Medical marijuana producer sues New Mexico over infused product rules

What’s the right revenue per square foot? What’s a realistic business outlook for cultivators? Get realistic market forecasts, state-by-state insights and benchmarks. Get the 2023 Factbook.

New Mexico’s largest medical cannabis producer is suing the state health department over regulations that govern edibles, salves, lotions and other products infused with marijuana.

Bernalillo-based Ultra Health contends the agency doesn’t have the authority to license legal cannabis manufacturers, which take the raw material from producers and turn it into infused products.

The manufacturer category resulted from rules adopted by the state in 2015.

The state’s 35 nonprofit medical marijuana companies, including Ultra Health, are vertically integrated, with retail, cultivation and processing under one license.

The lawsuit charges that producers such as Ultra Health must pay licensing fees of up to $90,000 a year, while manufacturers of cannabis-infused products pay only $1,000 a year.

Lawyers for Ultra Health say the goal is to come up with a fair fee structure.

Health department officials declined to comment on the lawsuit.

Associated Press and Marijuana Business Daily