At P37, we support thoughtful cannabis regulation. We were founded on the belief that cannabis policy should be rooted in science, public safety, and accountability, not fear or optics. That is why we are concerned about House Bill 294, which proposes sweeping changes to cannabis packaging, labeling, and ingredients in New Mexico.
While the bill is framed as a measure to protect minors, its approach raises serious questions about effectiveness, fairness, and unintended harm—to patients, consumers, small businesses, and the regulated market itself.
The Goal Is Right. The Execution Is Not.
Protecting children from cannabis exposure is non-negotiable. The regulated cannabis industry already agrees on this and operates under strict age-verification, packaging, and compliance rules.
However, HB 294 does not meaningfully strengthen those protections. Instead, it relies on aesthetic restrictions and overly broad definitions that do little to address real-world access while introducing new risks to public health and market stability.
1. Black-and-White Packaging Will Not Prevent Youth Access
HB 294 mandates that nearly all cannabis packaging be limited to black and white, eliminating approved brand colors, visual differentiation, and lawful trademarks.
There is no credible evidence that monochrome packaging:
- Reduces youth consumption
- Improves safety
- Prevents diversion
What does prevent youth access is:
- Secure, licensed retail environments
- ID verification
- Education
- Enforcement against illicit operators
By contrast, stripping regulated products of visual identity:
- Makes legal products harder for consumers to distinguish
- Increases confusion at point of sale
- Pushes consumers toward unregulated products that face no such rules
This is not theoretical—it has already occurred in other tightly restricted markets.
2. The Bill Creates Dangerous Regulatory Vagueness
HB 294 grants regulators broad discretion to ban packaging based on what is “reasonably appealing to minors,” without objective standards.
This creates:
- Uncertainty for licensees
- Inconsistent enforcement
- A chilling effect on compliance innovation
What qualifies as “appealing” is undefined and subjective. Logos, typography, and even legally registered branding could be deemed noncompliant overnight.
A stable regulatory environment must be clear, predictable, and enforceable—not dependent on interpretation.
3. Artificial Color Additive Bans Ignore Science and Harm Consumers
HB 294 would declare any cannabis product containing an unapproved artificial color additive to be legally “adulterated.”
This is concerning for several reasons:
- Many color additives are already FDA-approved for food and beverage use
- Color alone does not correlate to youth appeal or misuse
- Removing approved additives can force manufacturers toward:
- Less stable formulations
- Shorter shelf life
- Inconsistent dosing
For medical patients, consistency matters. For adult consumers, transparency matters. Blanket bans are not science-based regulation.
4. Retailers Are Held Liable for Third-Party Products
Under HB 294, retailers are legally responsible for compliance failures—even when products are manufactured by licensed third parties.
This:
- Shifts liability unfairly down the supply chain
- Punishes retailers acting in good faith
- Discourages small businesses from carrying diverse products
Retailers should not be forced to act as de facto regulators for the state.
5. Small and Local Businesses Will Be Disproportionately Harmed
Rebranding, reformulation, and packaging redesign are expensive. Large, multi-state operators may absorb these costs. New Mexico-based, locally owned businesses often cannot.
HB 294 risks:
- Eliminating local brands
- Consolidating the market
- Undermining the equity goals of New Mexico’s cannabis framework
A policy that unintentionally favors large operators over local ones contradicts the intent of legalization.
6. This Bill Strengthens the Illicit Market
The unregulated market:
- Does not follow packaging rules
- Does not ID customers
- Does not test products
Over-restricting the legal market makes illicit products:
- More recognizable
- More visually distinct
- More attractive by comparison
That is the opposite of public safety.
A Better Path Forward
P37 believes New Mexico can protect minors without undermining the regulated system. We urge lawmakers to consider alternatives such as:
- Evidence-based packaging standards
- Clear, objective definitions
- Targeted enforcement against illegal operators
- Consumer and youth education initiatives
- Collaboration with industry experts and public health professionals
Regulation should evolve—but it must do so with data, clarity, and balance.
Our Commitment
P37 will always advocate for:
- Responsible use
- Scientific integrity
- Transparent regulation
- A legal market that works for consumers, patients, and communities
We welcome dialogue and collaboration with lawmakers to ensure New Mexico continues to lead with smart, effective cannabis policy—not symbolic restrictions that miss the mark.
Source: “https://www.nmlegis.gov/Sessions/26%20Regular/bills/house/HB0294.pdf”
