New Mexico Register / Volume XXXII,
Issue 16 /August 24, 2021
TITLE 16 OCCUPATIONAL
AND PROFESSIONAL LICENSING
CHAPTER 8 COMMERCIAL AND MEDICAL CANNABIS
PART 2 LICENSING AND OPERATIONAL
REQUIREMENTS FOR CANNABIS ESTABLISHMENTS
16.8.2.1 ISSUING AGENCY:
New Mexico Regulation
and Licensing Department, Cannabis
Control Division.
[16.8.2.1 NMAC - N, 08/24/2021]
16.8.2.2 SCOPE: This rule applies
to all licensees and applicant for licensure pursuant to
the Cannabis Regulation Act, the
Lynn and Erin Compassionate Use Act, or division rules.
[16.8.2.2 NMAC - N, 08/24/2021]
16.8.2.3 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 licensing
provisions of the Lynn and Erin Compassionate Use Act.
[16.8.2.3 NMAC - N, 08/24/2021]
16.8.2.4 DURATION: Permanent.
[16.8.2.4 NMAC - N, 08/24/2021]
16.8.2.5 EFFECTIVE DATE: August 24, 2021, unless
a later date is cited at the end of a section.
[16.8.2.5 NMAC - N, 08/24/2021]
16.8.2.6 OBJECTIVE: The objective of
Part 2 is to ensure the safe production,
testing, sale, and consumption of commercial and medical cannabis. Part 2 is not applicable to personal use of
cannabis pursuant to the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act.
[16.8.2.6 NMAC - N, 08/24/2021]
16.8.2.7 DEFINITIONS: Unless
otherwise defined below, terms used in Title 16, Chapter 8, Part 1, have the
same meanings as set for in 16.8.1 NMAC, the Cannabis Regulation Act, and the
Lynn and Erin Compassionate Use Act.
[16.8.2.7 NMAC - N, 08/24/2021]
16.8.2.8 GENERAL
OPERATIONAL REQUIREMENTS FOR CANNABIS ESTABLISHMENTS:
A. State and local laws: Pursuant to the Cannabis Regulation Act,
applicants and licensees shall comply with all applicable state and local laws
that do not conflict with the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act, including laws
governing food and product safety, occupational health and safety,
environmental impacts, natural resource protection, construction and building codes, operation
of a cannabis establishment,
employment, zoning, building
and fire codes, water use and quality, water supply, hazardous
materials, pesticide use, wastewater discharge, and business or professional licensing.
B. Licensure on
federally recognized Indian Nation, Tribe or Pueblo: The division shall not
approve an application for licensure to operate within the exterior boundaries
of a federally recognized Indian nation, tribe or pueblo located wholly or
partially in the state, unless the tribal government and the department have
entered an intergovernmental agreement to coordinate the cross-jurisdictional
administration of the laws of New Mexico and the laws of a tribal government
relating to the Cannabis Regulation Act or the Lynn and Erin Compassionate Use
Act.
C. Age requirements: All applicants for
licensure, including controlling persons of applicants, must be at least
twenty-one years of age. All employees of a commercial cannabis establishment
must be at least twenty-one years of age.
D. Consumption prohibited: Licensees shall
prohibit the consumption of cannabis or cannabis products on or within the
licensed premises unless a cannabis consumption area has been approved by the
division.
E. Illegal sale or distribution: Licensees shall not knowingly
and intentionally sell, deliver, or transport
cannabis or cannabis products to any person
that is not authorized to possess and receive
the cannabis or cannabis products pursuant to state law or division rules.
F. Sales of alcoholic
beverages prohibited: Licensees are
allowed to conduct other licensed activities, including activities pursuant to
the Hemp Manufacturing Act, Section 76-24-3 et
seq., NMSA 1978, except for sales of alcoholic beverages.
G. No
guarantee of licensure: An applicant
may not exercise any of the privileges of licensure until the division approves
the license application
and issues a license. The submission of an application is in no
way a guarantee that the application
will be accepted
as complete. A license shall be granted or denied within 90 days upon
acceptance of a completed application.
Information provided by the applicant and used by the division for the licensing
process shall be accurate and truthful. The division may initiate action to deny
licensure, or other administrative action against an applicant or licensee, pursuant
to the Uniform Licensing Act.
I. Computation of
time: The word “days” as used in this rule means calendar
days unless otherwise noted.
J. Display of license:
A
division license shall be displayed in a conspicuous place on the licensed
premises and must be made available upon request
by state and local agencies. If the licensed premises is open to
the public, the license shall be displayed in an area that is within plain
sight of the public.
K. Inventory
and sales equipment: The
division shall require
licensees to
utilize division approved track and trace equipment, software, and services.
L. Limitation of licensed
premises: Licensees shall conduct cannabis establishment operations solely on licensed premises approved
by the division.
M. Multiple licensee premises: Multiple licensees
may occupy a single licensed premises, provided each is individually licensed
by the division.
N. Reporting of theft or security incident to division:
Licensees shall submit to the division written notification of any attempted theft, theft, assault of employees
or patrons, robbery or attempted
robbery, break-in, or security
breach that occurs on the licensee’s premises, no later than 24
hours after the licensee first becomes
aware of the event. The description shall include a description of any property that was stolen or destroyed, and the quantity
of any cannabis
plants, cannabis and cannabis products that were stolen.
The licensee must provide a copy of the police report, video footage and any
other supporting evidence requested by the division. The premises must be
secured prior to continuing operations, including the replacement of locks,
doors, windows, repair of damaged structures or access points with comparable
or more secure replacement material.
O. Non-transferable or assignable license:
A license
shall not be transferred by assignment or otherwise
to other persons or locations. Unless the licensee
applies for and receives an amended license, the license
shall be void and returned to the division
when any one of the following situations occurs:
(1) location of the licensed premises changes;
(2) the discontinuance of operation
at a licensed premises; or
(3) suspension or revocation of the
license by the division.
P. Online application: All
applications for initial licensure, amended licensure, additional premises, and
renewal must be completed using the online application portal available on the
division website. Applicants shall first register for a user account.
Q. Complete
application and fees required: Applicants must submit a completed
application to the division before it will be accepted by the division as
complete and considered for approval or denial. License and additional premises
application or renewal fees must be paid at the time of application submission.
Annual plant fees must be paid upon the division’s approval of the initial
application or renewal application and approval of the number of cannabis
plants that a licensee may produce.
R. Process for incomplete application: In the event that an application for licensure is determined by the division to be incomplete, the division
shall notify the applicant by email and specify the information or materials
that remain to be submitted. If the applicant
does not submit
the required information or materials within 90 days of
receiving notice of the deficiency, the application shall be closed as incomplete
and the applicant
will be required
to submit a new application in order to resume
the application process.
All licensing or renewal fees are non-refundable and must be paid for each new
application.
S. Provisional license with contingencies: Upon written request
of the applicant, the division may issue a provisional license letter with
defined contingencies that the applicant must obtain documents that may be
pending approval of a cannabis establishment license or must be obtained from other
state agencies or local jurisdictions for the application to be considered
complete. The provisional license letter shall list the remaining items
necessary for the application to be complete and shall expire six-months from
the date the provisional license letter was issued to the applicant. Upon
written request of the applicant, the division may extend a provisional license
letter for an additional six-months. Final approval or denial of a license
shall be stated on the provisional license letter as contingent on the
applicant submitting all remaining items. Such a provisional license letter
shall not authorize an applicant to begin licensed cannabis activity.
T. Request
for clarifying information: Upon request of the division, an applicant
shall provide additional information required to process and fully review the
application. If the requested information is not received by the division
within 90 days from the date the application was deemed to be complete, the division
shall initiate action to deny licensure pursuant to the Uniform Licensing Act.
