Committee advances bill to remove hemp-derived synthetic cannabinoids from open market

The House Judiciary Committee on a do-pass recommendation advanced House Bill 346 on a vote of the committee, moving a proposal to prohibit the in-state sale and manufacture of certain hemp-derived synthetic and semi-synthetic cannabinoids, including products commonly called delta-8 and delta-10.

The bill’s sponsor, Representative Romero, told the committee the measure “closes a loophole” that has left hemp-derived psychoactive cannabinoids unregulated and available to people of any age. She said the proposal would limit applicability to federally qualified health centers and “federally qualified health center look-alikes” and remove other reporting and entity requirements from an earlier, broader draft.

Supporters told the committee that the products are unregulated, often not tested for contaminants and are widely available to youth. Scott Scanlon, a registered lobbyist for Schwoz, said the product is “unsafe” and urged the committee to back the bill. Barry Dungan, who operates a long-standing cannabis testing lab in New Mexico, testified that many retail products labeled as delta variants are actually cannabis products and that current market testing does not address contaminants beyond THC.

Opponents, including Matthew Munoz, a registered lobbyist for Heart of Hemp, warned the bill would force the state’s only affected hemp manufacturer to close and would drive consumers to out-of-state or illicit sources. Munoz said the bill “does nothing to protect the children” because it would not stop online sales. Upton Ethelbaugh said the proposal would “destroy a responsible local industry” while failing to stop cross-border or online purchases.

Representatives asked whether the derivatives are typically synthesized from CBD and how enforcement would be carried out. Kevin Graham, general counsel for the Regulation and Licensing Department, and other agency witnesses told the committee that the cannabis regulatory and testing frameworks focused on delta-9 THC are not designed to detect or evaluate many of the synthetics now appearing in the market. The sponsor said the Environment Improvement Board (EIB) would carry out rulemaking for the Environment Department under the bill and that immediate compliance and impoundment of consumable products would be available as enforcement tools.

Public commenters described a range of perspectives: consumers who said the products provided therapeutic benefits, hemp and industrial businesses warning the bill is overbroad, and cannabis-industry representatives and testing labs urging prohibition on safety grounds. Committee discussion also addressed tribal and interstate implications; an expert witness noted the existing Hemp Manufacturing Act allows memoranda of understanding with tribal partners and that Colorado manufacturers currently supply many Delta-8 products available in New Mexico.

The committee recorded a do-pass motion on the commerce committee substitute for House Bill 346. The motion was made by Speaker Martinez and seconded by Vice Chair Romero. In roll-call votes, members recorded a majority in favor and the committee issued a do-pass recommendation.

The bill text would: ban the in-state manufacture and sale of certain synthetic or semi-synthetic hemp-derived cannabinoids; transfer or clarify rulemaking authority to the EIB for environment-related rules; and provide enforcement provisions including compliance orders, impoundment of consumables, and petty-misdemeanor penalties where applicable. The sponsor included an emergency clause intended to limit in-state new market entrants while rules are promulgated.

The committee’s action sends the bill to the next step in the legislative process with a committee recommendation to pass.