New Mexico House passes bipartisan cannabis regulation bill

Organ Mountain News report

SANTA FE - The New Mexico House of Representatives has passed a bipartisan bill aimed at enhancing oversight and enforcement within the state’s recreational cannabis industry. House Bill 10 was approved Friday in a 68-1 vote and now moves to the Senate for consideration.

The legislation would create an enforcement bureau within the Cannabis Control Division at the Regulation and Licensing Department. The bureau would have the authority to investigate potential criminal violations, conduct lawful searches of cannabis facilities, confiscate illegal products, obtain legal orders for product destruction, and arrest individuals violating state cannabis laws.

“This legislation strengthens enforcement of our existing regulations to better protect New Mexicans in our cannabis industry,” said Rep. Doreen Gallegos, D-Las Cruces, the bill’s lead sponsor and chair of the House Commerce and Economic Development Committee. “We want to weed out bad actors in the industry so that the hardworking New Mexicans who are playing by the rules can thrive.”

House Speaker Javier Martínez, D-Albuquerque, said the bill is intended to support the integrity of the state’s cannabis industry.

“New Mexico has been a national leader in establishing a successful recreational cannabis industry that prioritizes local producers and reflects our values,” Martínez said. “We are making sure that the rules and regulations we set are being followed so that this growing industry can continue to benefit New Mexicans.”

Background on New Mexico’s cannabis industry

New Mexico legalized recreational cannabis in April 2021 through the Cannabis Regulation Act, which allows adults 21 and older to purchase, possess and grow cannabis for personal use. Retail sales began in April 2022, and the industry has since generated significant tax revenue for the state.

The law established the Cannabis Control Division within the Regulation and Licensing Department to oversee licensing, compliance and enforcement. The division regulates all aspects of cannabis production and sales, including retail dispensaries, manufacturing, testing and microbusinesses.

As the industry has grown, concerns have emerged regarding unlicensed operations, regulatory loopholes and illegal sales. Proponents of House Bill 10 argue that creating an enforcement arm within the division will provide the necessary tools to address these challenges and ensure compliance with state law.

The bill is co-sponsored by House Minority Leader Gail Armstrong, R-Magdalena, and Reps. Marian Matthews, D-Albuquerque; Art De La Cruz, D-Albuquerque; D. Wonda Johnson, D-Church Rock; Joseph Sanchez, D-Alcalde; Cristina Parajón, D-Albuquerque; and Josh Hernandez, R-Rio Rancho. Sen. Linda Trujillo, D-Santa Fe, is also a sponsor.

House Bill 10 now moves to the Senate for further debate.