U. Physical
and email address: Applicants and licensees must provide a physical mailing
address and an email address. General correspondence from the division will be
sent to the applicant or licensee’s email address of record. Legal notice and
determinations regarding an application, renewal or an administrative action, including
an action taken by the division to deny, suspend, or revoke a license or impose
a sanction and civil monetary penalty, shall be sent to the last mailing
address and to the last email address furnished to the division. Licensees must
inform the division in writing of any change to its physical mailing address or
email address within 10 days of the change. If applicable, such changes may be
submitted via the online licensing portal. An applicant or licensee’s failure
to notify the division of a change in physical or email address does not
relieve the applicant or licensee from the obligation of responding to a
division communication.
V. Electronic signature: The division will accept an
electronic signature that complies with the Uniform Electronic Transactions Act,
Section 14-16-1 et seq., NMSA 1978, or
the Revised Uniform Law on Notarial Acts, or rules promulgated pursuant
thereto, on any documents required to be submitted to the division and that are
submitted electronically.
W. Withdrawal of
Application: An applicant may withdraw an application at any time prior to
the division’s issuance of a license or denial of a license. Requests to
withdraw an application must be submitted to the division in writing, dated,
and signed by the applicant. Withdrawal of an application shall not, unless the
division has consented in writing to such withdrawal, deprive the division of
its authority to institute or continue a proceeding against the applicant for
the denial of the license upon any ground provided by law or to enter an order
denying the license upon any such ground. The division shall not refund
application fees for a withdrawn application. An applicant may reapply at any
time following the withdrawal of an application and shall be required to submit
a new application and fee.
X. Closure of a
licensed cannabis establishment: A licensee that anticipates permanently ceasing
its business operations shall notify the division no later than 30 days prior
to closure. The licensee shall post public notice of the anticipated closure at
all licensed premises that are accessible to the public at least 14 days prior
to the closure. Any cannabis or cannabis products that are held by a licensee
on behalf of the licensee ceasing its business operations shall be returned to
the licensee ceasing business operations. Any cannabis or cannabis products
that are held by the licensee ceasing its business operations on behalf of
another licensee shall be returned to the originating licensee. Cannabis or
cannabis products that are otherwise held by a licensee shall, prior to the
licensee’s closure, be surrendered to either state or local law enforcement,
destroyed by the licensee in accordance with the wastage standards of this
rule, or donated to patients via a licensed cannabis establishment, provided
that the donation has been approved in writing by the division and that the
licensee has submitted documentation of the donation to the division. State and
local law enforcement are authorized to remove and destroy any cannabis or
cannabis products that are held by a person who has ceased to be licensed by
the division.
Y. Persons licensed pursuant to the medical cannabis
program: In order to be entitled to continue operating as a cannabis
establishment, a person properly licensed and in good standing pursuant to the
Lynn and Erin Compassionate Use Act on June 29, 2021, must submit a completed renewal
application for a cannabis establishment license, along with required fees,
within 30 days of the effective date of this rule. In the event the person does
not apply for such a license renewal within the required timeframe, the person
shall cease all production operations immediately. Upon approval, the licensee
shall operate pursuant to the Cannabis Regulation Act and rules adopted by the
division pursuant thereto, provided that the licensee shall continue to operate
pursuant to rules promulgated by the department of health for activities
authorized by virtue of the licensee’s medical program license to the extent
they do not conflict with rules adopted by the division pursuant to the
Cannabis Regulation Act.
Z. Application for variance:
(1) Any applicant or licensee may seek a
variance from division rule(s) and shall do so by filing a written petition
with the division. The petitioner may submit with the petition any relevant
documents or material, which the petitioner believes would support the
petition.
(2) Petitions
shall:
(a) state
the petitioner's name and address;
(b) state
the date of the petition;
(c) describe
the facility or activity for which the variance is sought;
(d) state
the address or description of the premises upon which the cannabis
establishment or activity is located;
(e) identify
the rule(s) from which the variance is sought;
(f) state
in detail the extent to which the petitioner wishes to vary from the rule(s)
and how the petitioner will ensure public health and safety is not negatively
impacted;
(g) state
why the petitioner believes that compliance with the regulation will impose an
unreasonable regulatory burden upon the cannabis establishment or activity; and
(h) state
the period of time for which the variance is desired, including all reasons,
data, reports and any other information demonstrating that such time period is
justified and reasonable.
(3) At
the discretion of the division, the adjudicatory procedures of the Uniform
Licensing Act may be used for guidance and shall not be construed to limit,
extend, or otherwise modify the authority and jurisdiction of the division.
(4) Prior to a final decision, the division will hold a public hearing pursuant to the Open Meetings Act, Section 10-15-1 et
seq., NMSA 1978. The purpose of the
hearing is to provide interested persons a reasonable opportunity to submit
data, views or arguments orally or in writing on the proposed variance. The
division, at its sole discretion, may determine whether to hold more than one
hearing. The division may act as the hearing officer or designate an
individual hearing officer to preside over the hearing. The hearing officer may
ask questions and provide comments for clarification purposes. The
hearing officer shall identify and mark all written comments submitted during
the hearing. The public comments should be labeled as exhibits for reference,
but do not require formal admission into the hearing record. Individuals
wishing to provide public comment or submit information at the hearing must
state their name and any relevant affiliation for the record and be recognized
before presenting. Public comment shall not be taken under oath. Any individual
who provides public comment at the hearing may be questioned by the hearing
officer. The hearing shall be conducted in a fair and equitable manner. The
hearing officer may determine the format in which the hearing is conducted, but
the hearing should be conducted in a simple and organized manner that
facilitates public comment. The rules of evidence shall not apply and the hearing
officer may, in the interest of efficiency, exclude or limit comment or
questions deemed irrelevant, redundant, or unduly repetitious.
(5) The division may grant the requested
variance, in whole or in part, subject to conditions, if the variance is not
contrary to the Cannabis Regulation Act, or public interest, does not have a
negative environmental impact, and is not detrimental to public health and
safety, or the division may deny the variance. If the variance is granted in
whole or in part, or subject to conditions, the division shall specify the
length of time that the variance shall be in place. A permanent variance may be
granted. If a permanent variance is not granted, a petitioner may reapply for a
variance once the time period expires.
(6) The
division shall set forth in the final order the reasons for its actions and
shall not be subject to review.
AA. Application for additional licensed
premises: Licensees must apply for the specific cannabis establishment
license type intended for each additional licensed premises as defined in the
Cannabis Regulation Act.
BB. Vertically
integrated cannabis establishment and integrated cannabis establishment
microbusiness:
(1) Applicants for a vertically integrated cannabis establishment or
integrated cannabis establishment microbusiness must meet all qualifications
for each type of cannabis establishment that is authorized pursuant to the
Cannabis Regulation Act.
(2) An
initial applicant for an integrated cannabis microbusiness or a vertically
integrated cannabis establishment license, must submit an application for
authorization to conduct one or more of the following:
(a) production
of cannabis;
(b) manufacturing
of cannabis products;
(c) retail
establishment; or
(d) courier
of cannabis products.
(3) Applicants
or licensees shall request authority to add or remove a cannabis establishment
activity by submitting an amended application, and any required additional
fees.
(4) If a
vertically integrated cannabis establishment applicant or licensee will not
conduct all cannabis establishment activity on a single premises, each
additional premises shall require an additional premises fee.
(5) An
applicant or licensee shall not conduct any activity for which additional
authority is required until it has received written approval from the division.
