NM
New Mexico House Bill HB346

New Mexico 2025 Regular Session

New Mexico House Bill HB346 Compare Versions

Only one version of the bill is available at this time.
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2828 HOUSE BILL 346
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3030 TH LEGISLATURE
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4242 FIRST SESSION
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4545 2025
4646 INTRODUCED BY
4747 Andrea Romero and Derrick J. Lente
4848 AN ACT
4949 RELATING TO HEMP; PROVIDING REGULATORY AUTHORITY OVER HEMP
5050 FINISHED PRODUCTS AT RETAIL AND SEMI-SYNTHETIC AND SYNTHETIC
5151 CANNABINOIDS; BANNING THE RECEIPT, POSSESSION, ADVERTISING,
5252 MARKETING OR SALE OF SEMI-SYNTHETIC AND SYNTHETIC CANNABINOIDS
5353 IN NEW MEXICO; REQUIRING THE ENVIRONMENTAL IMPROVEMENT BOARD TO
5454 ADOPT RULES REGULATING HEMP EXTRACTS AND HEMP FINISHED PRODUCTS
5555 AT RETAIL; PRESCRIBING PENALTIES; DECLARING AN EMERGENCY.
5656 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5757 SECTION 1. Section 76-24-4 NMSA 1978 (being Laws 2019,
5858 Chapter 116, Section 2) is amended to read:
5959 "76-24-4. DEFINITIONS.--As used in the Hemp Manufacturing
6060 Act:
6161 A. "board" means the board of regents of New Mexico
6262 state university;
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9090 B. "breeder" means a person who conducts research
9191 to develop new hemp varieties;
9292 C. "Cannabis sativa L." means the plant Cannabis
9393 sativa L. and any part of the plant, whether growing or not;
9494 D. "consumer" means a person who is a member of the
9595 public, takes possession of a hemp finished product, is not
9696 functioning in the capacity of a hemp manufacturer or hemp
9797 producer and does not offer the hemp finished product for
9898 resale;
9999 [D.] E. "hemp" means the plant Cannabis sativa L.
100100 and any part of that plant, including seeds and all
101101 derivatives, extracts, cannabinoids, isomers, acids, salts and
102102 salts of isomers, whether growing or not, with a THC
103103 concentration of not more than three-tenths percent [on a dry
104104 weight basis;
105105 E. "hemp-derived material" means any material
106106 containing THC in any concentration derived from Cannabis
107107 sativa L. through any activity authorized pursuant to the Hemp
108108 Manufacturing Act] or a concentration allowed by federal law,
109109 whichever is greater, based on dry weight ;
110110 F. "hemp extract" means oil and extracts derived
111111 from hemp, containing THC in any concentration , including
112112 cannabidiol, cannabidiolic acid and other identified and
113113 non-identified compounds;
114114 G. "hemp finished product" means a [hemp ] product
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143143 for human ingestion or inhalation that [is intended for retail
144144 sale and containing] contains hemp or hemp extracts [that
145145 includes food, food additives and herbs for human use,
146146 including consumption that has a THC content of not more than
147147 three-tenths percent] and is intended to be provided to
148148 consumers;
149149 H. "hemp manufacturer" means a person that
150150 extracts, processes or engages in other manufacturing
151151 activities regarding hemp, including manufacturing
152152 [intermediate hemp-derived products ] hemp extract and hemp
153153 finished products;
154154 I. "hemp producer" means a person that cultivates
155155 and harvests hemp and includes a person that cultivates hemp
156156 plants for transfer to other hemp producers;
157157 [J. "intermediate hemp-derived product" means oil
158158 and extracts, including cannabidiol, cannabidiolic acid and
159159 other identified and non-identified compounds derived from
160160 hemp]
161161 J. "hemp retailer" means a person that provides
162162 hemp finished products directly to consumers;
163163 K. "ingestion" means the process of taking food,
164164 drink or another substance into the body by swallowing or
165165 absorbing it;
166166 [K.] L. "manifest" means a form used for
167167 identifying the quantity, composition, origin, routing and
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196196 destination of hemp-derived materials during transportation;
197197 [and]
198198 M. "semi-synthetic cannabinoid" means a substance
199199 that is created by a chemical reaction that converts one
200200 cannabinoid extracted from Cannabis sativa L. directly into a
201201 different cannabinoid; provided that "semi-synthetic
202202 cannabinoid" does not include a cannabinoid produced via
203203 decarboxylation of naturally occurring acidic forms of
204204 cannabinoids, such as tetrahydrocannabinolic acid, into the
205205 corresponding neutral cannabinoid, such as THC, through the use
206206 of heat or light without the use of chemical reagents or
207207 catalysts and that results in no other chemical change;
208208 N. "synthetic cannabinoid" means a cannabinoid-like
209209 compound that was produced by using chemical synthesis,
210210 chemical modification or chemical conversion; provided that
211211 "synthetic cannabinoid" does not include:
212212 (1) a compound produced through the
213213 decarboxylation of naturally occurring cannabinoids from their
214214 acidic forms; or
215215 (2) a semi-synthetic cannabinoid; and
216216 [L.] O. "THC" means delta-9-tetrahydrocannabinol as
217217 measured using a post-decarboxylation method and based on
218218 percentage dry weight."
