Albuquerque Business License Ordinance Puts Pressure On License Holders

Since 2022, New Mexico has greenlit more than 4,000 licenses. Roughly 30% have called Albuquerque home, packing storefronts, grows, and production sites tighter than a white grape white owl. Recently, the state’s Regulation and Licensing Department armed its CCD with a dedicated enforcement wing, aimed at cleaning up bad actors. As it turns out, its not the only department that’s grown teeth.

Green Meanie

For years, one of the least painful parts of renewal was business registration. You’d submit paperwork, maybe pass a fire inspection, cut a check for $75, and move on. It was routine — the last hit before you were back in business. In some cases, the fee has jumped to $285, but the real cost isn’t the money. It’s the enforced requirements: an updated Certificate of Occupancy. Along with everything else,

An updated C of O doesn’t mean a quick walkthrough. It means reopening the entire inspection deck:

  • HVAC

  • Plumbing

  • Electrical

  • Mechanical

  • Fire

  • Structural, if flagged

Each inspection has its own scheduling window. Each carries its own fee. And if any single category fails, the entire process stalls. No Certificate of Occupancy.

And without a valid Certificate of Occupancy, the fallout spreads fast:

  • Business registration can’t be finalized

  • State regulatory approvals get frozen

  • Insurance policies won’t bind

  • Banks start asking uncomfortable questions

  • Accounts can be delayed, restricted, or worse

The hardest part is the timing. Many license holders believe they are at the finish line — renewal submitted, compliance clean, inventory moving. Instead, they’re being sent back to the starting blocks, forced to re-prove that buildings they’ve occupied for years still meet today’s interpretation of code. Buildouts that can cost anywhere from $50-100k easily. Even if you don’t own the building.

Pangolin

For operators new and old; big and small, the sudden pressure change feels jarring.

"In 13 years of doing business, I’ve never dealt with anything like this."

Now? Suddenly, licensees are being pressured to get Certificates of Occupancy—and for one operator, it’s not just about bureaucracy. It’s about who’s actually responsible.

“To me, that’s the fcking owner’s job. It’s their building. They should already have the cert on file for occupancy numbers and safety.”*

But that’s not how it works.

If you're leasing, you’re still on the hook—for your space only, but you’re the one creating a new business use. That means:

  • You hire the architect.

  • You pay the fees.

  • You coordinate the redesign.

“The landlords already did their part. That’s why they’re able to rent the place out. But once you walk in with a retail license, now it’s your responsibility to bring it up to code.”

That includes floor plans, system layouts, ADA door handles, OSHA clearance, the whole damn checklist. And if you don’t have a contractor, architect, and someone who knows how to get the paperwork moving? You’re f*cked.

“If you got the right team, you can build a business in New Mexico. But if you’re just a small business guy like me, it’s almost impossible.”

And it’s not just about resources. It’s about network and power.

“These architects got huge contracts. They’re doing McDonald’s, Arby’s, parking lots. They don’t care about a $5K job for a grow or retail spot. That’s nothing to them.”

License Mandate

All businesses operating within city limits must have a valid Business License per location — no exceptions unless legally exempt. This applies even if you already have a cannabis license from the state.

Zoning & Certificate of Occupancy Now Required

To apply or renew, you must:

  • Be in zoning compliance

  • Provide an updated Certificate of Occupancy (C of O)

  • Undergo possible inspections (HVAC, electrical, fire, plumbing, etc.)

No valid C of O = no renewal = business shut down.

Renewals Are Now Enforced

  • Renew 10 days before expiration

  • Late fees: $10/day

  • Civil fines: $100/day

  • Licenses are non-transferable and location-specific

Fee Increase + Penalty Power

  • Base fee: $35/year (can increase 5% annually)

  • City can withhold permits, block occupancy, or revoke your license for noncompliance

  • City can place a lien on your property for unpaid fees or fines

6ft Rule

In 2020, during the pandemic, Albuquerque waived business registration fees to help businesses stay afloat. It worked — for a while. But now, the bill is due.

According to a 2023 KRQE investigation, over 23,000 businesses owe the city a combined $1 million in back registration fees. A city audit spanning five years found:

  • Countless unregistered businesses

  • Dozens more with outdated or false records

  • And no real enforcement structure to fix it

The Albuquerque Planning Department oversees more than 100,000 business records, with a small team who’s been tasked with chasing ghost businesses, tracking late fees, and now — inspecting everyone for compliance the CCD isn’t .

“We don’t have the manpower to go and inspect,”
Maria Tena, ABQ Planning Dept. Business Registration Supervisor

Between 2018 and 2022, the city pulled in about $3 million total in business registration fees. That’s $700K/year — peanuts compared to the cost of enforcement and the damage from under-regulation. In this lens, its easy to understand how so many gas stations and smoke shops in Albuquerque were able to sell intoxicating hemp products for so long, city inspectors were outnumbered 10,000:1…

Herd Immunity

Again, it’s easy to understand how these enforcement efforts can be perceived as sudden and unfair. The financial stress New Mexico business owners experience is relentless and brutal. But as a consumer you must ask yourself—if a restaurant cannot pass a food inspection, do you want to eat there?

The truth is, this isn’t just about bad operators getting pushed out while taxing the good ones. This is about process catching up to an industry that scaled faster than the infrastructure around it. And for those caught in the middle, it can be a death blow if not prepared. For those seeking clarity, having access to a community of license holders is invaluable when you need gentle guidance.

https://www.cabq.gov/planning/business-registration-information/upcoming-business-license-ordinance#autotoc-item-autotoc-15

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