House Bill 346 (HB 346) provides regulatory authority over hemp-finished (fit for consumption) products and semi-synthetic and synthetic cannabinoids; bans the receipt, possession, advertising, marketing or sale of semi-synthetic and synthetic cannabinoids in New Mexico; requires the Environmental Improvement Board to adopt rules regulating hemp extracts and hemp -finished products; prescribes penalties; and declares an emergency.  

 House Bill 346 (HB 346) amends Section 76-24-4 NMSA 1978 to add a definition of "consumer," meaning a person who is a member of the public, takes possession of a hemp-finished (fit for consumption) product, is not functioning in the capacity of a hemp manufacturer or hemp producer, and does not offer the hemp-finished product for resale. Various hemp-related terms are re-defined, as follows:

"hemp" means the plant Cannabis sativa L. and any part of that plant, including seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, whether growing or not, with a THC concentration of not more than three-tenths percent or a concentration allowed by federal law, whichever is greater, based on dry weight;

“Hemp extract” means oil and extracts derived from hemp, containing THC in any concentration, including cannabidiol, cannabidiolic acid and other identified and non-identified compounds;

“Hemp-finished product” means a product for human ingestion or inhalation that contains hemp or hemp extracts and is intended to be provided to consumers;
The definition of “intermediate hemp-derived product” is removed;

Definitions are added for "hemp retailer," meaning a person who provides hemp-finished products directly to consumers, and "ingestion," meaning the process of taking food, drink or another substance into the body by swallowing or absorbing it; and

Definitions are added for "semi-synthetic cannabinoid," meaning a substance that is created by a chemical reaction that converts one cannabinoid extracted from Cannabis sativa L. directly into a different cannabinoid, and "synthetic cannabinoid," meaning a cannabinoid-like compound that was produced by using chemical synthesis, chemical modification or chemical conversion.

Section 76-24-8 NMSA 1978  is amended to require the Environmental Improvement Board to adopt rules regulating hemp extracts and hemp-finished products. A person engaged in the manufacturing or use of hemp seed or hemp seed derivatives for products intended for human food is not subject to the provisions of this section, but will be subject to the provisions of the Food Service Sanitation Act and the New Mexico Food Act. Hemp-finished products manufactured according to this section may not have a THC concentration of more than three-tenths percent or a concentration allowed by federal law, whichever is greater. A hemp manufacturer may not receive, possess, offer, advertise, market or sell products containing semisynthetic cannabinoids or synthetic cannabinoids.

Section 76-24-9 NMSA 1978 replaces “hemp-derived materials” with “hemp extract” and makes an exception for a person who transports hemp finished products for personal use.

A new section of the Hemp Manufacturing Act is enacted to state that a person who violates a provision of the Hemp Manufacturing Act or a rule of the Department of Environment or the Environmental Improvement Board is guilty of a petty misdemeanor. In addition, whenever a person has violated, is violating or threatens to violate any provision of Section 76-24-8 or 76-24-9 NMSA 1978 or Section 5 of this 2025 act or rules, or permit prohibited conditions, the Department may: (1) issue a compliance order that states the nature of the violation or threatened violation, that requires compliance immediately or within a specified time period, and that assesses a civil penalty for any past or current violation, or both; or (2) commence a civil action in district court for appropriate relief, including a temporary or permanent injunction. A compliance order may include suspension or revocation of a permit issued by the Department of Environment. Penalties are not to exceed one thousand dollars ($1,000) for each violation.

An emergency is declared.
 

 “Hemp” is currently defined as the plant Cannabis sativa L. and any part of that plant, including seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, whether growing or not, with a THC concentration of not more than three-tenths percent on a dry weight basis; "hemp-derived material" means any material containing THC in any concentration derived from Cannabis sativa L. through any activity authorized pursuant to the Hemp Manufacturing Act.

“Hemp extract” means oil derived from hemp, including cannabidiol, cannabidiolic acid and other identified and non-identified compounds.

“Hemp-finished product" means a hemp product that is intended for retail sale that includes food, food additives and herbs for human use, including consumption that has a THC content of not more than three-tenths percent.

A definition of "intermediate hemp-derived product" is included, meaning oil and extracts, including cannabidiol, cannabidiolic acid and other identified and non-identified compounds derived from hemp.

There are no definitions for “hemp retailer” or “ingestion,” “semi-synthetic cannabinoid” or “synthetic cannabinoid.”

There is no current requirement for the Environmental Improvement Board to adopt rules regulating hemp extracts and hemp -finished products, and no related penalties are prescribed. 

No exception is granted regarding transportation for a person who transports hemp finished products for personal use.

The proposed penalties are not prescribed, and an emergency is not declared.
 

 Amended March 19, 2025 in SJC

SJCa/HB 346: The Senate Judiciary Committee amendment to House Bill 346 makes the following changes:

1. On page 7, between lines 16 and 17, insert: "K. Notwithstanding other provisions in the Hemp Manufacturing Act, hemp manufacturers may hold, transport or use as an ingredient hemp-derived materials, including oil, extract, concentrate or other substance, including non-intoxicating synthetic cannabinoids or non-intoxicating semi-synthetic cannabinoids that have a total THC concentration above three-tenths percent, so long as such hemp-derived materials are not for consumer use or retail distribution and will undergo further refinement or processing into a hemp finished product." 

2. Reletter the succeeding subsection accordingly. 

3. On page 7, line 17, strike "receive, possess,". 

4. On page 7, line 18, after "sell", insert "consumer".
 

 Committee Substitute February 28, 2025 in HCEDC

HCEDCcs/HB 346: The House Commerce and Economic Development Committee Substitute for House Bill 346 makes the following changes:

The Department of Environment must adopt rules until July 1, 2025 (rather than “beginning July 1, 2025). Beginning July 1, 2025, the environmental improvement board is to assume rulemaking authority over the Hemp Manufacturing Act.