219219 SECTION 2. Section 76-24-8 NMSA 1978 (being Laws 2019,
220220 Chapter 116, Section 6, as amended) is amended to read:
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249249 "76-24-8. HEMP MANUFACTURERS--PERMITS--RULES--
250250 REQUIREMENTS.--
251251 A. The department of environment shall issue
252252 permits pursuant to rules [issued under ] adopted in accordance
253253 with Subsection C of this section to extract, process or engage
254254 in other manufacturing activities regarding hemp, including
255255 manufacturing [intermediate hemp-derived products ] hemp extract
256256 and hemp finished products.
257257 B. Except as specified in Subsection I of this
258258 section, a person shall not extract, process or engage in other
259259 manufacturing activities regarding hemp, including
260260 manufacturing [intermediate hemp-derived products ] hemp extract
261261 and hemp finished products without a permit issued by the
262262 department of environment or a license issued pursuant to
263263 Subsection C of Section 76-24-10 NMSA 1978.
264264 C. [The department of environment ] Beginning July
265265 1, 2025, the environmental improvement board shall adopt rules
266266 that include:
267267 (1) procedures for the issuance, denial,
268268 renewal, suspension and revocation of a permit issued by the
269269 department of environment to manufacture hemp products,
270270 including permit terms and procedures for appeal of a denial,
271271 suspension or revocation that include notice and opportunity
272272 for a hearing;
273273 (2) qualifications for permitting that include
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302302 health, sanitation, safety and security;
303303 (3) proficiency standards and requirements for
304304 storage, recordkeeping and inspections;
305305 (4) requiring, and providing a process for,
306306 the use or disposal of [hemp-derived material ] hemp extract and
307307 hemp finished products containing THC levels of more than
308308 three-tenths percent; and
309309 (5) fees not to exceed the lesser of one
310310 thousand dollars ($1,000) or the cost of administration of a
311311 permit issued pursuant to this section.
312312 D. Rules adopted prior to July 1, 2025 by the
313313 department of environment shall remain in effect until the
314314 environmental improvement board adopts its rules.
315315 [D.] E. A hemp manufacturer that produces
316316 [intermediate hemp-derived products ] hemp extract or hemp
317317 finished products intended for human consumption by [eating or
318318 drinking] ingestion are subject to the provisions of the Food
319319 Service Sanitation Act and the New Mexico Food Act.
320320 [E.] F. Hemp finished products produced by a hemp
321321 manufacturer holding a permit issued pursuant to this section
322322 shall not be deemed adulterated as that term is used in the
323323 Food Service Sanitation Act and the New Mexico Food Act.
324324 [F.] G. Fees collected pursuant to this section
325325 shall be deposited in the environmental health fund.
326326 [G.] H. A permit issued pursuant to this section
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355355 does not relieve the holder of the permit of the responsibility
356356 to obtain other licenses or permits as required by law.
