How to Open a Dispensary in New Mexico

Are you thinking about opening a recreational cannabis dispensary in New Mexico? Congratulations!

The Land of Enchantment legalized medical cannabis in 2007 and adult-use cannabis in 2021 with the signing of the Cannabis Regulation Act. With an open market and no cap on dispensaries, New Mexico’s cannabis market is ripe for growth.

The state’s legal cannabis program is overseen by the Cannabis Control Division (CCD). Before getting into the details of opening a dispensary in New Mexico, start by familiarizing yourself with the regulations.

This guide will outline how to open a dispensary in New Mexico, including information on licensing, financing, real estate, security, staffing, compliance, inventory, and tech stack.

Scroll through for a step-by-step process for opening a dispensary in New Mexico, or use the links on the left to jump directly to your most pressing questions.

Disclaimer: Always consult your lawyer, accountant, realtor, and other trusted consultants to help you navigate the complexities of opening a cannabis dispensary. The information provided herein is designed to illustrate and educate but is not to be construed as legal or financial advice.

Plan your New Mexico cannabis business

The first step for prospective New Mexico cannabis business owners is to get their affairs in order. You’ll need to understand your state’s cannabis laws, create your formal business entity, write a business plan, find a location, and prepare to submit a license application.

Form a business entity

If you haven’t yet formed a business, that’s your first step. Work with a lawyer to ensure everything is correct, but at a minimum, you’ll need to decide whether you’re creating an LLC or corporation and file with the state of New Mexico.

Then, you can get tax ID numbers for the business, open a business bank account at a cannabis-friendly bank or credit union, and decide on your business insurance needs, including general liability insurance, property insurance, workers’ compensation insurance, and product liability insurance.

Note: Every city, county, and state is different. Depending on your business type and location, you may have additional steps for taxes, licenses, or fees.

Write a business plan

Cannabis is a complicated industry, with more compliance and legal considerations than other types of businesses. Having a rock-solid business plan can help.

A good business plan should include:

• The physical location of your dispensary

• Funding plan, or where your startup and ongoing capital will come from

• Sourcing plan for procuring your cannabis products

• Revenue projections

• Estimate the actual number of employees, or who you’ll hire for what roles, and your dispensary org chart

• Diversity and equity plans

• Marketing plan

• Safety and security plan

• Technology plan, including which cannabis point-of-sale and compliance software you’ll use to manage your dispensary

• Any other relevant information you want to document

Secure funding

Now that you have a plan for your new recreational use dispensary, you can start to put together a more clear budget and plan.

A cannabis business can generally expect expenses in these categories:

• Real estate and build-out - consider your initial costs, plus ongoing rent or mortgage. You’ll probably also have renovation expenses to start.

• Licensing/application fees - the cost of getting licensed to run a dispensary in New Mexico. You’ll also need to plan for your renewal fees—$2,500 for retailers yearly.

• Operational costs - your day-to-day business operating expenses, including, but not limited to, utilities, business or professional fees, marketing, etc.

• Hardware, software, security, and other tech - many of these are monthly or annual subscriptions but may include more sizable startup costs.

• Staffing costs - the cost of hiring employees, including salaries, benefits, taxes, etc.

• Inventory costs - or the actual expense of sourcing and purchasing your cannabis products. You’ll need enough stock on your shelves for opening day and beyond.

• Taxes - cannabis businesses are heavily taxed and can’t participate in normal business write-offs like 280E, so plan ahead for your quarterly tax payments.

Do you have a plan for where this money will come from? As a cannabis entrepreneur, you have a few options for funding:

• Self-funding - the easiest option is already having access to capital (acquired through legal means).

• Friends and family - another potentially easy way to meet dispensary capital requirements is through loans or investments from family and/or friends.

• Partners - many cannabis businesses are legally set up as partnerships, where each partner contributes something meaningful. Partners can be silent (they primarily serve as the funder), or active; both are great if they serve your needs. Check eligibility requirements to ensure your partnership meets the criteria for applying for a license.

