New Mexico Passes Bill to Strengthen Cannabis Regulation and Safety

New Mexico lawmakers have approved a bill that aims to provide safer industry practices and protect consumers in the state’s cannabis market. The bill, known as HB 2, the Cannabis Regulation Act, updates and clarifies the rules and penalties for the production and sale of cannabis in New Mexico.

New Mexico legalized recreational cannabis in 2021, after Gov. Michelle Lujan Grisham signed the Cannabis Regulation Act, which allowed adults 21 and older to possess, cultivate, and purchase cannabis from licensed retailers. The act also created the Cannabis Control Division (CCD), a new agency within the Regulation and Licensing Department, to oversee and regulate the cannabis industry.

However, the act faced some legal and logistical challenges, as some cannabis businesses and consumers violated the state’s laws and regulations, and some illegal and unlicensed cannabis operations emerged in the state. The CCD also faced some difficulties in enforcing and implementing the act, due to the lack of resources and authority.

To address these issues, lawmakers introduced a new bill, HB 2, in the 2023 legislative session, which sought to amend and improve the original act. The bill was sponsored by Rep. Chandler Farnsworth, who said the bill was necessary to ensure the safety and quality of the cannabis products sold in New Mexico, and to prevent the diversion and abuse of cannabis in the state.

The Main Provisions of the Cannabis Regulation Act

The bill, HB 2, passed the legislature on February 19, 2023, and was sent to Gov. Lujan Grisham for her signature. The bill contains several provisions that aim to strengthen the regulation and safety of the cannabis industry, such as:

• It gives the CCD more power and resources to inspect, investigate, and sanction cannabis businesses that violate the state’s laws and regulations, and to seize and destroy illegal and unlicensed cannabis products.
• It increases the criminal penalties for the illegal production and sale of cannabis, and for the trafficking and smuggling of cannabis across state lines, and makes them felonies instead of misdemeanors.
• It requires cannabis businesses to comply with the state’s labeling and packaging requirements, and to ensure that their products do not appeal to children or contain harmful substances.
• It requires cannabis businesses to obtain a federal and state background check, and to disclose their ownership and financial information, before applying for a license from the CCD.
• It establishes a cannabis advisory committee, composed of representatives from various sectors and stakeholders, to advise and assist the CCD in developing and reviewing the rules and regulations for the cannabis industry.

The Benefits and Impacts of the Cannabis Regulation Act

The bill, HB 2, is expected to bring several benefits and impacts to the state and the public, such as:

• It will protect the health and well-being of the consumers, by ensuring that the cannabis products sold in New Mexico are safe, tested, and accurately labeled, and that the cannabis businesses operate in a responsible and ethical manner.
• It will prevent the access and exposure of cannabis to minors, by limiting the availability and variety of the cannabis products, and by enforcing the age verification and identification requirements for the customers.
• It will generate revenue and jobs for the state, by creating a registration and fee system for the cannabis businesses, and by supporting the local and legal cannabis industry.
• It will align with the federal regulations and standards, by following the guidelines and recommendations of the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) regarding cannabis products.

The bill, HB 2, is expected to take effect on July 1, 2023, and to apply to all existing and new cannabis businesses in the state. The bill’s sponsor, Rep. Farnsworth, said he hopes the bill will improve and stabilize the cannabis market in New Mexico, and that he is open to feedback and amendments in the future.