New Mexico’s cannabis industry, once a beacon of economic opportunity and social equity, now finds itself at a critical juncture.
After nearly three years of regulated adult-use sales, the industry is facing significant challenges. These include under-resourced regulators, the proliferation of unregulated products, and market instability. The time for decisive action is now. We must make thoughtful adjustments to the New Mexico Cannabis Act to ensure the industry’s long-term success.
At the heart of the issue is the need for effective oversight. The Cannabis Control Division (CCD) has demonstrated commitment and diligence in regulating the industry, but the rapid growth of New Mexico’s cannabis market has outpaced its resources. With only 11 inspectors for over 1,000 dispensaries, the CCD is doing all it can, but more support is needed.
For comparison, Colorado, often cited as a regulatory benchmark, employs 30 inspectors for fewer dispensaries.Without adequate oversight, public trust in the legal cannabis industry is at risk, as is consumer safety.
The call for sensible reforms is not just a voice in the wilderness. It is a resounding chorus. Surveys reveal that over half of New Mexicans believe the number of dispensaries is excessive, and nearly two-thirds support measures to limit the density of dispensaries by population. Furthermore, 58% of voters endorse a temporary pause on new licenses, allowing regulators to scale their oversight capabilities while stabilizing the market for existing businesses.
The consequences of inaction are significant. Gaps in regulation create opportunities for illicit markets to flourish, undermining compliant businesses. Additionally, the unchecked availability of unregulated hemp-derived THC and related synthetic products present a pressing public safety concern. These products bypass the rigorous testing required for licensed cannabis, making them more accessible to teens and other vulnerable populations. Addressing this issue through targeted bans on unregulated sales is essential to protect consumers and ensure a fair marketplace.
Revising the Cannabis Regulation Act also holds significant economic promise. The industry has already contributed substantial tax revenue and created thousands of jobs in New Mexico. However, unchecked growth threatens these gains. Reports indicate that many retailers earn less than $50,000 per month, with some struggling to stay afloat amid rising competition.
By prioritizing smart regulation, New Mexico can foster a healthy market environment that allows small businesses to thrive while preserving the broader economic benefits of legalization, offering a bright future for the industry.
Other states provide valuable lessons, such as implementing temporary pauses on new licenses to address similar challenges. These measures have helped stabilize markets, protect consumers, and ensure longterm industry viability. New Mexico can learn from these examples by adopting proactive strategies tailored to its unique market dynamics.
Some may worry that reforms such as a temporary pause or density limits could hurt small businesses.However, it’s important to note that many local operators see these changes as necessary. Over 100 dispensary owners in New Mexico have already called on state leaders to address regulatory shortcomings. They recognize that a stable, well-regulated market is in everyone’s best interest and that these reforms are designed to support,not hinder, their operations.
The New Mexico Cannabis Regulation Act was groundbreaking legislation, but it was never meant to be static.Adjustments are a natural part of any evolving policy framework, especially in a dynamic industry like cannabis.
By enhancing the CCD’s resources, enacting a temporary licensing pause, and banning harmful, unregulated products, lawmakers can strengthen the foundation of New Mexico’s cannabis market. These steps will ensure that the industry continues to deliver on its promise of economic opportunity, public safety, and social equity foryears.
Indy White is CEO of Albuquerque based Silver Sap Cannabis Co. House Bill 10, pending in the Legislature, would create an enforcement division for the state’s Cannabis Control Division