• Loans - depending on your personal finances, you may be eligible for a personal loan to cover some (or all) of the upfront costs of opening a dispensary. You may also be able to secure a dispensary business loan, but be honest with your lender about how the funds will be used; not all financial institutions will work with cannabis businesses.

• Private funds - whether it’s private equity, angel investors, or venture capital, you may have to look to outside investors to fund your cannabis business. This option will decrease your ownership stake in your company.

• Crowdfunding - another less-popular but potentially viable option is to look to the general population to support your business venture.

• Brokers - cannabis-specific brokerage companies can help you find funding for startup expenses, equipment, and more. FundCanna is one option that serves New Mexico dispensary businesses.

• State funding - Capital may be available from government, corporate, or private entities in New Mexico for cannabis businesses. Do your research to see if any such programs are available.

• Dispensary license fee = $2,500

  • Due when the application is submitted to the division.

• Premises Fee = $1,000

  • Due when the application is submitted to the division.

  • This fee is assessed per unique premises.

• Renewal Fees = $2,500 every year

Note: There are additional fees for adding locations or license types.

Real estate fees = $150,000

• Includes annual rent or mortgage premiums plus upfront design costs.

• The cost will be higher in more expensive cities, like Sante Fe or Tas, or for larger remodels, or cheaper in more affordable areas of the state.

• Plan for higher costs upfront, but over time, rent/mortgage and maintenance/repairs will stabilize.

Employee salaries = $300,000

Your store size and operating procedures will determine how many initial staff members you’ll need, but plan for around six employees to start, including a manager, several budtenders, and an inventory specialist. This figure includes an average of $20/hour, plus overtime, benefits, etc.

Professional fees and services = $50,000

This may decrease in future years, but to start, expect to pay for legal, financial, insurance, and other professional consulting fees to get your business started.

Security, hardware, and software = $50,000

This covers all network, security, hardware, and software for your business, including computers, TVs, printers, scanners, internet, and other software like POS, ecommerce, payments, etc.

After your initial investment, plan for at least $2,000 monthly in recurring software expenses.

Marketing expenses = $100,000

Perhaps the most variable of your costs when opening a cannabis business, this factors in one full-time marketing staff person (or agency costs per year), plus costs for your website, ads, printing, etc. to promote the dispensary.

Cannabis products = $1,500 per pound

Your cost of products for opening day (plus ongoing stocking) will vary greatly based on your store size, number of SKUs, stock on hand, and supplier rates, but plan for an average of $1,500 per pound of cannabis products, including flower, edibles, vape cartridges, tinctures, topicals, lotions, capsules, beverages, prerolls, etc.

GRAND TOTAL = $653,500* (not including cannabis product inventory)

*Disclaimer: This is a rough estimate of the upfront and first-year costs of opening a recreational cannabis dispensary in New Mexico. It's designed to be used for informational and illustrative purposes only, as every market, location, and business will have unique startup costs.

Apply for a New Mexico recreational dispensary license

To open a dispensary in New Mexico, you’ll need a license to be able to possess, sell, and deliver cannabis.

New Mexico doesn’t cap the number of cannabis licenses, and there is no lottery system. This means there is more opportunity for prospective dispensary owners than in many other states. This section will outline how, exactly, to apply for a retailer license in New Mexico.

How to get a dispensary license in New Mexico

The CCD implemented an automated licensing system called NM-PLUS to streamline and simplify the licensing experience. To apply for, amend, or renew a license, applicants and licensees must submit an application online using NM-PLUS. Paper applications for initial licensure, amendments, and renewals are no longer accepted.

The state of New Mexico has created many user guides and checklists to help applicants understand the process. Visit the “Apply for a License” page to understand the first few steps. You can also see the Video Tutorials here.

Let’s now walk through the application process:

1. New applicants must first create an account on NM-PLUS through the “Self Register” link. This will create a username and password for you to access the portal.