[16.8.2.8 NMAC - N, 08/24/2021]
16.8.2.9 CRIMINAL HISTORY SCREENING
REQUIREMENTS:
A. Initial licensure: Applicants for initial licensure shall consent to and undergo a national
criminal history background check and
department of public
safety (DPS) statewide
criminal history
screening background check no more than ninety
days prior to submitting an application. For purposes of this rule,
background checks shall be required for:
(1) each
partner of a limited partnership;
(2) each member of a
limited liability company;
(3) each director, officer,
or trustee of a corporation or trust; and
(4) any controlling person
of the applicant.
B. Authorized
change: If there is a change in membership of any of the above
listed person(s), an amended application and background check documentation shall be submitted, and each
new member must be approved
by the division
prior to a person assuming any duties or responsibilities for a
licensee.
C. Procedure for applicants:
(1) an applicant shall submit a request to the federal bureau
of investigation, the New Mexico department of public safety, or a designee
vendor for a current criminal history report through the national crime
information center (NCIC);
(2) the division shall
provide applicants the division’s originating agency identification (ORI)
number;
(3) an applicant shall
provide to the department of public safety, or its designated vendor, a criminal
background screening request, fingerprints, and supporting documentation,
including an authorization for release of information to the division in
accordance with the procedures of the department of public safety or its
designated vendor;
(4) the department of public
safety or its designated vendor will review state records and shall transmit
the fingerprints to the federal bureau of investigation for a national
screening; and
(5) the results of the
screening will be made available to the division for review.
D. Fees: All applicable fees associated with the national criminal history background check and New Mexico department
of public safety statewide
criminal history
background checks shall be paid by the applicant
or licensee.
E. Substantially
related convictions: The division shall review felony convictions pursuant to the Cannabis
Regulation Act and the Criminal Offender Employment Act. The following are considered substantially
related to the qualifications, functions, or duties of an applicant or person:
(1) a felony
conviction involving fraud, deceit, or embezzlement;
(2) a felony
conviction for hiring, employing, or otherwise using a person younger than
eighteen years of age to:
(a) prepare for sale,
transport or carry a controlled substance; or
(b) sell, give away or
offer to sell a controlled substance to any person; and
(3) a felony
offense for the possession, use, manufacture, distribution or dispensing or
possession with the intent to manufacture, distribute or dispense a controlled
substance. For purposes of this rule, a controlled substance shall not include
cannabis.
F. Duty to report potentially disqualifying event: Applicants and licensees must notify the division in writing within
seven days of any change of fact that would potentially result in the applicant
or licensee, including any of the persons listed in subsection A of this section,
being disqualified from holding a license pursuant to the Cannabis Regulation
Act or division rules, including a conviction for any crime specified in this
section. Failure to make required notification to the division may be grounds
for administrative disciplinary action. If the division has determined that the
person’s conviction does not disqualify the licensee from licensure, the
division shall notify the licensee in writing. The division may also initiate
administrative disciplinary action pursuant to the Uniform Licensing Act.
[16.8.2.9 NMAC - N, 08/24/2021]
16.8.2.10 SECURITY AND LIMITED-ACCESS AREA: All phases where cannabis or cannabis
products are cultivated, stored or held, weighed, packaged, manufactured,
disposed or wasted, all point-of-sale areas, and any room or area storing a
digital video surveillance system storage device shall take place in a
designated limited-access area where cannabis and cannabis products are not
visible from a public place without the use of binoculars, aircraft, or other
optical aids. For purposes of this rule, cannabis or cannabis products are not
visible if it cannot be reasonably identified. Licensees shall comply with the security
requirements set out in this rule to ensure that licensed premises and limited-access areas, including a vault, are secure.
A. Security alarm system: Licensees shall
install and maintain
at each premises
an operational security alarm system. The security alarm
system must be continuously monitored, whether electronically, by a monitoring
company, or other means determined to be adequate by the division, and provide
an alert to designated employees of the licensee and, if necessary, law
enforcement within 5 minutes after a notification of an alarm or a security
alarm system failure, either by telephone, email, or text message. Monitored
sensors are required on all perimeter entry points and perimeter windows, if
applicable. The system must include an audible alarm, which must be capable of
being disarmed remotely by the designated employee or the security company. Licensees
shall maintain, and make available to the division upon request, a description
of the location and operation of the security system, including the location of
the central control, a schematic of the security zones, and the name of the
security alarm company and monitoring company, if applicable.
B. Security alarm system
maintenance and failure: Licensees shall conduct a monthly
maintenance inspection and
make all necessary repairs to ensure the proper
operation of the security
alarm system. In the event of a security alarm system failure due to a loss of
electrical power or mechanical malfunction
that is expected to exceed an eight-hour period,
the licensee shall immediately notify the division within 48 hours following
the discovery of the failure, and provide alternative security
that may include closure of the premises. All security system equipment shall be
maintained in a secure location so as to prevent theft, loss, destruction and
alterations.
C. Inspection of
security alarm system records: Licensees
shall maintain documentation for a period of at least 12
months of all maintenance
inspections, servicing, alterations, and upgrades performed on the security alarm system.
All documentation must be available
during a division inspection.
D. Digital
video surveillance: Licensees
shall provide and maintain at each premises a digital video surveillance system
with a minimum camera resolution of 1280 x 720 pixels. The digital video
surveillance system shall further comply with the following requirements:
(1) the
digital video surveillance system shall at all times be able to effectively and
clearly record images of the area under surveillance;
(2) each
camera shall be permanently mounted and in a fixed location;
(3) cameras
shall be placed in a location that allows the camera to clearly record activity
occurring on the licensed premises that digital video surveillance is required under
subsection E of this section, and shall provide a clear and certain
identification of any person and activities in those areas.
E. Areas of digital
video surveillance: Areas that shall be recorded on the digital video
surveillance system include the following:
(1) areas
where cannabis and cannabis products are cultivated, produced, manufactured, weighed,
packed, stored, loaded, and unloaded for transportation, prepared, or moved
within the licensed premises;
(2) limited-access
areas;
(3) areas
storing a digital video surveillance-system storage device;
(4) entrances
and exits to the licensed premises; and
(5) all
point of sale (POS) locations to capture sale transactions.
F. Digital Video
Surveillance Recording: Licensees
shall comply with the following digital video surveillance recording
requirements:
(1) cameras shall record continuously 24
hours per day, or may be motion activated, and at a minimum of 15 frames per
second (FPS);
(2) the
physical media or storage device on which digital video surveillance recordings
are stored shall be secured in a manner to protect the recording from tampering
or theft;
(3) digital
video surveillance recordings shall be kept for a minimum of 30 days and
recordings of theft or security incidents as set forth in Subsection N of
16.8.2.8 NMAC shall be kept for a minimum of 12 months;
(4) digital
video surveillance recordings are subject to inspection by the division, and
shall be kept in a manner that allows the division to view and obtain copies of
the recordings at the licensed premises immediately upon request;
(5) upon
request, licensees shall send or otherwise provide copies of the recordings to
the division within 48 hours;
(6) recorded
images shall clearly and accurately display the time and date of the recording;
and
(7) time
shall be measured in accordance with the United States national institute standards
and technology standards.
G. Failure notification: A digital video
surveillance system shall be equipped with a failure notification system that
provides notification to the licensee of any interruption or failure of the digital
video surveillance system or digital video surveillance-system storage device.
A digital video surveillance system failure shall be reported to the division
immediately and operations shall cease as soon as safely possible until the
system is again operational.
