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 21 years of age. All
employees of a commercial cannabis establishment must be at least 21 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.
H. Computation
of time: The word “days” as used
in this rule means calendar days unless otherwise noted.
I. 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.
J. Inventory and sales equipment: The
division shall require
licensees to
utilize division approved track and trace equipment, software, and services.
K. Limitation of licensed
premises: Licensees
shall conduct cannabis establishment operations solely on licensed premises approved
by the division.
L. Multiple licensee premises: Multiple licensees may, upon determination by the division,
occupy a single licensed premises, provided each is individually licensed by
the division.
M. 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.
N. 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.
O. Online
application: Online application: All applications for initial licensure,
amended licensure, additional premises, and renewal must be made available on
the division website. If applicable,
applicants shall first register for a user account.
P. 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.
Q. 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.
All licensing or renewal fees are non-refundable and must be paid
for each new application.
R. 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.
S. 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.
T. 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.
U. 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.
V. 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.
W. 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.
X. 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 division
notifying the licensee that a renewal application is available. 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.
Y. 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. The division shall deny any request
for a waiver related to a legal right to water pursuant to Paragraphs (3) and
(4) of Subsection B of Section 26-2C-7 NMSA 1978.
(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.
Z. 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.
AA. 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, 08/22/2021; A/E,
12/06/2021; A, 03/22/2022]
16.8.2.9 CRIMINAL HISTORY SCREENING
REQUIREMENTS:
A. Initial
licensure: Applicants for initial licensure shall submit to a criminal
history screening. For purposes of this rule, a criminal history screening
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 a criminal
history screening 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. Criminal history screening procedure for applicants and
the division:
(1) an
applicant shall submit a background screening request, including an
authorization for release of information, to the New Mexico department of
public safety for a current New Mexico state criminal history report;
(2) the New Mexico department of public
safety will review state records;
(3) the results of the screening will be
made available to the division for review;
(4)
the applicant shall submit a signed and sworn affidavit, witnessed and
notarized by a notary public with a valid commission, affirming that the
applicant has or has not been convicted of the following offenses:
(a) a
felony conviction involving fraud, deceit, or embezzlement;
(b) a
felony conviction for hiring, employing, or otherwise using a person younger
than 18 years of age to:
(i) prepare
for sale, transport or carry a controlled substance; or
(ii) sell,
give away or offer to sell a controlled substance to any person; or
(c) a
felony conviction for the possession, use, manufacture, distribution, or
dispensing or possession with the intent to manufacture, distribute or dispense
a controlled substance, which no longer includes cannabis.
D. Fees: All
applicable fees associated with the New Mexico department of public safety
state criminal history background checks shall be paid by the applicant or
licensee.
E. 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
offense 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, 08/22/2021; A/E, 12/06/2021; A, 03/22/2022]
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 include 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; A, 03/22/2022]
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) actual water and energy
use in the preceding 12 months;
(2) 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;
(3) progress made toward the
licensee’s social and economic equity plan; and
(4) all quality testing reports, to be included
as attachments.
I. Manufacturer reports: A cannabis manufacturer 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) actual water and energy
use in the preceding 12 months;
(2) 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;
(3) progress made toward the
licensee’s social and economic equity plan; and
(4) all quality testing reports, to be included
as attachments.
J. Testing laboratory reports: A cannabis testing laboratory 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) total number of test failures by
product type;
(2) number of failures by product type;
(3) total number of calibrations
conducted;
(4) total number of calibrations
categorized by test code or analysis type;
(5) total number of audits conducted by
an accredited laboratory auditing service; and
(6) number of proficiency tests conducted
by test code or analysis type.
K. Retailer reports: A cannabis retailer 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) 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
(2) progress made toward the licensee’s
social and economic equity plan.
[16.8.2.20 NMAC - N, 08/24/2021; A, 03/22/2022]
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
found on the division website.
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.
[16.8.2.21 NMAC – N, 08/22/2021; A/E, 12/06/2021; A, 03/22/2022]
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) 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.
(4) 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;
(5) if
applicable, certification the applicant is in good standing
with the New Mexico secretary of state,
including all documents filed with the New Mexico secretary of state;
(6) a list of all
controlling persons, a list of other current or prior licensed cannabis
businesses, documentation of the applicant’s or a controlling person legal name
change, and criminal history screening documents as set forth in 16.8.2.9 NMAC
and the Cannabis Regulation Act;
(7) a detailed description
of any criminal convictions of the applicant and any controlling person,
including the date of each conviction, dates of incarceration, probation or
parole, if applicable, description of the offense, and statement of
rehabilitation of each conviction;
(8) 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;
(9) 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;
(10) 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;
(11) 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;
(12) 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;
(13) 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;
(14) 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;
(15) 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;
(16) applicant’s
social and economic equity plan to encourage economic and social diversity in
employment, including race, ethnicity, gender, age, and residential status of
licensee, controlling persons and employees of applicant and whether the
applicant, controlling persons, employees or the locations where the cannabis
products are produced are located in an underserved rural community, including
tribal, acequia, land grant-merced, federally designated opportunity zone, or
other rural historic communities;
(17) certification
the applicant has obtained a current local jurisdiction business license, or
will prior to operation of the cannabis establishment, and the applicant shall
adhere to local zoning ordinance;
(18) certification
the applicant will maintain at all times a legible and accurate diagram and description of the location of the land or facility
used for the cannabis establishment and the method(s) to be used to
produce cannabis;
(19) 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
(20) 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, 08/22/2021; A/E, 12/06/2021; A/E, 1/13/2022; A, 03/22/2022]
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 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 or elimination of a controlling person;
(6) material or substantial
change to a license’s security system; or
(7) material or
substantial modification of the premises.
B. Amended license not required:
Changes
to standard operating policies and procedures may be made without providing
notification to the division, provided that licensees shall maintain at each
licensed premises a copy of all current and prior operating policies and
procedures.
C. Requirements and processing of application for amended
license: The application for amended license must comply with all
requirements applicable to initial applications, except that the application
shall be clearly designated as one for an amended license. The division shall
approve or deny an application for amended license within 90 days of receiving
a completed application. Denial of an application for amendment shall be
pursuant to the Uniform Licensing Act.
D. Material or
substantial change: Material or substantial changes requiring approval
include:
(1) increase or decrease in the size of the premises,
including the sale of property used for the cannabis establishment, or the
purchase of additional property for the use 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 ten percent, or more, increase in
the licensee’s water usage;
(3) change to a license’s
security system, including relocation or security points or installation
of a new security system; or
(4) modification
of the premises to relocate cannabis activities.
[16.8.2.23 NMAC – N, 08/22/2021; A/E, 12/06/2021]
16.8.2.24 PRODUCER
PREMISES DIAGRAM:
A. An applicant must maintain on its
licensed premise at all times, a complete and detailed diagram of the 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.
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; A/E, 01/13/2022; A,
03/22/2022]
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.
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 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
copy of the applicable building permit; and
(2) 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; A/E, 01/13/2022; A,
03/22/2022]
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 consistent with
self-sampling guidance issued annually by the division on September 1 and made
available on the division website, the sunshine portal, and at the division’s
district, field and regional offices;
(d) recordkeeping and chain of custody
protocols for transportation of cannabis or cannabis product samples to a
cannabis testing laboratory, consistent with 16.8.2.12 NMAC and 16.8.2.13 NMAC;
(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, consistent with Subsection L of 16.8.7.8 NMAC;
(g) protocols for testing sample
collection that ensures accurate test results, establishment consistent
with self-sampling guidance issued annually by the division on September 1 and
made available on the division website, the sunshine portal, and at the division’s
district, field and regional offices; 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) 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 receipt of policies and procedures.
B. Training program:
(1) Licensee shall implement a training
program, approved by the division, to ensure that all personnel present at the
premises are provided information and training that, at minimum, covers the
following topics within 30 days of the start of employment:
(a) employee health and safety training
materials;
(b) health and safety hazards;
(c) hazard communication training for all
solvents or chemicals used at the licensed premises and as described in the
safety data sheet for each solvent or chemical;
(d) training
requirements for the proper use of health and safety measures and controls;
(e) emergency procedures;
(f) security procedures; and
(g) record keeping requirements.
(2) A licensee, or employee, involved in
the handling, transportation, manufacture, extraction, testing, or packaging of
cannabis products must successfully complete a food handler course accredited
by the American National Standards Institute (ANSI) prior to conducting any
related activities. Such training shall be maintained while employed under a
manufacturing licensee. The licensee shall obtain documentation evidencing the
fulfillment of this requirement.
C. Training documentation:
(1) Licensee shall ensure that all
personnel receive annual refresher training to cover, at minimum, the topics
listed in this section. The licensee shall maintain a record, which contains at
minimum:
(a) a list of all personnel at the
premises, including at minimum, name and job duties of each;
(b) documentation of training topics and
dates of training completion for all personnel;
(c) dates of refresher training
completion for all personnel;
(d) the signature of verifying receipt
and understanding of each training or refresher training completed.
(2) Licensee may designate supervisory
personnel with responsibility to oversee the requirements of this section.
D. Retention of training documentation: Licensees shall
maintain documentation of an employee’s training for a period of two years for
current employees and at least six months after the termination of an
employee’s employment.
[16.8.2.26
NMAC – N, 08/22/2021; A/E, 12/06/2021; A/E, 03/10/2022]
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 food handler card
issued by an ANSI/ASTM e2659-09 accredited Food Handler Training Certificate
Program approved by the New Mexico environment department 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; A/E, 12/02/2021]
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 NMAC – N/E, 09/08/2021; N, 12/28/2021; A, 03/22/2022]
16.8.2.30 APPLICATION
REQUIREMENTS FOR CANNABIS MANUFACTURER LICENSE:
A. An
initial application or renewal for cannabis manufacturer licensure shall include
the following:
(1) Contact information for the applicant and the cannabis
establishment, to include:
(a) applicant’s full legal name;
(b) applicant’s mailing address;
(c) applicant’s contact
telephone number;
(d) applicant’s contact email address;
(e) applicant’s business physical address and mailing
address, if different;
(f) applicant’s business legal name,
including a DBA name if applicable;
(g) applicant’s business web address, if applicable;
(h) applicant’s business hours of operation;
(i) name and contact information for
each controlling person;
(j) demographic data
pursuant to the Cannabis Regulation Act; and
(k) license type sought
(Class I, Class II, Class III, or Class IV);
(2) proof the applicant or each controlling person is at
least 21 years of age, which shall include identification issued by a federal
or state government that includes the name, date of birth, and picture of the
applicant or controlling person;
(3) demonstration of a
legal right to use the quantity of water that the division determines is needed
for cannabis manufacturing, as evidenced by either:
(a) documentation
from a water provider that the applicant has the right to use water from the
provider and that the use of water for cannabis manufacturing is compliant with
provider's rules, or
(b) documentation
from the office of the state engineer showing that the applicant has a valid
and existing water right, or a permit to develop a water right, at the proposed
place of use of the cannabis establishment. The documentation may include any
of the following:
(i) a
state engineer permit or license in good standing, but not including a permit
issued pursuant to Sections 72-12-1, -1.1, -1.2, or -1.3, NMSA 1978;
(ii) a
subfile order or decree issued by a water rights adjudication court;
(iii) the
findings of an office of the state engineer hydrographic survey; or
(iv) other documentation the office of the
state engineer has deemed in writing as acceptable to the office of the state
engineer under this rule;
(4) if
applicable, certification the applicant is in good standing
with the New Mexico secretary of state,
including all documents filed with the New Mexico secretary of state;
(5) a list of all
controlling persons, a list of other current or prior licensed cannabis
businesses, documentation of the applicant’s or a controlling person legal name
change, and criminal history screening documents as set forth in 16.8.2.9 NMAC
and the Cannabis Regulation Act;
(6) a detailed description
of any criminal convictions of the applicant and any controlling person,
including the date of each conviction, dates of incarceration, probation or
parole, if applicable, description of the offense, and statement of
rehabilitation of each conviction;
(7) if
applicable, proof of prior approval by the New Mexico regulation and licensing department for the use of any compressed gas extraction equipment to be utilized
by the manufacturer;
(8) if
applicable, a sample of the record form(s),
which shall identify (among
other items) the name
of the wholesale purchaser, the date of the
sale, the quantity, and price of cannabis
sold;
(9)
for class II, III, and IV licenses, documentation that the applicant has
obtain all necessary authority required for the production of edibles and
topicals from the New Mexico environment department and that such authority is
valid at the time the license application is submitted;
(10) certification the applicant will adhere
to manufacturing requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(11) 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;
(12) certification
the applicant will adhere to security requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(13) 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;
(14) certification the
applicant will adhere
to applicable federal, state and local laws governing the protection of public
health and the environment, including occupational health and safety, food
safety, fire safety, environmental impacts, natural resource protections, air
quality, solid and hazardous waste management, and wastewater discharge;
(15) certification
the applicant has never been denied a license or had a license suspended or
revoked by the division or any other state cannabis licensing authority or a
detailed description of any administrative orders, civil judgements, denial or
suspension of a cannabis license, revocation of a cannabis license, or
sanctions for unlicensed cannabis activity by any state licensing authority,
against the applicant, controlling person, or a business entity in which the
applicant or controlling person was a controlling person within the three years
immediately preceding the date of the application;
(16) certification the
applicant is not licensed under the Liquor Control Act.
