Top NM cannabis regulator on rule changes: Substantive changes require a new hearing

There are less than two months left before the New Mexico Regulation and Licensing Department is required by law to start accepting recreational-use cannabis business applications. But before the department can do that, it needs to finalize rules that outline its own standards and requirements for cannabis businesses. 

The department held a public rulemaking hearing last month where dozens of people raised concerns of large cannabis growers potentially exploiting local water rights and excess water use, particularly in areas dependent on acequias. Many of the hundreds who spoke at the hearing also asked logistical questions, all of which the hearing officer said would be answered by the department outside the hearing. 

Last week RLD announced it would conduct another public hearing for an updated set of proposed rules. In a phone interview last week, RLD Superintendent Linda Trujillo told NM Political Report that the new set of rules include changes based on previous public comments as well as new proposals. 

Limits on production limits, for example, were added to the new proposals, but the department also added a proposal for provisional licenses after many people raised concerns about a requirement that physical space is secured before applying for a cannabis business license. 

The following is a conversation between NM Political Report and Trujillo, which has been edited slightly for clarity and brevity. NM Political Report: Can you explain to readers why RLD is doing another round or rules, separate from the last batch?

State agencies confirm medical cannabis purchase limits will not increase anytime soon

Two New Mexico state agencies confirmed on Wednesday in a letter that medical cannabis purchase limits will not increase, as it was previously suggested last month by a group of medical cannabis producers. 

Related: NM medical cannabis patients should not expect increased purchase limits any time soon

In an official response to the group of five medical cannabis producers, New Mexico Department of Health Secretary Tracie Collins and state Regulation and Licensing Department Superintendent Linda Trujillo wrote that until commercial cannabis sales begin next year medical cannabis patients’ purchases will be limited to roughly eight ounces of cannabis in a rolling 90-day period. The Medical Cannabis Program, which is currently overseen by DOH, limits purchases to 230 units in 90-days. The program defines a unit as one gram of dried, smokable cannabis or 0.2 grams of cannabis concentrates or derivatives. 

Even after commercial cannabis sales start, Collins and Trujillo wrote, medical cannabis purchases will be constrained, but patients could still opt to buy more cannabis through commercial sales. 

“Until such time as commercial cannabis activity is permitted by the Cannabis Control Division, qualified patients will remain limited to medical purchases made pursuant to the [Lynn and Erin Compassionate Use Act], i.e., purchases in quantities that are within the 90-day adequate supply purchase limit, as specified in Section 6(K) of the [Cannabis Regulation Act],” the two wrote. 

The section of the Cannabis Regulation Act the two department heads referred to states that medical cannabis producers “shall continue to operate under rules promulgated” by DOH until RLD issues new rules. But Collins and Trujillo also said they soon plan to announce proposed rule changes for producers that could include production limits for both medical and recreational-use cannabis. 

“That rulemaking will include revisions to existing producer plant limits, although the content of the proposed rules has not yet been determined. 

Interpretation of the law

Collins and Trujillo wrote the letter in response to a letter from medical cannabis producers Ultra Health, G&G Genetics, Budding Hope, Kure and Sacred Garden, which was sent on April 14. 

The group of producers argued that on June 29, when the Cannabis Regulation Act goes into effect, medical cannabis patients should be allowed to purchase two ounces of dried cannabis, 16 grams of extract and 0.8 grams of edible cannabis at a time, as the new law states. 

With no limit on the number of purchases in a day, a patient could purchase double the amount that is allowed under the current law in a matter of eight trips to a dispensary. So, the producers reasoned, the state should consider an increase in production limits as soon as possible.

Rep. Linda Trujillo resigns from Legislature

State Rep. Linda Trujillo announced her resignation on Thursday, saying she did so to focus on full-time work to help make ends meet during the COVID-19 pandemic. New Mexico has an all-volunteer legislature, which does not have a salary, though legislators do receive a per diem for attending the legislative session each year and interim committee hearings that occur throughout the year. “There is still so much I wanted to accomplish for the people of House District 48 and the State of New Mexico,” Trujillo, a Democrat from Santa Fe, said. “It is with a heavy heart that I submit my resignation from the New Mexico House of Representatives. I want to thank each and every one who supported me with your vote and your friendship during my time as a State Representative. I will cherish each moment I’ve had with you.” 

Trujillo’s resignation was effective immediately.

Election changes pass House after revote

A scaled-back election overhaul lacking a key provision that would have allowed clerks to mail every registered voter a ballot for the November general election is on its way to Gov. Michelle Lujan Grisham’s desk following a dramatic revote after first failing to pass the House. After three hours of debate, the House rejected Senate Bill 4 in a 38-32 vote Saturday that included many Democrats opposing the measure despite it being a priority of Lujan Grisham and other Democrats. But a subsequent vote to “reconsider” the legislation passed, and after hours of closed-door caucus meetings, a second vote on the legislation cleared the House floor 44-26 without any amendments, rescuing the bill from the legislative graveyard. House Speaker Brian Egolf and other Democratic leaders persuaded fellow Democrats to support legislation they opposed just hours earlier byreminding them of other provisions in the bill that are meant to help ensure a safe election during the pandemic. “We basically decided to [prioritize] a safe election, an election where absentee ballot programs can be meaningfully done without late-arriving ballots, without vendors and processing being such a problem like in the primary we just went through,” Egolf said in an interview after the House adjourned.

