Section 26-2C-7 - Cannabis activity licensing; application; issuance and denial of a license; suspension and revocationA. In carrying out its commercial cannabis activity licensing duties, the division shall: (1) no later than September 1, 2021, accept and begin processing license applications for cannabis producers, cannabis producer microbusinesses and any person properly licensed and in good standing as a licensed cannabis producer pursuant to the Lynn and Erin Compassionate Use Act [Chapter 26, Article 2B NMSA 1978];(2) no later than January 1, 2022, accept and begin processing license applications for all license types;(3) if a cannabis producer or cannabis producer microbusiness, require as a condition of licensing that the applicant demonstrate that the applicant has a legal right to a commercial water supply, water rights or other source of water sufficient to meet the water needs as determined by the division related to the license as evidenced by documentation from the office of the state engineer of a valid water right or from a water provider that the use of water for cannabis production is compliant with that water provider's rules; and(4) for any type of cannabis producer or manufacturer license, require the applicant to submit a plan to use, or demonstrate to the division that the applicant cannot feasibly use, energy or water reduction opportunities, including: (a) for a cannabis producer, drip irrigation and water collection;(b) natural lighting and energy efficiency measures; and(c) renewable energy generation.B. Once the division deems an application complete, the division has ninety days to issue or deny a license application.C. The division shall deny an application for an initial license or renewal if the application does not include information required by the division or the applicant does not meet the requirements of the Cannabis Regulation Act or rules promulgated in accordance with that act.D. The division may refuse to issue, suspend or revoke a license in accordance with the Uniform Licensing Act [Chapter 61, Article 1 NMSA 1978] of any person who does not meet the qualifications for licensure, who is not in compliance with the Cannabis Regulation Act or rules promulgated in accordance with that act or for whom one or more of the following are substantially related to the qualifications, functions or duties of the applicant's or licensee's business in New Mexico: (1) a tax lien related to cannabis activity in this or another state;(2) a pending investigation or a felony indictment or conviction of the applicant or licensee or a controlling person of the applicant or licensee in this state or another state or by the federal government involving fraud, deceit or embezzlement;(3) a pending investigation or a felony indictment or conviction of the applicant or licensee or a controlling person of the applicant or licensee involving producing, manufacturing, distributing, selling or giving away illegal cannabis products;(4) the denial, suspension or revocation of a cannabis license in another state that would have the same result if occurring in New Mexico;(5) a pending investigation or a felony indictment or conviction for hiring, employing or otherwise using a person younger than eighteen years of age or a person of any age who is a victim of trafficking, forced labor or other exploitation to produce, manufacture, transport or sell cannabis or a controlled substance;(6) a licensee or controlling person that after a notice of noncompliance issued by the division refuses to follow division licensing requirements, state or local operational rules, public health and safety laws or rules or other provisions of state law pertaining to cannabis products; or(7) any other governmental action pending or taken against an applicant, licensee or controlling person that in the division's determination makes the person unqualified to be licensed or involved in a cannabis business in New Mexico.E. Production, manufacture, distribution, sale or possession of illegal cannabis product is grounds for denial, suspension or revocation of a license or for taking any other disciplinary action allowed by law or rule of the division.F. If the division determines after a review of pertinent circumstances provided in Subsection D of this section that the applicant, licensee or controlling person otherwise meets the qualifications for licensure and that issuing a license does not compromise the state's cannabis program or the public health or safety, the division shall issue the license or close the suspension or revocation case.G. A conviction for which the related sentence, including any term of probation or parole, has been completed for the production, possession, use, manufacture, distribution or sale or the possession with the intent to manufacture, distribute or sell cannabis is not considered substantially related to the qualifications, functions or duties of a person seeking a license and shall not be the sole ground on which an application is denied. The provisions of the Uniform Licensing Act and the Criminal Offender Employment Act [Chapter 28, Article 2 NMSA 1978] shall govern consideration of criminal records required or permitted by the Cannabis Regulation Act.H. The division shall deny an application if an applicant, a controlling person or the premises for which a license is sought does not qualify for licensure pursuant to the Cannabis Regulation Act.I. The division shall not license a person who has had a license that was issued pursuant to the Cannabis Regulation Act or the Lynn and Erin Compassionate Use Act revoked by the division or the department of health in the three years immediately preceding the date on which the person filed a new application.J. Unless otherwise provided in the Cannabis Regulation Act, a person whose license has been revoked may reapply for a license after a period of three years. The division may consider all of the circumstances resulting in the revocation in determining whether to issue a new license. Laws 2021 (1st S.S.), ch. 4, § 7.Amended by 2024, c. 38,s. 4, eff. 7/1/2024.