The bill amends the Cannabis Regulation Act in New Mexico to strengthen the regulatory framework governing cannabis activities. It introduces several key provisions, including the requirement for state and national criminal history checks for all controlling persons of cannabis license applicants, ensuring that applicants must sign their applications. The bill also establishes new definitions relevant to the cannabis industry, such as "applicant," "cannabis consumption area," "cannabis courier," and "cannabis establishment," which aim to clarify the roles and responsibilities of stakeholders. Additionally, the Cannabis Control Division is mandated to create rules and standards that align with industry practices, focusing on licensure qualifications, security requirements, product labeling, and advertising.

Moreover, the bill emphasizes promoting diversity and inclusion within the cannabis industry, particularly for communities disproportionately affected by past cannabis prohibitions. It requires the division to collect and publish demographic data on cannabis establishment applicants and employees, and it establishes a "cannabis regulatory advisory committee" to guide rule development. The division is also tasked with monitoring cannabis supply and demand, enforcing compliance with the Cannabis Regulation Act, and ensuring that applicants demonstrate legal access to necessary water resources for cannabis production. New licensing conditions include the submission of plans for energy and water reduction, reinforcing environmental protections within the industry.

Statutes affected:
introduced version: 26-2C-2, 26-2C-3, 26-2C-3.1, 26-2C-7
CE substitute: 26-2C-2, 26-2C-3, 26-2C-3.1, 26-2C-7