Proposed changes to New Mexico cannabis rules before start of recreational sales spark criticism

With less than a month and a half to go before sales of recreational marijuana are scheduled to begin in New Mexico, the state agency charged with standing up the burgeoning industry is proposing new regulations and tweaks to others.

The proposed changes to existing rules just before the start of retail sales sparked some criticism of the Cannabis Control Division during a public hearing Tuesday.

“There’s constant moving targets in this program, and we have not even begun,” said Erica Rowland, who is working to open a “cannabis country club” in Albuquerque’s North Valley.

“How is one to focus on requirements and plan to succeed when costly and timely paperwork requirements are constantly changing or being eliminated?”

Heather Brewer, a division spokeswoman, said the agency set out to “get everything right” but noted it had to start up a new industry in the state in a little over eight months.

“We’re not living in a perfect world,” she said. “There are changes that need to be made. There are things that, as we get further into the process and hear feedback [from various stakeholders], we realize we have to change.”

Among the proposed amendments is eliminating a requirement for businesses to submit a diagram of their work premises in their license applications, largely over concerns the blueprint would be a public record that could be used for nefarious purposes.

“As people were submitting their applications, that’s when the issue was brought about by the legacy producers,” said Jason Barker, a cannabis policy expert.

“They said, ‘Hey, you’re having us submit a diagram in the form of a public record that is nothing more than a blueprint on how to break into our business if someone gets ahold of it who shouldn’t.’ Obviously, with crime in the state, that’s really concerning.”

Brewer said public safety was at the heart of the decision.

“Any documentation like that [is subject to the New Mexico Inspection of Public Records Act], so somebody could conceivably get a layout of a business and use that as a way to target them,” she said.

Rowland said she spent about $2,000 to obtain a diagram. The rules now require the cannabis business to certify they will maintain such a document at all times.

“It’s a bummer that they’re playing with the rules when the game hasn’t even started,” she said.

The amendments also call for reports annually — “or as otherwise reasonably requested” — from manufacturers, testing laboratories and retailers.

“Those are a holdovers from requirements from the original Medical Cannabis Program,” Brewer said. “For the sake of consistency, it’s being now applied across the board for adult use, as well.”

During Tuesday’s virtual hearing, which got off to a bumpy start because of internet connectivity issues, a number of speakers asked the agency to consider adding “Level 1 manufacturing” to production licenses to allow for the sale of such items as marijuana joints and cannabis oils.

“For the very basic micro producer license, all you can do is grow cannabis and sell the cannabis flower,” Barker said.

“If a person who got approved for that license decided to sell some pre-rolls and roll up some joints, that would be manufacturing, and [that person] would be breaking the law.”

Baker said the limitation puts micro producers at a disadvantage.

“If all they have is one or two items they can sell in their store, and then the next store is 500 feet away and has

200 items because it’s a big producer, then it’ll make the decision really easy on the consumer,” he said.

Others raised concerns about the division’s lack of responsiveness.

“I’ve called; I’ve written emails,” said a man who identified himself as John Roybal.

“It seems that we can get no timely responses whatsoever. There’s no in-person support. No office. I mean, it’s a couple months away, and we have no way to answer these questions in a timely manner for our clients. I mean, these are million-dollar businesses, and it seems like we’re just being ignored.”

Brewer said the agency, which pleaded with lawmakers for additional funding during the 30-day legislative session that ended last week, has received more than 800 applications for business licenses across all sectors of the industry. She also said the agency has been “very short-staffed” but has generally received positive feedback.

“They understand that there are some hiccups in the process — they’re willing to work with that — but overall, things are going smoothly,” she said.