H. Multiple licensees
premises: If multiple applicants or licensees seek to operate, or operate,
within the same premises, a single security system and digital video
surveillance system covering the entire premises may be used by all of the
licensees under the following conditions:
(1) each
applicant or licensee shall disclose on their premises diagram where the security
alarm system and the digital video surveillance cameras are located and where
digital video surveillance recordings are stored;
(2) each
applicant or licensee shall include in their application a certification that
all licensees shall be individually responsible for the operation, maintenance,
and record keeping requirements of the security alarm system, and that all
licensees shall have access to live monitoring of the digital video
surveillance system;
(3) each
applicant or licensee shall include in their application an explanation of how
the security alarm system and digital video surveillance system will be shared
with the division and authorities, as well as who is responsible for
maintenance of the security alarm system and the digital video surveillance
system, who is authorized to monitor the video footage and who is responsible
for storing any digital video surveillance recordings;
(4) each
applicant or licensee shall have immediate access to the digital video surveillance
recordings to produce them pursuant to subsection F of this section; and
(5) each
applicant or licensee shall be held responsible for any violations of the security
system or digital video surveillance requirements.
I. Locks: Licensees
shall ensure that limited-access areas can be securely locked using commercial-grade
locks that meet applicable building and fire codes. Licensees shall also use
commercial-grade locks that meet applicable building and fire codes on all
points of entry and exit to the licensed premises and access points to areas
where cannabis and cannabis products are stored.
J. Limited-access areas: A limited access area shall only be
accessible to a licensee and its authorized employees, authorized vendors,
contractors or other individuals conducting business that requires access to a
limited-access area, division staff or authorized designees, state and local
law enforcement authorities acting within their lawful jurisdictions, fire
departments and emergency medical services acting in the course of their
official capacity, or volunteers specifically permitted by the licensed
cannabis establishment. Licensees shall
ensure:
(1) only authorized employees of the licensee and other authorized
individuals have access to the limited-access areas of the licensed premises;
(2) a daily record log, which may be a sign-in and sign-out sheet at the
entrance of a premises, of all authorized employees and authorized individuals
that are not employees of the licensee who enter the limited-access areas is
maintained;
(3) limited-access record logs are
kept for a minimum of 90 days, or 12 months if a theft or security incident
occurs, and must be made available to the division within 48 hours upon
request;
(4) entrances to all limited-access areas have a solid door, or if
appropriate, a gate adequate to block access, and a lock meeting the
requirements set forth in subsection I of this section, and unless prohibited
by building or fire codes, the entrance shall remain locked when not in use
during regular business hours;
(5) all limited-access areas are identified by the posting of a sign that
shall be a minimum of 12” x 12” and which states: “Do Not Enter - Limited
Access Area - Access Limited to Authorized Personnel Only” in lettering no smaller
than one inch in height;
(6) authorized
employees of the licensee visibly display an employee identification badge at
all times while present within a limited-access area;
(7) other
authorized individuals obtain a visitor identification badge prior to entering
a limited-access area, the visitor identification badge shall be visibly
displayed at all times while the visitor is in any limited access area, and all
visitor identification badges shall be returned to the cannabis establishment
on exit.
K. Licensee identification badge requirement:
Licensees shall issue a laminated or plastic-coated identification badge to
all agents, officers, or other persons acting for or employed by a licensee,
which shall, at a minimum, include the licensee’s “doing business as” name and
license number, the individual’s first name, an employee number exclusively
assigned to that employee for identification purposes, and a color photograph
of the employee that clearly shows the full front of the employee’s face and
that is at least 1 inch in width and 1.5 inches in height.
L. Lighting: Any perimeter entry point of a
cannabis establishment must have lighting sufficient for observers to see, and
cameras to record, any activity within 20 feet of the gate or entry; and a motion detection lighting system may
be employed to light required areas in low-light conditions.
M. Doors and windows: All external
entrances to indoor facilities on the licensed premises must be able to be
locked and all perimeter doors and windows
of indoor facilities must be in good condition and lockable.
N. Fencing requirements for outdoor
areas or greenhouses: Any licensed premises that is an outdoor area or
greenhouse shall also implement security measures to ensure that the outdoor
area or greenhouse is not assessable to unauthorized individuals and is secure to
prevent and detect diversion, theft, or loss of cannabis, which shall at a
minimum include:
(1) a perimeter security fence designed
to prevent unauthorized entry to any cannabis cultivation areas and signs that
shall be a minimum of 12” x 12” and which states: “Do Not Enter - Limited
Access Area - Access Limited to Authorized Personnel Only” in lettering no smaller
than one inch in height; and
(2) a cover that obscures cannabis cultivation areas from being readily
viewed from outside of the fenced area.
O. Security guards: Security guards
are permitted but not required. Contract security guards must be licensed under
the Private Investigations Act, Section 61-27B-1 et seq., NMSA 1978. Security
guards must not consume cannabis or cannabis products or be intoxicated while
performing any duties for a licensee. Security guards must comply with all laws
related to firearms and other weapons.
P. Vault:
Licensees may store all non-growing cannabis, cannabis products, or cash not
being actively handled for purposes of cultivating, packaging, processing,
transporting, or selling within an adequately sized vault.
[16.8.2.10 NMAC - N, 08/24/2021]
16.8.2.11 RECALL OF CANNABIS:
A. Written procedures: Licensees shall establish and implement written
procedures for recalling
cannabis and
cannabis products that have been sold or otherwise
distributed to the
public or other cannabis establishments. Recall procedures shall be made available
for the division’s inspection upon request.
B. Recall procedures: The recall procedures shall identify:
(1) the circumstances in which a recall
will be conducted, including the circumstances involving the mislabeling or contamination of products;
(2) personnel responsible for implementing the recall procedures;
(3) procedures for notification of all customers who have, or reasonably could
have, obtained an affected product,
including communication and outreach
via broadcast media, as appropriate;
(4) procedures for notification of any other cannabis
establishment that supplied or received the recalled product;
(5) instructions to be provided
to customers or other cannabis establishments for the return or destruction of the recalled product; and
(6) procedures for the collection and wastage (as may be required by the division) of any recalled product.
C. Destruction
of recalled product: All recalled products that are intended to be destroyed
shall be wasted in accordance with the
wastage requirements of the
division.
D. Division notification: The licensee shall notify the division
of any recall within 24 hours of initiating the recall.
E. Division recall order: The division may order the immediate recall of cannabis or cannabis products if it deems such
action necessary to protect public health and safety.
[16.8.2.11 NMAC - N, 08/24/2021]
16.8.2.12 CHAIN OF CUSTODY:
A. Licensees
shall adopt, maintain,
and enforce chain of custody
procedures and documentation requirements to ensure appropriate tracking and tracing of cannabis and cannabis products. Licensees
shall use a paper-based or electronic chain of custody form that documents the
possession of cannabis or cannabis products, and includes the following:
(1) the
originating location of the cannabis or cannabis products;
(2) the
time and date of transfer of the cannabis or cannabis products;
(3) the
size, number of boxes, and number of pieces of cannabis or cannabis products;
(4) the
internal batch or lot numbers, and if different, the track and trace batch or
lot numbers;
(5) a
dated signature of the person receiving the cannabis or cannabis products; and
(6) for
cannabis samples, in addition to the above, the types of containers, mode of
collection, the authorized individual who collected the sample, the date and
time of collection, preservation, and requested analyses of the sample.
B. Licensees
shall also adopt, maintain, and enforce security requirements to ensure
security and the safety of cannabis
and cannabis products and transport personnel.
