TITLE 16 OCCUPATIONAL AND PROFESSIONAL
LICENSING
CHAPTER 8 COMMERCIAL AND MEDICAL CANNABIS
PART 8 CANNABIS
PLANT LIMITS AND PROCESS TO ADDRESS SHORTAGE OF CANNABIS SUPPLY IN THE MEDICAL
CANNABIS PROGRAM
16.8.8.1 ISSUING AGENCY: New Mexico Regulation
and Licensing Department, Cannabis
Control Division.
[16.8.8.1 NMAC - N, 08/24/2021]
16.8.8.2 SCOPE: This rule applies
to all persons licensed or seeking to be licensed to
produce, manufacture, and sell cannabis pursuant to the Cannabis Regulation Act.
[16.8.8.2 NMAC - N, 08/24/2021]
16.8.8.3 STATUTORY AUTHORITY: The requirements set forth herein are promulgated by the cannabis control division pursuant to the authority
granted under the Cannabis Regulation Act, and the Lynn and
Erin Compassionate Use Act.
[16.8.8.3 NMAC - N, 08/24/2021]
16.8.8.4 DURATION: Permanent.
[16.8.8.4 NMAC - N, 08/24/2021]
16.8.8.5 EFFECTIVE DATE: August 24, 2021, unless
a different date is cited at the end of a section.
[16.8.8.5 NMAC - N, 08/24/2021]
16.8.8.6 OBJECTIVE: The objective of
Part 8 is to establish the limit of mature cannabis plants a licensee is
authorized to
cultivate pursuant to the Cannabis
Regulation Act.
[16.8.8.6 NMAC - N, 08/24/2021]
16.8.8.7 DEFINITIONS: Unless
otherwise defined in Title 16, Chapter 8, Part 1, terms used in Title 16,
Chapter 8, have the same meanings as set forth in the
Cannabis Regulation Act and the licensing authority under the Lynn and Erin Compassionate
Use Act.
[16.8.8.7 NMAC - N, 08/24/2021]
16.8.8.8 GENERAL
PROVISIONS FOR PLANT COUNT:
A. Cannabis plant growth cycle: For purposes of
this rule, the cannabis plant growth cycle is based on the following four stages:
(1) germination stage includes a seed sprouting to form a seedling;
(2) seedling
stage includes a shoot emerging from the soil surface, eventually forming the
first leaves;
(3) vegetative stage is the period of growth between
germination and the beginning of flowering, including cloned cannabis
plants; and
(4) flowering stage is the reproductive
state of the cannabis plant in which there are physical signs of flower budding
out of the nodes in the stem.
B. Mature cannabis plant: For purposes of
this rule, a mature cannabis plant shall be a female cannabis plant in the
flowering stage.
[16.8.8.8
NMAC - N, 08/24/2021]
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) 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;
(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
(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 – 2,000 mature cannabis
plants;
(2) Level 2: 2,001 – 6,000 mature
cannabis plants;
(3) Level 3: 6,001 – 12,000 mature
cannabis plants; or
(4) Level 4: 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 mature
cannabis plants.
D. Limit
of incremental increase: A licensee may be allowed to increase its
authorized mature cannabis plant count up to eight 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 20,000 mature cannabis plants at one time.
[16.8.8.9 NMAC - N, 08/24/2021; A/E, 01/13/2022; A,
03/22/2022]
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
reported number of plants harvested in the preceding three months;
(4) applicant’s
medical cannabis and commercial cannabis sales in the preceding three months;
(5) applicant’s
total cannabis sales; and
(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; A,
03/22/2022]
16.8.8.11 ADDRESSING
A SHORTAGE OF MEDICAL CANNABIS:
A. Upon the division allowing
commercial cannabis retail sales, cannabis retail establishments shall make
reasonable efforts to sell a minimum of twenty-five percent of their monthly
cannabis sales to qualified patients, primary caregivers, and reciprocal
participants, or to other licensed cannabis retail establishments that meet or
exceed the twenty-five percent sales to qualified patients, primary caregivers,
and reciprocal participants until December 31, 2022.
B. Upon the division allowing
commercial cannabis retail sales, licensed cannabis producers, including
cannabis producer microbusinesses, vertically integrated cannabis establishments,
and integrated cannabis microbusinesses, and cannabis manufactures shall make reasonable
effort to sell wholesale to licensed cannabis retail establishments that meet
or exceed the twenty-five percent sales to qualified patients, primary
caregivers and reciprocal participants until December 31, 2022.
C. After December 31, 2022, the
division may take the following measure to address a shortage of cannabis
supply in the medical cannabis program:
(1) require all licensed cannabis retail establishments
to ensure that at least ten percent of their cannabis and cannabis products in
stock on a monthly basis is designated for sale to qualified patients, primary
caregivers, and reciprocal participants; or
(2) reduce the per plant fee for
designated medical cannabis plants to incentivize increased production of
cannabis plants to remedy a shortage of cannabis supply in the medical cannabis
program; and
(3) after having first exhausted measures
to increase production of cannabis plants, the division may exclude commercial
cannabis activity from the scope of new licenses issued to initial applicants
for a vertically integrated cannabis establishment, cannabis producer,
integrated cannabis microbusiness, cannabis producer microbusiness, or cannabis
manufacturer license, which limitation shall be in force for a period of at
least six months; and
(4) require licensees who are licensed to
produce cannabis to produce a specified quota of mature cannabis plants to be
designated for use in the medical cannabis program, provided that:
(a) the division may require a licensee
to devote no more than twenty-five percent of the licensee’s cultivated
cannabis plants on a monthly basis for use in the medical cannabis program; and
(b) the division may require additional specific
tracking of cannabis plants.
[16.8.8.11 NMAC - N, 08/24/2021]
16.8.8.12 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.
[16.8.8.12
NMAC - N, 08/24/2021]
History of 16.8.8 NMAC: [RESERVED]