House Bill 10 (HB 10) creates the Enforcement Bureau within the Regulation and Licensing Department (RLD), enacts a new section of the Cannabis Regulation Act providing for enforcement, creates new fourth degree offenses, and appropriates $1,500,000 to the RLD to enforce provisions of the Cannabis Regulation Act.  

 House Bill 10 (HB 10) enacts two new sections of the Regulation and Licensing Department Act.
First, HB 10 enacts the “Enforcement Bureau,” a law enforcement agency within the office of the superintendent of RLD.  RLD can hire enforcement agents (who must be certified law enforcement officers) to enforce laws and rules regulated by RLD and boards and commissions administratively attached to RLD. The bill gives an enforcement agent the same powers as other law enforcement officers.  
The Enforcement Bureau must investigate alleged violations of law and report its findings to the superintendent, division directors and if needed, to boards and commissions. Agents may be required to receive additional training related to cannabis and other occupations within the jurisdiction of RLD. 
Second, HB 10 enacts a new section of the Cannabis Regulation Act (Act) that requires the Cannabis Control Division of RLD (“Division”) and Enforcement Bureau to enforce the Act and carry out inspections.  The Division may respond to tips of wrongdoing or initiate an investigation on its own initiative.  However, the Division must refer possible criminal violations to the Enforcement Bureau.  The Division may also take samples of items suspected to be adulterated, dangerously or fraudulently misbranded or in violation of the Act.  The Division can issue an order that restricts the movement of cannabis products that are suspected of being adulterated or dangerously or fraudulently misbranded. 
The Enforcement Bureau has three main abilities: to take possession of a cannabis product suspected of being illegal, adulterated or misbranded; pursuant to a warrant, to take control of the premises where cannabis is produced, manufactured or stored; and to petition the court for injunctive relief. 
The Division must give adequate notice of an order restricting the movement of cannabis products, and written notice must be given when a product is embargoed or seized – the Division or Enforcement Bureau are not required to care for such products. To “embargo” means to place in a secure location, accessible only by the licensee, the Division and the Enforcement Bureau, that has continuous video monitoring.  When a cannabis product is embargoed, it is tagged and cannot be sold, removed, or disposed of. The bill authorizes the Division to issue a recall for cannabis products embargoed due to adulteration or misbranding. A licensee whose products were embargoed, seized or recalled may request an administrative hearing.  The Division can petition to district court for authorization to destroy, at the licensee’s expense, embargoed or seized cannabis products that were determined to be illegal, adulterated or dangerously or fraudulently misbranded. The bill further requires the New Mexico Department of Agriculture, the Department of Environment and other state agencies to cooperate with the RLD.  
HB 10 creates two fourth degree felony offenses: removing, concealing, destroying or disposing of a cannabis product that was subject to a court order or embargo; and selling, delivering, or transferring a cannabis product subject to recall.
After an administrative hearing, the division may take disciplinary action against a licensee, such as suspending or revoking its license, imposing a penalty of up to $10,000 per violation, or any other action allowed by rule.    
HB 10 appropriates $1,500,000 from the General Fund to RLD for use in fiscal year 2026 to enforce the provisions of the Cannabis Regulation Act.  Unused funds revert to the General Fund. 
HB 10 is effective July 1, 2025.  

 The House Commerce and Economic Development Committee (HCEDC) Substitute for HB 10 makes the following changes to the original bill:
•	Removes the provision that the Enforcement Bureau be considered a law enforcement agency.  
•	Removes the provision that RLD employ enforcement agents to enforce laws and rules within the scope of industries regulated by RLD.  Instead, the enforcement agents are only able to enforce the laws within the scope of the Cannabis Regulation Act.
•	Instead of agents being “certified law enforcement officers”, they must be “peace officers”, and must meet the qualifications for certification pursuant to Section 29-7-6 (qualifications for certification under the Law Enforcement Training Act). 
•	Removes the provisions that enforcement agents have the ability to make a lawful warrantless search and seizure and to arrest. 
•	Adds that the Cannabis Control Division may issue a recall order for cannabis products subject to an order restricting movement (in addition to embargoed products) due to adulteration or dangerous or fraudulent misbranding. 
•	Adds that when a cannabis product is embargoed, the bureau may order the licensee to mark the product to give notice that it is or is suspected of being illegal, adulterated or misbranded. 
•	Clarifies that it is the enforcement bureau, not the Cannabis Control Division, that embargoes or seizes a cannabis product. 
•	Adds that if a court does not order condemnation, the enforcement bureau must have the restrictive tags or markings removed and release or return the products to the owner.  
•	Removes the $1,500,000 appropriation.