[16.8.2.12 NMAC - N, 08/24/2021]
16.8.2.13 REQUIREMENTS
FOR THE TRANSPORTATION OF CANNABIS:
A. General requirements: The following
requirements apply when disposing of wasted cannabis or cannabis plants or transporting
cannabis or cannabis products between licensees or licensed premises:
(1) transportation
of cannabis or cannabis products shall only be conducted by persons holding a
cannabis establishment license under the Cannabis Regulation Act or designated employees,
or contractors, of a licensee;
(2) prior
to transporting any cannabis or cannabis products to another licensee, the licensee
shall have a completed transfer or sales invoice or receipt and a chain of
custody form, the licensee shall only transport cannabis or cannabis products
listed on the invoice or receipt and chain of custody form, and the invoice or
receipt and chain of custody form may not be altered or changed once transport
begins;
(3) transportation
of cannabis or cannabis products by means of a human powered vehicle or
unmanned vehicle is prohibited;
(4) cannabis
or cannabis products shall only be transported inside of a motor vehicle or
trailer in reasonable operating condition and shall not be visible or
identifiable from outside of the vehicle or trailer;
(5) cannabis
or cannabis products shall be locked in a box, container, or cage that is secured
within the inside of the vehicle or trailer, including when such a box,
container, or cage is located inside of the trunk;
(6) vehicles and
trailers shall be locked and secured while left unattended;
(7) licensees
shall not leave a vehicle or trailer containing cannabis or cannabis products
unattended in a residential area;
(8) vehicles
shall have a vehicle alarm system ;
(9) packages
or containers holding cannabis or cannabis products shall not be tampered with,
or opened, during transport;
(10) when
engaged in the transportation of cannabis or cannabis products, a licensee
shall only travel between licensees shipping or receiving cannabis or cannabis
products and its own licensed premises;
(11) licensees
may transport multiple shipments of cannabis or cannabis products at one time in
accordance with applicable laws;
(12) licensees
shall not deviate from the travel requirements described in this section,
except for necessary rest, fuel, or vehicle repair stops;
(13) under
no circumstances may alcoholic beverages be transported with cannabis or cannabis
products;
(14) vehicles
and trailers transporting cannabis or cannabis products are subject to
inspection by the division at any licensed premises or during transport at any
time;
(15) notwithstanding
subsection A of this section, cannabis or cannabis products may be transported
by foot, hand truck, forklift, or other similar means if it is not
operationally feasible to transport cannabis products inside of a vehicle or
trailer because the licensed premises that the cannabis products will be
transported from and the licensed premises that will be receiving the cannabis
products are located within the same building or on the same premises;
(16) storage
and transportation of cannabis and cannabis products shall be under conditions
that will maintain and protect the cannabis or cannabis products against
physical, chemical, and microbial contamination as well as against
deterioration of the cannabis or cannabis products and the container;
(17) the
vehicle must be properly registered with the New Mexico motor vehicle division;
and
(18) the
driver of the vehicle must be prepared to show proper identification, including
a licensee employee badge, driver’s license, vehicle registration and proof of
insurance, and the appropriate shipping manifest and chain of custody form to
law enforcement and the division when requested.
B. Shipping manifest: Prior to transporting cannabis or cannabis
products, a licensee shall generate a shipping manifest through the track and
trace system for the following activities:
(1) testing
and sampling of cannabis or cannabis products;
(2) sale
of cannabis or cannabis products to a licensee;
(3) destruction,
wastage, or disposal of cannabis or cannabis products; and
(4) any other activity, as required by
the division or any other government authority.
C. Transmittal of manifest: Licensees shall transmit the shipping
manifest to the division and (if applicable) the licensee that will receive the
cannabis or cannabis products via the online track and trace portal prior to
transporting the cannabis or cannabis products.
D. Verification
of manifest: Licensees shall ensure
and verify that the cannabis or cannabis products being taken into possession
for transport at the originating licensed premises are described and accurately
reflected in the shipping manifest. For purposes of this section, the licensee
may verify that the cannabis or cannabis products are accurately reflected in
the shipping manifest by confirming that the number of boxes of cannabis or cannabis
products, type of cannabis or cannabis products, or the units of cannabis or cannabis
products matches the label on the boxes containing the cannabis or cannabis
products.
E. Rejection
of shipment: Licensees shall not take
into possession or transport:
(1) Any cannabis
or cannabis products that are not on the shipping manifest; or
(2) Any cannabis
or cannabis products that are less than or greater than the amount reflected on
the shipping manifest, with the exception of marginal weight difference due to
curing during transport.
F. Responsibility for discrepancy: The licensee transporting the cannabis
or cannabis product is responsible for any discrepancies between the shipping
manifest and the cannabis or cannabis products in its possession during
transport, and subject to any enforcement or disciplinary action related to
such discrepancy.
G. Void or change prohibited: Licensees shall not void or change a
shipping manifest after departing from the originating licensed premises.
H. Documentation
of all transport: A shipping manifest and chain of custody form shall
accompany every transport of cannabis products.
I. Alternative
notice of shipment: Notwithstanding any
provision of this section to the contrary, if a transporting licensee cannot
obtain access to the track and trace system, the licensee shall complete the
shipping manifest outside of the track and trace system and promptly transmit
it to the division and the licensee receiving the shipment by electronic mail.
If the transporting licensee has access to the track and trace system and the
licensee receiving the shipment does not have access to the track and trace
system, the transporting licensee shall complete the shipping manifest in the
track and trace system, transmit it to the division, and send a copy to the
licensee receiving the shipment by electronic mail.
[16.8.2.13 NMAC - N, 08/24/2021]
16.8.2.14 LICENSURE PERIOD, EXPIRATION AND RENEWAL:
A. License period: The licensure
period of a license
shall be from the date of approval of the license
application for a period of
12 months.
B. Automatic expiration of license:
Unless
otherwise renewed, suspended, or revoked, a
license shall
expire at 11:59 p.m. on the day indicated on the license as the expiration date or other written notification by the division.
C. License
renewal: To
timely renew a license, a completed license renewal application and annual
license fee set forth in 16.8.11 NMAC shall be received by the division from
the licensee no earlier than 60 calendar days before the expiration of the
license and no later than 30 days before the expiration of the license through
the division’s electronic licensing portal. Failure to receive a notice for
license renewal from the division does not relieve a licensee of the obligation
to renew all licenses as required. In the event a license renewal application
is not submitted and approved prior to the license expiration date, the
licensee must not sell, transfer, transport, manufacture, test, or distribute
any medical or commercial cannabis or cannabis products until the license is
renewed. Upon the nonrenewal of a license, the division may initiate
disciplinary action pursuant to the Uniform Licensing Act, Section 61-1-1 et seq., NMSA 1978.
[16.8.2.14 NMAC - N, 08/24/2021]
16.8.2.15 WASTAGE OF CANNABIS OR CANNABIS PRODUCTS; PERMITTED METHODS: Licensees that
waste cannabis or cannabis products shall do so by rendering the cannabis or
cannabis products unusable and unrecognizable prior to removal from licensed
premises. The wastage of cannabis or cannabis products shall be documented,
tracked by batch, and recorded in an electronic track and trace system
specified by the division. Wastage of cannabis or cannabis products shall occur
only within the licensee’s ordinary business hours. Licensees shall dispose of
wasted cannabis or cannabis products and shall not attempt to incorporate
wasted cannabis or cannabis plants into any product intended for human consumption.
A. Permitted methods of wastage: Wastage of cannabis or
cannabis plants shall be accomplished by grinding and incorporating the
cannabis into other ground material, such as soil, compost material, or leaf
and yard waste, so that the resulting mixture is at least fifty percent non-cannabis
material by volume;
B. Disposal of wasted cannabis: Disposal of wasted cannabis
or cannabis plants shall be conducted in accordance with all applicable waste
disposal laws, including hazardous waste disposal laws.
