NM Political Report writes…
As New Mexico’s Regulation and Licensing Department works toward finalizing rules for non-medical cannabis sales, some unfinished business remains when it comes to the state’s medical cannabis program.
A state district judge last week ordered RLD, the New Mexico Department of Health and the governor’s office to either change their policy for medical cannabis patient purchase amounts or present a compelling argument for not doing so.
“Respondents’ purchase limitations violate equal protection principles because they will subject New Mexicans with debilitating medical conditions who are dependent on medical cannabis to lower purchase limitations than persons who purchase cannabis from the recreational (and taxed) market,” read the writ of mandamus signed by Second Judicial District Judge Benjamin Chavez. “Respondents’ unlawful rules also attempt to impose an illegal tax on any medical cannabis purchases in violation of the Cannabis Regulation Act.”
The Cannabis Regulation Act, which went into effect on June 29 and is the framework for sales expected to start next spring, allows purchasers to buy up to two ounces of cannabis at a time. But the state’s Department of Health, which is RLD’s medical cannabis counterpart, has maintained that a DOH policy limiting medical cannabis purchases to roughly eight ounces in a 90-day period takes precedence over the new law.
For years, New Mexico cannabis patients have been limited to 230 “units” in a rolling 90-day period. DOH rules define a unit as one gram of dried cannabis “flower” or 200 milligrams of cannabis extract or concentrate. Under the new law, however, non-medical cannabis purchases are limited to two ounces for each transaction. The new law also doesn’t limit how many purchases a person can make in a day. So, theoretically, a person could make eight trips to a cannabis dispensary in one day and purchase twice as much as a medical cannabis patient can in a three-month period.
That disparity is presumably what brought medical cannabis patient Jason Barker to file a petition in state district court. Financially backed by medical cannabis producer Ultra Health and represented by Jacob Candelaria, who is also a New Mexico state senator, Barker asked Chavez to order the state departments to allow medical cannabis patients the same purchase amounts as non-patients. The argument, which Chavez ultimately agreed with, was that the state is effectively discriminating against medical cannabis patients by limiting their purchases to a fraction of what will be allowed when non-medical cannabis sales begin next year.
Chavez ruled in favor of Barker, but also gave DOH, RLD and the governor’s office until Sept. 20 to respond to the court ruling.
Earlier this year, a group of medical cannabis producers asked for clarification from the state on medical cannabis purchase limits. The department heads jointly issued a letter in response, saying that until adult-use sales begin, medical cannabis patients are limited to the 230 units in a 90-day period. But even after non-medical sales start, if medical cannabis patients want to purchase more than what’s currently allowed, they will have to purchase it as recreational-use cannabis, the letter stated. Recreational-use sales are required by law to start no later than April 1, 2022 and the only real difference between medical-use and non medical-use cannabis is taxes. Non medical-use cannabis is now tax-free, whereas gross receipts taxes and a new cannabis excise tax will be applied to non medical-use cannabis.
It’s unclear how either department will respond to the order and a spokesperson for DOH said the department will not comment on pending litigation.
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