Hemp CBD Across State Lines: New Mexico

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new mexico hemp

The
Agriculture
Improvement
Act
of
2018
(“2018
Farm
Bill
”)
legalized
hemp
by
removing
the
crop
and
its
derivatives
from
the
definition
of
marijuana
under
the
Controlled
Substances
Act
(“CSA”)
and
by
providing
a
detailed
framework
for
the
cultivation
of
hemp.
The
2018
Farm
Bill
gives
the
US
Department
of
Agriculture
(“USDA”)
regulatory
authority
over
hemp
cultivation
at
the
federal
level.
In
turn,
states
have
the
option
to
maintain
primary
regulatory
authority
over
the
crop
cultivated
within
their
borders
by
submitting
a
plan
to
the
USDA.

This
federal
and
state
interplay
has
resulted
in
many
legislative
and
regulatory
changes
at
the
state
level.
Indeed,
most
states
have
introduced
(and
adopted)
bills
that
would
authorize
the
commercial
production
of
hemp
within
their
borders.
A
smaller
but
growing
number
of
states
also
regulate
the
sale
of
products
derived
from
hemp.

In
light
of
these
legislative
changes,
we
are
presenting
a
50-state
series
analyzing
how
each
jurisdiction
treats
hemp-derived
cannabidiol
(“Hemp
CBD”).
Today
we
head
to
New
Mexico.

In
2017,
New
Mexico
enacted
Senate
Bill
6,
which
established
an
industrial
hemp
program.
The
bill
tasked
the
New
Mexico
Department
of
Agriculture
(“NMDA”)
with
overseeing
the
production
of
the
crop.

Two
years
later,
state
lawmakers
passed

House
Bill
581
,
codified,
in
part,
at
N.M.S.A.
§
76-24,
which
provides
a
regulatory
framework
for
the
manufacture
of
Hemp
CBD
products,
also
known
as
“hemp
finished
products.”
A
“hemp
finished
product”
is
“a
hemp
product
that
is
intended
for
retail
sale
and
containing
hemp
or
hemp
extracts
that
includes
food,
food
additives
and
herbs
for
human
use,
including
consumption,
that
has
a
THC
content
of
not
more
than
three-tenths
percent.”
Unlike
industrial
hemp,
hemp
finished
products
are
regulated
by
the
New
Mexico
Environment
Department
(“NMED”).

Following
the
enactment
of
House
Bill
581,
the
NMED
began
the
rulemaking
process
and
issued
the
first
set
of

proposed
rules

(“Emergency
Rules”),
which
are
scheduled
to
remain
in
effect
through
January
31,
2020.
On
December
2,
2019,
the
agency
held
a
meeting
for
public
comments
to
discuss
the

proposed
final
rules
,
but
these
rules
won’t
be
adopted
for
at
least
a
few
more
weeks

at
least
not
until
the
Emergency
Rules
expire.

Both
the
Emergency
Rules
and
proposed
final
rules
require
state
extractors,
processors,
manufacturers
and
wholesalers
to
secure
a
permit
from
the
NMED
and
meet
certain
manufacturing
requirements
to
operate
a
hemp
facility
where
hemp
finished
products
intended
“for
human
ingestion,
absorption,
or
smokable
products”
are
produced.

Note,
however,
that
the
proposed
final
rules
intend
to
remove
“food,
food
additives
and
herbs”
from
the
definition
of
hemp
finished
product.”
This
suggests
that
the
NMED
wants
to
align
its
rules
with
the
Food
and
Drug
Administration’s
policy
on
the
sale
and
marketing
of
these
products.

But
for
the
time
being,
the
manufacture,
sale
and
marketing
of
food
products
seems
allowed. Pursuant
to
House
Bill
581
and
the
Emergency
Rules,
products
intended
for
human
consumption
by
eating
or
drinking
are
subject
to
the
provisions
of
the
Food
Service
Sanitation
Act
and
the
New
Mexico
Food
Act
(“NMFA”)
but
are
not
deemed
adulterated.
These
products
must
also
meet
applicable
labeling
requirement
in
the
NMFA
and
21
C.F.R.
101

et
seq.

(food
labeling).

The
sale
and
marketing
of
smokables
and
cosmetics
is
not
expressly
authorized
nor
restricted
but
the
Emergency
Rules
and
proposed
final
rules
mandate
that
these
products
meet
applicable
federal
labeling
requirements.

In
addition
to
meeting
federal
labeling
requirements,
all
categories
of
products
must
meet
certain
labeling
and
marketing
requirements,
including
but
not
limited
to:

  1. Clearly
    identity
    on
    the
    front
    display
    panel:

    1. CBD
      content
      in
      the
      package,
      labeled
      in
      milligram;
      and
    2. Total
      THC
      content
      in
      the
      package,
      labeled
      in
      milligrams.
  2. Unless
    otherwise
    approved,
    statements
    representing
    or
    inferring
    a
    hemp
    finished
    product
    contains
    no
    THC
    are
    prohibited.
  3. Hemp
    facilities
    shall
    design,
    maintain
    and
    use
    a
    coding
    system
    that
    will
    identify
    the
    date
    and
    place
    of
    manufacture
    of
    each
    hemp
    product
    that
    shall
    be
    clearly
    visible
    on
    the
    product
    label
    or
    securely
    affixed
    to
    the
    body
    of
    the
    container.
  4. No
    more
    than
    0.3%
    Total
    THC
    concentration
    and
    meet
    other
    specific
    testing
    requirements.
  5. Contain
    no
    health,
    medical
    or
    benefit
    claims
    on
    the
    label.

Therefore,
for
the
time
being,
New
Mexico
seems
rather
friendly
toward
the
manufacture,
sale
and
marketing
of
Hemp-CBD
products.
This
could
always
change
once
the
proposed
final
rules
go
into
effect.

For
previous
coverage
in
this
series,
check
out
the
links
below:

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