C. Holding time: Cannabis or cannabis products that a
licensee intends to waste shall be held in a secured designated holding area
for a minimum of 72-hours prior to being wasted. Licensees shall affix to each
batch that is held for wasting documents that record information concerning the
batch, including batch number or code, plant number, and weight. The batch to be
wasted shall not be handled, moved, or wasted during the 72-hour period, unless
by specific instruction of the division. Cannabis or cannabis products that are
intended to be wasted may be subject to inspection by the division.
D. Documentation of wastage; retention: Licensees shall
record the wastage of cannabis or cannabis products, including batch number,
weight, plant number, the name of the receiving solid waste facility, dates of
wastage and disposal, and any test results associated with a wasted batch,
using an electronic system specified by the division, and shall deduct any
wasted usable cannabis or cannabis plants from the licensee’s inventory. The
electronic record shall be retained for no less than two years following the
disposal. Licensees shall additionally document the wastage of any cannabis
using a video recording and shall retain the video recording of the destruction
for no less than 120 days. Licensees shall make the video recording of the
destruction available for the division’s inspection and copying upon the
division’s request.
E. Notice to division: Licensees shall notify the
division of the wastage of cannabis within five business days of the wastage.
[16.8.2.15 NMAC - N, 08/24/2021]
16.8.2.16 QUALITY
ASSURANCE TESTING;
COMPLAINT PROCEDURE:
A. Quality assurance testing by the division: The division
or its representative may conduct
quality assurance
sampling and testing of cannabis or cannabis products, and may require a licensee
to provide samples
of cannabis or cannabis
products for this purpose.
The division may additionally adopt and enforce a randomized testing schedule for the sampling
and testing of cannabis or cannabis products. The division
may prohibit the sale
or transfer of cannabis or cannabis products that are determined by the division to contain
prohibited levels of contaminants,
or that is found to have been improperly tested, or may require
remediation of such cannabis that is consistent with the remediation standards of the division.
B. Complaints: If the division receives a verified
complaint regarding the presence
of mold, bacteria, or another
contaminant in cannabis or cannabis products, or if the division
has reason to believe that the presence of mold, bacteria,
or another contaminant may jeopardize public
health and safety, the division or its representative may conduct
an inspection and may require a licensee
to provide samples
of cannabis or cannabis
products for testing by the division.
Licensees shall allow the division or its representative access to a facility
or to collect cannabis or cannabis product samples. To be considered verified,
a complaint must be made on a form provided by the division that at a minimum
identifies:
(1) date
the complaint is filed;
(2) location of the
cannabis or cannabis product;
(3) any identifiable
features of the cannabis or cannabis product at issue, including the type and
amount;
(4) the nature of the
complaint;
(5) name and contact
information of the complainant; and
(6) complaint must be
emailed to the licensee within 5 business days of the division receiving the
complaint.
C. Division sampling and testing requirements: Division
employees may possess cannabis samples for the sole purposes of establishing
compliance with the Cannabis Regulation Act or division rules. The division shall comply
with the following testing
requirements:
(1) the division shall maintain chain of custody
documentation for any cannabis
or cannabis product samples taken;
(2) a written receipt
shall be given to the licensee for all testing samples;
(3) all testing samples shall be
placed into a sealed container and clearly
labeled;
(4) all testing samples shall be
tested by the division or a designated testing facility; and
(5) the quantity of
cannabis or cannabis products that is gathered by the division
from a licensee for testing
purposes shall not exceed the applicable sample sizes required by division rules.
D. Cost
of testing: The licensee shall bear the cost of any testing required by the
division.
[16.8.2.16 NMAC - N, 08/24/2021]
16.8.2.17 FIRE
SAFETY LAWS: Licensees shall
ensure all licensed premises are compliant with Article 52 of the New Mexico
Statutes Annotated and any associated rules, including rules governing: posting
of address, exit signs, emergency lighting, egress paths, evaluation plan,
electrical wiring and lighting, exits and exit access, doors, egress hardware,
aisle width, chemical storage, fire extinguishers, fire alarm, sprinkler system
and fire suppression system, firewalls, combustible waste and housekeeping,
storage, access from the exterior, and weeds, grass, vines or other growth
capable of igniting.
[16.8.2.17 NMAC - N, 08/24/2021]
16.8.2.18 CONSTRUCTION OR
ALTERATION OF CANNABIS ESTABLISHMENT BUILDINGS: If applicable, licensees
shall ensure that all licensed premises are in compliance with the Construction
Industries Licensing Act, Section 60-13-1 et
seq., NMSA 1978 and the LPG and CNG Act, Section 70-5-1 et seq., NMSA 1978, including associated
rules, as well as applicable codes, standards, zoning laws, licensing laws, and
fire codes. If applicable, licensees shall further ensure that each structure, including
manufactured homes used pursuant to Section 60-14-4(S), NMSA 1978, obtains a
Certificate of Occupancy pursuant to 14.5.3.13 NMAC prior to occupancy and use
of the structure.
[16.8.2.18 NMAC - N, 08/24/2021]
16.8.2.19 OCCUPATIONAL
SAFETY: Licensees shall comply with the Occupational Health and
Safety Act, Section 50-9-1 et seq., NMSA 1978 and any associated rules.
[16.8.2.19 NMAC - N, 08/24/2021]
16.8.2.20 MONITORING OF LICENSEE:
A. Monitoring: The division may perform
on-site assessments of an applicant or licensee during normal business
hours to determine compliance with the Cannabis Regulation Act, the Lynn and
Erin Compassionate Use Act, or division rules.
B. Record access and review: The division may review any and all records related to the operations of the licensee and may
require and conduct
interviews with such persons or entities
and persons affiliated with such entities, for the purpose of determining compliance with division rules
or applicable laws. The
division shall have access to the financial
records of a licensee,
including sales records and data from point-of-sale systems, and shall be granted immediate access to inspect
or copy those records upon request.
C. Access
to premises: Licensees
shall provide the division timely
access to any material and information necessary for determining compliance with division
rules or applicable laws. Failure by a licensee
to provide the division
access to the premises
or materials may result in disciplinary action.
D. Monitoring documents: Any failure to adhere to division
rules or applicable laws documented by the division
during monitoring may result in disciplinary action.
E. Report to law enforcement: The division shall refer suspected criminal activity or complaints alleging criminal
activity that are made against a licensee
to appropriate federal, state,
or local law enforcement authorities.
F. Financial records: Licensees shall maintain detailed sales records
in a manner
and format approved
by the division, inform
the division of the location where such records
are kept, and promptly update the
division if the records
are removed.
G. Audit: Licensees shall submit the results of a
biennial audit to the division. The audit shall be conducted by an independent
certified public accountant; the costs of which shall be borne by the licensee.
Results of the audit shall be forwarded to the division.
The division may extend, in writing, a licensees audit requirement to three
years following the timely submission of two biennial unqualified audits or two
biennial unqualified reports.