(17) 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;
(18) an attestation that the manufacturer will not use dimethylsulfoxide (DMSO) in the production of cannabis
products, and will not possess
DMSO on the premises
of the manufacturer:
(19) certification
the applicant has obtained a current local jurisdiction business license, or
will prior to operation of the cannabis establishment, and the applicant shall
adhere to local zoning ordinance;
(20) certification
the applicant will maintain at all times a legible and accurate diagram
containing information required by 16.8.2.32 NMAC and description of the location of the land or facility to be used for the
cannabis establishment and the method(s) to be used to manufacture
cannabis (extraction, infusion, packaging, labeling), including a description
of extraction and infusion methods;
(21) an
attestation of the following statement: Under penalty of perjury, I hereby
declare that the information contained within and submitted with the
application is complete, true and accurate. I understand that a
misrepresentation of fact or violation of these rules may result in denial of
the license application or revocation of a license issued; and
(22) payment of any
required fees as set forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(4) consulting with state
or local governments.
C. Trade
secrets: Any applicant submitting operating procedures and protocols to the
division pursuant to the Lynn and Erin Compassionate Use Act, the Cannabis
Regulation Act, or division rules, may claim such information as a trade secret
or confidential by clearly identifying such information as “confidential” on
the document at the time of submission. Any claim of confidentiality by an
applicant must be based on the applicant’s good faith belief that the
information marked as confidential constitutes a trade secret as defined in the
Uniform Trade Secrets Act, Sections 57-3A-1 to 7, NMSA 1978. In the event the division receives a request to
inspect such documents, the division will notify the applicant or licensee, via
the current email of record. If the division does not receive an injunction
pursuant to the Uniform Trade Secrets Act within 10 days of the request to
inspect, the division will make the documents marked confidential available for
inspection as required pursuant to the Inspection of Public Records Act.
[16.8.2.30
NMAC – N/E, 09/08/2021; A/E, 12/02/2021; N, 12/28/2021; A/E, 01/13/2022; A, 3/22/2022]
16.8.2.31 SUBMITTAL OF APPLICATION FOR
AMENDED CANNABIS MANUFACTURER LICENSE:
A. Application: A licensed manufacturer shall submit to the division
an application form for an amended license, if applicable, and obtain approval
from the division, prior to implementing any of the following:
(1) material
or substantial change of the size of the premises;
(2) change
of licensee’s legal or business name;
(3) change
or modification in extraction type(s) or equipment;
(4) material
or substantial change in water source;
(5) addition
or elimination of a controlling person;
(6) material
or substantial change to a license’s security system; or
(7) material
or substantial modification of the premises.
B. Amended license not
required: Changes to standard
operating policies and procedures may be made without providing notification to
the division, provided that licensees shall maintain at each licensed premises
a copy of all current and prior operating policies and procedures.
C. Requirements and processing of
application for amended license: The
application for amended license must comply with all requirements applicable to
initial applications, except that the application shall be clearly designated
as one for an amended license. The division shall approve or deny an
application for amended license within 90 days of receiving a completed
application. Denial of an application for amendment shall be pursuant to the
Uniform Licensing Act.
D. Material or substantial change: Material or substantial changes requiring approval
include:
(1) increase or decrease in the size of the premises;
(2) a modification in the licensee’s access to the water
source submitted with an application for initial or renewal licensure or a 10 percent,
or more, increase in the licensee’s water usage;
(3) change to a license’s security system, including
relocation or security points or installation of a new security system; or
(4) modification of the premises to relocate cannabis
activities.
16.8.2.33 CANNABIS MANUFACTURER
POLICIES AND PROCEDURES:
A. Minimum
policy and procedure requirements: A manufacturer shall develop, implement,
and maintain on the licensed premises, standard policies and procedures, which
shall include the following:
(1) cannabis testing criteria and
procedures, which shall be consistent with the testing requirements of the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division
rules, and shall include at a minimum, the following topics:
(a) representative
sampling and analytical testing of cannabis or cannabis products for contaminants
prior to wholesale or transfer to another cannabis establishment;
(b) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
product samples to a cannabis testing laboratory;
(c) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(d) protocols
to ensure that cannabis or cannabis products, including any samples of cannabis
or cannabis products, are transported and stored in a manner that prevents
degradation, contamination, tampering, or diversion;
(e) protocols
for testing sample collection that ensures accurate test results; and
(f) procedures
for destruction of a tested batch of cannabis or cannabis products if the
testing samples from the tested batch indicate noncompliance with applicable
health and safety standards;
(2) employee
policies and procedures to address the following minimum requirements:
(a) adherence
to state and federal laws;
(b) responding
to an emergency, including robbery or a serious accident or incident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
health and safety;
(f) crime
prevention techniques; and
(g) if
applicable, confidentiality laws, including the Health Insurance Portability
and Accountability Act of 1996; and
(3) documentation
prepared for each employee and statements signed by employees indicating
receipt and understanding of policies and procedures.
B. Training
program:
(1) Licensee shall implement a training
program, approved by the division, to ensure that all personnel present at the
premises are provided information and training that, at minimum, covers the
following topics within 30 days of the start of employment:
(a) employee health and safety training
materials;
(b) health and safety hazards;
(c) hazard communication training for all
solvents or chemicals used at the licensed premises and as described in the
safety data sheet for each solvent or chemical;
(d) training requirements for the
proper use of health and safety measures and controls;
(e) emergency procedures;
(f) security procedures; and
(g) record keeping requirements.
(2) Prior to independently engaging in
any cannabis manufacturing process, including but not limited to extraction:
(a) an overview of the process and
standard operating procedure(s);
(b) quality control procedures;
(c) hazard analysis and control
procedures as appropriate;
(d) proper and safe usage of equipment or
machinery;
(e) safe work practices applicable to an
employee’s job tasks, including appropriate use of any necessary safety or
sanitary equipment;
(f) cleaning and maintenance
requirements;
(g) emergency operations, including
shutdown; and
(h) any additional information reasonably
related to an employee’s job duties.
(3) A licensee, or employee, involved in
the handling, transportation, manufacture, extraction, testing, or packaging of
cannabis products must successfully complete a food handler course accredited
by the American national standards institute (ANSI) prior to conducting any
related activities. Such training shall be maintained while employed under a
manufacturing licensee. The licensee shall obtain documentation evidencing the
fulfillment of this requirement.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section.
The
licensee shall maintain a record, which contains at minimum:
(a) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(b) documentation
of training topics and dates of training completion for all personnel;
(c) dates
of refresher training completion for all personnel;
(d) the
signature of verifying receipt and understanding of each training or refresher
training completed.
(2) Licensee
may designate supervisory personnel with responsibility to oversee the
requirements of this section.
D. Retention of training documentation:
Licensees shall maintain documentation of an employee’s training for a period
of two years for current employees and at least six months after the
termination of an employee’s employment.
[16.8.2.33 NMAC – N/E, 09/08/2021; N,
12/28/2021]
16.8.2.34 MINIMUM STANDARDS FOR THE MANUFACTURE OF CANNABIS
PRODUCTS:
A. General requirements: Licensees
shall ensure the
following:
(1) manufacturing shall be
done in premises
that are in compliance with state and local laws
that do not conflict with the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act;
(2) the licensee’s right to
use the quantity of water sufficient to meet the manufacturing facility’s needs
remains in good standing;
(3) weighting or measuring devices that are used in the wholesale of cannabis
be appropriately documented as having
undergone certified registration and calibration that is in accordance with applicable requirements of the New Mexico department of agriculture;
and
(4) licensee
shall notify the division of any changes
to the days or hours of business operation;
B. Permissible Extractions:
(1) Except
as provided in Paragraph (2), cannabis extraction shall only be conducted using
the following methods:
(a) Mechanical
extraction, such as dry screens, sieves, or presses, potable water and ice made
from potable water, cryogenic or subzero manufacturing not involving a solvent,
or pressure and temperature;
(b) Chemical
extraction using a nonvolatile solvent such as a nonhydrocarbon-based or other
solvent such as water, vegetable glycerin, vegetable oils, animal fats, or
food-grade glycerin, (nonhydrocarbon-based solvents shall be food grade);
(c) Chemical
extraction using a division approved closed loop extraction system; or
(d) A
method authorized by the division pursuant to Paragraph (2) below.
(2) To
request authorization from the division to conduct cannabis extraction using a
method other than those specified in Subparagraphs (a) – (c) above, the applicant
or licensee shall submit a detailed description of the extraction method,
including any documentation that validates the method and any safety procedures
to be utilized to mitigate any risk to public or worker health and safety.
(3) Extraction
equipment shall be used and operated in accordance with its intended
manufacturer use and design.
(4) Current
safety data sheets shall be kept on the premises for all chemicals used in the
extraction process.
C. Volatile Solvent
Extractions: Chemical extractions using volatile solvents shall be subject
to the following minimum requirements:
(1) hydrocarbon-based
solvents shall be at least 99.5 percent purity with a certificate of analysis
from the manufacturer to confirm purity;
(2) ethyl
alcohol must be food grade, and non-denatured in composition;
(3) solvents
shall be free of odorants, bitterants, or other additives and stored, handled,
and disposed of in accordance with local, state, and federal regulations,
(4) all
extractions shall be performed in a closed loop extraction system, unless
approved by the division, as described in Subsection B of 16.8.2.34 NMAC; and
(5) licensees
shall not use ignition sources including but not limited to a heat gun or any
open flame source next to extraction equipment that utilizes volatile solvents,
including in rooms designated solely for extraction or in areas that contain or
uses flammable liquids and gasses.
D. Closed-Loop
Extraction System Requirements:
(1) Closed
loop systems, other equipment used, the extraction operation, and facilities
must be approved for use by the local fire code official and meet any required
fire, safety, and building code requirements specified in:
(a) National
Fire Protection Association (NFPA) standards;
(b) International
Building Code (IBC);
(c) International
Fire Code (IFC); or
(d) Other
applicable standards including all applicable fire, safety, and building codes
related to the processing, handling and storage of the applicable solvent or
gas.
(2) All
pressure vessels must comply with the Construction Industries Licensing Act,
Section 60-13-1 et seq., NMSA 1978,
including associated rules, applicable codes, and standards.
(3) A
list of the name(s) of all trained employees must be prominently displayed
inside or immediately outside of the extraction area.
(4) A
licensee that is currently approved to use CO2 or a volatile solvent for
extraction has 6 months from the effective date of this rule to comply with the
applicable requirements. Nothing in this subsection is intended to relieve a
licensee of its obligation to comply with any applicable federal, state, or
local laws and regulations.
