HB0294

HOUSE BILL 294

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Doreen Y. Gallegos and Elizabeth "Liz" Stefanics

and Joshua N. Hernandez and Janelle Anyanonu

AN ACT

RELATING TO CANNABIS PRODUCTS; REGULATING THE USE OF COLORS, MATERIALS AND DESIGN ELEMENTS ON PACKAGING AND LABELING OF CANNABIS PRODUCTS THAT ARE SIMILAR TO PRODUCTS SOLD TO MINORS OR THAT COULD BE REASONABLY APPEALING TO MINORS OR THAT ARE COMMONLY ASSOCIATED WITH ENTERTAINMENT MEDIA; PROVIDING THAT THE USE OF ARTIFICIAL COLOR ADDITIVES NOT EXPRESSLY APPROVED BY THE CANNABIS CONTROL DIVISION OF THE REGULATION AND LICENSING DEPARTMENT RENDERS A CANNABIS PRODUCT ADULTERATED; PRESCRIBING A PENALTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 26-2C-2 NMSA 1978 (being Laws 2021 (1st S.S.), Chapter 4, Section 2, as amended) is amended to read:

"26-2C-2. DEFINITIONS.--As used in the Cannabis Regulation Act:

A. "artificial color additive" means a synthetic food dye or other dye, pigment or substance not derived from natural food sources that is added to a cannabis product to impart color;

[A.] B. "cannabis":

(1) means all parts of the plant genus Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than three-tenths percent on a dry weight basis, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or its resin; and

(2) does not include:

(a) the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; or the sterilized seed of the plant that is incapable of germination; or

(b) the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or other product;

[B.] C. "cannabis consumption area" means an area of a licensed premises where cannabis products may be served and consumed;

[C.] D. "cannabis courier" means a person that transports commercial or medical cannabis products to consumers;

[D.] E. "cannabis establishment" means:

(1) a cannabis testing laboratory;

(2) a cannabis manufacturer;

(3) a cannabis producer;

(4) a cannabis retailer;

(5) a cannabis research laboratory;

(6) a vertically integrated cannabis establishment;

(7) a cannabis producer microbusiness;

(8) an integrated cannabis microbusiness; or

(9) a cannabis consumption area;

[E.] F. "cannabis extract":

(1) means a product obtained by separating resins, tetrahydrocannabinols or other substances from cannabis by extraction methods approved by the division; and

(2) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;

[F.] G. "cannabis flowers" means only the flowers of a cannabis plant;

[G.] H. "cannabis manufacturer" means a person that:

(1) manufactures cannabis products;

(2) packages cannabis products for resale; or

(3) purchases, acquires, sells or transports wholesale cannabis products to other cannabis establishments;

[H.] I. "cannabis producer" means a person that:

(1) cultivates cannabis plants;

(2) transports unprocessed cannabis only to other cannabis establishments; or

(3) sells cannabis wholesale;

[I.] J. "cannabis producer microbusiness" means a cannabis producer at a single licensed premises that possesses no more than two hundred total mature cannabis plants at any one time;

[J.] K. "cannabis product" means a product that is or that contains cannabis or cannabis extract, including edible or topical products that may also contain other ingredients;

[K.] L. "cannabis research laboratory" means a facility that produces or possesses cannabis products and all parts of the plant genus Cannabis for the purpose of studying cannabis cultivation, characteristics or uses;

[L.] M. "cannabis retailer" means a person that sells cannabis products to consumers;

[M.] N. "cannabis testing laboratory" means a facility that samples, collects and tests cannabis products and transports cannabis products for the purpose of testing;

O. "cartoon" means any drawing, illustration, image or animation that depicts exaggerated, stylized or anthropomorphic features, including animals, creatures or objects with human characteristics, or any other visual device that is designed in a manner that is reasonably appealing to minors, as determined by the division;

[N.] P. "commercial cannabis activity":

(1) means the cultivation, production, possession, manufacture, storage, testing, researching, packaging and labeling, transportation, couriering, purchase for resale, sale or consignment of cannabis products; and

(2) does not include activities related only to the medical cannabis program or to the personal cultivation or use of cannabis products;

[O.] Q. "consumer" means a person twenty-one years of age or older who legally purchases, acquires, owns, possesses or uses a commercial cannabis product not for resale or a person who holds a medical cannabis program registry identification card issued by the department of health or is a reciprocal participant;

[P.] R. "contaminant" means pesticides and other foreign material, such as hair, insects or other similar adulterants, in harvested cannabis;

[Q.] S. "controlling person":

(1) means a person that controls a financial or voting interest of ten percent or more of, or an officer or board member of, a cannabis establishment; and

(2) does not include a bank or licensed lending institution;

[R.] T. "cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading or trimming of cannabis;

[S.] U. "department" means the regulation and licensing department;

[T.] V. "director" means the director of the division;

[U.] W. "division" means the cannabis control division of the department;

