualifying patient, primary caregiver, reciprocal
participant, or an individual who is at least 21 years of age;
(2) A retail cannabis
licensee shall require a consumer making a purchase for delivery by a cannabis
courier licensee to have the valid government-issued identification card, the
consumer intendents to use to verify their age at the time of delivery, and if
applicable, a medical cannabis program registry identification card, examined
and authenticated by the retail cannabis licensee prior to the order; and
(3) Pre-verification of the consumer’s
identity shall be performed through a division approved electronic means, which
may include a third-party technology platform, and shall include examination of
a consumers valid, unexpired, medical cannabis identification card, if
applicable, and photo identification issued by a federal or state government
that includes the name, date of birth, and picture of the intended recipient.
[16.8.2.40 NMAC – N, 12/28/2021]
E. Confidentiality:
Licensees shall at all times take measures to ensure confidentiality and safety
in the transport and delivery of cannabis and cannabis product. A licensee may
obtain contact information of a purchasing qualified patient or primary
caregiver, and a reciprocal participant, as permitted by agreement between the
licensee and a respective retail cannabis licensee, and may utilize such
information solely for the purpose of arranging a delivery location and time
with the qualified patient or primary caregiver, or reciprocal participant.
Licensees shall not otherwise disseminate, disclose, or use identifying
information or contact information concerning a qualified patient or primary
caregiver, or reciprocal participant.
F. Maximum retail
value: The maximum retail value of cannabis and cannabis product allowed in
a cannabis courier’s vehicle at any one time shall be $10,000 and each product
shall be associated with a specific order for delivery. For purposes of this
provision, “maximum retail value” shall mean the aggregate value of cannabis
and cannabis product as priced on the day of the order for delivery.
G. Track and trace:
All cannabis and cannabis product deliveries shall be tracked using the track
and trace system as designated by the division. Records of sales of cannabis
accessories shall be maintained by the cannabis courier, but may not be tracked
in the track and trace system designated by the division.
H. Record retention:
Delivery records, including certification of delivery, the cannabis and
cannabis product delivered, the date of delivery, and the time of delivery,
shall be maintained by the cannabis courier for a minimum of 12 months.
I. Delivery time and
location:
(1) Limitations
on the time of delivery shall comply with all local laws.
(2) Licensees
shall only deliver packages of cannabis or cannabis products to the address
provided by the retail cannabis licensee.
(3) Licensees
are prohibited from delivery to an individual consumer of more than two ounces of
cannabis, 16 grams or cannabis extract and 800 milligrams of edible cannabis.
[16.8.2.41 NMAC – N, 12/28/2021]
16.8.2.42 APPLICATION
REQUIREMENTS FOR CANNABIS COURIER LICENSE:
A. An initial application or renewal
for cannabis courier licensure shall include the following:
(1) Contact information for the applicant, to include:
(a) applicant’s full legal name;
(b) applicant’s date of birth, if applicable;
(c) applicant’s mailing address;
(d) applicant’s contact
telephone number;
(e) applicant’s contact email address;
(f) physical address and mailing address, if different; and
(g) demographic data
pursuant to the Cannabis Regulation Act;
(2) proof the applicant is at least 21 years of age, which shall include
identification issued by a federal or state government that includes the name,
date of birth, and picture of the applicant or controlling person;
(3) criminal history screening documents
as set forth in 16.8.2.9 NMAC and the Cannabis Regulation Act;
(4) a detailed description
of any criminal convictions of the applicant, including the date of each
conviction, dates of incarceration, probation or parole, if applicable,
description of the offense, and statement of rehabilitation of each conviction;
(5) certification the applicant will
adhere to courier requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(6) certification the
applicant will adhere to cannabis transport requirements pursuant to the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, or division rules;
(7) certification the
applicant will adhere to security requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(8) certification the
applicant will adhere to quality
assurance requirements pursuant to the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules;
(9) certification the applicant has never
been denied a license or had a license suspended or revoked by the division or
any other state cannabis licensing authority or a detailed description of any
administrative orders, civil judgements, denial or suspension of a cannabis
license, revocation of a cannabis license, or sanctions for unlicensed cannabis
activity by any state licensing authority, against the applicant, controlling
person, or a business entity in which the applicant or controlling person was a
controlling person within the three years immediately preceding the date of the
application;
(10) certification the
applicant is not licensed under the Liquor Control Act;
(11) an attestation of the following
statement: Under penalty of perjury, I hereby declare that the information
contained within and submitted with the application is complete, true and
accurate. I understand that a misrepresentation of fact or violation of these
rules may result in denial of the license application or revocation of a
license issued; and
(12) payment of any required fees as set
forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant by telephone, mail, or electronic mail;
(2) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(3) consulting with state
or local governments.
16.8.2.43 SEVERABILITY: If
any part or application of this rule is held to be invalid, the remainder or its application to other situations or persons
shall not be affected. Any section of this rule legally
severed shall not interfere with the remaining protections and duties provided by this rule.
[16.8.2.43
NMAC – Rp, 16.8.35 NMAC, 12/28/2021]
History of 16.8.2
NMAC: [RESERVED]