[16.8.2.34
NMAC – N/E, 09/08/2021; N, 12/28/2021]
[16.8.2.35
NMAC - N, 12/28/2021; A, 03/22/2022]
16.8.2.36 APPLICATION
REQUIREMENTS FOR CANNABIS RETAILER LICENSE:
A. An
initial application or renewal for cannabis retailer licensure shall include
the following:
(1) Contact information for the applicant and the cannabis
establishment, to include:
(a) applicant’s full legal name;
(b) applicant’s date of birth, if applicable;
(c) applicant’s mailing address;
(d) applicant’s contact
telephone number;
(e) applicant’s contact email address;
(f) applicant’s business physical
address and mailing address, if different;
(g) applicant’s business legal name, including a DBA name if
applicable;
(h) applicant’s business web address, if applicable;
(i) applicant’s business hours of
operation;
(j) name and contact information for
each controlling person;
(k) demographic data
pursuant to the Cannabis Regulation Act; and
(l) license type sought;
(2) proof the applicant or each controlling person is at
least 21 years of age, which shall include identification issued by a federal
or state government that includes the name, date of birth, and picture of the
applicant or controlling person;
(3) 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;
(4) 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;
(5) 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;
(6) certification
the applicant will adhere to retail requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(7) 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;
(8) certification the
applicant will adhere to security requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(9) 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;
(10) 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;
(11) certification
the applicant has never been denied a license or had a license suspended or
revoked by the division or any other state cannabis licensing authority or a
detailed description of any administrative orders, civil judgements, denial or
suspension of a cannabis license, revocation of a cannabis license, or
sanctions for unlicensed cannabis activity by any state licensing authority,
against the applicant, controlling person, or a business entity in which the
applicant or controlling person was a controlling person within the three years
immediately preceding the date of the application;
(12) certification the
applicant is not licensed under the Liquor Control Act;
(13) certification the
applicant has obtained a current local jurisdiction business license, or will
prior to operation of the cannabis establishment, and the applicant shall
adhere to local zoning ordinance;
(14) certification
the applicant will maintain at all times a legible and accurate diagram and description of the location of the land or
facility to be used for the cannabis establishment, including a
description of each retail area and all security requirements;
(15) if applicable,
certification the applicant will adhere to courier requirements pursuant to the Cannabis Regulation Act, the Lynn
and Erin Compassionate Use Act, or division rules;
(16) applicant’s
social and economic equity plan to encourage economic and social diversity in
employment, including race, ethnicity, gender, age, and residential status of
licensee, controlling persons and employees of applicant and whether the
applicant, controlling persons, employees or the locations where the cannabis
products are produced are located in an underserved rural community, including
tribal, acequia, land grant-merced, federally designated opportunity zone, or
other rural historic communities;
(17) an
attestation of the following statement: Under penalty of perjury, I hereby
declare that the information contained within and submitted with the
application is complete, true and accurate. I understand that a
misrepresentation of fact or violation of these rules may result in denial of
the license application or revocation of a license issued; and
(18) payment
of any required fees as set forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(4) consulting with state
or local governments.
16.8.2.37 SUBMITTAL OF APPLICATION FOR
AMENDED CANNABIS RETAILER LICENSE:
A. Application: A licensed
retailer shall submit to the division an application form for an amended
license, if applicable, pay the required fee, and obtain approval from the
division, prior to implementing any of the following:
(1) material
or substantial change of the size;
(2) change
of licensee’s legal or business name;
(3) addition
or elimination of a controlling person;
(4) material
or substantial change to a license’s security system; or
(5) material
or substantial modification of the premises.
B. Amended license not
required: Changes to standard operating policies and procedures may be made
without providing notification to the division, provided that licensees shall
maintain at each licensed premises a copy of all current operating policies and
procedures.
C. Requirements and
processing of application for amended license: The application for amended
license must comply with all requirements applicable to initial applications,
except that the application shall be clearly designated as one for an amended
license. The division shall approve or deny an application for amended license
within 90 days of receiving a completed application. Denial of an application
for amendment shall be pursuant to the Uniform Licensing Act.
D. Material or
substantial change: Material or substantial changes requiring approval
include:
(1) increase
or decrease in the size of the premises;
(2) change
to a license’s security system, including relocation or security points or
installation of a new security system; or
(3) modification
of the premises to relocate cannabis activities.
16.8.2.39 CANNABIS RETAILER POLICIES AND
PROCEDURES:
A. Minimum policy and
procedure requirements: A licensed retailer shall develop, implement, and
maintain on the licensed premises, standard policies and procedures, which
shall include the following:
(1) cannabis
handling criteria and procedures, which shall be consistent with the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules, and
shall include at a minimum, the following topics:
(a) employee
health and safety training materials;
(b) training
requirements for the proper use of health and safety measures and controls;
(c) if
applicable, recordkeeping and chain of custody protocols for transportation of
cannabis or cannabis product samples to a cannabis testing laboratory;
(d) recordkeeping
and chain of custody protocols for transportation of cannabis or cannabis
products to another cannabis establishment for any purpose;
(e) protocols
to ensure that cannabis or cannabis products, including any samples of cannabis
or cannabis products, are transported and stored in a manner that prevents
degradation, contamination, tampering, or diversion;
(g) if
applicable, protocols for testing sample collection that ensures accurate test
results; and
(h) if
applicable, procedures for remedial measures to bring cannabis or cannabis
products into compliance with division standards or destruction of a tested
batch of cannabis or cannabis products if the testing samples from the tested
batch indicate noncompliance with applicable health and safety standards;
(2) employee
policies and procedures to address the following minimum requirements:
(a) adherence
to state and federal laws;
(b) responding
to an emergency, including robbery or a serious accident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
safety;
(f) crime
prevention techniques; and
(g) confidentiality
laws, including the Health Insurance Portability and Accountability Act of
1996; and
(3) documentation
prepared for each employee and statements signed by employees indicating
receipt and understanding of policies and procedures.
B. Training program:
(1) Licensee shall implement a training
program, approved by the division, to ensure that all personnel present at the
premises are provided information and training that, at minimum, covers the
following topics within 30 days of the start of employment:
(a) health and safety hazards;
(b) security procedures; and
(c) record keeping requirements.
(2) Prior to engaging in any cannabis
retail process:
(a) an overview of the process and
standard operating procedure(s);
(b) safe work practices applicable to an
employee’s job tasks, including appropriate use of any necessary safety or
sanitary equipment;
(c) cleaning and maintenance
requirements;
(d) emergency operations, including
shutdown; and
(e) any additional information reasonably
related to an employee’s job duties.
(3) A licensee that retails edible
cannabis products shall ensure that all personnel who handle edible products
successfully complete a food handler course accredited by the American national
standards institute (ANSI). The licensee shall obtain documentation evidencing
the fulfillment of this requirement.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section. The licensee shall maintain a
record which contains at minimum:
(a) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(b) documentation
of training topics and dates of training completion for all personnel;
(c) dates
of refresher training completion for all personnel; and
(d) the
signature of each employee verifying receipt and understanding of each training
or refresher training completed.
(2) Licensee
may assign responsibility for ensuring compliance by individual personnel with
the requirements of this section to supervisory personnel.
D. Retention of training documentation:
Licensees shall maintain documentation of an employee’s training for a period
of two years for current employees and at least six months after the termination
of an employee’s employment.
[16.8.2.39
NMAC - N 12/28/2021]
16.8.2.40 MINIMUM STANDARDS FOR RETAIL OF CANNABIS
PRODUCTS:
A. Access to retailer
premises prior to authorization of retail sale of commercial cannabis: Prior to the
division authorizing the retail sale of commercial cannabis, pursuant to
Subsection K of Section 26-2C-6 and Paragraph (5) of Subsection (B) of Section
26-2C-7 of the Cannabis Regulation Act, NMSA 1978, access to the licensed
premises of a retailer shall be limited to individuals who are at least 18
years of age and possess a valid qualified patient, primary caregiver, or
reciprocal participant registry identification card from the department of
health medical cannabis program.
B. Access to retailer premises upon authorization of
retail sale of commercial cannabis: Upon the division authorizing the retail
sale of commercial cannabis, pursuant to Subsection K of Section 26-2C-6 and
Paragraph (5) of Subsection B of Section 26-2C-7 of the Cannabis Regulation Act
NMSA 1978, access to the licensed premises of a retailer shall be limited to
the following:
(1) individuals
who are at least 21 years of age and possess a valid form of identification;
and
(2) individuals
who are at least 18 years of age and possess a valid qualified patient, primary
caregiver, or reciprocal participant registry identification card from the
department of health medical cannabis program.
C. Customer access to the retail area:
(1) Individuals shall
be granted access to purchase cannabis goods only after the licensed retailer
or an employee of the licensed retailer has confirmed the individual’s age and
identity, and if applicable, the individual’s status as a qualified patient,
primary caregiver, or reciprocal participant.
(2) The licensed
retailer or at least one employee shall be physically present in the retail
area at all times when individuals who are not employees of the licensed
retailer are in the retail area.
(3) All
sales of cannabis goods, with the exception of cannabis goods sold through
delivery, must take place within the retail area of the retailer’s licensed
premises.
(4) A
licensed retailer shall sell and deliver cannabis goods only between the hours
reported to the division as regular business hours.
D. Requirements While Not Open for
Business:
(1) At
any time the licensed premises is not open for retail sales, a licensed
retailer shall ensure that:
(a) the
licensed premises is securely locked with commercial-grade, nonresidential door
locks;
(b) the licensed
premises is equipped with an active alarm system pursuant to Section 10 of this
rule, which shall be activated when the licensed retailer or its employees are
not on the licensed premises; and
(c) only
employees of the licensee and other authorized individuals are allowed access
to the licensed premises. For the purposes of this section, authorized
individuals include individuals employed by the licensee as well as any outside
vendors, contractors, or other individuals conducting business that requires access
to the licensed premises.
E. Commercial and medical retail
customers:
(1) Commercial sales: A licensed retailer
shall only sell cannabis and cannabis products to individuals who are at least
21 years of age after confirming the customer’s age and identity by inspecting
a valid form of identification provided by the customer as required by
subsection B of this section.
(2) Medical sales: A licensed retailer
shall only sell cannabis and cannabis products to individuals who are at least
18 years of age and possess a valid qualified patient, primary caregiver, or
reciprocal participant registry identification card from the department of
health medical cannabis program, after confirming the customer’s age, identity,
and valid registry identification.
(3) Acceptable
forms of identification include the following
(a) a
document issued by a federal, state, county, or municipal government, or a
political subdivision or agency thereof, including, but not limited to, a valid
motor vehicle operator's license, that contains the name, date of birth, and
photo of the person;
(b) a
valid identification card issued to a member of the Armed Forces that includes
the person’s name, date of birth, and photo of the person; or
(c) a
valid passport issued by the United States or by a foreign government.
F. Cannabis product display:
(1) Cannabis
and cannabis products for customer inspection and sale shall only be displayed
in the retail area.
(2) Cannabis
and cannabis products may be removed from their packaging and placed in
containers to allow for customer inspection. The containers shall not be
readily accessible to customers without assistance of retailer personnel. A
container must be provided to the customer by the licensed retailer or its
employees, who shall remain with the customer at all times that the container
is being inspected by the customer.
(3) Cannabis
and cannabis products removed from their packaging for display shall not be
sold, shall not be consumed, and shall be destroyed, pursuant to Section 15 of
this rule, when the cannabis or cannabis products are no longer used for
display.
G. Cannabis and cannabis products for
sale:
(1) A
licensed retailer shall not make any cannabis or cannabis products available
for sale or delivery to a customer unless:
(a) the
cannabis or cannabis products were received by the retail licensee from a
licensed producer, licensed producer microbusiness, licensed manufacturer,
licensed vertically integrated cannabis establishment, or licensed integrated
cannabis microbusiness;
(b) the
licensed retailer has verified that the cannabis or cannabis products have not
exceeded their expiration or sell-by date if one is provided;
(c) in
the case of manufactured cannabis products, the cannabis product complies with
all requirements of the Cannabis Regulation Act, the Lynn and Erin
Compassionate Use Act and division rules;
(d) the
cannabis or cannabis products have undergone laboratory testing as required by
the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act and
division rules;
(e) the
packaging and labeling of the cannabis or cannabis product complies with
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act and division
rules; and
(f) the
cannabis or cannabis product complies with all applicable requirements found in
the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act and
division rules.
H. Commercial and medical cannabis
purchase limits and excise tax:
(1) A
licensed retailer shall not sell more than the following amounts at one time to
a single commercial cannabis customer:
(a) two
ounces of cannabis;
(b) 16
grams of cannabis extract;
(c) 800
milligrams of edible cannabis; and
(d) six
immature cannabis plants.
(2) A
licensed retailer shall adhere to department of health medical cannabis rules
related to the sale of cannabis and cannabis products to qualified individuals
who are at least 18 years of age and possess a valid qualified patient, primary
caregiver, or reciprocal participant registry identification card from the
department of health medical cannabis program.
(3) Pursuant
to the Cannabis Tax Act, Section 7-42-2 NMSA 1978, cannabis excise tax shall
not apply to retail sale of medical cannabis or cannabis products. Cannabis
excise tax shall apply to commercial sales of cannabis and cannabis products.
(4) The
limits provided in Paragraph (1) and Paragraph (2) of this subsection shall not
be combined to allow a customer to purchase cannabis or cannabis products in
excess of the limits provided in this section.
(5) The
prohibition set forth in paragraph one above shall not prohibit the sale of
different product types to a single customer, as long as the total amount sold
does not exceed the limits set forth above.