2. Once you have your login information, you need to first register your business. You will be prompted to enter all business information, including address, tax ID, contact details, etc. You will then add information about all your controlling persons, including name, title, birth date, race, etc.

3. Collect all the required information and documentation for your application. The CCD provides application checklists to help ensure you provide the correct information and materials when applying for a license. For retail applications, you’ll need to provide:

• A Certificate of Good Standing from the New Mexico Secretary of State.
• A Certificate of Registration from the New Mexico Taxation and Revenue Department (TRD).
• Business structure documentation (varies based on whether you are an LLC, Sole Proprietor, etc.)
• Cannabis application or license adverse action supporting docs, if applicable. This is only for applicants who have previously been denied a license or had disciplinary action taken against their license.
• Controlling person documentation (required for each controlling person of the business)
  • Proof of age.
  • Background check authorization.
  • Felony conviction documents, including explanations for any felony convictions or offenses.
• Business License/zoning approval issued by the local jurisdiction.
• For applicants also pursuing a Courier License, you’ll also need to submit:
• Description, registration, and proof of insurance for all vehicles to be used for transporting cannabis.
• Plan for delivery and security that demonstrates compliance.

4. Log in and submit your application. Follow the Retailer New License Application Walkthrough to ensure all information entered is accurate.

• Select Applications > Apply for a License.
• Read the instructions and click “Select” next to “Cannabis Retailer.”
• Answer the Pre-Screening questions. Based on your selections, more information may be required. When complete, click “Start Application.”
• Read the introduction and select “Next.”
• Verify your business information. This information will be pre-populated. If correct, select “Next.”
• Enter your Employee Information and select “Next.” More information may be required based on your selections.
• The next section is a list of Questions. Answer them all and click “Next.”
• Add your Premise Information. You must add at least one premise to your application, including physical address, business hours, and additional details about delivery, drive-up windows, etc. Upon submitting, you will be required to upload premise-based documents. Use the upload button to attach a copy of your current business license issued by local jurisdiction, which must include zoning approval and a fire inspection report.
• Upload Documents required for your application, including a Certificate of Good Standing, Certificate of Registration, supporting docs for your business structure, etc.
• Complete the Application Attestation and click “Next.”
• On the Payment page, select your mode of payment (credit card, e-check, or cashier's check) and click “Pay and Submit.”
• Enter your billing information and payment details, then review and click “Pay.”
• The confirmation page will notify you of successful payment and application submission.

5. Completed applications are then processed and reviewed. If additional information or documentation is needed, applicants are contacted by staff. Once the division deems an application complete, they have ninety days to issue or deny a license application.

6. Applicants can check the status of applications at any time within the portal.

7. Once applications are approved, applicants receive an email with details about accessing a digital copy of the license.

8. Licensees are required to renew their licenses annually.

Note: If you are applying for more than one license or license type, there may be additional steps or documentation required.

New Mexico social equity program for cannabis businesses

While New Mexico doesn’t have a formal social equity program, The CCD encourages applications from those in underserved communities disproportionately harmed by the enforcement of cannabis prohibition and agricultural producers from historically rural and economically disadvantaged communities, including tribal and acequia.

Additionally, the division offers microbusiness licenses that can be issued as individual cannabis producer licenses or integrated cannabis microbusiness licenses at a discounted rate depending on plant count and number of business functions. This model allows entrepreneurial opportunities for those looking to enter the business on a smaller scale.

Learn more about the microbusiness license.

Design your New Mexico dispensary

Dispensary design isn’t just about where your dispensary is or what it looks like. It’s how your shoppers experience your brand.

Here’s a short list of your considerations for in-store design and layout:

• How customers will move throughout the store

• Whether they will pay at a terminal, handheld device, or kiosk

• Whether there are different pathways for in-store vs. online orders

• How your products will be displayed/showcased

• Your brand elements and design

• Use of entry or waiting room space

• Security concerns about doorways

• Where secure inventory is stored (both on the floor, if applicable, and in a vault)

• Where staff will stand and work

• Breakroom or safe staff area

• Bathrooms

New Mexico also has several specific requirements that may impact how your dispensary looks and functions:

• If you want to sell cannabis flower “deli-style” (or otherwise package any products for consumers on-site), you’ll need a class 1 manufacturing license.

