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An Act Relating To Agriculture; Providing For Licensing The Growing, Selling And Processing Of Industrial Hemp; Establishing Fees; Providing Penalties; Making An Appropriation.

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MOD SB 094

Legislative URL:
SB 094 on
Emergency Clause:
SPREF [3] SCONC/SJC/SFC-SCONC [5] DNP-CS/w/o rec-SJC [15] DNP-CS/DP-SFC [22] DP/a - fl/a- PASSED/S (33-8) [26] HAWC/HJC/HAFC-HAWC [33] HAFC ref w/drn- HAWC/HJC-HAWC- DP-HJC [44] DP [46] PASSED/H (54-12) VETO.

Related Legislators

Bill Sponsor:

Related Documents

SCONC Committee Report
SCONC Committee Substitute
SJC Committee Report
SJC Committee Substitute
SFC Committee Report
Senate Floor Amendment 1
Final Senate Vote
HAWC Committee Report
HJC Committee Report
Final House Vote
Fiscal Impact Report
Final Version
Governor's Message

SB 94 provides for licensing the growing, selling and processing of industrial hemp, which the bill identifies as a suitable crop for New Mexico, the production of which will contribute to the future

viability of New Mexico agriculture and provide farmers an opportunity to sell their products to a marketplace with a reasonable rate of return for their labor and capital investments.


Industrial hemp is touted as a food crop, a fiber crop, and a fuel crop, which is fast growing and drought-tolerant, making it suitable for the arid southwest, and whose production can play a useful agronomic role as part of a crop rotation system.


The bill would require the New Mexico Department of Agriculture to monitor the initial phase of research and development necessary to ensure a viable and legal industrial hemp industry in the state; and ensure the participation by and inclusion of individual farmers, agricultural cooperatives and businesses in the rulemaking process.


A person or business planning to grow and sell industrial hemp seed fiber shall obtain a grower’s license by submitting an application to the Department of Agriculture including the name and address of the applicant; the location and legal description of the land to be used; any other information required for completion of a nationwide criminal background check; and a nonrefundable application or renewal fee of no more than $150.


Growers are required to maintain records showing the origin and quantity of seed purchased and

planted; the amount of industrial hemp harvested and sold; and buyers and recipients of the industrial

hemp plants, fiber and seed.


The Department of Agriculture is required to help to ensure availability of seed, and to maintain an authorized list of certified seed sources for industrial hemp; certify industrial hemp seed obtained from

other sources; maintain a list of growers and processors. The department may:

  • collaborate with individual farmers, agricultural cooperatives or businesses to establish an industrial hemp seed bank and provide seed for a fee that does not exceed ten percent more than the cost of the seed to growers upon request;
  • enter into joint powers agreements with an Indian nation, tribe or pueblo to share information, to provide technical assistance and to facilitate the production of industrial hemp on tribal land; and
  • revoke or suspend a license of a grower if there is substantial evidence of violations of the provisions of the Industrial Hemp Farming Act or rules adopted pursuant to that act.


The department shall impose fines subsequent to the implementation of the Industrial Hemp Farming Act.

Fees collected pursuant to this section are appropriated to the New Mexico Department of Agriculture to carry out the provisions of the Industrial Hemp Farming Act.


The Department of Public Safety is required to conduct background checks on applicants; inspect growing fields and processing facilities upon verifiable evidence that a designated industrial hemp field is unlicensed and is in violation of the Industrial Hemp Farming Act; train law enforcement officers to identify industrial hemp; inform the Department of Agriculture of any criminal offenses regarding the growing or processing of industrial hemp; and may enter into joint powers agreements with an Indian nation, tribe or pueblo to share information, to provide technical assistance and to generally cooperate with the Indian nation, tribe or pueblo to facilitate the production of industrial


A person who fraudulently obtains a license pursuant to the Industrial Hemp Farming Act or violates the provisions of the license is guilty of a fourth degree felony.


The Controlled Substances Act is amended to provide that “marijuana” does not include any variety of the species sativa of the genus Cannabis that produces not more than three-tenths of one percent of delta-9-tetrahydrocannabinol per weighted unit of flowering tops and leaves and has a delta-9-

tetrahydrocannabinol concentration of not more than one percent on a dry weight basis.


A benefit of this bill might be the creation of an important new agricultural industry that is particularly well-suited to growing conditions in New Mexico.


The SCONC Substitute:


On February 10th the Senate Conservation Committee adopted a committee substitute..


The SCONC Substitute, instead of providing for licensing of the growing, selling and processing of industrial hemp, provides that the New Mexico Department of Agriculture (NMDA) (or another institution of higher education that is appropriately registered or licensed to do so) may grow industrial hemp of unlimited acreage for research and development purposes, including agricultural, agronomic, ecological, processing, sales and marketing research.


The SCONC substitute further requires that:

  • the NMDA adopt rules regarding the growing of industrial hemp for research and development purposes; and that
  • NMSU establish a New Mexico Industrial Hemp Research and Development Fund, with money in the fund appropriated to the NMDA to conduct programs related to industrial hemp research and development.


The substitute also amends the Controlled Substances Act to specify that the enumeration of marijuana

as a Schedule I controlled substance does not apply to research and development of industrial hemp.


The SJC Substitute


On February 24 the Senate Judiciary Committee adopted a committee substitute that adds some clarifying language but makes no substantive changes to the SCONC Sub.


Although, the substitute is not as strong a bill as the original in terms of establishing industrial hemp as a legitimate NM crop, the bill might provide some benefits when compared with current law in that it potentially (depending on actual funding) moves the cause of industrial hemp a step forward.


SFC Amendment


On February 26th the Senate Finance Committee amended the SJC Substitute to provide that money in the New Mexico Industrial Hemp Research and Development Fund, instead of being appropriated to the NMDA will be subject to appropriation by the Legislature.


Senate Floor Amendment


On March 2nd SB 94SSA was amended on the Senate floor. The Senate floor amendments do not affect the substance of the bill.