PRC reform bill advances with big concerns

A bill to make big changes to the Public Regulation Commission (PRC) passed its first committee despite lingering questions over the proposal. After a length debate, the House Energy, Environment and Natural Resources Committee passed the bill Thursday with a vote of 8-5 along party lines. Democratic Reps. Nathan Small of Las Cruces and Rep. Linda Trujillo of Santa Fe presented HB 11 to the committee. The legislation would restructure the PRC with the aim of streamlining operations and improving efficiencies that Small and Trujillo contend are holding the state back and hurting New Mexico residents.

Bill to fund tax-poor rural school districts clears first committee

As New Mexico lawmakers look for a way to provide extra funding for public school students in some of the most financially challenged areas of the state, a bill that eventually would provide $60 million a year for some of those districts to share cleared its first hurdle Wednesday. House Bill 4, sponsored by Democratic Reps. Brian Egolf of Santa Fe, Patricia Lundstrom of Gallup and Anthony Allison of Fruitland, would appropriate $18.9 million in fiscal year 2021 to start the new fund. Over the course of three years, the fund would grow to about $60 million in both operational funding and capital outay, Egolf said, adding 23 of New Mexico’s 89 school districts would be eligible for a share. The new funding is “a dire, dire need for us,” said Jvanna Hanks, assistant superintendent of Gallup-McKinley County Schools, a district that would qualify.

Bill to license massage therapy businesses aimed to stop ‘nefarious’ activities

A bill that looks innocuous – requiring massage parlor establishments to be licensed – could have big consequences. Although no one knows how many massage parlors are legitimate and how many are not, the ones that are not often serve as fronts for human trafficking, say authorities and sexual assault advocates. The New Mexico Regulation and Licensing Department estimates there are about 8,200 massage therapists in the state and there could be as many as 1,500 establishments that would need to apply for licensure if the bill passes. Rep. Linda Trujillo, D-Santa Fe, is sponsoring HB 155. “We recognize there are thousands of fabulous massage therapists all over the state, but there are a few that are not in the business for massage therapy,” Trujillo told NM Political Report.

Early ed funding proposals clear House committee — but one faces a tougher future

As the state prepares to consolidate most services for its youngest residents in a newly created department, the House Education Committee on Wednesday approved a pair of measures with different strategies for funding an expansion of programs for children from birth to age 5. Neither idea is new, and both — which head to the full House of Representatives for consideration — rely heavily on the state’s recent windfall of oil and gas revenues. But one measure drew wide support in a committee room crowded with a diverse array of proponents on both sides of the political aisle, while the other — which would create a far larger revenue stream for New Mexico’s kids — intensified an ongoing clash over the potential risks and rewards of tapping an investment fund that now holds nearly $20 billion. The debate suggested that although most state leaders favor increases in early childhood services in an effort to improve education and economic outcomes, the surge in funding some advocates have sought for years isn’t likely to come in this legislative session. “This bill has been before you for far too long,” Paul Gibson, co-founder of the social activist group Retake Our Democracy, told the House Education Committee, urging lawmakers to move forward House Joint Resolution 1 — which would let New Mexico voters decide on a constitutional amendment calling for a 1 percent withdrawal from the state’s Land Grant Permanent Fund.

Legislators unveil bill to shift PRC authority to governor’s administration

Democratic lawmakers on Tuesday unveiled legislation that would dramatically alter the structure of the state’s Public Regulation Commission, shifting nearly every division currently under its authority to a department within the governor’s administration. Although the PRC is a state commission, it is an entity not under the control of the state’s governor. Legislation proposed by state Reps. Linda Trujillo, D-Santa Fe, and Nathan Small, D-Las Cruces, would change that, and comes amid frustration from Gov. Michelle Lujan Grisham and some lawmakers over disagreement with the PRC on whether the Energy Transition Act applies to plans from the state’s largest utility to abandon and recover investments into a coal-fired power plant near Farmington. The energy act, signed into law by the governor in 2019, would allow Public Service Company of New Mexico to recover investment costs sunk into the San Juan Generating Station and requires the state to shift to zero-carbon electricity production by 2045.

Education committee members decry public school spending plans

Lawmakers on the state House and Senate education committees on Wednesday decried the lack of funds proposed for some of their priorities for fiscal year 2021, indicating a deeper conflict is broiling over the largest share of the state’s budget as the Legislature and governor begin hashing out differences in their spending plans. During a joint hearing on public school funding proposed by both the Legislative Finance Committee and Gov. Michelle Lujan Grisham, education committee members said their input over the past year has been ignored. The initiatives they cited as underfinanced or omitted completely ranged from cybersecurity to teacher recruitment and retention efforts to providing feminine hygiene products for teen girls. Rep. Linda Trujillo, a Santa Fe Democrat and former school board member who serves on the interim Legislative Education Study Committee, said she didn’t think the voices of educators, school administrators and higher education officials were “entirely reflected” in the competing budget proposals. “I feel like we have been left in the lurch,” added Rep. Christine Trujillo, D-Albuquerque, a former teacher and chairwoman of the Legislative Education Study Committee.