SANTA FE — Surrounded by legislative sponsors, advocates, pueblo and tribal leaders, cabinet secretaries and key players in the New Mexico agricultural industry, Gov. Michelle Lujan Grisham on Monday signed House Bill 581, first-of-its-kind economic development legislation expanding the commercial and industrial uses of hemp as well establishing a seamless, uniform regulatory structure for New Mexico’s emergent hemp manufacturing industry.

The law provides for the regulation of production, testing, research, manufacturing and transport of hemp, hemp extract and hemp-finished products. The framework will catalyze the hemp business in New Mexico, a clean agricultural industry poised for rapid growth.

The Hemp Manufacturing Act effectively serves as a green light for New Mexico businesses that have been preparing to extract, refine and produce retail products containing locally grown hemp. Under the law, the New Mexico Department of Agriculture, Environment Department and Department of Health are provided the authority to regulate hemp while also encouraging collaboration with tribal entities.

“The hemp industry is bursting with potential,” Gov. Lujan Grisham said. “As we do the work to diversify our state economy, hemp can and will play a key role, boosting our value-added agriculture sector, creating high-quality jobs and driving innovation. Crucially, this legislation provides for partnership opportunities between state government and New Mexico tribes and pueblos. I am firmly committed: Our remade state economy will be broader and more inclusive. We will grow as one.”

“I want to thank Rep. Lente and Gov. Lujan Grisham as well as the many tireless advocates who made this day possible,” said Sen. Benny Shendo. “This bill will be a tremendous boost to our pueblo communities; this is one way to bring back agriculture and keep moving forward with economic development.”

“Today I am proud to stand with Governor Michelle Lujan Grisham to support the burgeoning hemp industry, an industry with the potential to bring millions of dollars to our economy,” said Rep. Derrick Lente. “This legislation will help farmers and manufacturers access this lucrative industry while maintaining compliance with federal and state laws, and developing new, innovative products like CBD oils, textiles, and clothing. New Mexico is the first in the nation to create comprehensive hemp regulations and will be a leader for other states to follow.”

“This legislation establishes New Mexico as a leader in recognizing the value-added opportunities in the emerging hemp industry,” said Agriculture Secretary Jeff Witte. “Processors, transporters and laboratories will be provided with a solid framework to grow local business. As production increases, our producers will have solid opportunities to market their crops. And I anticipate this momentum will spill over into other area of agriculture.”