I. Customer Return of Cannabis Goods:
(1) For
the purposes of this subsection, “customer return” means a customer’s return of
cannabis or cannabis products that were purchased from a licensed retailer,
back to the licensed retailer the cannabis or cannabis products were purchased
from.
(2) A
licensed retailer may accept customer returns of cannabis or cannabis products
that were previously sold to a customer.
(3) A
licensed retailer shall not resell cannabis or cannabis products that have been
returned.
(4) A
licensed retailer shall treat any cannabis or cannabis products abandoned on
the licensed retailer premises as a customer return.
(5) A
licensed retailer shall destroy all cannabis or cannabis products that have
been returned to the licensed retailer by a customer, pursuant to Section 15 of
this rule.
J. Free cannabis or cannabis
products:
(1) A
licensed retailer shall not provide free cannabis or cannabis product(s) to any
person. A licensed retailer shall not allow individuals who are employed or not
employed by the licensed retailer to provide free cannabis or cannabis
product(s) to any person on the licensed premises.
(2) Notwithstanding
Paragraph (1) of this section, in order to provide access to medicinal cannabis
patients who have difficulty accessing medicinal cannabis or cannabis
product(s), a licensee may provide free cannabis or cannabis product(s) if all
of the following criteria are met:
(a) free
cannabis or cannabis products are provided only to a qualified patient, primary
caregiver, or a reciprocal participant in possession of a valid registry
identification card from the department of health medical cannabis program;
(b) the
cannabis or cannabis products comply with all applicable requirements of the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act and division
rules;
(c) the
cannabis or cannabis products have been properly recorded in the track and
trace system as belonging to the licensed retailer;
(d) the
cannabis or cannabis products shall be applied toward the adequate supply for a
medicinal cannabis customer pursuant to department of health rules;
(e) the
transaction shall be properly recorded in the licensed retailer’s inventory
records and the track and trace system.
K. Inventory reconciliation:
(1) A
licensed retailer shall perform a reconciliation of its inventory at least once
every calendar month.
(2) In
conducting an inventory reconciliation, a licensed retailer shall verify that
the licensed retailer’s physical inventory is consistent with the licensed
retailer’s records pertaining to inventory.
(3) The
result of inventory reconciliation shall be retained in the licensed retailer’s
records and shall be made available to the division upon request.
(4) If
a licensed retailer identifies any evidence of theft, diversion, or loss, the
licensed retailer shall notify the division pursuant to Subsection N of
16.8.2.8 NMAC.
L. Record of Sales:
(1) A
licensed retailer shall maintain an accurate record of every sale of cannabis
and cannabis product made to a customer.
(2) A
record of cannabis or cannabis product sold to a customer shall contain the
following minimum information:
(a) the
first name and employee number of the employee who processed the sale;
(b) the
date and time of the transaction;
(c) a
list of all the cannabis or cannabis product purchased, including the quantity
purchased; and
(d) the
total amount paid for the sale including the individual prices paid for each
cannabis or cannabis product purchased and any amounts paid for cannabis excise
tax.
(3) For
the purposes of this section, an employee number is a distinct number assigned
by a licensed retailer to their employees that would allow the licensed
retailer to identify the employee on documents or records using the employee
number rather than the employee’s full name. A licensed retailer shall be able
to identify the employee associated with each employee number upon request from
the division.
(4) All
licensed retailer-specific records shall be maintained for at least 12 months.
M. Retailer premises to retailer
premises transfer:
(1) A
licensee who has multiple licensed retail premises may arrange for the transfer
or sale of cannabis or cannabis products from one licensed retail premises to
another licensed retail premises if both licensed retail premises are held
under the same ownership.
(2) A
licensee may arrange for the transfer or sale of cannabis or cannabis products
to another cannabis retailer if both licensees properly record the transaction
in the licensed retailer’s inventory records and the track and trace system
(3) Cannabis
or cannabis product transferred to a licensed retail premises under this
subsection may be sold by the licensed retailer receiving the cannabis or
cannabis product only if the cannabis or cannabis products comply with all
requirements pursuant to the Cannabis Regulation Act, the Lynn and Erin
Compassionate Use Act, and division rules.
N. Use of licensed cannabis couriers:
(1) A retail cannabis
licensee may, consistent with this rule, and with the consent of a qualifying
patient, primary caregiver, reciprocal participant, or an individual who is at
least 21 years of age, utilize a license cannabis courier to deliver cannabis
or cannabis products to a qualifying patient, primary caregiver, reciprocal
participant, or an individual who is at least 21 years of age;
(2) A retail cannabis
licensee shall require a consumer making a purchase for delivery by a cannabis
courier licensee to have the valid government-issued identification card, the
consumer intendents to use to verify their age at the time of delivery, and if
applicable, a medical cannabis program registry identification card, examined
and authenticated by the retail cannabis licensee prior to the order; and
(3) Pre-verification
of the consumer’s identity shall be performed through a division approved
electronic means, which may include a third-party technology platform, and
shall include examination of a consumers valid, unexpired, medical cannabis
identification card, if applicable, and photo identification issued by a
federal or state government that includes the name, date of birth, and picture
of the intended recipient.
[16.8.2.40
NMAC – N, 12/28/2021]
E. Confidentiality:
Licensees shall at all times take measures to ensure confidentiality and safety
in the transport and delivery of cannabis and cannabis product. A licensee may
obtain contact information of a purchasing qualified patient or primary
caregiver, and a reciprocal participant, as permitted by agreement between the
licensee and a respective retail cannabis licensee, and may utilize such information
solely for the purpose of arranging a delivery location and time with the
qualified patient or primary caregiver, or reciprocal participant. Licensees
shall not otherwise disseminate, disclose, or use identifying information or
contact information concerning a qualified patient or primary caregiver, or
reciprocal participant.
F. Maximum retail
value: The maximum retail value allowed in a cannabis courier’s vehicle at
any one time shall be $10,000 and each product shall be associated with a
specific order for delivery. For purposes of this provision, “maximum retail
value” shall mean the aggregate value of cannabis, cannabis products, and products not containing THC that are for sale
within the licensed retail establishment from which the sale and delivery is
initiated as priced on the day of the order for delivery.
G. Track and trace:
All cannabis and cannabis product deliveries shall be tracked using the track
and trace system as designated by the division. Records of sales of cannabis
accessories shall be maintained by the cannabis courier, but may not be tracked
in the track and trace system designated by the division.
H. Record retention:
Delivery records, including certification of delivery, the cannabis and
cannabis product delivered, the date of delivery, and the time of delivery,
shall be maintained by the cannabis courier for a minimum of 12 months.
I. Delivery time and
location:
(1) Limitations
on the time of delivery shall comply with all local laws.
(2) Licensees
shall only deliver packages of cannabis or cannabis products to the address
provided by the retail cannabis licensee.
(3) Licensees
are prohibited from delivery to an individual consumer of more than two ounces
of cannabis, 16 grams or cannabis extract and 800 milligrams of edible
cannabis.
[16.8.2.41 NMAC – N, 12/28/2021;
A, 03/22/2022]
16.8.2.42 APPLICATION
REQUIREMENTS FOR CANNABIS COURIER LICENSE:
A. An
initial application or renewal for cannabis courier licensure shall include
the following:
(1) Contact information for the applicant, to include:
(a) applicant’s full legal name;
(b) applicant’s date of birth, if applicable;
(c) applicant’s mailing address;
(d) applicant’s contact
telephone number;
(e) applicant’s contact email address;
(f) physical address and mailing
address, if different; and
(g) demographic data
pursuant to the Cannabis Regulation Act;
(2) proof the applicant is at least 21 years of age, which
shall include identification issued by a federal or state government that
includes the name, date of birth, and picture of the applicant or controlling
person;
(3) criminal
history screening documents as set forth in 16.8.2.9 NMAC and the Cannabis
Regulation Act;
(4) a detailed description
of any criminal convictions of the applicant, including the date of each
conviction, dates of incarceration, probation or parole, if applicable,
description of the offense, and statement of rehabilitation of each conviction;
(5) certification
the applicant will adhere to courier requirements
pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use
Act, or division rules;
(6) certification the
applicant will adhere to cannabis transport requirements pursuant to the Cannabis
Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(7) certification the
applicant will adhere to security requirements pursuant to the Cannabis Regulation
Act, the Lynn and Erin Compassionate Use Act, or division rules;
(8) certification the
applicant will adhere to quality assurance requirements pursuant to the
Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division
rules;
(9) certification
the applicant has never been denied a license or had a license suspended or
revoked by the division or any other state cannabis licensing authority or a
detailed description of any administrative orders, civil judgements, denial or
suspension of a cannabis license, revocation of a cannabis license, or
sanctions for unlicensed cannabis activity by any state licensing authority,
against the applicant, controlling person, or a business entity in which the
applicant or controlling person was a controlling person within the three years
immediately preceding the date of the application;
(10) certification the
applicant is not licensed under the Liquor Control Act;
(11) an
attestation of the following statement: Under penalty of perjury, I hereby
declare that the information contained within and submitted with the
application is complete, true and accurate. I understand that a
misrepresentation of fact or violation of these rules may result in denial of
the license application or revocation of a license issued; and
(12) payment
of any required fees as set forth in 16.8.11 NMAC.
B. Verification of
information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant by telephone, mail, or electronic mail;
(2) requiring a face-to-face
or virtual meeting
and the production of additional documentation; or
(3) consulting with state
or local governments.
16.8.2.43 CANNABIS
TESTING LABORATORY LICENSE: GENERAL PROVISIONS:
A. Testing
categories: The division may license cannabis testing laboratories to
perform analytical testing of cannabis products in one or more of the following
categories:
(1) visual
inspection;
(2) microbiological;
(3) residual
solvents;
(4) potency
and homogeneity;
(5) heavy
metals;
(6) pesticides;
and
(7) such
other testing categories as the department may identify.
B. License not required for internal testing: A
cannabis establishment may conduct analytical testing using validated methods
for internal quality control purposes without obtaining a cannabis testing
laboratory license but may not offer testing services to another person or
entity.
C. Division application forms: All
applications for licensure authorized pursuant to the Cannabis Regulation Act
shall be made upon current forms prescribed by the division found on the
division website.
D. Other activities prohibited: No
person with a direct or indirect interest in any cannabis establishment other
than a cannabis research laboratory may hold an interest in a cannabis testing
laboratory.
[16.8.2.43 NMAC – Rp, 16.8.2.43 NMAC, 01/11/2022; A, 03/22/2022]
16.8.2.44 APPLICATION
REQUIREMENTS FOR CANNABIS TESTING LABORATORY LICENSE:
A. Contents
of application:
(1) for any
initial or renewal application, contact information for the applicant and the
cannabis establishment, to include:
(a) applicant’s
full legal name;
(b) applicant’s
mailing address;
(c) applicant’s
contact telephone number;
(d) applicant’s
contact email address;
(e) applicant’s
business physical address and mailing address, if different;
(f) applicant’s
business legal name, including a DBA name, if applicable;
(g) applicant’s
business web address, if applicable;
(2) for any
initial application, information about controlling persons, to include:
(a) name and
contact information;
(b) documentation
of legal name change, if applicable;
(c) criminal
history screening documents. as set forth in 16.8.2.9 NMAC and the Cannabis
Regulation Act;
(d) a detailed
description of any criminal convictions, including for each: the date of the conviction;
dates of incarceration, probation, or parole; description of the offense; and
any evidence of rehabilitation, including court documents, personal or
professional references, completion of treatment, employment records, and other
relevant information;
(e) demographic
data pursuant to the Cannabis Regulation Act; and
(f) A
copy of identification issued by a federal or state government, including name,
date of birth, and picture and indicating the person is at least 21 years of
age;
(3) for
any renewal application, certifications that the applicant:
(a) attests
to 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;
(b) will
adhere to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act,
and division rules, including:
(i) testing
requirements;
(ii) transport
requirements;
(iii) security
requirements;
(iv) quality
assurance requirements; and
(v) the
prohibition on any person holding an interest in one or more cannabis testing
laboratories from holding an interest in any other cannabis license other than
a cannabis research laboratory;
(c) will
adhere to applicable federal, state and local laws governing the protection of
public health and the environment, including occupational health and safety,
food safety, fire safety, environmental impacts, natural resource protections,
air quality, solid and hazardous waste management, and wastewater discharge;
(d) has
never been denied a license or had a license suspended or revoked by the division
or any other state cannabis licensing authority or a detailed description of
any administrative orders, civil judgements, denial or suspension of a cannabis
license, revocation of a cannabis license, or sanctions for unlicensed cannabis
activity by any state licensing authority, against the applicant, controlling
person, or a business entity in which the applicant or controlling person was a
controlling person within the three years immediately preceding the date of the
application; and
(e) is
not licensed at the same location under the Liquor Control Act;
(f) has
obtained a current local jurisdiction business license, or will prior to operation
of the cannabis establishment, and the applicant shall adhere to local zoning
ordinance; and
(g) maintain
on its licensed premise at all times, a complete and detailed diagram of the
premises containing information required by 16.8.2.46 NMAC, which shall be made
immediately available to the division upon request.
