CCD RULE CHANGE ALERT

Written By Matt Kennicott

Last August, CCD held rules hearings proposing several new rules. Those included changes to the licensing and operational requirements for cannabis establishments and new fees.

Microbusinesses, particularly those that are vertically integrated, should pay particular attention to the changes in the fees section. With the implementation of the amended rule, fees for new micro licenses and renewals of micro licenses have increased by 150% from $1,000 annually to $2,500 annually. The only microbusiness license type not impacted by the new fee schedule is the cannabis producer microbusiness license, which stays at the $1,000 annual fee.

The amended rules for the licensing and operational requirements section apply to every license type. Several adjustments to documentation will be needed for new licenses and renewals. These include local documentation and a Gross Receipts Tax (GRT) registration.

Amended Rules 

Rule:    16.8.11 (https://www.srca.nm.gov/nmac/nmregister/xxxv/16.8.11amend.pdf)

Sections Changed:   9 & 10

Section Title: Fees

Summary:       

  • Licensing fees for microbusinesses were initially $1,000 for all types

  • Fees have increased for all license types except for a producer microbusiness

  • New fees are included - $75 per amendment submission and $75 per agent designation

Rule:    16.8.2 (https://www.srca.nm.gov/nmac/nmregister/xxxv/16.8.2amend.pdf)

Sections Changed:   8, 22, 23, 30, 31, 36, 37, 42, 44, 45, 50, 51, 57, and 59

Section Title:      Licensing and Operational Requirements for Cannabis Establishments

Summary:            

  • New licenses or renewals now need documentation from local jurisdictions before license issuance

  • Documentation for submission may be:

  • A copy of a current business license from the jurisdiction, which may include zoning approval and a fire inspection report or

  • Evidence that the jurisdiction does not issue business licenses or

  • Evidence that the jurisdiction does not issue a business license before the issuance of a state license

  • Proof of a registered GRT account with the Taxation and Revenue Department is also required for all new licenses and renewals

If you have a question, let us know! You can reach Matt by sending him an email.

Matt Kennicott
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