If you’re interested in opening a dispensary in New Mexico, there are a few things you should know. These include the minimum capital requirements and compliance with regulations.
Legalization of Cannabis in New Mexico
The Cannabis Regulation Act made it legal for New Mexicans age 21 and older to use recreational cannabis. In addition, the law will allow people to sell marijuana to other adults.
Aside from the tax, the Cannabis Regulation Act also requires that the state publish data on the owners of licensed cannabis businesses. This allows the state to protect consumers from illegal business practices.
The legalization of cannabis has a number of impacts on the economy, law enforcement, and water resources. But it also offers economic opportunities to those interested in entering the industry.
In December, sales of medical and recreational cannabis topped $40 million in New Mexico. While the industry has yet to grow, it is expected to generate more than $20 million for the state by 2023.
In April of this year, New Mexico became the 17th state to legalize the use of adult-use marijuana. By removing prohibitions, the state hopes to encourage investment in the marijuana cultivation and retail industries.
To begin, the Cannabis Control Division is preparing rules for producers and retailers. It will also be issuing licenses to consumption lounges and micro businesses. CCD will also listen to public comments on these rules.
Local governments will also be able to regulate the marijuana industry. They can set zoning, distances from schools and daycares, and limit the number of dispensaries.
Minimum Capitalization Requirements to Open a Dispensary
The minimum capitalization requirements to open a dispensary in Mexico are relatively modest. You don’t have to invest hundreds of thousands of dollars, and you won’t need extensive equipment. Nevertheless, there are many costs to consider.
The cost to set up a dispensary varies from state to state, so you will need to research your market. It’s also important to understand the local laws surrounding marijuana. For instance, some local governments can restrict business hours or locations.
Fortunately, there are several workarounds. One example is the use of an industry-specific financing group. Alternatively, you can look for angel investors or venture capital firms.
Another thing to keep in mind is the state’s licensing and permit requirements. Although not all states require dispensaries, some do. If you plan to operate one, you may have to comply with a complex zoning law or a supply chain plan. In some cases, you will need to pay a licensing fee to the local government.
Some states don’t require any capital, and the initial fee is a fraction of what it would be in a non-cannabis environment. But, you can expect to pay a significant amount of money each year in operating expenses. Depending on your location, the annual costs of operating a cannabis dispensary can range from a few thousand dollars to thousands of dollars.
Compliance With Laws And Regulations
The state of New Mexico has a very comprehensive medical cannabis program that includes a series of requirements for participating businesses. These rules also apply to recreational marijuana. However, the biggest challenge for many new dispensary owners is outpacing supply.
Compliance with the law and regulations is an integral part of managing a dispensary. This includes hiring managers with experience in the industry. It also means adhering to local regulations. A modern point-of-sale system is a must.
If you’re in the market to open a dispensary in New Mexico, the first thing you need to do is hire a compliance officer. They’re tasked with investigating reports of violations of the Cannabis Regulatory Act.
You may also need to review drug testing policies for your employees and make sure you’re complying with state and local health and safety regulations. Some insurance companies will require a licensed security company. Having a security guard in your shop will probably cost you about $5 to $10 per hour, depending on your location and how many security guards you need.
There are many other things you should know about New Mexico’s regulatory scheme. One of the more notable is that it has a streamlined application process. In fact, the fee is surprisingly affordable. Despite the low start-up costs, it still requires a hefty number of compliance checks.
