HOUSE COMMERCE AND ECONOMIC DEVELOPMENT

COMMITTEE SUBSTITUTE FOR

HOUSE BILL 10

57th legislature - STATE OF NEW MEXICO - first session, 2025

 

 

 

 

 

 

 

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.--[Sections 17 through 29 of this act] 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:

     "[NEW MATERIAL] 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 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:

     "[NEW MATERIAL] 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 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 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.

          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 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:

                (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.

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