How do you form a medical marijuana dispensary in New Mexico?

The medical cannabis industry in New Mexico is extremely complicated and burdensome. For openers, medical cannabis providers must operate as a nonprofit, and, based on the Department of Health’s licensing requirements, must have a board of directors. The board must have at least five members, at least one medical provider, a doctor, nurse or physician’s assistant, and at least three patients who qualify for medical cannabis use. Setting up a nonprofit business entity itself requires the expertise of an attorney.

Once nonprofit is formed and the board is set up, then you submit an exhausting application.

You must also submit a detailed business plan. This plan requires, among other things:

Inventory Control Plan

Patient Record Keeping Plan

Security Plan

Patient Education Plan

Financial Plan

Policies & Procedures

Marketing & Advertising Plan

Administration Plan

Product Labeling & Analysis Plan

Edible and Infusion Bakery Plan

Cleaning & Sanitation Plan

Transportation Plan

These plans undergo a strenuous review. Only if the proposals are determined to meet all requirements and are accepted by a review panel then a site visit may be conducted. The Secretary of Health makes the final determination for approval of the license, in which may factor various considerations, including public safety and patient demand.

Then there is a $10,000 application fee. Once a producer has been granted a license, they must get their plant count approved which is based on the Department of Health licensing requirements, producers are only allowed to grow up to 450 plants.

Furthermore, your facility is subject to inspection and audit at any time by the New Mexico Department of Health. Given that the business must be a nonprofit, the extremely tight regulations and the ongoing compliance that the any dispensary must conform to, an experienced attorney must be consulted at every stage of the process. At LawTrades, our attorneys have experience in working with entrepreneurs who specialize in this new industry and have successfully helped other startup companies comply with the complex maze of business and regulatory hurdles you will face should you decide to move forward with your new business.