The House Commerce and Economic Development Committee unanimously approved a bill Monday that would give the state Regulation and Licensing Department the ability to add law enforcement capabilities, so it can tackle the state’s illicit cannabis industry. RLD itself championed the legislation.
House Bill 10, known as RLD Cannabis Enforcement, would allow the department to add about a half-dozen “peace officers,” according to the House substitute of the bill. Those officers, referred to by the department as agents, would have the ability to put on hold, seize and destroy products suspected of being unlawful. They would also have the “power to arrest and enforce the law,” said bill sponsor Rep. Doreen Gallegos, D-Las Cruces.
The bill, a legislative priority of Gov. Michelle Lujan Grisham, comes as state regulators battle a flourishing illegal market that has strained business for some licensees.
Todd Stevens, director of the Cannabis Control Division, told legislators illicit activity has also linked itself to some of the state’s thousands of licensed premises, in some cases close to a quarter of those doing business under the guise of legal activity.
“We see about 22-24% that have some sort of criminal element in them, whether it’s (an) illegal product, mislabeled or adulterated product,” Stevens said.
That prompted a response from Rep. Linda Serrato, D-Santa Fe, who called those figures “horrifying.”
“Horrible for our business community, horrible for our families and for people that are just trying to use a product that they thought was safe,” Serrato said. “I think that (this bill) really shows the urgency of this.”
The new enforcement bureau would consist of six enforcement agents and one bureau chief, with support costs expected to total $1.3 million annually beginning in fiscal year 2026, according to a legislative analysis of the bill. A special request for agent vehicles would also require $465,000.
Juan Massey, deputy director of the Organized Crime Commission, spoke in approval of HB10 on Monday, saying that based on the organization’s “involvement in operations against illicit cannabis … there is high exposure of the industry to infiltration by transnational organized crime.”
Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, acknowledged the “tenuousness between law enforcement and the cannabis industry,” especially in past years with cannabis’ “legacy unregulated form.” But the bill, he said, has the power to push the industry forward and give it more legitimacy.
“If our industry ever wants to be accepted and if we ever want to finally remove the stigma from cannabis, we have to do so in the light,” Lewinger said.
The legislative analysis noted the addition of law enforcement capabilities could double the number of enforcement actions — in which RLD’s Cannabis Control Division doles out fines to businesses and, in some instances, revokes licenses. In fiscal year 2024, the CCD administered 15 violations.
The agents, under the legislation, would also be able to enforce their duties either announced or unannounced.
Rep. Cristina Parajón, D-Albuquerque, asked how RLD identifies suspected illicit cannabis items.
“We’re able to identify products that are improperly labeled, that might have symbols from other states where they’re legal, (or) if they don’t have certain labeling,” Stevens responded. He noted the state’s seed-to-sale system, BioTrack, also helps with tracking illegal activity.