Latest news with #RegulationandLicensingDepartment
Yahoo
19-03-2025
- Business
- Yahoo
Cannabis industry still hoping key legislation gets to Gov. Lujan Grisham's desk
Members of New Mexico's state-regulated cannabis industry have long raised concerns about the rollout of sales for recreational use: the volume of dispensary licenses, taxes and the lack of enforcement of a still-thriving illegal market. Duke Rodriguez, CEO of New Mexico cannabis giant Ultra Health, said it was possible key legislation addressing some of these issues could land on the governor's desk before the session ends this week, but he was not particularly optimistic. "It's my understanding that nothing has crossed the finish line," Rodriguez said earlier this week. "So, while our wish list was very short, if one or three of these things cross, at best, it might be a pleasant surprise." Rodriguez has seen at least one wish granted: The Senate on Tuesday approved a bill that would give police powers to the state Regulation and Licensing Department in an attempt to crack down on the illicit market; it now heads to Gov. Michelle Lujan Grisham for her signature. The police powers bill was one of two proposed cannabis-related measures that have gained traction as the end of the session comes into focus. Another deals with intoxicating hemp. Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, believes this is the most significant session for the industry since 2022, when the state legalized recreational cannabis. The so-called "cannabis cops" bill and the legislation dealing with delta-8 THC have the potential to reshape the state's billion-dollar cannabis industry. It remains unclear, however, whether a bill that would do away with a planned escalation in cannabis excise taxes, championed by members of the industry, is going to become wrapped into the Legislature's tax package for the session. "I'm mixed on the session overall. I think there were some missed opportunities," said Matt Kennicott, who leads a group called The Plug, which supports small cannabis businesses in New Mexico. Enforcement bureau House Bill 10, which is co-sponsored by House Speaker Javier Martínez, D-Albuquerque, and already has Lujan Grisham's backing, has been one of the closely watched cannabis bills. It would allow the Regulation and Licensing Department, which houses the Cannabis Control Division, to employ certified law enforcement agents in a new enforcement bureau, primarily to investigate potential violations of the state's cannabis law. The agents would be granted the same powers as other law enforcement officers in New Mexico. Under HB 10, the enforcement bureau would have the ability to seize illegal weed and make arrests. The Regulation and Licensing Department currently has no authority to conduct criminal investigations; that is up to law enforcement. The measure passed the Senate 25-1 on Tuesday after receiving similarly wide support in the House. The Cannabis Chamber of Commerce, with a membership of about 200 license-holders, strongly supports the bill. Retailers say the underground market continues to have a negative impact on New Mexico's licensed manufacturers and distributors. Kennicott said The Plug is neutral on the measure, noting law enforcement already has the authority to regulate the illegal trade. "I would argue that that authority and that ability is still there," Kennicott said. "I am not sure why we even need House Bill 10. But what I'm hoping is that, if it does pass, implementation goes smoothly and, as an industry, we're able to have some input on the implementation of that legislation." Rodriguez said HB 10 was the lowest of his priorities. Intoxicating hemp The largely unregulated market for hemp products containing the psychoactive chemical THC has fueled concerns in New Mexico and across the nation. Products such as gummies and other edibles containing the often synthetic hemp-derived THC are sold legally in gas stations and smoke shops in many states, including New Mexico, thanks to a federal farm bill loophole. House Bill 346 — introduced by Andrea Romero, D-Santa Fe, and Derrick Lente, D-Sandia Pueblo — would impose a prohibition on synthetic cannabinoids and semisynthetic cannabinoids by banning possession, marketing and sales of delta-8, delta-10 and THC-O acetate in New Mexico. Intoxicating hemp derivatives known as delta-8 THC and delta-10 THC have become popular, Politico reported this year, with some hemp companies finding it is possible to get enough delta-9 THC in a beverage or edible product to have psychoactive effects without breaking the guidelines of a 2018 law. HB 346 passed the House on a 54-7 vote March 13 and is awaiting a hearing in the Senate Judiciary Committee. It was unclear Tuesday afternoon what bills would be heard in the committee the rest of the week, leaving uncertainty about whether HB 346 would pass the full Senate before the session comes to a close. "With just a couple days left, each day that goes by I'm less optimistic," Lewinger said. "But it does solve the issue of having intoxicating hemp-derived THC substance readily available … [without] the same testing protocols we have in the cannabis industry." HB 346 amends the Hemp Manufacturing Act to give the state Environment Department authority over hemp products. Currently, the Environment Department only regulates products manufactured in New Mexico. Environment Department spokesperson Drew Goretzka wrote in an email the agency supports the legislation. "We look forward to ensuring that finished hemp products are appropriately labeled to ensure consumers know what they are putting into their bodies," Goretzka said. "And that synthetic cannabinoid products, made using harmful chemicals and other ingredients, are not available in New Mexico." Romero said Tuesday she was not sure when the bill would get to the Senate floor but said she is "still hopeful." "Psychoactive substances that are being cultivated in the state that are at all associated with THC need to be regulated by the Cannabis Control Division. Right now, for this hemp derivative, this THC derivative that is semisynthetic or synthetic, we don't have any reliable testing to understand what's in it," Romero said. "It's completely unregulated." Halting tax hike Senate Bill 89, sponsored by Sen. Katy Duhigg, D-Albuquerque, would eliminate statutory increases in the cannabis excise tax rate, instead maintaining the current 12% cannabis excise tax "in perpetuity," according to a Legislative Finance Committee analysis. Current law provides for the cannabis excise tax to increase by 1% per year in fiscal years 2026 through 2030 for a total final rate of 18%. Duhigg's bill has not gotten a hearing during the session, but Lewinger and others were holding out hope the legislation would be rolled into a tax package. By reducing the cannabis tax rate in future years, revenues to the state general fund would be reduced by $2.7 million to $13.4 million a year, the Legislative Finance Committee notes in an analysis of Duhigg's bill. Under current law, total cannabis excise tax revenues to the general fund are estimated to climb from $32.7 million in fiscal year 2024 to $41.1 million in the fiscal year 2029, the analysis states. "I do still think that that could still go somewhere. It's just rebranded," Lewinger said. Rodriguez was less optimistic. "I'm highly doubtful any kind of cannabis tax relief is forthcoming," he said. Kennicott, who owns a company in Socorro called High Maintenance, said, "That's one that we really needed this year. And I'm not sure it's actually going to make it into the Senate's final tax package."