357357 I. A person engaged in the manufacturing or use of
358358 hemp seed or hemp seed derivatives for products intended for
359359 human food is not subject to the provisions of this section,
360360 but shall be subject to the provisions of the Food Service
361361 Sanitation Act and the New Mexico Food Act.
362362 J. Hemp finished products manufactured pursuant to
363363 this section shall not have a THC concentration of more than
364364 three-tenths percent or a concentration allowed by federal law,
365365 whichever is greater.
366366 K. A hemp manufacturer shall not receive, possess,
367367 offer, advertise, market or sell products containing semi-
368368 synthetic cannabinoids or synthetic cannabinoids. "
369369 SECTION 3. Section 76-24-9 NMSA 1978 (being Laws 2019,
370370 Chapter 116, Section 7) is amended to read:
371371 "76-24-9. TRANSPORTING HEMP, [AND HEMP-DERIVED MATERIALS ]
372372 HEMP EXTRACT OR HEMP FINISHED PRODUCTS --MANIFEST--RULES--
373373 REQUIREMENTS.--
374374 A. A person shall not transport hemp unless during
375375 such transportation the person has in the person's immediate
376376 possession a harvest certificate for that hemp provided by the
377377 licensed grower.
378378 B. A person shall not transport [hemp-derived
379379 materials] hemp extract unless during such transportation the
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408408 person has in the person's immediate possession a manifest
409409 issued by a person licensed pursuant to the Hemp Manufacturing
410410 Act or other applicable law.
411411 C. The department of environment shall establish a
412412 manifest system and any other reasonable means necessary to
413413 ensure that [hemp-derived materials ] hemp extract originating
414414 from a person permitted pursuant to Section [6 of the Hemp
415415 Manufacturing Act are ] 76-24-8 NMSA 1978 is identifiable during
416416 transport and that the [materials are ] hemp extract is
417417 transported only between persons licensed, permitted or
418418 otherwise authorized to possess [hemp-derived materials ] hemp
419419 extract pursuant to the Hemp Manufacturing Act or other
420420 applicable law.
421421 D. [A person that transports hemp-derived materials
422422 or food additive hemp finished products intended for human
423423 consumption by eating or drinking ] Except for a person who
424424 transports hemp finished products for personal use, the
425425 transportation of hemp extract or hemp finished products
426426 intended for human ingestion shall be subject to the provisions
427427 of the Food Service Sanitation Act and the New Mexico Food Act.
428428 E. Transporting hemp [or hemp-derived material ]
429429 without a harvest certificate shall constitute a petty
430430 misdemeanor, punishable by a fine of up to five hundred dollars
431431 ($500).
432432 F. Product in excess of eight ounces that has the
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461461 appearance of hemp and is in the possession of a person
462462 suspected of violating the provisions of Subsection E of this
463463 section may be seized by a law enforcement agency until such
464464 time as the agency is able to identify the product, in
465465 cooperation with the department of environment or the New
466466 Mexico department of agriculture, but for no longer than five
467467 days.
468468 G. As used in this section, "harvest certificate"
469469 means a certificate, license, permit or other document pursuant
470470 to rules adopted under the Hemp Manufacturing Act for use
471471 during transportation of hemp [or hemp-derived material ]
472472 whether in the possession of a person or electronically
473473 verified by a law enforcement agency."
474474 SECTION 4. Section 76-24-10 NMSA 1978 (being Laws 2019,
475475 Chapter 116, Section 8) is amended to read:
476476 "76-24-10. INDIAN NATIONS, TRIBES AND PUEBLOS--NO STATE
477477 REGULATION--COOPERATIVE OR JOINT POWERS AGREEMENTS--RECOGNITION
478478 OF TRIBALLY ISSUED LICENSES.--
479479 A. The state acknowledges that federally recognized
480480 Indian nations, tribes and pueblos located wholly or partially
481481 within New Mexico may, pursuant to Section 10113 of the federal
482482 Agriculture Improvement Act of 2018, and as a matter of their
483483 inherent tribal sovereignty, develop their own plans for the
484484 regulation of the production of hemp on their own tribal lands,
485485 and that those plans shall be developed in compliance with the
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514514 federal Agriculture Improvement Act of 2018.
