In a historic move, Albuquerque passed a city ordinance to ban hemp-derived THC, making it the first municipality in the state to do so. Most cannabis industry stakeholders are applauding the ban, but some insiders say it could inadvertently strengthen the illicit cannabis market.
The Intoxicating Hemp Products Ordinance, sponsored by Councilor Dan Lewis, bans the sale and manufacture of any hemp products with a THC level higher than the national limit of 0.3 percent. It was enacted on Tuesday, June 12, without Mayor Tim Keller’s signature.
The mayor’s office wouldn’t comment on the ordinance, but it provided a statement from the Environmental Health Department: “We still have questions about how enforcement will work, so we are evaluating.”
It’s still unclear how hemp products will be tested for compliance. But many industry stakeholders are happy to see the ordinance passed.
“This 7-2 vote establishes clear, enforceable standards that prohibit the unregulated sale of synthetic and highly concentrated hemp-derived THC products, protecting both consumers and our youth,” says Indy White, Legal Counsel for the New Mexico Cannabis Chamber of Commerce, in a statement sent to The Paper.
White is one of the advocates who helped city leaders craft the ordinance. “I am proud of the collaborative effort that brought public-health experts, industry stakeholders, and city leaders together,” he says. “The result is a straightforward compliance road map that any municipality can replicate to curb the gray market proliferation of intoxicating hemp products.”
That market has become a growing concern for policymakers and stakeholders, as unregulated intoxicating products can easily be found in gas stations and head shops across the state. The products are often made by converting the CBD in hemp into intoxicating cannabinoids like Delta-8, Delta-9 and Delta-10 THC — which can have effects similar or even identical to cannabis , but is nevertheless technically considered “hemp.”
Many of these products are packaged to look similar to popular snacks like candies and chips, and city leaders say they are concerned that they may accidentally be consumed by children.
The ordinance also bans the sale of any cannabinoid other than CBD “deemed to cause intoxication.” This language is notable, because it was presumably included to beat gray market chemists to the punch now that researchers are theorizing that THC may not be the end-all when it comes to weed’s intoxicating effects.
Researchers are only barely beginning to scratch the surface when it comes to the hundreds of cannabinoids that can be found in the cannabis plant. And since the federal definition for hemp focuses solely on THC, hemp manufacturers may be in a position in the future to take advantage of a previously unknown intoxicating cannabinoid without the attached blanket ban on all these compounds.
As far back as 2020, researchers found that THC levels might not correlate to level of intoxication. University of Colorado Boulder scientists found that cannabis extract users with higher levels of THC in their blood reported the same levels of intoxication as those who smoked flower and had lower levels of THC. When tested for balance and cognitive impairment, both groups performed similarly.
“Surprisingly, we found that potency did not track with intoxication levels,” said lead author Cinnamon Bidwell. “While we saw striking differences in blood levels between the two groups, they were similarly impaired.”
Hemp product manufacturers are already leaning into cannabinoids that were largely unheard of in previous decades like CBG and CBN.
“This vote should be viewed as a starting point rather than the finish line,” says White. “Consistent rules across New Mexico remain essential to close loopholes and give legitimate businesses the certainty they deserve.”
Ultra Health CEO Duke Rodriguez echoes this sentiment. “The City of Albuquerque took an important first step by addressing unregulated hemp-derived THC products,” he says, “but if we’re serious about protecting public health — especially our young people — then the Governor and the Legislature need to step up. We need clear, statewide rules that prioritize safety, consistency, and enforcement. Piecemeal action isn’t enough.”
Earlier this year, state lawmakers tried to pass a bill that would have leveled a similar hemp-derived THC ban across the state. The bill passed in both the state House and Senate, but it was never signed into law by the governor.
But White indicates that lawmakers will see the legislation in the Roundhouse again. “I look forward to working with lawmakers during the upcoming legislative session to adopt similar, statewide protections modeled on Albuquerque’s success,” he says.
Matt Kennicott, CEO and co-founder of cannabis industry association The Plug, tells The Paper. that regulating these products is a good thing.
“Hemp should be regulated so consumers know they’re buying a safe product,” says Kennicott. “We don’t need to control what people put in their bodies — we just need to make sure that what they’re consuming is tested to high standards.”
But Kennicott also points out that it may have unintended consequences when it comes to the illicit weed market in New Mexico — a persistent problem.
“The likelihood of hemp products taking away from cannabis sales in a regulated market is slim,” says Kennicott. “If a regulatory regime is in place for hemp-derived THC products, it’s likely many of them would never pass the standards for testing. But since Albuquerque has now banned hemp-derived THC, those products will be driven into the unregulated illicit market where the concerns about health impacts are worse.”