H. Producer reports: A cannabis producer licensee shall submit
reports on an annual basis, or as otherwise
reasonably requested, and in the format specified
by the division. The annual report shall include:
(1) number of cannabis
plants and cannabis inventory;
(2) revenue from the
wholesale of cannabis;
(3) total number of transactions;
(4) number of units provided without charge;
(5) number of cannabis plants in production, including mature
and immature plants;
(6) number of cannabis plants harvested;
(7) total yield of
usable cannabis
harvested from cannabis plants (in grams);
(8) average yield per plant (in grams);
(9) amount of cannabis
(in grams) sold by wholesale;
(10) amount of cannabis
(in grams) purchased by wholesale;
(11) number of live cannabis plants (including clones) and cannabis
seeds sold;
(12) amount of dried cannabis
leaves and flowers
in stock;
(13) average price per gram of dried cannabis leaves and flowers;
(14) total amount of
dried cannabis leaves
and flowers sold (in units);
(15) total sales of
dried cannabis leaves and flowers (in dollars
and units);
(16) actual water and energy use
in the preceding 12 months;
(17) demographic information
required pursuant to the Cannabis Regulation Act, including data as defined by
the applicant’s social and economic equity plan, and the divisions published
social and economic equity plan; and
(18) all quality testing reports, to be included
as attachments.
[16.8.2.20 NMAC - N, 08/24/2021]
16.8.2.21 CANNABIS PRODUCER LICENSURE; GENERAL PROVISIONS:
A. License types: The division may license two classes
of producers:
(1) A cannabis producer; and
(2) A
cannabis producer microbusiness.
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 or division rules, a person shall not cultivate cannabis,
including planting, growing, and harvesting cannabis, except for personal use
as provided by the Cannabis Regulation Act and the Lynn and Erin Compassionate
Use Act.
D. Other activities prohibited: Except as
provided in subsection BB of 16.8.2.8 NMAC, no cannabis producer establishment licensee
may manufacture cannabis products, 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. Vertically integrated cannabis establishment and
integrated cannabis establishment microbusiness: Applicants for a
vertically integrated cannabis establishment or integrated cannabis
establishment microbusiness must meet all qualifications for a cannabis
producer or cannabis producer microbusiness to be approved for, and authorized
to conduct, cannabis producer activities.
[16.8.2.21 NMAC - N, 08/24/2021]
16.8.2.22 APPLICATION
REQUIREMENTS FOR CANNABIS PRODUCER LICENSE:
A. An initial application or renewal for
cannabis producer 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; and
(k) demographic data
pursuant to the Cannabis Regulation Act;
(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
and the method(s) to be used to produce cannabis 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 production, 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 from cannabis production 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, for irrigation
purposes for outdoor cultivation, or a commercial purpose for indoor
cultivation 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 plan to use, or
certification that the applicant cannot feasibly use, energy and water
reduction opportunities, including:
(a) drip
irrigation and water collection;
(b) natural
lighting and energy efficiency measures;
(c) renewable
energy generation; and
(d) estimated
water and energy use related to the applicants cultivation plan;
(7) a
copy of a current business license, fire inspection report, and zoning approval;
(8) 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;
(9) 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;
(10) 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;
(11) if
applicable, a description and legible
electronic image of the labeling and packaging of the cannabis or cannabis products that the producer shall utilize, which satisfies
the labeling 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;
(12) 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 medical
or commercial cannabis sold;
(13) the
initial number of mature cannabis plants, and immature cannabis plants, the
applicant proposes for production and the amount of water the applicant plans
to use on a monthly basis for a twelve month period;
(14) a
summary of the proposed operations, including a list of cannabis or cannabis
products produced at the location;
(15) certification
the applicant will adhere to production requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules, including creating and maintaining a
cultivation plan, and cannabis waste procedures for cannabis or cannabis products;
(16) 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,
including the transport of unprocessed cannabis
or cannabis products to other cannabis establishments;
(17) certification
the applicant will adhere to New Mexico department of agriculture (NMDA) pesticide
registration, licensing, and use requirements to ensure a safe product and environment;
(18) certification
the applicant will adhere to security requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules, including requirements relating to safety and security
procedures, security devices to be used, placement of security devices, personal
safety, and crime prevention techniques;
(19) 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, including
requirements relating to routine testing by a
licensed testing laboratory,
division inspection of licensed premises during normal business hours, and
testing of cannabis;
(20) 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;
(21) 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 medical or commercial 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;
(22) 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;
(23) 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
(24) payment
of any required application or licensure fees as set forth in 16.8.11 NMAC.
Cannabis plant fees, if applicable, shall be accessed by the division upon
approval of an initial application, additional premises application or renewal
application. The division must receive payment of cannabis plant fee prior to
cultivation of cannabis plants or, if applicable, at the time of renewal.
B. Verification of
information: The division
may verify information contained in each application and accompanying documentation, including:
(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.
[16.8.2.22 NMAC - N, 08/24/2021]
16.8.2.23 SUBMITTAL OF APPLICATION FOR AMENDED
CANNABIS PRODUCER LICENSE: A. Application: A licensed producer shall submit to the
division an application form for an amended license, pay the required fee, and must 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 in water source, or licensees water and energy
conservation plan, including, the reuse of water and disposal of effluent;
(4) increase in plant count beyond which
licensee is currently licensed to produce;
(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 change in the licensee’s access to the water source submitted with an application for
initial, amended, 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.
[16.8.2.23 NMAC - N, 08/24/2021]
16.8.2.24 PRODUCER PREMISES
DIAGRAM:
A. An applicant must submit to the
division, with the application, a complete and detailed diagram of the proposed
premises. The diagram shall be used by the division to determine whether the
premises meets the requirements of the Cannabis Regulation Act, the Lynn and
Erin Compassionate Use Act, or division rules. The division shall deny an
application if the premises does not qualify for licensure pursuant to federal,
state or local laws.
B. The diagram
shall show the boundaries of the property and the proposed premises to be
licensed, the dimensions of each area that cannabis plants will be cultivated, the
location(s) and the dimensions of other areas where other horticulture will be
cultivated, if applicable. The diagram shall also include, as applicable, any equipment
to be used, entrances and exits, interior partitions, location of lights in the
cannabis plant cultivation area(s) and the maximum wattage or wattage
equivalent, walls, rooms, windows, and doorways. The diagram shall include a
brief statement or description of the principal activity to be conducted in
each area on the premises.
C. The diagram
shall show where all cameras are located and assign a number to each camera for
identification purposes.
D. The diagram
shall be to scale.
E. The diagram
shall not contain any highlighting and the markings on the diagram shall be in
black-and-white print.
F. If the proposed
premises consists of only a portion of a property, the diagram must be labeled
indicating which part of the property is the proposed premises and what the remaining
property is used for.
G. If the proposed
premises consists of only a portion of a property that will contain two or more
licensed premises, then the diagram shall be supplemented with a description of
how two or more licensed premises will be managed on the property.
H. If a
proposed premise is located on only a portion of a property that also includes
a residence, the diagram shall clearly show the designated buildings for the
premises and the residence.
[16.8.2.24 NMAC - N, 08/24/2021]
16.8.2.25 PHYSICAL MODIFICATION OF PRODUCER PREMISES
A. Licensees
shall not, without the prior written approval of the division, make a physical
change, alteration, or modification of the licensed premises that materially or
substantially alters the licensed premises or the use of the licensed premises
from the premises diagram filed with the division.
B. Licensees
whose licensed premises is to be materially or substantially changed, modified,
or altered is responsible for filing a request for premises modification with
the division.
C. Material
or substantial changes, alterations, or modifications requiring approval
include:
(1) when
a building or structure will be erected, constructed, enlarged, altered,
repaired, moved, improved, removed, converted or demolished, as defined and
described in the applicable building codes, which require a permit from the
construction industries division or the appropriate local jurisdiction;
(2) when
electrical wiring, plumbing or mechanical work and LP gas work, as defined and
described in the applicable construction codes for those trades, is to be
installed, repaired or maintained in or on such building or structure, which
require a permit from the construction industries division or the appropriate
local jurisdiction;
(3)
re-roofing and application of roof coatings that requires a building permit and
inspections; or
(4) changing
the occupancy activities conducted in or the use of an area identified in the
last premises diagram provided to the division that requires a new certificate
of occupancy or fire inspection.