• Retailers shall not provide free cannabis or cannabis product(s) to any person or allow individuals to provide free cannabis products to any person on the licensed premises. Only qualified patients may receive free products if all criteria are met.

• Cannabis products removed from packaging for display shall not be sold or consumed but destroyed.

• Marijuana product samples may be displayed and available for customers to inspect (through sight and smell). However, retail personnel must assist, samples may not be consumed or taken out of the dispensary, and they must be kept in a secure, locked place when not being inspected. Display samples must be handled in a safe and sanitary manner at all times.

• Your CCD License must be displayed in an area that’s within plain sight of the public.

• Retailers shall make reasonable efforts to sell a min. of 10% of monthly cannabis sales to qualified patients.
  

• Any perimeter entry point must have lighting sufficient for observers to see and cameras to record any activity within 20 feet of the gate or entry. A motion detection lighting system may be used to light required areas in low-light conditions.

Also, note that local jurisdiction may not prohibit or limit signage attached to or located on licensed premises that identify the premises as a cannabis establishment.

Create a safe and secure New Mexico dispensary

Just like many states, New Mexico’s regulatory agency has strict security requirements for licensed dispensaries.

All phases where cannabis or cannabis products are cultivated, stored or held, weighed, packaged, manufactured, disposed, or wasted, all point-of-sale areas, and any room or area storing a digital video surveillance system storage device shall take place in a designated limited-access area. Cannabis and cannabis products in limited-access areas must not be visible from a public place without the use of binoculars, aircraft, or other optical aids. For purposes of this rule, cannabis or cannabis products are not visible if they cannot be reasonably identified.

Licensees must comply with the security requirements to ensure that licensed premises and limited-access areas, including a vault, are secure.

Here are the basics:

Security alarm system: Licensees shall install and maintain at each premises an operational security alarm system. The security alarm system must be continuously monitored, whether electronically, by a monitoring company or other means determined to be adequate by the division, and provide an alert to designated employees of the licensee and, if necessary, law enforcement within 5 minutes after notification of an alarm or a security alarm system failure, either by telephone, email, or text message. Monitored sensors are required on all perimeter entry points and perimeter windows, if applicable. The system must include an audible alarm, which must be capable of being disarmed remotely by the designated employee or the security company. Licensees shall maintain and make available to the division upon request a description of the location and operation of the security system, including the location of the central control, a schematic of the security zones, and the name of the security alarm company and monitoring company, if applicable.

Security alarm system maintenance and failure: Licensees shall conduct a monthly maintenance inspection and make all necessary repairs to ensure the proper operation of the security alarm system. In the event of a security alarm system failure due to a loss of electrical power or mechanical malfunction that is expected to exceed an eight-hour period, the licensee shall immediately notify the division within 48 hours following the discovery of the failure and provide alternative security that may include closure of the premises. All security system equipment shall be maintained in a secure location to prevent theft, loss, destruction, and alterations.

Inspection of security alarm system records: Licensees shall maintain documentation for a period of at least 12 months of all maintenance inspections, servicing, alterations, and upgrades performed on the security alarm system. All documentation must be available during a division inspection.

Digital video surveillance: Licensees shall provide and maintain at each premises a digital video surveillance system with a minimum camera resolution of 1280 x 720 pixels. The digital video surveillance system shall further comply with the following requirements:

• The digital video surveillance system shall always be able to record images of the area under surveillance effectively and clearly.

• Each camera shall be permanently mounted and in a fixed location.

• Cameras shall be placed in a location that allows the camera to clearly record activity occurring on the licensed premises where digital video surveillance is required and shall provide clear and certain identification of any person and activities in those areas.