(4) for
any initial application, and, unless a statement is included that no material
changes exist, for any renewal application:
(a) a
list of categories of testing for which licensure is sought; and
(b) 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 premises are located in an
underserved rural community, including tribal, acequia, land grant-merced,
federally designated opportunity zone, or other rural historic communities; and
(5) for
any initial or renewal application, payment of any required fees as set forth
in 16.8.11 NMAC.
B. Initial
demonstration of capability: The division requires the submission of an
initial demonstration of capability (IDC) for every test a cannabis testing
laboratory intends to conduct, except tests for research and development
purposes only. The IDC must identify a limit of quantitation that is equal to
or lower than the action level for the specified test.
(1) An
IDC is required whenever:
(a) an
initial application is submitted, except that an applicant may instead submit
evidence of prior completion of an IDC as a requirement of licensing under the
Lynn and Erin Compassionate Use Act;
(b) the
cannabis testing laboratory proposes to use a new analytical instrument to test
for an analyte; or
(c) the
cannabis testing laboratory proposes material changes to testing methods.
(2) Every
IDC shall include the following elements:
(a) Demonstration
of method calibration: The calibration range shall use at least five
calibration points consisting of five different concentration levels of target
compounds. The calibration range shall include a low calibration point equal
to, or less than, the action level for each targeted compound. The cannabis
testing laboratory shall provide the equation and the type of curve fit used
for the calibration range, and the percent relative standard deviation or the
goodness of fit. The percent relative standard deviation shall be less than
twenty percent, or the goodness of fit (correlation coefficient) shall be 0.995
or better.
(b) Demonstration
of method accuracy and precision: A cannabis testing laboratory shall supply
the quantitation data for five positive control samples analyzed by its testing
method utilizing median or mid-level calibration concentration. The cannabis
testing laboratory shall identify and justify acceptance criteria and shall
calculate and provide the calculated mean (average) result and the standard
deviation. Any standard deviations greater than twenty percent shall be noted
and explained.
(c) Demonstration
of method detection limit: A cannabis testing laboratory shall calculate its
method detection limit using a generally accepted method.
(d) Demonstration
of low system background: A cannabis testing laboratory shall supply the
analytical data of at least three negative control samples that do not contain
any target analytes.
(e) Demonstration
of analyte identification: A cannabis testing laboratory that uses, high
performance liquid chromatography (HPLC) or gas chromatography with flame
ionization detector or photoionization detector (GC-FID or GC-PID/FID)
instrumentation shall supply analytical data where each targeted compound is
analyzed as a single compound giving it its characteristic retention time. A
cannabis testing laboratory that uses gas chromatography–mass spectrometry
(GCMS), liquid chromatography–mass spectrometry (LCMS), or liquid
chromatography–tandem mass spectrometry (LCMSMS) instrumentation shall supply
analytical data with the characteristic mass spectrum of each targeted
compound.
C. Continuing demonstration of capability:
A cannabis testing laboratory shall submit a continuing demonstration of
capability (CDC) for each test performed annually as part of the laboratory’s
application for renewal of licensure. A CDC may consist of:
(1) Evidence
that the cannabis testing laboratory has the test within its current scope of
accreditation to the current standards of ISO/IEC 17025, Testing and
Calibration Laboratories;
(2) Evidence
that each analyst performing the test has successfully completed, within the
previous year, relevant proficiency testing administered by a provider
accredited to the standards of ISO/IEC 17043, Conformity Assessment—General
Requirements for Proficiency Testing; or
(3) The
re-performance of the IDC.
D. Verification of information: The
division may verify information contained in each application and accompanying
documentation by:
(1) contacting
the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting
an on-site visit;
(3) requiring
a face-to-face or virtual meeting and the production of additional
documentation; or
(4) consulting
with state or local governments.
E. Trade secrets: Any applicant
submitting operating procedures and protocols to the division pursuant to the
Lynn and Erin Compassionate Use Act, the Cannabis Regulation Act, or division
rules, may claim such information as a trade secret by clearly identifying such
information as “confidential trade secrets” on the document at the time of
submission. Any claim of confidentiality by an applicant must be based on the
applicant’s good faith belief that the information marked as confidential
constitutes a trade secret as defined in the Uniform Trade Secrets Act,
Sections 57-3A-1 to -7, NMSA 1978. In the event the division receives a request
to inspect such documents, the division will notify the applicant or licensee,
via the current email of record. If the division does not receive an injunction
pursuant to the Uniform Trade Secrets Act within five days of the request to inspect,
the division will make the documents marked confidential available for
inspection as required pursuant to the Inspection of Public Records Act.
[16.8.2.44 NMAC – N, 01/11/2022; A/E, 01/13/2022; A,
03/22/2022]
16.8.2.45 SUBMITTAL
OF APPLICATION FOR AMENDED CANNABIS TESTING LABORATORY LICENSE:
A. Application: A cannabis testing laboratory shall submit to the division
an application form for an amended license and obtain approval from the
division, prior to implementing any of the following:
(1) material
or substantial change of the size of the premises;
(2) change
of licensee’s legal or business name;
(3) material
or substantial change in testing methods or equipment;
(4) addition
or elimination of a controlling person;
(5) material
or substantial change to a licensee’s security system; or
(6) material
or substantial modification of the premises.
B. Requirements and processing of application
for amended license: The application for amended license shall:
(1) be
clearly designated as one for an amended license;
(2) supply
any information representing a material change from the most recent
application; and
(3) include
an initial demonstration of capability for any new or materially different
method for performing a required test, including testing for an additional
analyte or testing for an analyte using a different type of instrument.
C. Approval or denial: 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) testing
for an analyte required in required testing using a different type of
instrument; or
(3) change
to a licensee’s security system, including relocation of security points or
installation of a new security system.
E. Amended license not required:
Other changes to standard operating policies and procedures, unless material or
substantial, 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.
[16.8.2.45 NMAC – N, 01/11/2022]
16.8.2.46 TESTING
LABORATORY PREMISES DIAGRAM:
A. Detailed diagram required: An applicant shall maintain on its licensed
premise at all times, a complete and detailed diagram of the 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, and division rules.
B. Contents of diagram: The diagram
shall show:
(1) the
boundaries of the property and the proposed premises to be licensed;
(2) if
applicable, the uses of any portion of the property not included in the
premises;
(3) a
brief statement or description of the principal activity to be conducted in
each area on the premises;
(4) the
dimensions of each area where testing of cannabis products will take place;
(5) the
location and identity of equipment; and
(6) entrances
and exits;
C. Format of diagram: The diagram
shall:
(1) be
drawn to scale;
(2) be
rendered in black and white print; and
(3) contain
no highlighting.
[16.8.2.46 NMAC – N, 01/11/2022; A/E, 01/13/2022; A,
03/22/2022]
16.8.2.47 CANNABIS
TESTING LABORATORY POLICIES AND PROCEDURES:
A. Minimum policy and procedure requirements:
A cannabis testing laboratory shall develop, implement, and maintain on the
licensed premises, standard policies and procedures, which shall include the
following:
(1) sample
collection procedures, including:
(a) specifications
for sampling tools and containers;
(b) use
of gloves and other personal protective equipment to prevent contamination of
batches;
(c) access
to complete batches of cannabis products;
(d) determination
of the number of sample increments required, based on batch size; and
(e) random
selection of sample increments;
(2) chain
of custody;
(3) data
recording;
(4) sample
storage and integrity, including sealing of sample containers and, if
applicable, the use of preservatives, inert gas, or other measures;
(5) transportation,
including protection from light, heat, and humidity;
(6) sample
preparation of each matrix for each test;
(7) methodology
for each test, including:
(a) sample
preparation;
(b) reagent,
solution, and reference standard preparation;
(c) instrument
setup, as applicable;
(d) standardization
of volumetric reagent solutions, as applicable;
(e) data
acquisition; and
(f) calculation
of results
(8) data
quality parameters for each test, including:
(a) specificity;
(b) limit
of detection; and
(c) limit
of quantitation;
(9) reporting
of results;
(10) quality
assurance;
(11) employee
policies and procedures, including but not limited to:
(a) adherence
to state and federal laws that do not conflict with the Cannabis Regulation Act
or the Lynn and Erin Compassionate Use Act;
(b) responding
to an emergency, including robbery or a serious accident or incident;
(c) alcohol
and drug-free workplace policies and procedures;
(d) safety
and security procedures;
(e) occupational
health and safety;
(f) crime
prevention techniques; and
(g) if
applicable, confidentiality laws, including the Health Insurance Portability
and Accountability Act of 1996;
(12) equipment
cleaning, maintenance, and inspection standards and schedules;
(13) standards
for labeling, storage, expiration, and re-qualification dates and records
relating to reagents, solutions, and reference standards;
(14) sample
analysis procedures, including but not limited to procedures for the use of
only primary or secondary standards for quantitative analyses;
(15) standards
for data recording, review, storage, and reporting that include, but are not
limited to, standards to ensure:
(a) that
data is recorded in a manner consistent with this rule, and that it is reviewed
to verify that applicable standards of practice, equipment calibration, and
reference standards were applied before reporting;
(b) that
all data, including raw data, documentation, protocols, and reports are retained
in accordance with the requirements of this rule; and
(c) that
reports are the property of the business or individual who provided the sample,
and reports meet the requirements of this rule; and
(16) creation
of chain of custody documentation for each sample.
B. Training program:
(1) Licensee
shall implement a training program, approved by the division, to ensure that
all personnel present at the premises are provided information and training
that, at minimum, covers the following topics within 30 days of the start of
employment:
(a) employee
health and safety;
(b) health
and safety hazards;
(c) hazard
communication;
(d) security
procedures; and
(e) record
keeping/track and trace.
(2) A
cannabis testing laboratory must provide and document training on the following
subjects before permitting any authorized person to independently collect
samples of cannabis products:
(a) an
overview of the process and standard operating procedures of the laboratory;
(b) quality
control procedures, including sterile collection of samples and storage;
(c) chain
of custody, recordkeeping, and tracking requirements;
(d) calibration,
use, and maintenance of measuring devices;
(e) transportation
procedures; and
(f) any
additional information reasonably related to sample collection.
(3) A
cannabis testing laboratory must provide and document training on the following
subjects before an agent or employee independently performs any cannabis
testing process:
(a) an
overview of the process and standard operating procedure(s);
(b) quality
control procedures;
(c) chain
of custody and tracking requirements;
(d) proper
and safe usage of equipment or machinery;
(e) safe
work practices applicable to an employee’s job tasks, including appropriate use
of any necessary safety or sanitary equipment;
(f) cleaning
and maintenance requirements;
(g) emergency
operations, including shutdown; and
(h) any
additional information reasonably related to an employee’s job duties.
C. Training documentation:
(1) Licensee
shall ensure that all personnel receive annual refresher training to cover, at
minimum, the topics listed in this section. The licensee shall maintain a
record which contains at minimum:
(a) a
list of all personnel at the premises, including at minimum, name and job
duties of each;
(b) documentation
of training topics and dates of training completion for all personnel;
(c) dates
of refresher training completion for all personnel; and
(d) the
signature of each employee verifying receipt and understanding of each training
or refresher training completed.
(2) Licensee
may assign responsibility for ensuring compliance by individual personnel with
the requirements of this section to supervisory personnel.
(3) Licensees
shall maintain documentation of an employee’s training for a period of two
years for current employees and at least six months after the termination of an
employee’s employment.
D. Materials
to be maintained on premises: A cannabis testing laboratory shall maintain
on its premises, and shall promptly present to the department upon request:
(1) all results
of laboratory tests conducted on cannabis or cannabis derived products for a
period of at least two years;
(2) operating manuals
and other documentation for each piece of equipment;
(3) records
of required inspection, calibration, and maintenance for each piece of
equipment, including:
(a) the
date of the operation;
(b) the
person who performed it;
(c) the
written procedure used; and
(d) any
deviations from the written procedure;
(4) records
of non-routine repairs performed on equipment as a result of failure and
malfunction, including:
(a) the nature
of the repair;
(b) how
and when the need for the repair was discovered; and
(c) any
remedial action taken in response to the repair;
(5) the
certificate of analysis for all reference standards, whether acquired or
internally produced.
