New Mexico's Response to Federal Medical Cannabis Rescheduling

Federal Medical Cannabis Rescheduling

New Mexico's Response to Federal Medical Cannabis Rescheduling:  

A Positive Beginning, But More Work Remains

By Patricia M. Monaghan

The recent correspondence from the Office of Governor Michelle

Lujan Grisham, together with Cannabis Control Division (CCD)

Division Counsel Eden Sayers, and CCD Industry Bulletins 25-20 and 26-07, represent an important and constructive step in New Mexico's response to the rapidly evolving federal medical cannabis regulatory landscape. 

As someone who has been involved in New Mexico's medical cannabis movement since 2005, as a patient advocate, attorney, and business advisor, I appreciate that state officials took my concerns seriously, responded thoughtfully, and acknowledged the importance of protecting patients while monitoring federal developments. The willingness of both the Governor's Office and CCD to engage in this dialogue demonstrates that these issues are receiving meaningful attention at the highest levels of state government.

CCD Has Taken Meaningful First Steps

CCD deserves recognition for issuing Industry Bulletins 25-20 and 26-07, which have provided New Mexico licensees with timely information regarding:

•        the federal Executive Order;

•        the DOJ and DEA rescheduling actions;

•        pending federal litigation;

•        DEA administrative proceedings;

•        potential federal registration opportunities; and

•        the continuing applicability of New Mexico law during this transition.

The agency has appropriately reminded licensees that New Mexico's Cannabis Regulation Act and Medical Cannabis Program remain fully in effect while federal implementation continues to develop. That clarity has been valuable to operators attempting to navigate significant legal uncertainty.

The Responses Also Clarify an Important Point

Both responses correctly observe that many of the recommendations contained in my June letter extend beyond CCD's statutory authority. Patient enrollment, patient education, and many Medical Cannabis Program functions reside with the Department of Health. Criminal record expungement is administered by the Administrative Office of the Courts. Certain structural changes would require legislative action. CCD appropriately distinguished between what it can accomplish administratively and what requires action by other governmental entities. That clarification is helpful because it identifies where future policy efforts should be directed.

The Remaining Policy Challenge

Although the agencies' responses are encouraging, I believe New Mexico now faces a broader strategic question. For nearly four years, the state's adult-use market has naturally absorbed a substantial portion of former medical cannabis patients.

Under state law, this market evolution has generally functioned well. Federal rescheduling, however, introduces a new consideration.

Federal recognition of state-authorized medical cannabis activities may increasingly depend upon maintaining clearly identifiable medical supply chains, documented patient participation, and verifiable medical license classifications. If those federal pathways continue to develop, states with shrinking medical programs could discover that patients and businesses no longer possess the documentation necessary to participate fully in federal medical cannabis opportunities. Whether or not that ultimately occurs, it is prudent public policy for New Mexico to evaluate its current Medical Cannabis Program through this new federal lens rather than solely through the perspective that existed before rescheduling.

Areas Worth Continued Discussion

Going forward, I believe New Mexico's policymakers, regulators, industry representatives, and patient advocates should continue discussing several issues, including:

•        whether additional medical-only license designations or operational pathways would better align New Mexico with emerging federal requirements;

•        strategies to strengthen and grow patient enrollment in the Medical Cannabis Program;

•        continued education for licensees regarding federal registration opportunities and obligations;

•        preservation of meaningful distinctions between medical and adult-use cannabis where those distinctions may become legally significant;

•        coordination among CCD, the Department of Health, the Governor's Office, and the Legislature as federal implementation continues to evolve.

None of these issues necessarily require immediate regulatory change. They do, however, warrant continued evaluation as additional federal guidance becomes available.

Looking Ahead

The federal medical cannabis framework remains in its infancy. Litigation is ongoing, DEA administrative proceedings continue, and additional federal guidance will almost certainly follow. New Mexico should continue monitoring developments while remaining prepared to adapt if federal requirements become more clearly defined.

One of New Mexico's greatest strengths has always been its willingness to lead rather than simply react. Our state was an early pioneer in medical cannabis, and I believe we have an opportunity once again to position ourselves at the forefront of thoughtful, patient-centered cannabis policy.

I appreciate the responsiveness of Governor Michelle Lujan Grisham's Office, Division Counsel Eden Sayers, Director Todd Stevens, and the Cannabis Control Division for engaging in this important conversation. I also hope these discussions continue among regulators, legislators, industry participants, and the legal community as we work together to ensure New Mexico remains a national leader in both medical cannabis policy and responsible cannabis regulation.

Patricia M. Monaghan, Esq., MBA 

Monaghan Law Office, PC

CannaLawyerNM.com

Cannabis Business Counsel Since 2009

Medical Cannabis Advocate Since 2005