515515 B. The New Mexico department of agriculture and the
516516 department of environment may enter into cooperative agreements
517517 or joint powers agreements with federally recognized Indian
518518 nations, tribes and pueblos located wholly or partially within
519519 New Mexico that seek the state's assistance in developing hemp
520520 production plans that are acceptable to the director of the New
521521 Mexico department of agriculture and the department of
522522 environment, or in the regulation of hemp production on tribal
523523 lands, or in the testing of hemp plants for THC, or the
524524 transportation of hemp or [hemp-derived material ] hemp extract;
525525 provided that no such agreement shall purport to give the state
526526 any jurisdiction over any such activities or material on tribal
527527 lands.
528528 C. A cooperative agreement or joint powers
529529 agreement may include provisions recognizing a tribally issued
530530 license that authorizes manufacturing on tribal lands,
531531 including the extraction, processing or engaging in other
532532 manufacturing activities regarding hemp, including
533533 manufacturing [intermediate hemp-derived products ] hemp extract
534534 and hemp finished products under Section [6 of the Hemp
535535 Manufacturing Act] 76-24-8 NMSA 1978."
536536 SECTION 5. A new section of the Hemp Manufacturing Act is
537537 enacted to read:
538538 "[NEW MATERIAL] HEMP RETAILERS--RULES--REQUIREMENTS.--
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567567 A. Beginning July 1, 2025, the environmental
568568 improvement board shall adopt rules for hemp retailers that
569569 include:
570570 (1) requirements for hemp products received,
571571 possessed, offered, advertised, marketed or sold;
572572 (2) labeling requirements;
573573 (3) facility registration;
574574 (4) purchasing, storage and recordkeeping
575575 requirements;
576576 (5) inspection and enforcement by the
577577 department of environment; and
578578 (6) procedures for appeal that include a
579579 notice of opportunity for a hearing in response to enforcement
580580 actions taken by the department of environment.
581581 B. Rules adopted prior to July 1, 2025 by the
582582 department of environment shall remain in effect until the
583583 environmental improvement board adopts its rules.
584584 C. Hemp retailers shall not receive, possess,
585585 offer, advertise, market or sell hemp finished products that
586586 have a THC concentration of more than three-tenths percent or a
587587 concentration allowed by federal law, whichever is greater, or
588588 hemp finished products containing semi-synthetic cannabinoids
589589 or synthetic cannabinoids.
590590 D. A person shall not act as a hemp retailer
591591 without meeting the requirements of this section and rules
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620620 adopted in accordance with this section."
621621 SECTION 6. A new section of the Hemp Manufacturing Act is
622622 enacted to read:
623623 "[NEW MATERIAL] PENALTY.--
624624 A. A person who violates a provision of the Hemp
625625 Manufacturing Act or a rule of the department of environment or
626626 the environmental improvement board is guilty of a petty
627627 misdemeanor and shall be sentenced as provided in Section
628628 31-19-1 NMSA 1978.
629629 B. In addition, whenever on the basis of any
630630 information the department of environment determines that a
631631 person has violated, is violating or threatens to violate any
632632 provision of Section 76-24-8 or 76-24-9 NMSA 1978 or Section 5
633633 of this 2025 act or rules or permit conditions adopted in
634634 accordance with those sections, the department may:
635635 (1) issue a compliance order that states with
636636 reasonable specificity the nature of the violation or
637637 threatened violation, that requires compliance immediately or
638638 within a specified time period and that assesses a civil
639639 penalty for any past or current violation, or both; or
640640 (2) commence a civil action in district court
641641 for appropriate relief, including a temporary or permanent
642642 injunction.
643643 C. A compliance order may include suspension or
644644 revocation of a permit issued by the department of environment.
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673673 The department may assess a penalty of not to exceed one
674674 thousand dollars ($1,000) for each violation."
675675 SECTION 7. EMERGENCY.--It is necessary for the public
676676 peace, health and safety that this act take effect immediately.
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