Areas of digital video surveillance: Areas that shall be recorded on the digital video surveillance system include the following:

• Areas where cannabis and cannabis products are cultivated, produced, manufactured, weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises.

• Limited-access areas.

• Areas storing a digital video surveillance-system storage device.

• Entrances and exits to the licensed premises.

• All point of sale (POS) locations to capture sale transactions.

Digital video surveillance recording: Licensees shall comply with the following digital video surveillance recording requirements:

• Cameras shall record continuously 24 hours per day or may be motion activated and at a minimum of 15 frames per second (FPS).

• The physical media or storage device on which digital video surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft.

• Digital video surveillance recordings shall be kept for a minimum of 30 days, and recordings of theft or security incidents shall be kept for a minimum of 12 months.

• Digital video surveillance recordings are subject to inspection by the division and shall be kept in a manner that allows the division to view and obtain copies of the recordings at the licensed premises immediately upon request.

• Upon request, licensees shall send or otherwise provide copies of the recordings to the division within 48 hours.

• Recorded images shall clearly and accurately display the time and date of the recording.

• Time shall be measured in accordance with the United States national institute standards and technology standards.

Failure notification: A digital video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the digital video surveillance system or digital video surveillance system storage device. A digital video surveillance system failure shall be reported to the division immediately and operations shall cease as soon as safely possible until the system is again operational.

Multiple licensees premises: If multiple applicants or licensees seek to operate, or operate, within the same premises, a single security system and digital video surveillance system covering the entire premises may be used by all of the licensees under the following conditions:

• Each applicant or licensee shall include on their premises diagram where the security alarm system and the digital video surveillance cameras are located and where digital video surveillance recordings are stored.

• Each applicant or licensee shall include in their application a certification that all licensees shall be individually responsible for the operation, maintenance, and record-keeping requirements of the security alarm system and that all licensees shall have access to live monitoring of the digital video surveillance system.

• Each applicant or licensee shall include in their application an explanation of how the security alarm system and digital video surveillance system will be shared with the division and authorities, as well as who is responsible for maintaining them, who is authorized to monitor the video footage, and who is responsible for storing any digital video surveillance recordings.

• Each applicant or licensee shall have immediate access to the digital video surveillance recordings to produce them.

• Each applicant or licensee is responsible for any violations of the security system or digital video surveillance requirements.

Locks: Licensees shall ensure that limited-access areas can be securely locked using commercial-grade locks that meet applicable building and fire codes. Licensees shall also use commercial-grade locks that meet applicable building and fire codes on all points of entry and exit to the licensed premises and access points to areas where cannabis and cannabis products are stored.

Limited-access areas: A limited-access area shall only be accessible to a licensee and its authorized employees, authorized vendors, contractors, or other individuals conducting business that requires access to a limited-access area, division staff or authorized designees, state and local law enforcement authorities acting within their lawful jurisdictions, fire departments and emergency medical services acting in the course of their official capacity, or volunteers specifically permitted by the licensed cannabis establishment. Licensees shall ensure:

• Only authorized employees of the licensee and other authorized individuals have access to the limited-access areas of the licensed premises.

• A daily record log, which may be a sign-in and sign-out sheet at the entrance of the premises, of all authorized employees and authorized individuals who are not employees of the licensee who enter the limited-access areas is maintained.

• Limited-access record logs are kept for a minimum of 90 days, or 12 months if a theft or security incident occurs, and must be made available to the division within 48 hours upon request.

• Entrances to all limited-access areas have a solid door or, if appropriate, a gate adequate to block access and a lock meeting the requirements, and unless prohibited by building or fire codes, the entrance shall remain locked when not in use during regular business hours.

• All limited-access areas are identified by the posting of a sign that shall be a minimum of 12" x 12" and which states: "Do Not Enter - Limited Access Area - Access Limited to Authorized Personnel Only" in lettering no smaller than one inch in height.

• Authorized employees of the licensee visibly display an employee identification badge at all times while present within a limited-access area.

