New Mexico Register / Volume XXXIII, Issue 2 / January 26,
2022
This is an emergency amendment to 16.8.8
NMAC amending Sections 9 and 10, effective 1/13/2022.
16.8.8.9 CANNABIS
PLANT LIMIT TIER LEVELS:
A. Initial
license designation: For the purpose of determining the number of mature
cannabis plants a licensee may be allocated to cultivate, all cannabis producer
and vertically integrated cannabis establishment licenses issued on or after August
15, 2021, will be designated by the division as a level 1, level 2, level 3, or
level 4. Cannabis plant count level placement shall be based on the following
factors:
(1) applicant’s requested mature cannabis
plant limit level;
(2) applicant’s demonstration of a legal
right to use the quantity of water needed for the level of mature cannabis plants
cultivated based on the applicant’s cannabis cultivation plan;
[(3) applicant’s facility diagram and canopy size;]
[(4)] (3) if applicable,
whether the applicant’s reported number of mature cannabis plants harvested in
the preceding six months was a minimum of eighty percent of applicant’s
authorized mature plant count limit;
[(5)] (4) if applicable, whether
the applicant’s total cannabis sales were a minimum of seventy-five percent of
applicant’s reported production of cannabis during the six months preceding
applicant’s request; and
[(6)] (5) applicant’s
social equity plan, 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.
B. Designated mature
cannabis plant levels:
(1) Level 1: [201 – 1,000] 401
– 2,000 mature cannabis plants;
(2) Level 2: [1,001 – 3,000] 2,001
– 6,000 mature cannabis plants;
(3) Level 3: [3,001 – 6,000] 6,001
– 12,000 mature cannabis plants; or
(4) Level 4: [6,001 – 8,000] 12,001
– 16,000 mature cannabis plants.
C. Incremental
increase: A licensee may increase the number of mature cannabis plants, at
the time of renewal and one other time per year. An authorized mature cannabis
plant count increase shall only be approved in increments of [500] 1,000
mature cannabis plants.
D. Limit
of incremental increase: A licensee may be allowed to increase its authorized
mature cannabis plant count up to four increments at a time upon application
and approval by the division.
E. Immature Plants: For purposes of
calculating the maximum number of authorized mature cannabis plants, the germination,
seedling, and vegetative stages are classified as immature cannabis plants and
are excluded from a licensees approved cannabis plant level.
F. Maximum
cannabis plant count: In no event shall a licensee be permitted
to grow more than [10,000] 20,000 mature cannabis plants at one
time.
[16.8.8.9 NMAC - N, 08/24/2021; A/E, 01/13/2022]
16.8.8.10 PLANT
INCREASE REQUEST:
A. A licensee may request
an increase of the
number of mature plants licensed at the time of renewal and at one other
time per year. To be considered for approval by the division, the licensee
shall provide, in addition to required fees set forth in 16.8.11 NMAC, the
following information to demonstrate the licensee’s capacity for a mature
cannabis plant count increase, licensee’s compliance with the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules:
(1) a current inventory of mature cannabis plants and harvested cannabis;
(2) applicant’s
demonstration of a legal right to use the quantity of water needed for the
level of mature plants to be cultivated based on the applicant’s cultivation
plan;
[(3) applicant’s facility diagram and
canopy size;]
[(4)] (3) applicant’s
reported number of plants harvested in the preceding three months;
[(5)] (4) applicant’s
medical cannabis and commercial cannabis sales in the preceding three months;
[(6)] (5) applicant’s total
cannabis sales; and
[(7)] (6) progress on
implementation of applicant’s social equity plan, 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, or other rural historic communities.
B. The division shall make a determination to approve
or deny a licensee’s
request to increase
mature cannabis plant count based on the information
provided and the following factors:
(1) the licensee has
met the required minimum sale of medical cannabis each month for the last 3
months it has operated;
(2) the licensee has sold at least eighty
percent of its cannabis or cannabis products each month for the
last 3 months it has operated;
(3) the existence of any
pending or final enforcement action taken by the division against the licensee;
(4) whether
there is a shortage of cannabis
in the medical cannabis program during the most recent 6-month period, including throughout the state and in underserved
geographical regions;
(5) whether the licensee’s
cultivation plan to increase mature cannabis plants meets the requirements for
licensure, including access to water and water usage; and
(6) the completeness of information and data provided to the division.
C. Ground
for Denial:
The division may deny a request for additional mature cannabis plants based on
the information provided or for violating the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules, including the licensee
exceeding its authorized mature cannabis plant count during the prior three-month
period.
[16.8.8.10 NMAC - N, 08/24/2021; A/E, 01/13/2022]