(6) current
material safety data sheets for all chemicals used;
(7) documentation
of proficiency training.
[16.8.2.47 NMAC – N, 01/11/2022]
16.8.2.48 MINIMUM
STANDARDS FOR THE TESTING OF CANNABIS PRODUCTS:
A. General requirements: Cannabis
testing laboratories shall ensure the following:
(1) testing
is done in premises that are in compliance with state and local laws that do
not conflict with the Cannabis Regulation Act or the Lynn and Erin
Compassionate Use Act; and
(2) weighting
or measuring devices that are used in testing are appropriately documented as having
undergone certified registration and calibration that is in accordance with
requirements of the New Mexico department of agriculture applicable to
commercial transactions.
B. Sample collection: For all
required testing or testing for the purposes of labeling claims, a person
authorized by this rule shall collect the required samples according to the
following guidelines:
(1) Only
the quantity of cannabis product specified in the cannabis testing laboratory’s
operating procedures as necessary for all tests to be performed and to ensure
the proper number of representative samples shall be collected.
(2) The
number of sample increments per batch, as specified in the cannabis testing
laboratory’s operating procedures as necessary for all tests to be performed,
shall be collected.
(a) The
number of sample increments shall not be less than the minimum quantity
specified in Table 2.
(b) Samples
shall be taken randomly throughout the length, width, and depth of the batch.
(c) The
standard sample increment size shall be 0.5 grams, unless specified otherwise
in the cannabis testing laboratory’s operating procedures.
(3) Samples
from the same batch shall be secured in a single use, tamper-evident container
that meets the specifications of the laboratory’s policies and procedures.
(4) Samples
shall be labeled according to the laboratory’s policies and procedures, with,
at minimum:
(a) the
license number of the establishment from which the sample was collected;
(b) the
batch number assigned by the establishment;
(c) the
date the sample was taken;
(d) the
name of the person collecting the sample; and
(e) the
tests to be performed;
(5) If
homogeneity testing is required, each sample increment necessary for homogeneity
testing shall be collected and transported in individual sealed containers.
|
Table 1, Minimum
quantity of sample increments |
||
|
Matrix Type
|
Batch Size
|
Minimum Sample Increments |
|
Dried cannabis |
≤5.0 lbs. |
10 |
|
>5.0 lbs.; ≤15.0 lbs. |
10 + 5 per pound or fraction thereof above 5 pounds |
|
|
Other products |
≤2.0 lbs. |
10 |
|
>2.0 lbs. |
5 per pound |
|
C. Transportation: All samples shall be transported according to the general
requirements of 16.8.2.13 NMAC and the specifications found in the cannabis
testing laboratory’s policies and procedures.
D. Receipt of test samples: A
cannabis testing laboratory may receive test samples of cannabis products from
any cannabis establishment, adult 21 years of age or older, qualified patient,
or primary caregiver as authorized by this rule.
E. Storage: A cannabis testing
laboratory shall segregate and store cannabis samples in a manner that prevents
contamination or degradations and shall safeguard any cannabis products and
cannabis waste against diversion.
(1) A
cannabis testing laboratory shall provide one or more secure cabinets or vaults
for the storage of cannabis samples, reference standards, and cannabis waste,
and access shall be limited to persons authorized to conduct tests or dispose
of cannabis waste.
(2) Cannabis
samples shall be stored in environmental conditions that minimize physical or
chemical degradation and microbial contamination, including protection from
light, heat, and humidity. Any cannabis product that requires refrigeration
shall be kept at a temperature no greater than 40 degrees Fahrenheit (4 degrees
Celsius) prior to sample preparation.
F. Sample retention and disposal:
(1) Samples
testing positive for a prohibited pesticide must be retained for a minimum of
30 days. All other samples must be retained for a minimum of 15 days. Upon
notification from the division that samples are needed for an investigation by
the division, a law enforcement agency, or another department, the cannabis
testing laboratory shall retain the sample until further directed by the
division.
(2) Any
portion of a cannabis or cannabis-derived test sample that is not destroyed
during analysis shall be:
(a) returned
to the person who provided the sample;
(b) provided
to the division, the state chemist laboratory (department of agriculture), or
state laboratory division for additional testing;
(c) upon
written notification to the department, used to make for internal quality
control purposes; or
(d) destroyed
in accordance with the wastage requirements of this rule.
G. Laboratory premises: A cannabis
testing laboratory shall maintain the premises of the laboratory in a clean and
orderly condition; shall equip the premises with such utensils and equipment as
necessary to conduct the operations of the laboratory; and shall ensure
adequate space for laboratory operations, sample storage, and document storage.
H. Equipment:
(1) Equipment
used for the analysis of test samples shall be adequately inspected, cleaned,
and maintained by laboratory staff, the manufacturer, or other trained persons according
to manufacturer recommendations. Equipment used for the generation or
measurement of data shall be adequately tested and calibrated on an appropriate
schedule, as applicable.
(2) Laboratory
operations shall document procedures setting forth in sufficient detail the
methods and schedules to be used in the routine inspection, cleaning,
maintenance, testing, and calibration of equipment, and shall specify, as
appropriate, remedial action to be taken in the event of failure or malfunction
of equipment. The procedures shall designate the personnel responsible for the
performance of each operation.
(3) Computer
systems used for the analysis of samples, retention of data, sample tracking,
calibration scheduling, management of reference standards, or other critical
laboratory management functions shall ensure that electronic records,
electronic signatures, and handwritten signatures executed to electronic
records are trustworthy, reliable, and generally equivalent to paper records
and handwritten signatures executed on paper.
I. Reagents, solutions, and reference standards:
(1) A
cannabis testing laboratory is authorized to possess reagents, solutions, and
reference standards. Such items shall be:
(a) secured
in accordance with the approved laboratory’s storage policies;
(b) labeled
to indicate identity, date received or prepared, and expiration or
requalification date; and, where applicable, concentration or purity, storage
requirements, and date opened;
(c) stored
under appropriate conditions to minimize degradation or deterioration of the
material; and
(d) used
only within the item’s expiration or requalification date.
(2) Deteriorated
or outdated reagents and solutions shall be properly destroyed.
(3) A
cannabis testing laboratory may:
(a) acquire
commercial reference standards for cannabinoids and other chemicals or
contaminants, for the exclusive purpose of conducting testing for which the
laboratory is approved;
(b) internally
produce reference standards, using standard analytical techniques to document
the purity and concentration of the internally produced reference standards;
(c) obtain
cannabis products from a cannabis establishment for the purpose of producing
reference standards.
J. Recording of analytical data:
(1) A
cannabis testing laboratory shall ensure that all data generated during the
testing of a test sample, except data generated by automated data collection
systems, is recorded directly, promptly, and legibly in ink.
(2) When
automated data collection systems are used, the cannabis testing laboratory
shall log the name of the individual performing the test.
(3) All
data shall be annotated with the date of entry and signed or initialed by the
person recording the data. Any change in entries shall be made so as not to
obscure the original entry, shall indicate the reason for such change, and
shall be dated and signed or initialed at the time of the change.
(4) Any
change in an entry shall:
(a) be
made so as not to obscure the original entry;
(b) indicate
the reason for such change;
(c) be
dated and signed or initialed at the time of the change; and
(d) be
accompanied by a corrective action report to be made available to the division
or the cannabis establishment that submitted the sample upon request for up to
two years after the analysis is completed.
(5) For
each final result reported, a cannabis testing laboratory shall verify that:
(a) any
calculations or other data processing steps were performed correctly;
(b) the
data meet any data quality requirements such as for accuracy, precision,
linearity, etc.;
(c) any
reference standards used were of the appropriate purity and within their
expiration or requalification dates;
(d) any
volumetric solutions were properly standardized before use; and
(e) any
test or measuring equipment used has been properly tested, verified, and
calibrated, and is within its verification or calibration period.
K. Data storage:
(1) A
cannabis testing laboratory shall ensure that all raw data, documentation,
protocols, and certificates of analysis associated with analysis of a test
sample are retained for two years from the date of the completion of analysis.
(2) A
cannabis testing laboratory shall designate an individual as responsible for records
maintenance;
(3) A
cannabis testing laboratory shall maintain the records identified in this
section. Such records must be maintained:
(a) in
a manner that allows retrieval as needed;
(b) under
conditions of storage that minimize deterioration throughout the retention
period; and
(c) in
a manner that prevents unauthorized alteration.
(4) Only
authorized personnel may access the records.
L. Data reporting:
(1) A
certificate of analysis shall contain the following information:
(a) the
date of receipt of the test sample;
(b) the
description of the type or form of the test sample (leaf, flower, powder, oil,
specific edible product, etc.);
(c) the
batch number or code that is associated with the product batch and that is
recorded in the track and trace system;
(d) the identity of the person who
collected the sample;
(e) the
date on which analysis occurred;
(f) the
analytical method used, including at a minimum identification of the type of
analytical equipment used (e.g., GC, HPLC, etc.);
(g) the
analytical results, including units of measure where applicable;
(h) the
identity of the supervisory or management personnel who reviewed and verified
the data and results and ensured that data quality, calibration, and other
applicable requirements were met; and
(i) the
name, address, and contact information of the cannabis testing laboratory that
conducted the test.
(2) The
certificate of analysis shall state that reported analytical results apply only
to the test sample received.
(3) The
certificate of analysis shall contain in minimum 12-point type, all capital
letters, the disclaimer, “UNOFFICIAL TEST RESULTS. NOT VALID FOR TRANSFER OR
SALE” whenever:
(a) The
person submitting the test sample is not a licensed cannabis establishment;
(b) The
test sample was not collected by a person authorized to collect samples for
required testing under this rule; or
(c) The
person submitting the test sample requested that the analysis be performed for
research and development purposes.
[16.8.2.48 NMAC – N, 01/11/2022]
A. License
types: The division may license two classes
of cannabis consumption areas:
(1) Type I permit: A licensed cannabis consumption area where
cannabis products may be consumed on the licensed premises, except for products
consumed through the respiratory system.
(2) Type II permit: A licensed cannabis consumption area where
cannabis products may be consumed, including products that are consumed through
the respiratory system.
B. Division
application forms: All applications for licensure
authorized pursuant to the Cannabis Regulation Act shall be made upon current
forms prescribed by the division using the online application portal. C. License required:
Unless licensed pursuant to the Cannabis Regulation Act and division rules, a
person shall not sell cannabis products to qualified patients, primary
caregivers or reciprocal participants, or directly to consumers.
D. Other
activities allowed: A licensee may conduct any lawful
activity or any combination of lawful activities at a licensed premises;
provided that the licensee is not a licensee pursuant to the Liquor Control
Act.
E. Cannabis
consumption area license: Applicants
for a cannabis consumption area must meet all qualifications for a cannabis
retailer to be approved for, and authorized to conduct, a cannabis consumption
area.
[16.8.2.49
NMAC – Rp, 16.8.2.49 NMAC, 06/07/2022]
16.8.2.50 APPLICATION
REQUIREMENTS FOR CANNABIS CONSUMPTION AREA LICENSE:
A. An
initial application or renewal for cannabis consumption area licensure shall
include the following:
(1) Contact
information for the applicant and the cannabis establishment, to include:
(a) applicant’s full legal name;
(b) applicant’s date of birth, if applicable;
(c) applicant’s mailing address;
(d) applicant’s contact telephone number;
(e) applicant’s contact email address;
(f) applicant’s business physical address and mailing address,
if different;
(g) applicant’s business legal name, including a DBA name if
applicable;
(h) applicant’s business web address, if applicable;
(i) applicant’s
business hours of operation;
(j) name and contact information for each controlling person;
(k) demographic data pursuant to the Cannabis Regulation Act;
and
(l) license type sought;
(2) proof the applicant or each controlling person is at least
21 years of age, which shall include identification issued by a federal or state
government that includes the name, date of birth, and picture of the applicant
or controlling person;
(3) legible and accurate diagram and description of the location
of the land or facility to be used for the cannabis establishment, including a
description of each consumption or retail area and all security requirements,
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) a copy of a current business license, fire inspection
report, and zoning approval;
(6) 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;
(7) 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;
(8) 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;
(9) if applicable, a sample of the record form(s), which shall
identify (among other items) the name of the wholesale purchaser, the date of
the sale, the quantity, and price of cannabis purchased for retail sale;
(10) certification the applicant will adhere to retail
requirements pursuant to the Cannabis Regulation Act, the Lynn and Erin
Compassionate Use Act, or division rules;
(11) 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;
(12) certification the applicant will adhere to security
requirements pursuant to the Cannabis Regulation Act, the Lynn and Erin
Compassionate Use Act, or division rules;
(13) 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;
(14) 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;
(15) certification the applicant has never been denied a license
or had a license suspended or revoked by the division or any other state
cannabis licensing authority or a detailed description of any administrative
orders, civil judgements, denial or suspension of a cannabis license,
revocation of a cannabis license, or sanctions for unlicensed cannabis activity
by any state licensing authority, against the applicant, controlling person, or
a business entity in which the applicant or controlling person was a controlling
person within the three years immediately preceding the date of the
application;
(16) certification the applicant is not licensed under the Liquor
Control Act;
(17) 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;
(18) 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
(19) payment of any required fees as set forth in 16.8.11 NMAC.
