In the ever-evolving landscape of New Mexico’s cannabis industry, stakeholders are holding their breath as the legislative session draws to a close.
The state’s billion-dollar cannabis market, still in its nascent stages, stands at a crossroads, with key legislative measures poised to either bolster its growth or stymie its progress.
Duke Rodriguez, the CEO of Ultra Health, a major player in New Mexico’s cannabis sector, encapsulated the industry’s cautious anticipation with a mix of hope and skepticism.
“It’s my understanding that nothing has crossed the finish line,” he remarked, echoing a sentiment that has become all too familiar in the corridors of power.
While the wish list of the cannabis industry may be short, the stakes are undeniably high, with even a single legislative victory having the potential to reshape the playing field.
One such potential victory is the much-discussed cannabis cops bill, which would grant police powers to the state’s Regulation and Licensing Department.
This bill, now on its way to Governor Michelle Lujan Grisham’s desk, is designed to crack down on the persistent illegal market that continues to undermine legitimate operators.
For Ben Lewinger, Executive Director of the New Mexico Cannabis Chamber of Commerce, this session is the most critical since the legalization of recreational cannabis in 2022.
“This could be a game-changer,” he noted, highlighting the industry’s need for robust enforcement to ensure a level playing field.
However, not everyone is convinced.
Matt Kennicott of The Plug, an advocate for small cannabis businesses, expressed a degree of ambivalence when he said, “I am not sure why we even need House Bill 10,” questioning the necessity of additional enforcement powers when existing law enforcement agencies already have jurisdiction over illegal activities.
Meanwhile, the battle over intoxicating hemp products is heating up.
House Bill 346 seeks to regulate synthetic cannabinoids like delta-8 THC, which have slipped through regulatory cracks due to federal loopholes.
These products, often found on gas station shelves, pose a challenge not just to consumer safety but also to the integrity of the cannabis market.
The bill promises to close these gaps, but as the legislative clock ticks, its fate remains uncertain.
Adding another layer of complexity is the proposed halting of a planned cannabis excise tax hike.
Senate Bill 89 aims to stabilize the tax rate at 12%, sparing the industry from an incremental increase that would climax at 18% by 2030.
For many in the industry, this is a critical piece of legislation, yet its path through the Senate remains unclear.
“That’s one that we really needed this year,” lamented Kennicott, reflecting a widespread sentiment among cannabis entrepreneurs who fear the financial burden of escalating taxes.
As the session nears its end, the cannabis industry finds itself at the mercy of legislative winds.
Will the reforms needed to legitimize and fortify the market materialize, or will they remain tantalizingly out of reach?
For now, the only certainty is uncertainty, with the industry’s future hanging in a delicate balance.
