7.34.4.8 PRODUCER LICENSING; GENERAL PROVISIONS:
A. The department may license two classes of producers:
(1) a qualified patient who shall produce no more than an adequate supply of marijuana for the
qualified patient‟s personal use only; and who may obtain from licensed non-profit producers a total of no more than
sixteen (16) seeds in a three-month period.


(2) The number of licenses issued by the department to non-profit private entities, and the
determination of which non-profit entities shall be licensed, shall be determined at the sole discretion of the
secretary, and those determinations shall be final.

(3) A non-profit private entity whose application for licensure is not approved by the secretary shall
not be entitled to further review.

(4) The secretary may periodically declare either â??openâ? or â??closedâ? application periods when private
entities‟ applications for licensure will or will not be received and considered by the department. That determination
shall be at the sole discretion of the secretary and shall not be subject to review. An application that is submitted by
a private entity outside of the â??openâ? applications period shall not be considered by the department.

C. Factors considered: The secretary shall consider the overall health needs of qualified patients
and the safety of the public in determining the number of licenses to be issued to non-profit private entities and in
determining whether to open or close the applications period for private entities and may further consider:
(1) the sufficiency of the overall supply available to qualified patients statewide;


(5) Patients and medical providers designated as members of the non-profit producer‟s executive
board as required by this rule may not be persons employed by the non-profit producer.



(2) Private non-profit annual fee: A non-profit producer shall additionally submit to the medical
cannabis program as a non-refundable annual fee an amount equivalent to seven percent (7%) of the producer‟s total
annual gross receipts for the prior year. The producer shall submit the annual fee no later than January 31st of each
year.

R. Department testing
(1) The department or its designee may require a non-profit or patient medical cannabis producer to
provide samples of medical cannabis for testing for the presence of mold, bacteria or other contaminants. Producers
may be required to provide samples of medical cannabis to the department or its designee for the purpose of testing.
Producers shall bear the cost of any testing required by the department. Medical cannabis program employees or
their designees may possess those medical cannabis samples for the sole purpose of testing. The department shall
comply with the following testing requirements:
(a) The department shall maintain chain of custody documentation for any medical cannabis
sample taken;
(b) A written receipt shall be given to the LNPP or patient for all testing samples;
(c) All testing samples shall be placed into a sealed container and clearly labeled;
(d) All testing samples shall be tested by DOH or a designated testing facility;
(e) No more than sixteen (16) grams of medical cannabis shall be gathered for testing purposes
from a non-profit medical cannabis producer on any single occasion;
(f) No more than two (2) grams of medical cannabis shall be gathered for testing purposes from
a patient producer on any single occasion.
[7.34.4.8 NMAC - N, 12/15/2008]