B. Verification
of information: The division may verify information
contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone,
mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face or virtual meeting and the
production of additional documentation; or
(4) consulting with state or local governments.
16.8.2.51 SUBMITTAL
OF APPLICATION FOR AMENDED CANNABIS CONSUMPTION AREA LICENSE:
A. Application: A licensed cannabis consumption area shall submit to the
division an application form for an amended license, if applicable, pay the
required fee, and obtain approval from the division, prior to implementing any
of the following:
(1) material or substantial change of the size or location of
the premises;
(2) change of licensee’s legal or business name;
(3) addition or elimination of a controlling person;
(4) material or substantial change to a license’s security
system; or
(5) material or substantial modification of the premises.
B. Amended
license not required: Changes to standard operating
policies and procedures may be made without providing notification to the
division, provided that licensees shall maintain at each licensed premises a
copy of all current and prior operating policies and procedures.
C. Requirements
and processing of application for amended license: The application for amended license must comply with all
requirements applicable to initial applications, except that the application
shall be clearly designated as one for an amended license. The division shall
approve or deny an application for amended license within 90 days of receiving
a completed application. Denial of an application for amendment shall be
pursuant to the Uniform Licensing Act.
D. Material
or substantial change: Material or
substantial changes requiring approval include:
(1) increase or decrease in the size of the premises, 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) change to a license’s security system, including relocation
or security points or installation of a new security system; or
(3) modification of the premises to relocate cannabis
activities.
[16.8.2.51 NMAC - N, 06/07/2022]
H. If a proposed premise is a type II cannabis consumption area
permit, the diagram shall clearly show the location of the designated smoking
area or the area immediately surrounding the building to ensure smoke will not
infiltrate other indoor workplaces or other indoor public places where smoking
is otherwise prohibited pursuant to the Dee Johnson Clean Indoor Air Act.
[16.8.2.52 NMAC - N, 06/07/2022]
16.8.2.53 CANNABIS CONSUMPTION AREA POLICIES AND PROCEDURES:
A. Minimum
policy and procedure requirements:
A licensed cannabis consumption area shall develop, implement, and maintain on
the licensed premises, standard policies and procedures, which shall include
the following:
(1) cannabis handling criteria and procedures, which shall be
consistent with the Cannabis Regulation Act, the Lynn and Erin Compassionate
Use Act, or division rules, and shall include at a minimum, the following
topics:
(a) employee health and safety training materials;
(b) training requirements for the proper use of health and safety
measures and controls;
(c) if applicable, recordkeeping and chain of custody protocols
for transportation of cannabis or cannabis product samples to a cannabis
testing laboratory;
(d) recordkeeping and chain of custody protocols for transportation
of cannabis products to another cannabis establishment for any purpose;
(e) protocols to ensure that cannabis products, including any
samples of cannabis products, are transported and stored in a manner that
prevents degradation, contamination, tampering, or diversion;
(g) if applicable, protocols for testing sample collection that
ensures accurate test results; and
(h) if applicable, procedures for remedial measures to bring
cannabis products into compliance with division standards or destruction of a
tested batch of cannabis products if the testing samples from the tested batch
indicate noncompliance with applicable health and safety standards;
(2) employee policies and procedures to address the following
minimum requirements:
(a) adherence to state and federal laws;
(b) responding to an emergency, including robbery or a serious
accident;
(c) alcohol and drug-free workplace policies and procedures;
(d) safety and security procedures;
(e) occupational safety;
(f) crime prevention techniques; and
(g) confidentiality laws, including the Health Insurance
Portability and Accountability Act of 1996; and
(3) documentation prepared for each employee and statements
signed by employees indicating receipt and understanding of policies and
procedures.
B. Training
program:
(1) Licensee shall implement a training program to ensure that
all personnel present at the premises are provided information and training
that, at minimum, covers the following topics within 30 days of the start of
employment:
(a) health and safety hazards;
(b) security procedures; and
(c) record keeping requirements.
(2) Prior to engaging in any cannabis consumption area process:
(a) an overview of the process and standard operating
procedure(s);
(b) safe work practices applicable to an employee’s job tasks,
including appropriate use of any necessary safety or sanitary equipment;
(c) cleaning and maintenance requirements;
(d) emergency operations, including shutdown; and
(e) any additional information reasonably related to an
employee’s job duties.
(3) A licensee that retails unpackaged edible cannabis products
shall ensure that all personnel who handle edible products successfully
complete a food handler course accredited by the American national standards
institute (ANSI). Such training shall be maintained while employed by a
cannabis consumption area. The licensee shall obtain documentation evidencing
the fulfillment of this requirement.
C. Training
documentation:
(1) Licensee shall ensure that all personnel receive annual
refresher training to cover, at minimum, the topics listed in this section. The
licensee shall maintain a record which contains at minimum:
(a) a list of all personnel at the premises, including at
minimum, name and job duties of each;
(b) dates of training completion for all personnel;
(c) dates of refresher training completion for all personnel;
(d) the signature of each employee verifying receipt and
understanding of each training or refresher training completed by the
personnel;
(e) any official documentation attesting to the successful
completion of required training by personnel.
(2) Licensee may assign responsibility for ensuring compliance
by individual personnel with the requirements of this section to supervisory
personnel.
D. Retention
of training documentation: Licensees
shall maintain documentation of an employee’s training for a period of five
years for current employees and for at least six months after the termination
of an employee’s employment.
[16.8.2.53 NMAC - N, 06/07/2022]
16.8.2.54 MINIMUM STANDARDS FOR CANNABIS CONSUMPTION AREAS:
A. Access
to cannabis consumption area premises prior to authorization of consumption or
retail sale of commercial cannabis:
Prior to the division authorizing the consumption or retail sale of commercial
cannabis, pursuant to Subsection K of Section 26-2C-6 and Paragraph (5) of
Subsection B of Section 26-2C-7 of the Cannabis Regulation Act, NMSA 1978,
access to the licensed premises of a retailer shall be limited to:
(1) individuals who are at least 21 years of age and possess a
valid form of identification;
(2) individuals who are at least 18 years of age and possess a
valid qualified patient, primary caregiver, or reciprocal participant registry
identification card from the department of health medical cannabis program.
B. Access
to cannabis consumption area premises upon authorization of consumption or
retail sale of commercial cannabis:
Upon the division authorizing the retail sale of commercial cannabis, pursuant
to Subsection K of Section 26-2C-6 and Paragraph (5) of Subsection B of Section
26-2C-7 of the Cannabis Regulation Act, NMSA 1978, access to the licensed
premises of a retailer shall be limited to the following:
(1) individuals who are at least 21 years of age and possess a
valid form of identification; and
(2) individuals who are at least 18 years of age and possess a
valid qualified patient, primary caregiver, or reciprocal participant registry identification
card from the department of health medical cannabis program.
C. Customer
access to the consumption area:
(1) Individuals shall be granted access to consume or purchase
cannabis goods only after the licensed cannabis consumption area or an employee
of the licensed cannabis consumption area has confirmed the individual’s age
and identity, and if applicable, the individual’s status as a qualified
patient, primary caregiver, or reciprocal participant.
(2) The licensed cannabis consumption area or at least one
employee shall be physically present in the consumption area at all times when
individuals who are not employees of the licensed retailer are in the retail
area.
(3) All sales of cannabis goods, with the exception of cannabis
goods sold through delivery, must take place within the retail area of the
retailer’s licensed premises.
(4) A licensed cannabis consumption area shall s only allow
cannabis consumption between the hours reported to the division as regular
business hours.
(5) A licensed cannabis consumption area may allow qualified
patients to bring previously purchased goods from the licensed cannabis
consumption area for consumption provided the cannabis product is properly
stored in the requisite resealable packaging and the qualified patient provides
proof of purchase from the cannabis consumption licensee of the product to be
consumed.
D. Requirements
while not open for business: At
any time the licensed premises is not open for cannabis consumption, a licensed
cannabis consumption area shall ensure that:
(1) the licensed premises is securely locked with
commercial-grade, nonresidential door locks;
(2) the licensed premises is equipped with an active alarm
system pursuant to pursuant to Section 10 of this rule, which shall be
activated when the licensed retailer or its employees are not on the licensed
premises; and
(3) only employees of the licensee and other authorized
individuals are allowed access to the licensed premises. For the purposes of
this section, authorized individuals include individuals employed by the
licensee as well as any outside vendors, contractors, or other individuals
conducting business that requires access to the licensed premises.
E. Commercial
and medical cannabis consumers:
(1) A licensed cannabis consumption area shall only sell and
allow for the consumption of commercial cannabis and cannabis products to
individuals who are at least 21 years of age after confirming the customer’s
age and identity by inspecting a valid form of identification provided by the
customer as required by Subsection B of this section.
(2) A licensed cannabis consumption area shall only sell and
allow for the consumption of cannabis and cannabis products to individuals who
are at least 18 years of age and possess a valid qualified patient, primary
caregiver, or reciprocal participant registry identification card from the
department of health medical cannabis program, after confirming the customer’s
age, identity, and valid registry identification.
(3) Acceptable forms of identification include the following
(a) a document issued by a federal, state, county, or municipal
government, or a political subdivision or agency thereof, including, but not
limited to, a valid motor vehicle operator's license, that contains the name,
date of birth, and photo of the person;
(b) a valid identification card issued to a member of the armed
forces that includes the person’s name, date of birth, and photo; or
(c) a valid passport issued by the United States or by a foreign
government.
F. Cannabis product display:
(1) Cannabis and cannabis products for
customer inspection and sale shall only be displayed in the area where retail
activities take place.
(2) Cannabis and cannabis products may be
removed from their packaging and placed in containers to allow for customer
inspection. The containers shall not be readily accessible to customers without
assistance of cannabis consumption area personnel. A container must be provided
to the customer by the licensed cannabis consumption area or its employees, who
shall remain with the customer at all times that the container is being
inspected by the customer.
(3) Cannabis and cannabis products
removed from their packaging for display shall not be sold, shall not be
consumed, and shall be destroyed, pursuant to pursuant to Section 15 of this
rule, when the cannabis or cannabis products are no longer used for display.
F. Cannabis
server permit requirements: all employees
of the licensed cannabis consumption area who directly offer, sell or serve
cannabis must hold a current and valid cannabis server permit according to 18.8.10
NMAC.
G. No visible
consumption of cannabis products:
a licensed cannabis consumption area shall ensure that the display and
consumption of any cannabis product is not visible from outside of its licensed
premises. Licensed cannabis consumption areas may be located outdoors provided
that:
(1) all cannabis product is kept out of plain sight and is not
visible from a public place without the use of optical aids, such as telescopes
or binoculars, or aircraft; and
(2) the licensed cannabis consumption area shall ensure that the
outdoor consumption area is surrounded by a sight-obscuring wall, fence, hedge,
or other opaque or translucent barrier.
H. Required
signage: a licensed cannabis consumption
area must post, at all times and in a prominent place inside the consumption
area, a warning that is at minimum 12 inches high and 12 inches wide that reads
as follows:
|
“Cannabis may only be consumed in designated areas out of
public view No consumption of alcohol products on site We reserve the right to refuse entry or service for
reasons including visible intoxication It is against the law to drive while impaired by cannabis” |
[16.8.2.54 NMAC - N, 06/07/2022]
16.8.2.55 DEE
JOHNSON CLEAN INDOOR AIR ACT:
Smoking and vaping shall be allowed on the licensed premises of type II
cannabis consumption area only if the cannabis consumption area is in a
designated smoking area or in a standalone building from which smoke does not
infiltrate other indoor workplaces or other indoor public places where smoking
is otherwise prohibited pursuant to the Dee Johnson Clean Indoor Air Act.