[V.] X. "dry weight basis", when used in the context of regulation of commercial cannabis activity, means a process by which delta-9-tetrahydrocannabinol concentration is measured relative to the aggregate weight of all parts of the plant genus Cannabis, whether growing or not, including the leaves of the plant, the flowers and buds of the plant, the seeds of the plant, the resin of the plant and the stalks of the plant at the point of harvest by a licensee and with no moisture added to the harvested plant;

[W.] Y. "facility" means a building, space or grounds licensed for the production, storage, testing, manufacturing, distribution, sale or consumption of cannabis products;

[X.] Z. "financial consideration" means value that is given or received, directly or indirectly, through sales, barter, trade, fees, charges, dues, contributions or donations;

[Y.] AA. "homegrown" or "homemade" means grown or made for purposes that are not for resale;

[Z.] BB. "illegal cannabis product" means a cannabis product that is:

(1) produced or manufactured outside New Mexico;

(2) produced, manufactured, distributed or sold in New Mexico by a person not licensed to produce, manufacture, distribute or sell the cannabis product; or

(3) produced, manufactured, distributed or sold by a person acting outside the limits of the person's license; provided that "illegal cannabis product" does not include homegrown or homemade cannabis products that comply with the provisions of the Cannabis Regulation Act;

[AA.] CC. "immature cannabis plant" means a cannabis plant that has no observable flowers or buds;

[BB.] DD. "industry standards" means the prevailing customary standards of business practice in the cannabis industry in jurisdictions within the United States;

[CC.] EE. "integrated cannabis microbusiness" means a person that is licensed to conduct one or more of the following:

(1) production of cannabis at a single licensed premises; provided that the person shall not possess more than two hundred total mature cannabis plants at any one time;

(2) manufacture of cannabis products at a single licensed premises;

(3) sales and transportation of cannabis products produced or manufactured by that person or another cannabis producer microbusiness or integrated cannabis microbusiness;

(4) operation of only one retail establishment; and

(5) couriering of cannabis products to consumers;

[DD.] FF. "licensed premises" means a location that includes:

(1) all enclosed public and private areas at the location that are used in the business and includes cannabis consumption areas, offices, kitchens, restrooms and storerooms;

(2) all areas outside of a building that are specifically included in the license;

(3) all areas of a standalone cannabis consumption area, including retail and other areas, whether in enclosed or outside spaces, and including private or members-only clubs where cannabis products are available for sale or consumption; and

(4) with respect to a location that is specifically licensed for the production of cannabis outside of a building, the amount of land that the licensee owns, leases or has a right to occupy that is identified in the application for licensure for cultivation of cannabis; provided that the licensed premises may be decreased but shall not be increased without permission of the division;

[EE.] GG. "local jurisdiction" means a municipality, including a home rule municipality, or county;

[FF.] HH. "manufacture" means to compound, blend, extract, infuse, package and label or otherwise prepare a cannabis product;

[GG.] II. "medical cannabis" means cannabis products used by a qualified patient or reciprocal participant in accordance with the Lynn and Erin Compassionate Use Act;

[HH.] JJ. "medical cannabis program" means the program created pursuant to the Lynn and Erin Compassionate Use Act;

[II.] KK. "medical cannabis registry" means the system by which the department of health approves or denies applications and issues and renews registry identification cards for qualified patients and primary caregivers;

[JJ.] LL. "primary caregiver" means a resident of New Mexico who is at least eighteen years of age and who is responsible for managing the well-being of a qualified patient with respect to the medical use of cannabis pursuant to the Lynn and Erin Compassionate Use Act;

[KK.] MM. "public space" means any place to which the general public has access;

[LL.] NN. "qualified patient" means a resident of New Mexico who holds a registry identification card pursuant to the Lynn and Erin Compassionate Use Act;

[MM.] OO. "reciprocal participant" means a person who is not a resident of New Mexico and who holds proof of enrollment by a governmental regulatory authority to participate in the medical cannabis program of another state of the United States, the District of Columbia or a territory or commonwealth of the United States in which the person resides or a person who holds proof of enrollment by a governmental regulatory authority of a New Mexico Indian nation, tribe or pueblo to participate in its medical cannabis program;

[NN.] PP. "residence" or "household" means a housing unit and includes any place in or around the housing unit that is not a public space and at which an occupant of the housing unit produces, manufactures, keeps or stores homegrown or homemade cannabis products or stores legally purchased cannabis;

[OO.] QQ. "retail establishment" means a location at which cannabis products are sold directly to consumers;

[PP.] RR. "superintendent" means the superintendent of regulation and licensing;

[QQ.] SS. "unprocessed" means unaltered from an original, raw or natural state; and

[RR.] TT. "vertically integrated cannabis establishment" means a person that is authorized to act as one or more of the following:

(1) a cannabis courier;

(2) a cannabis manufacturer;

(3) a cannabis producer; and

(4) a cannabis retailer."

SECTION 2. Section 26-2C-17 NMSA 1978 (being Laws 2021 (1st S.S.), Chapter 4, Section 17, as amended) is amended to read:

"26-2C-17. CANNABIS PRODUCTS--PACKAGING AND LABELING--DIVISION RULEMAKING.--

A. Cannabis or cannabis extract included in a cannabis product that is manufactured in compliance with applicable law is not considered to be an adulterant under state law.