D. Licensees
shall request approval of a material or substantial physical change,
alteration, or modification in writing, and the request shall include:
(1) a
new premises diagram that conforms to requirements set forth in 16.8.2.18 NMAC;
(2) a
copy of the applicable building permit; and
(3) a
new certificate of occupancy, if applicable.
E. Licensees shall
immediately notify the division within 24 hours if a federal or state authority
requires a change to the premises;
F. Licensees
shall promptly provide additional documentation requested by the division to
evaluate the licensee’s request to modify the licensed premises; and
G. The
division shall notify the licensee, in writing, of approval or denial of a
request for physical modification no later than 10 days after receiving a
request.
[16.8.2.25 NMAC - N, 08/24/2021]
16.8.2.26 CANNABIS
PRODUCER POLICIES AND PROCEDURES:
A. Minimum policy and procedure requirements: A producer
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) employee
health and safety training
materials;
(b) training requirements for the proper
use of health and safety measures
and controls;
(c) representative
sampling and analytical testing of cannabis or cannabis products for contaminants
prior to wholesale or transfer to another cannabis establishment;
(d) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
product samples to a cannabis testing laboratory;
(e) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(f) 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) protocols
for testing sample collection that ensures accurate test results; and
(h) 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) if applicable,
confidentiality laws, including the Health Insurance Portability and
Accountability Act of 1996; and
(3) training documentation prepared for each employee
and statements signed by employees indicating the topics discussed, names and titles
of presenters, and the date, time, and place the employee received said training.
B. 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.
[16.8.2.26 NMAC - N, 08/24/2021]
16.8.2.27 MINIMUM REQUIREMENTS FOR THE PRODUCTION OF CANNABIS:
A. General requirements: Licensees shall ensure the following:
(1) all production activities are done on 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 Acts;
(2) the licensee’s right to use the quantity of water sufficient to meet the production facility’s needs
remains in good standing;
(3) plumbing shall be of adequate size and design,
adequately installed, and maintained to carry sufficient quantities of water to required locations throughout the facility, including sufficient quantities of water to properly
convey sewage
and liquid disposable waste from the facility;
and
(4) all 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.
B. Cultivation
plan: Licensees
shall create and maintain a cultivation plan, which shall include all of the following:
(1) a
detailed premises diagram showing all cultivation activity areas, boundaries,
and dimensions in feet.
(2) square
foot measurement of mature cannabis plant cultivation area(s), including
aggregate square footage if the mature cannabis plant cultivation areas are
noncontiguous;
(3) area(s)
outside of the mature cannabis plant cultivation areas where only immature
plants shall be maintained, if applicable;
(4) designated
pesticide and other agricultural chemical storage area(s);
(5) designated
processing area(s) if the licensee will process on site;
(6) designated
packaging area(s) if the licensee will package products on site;
(7) designated
composting area(s) if the licensee will compost plant or cannabis waste on
site;
(8) designated
secured area(s) for cannabis waste if different than composting area(s);
(9) designated
area(s) for harvested cannabis storage;
(10) designated
seed production area(s) which may contain mature plants for nursery purposes only.
C. Lighting: For
indoor and mixed-light cultivation, a licensee shall create and maintain a
lighting diagram, which shall include the following:
(1) location
of all lights in the cannabis plant cultivation area(s); and
(2) maximum
wattage, or wattage equivalent, of each light.
D. Pest management:
Licensees shall create and maintain a pest management plan, which shall include
product name and active ingredient(s) of all pesticides to be applied to
cannabis during any stage of plant growth. Licensees are encouraged to create
and implement integrated pest management protocols, including chemical, biological,
and cultural methods to control or prevent the introduction of pests on the
cultivation site.
E. Cannabis
waste:
Licensees shall create and maintain cannabis waste procedures meeting the
requirements set forth in 16.8.2.22 NMAC.
F. Safety and health requirements: Licensees shall ensure the following:
(1) all equipment, implements, and fixtures that are used for the production of cannabis shall be used exclusively for the production of cannabis and meet sanitation and safety standards
required by the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, division rules, and any other
state or federal laws;
(2) production is conducted in a manner
that does not allow cross-contamination from chemical or biological hazards;
(3) any person who, by medical
examination or supervisory observation, is shown to have, or appears to have, an illness,
open lesion, including a boil, sore,
or infected wound, or any other abnormal source of microbial
contamination for whom there is a reasonable possibility of contact with preparation surfaces for cannabis, shall be excluded
from any operations which may be anticipated to result in such contamination until the condition is corrected;
(4) hand-washing facilities are provided that are adequate,
accessible, furnished with running water at a suitable
temperature, conveniently located in indoor
production facilities, in restrooms, and wherever
good sanitary practices
require employees to wash or sanitize
their hands, and stocked with effective
hand-cleaning and sanitizing preparations, and sanitary
towel service or suitable
drying devices;
(5) all persons involved in preparing or handling
cannabis conform to hygienic
practices while on duty, including:
(a) maintaining adequate personal cleanliness;
(b) wearing gloves while
handling processed cannabis or unpackaged but processed cannabis products;
(c) possessing a valid New
Mexico environment department food handler card if handling processed cannabis
or unpackaged but processed cannabis products; and
(d) washing hands thoroughly in an adequate hand-washing facility
before starting work, at any other time when
the hands may have become soiled
or contaminated, and both before
putting gloves on and after removal
of gloves, if the person is
handling processed cannabis or unpackaged but processed cannabis products;
(6) operating systems for waste disposal are maintained in an adequate
manner so that they do not constitute a source of contamination in areas
where cannabis is exposed;
(7) water damage is properly and timely treated to protect health
and safety of employees and the public, and that fiberglass and other insulation material is not exposed;
(8) adequate safety-type lighting in all areas where cannabis
is produced or stored, if applicable, and where equipment
is cleaned;
(9) rubbish is disposed
of so as to minimize the development of odor, minimize the potential for the waste becoming an attractant and harborage, or breeding
place for pests;
(10) premises, fixtures, and physical facilities where cannabis or cannabis products are produced
are maintained to ensure the health and
safety of employee and the public;
(11) contact surfaces, including
utensils and equipment used for preparation of cannabis
or cannabis products, are cleaned and sanitized as frequently as necessary to protect
against contamination;
(12) only environmental protection agency
(EPA) registered sanitizing agents
are used in production operations and that they are used in accordance with labeled instructions;
(13) toxic cleaning compounds, sanitizing agents, and pesticide chemicals shall be identified, held, and stored in a manner that protects against contamination of cannabis
or cannabis products and that otherwise satisfies the requirements of this rule;
(14) storage and transportation of cannabis
and cannabis products is accomplished under
conditions that will maintain security
and protect the cannabis
or cannabis products against physical, chemical, and microbial contamination, as well as against deterioration of the cannabis or cannabis products and the container; and
(15) that there is sufficient
space for placement of equipment and storage of material as is necessary for
the maintenance of sanitary operations for production of cannabis.
[16.8.2.27 NMAC - N, 08/24/2021]
16.8.2.28 USE OF PESTICIDES BY LICENSED PRODUCERS: The use of any pesticide by a licensed producer in the growth
of cannabis shall be in accordance with the New Mexico Pesticide Control Act, Section 76-4-1 et seq., NMSA 1978, and any
associated rules.
[16.8.2.28 NMAC - N, 08/24/2021]
16.8.2.29 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.
[16.8.2.29
NMAC - N, 08/24/2021]
History of 16.8.2
NMAC: [RESERVED]