Yahoo
21-02-2025
- Business
- Yahoo
House approves bill giving police powers to state agency for cannabis enforcement
Feb. 20—SANTA FE — Three years after New Mexico began allowing the legal sale of cannabis, a bill giving a state agency authority to clamp down on illicit products is halfway to Gov. Michelle Lujan Grisham's desk. The House voted 68-1 on Thursday to approve the measure, with Rep. Randall Pettigrew, R-Lovington, casting the lone "no" vote. House Speaker Javier Martínez, D-Albuquerque, described the bill as a necessary fix, saying backers of cannabis legalization realized such changes to state law would have to be made in the years following the initial roll-out. The bill, House Bill 10, would create a new law enforcement bureau within the state Regulation and Licensing Department that would have the ability to seize and destroy unlawful cannabis products. That could apply to products from licensed retailers or illegal growing operations alike. During a recent committee hearing, Todd Stevens, the director of the state's Cannabis Control Division, said 22-24% of the state's current licensees have some sort of "criminal element," such as illegal or mislabeled cannabis products. In addition, a recent report from the state's Organized Crime Commission found cannabis remains a major source of income for organized crime syndicates from Mexico and China. Specifically, some criminal groups exploit regulatory loopholes in the state's cannabis industry and might be using commercial dispensaries as fronts to launder millions of dollars to help fund their operations, according to the commission's report. House Minority Leader Gail Armstrong, R-Magdalena, pointed out during Thursday's debate that the Regulation and Licensing Department had stepped forward to request the additional authority from lawmakers. "This is an actual thing that we need in the state of New Mexico," Armstrong said. If the bill is signed into law by Lujan Grisham, the new law enforcement bureau would consist of six agents and one bureau chief, according to a legislative analysis. The bill now advances to the Senate with just under 30 days remaining in this year's 60-day legislative session.
Yahoo
29-01-2025
- Politics
- Yahoo
Bill would let New Mexico counties temporarily halt issuing new cannabis producer licenses
NEW MEXICO (KRQE) – After federal agents shut down a major cannabis grow in Torrance County, there's new attention on a proposal that could make it easier for counties to put a pause on new cannabis producer licenses. 'We've been at a loss as to what to do and how to move forward. How many more can Torrance County handle and should they handle?' said Torrance County Commissioner Kevin McCall. Story continues below News Insiders: New Mexico's U.S. Attorney Sheds Light On 'Secretive' Job Crime: FBI investigation into former Navajo Nation presidential candidate Events: Tent Rocks National Monument to reopen after seasonal closure Just how many cannabis grows can a county handle is at the heart of a new bill lawmakers are weighing in Santa Fe nearly a week after the feds shut down an alleged illegal operation near Estancia. Current state law doesn't let New Mexico's local governments deny permits for cannabis growing operations. TorranceCounty said it has more than 35 cannabis producers there alone. 'At some point, we as a county want to say enough is enough, we've got enough,' said McCall. The county said the grows have taken a toll on county roads, cause light pollution, and create an odor. Some constituents have also raised concerns about water usage. Now, in a bipartisan effort, Sen. Liz Stefanics (D- San Miguel, Santa Fe, Torrance & Valencia), Rep. Stefani Lord (R- Bernalillo & Torrance), and Rep. Anita Gonzales (D- San Miguel & Torrance) are introducing SB 152 which would give county governments a say in pausing cannabis grower licenses. 'This bill would allow counties to petition the Regulation and Licensing Department for a two-year moratorium on cannabis grow permits in their counties,' said Sen. Stefanics. If a county files a petition, the bill allows the State Regulation and Licensing Department to have the final say on if the pause on new licenses would take effect. 'It's about letting the counties get in control of what they are being asked to let happen in their counties,' said Sen. Stefanics. Reacting to the bill, prominent cannabis operator Duke Rodriguez, said the real discussion should be around the number of retail licenses the state allows. New Mexico Association of Counties told KRQE that Torrance County isn't the only county that has stated the need to control cannabis producer licensing in their area better. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