• Other authorized individuals obtain a visitor identification badge before entering a limited-access area, the visitor identification badge shall be visibly displayed at all times while the visitor is in any limited-access area, and all visitor identification badges shall be returned to the cannabis establishment on exit.

Licensee identification badge requirement: Licensees shall issue a laminated or plastic-coated identification badge to all agents, officers, or other persons acting for or employed by a licensee, which shall, at a minimum, include:

• The licensee's "doing business as" name and license number

• The individual's first name

• An employee number exclusively assigned to that employee for identification purposes

• A color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

Lighting: Any perimeter entry point of a cannabis establishment must have sufficient lighting for observers to see and cameras to record any activity within 20 feet of the gate or entry. A motion detection lighting system may be used to light required areas in low-light conditions.

Doors and windows: All external entrances to indoor facilities on the licensed premises must be lockable, and all perimeter doors and windows of indoor facilities must be in good condition and lockable.

Security guards: Security guards are permitted but not required. Contract security guards must be licensed under the Private Investigations Act, Section 61-27B-1 et seq., NMSA 1978. Security guards must not consume cannabis or cannabis products or be intoxicated while performing any duties for a licensee. Security guards must comply with all laws related to firearms and other weapons.

Vault: Licensees may store all non-growing cannabis, cannabis products, or cash not being actively handled for purposes of cultivating, packaging, processing, transporting, or selling within an adequately sized vault.

Hire and retain qualified dispensary employees

Now that you’re getting closer to opening day, it’s time to hire and train your dispensary employees. This team is vital to the success of your dispensary.

First, create an all-star dispensary team. What roles you need will depend on your business plan, location, store design, and vision.

You’ll also need to determine what role you, as the dispensary owner, are playing in the day-to-day operations of the store. What additional staff do you need? What is the hierarchy? What benefits can you offer? And do you have the funds to pay your staff appropriately?

All employees must be over the age of twenty-one. And all personnel on the premises must be provided information and training that, at minimum, covers within 30 days of the start of employment:

• Health and safety hazards

• Security procedures

• Record-keeping requirements and prior to engaging in any cannabis retail process:

  • An overview of the process and standard operating procedure(s)

  • Safe work practices applicable to an employee’s job tasks, including appropriate use of any necessary safety or sanitary equipment

  • Cleaning and maintenance requirements

  • Emergency operations, including shutdown

  • Any additional information reasonably related to an employee’s job duties

Be sure to also understand your local laws around hiring and staffing and follow all requirements, both specific to cannabis brands and general hiring/staffing rules. These could include procuring cannabis employment IDs, age requirements, background checks, and mandating attendance of certification training, payroll taxes, at-will parameters, and more.

Understand compliance

At this point, you should understand New Mexico cannabis laws and how to stay compliant.

Dispensaries cannot sell, deliver, or give away cannabis or cannabis products to anyone under the age of twenty-one. Valid identification and proof of age is required.

As a reminder, New Mexico consumers are eligible to buy up to the following at one time:

• 2 ounces of cannabis

• 16 g of concentrate

• 800 mg of edibles

There are no monthly or weekly limits in NM, and possession is unlimited at home as long as all cannabis products are safely stored and not visible from a public space.

Medical patients may buy up to 15 ounces of cannabis in a ninety-day period with no tax. Any additional purchases will be taxed.

The Seed-to-Sale Tracking program chosen by the CCD is BioTrack. We recommend visiting the BioTrack Resources page on the CCD website and attending the recorded webinars to ensure compliance.

Cannabis stores in New Mexico are required to track all adult-use cannabis and cannabis products at every stage of their lifecycle. This includes all transportation to the store up until the point of sale to a customer, delivery to a testing facility, or disposal/destruction.

Licensees must use BioTrack to the fullest extent possible and integrate it with their POS and inventory management software to ensure compliance. Flowhub can meet all the state’s requirements for product intake and control. We’ll talk more about your software vendors in a moment.

