Gov. Michelle Lujan Grisham signed legislation Wednesday that makes the possession of up to a half-ounce of marijuana a petty misdemeanor.
That would translate into a $50 fine on first offense. The same penalties will apply to possession of drug paraphernalia.
The provisions go into effect July 1.
Possession of large quantities of marijuana can still result in felony charges.
A proposal to legalized recreational marijuana sales and use across New Mexico received House approval but stalled in the state Senate without a floor vote.
Lawmakers also balked at decriminalizing possession of small quantities of other illicit drugs that can result in jail sentences.