New Mexico becomes the third state this year to approve recreational marijuana legalization

On April 12, New Mexico Gov. Michelle Lujan Grisham (D) signed House Bill 2 (HB 2) to legalize recreational marijuana. 

HB 2 made New Mexico the third state to approve recreational marijuana legalization in the last two weeks. New York Gov. Andrew Cuomo (D) signed a marijuana legalization bill on March 31, and, on April 7, the Virginia General Assembly approved Gov. Ralph Northam’s (D) amended legalization proposal.

HB 2 allows the possession of up to two ounces of marijuana, 16 grams of concentrated marijuana, and 800 milligrams of edible cannabis. It allows each person to grow up to six mature and six immature marijuana plants, with a limit of 12 mature plants per household. Local governments will be allowed to pass laws regulating certain commercial activity and density. 

Marijuana sales will be taxed at 12% through July 1, 2025. After 2025, the tax will increase by one percentage point annually until it reaches 18% in 2030. One-third of revenue will go to the city in which the sale occurred, one-third to the county, and the other third will be distributed by future legislation.

Provisions of HB 2 without specified timelines, such as legalization of possession and use, will go into effect 90 days after the legislative session adjourns, estimated to be around July 1. The bill also establishes the Cannabis Control Division to regulate and license commercial marijuana activity. The division must establish a date to begin legal marijuana sales starting no later than April 1, 2022.

Another bill, Senate Bill 2, provided for the expungement of certain marijuana-related convictions for activities made legal by HB 2.

New Mexico was the fifth state to approve legalized recreational marijuana through legislative action rather than a voter-approved ballot measure. Including New Mexico, 17 states and D.C. have enacted marijuana legalization. The first nine states to legalize recreational marijuana did so through ballot initiatives. An additional 13 states have decriminalized recreational marijuana usage.

South Dakota voters approved a recreational marijuana legalization initiative in 2020, but it was ruled unconstitutional. Proponents said they would appeal the ruling to the state supreme court.

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