Failure to comply with all state regulations is grounds for disciplinary action, including:

• An immediate sanction established by the rule

• A directed plan of correction

• A civil monetary penalty not to exceed ten thousand dollars per violation

• Suspension or revocation of license

The CCD offers an Inspection Checklist was the minimum compliance requirements for retailers.

Source and intake cannabis products

Now’s when things really start getting fun: ordering and receiving your product! New Mexico allows for vertically integrated cannabis businesses, with licensees holding more than one license type. But you may also look to stock products from other local producers, especially microbusinesses.

In New Mexico, you are allowed to sell:

• Cannabis flower and pre-rolls

• Edibles

• Concentrates

• Cartridges

• Tinctures

• Topicals

• Accessories

• Merchandise

• CBD products

As you look for suppliers in New Mexico, consider your product mix and what products they carry. Also, investigate the taste and quality of the products and their prices (including the ability to negotiate bulk discounts). Then, understand their fulfillment process, or how they get products to you and when. Can they handle your expected volume? Finally, look into their testing processes and results and reliability or reputation.

You also need to ensure your suppliers are licensed facilities, as you cannot order supplies from unlicensed distributors, growers, manufacturers, or producers.

Intake and store inventory

Now that your inventory is starting to arrive at your store for opening day, you must “intake” those products correctly.

The CCD requires all licensees to conduct an initial comprehensive inventory of all cannabis products in their possession on the date they first engage in the sale of cannabis to customers. You must report your initial inventory using BioTrack, the state inventory tracking system.

This is your starting inventory, which must align with what products you ordered and received, what your point of sale software inventory says, and what your BioTrack details say. And after opening day, these sources of inventory information must always be in alignment.

Now you can stock your shelves and sell the product. But you’ll also need to develop SOPs, or controls and procedures, for intaking and auditing your inventory to ensure consistency and compliance long-term. The CCD requires you to conduct a monthly inventory audit of all cannabis products.

Cannabis products must be stored in a secure, locked safe, vault, or other approved equipment or location within the licensed premises. A separate secure area shall be designated for temporary storage of cannabis products that require disposal.

Access to storage areas shall be restricted to authorized staff, employees or representatives of the CCD, emergency personnel responding to an emergency, and others authorized by the licensee for the sole purpose of maintaining the facility's operations.

Packaging and label requirements

New Mexico has a few specifications for cannabis product packaging and labels. Here’s what you need to know.

Packaging rules are consistent with industry standards, including that:

• Packages shall be resealable and child-resistant.

• Packages and labels shall not be designed to appeal to children and shall not mimic the brand, design, name, logo, or colorway of a non-cannabis consumer product marketed to children.

• Packages and labels shall not use cartoons, symbols, or images, including images of celebrities or celebrity likenesses, that are commonly used to market to children.

• Packages containing edible cannabis products shall be opaque.

• Packages and labels shall not include information that is false or misleading in any way.

• Packages and labels shall not be an imitation of another cannabis product unless its label bears, in the type of uniform size and prominence, the word “imitation” and, immediately following, the name of the cannabis product imitated.

Labels shall include:

• The net weight of cannabis in the package (for a package containing only cannabis leaf or flower)

• Identification of the licensee or licensees that produced or manufactured the cannabis product.

• The date on which the cannabis was harvested.

• The type of cannabis product and the date on which the cannabis product was manufactured and packaged.

• Potency and pesticide use.

• A list of pharmacologically active ingredients.

• A list of all ingredients and disclosure of nutritional information for the product or cannabis extract disclosed in the same manner required under federal law for nutritional labeling for food for human consumption (for cannabis products containing non-cannabis ingredients).

• A warning if nuts or other known allergens are used in the item or in its manufacture.

• A logo designed by the division that is distinctive in design, color, size, and location such that the logo notifies a reasonable person that the package contains cannabis. Download the logo here.

• A warning of possible adverse effects of consumption and the New Mexico Poison and Drug Information Center phone number.

• An expiration date.