B. The division shall promulgate rules consistent with industry standards for cannabis products that establish [labeling and] packaging and labeling requirements [including that].

C. Packaging requirements shall include that:

(1) packages shall be resealable and child-resistant;

(2) cannabis product packaging shall be limited to the use of black and white, including packaging materials, text, backgrounds, logos, symbols and design elements; provided that color may be used only as required or approved by the division for:

(a) division-mandated warning statements or safety symbols;

(b) a division-approved universal cannabis symbol or other standardized regulatory marks; and

(3) fonts used on cannabis packaging shall be plain, sans-serif and not stylized in a manner that is reasonably appealing to minors;

(4) cannabis product packaging shall not include:

(a) cartoons;

(b) imagery, color schemes or branding elements that mimic or resemble non-cannabis products commonly marketed to minors;

(d) any visual presentation determined by the division to be reasonably appealing to minors;

(5) packaging shall not be shaped or constructed in a manner that imitates or resembles:

(a) candy, snack food or soft drink packaging commonly marketed to minors;

(b) toy containers, novelty items or collectible packaging; or

(6) packages containing edible cannabis products shall be opaque.

[(2) packages and] D. Labels shall:

(1) not be designed to be appealing to a [child] minor and shall not mimic the brand, design, name, logo or colorway of a non-cannabis consumer product marketed to [children] minors;

[(3) packages and labels shall] (2) not use cartoons or symbols or images, including images of celebrities or celebrity likenesses, that are commonly used to market to [children;

(4) packages containing edible cannabis products shall be opaque] minors; and

[(5)] (3) labels shall include:

(a) for a package containing only cannabis leaf or flower, the net weight of cannabis in the package;

(b) identification of the licensee or licensees that produced or manufactured the cannabis product, the date on which the cannabis was harvested, the type of cannabis product and the date on which the cannabis product was manufactured and packaged;

(d) a list of pharmacologically active ingredients;

(e) for cannabis products containing non-cannabis ingredients, a list of all ingredients and a disclosure of nutritional information for the product or cannabis extract disclosed in the same manner required under federal law for nutritional labeling for food for human consumption;

(f) a warning if nuts or other known allergens are used in the item or in its manufacture;

(g) a logo designed by the division that is distinctive in design, color, size and location such that the logo notifies a reasonable person that the package contains cannabis;

(h) a warning of possible adverse effects of consumption and the New Mexico poison and drug information center phone number;

(i) an expiration date; and

(j) other information as required by rules promulgated in accordance with the Cannabis Regulation Act."

SECTION 3. Section 26-2C-18.1 NMSA 1978 (being Laws 2024, Chapter 38, Section 11) is amended to read:

"26-2C-18.1. WHEN CANNABIS PRODUCT DEEMED ADULTERATED.--A cannabis product is deemed to be adulterated if:

A. it bears or contains mold, mildew or other deleterious or poisonous substance that may render it injurious to health;

B. it consists in whole or in part of a diseased, contaminated, filthy, impure or infested ingredient or putrid or decomposed substance or if it is otherwise unfit for consumption;

C. it has been produced, prepared, packed or held under unsanitary conditions so that it may have been contaminated with filth or rendered diseased, unwholesome or injurious to health;

D. its container is composed in whole or in part of a poisonous or deleterious substance that may render the contents injurious to health;

E. a valuable constituent has been, in whole or in part, omitted or abstracted from the cannabis product;

F. a substance has been substituted in whole or in part that is contrary to the ingredient list on the package unless a notification of substitution is adhered to the packaging;

G. damage or inferiority has been concealed in any manner;

H. a substance has been added so as to increase the cannabis product's bulk or weight, reduce its quality or strength or make it appear better or of greater value than it is; [or]

I. it contains an artificial color additive that has not been expressly approved by the division; or

[I.] J. the cannabis product is a confectionery, it contains alcohol or other non-nutritive article or substance, [except harmless coloring] flavoring, natural gum, pectin or resinous glaze not in excess of four-tenths of one percent; provided that a confectionary may include less than two and one-fourth percent by weight of alcohol derived solely from the use of flavoring extracts or [to] any chewing gum by reason of its containing harmless non-nutritive masticatory substances."

SECTION 4. A new section of the Cannabis Regulation Act is enacted to read:

"[NEW MATERIAL] ARTIFICIAL COLOR ADDITIVES AND PACKAGING AND LABELING MATERIALS--VIOLATIONS--PENALTY.--It is a violation of the Cannabis Regulation Act for a licensee to manufacture, distribute, sell or offer for sale any cannabis product that is adulterated by the use of artificial color additives or that does not comply with packaging and labeling requirements. Violations may be punishable as provided in Section 26-2C-8 NMSA 1978. A licensee is liable for offering or selling noncompliant cannabis products regardless of whether the product was manufactured by a third party."

SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2027.

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