New Mexico Follows the USA Hemp Farm to CBD Retail Model

The New Mexico Environment Department’s proposed rules for the post-harvest processing of hemp will set a new standard for CBD products. New Mexico is paving the way for other states that allow the sale of US-sourced hemp-based CBD products. The rules limit in-state sales of CBD to those made in the state from hemp sourced from New Mexico or one of 33 pre-approved US states.

On the heels of the vaping crises, New Mexico wants to know how CBD products are made, what they contain, and how they are tested. The high touch approach may help the CBD industry to establish credibility in the quality and integrity of the product sold.

New Mexico will review each product manufactured and sold in the state to determine whether they raise public safety concerns. Businesses must stick to using pre-approved ingredients and manufacturing processes. Businesses must also comply with the same sanitation safeguards that are used in the food and beverage industries. The regulator plans to oversee the inventory and distribution processes as well.

The state is also requiring manufacturers to retain records on the hemp product from harvest to finished product. The records must show that the hemp that was sourced from a licensed in-state or pre-approved out-of-state supplier. New Mexico’s sourcing requirements are similar to other states such as New York. New York only allows the sale of CBD products that are produced by licensed in-state processors from hemp obtained from licensed in-state growers.

Hemp products must be tested by a testing lab that is either approved by the state to test cannabis or is ISO accredited. CBD must be labeled accurately without mention of health benefits. New Mexico can hold and destroy products that are manufactured or labeled in a manner that does not comply with the rules.

New Mexico’s focus on safe and sanitary manufacturing processes is an expected regulatory evolution for the industry. CBD products, including infused food and beverages, that are intended for human consumption should be made and tested using the same standards and best practices that are used by the food and beverage industry. The focus on good hygiene can help mitigate more public safety scares that the industry experienced with the vaping crises. The focus on USA sourced hemp and production will also help the nascent industry grow when up against the massive competition from China. Consumers will also appreciate the regulatory focus on product quality and purity.