• Other information as required by rules promulgated in accordance with the Cannabis Regulation Act.

The CCD provides Product Labeling Guidance, a Product Labeling Checklist, and QR Code Requirements to ensure your packages and labels comply.

Choose your network, hardware, and cannabis tech stack

Your technology stack is crucial to success as a cannabis business owner. Some are must-haves for compliance, like your security system and cannabis point-of-sale, while others are important to differentiate your store and create a great customer experience.

Here are some of the technology solutions you may want for your dispensary:

• Network

• Hardware

  • Printers (both letter-sized and receipts)

  • TVs

  • Cash drawers

  • Computers (for staff work, like inventory)

  • Tablets or terminals

  • Barcode scanners

• Software

  • POS

  • Ecommerce

  • Compliant payment provider for non-cash transactions

  • Digital menus

  • Kiosks

  • Loyalty programs

  • CRM

  • HR/Payroll tools

  • Accounting software

  • Analytics software

  • Social media management and monitoring

  • Website

  • Mobile app

You don’t need to invest in every possible cannabis-specific technology solution. But be sure to invest in tools to help you achieve your sales goals, stay compliant, and satisfy modern shoppers.

📖 See the complete list of top cannabis companies for your dispensary tech stack.

How to choose a cannabis retail POS system

Your cannabis point-of-sale system is the single most important tool in your stack. It is the central driver for compliance, inventory management, and customer satisfaction.

Every POS option is a little bit different — and not all work in every state — so be sure to do your homework before signing that dotted line.

Here are 10 tips for choosing marijuana retail software.

1. State compliance tracking: Software is so important because it facilitates state reporting (in New Mexico’s case, BioTrack). Look for an API integration that manages this seamlessly to save you time and provide peace of mind.

2. Hardware compatibility: As mentioned above, ensure the software and hardware you choose are compatible. Pick a cloud-based software that doesn’t restrict hardware options so that you don’t incur any additional hardware costs or have to change hardware if you change point-of-sale systems later.

3. Customer support: Your ability to get up and running quickly is important, but getting your questions answered long-term is just as vital. As you look at different software, ask about the level of support you’ll receive.

4. Ease of use: Software that fuels your medical marijuana or adult-use retail stores must be easy and intuitive, and staff need to learn it quickly. Pay attention to how the system functions and whether you think it’ll make your staff more productive.

5. Inventory management: You have requirements for managing inventory, as mentioned earlier. Ensure the POS you choose has all the capabilities you need (and then some).

6. Built-in compliance: Software isn’t just important for compliance related to state reporting (like BioTrack), it also should help you stay compliant with state marijuana laws, such as purchase limits. Make sure the software you choose has built-in safeguards that address your market-specific needs.

7. Discrepancy reporting: Your BioTrack inventory, physical inventory, and point-of-sale inventory must always be aligned. If there is a discrepancy, you need to know about it and how to resolve it. Your software should include built-in tools to help you identify and resolve inventory discrepancies.

8. Activity tracking: In an industry with more loss and theft than others, it’s important to see which employees took what actions and when, such as making a sale, opening a drawer, moving inventory, etc.

9. Open API and integrations: Is the software compatible with other vendors? Integrations are important to consider, especially if you’re interested in online menus, delivery, loyalty programs, or other technology offered by partners.

10. Specialization: Consider the best software for each part of your business. If you have marijuana cultivation facilities, manufacturing facilities, and cannabis retail operations, it’ll be tempting to pick one software for it all. Better visibility is tempting—you can’t deny that—but all software is best at one thing. If you choose one for all, it means you’ll be putting the other two parts of your business at a disadvantage. Instead, look for vendors who integrate seamlessly.

Need help opening your dispensary?

Opening a dispensary in New Mexico is quite an accomplishment. The market is still growing rapidly, and you’ll be in great company!

If you have any remaining questions about opening a dispensary in New Mexico, our team of cannabis retail experts would be happy to support you.

Book a meeting with Flowhub to chat!