Committee backs substitute for HB294 to tighten cannabis packaging and limit child‑appealing design
Loading...
Summary
A House commerce committee voted to advance a substitute to HB294 that narrows packaging design to reduce appeal to children, provides a 10‑month compliance window and allows limited color for approved or non‑appealing logos; the committee recommended the substitute 8–3.
A House Commerce and Economic Development Committee advanced a substitute to HB294, the Cannabis Product Packaging Regulation Act, after public testimony from industry and safety advocates and a committee debate on enforcement and costs.
The substitute would give the Cannabis Control Division authority to further restrict packaging design, color and materials so products are not unduly appealing to children. The sponsor told the committee the substitute generally restricts packaging to black and white while allowing color for required warning statements and for licensee logos that are either division‑approved or not reasonably appealing to minors. The substitute also adds a 10‑month window for businesses to exhaust existing inventory and makes licensees liable for third‑party‑manufactured products unless the licensee relied in good faith on an assurance of compliance. The sponsor said the aim is to reduce accidental ingestion by children.
Industry speakers opposed the bill as written. Tony Martinez, board chair of the Cannabis Association of New Mexico and co‑owner of Love Veil Organics, told the committee HB294 "is well intentioned, [but] it would impose immediate measurable economic harm on New Mexico businesses" and estimated some manufacturers hold as much as "$300,000 to $400,000 in regulated packaging inventory" that could be wasted. Matt Kennicott, executive director of the Cannabis Association of New Mexico, said the industry is pursuing education and safe‑storage campaigns (safecannabisnm.com) and has begun outreach with Poison Control and lock‑box distribution in dispensaries.
Law‑enforcement testimony supported the measure. Major Manny Gutierrez of the New Mexico State Police urged a do‑pass recommendation, saying clearer, enforceable packaging standards would help officers identify violations and prevent cannabis from reaching young people.
Committee members pressed staff on key terms and impacts. Kevin Graham, general counsel for the Regulation and Licensing Department, told the panel the statute does not define "reasonably appealing" and that rulemaking would likely supply further detail; he said such terms are commonly shaped in rulemaking and reflected historically by standards like "you know it when you see it." The sponsor said the substitute includes a 10‑month compliance period for businesses.
After public comment and questions, the committee adopted the committee substitute without objection and voted on a do‑pass recommendation for the substitute. The roll call recorded eight yes votes and three no votes; the committee advanced HB294 on the committee substitute.
What’s next: HB294 will move from committee with a do‑pass recommendation. The sponsor and staff said the division and stakeholders expect to work through rulemaking to clarify implementation details, including any definition of what is "reasonably appealing" to minors.