Vote Smart's Synopsis:

Vote to pass a bill that establishes the cannabis regulation act.

Highlights:

• Specifies that cannabis refers to all parts of the plant genus Cannabis containing a delta-9-tetrahydrocannabinol concentration of more than 3 tenths percent on a dry weight basis whether growing or not, the seeds of the plant, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture or preparation of the plant, seeds, or resin (Sec. 2, Pg. 3).

• Establishes a cannabis control division in the Department of Environment to administer the Cannabis Regulation Act and licensing provisions of the Lynn and Erin Compassionate Use Act and associated rules and regulations (Sec. 3, Pg. 12).

• Prohibits the sale of cannabis to individuals under the age of 21 and the employment of individuals under the age of 21 in a cannabis establishment unless the person was over the age of 18 and employed prior to the passage of this act (Sec. 9, Pg. 39).

• Requires the division to adopt rules consistent with industry standards necessary to carry out its duties listed in the Cannabis Regulation Act no later than January 1, 2022, including the following (Sec. 3, Pgs. 12-16):

• Establishing qualifications and procedures for licensure related to the operation of applicable cannabis establishments;

• Establishing security requirements for cannabis establishments;

• Establishing requirements for establishment inspection and monitoring, recordkeeping and tracking of cannabis from seed to sale, prevention of commercial sale to individuals under the age of 21, advertising and marketing, proper product display, health and safety standards for research, production, and manufacture, and proper labeling and language of labels of cannabis products regarding potential adverse effects;

• Establishing rules that no individual 21 and older can purchase more than 2 ounces of cannabis, more than 16 grams of cannabis extract, or more than 800 milligrams of edible cannabis at one time; and

• Establishing procedures for a certification process for appropriate cannabis producers.

• Requires the division to adopt rules consistent with industry standards related to the development of cannabis education and training programs no later than January 1, 2022 (Sec. 3, Pg. 16).

• Requires that the division adopt rules in consultation with the New Mexico department of agriculture, department of environment, and office of the state engineer to establish environmental protections and protocols, and enforce compliance, no later than January 1, 2022 (Sec. 3, Pg. 16).

• Requires the division to adopt rules in consultation with the department of health with regards to standards and requirements for reserving products for sale to qualified patients, caregivers, and reciprocal participants (Sec. 3, Pg. 17).

• Requires that no individual shall possess more than 2 ounces of cannabis, more than 16 grams of cannabis extract, or more than 800 milligrams of edible cannabis on their person, and that all individuals must store excess amounts in their place of residence out of the view of the public (Sec. 3, Pg. 14).

• Establishes the cannabis regulatory advisory committee no later than September 1, 2021 to advise the development of rules and best practices for the Cannabis Regulation Act, monitor supply and demand of cannabis in the state, and enforce the provisions of the Act (Sec. 3, Pgs. 18 & 21).

• Requires that the members of this committee hold no interest or investment in any licensed person or establishment under the Cannabis Regulation Act (Sec. 3, Pg. 18).

• Requires that the powers, duties, and authority of the department of health related to cannabis be transferred to the division, except for the medical cannabis registry, on June 29, 2021 (Sec. 4).

• Requires the division to regulate and authorizes the division to collect fees in connection with the administration of commercial cannabis activity and licensure, the medical cannabis program, and all aspects of cannabis training and education programs (Sec. 5, Pgs. 21 & 22).

• Specifies that issued licenses are valid for 12 months and can be renewed annually, and that education and training program licenses are valid until terminated or suspended (Sec. 5, Pg. 22).

• Prohibits the division from requiring licensees to request any information from customers, including residency information, other than age, except for the medical cannabis program (Sec. 5, Pg. 25).

• Prohibits the division from limiting the number of licensed premises a licensee can have and limiting the number of licensees who can occupy one establishment (Sec. 5, Pg. 25).

• Prohibits alcohol and cannabis from being sold or consumed at the same premises (Sec. 5, Pg. 25).

• Prohibits members of the New Mexico house of representatives or senate from applying for a commercial cannabis license prior to July 1, 2026 (Sec. 5, Pg. 29).

• Requires commercial cannabis license applicants to undergo criminal background checks and authorizes the division to grant licenses if the applicant does not have substantial related criminal history, which would not include criminal history related to cannabis (Sec. 6, Pg. 35).

• Requires licensee or permittee violating the Cannabis Regulation Act or resulting rules be subject to disciplinary action, with the following possibilities (Sec. 7, Pgs. 36 & 37):

• That the division may impose an intermediate sanction on the violator;

• That the division may impose a directed plan of correction on the violator;

• That the division may impose a civil monetary penalty no greater than $10,000 per penalty, to be given to the state treasurer and deposited in the current school fund; and

• That the division may suspend or revoke the violator’s license.

• Specifies that repeated violations of substantial rules relating to public health and safety may result in license suspension (Sec. 7, Pg. 37).

• Authorizes the division to mandate certification of completion of a cannabis education and training program for license applicants and their employees (Sec. 8, Pg. 38).

• Authorizes licensed non-profit producers incorporated for the purpose of applying for a license to transfer their license in accordance with department of health rules under the Lynn and Erin compassionate Use Act (Sec. 5, Pg. 24).

• Establishes a cannabis excise tax paid on the 25th day of the month (Sec. 11, Pg. 42).