[16.8.2.55 NMAC - N, 06/07/2022]
16.8.2.56 CANNABIS RESEARCH LABORATORY LICENSURE; GENERAL PROVISIONS:
A. License Types: The division may license three classes of research:
(1) Tier I: A cannabis research laboratory Tier I may produce cannabis to be ingested by human or animal subjects, or produce cannabis not meant for ingestion, for division approved clinical, agricultural, or market research studies; produce federally legal cannabis products; and may conduct division approved clinical, agricultural, or market research studies;
(2) Tier II: A cannabis research laboratory Tier II may produce cannabis not meant for ingestion, or purchase cannabis to be ingested by human or animal subjects, for division approved clinical, agricultural, or market research studies; and may conduct division approved clinical, agricultural, or market research studies
(3) Tier III: A cannabis research laboratory Tier III may not produce cannabis and may only purchase cannabis or cannabis products from licensed cannabis research laboratories Tier I and Tier II, as appropriate for approved clinical, agricultural, or market research studies; and may conduct clinical, agricultural, or market research studies.
B. A Tier II or Tier III cannabis research laboratory may purchase cannabis
from
another licensed
cannabis establishment with
approval from the
cannabis control division only
if
such research relates to brand specific
inquiries (e.g.,
including studies
comparing similar products from different brands
or
conducting cultivar
specific efficacy studies for certain conditions) where
use of cannabis
or cannabis products produced
by a cannabis research laboratory is impossible.
C. Except as noted in Subsection B, a cannabis research laboratory license permits a licensee to produce, process, transport, transfer, sell and possess cannabis consistent with its license type for research and related purposes.
D. A cannabis research laboratory may also produce and distribute federally legal cannabis products as authorized by state and federal law pertaining to drug products.
E. A cannabis research laboratory will provide notice to the cannabis control division prior to commencing the production and distribution of any federally legal cannabis product, including evidence of federal authorizations.
F. All applications for licensure authorized pursuant to the Cannabis Regulation Act shall be made upon current forms prescribed by the division.
[16.8.2.56
NMAC – Rp 16.8.2.56 NMAC, 07/12/2022]
16.8.2.57 APPLICATION REQUIREMENTSFOR
CANNABIS RESEARCH LABORATORY LICENSE:
A. An initial application or renewal for cannabis research laboratory licensure shall include the following:
(1) Business and controlling person(s) contact information, to include:
(a) legal business name, including DBA if applicable
(b) type of business entity;
(c) business mailing address;
(d) business telephone number;
(e) business email address;
(f) business physical address, if different;
(g) business web address, if applicable;
(h) business hours of operation;
(i) name and contact information for each controlling person;
(j) demographic data pursuant to the Cannabis Regulation Act; and
(k) license type sought (Tier I, Tier II, or Tier III);
(2) proof 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 controlling person;
(3) if applicable,
certification the applicant is in
good standing with the New
Mexico secretary of state;
(4) a list of other current or prior licensed cannabis businesses;
(5) a list of other names used by controlling person(s);
(6) name and contact information for the primary controlling person for the business or an authorized representative of the business if not a controlling person;
(7) criminal history screening documents as set forth in 16.8.2.9 NMAC and the Cannabis Regulation Act;
(8) 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;
(9) if applicable, a detailed research
plan, including but not limited to the applicant’s plan for recruiting research
subjects, producing or acquiring cannabis, dispensing cannabis, plans for
continuing research, and the forms of usable cannabis and cannabis-derived
products to be examined;
if
applicable, a detailed description of any private or public partnerships with
higher education institutions, other cannabis research laboratories, or private
business;
(10) if applicable, drug enforcement
administration license to conduct research;
(11) if applicable, proof of prior approval by the New Mexico regulation and licensing department for the use of any compressed gas extraction equipment to be utilized by the manufacturer;
(12) if applicable, the applicant’s DEA license or any conditional approval from the DEA to bulk manufacture cannabis for research, or the applicant’s plan for seeking such licensure in the future;
(13) certification the applicant will not use dimethylsulfoxide (DMSO) in the production of cannabis derived products, and will not possess DMSO on the premises of the licensee;
(14) evidence that the applicant has obtained all necessary permits required for the production of edible and topical cannabis products from the New Mexico environment department and that such permits are valid at the time the license application is submitted
(15) 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;
(16) certification the applicant will adhere to security requirements pursuant to the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, or division rules;
(17) certification the applicant will adhere to applicable federal, state and local laws governing the protection of public health and the environment, including occupational health and safety, food safety, fire safety, environmental impacts, natural resource protections, air quality, solid and hazardous waste management, and wastewater discharge;
(18) certification the applicant has never been denied a license or had a license suspended or revoked by the division or any other state cannabis licensing authority or a detailed description of any administrative orders, civil judgements, denial or suspension of a cannabis license, revocation of a cannabis license, or sanctions for unlicensed cannabis activity by any state licensing authority, against the applicant, controlling person, or a business entity in which the applicant or controlling person was a controlling person within the three years immediately preceding the date of the application;
(19) certification the applicant will adhere to production and manufacturing 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 products;
(20) 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;
(21) 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 grantmerced, federally designated opportunity zone, or other rural historic communities;
(22) an attestation by a person authorized to act on behalf of the business 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
(23) payment of any required fees as set forth in 16.8.11 NMAC.
B. Verification of information: The division may verify information contained in each application and accompanying documentation by:
(1) contacting the applicant or controlling person by telephone, mail, or electronic mail;
(2) conducting an on-site visit;
(3) requiring a face-to-face or virtual meeting and the production of additional documentation; or
(4) consulting with state or local governments.
C. Trade secrets: Any applicant submitting operating procedures and protocols to the division pursuant to the Lynn and Erin Compassionate Use Act, the Cannabis Regulation Act, or division rules, may claim such information as a trade secret or confidential by clearly identifying such information as “confidential” on the document at the time of submission. Any claim of confidentiality by an applicant must be based on the applicant’s good faith belief that the information marked as confidential constitutes a trade secret as defined in the Uniform Trade Secrets Act, Sections 57-3A-1 to -7, NMSA 1978. In the event the division receives a request to inspect such documents, the division will notify the applicant or licensee, via the current email of record. If the division does not receive an injunction pursuant to the Uniform Trade Secrets Act within 10 days of the request to inspect, the division will make the documents marked confidential available for inspection as required pursuant to the Inspection of Public Records Act.
[16.8.2.57
NMAC – N, 07/12/2022]
16.8.2.58 SUBMITTAL OF APPLICATION FOR
AMENDED CANNABIS RESEARCH LABORATORY LICENSE:
A. Application: A licensed research laboratory shall submit to the division an application form for an amended license, if applicable and obtain approval from the division, prior to implementing any of the following:
(1) material or substantial change of the size or location of the premises;
(2) change of licensee’s legal or business name;
(3) change or modification in extraction type(s) or equipment;
(4) material or substantial change in water source;
(5) addition or elimination of a controlling person;
(6) material or substantial change to a license’s security system; or
(7) material or substantial modification of the premise.
B. Amended license not required: Changes to standard operating policies and procedures may be made without providing notification to the division, provided that licensees shall maintain at each licensed premises a copy of all current and prior operating policies and procedures.
C. Requirements and processing of application for amended license: The application for amended license must comply with all requirements applicable to initial applications, except that the application shall be clearly designated as one for an amended license. The division shall approve or deny an application for amended license within 90 days of receiving a completed application. Denial of an application for amendment shall be pursuant to the Uniform Licensing Act.
D. Material or substantial change: Material or substantial changes requiring approval include:
(1) increase or decrease in the size of the premises, including the sale of property used for the cannabis establishment, the purchase of additional property for the use of the cannabis establishment, or a change in the location of the cannabis establishment;
(2) a modification in the licensee’s access to the water source submitted with an application for initial or renewal licensure or a ten percent, or more, increase in the licensee’s water usage;
(3) change to a license’s security system, including relocation or security points or installation of a new security system; or
(4) modification
of the
premises to relocate cannabis activities.
[16.8.2.58
NMAC – N, 07/12/2022]
16.8.2.59 EXPEDITED
APPROVAL PROCESS: The division
shall create an early approval process for entities that are either registered
or conditionally approved by the FDA to manufacture bulk cannabis for research
or to research cannabis.
A. Any entity conditionally approved for or holding a valid
DEA registration as enumerated below may, within 60 days of the effective date,
apply to the cannabis control division for expedited approval as follows:
(1) An entity that is registered with or
conditionally approved by the DEA to manufacture bulk cannabis for research may
seek early approval for a Tier I License; or
(2) An entity that is registered with or
conditionally approved by the DEA to research cannabis may seek early approval
for a Tier III license.
B. If an applicant meets all the relevant requirements of
this section, the division shall issue the research laboratory license within
30 days of receiving a completed application.
[16.8.2.59 NMAC –
N, 07/12/2022
16.8.2.60 PREMISES DIAGRAM:
All licensees shall have a detailed diagram of the premises on hand at all times and made available for in person inspection by the Division or its agents upon request. This premises diagram shall conform to the requirements set forth in 16.8.2 NMAC.
[16.8.2.60
NMAC – N, 07/12/2022]
16.8.2.61 CANNABIS RESEARCH LABORATORY
POLICIES AND PROCEDURES:
A. Minimum policy and procedure requirements: Licensees shall develop, implement, and maintain on the licensed premises, standard policies and procedures, which shall include the following:
(1) cannabis research criteria and procedures, which shall be consistent with the requirements of applicable state laws, including the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, division rules, and shall include at a minimum, the following topics:
(2) protocols for research;
(3) recordkeeping and chain of custody protocols for transportation of cannabis or cannabis product; and procedures for testing and destruction of cannabis or cannabis products;
(4) employee policies and procedures to address the following minimum requirements:
(5) adherence to state and federal laws;
(6) responding to an emergency, including robbery or a serious accident or incident;
(7) alcohol and drug-free workplace policies and procedures;
(8) safety and security procedures;
(9) occupational health and safety;
(10) crime prevention techniques; and
(11) if applicable, confidentiality laws, including the Health Insurance Portability and Accountability Act of 1996; and
(12) statements signed by employees indicating receipt and understanding of policies and procedures.
B. Training program: Licensee shall implement a training program, approved by the division, to ensure that all personnel present at the premises are provided information and training that, at minimum, covers the following topics within 30 days of the start of employment:
(1) employee health and safety;
(2) health and safety hazards;
(3) hazard communication for all solvents or chemicals used at the licensed premises and as described in the safety data sheet for each solvent or chemical;
(4) requirements for the proper use of health and safety measures and controls;
(5) emergency procedures;
(6) security procedures; and
(7) record keeping requirements.
C. A licensee, or employee, involved in the handling, transportation, manufacture, extraction, testing, or packaging of cannabis products must successfully complete a food handler course accredited by the American national standards institute (ANSI) prior to conducting any related activities. Such training shall be maintained while employed under a cannabis research licensee. The licensee shall obtain documentation evidencing the fulfillment of this requirement.
D. Training documentation:
(1) Licensee shall ensure that all personnel receive annual refresher training to cover, at minimum, the topics listed in this section.
(2) The licensee shall maintain a record, which contains at minimum:
(a) duties of each personnel;
(b) a list of all personnel at the premises, including at minimum, name and job title;
(3) documentation of training topics and dates of training completion;
(4) the signature of each employee verifying receipt and understanding of each training or refresher training completed.
E. Retention of training documentation: Licensees shall maintain documentation of an employee’s training for a period of two years for current employees and at least six months after the termination of an employee’s employment.
[16.8.2.61
NMAC – N, 07/12/2022]
16.8.2.62 HUMAN SUBJECT PROTECTIONS:
A. Before conducting research involving human subjects,
the licensee shall:
(1) provide the division with
documentation that the study has received institutional review board (IRB)
approval, as defined and described in 45 CFR Part 46, federal policy for the
protection of human subjects; and
(2) obtain “informed consent,” as
defined and described in 45 CFR Part 46, federal policy for the protection of
human subjects, from the human research subject.
B. Nothing in this part relieves the licensee from
complying with applicable FDA and state requirements governing cannabis
research.
[16.8.2.62
NMAC – N, 07/12/2022]
16.8.2.63 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.
[16.8.2.63
NMAC – Rn, 16.8.2.43 NMAC, 01/11/2022; Rn, 16.8.2.56 NMAC, 07/12/2022]
History of 16.8.2
NMAC: [RESERVED]