HCEDC/HB 10
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AN ACT
RELATING TO LAW ENFORCEMENT; ESTABLISHING THE ENFORCEMENT
BUREAU WITHIN THE REGULATION AND LICENSING DEPARTMENT;
ENACTING A NEW SECTION OF THE CANNABIS REGULATION ACT
PROVIDING FOR ENFORCEMENT; PROVIDING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 9-16-1 NMSA 1978 (being Laws 1983,
Chapter 297, Section 17) is amended to read:
"9-16-1. SHORT TITLE.--Chapter 9, Article 16 NMSA 1978
may be cited as the "Regulation and Licensing Department
Act"."
SECTION 2. A new section of the Regulation and
Licensing Department Act is enacted to read:
"ENFORCEMENT BUREAU--ENFORCEMENT AGENTS--PEACE
OFFICERS.--
A. The "enforcement bureau" is established within
the office of the superintendent and shall be directed by a
bureau chief appointed by the superintendent pursuant to
Section 9-16-8 NMSA 1978 and who shall report to the
superintendent.
B. The department shall employ enforcement agents
to enforce laws and administrative rules within the scope of
the Cannabis Regulation Act.
C. The bureau chief and enforcement agents HCEDC/HB 10
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employed by the department within the enforcement bureau
shall be peace officers and shall have the powers and duties
afforded peace officers. The enforcement agents shall report
to the bureau chief. The superintendent shall be responsible
for final employment decisions for enforcement agents. The
bureau chief and enforcement agents shall meet the
qualifications for certification pursuant to Section 29-7-6
NMSA 1978.
D. The enforcement bureau shall investigate
alleged violations of law and report its findings to the
superintendent and the director of the cannabis control
division of the department."
SECTION 3. A new section of the Cannabis Regulation Act
is enacted to read:
"ENFORCEMENT--DIVISION AND ENFORCEMENT BUREAU--ORDERS
RESTRICTING MOVEMENT OF GOODS--EMBARGO AND RECALL, SEIZURE
AND CONDEMNATION--PROCEDURES--PENALTIES.--
A. The division and the enforcement bureau shall
enforce the provisions of the Cannabis Regulation Act and may
carry out announced and unannounced inspections.
B. The division may:
(1) respond to tips or allegations of
wrongdoing or initiate an investigation on the division's own
initiative of an alleged or suspected violation of the
Cannabis Regulation Act; provided that the division shall HCEDC/HB 10
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refer possible criminal violations to the enforcement bureau
and shall assist that bureau in investigations and
inspections;
(2) in the course of inspections conducted
pursuant to this subsection, for the purpose of laboratory
testing, collect and take custody of samples of items
suspected to contain cannabis products when those items are
suspected of being adulterated, dangerously or fraudulently
misbranded or possessed in violation of the Cannabis
Regulation Act or other laws of the state; and
(3) issue an order restricting the movement
of cannabis products that are or are suspected of being
adulterated or dangerously or fraudulently misbranded.
C. The enforcement bureau may:
(1) embargo or take possession of a cannabis
product reasonably suspected of being an illegal cannabis
product or a cannabis product that is adulterated or so
misbranded as to be dangerous or fraudulent;
(2) take control pursuant to a warrant
issued by a court of competent jurisdiction of the premises
where a cannabis product is produced, manufactured or stored;
and
(3) petition the district court for
injunctive or other equitable relief.
D. The division shall give sufficient notice to HCEDC/HB 10
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the licensee of the division's decision to issue an order
restricting the movement of the licensee's cannabis products.
Such an order shall not be in place for longer than necessary
to complete the division's or the enforcement bureau's
investigation; provided that an order restricting the
movement of misbranded cannabis products that are not
considered dangerous or fraudulent shall last only as long as
it takes the licensee to relabel and repackage the cannabis
products as ordered by the division.
E. The division may issue a recall order for
cannabis products embargoed or subject to an order
restricting movement due to adulteration or dangerous or
fraudulent misbranding.
F. When the enforcement bureau embargoes a
cannabis product, the division shall affix or cause the
licensee to affix to the cannabis product a tag or other
appropriate marking giving notice that the cannabis product
is or is suspected of being an illegal cannabis product or is
adulterated or dangerously or fraudulently misbranded and
that the cannabis product shall not be sold, removed or
otherwise disposed of.
G. When the enforcement bureau embargoes a
cannabis product or seizes a cannabis product or a premises,
the bureau shall give written notice to the licensee of the
grounds for the embargo or seizure. HCEDC/HB 10
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H. Neither the division nor the enforcement bureau
shall be required to care for embargoed or seized cannabis
products.
I. A licensee aggrieved by an embargo, seizure or
recall undertaken pursuant to Subsection B, C or E of this
section may request an administrative hearing within ten
calendar days from the date that the embargo, seizure or
recall was executed. The hearing shall be held before a
hearing officer as provided by rule. The final agency
decision may be appealed pursuant to Section 39-3-1.1 NMSA
1978.
J. When the determination is made that an
embargoed or seized cannabis product is illegal, adulterated
or dangerously or fraudulently misbranded, the division shall
petition the district court for condemnation of the cannabis
product.
K. If the district court orders condemnation, the
department shall destroy the cannabis product at the
licensee's expense. If the district court does not order
condemnation, the enforcement bureau shall have the
restrictive tags or markings removed and the affected
products released or returned to the licensee or other owner
of the products.
L. The New Mexico department of agriculture, the
department of environment and other state agencies with HCEDC/HB 10
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relevant knowledge and expertise shall cooperate with the
division and the enforcement bureau at the regulation and
licensing department's request.
M. A person who intentionally, knowingly or
recklessly:
(1) removes, conceals, destroys or disposes
of a cannabis product subject to an order restricting the
movement or embargo is guilty of a fourth degree felony and
shall be sentenced as provided in Section 31-18-15 NMSA 1978;
and
(2) sells, delivers or transfers a cannabis
product subject to recall to another person is guilty of a
fourth degree felony and shall be sentenced as provided in
Section 31-18-15 NMSA 1978.
N. In addition to the actions provided in this
section, after an administrative hearing pursuant to the
Uniform Licensing Act, the division may take disciplinary
action against a licensee, including:
(1) suspension or revocation of the license;
(2) imposition of an administrative penalty
not to exceed ten thousand dollars ($10,000) per violation;
or
(3) any other disciplinary action allowed
under that act or rule of the division.
O. As used in this section: HCEDC/ HB 10
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(1) "embargo" means to place in a secure
location, accessible only by the licensee, the division and
the enforcement bureau, that has continuous video monitoring;
and
(2) "enforcement bureau" means the
enforcement bureau of the department."
SECTION 4. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.