Effective August 1, 2025, the New Mexico Environmental Department (NMED) issued emergency amendments to New Mexico's Hemp extraction, production, transportation, warehousing, and testing administrative code. These amendments were created to address concerns with the production and use of synthetic hemp cannabinoids found in finished products. The primary goal of NMED appears to be the protection and safety of hemp industry workers from toxic and harmful chemical used to create synthesized cannabinoids.
These emergency rules, however, do nothing to protect against another stated goal—reducing the risk to consumer of finished hemp products. Importantly, the emergency rules do not apply to imported finished hemp product, or to retailers selling those product within the state. Therefore, these regulations will likely only harm local hemp facilities, while favoring out-of-state operators shipping finished hemp products into New Mexico for retail sale.
Key provisions of the emergency rules
Effective date
The emergency amendment includes an effective date of September 1, 2025 (with some provisions becoming effective 15 days later), but the agency's website and in its "Concise Explanatory Statement" reference an August 1 effective date. If no permanent rule is adopted within 180 days from the effective date of the emergency rule, the emergency rules expires. So, unless permanent rules are in effect, these emergency rules will expire on either January 28th or February 28th of 2026.
The emergency rules clarify the following:
- Emergency rule amendment applies to extraction & manufacturing facilities operating in New Mexico.
- Define semi-synthetic and synthetic cannabinoid.
- Ban the production of all semi-synthetic and synthetic cannabinoids.
- Ban the use of most semi-synthetic and synthetic cannabinoids in hemp products.
- Allows the use of specific non-intoxicating semi-synthetic and synthetic cannabinoids in hemp products.
- Hemp facilities must demonstrate hemp ingredients received are hemp-derived.
- Hemp facilities have until August 15 to fully comply. Since the emergency regulations do not include a definition of "Synthetic cannabinoid" (discussed below) and the effective dates for the official emergency rules is September 1, this deadline will likely mean very little in application.
Semi-synthetic cannabinoid
The emergency rules define "semi-synthetic cannabinoid" to mean a substance that is created by a chemical reaction that converts one cannabinoid extracted from cannabis directly into a different cannabinoid. It does not include cannabinoids produced via decarboxylation of naturally occurring acidic forms of cannabinoids, such as THCa into THC, through the use of heat or light, without the use of chemical reagents or catalysts, and that results in no other chemical change. It should be noted that New Mexico already uses the "total THC" calculation, which accounts for THC and THCa when determining the maximum 0.3% THC concentration.
Missing definition of synthetic cannabinoid
The emergency rules intended to also include a definition for "synthetic cannabinoids", but instead accidentally replicated the "semi-synthetic cannabinoids" definition. As such, the current emergency rules do not include an official definition of "synthetic cannabinoid." (check out NMAC 20.10.2.7 (WW) & (YY))
Hemp facility requirements
Operational compliance
It is now illegal to operate a "hemp facility" in the state of New Mexico that does not meet the requirements of the emergency amendment, in addition to all other current laws and regulations. Hemp facilities include the following hemp facilities: (1) extraction; (2) manufacturing; (3) processing; and (4) warehousing.
Source documentation requirements
Hemp facilities are no longer permitted to receive hemp-derived material or hemp extract unless the hemp facility receives documentation from the company providing such product that it was derived from hemp. Therefore, even if the product tests no greater than 0.3% THC, but comes from a marijuana plant, it is illegal for a New Mexico hemp facility to accept it.
Permitted exceptions
The emergency rules include exceptions for allowing the following semi-synthetic and synthetic cannabinoids as an ingredient in a hemp finished product, as long as they have a purity greater than 98%:
- THCV
- CBC
- CBT
- CBL
- CBE
- CBG
- CBDV
- CBD
- CBN
Critical regulatory gap: the packaged product loophole
A significant flaw in New Mexico's emergency rule framework is that packaged products obtained by non-licensed hemp facilities (i.e. retailers) are not regulated under these new restrictions. In fact, New Mexico does not currently require a permit to sell pre-packaged CBD or other hemp products in the state. This creates a substantial competitive disadvantage for New Mexico hemp operators while simultaneously undermining the stated public health objectives of the emergency rules.
While certain testing and packaging requirements still apply to imported finished hemp products, the emergency regulations create the following market distortions:
New Mexico manufacturers:
- Cannot produce synthetic or semi-synthetic cannabinoids (except the nine permitted exceptions).
- Must comply with strict documentation requirements for hemp sourcing.
- Subject to compliance deadlines and ongoing regulatory oversight.
- Face significant operational restrictions and compliance costs.
Out-of-state manufacturers:
- Can produce synthetic hemp cannabinoids in states without similar restrictions.
- Can ship finished hemp products containing synthetic cannabinoids directly to New Mexico retailers, as long as they comply with federal law and New Mexico testing and packaging requirements.
- Avoid New Mexico's manufacturing restrictions entirely.
Regulatory inconsistency
This framework creates a fundamental inconsistency where New Mexico prohibits the production of semi-synthetic and synthetic cannabinoids within the state but allows the sale of finished products containing those same semi-synthetic and synthetic cannabinoids if manufactured elsewhere. While these emergency rules may protect workers from alleged harm, New Mexico consumers can still access the same products the state deems concerning enough to emergency-regulate. The only practical effect, however, is to disadvantage local manufacturers.
Undermined public health objectives
If synthetic cannabinoids pose sufficient consumer health concerns to warrant emergency regulation, the current framework fails to address those concerns because:
- The same products remain available through interstate commerce.
- Consumer exposure to synthetic cannabinoids continues unabated.
- The regulatory response creates compliance burdens without achieving safety goals.
Conclusion
New Mexico's hemp emergency rules, while seemingly well-intentioned, create a regulatory framework that restricts local manufacturers while allowing the continued sale of finished products containing the same synthetic cannabinoids that prompted the emergency action. There are certainly better ways to protect workers from chemical harm that would be less detrimental to licensed hemp facilities. Additionally, this approach fails to achieve its other stated consumer protection objectives, while creating significant competitive disadvantages for New Mexico businesses.
The exclusion of imported finished hemp products from regulation means that synthetic cannabinoid products can freely enter the New Mexico market from other states as long as they meet federal hemp requirements (0.3% delta-9 THC) and New Mexico's labeling and packaging requirements—effectively nullifying the consumer protection objectives. Until this regulatory gap is closed, the emergency rules will serve more as a barrier to local economic development than as a meaningful tool for protecting consumer safety.
New Mexico Emergency Hemp Rules: The Regulatory Gap And Market Impact
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