Legislation Detail
CS/HB 128 CANNABIS REGULATION CHANGES
Actions: HPREF [2] not prntd-HRC [3] w/drn-prntd-ref- HCPAC/HJC-HCPAC [4] DP-HJC [10] DNP-CS/DP
Scheduled: Not Scheduled
House Bill 128 (HB 128) This bill explains in detail cannabis regulations. This bill includes the Cannabis Regulation Act in the Racketeering Act, the Delinquency Act and the Uniform Licensing Act.Legislation Overview:
House Bill 128 (HB 128) Section 1 – List the exceptions to the public “right to inspect records”. Section 2 – Designated as the “Cannabis Regulation Act” Section 3 – Definitions used in the Cannabis Regulation Act Section 4 – Limitations of Licensing of Cannabis activities and regulating: • Commercial cannabis activities • Medical cannabis program • Cannabis training and education programs This section also details how long the cannabis license is valid and when the license has to be renewed. Section 5 – Requirements for licensing and Suspension and Revocation of a cannabis license. Section 6 – Details requirements for criminal background checks Section 7 – Application and Licensing Fees – • Cannabis courier license – Up to $1,500.00 per year • Cannabis testing laboratory license – Up to $2,500.00 per year • Cannabis manufacturing license - $2,500.00 per year • Cannabis producer license - $2,500.00 per year • Cannabis retailer license - $$2,500.00 per year • Cannabis research laboratory license - $2,500.00 per year • Vertically integrated cannabis establishment license - $7,500.00 per year • Cannabis producer microbusiness license – Up to $1,000.00 per year • An integrated cannabis microbusiness license - $2,500.00 per year • Cannabis consumption area license – Up to $2,500.00 per year Section 8 – Explains Cannabis Training and Education Programs Section 9 – Rules for packaging and labeling cannabis products Section 10 – Addresses testing of cannabis products including the Health and Safety of Employees and Consumers. Section 11 - Details “Advertising and Marketing Restrictions” Section 12 – Addresses penalties for trafficking cannabis products. Section 13 – [new material] This section of the Cannabis Regulation Act that addresses when the cannabis product is deemed adulterated. Section 14 – [new material] When Cannabis is deemed “misbranded”. Section 15 - [new material] This section of the Cannabis Regulation Act that addresses “Enforcement – Embargo and Recall, Seizure and Condemnation – Procedures and Penalties. Section 16 – Public records and Open Meetings – Details which records are available to the public. Rulemaking and other hearings are open to the public. Section 17 – Penalties for bringing contraband into places of imprisonment. Section 18 – Definitions as used in the Racketeering Act Section 19 – Definitions as used in the Delinquency Ac Section 20 – Definitions as used in the Uniform Licensing Act Section 21 – Repeal Laws 2021 – (first S.S.), Chapter 4, Section 73 Section 22 – The effective date of the provisions of this act is July 1, 2024.Committee Substitute:
Committee Substitute February 8, 2024, in HJC HJCcs/HB 128: This Legislative Act is related to Cannabis: • Changing definitions • Providing Powers and Duties • Procedures for criminal history background checks • Removing prohibition for owners to own both cannabis license and a liquor license under the Liquor Control Act. • Prohibiting co-habitation of cannabis activities and alcoholic beverage sales or service activities to the public or member of private clubs. • Clarifying various requirements associated with cannabis sales; including education and training related to cannabis and the Racketeering Act. • Details of cannabis as a contraband in jails, prisons and juvenile detention facilities. Section 1: Chapter 26, Article 2C NMSA 1978, may be cited as the “Cannabis Regulation Act”, It is recommended to strike (A) Advertisement (B) & (C): Section 2: The subtitle “Cannabis” replaces this section with definitions as used in the Cannabis Regulations Act. Section 3: Section 26-2C-6 NMSA 1978 (being Laws 2021 (1st S.S.), Chapter 4, Section 6, as amended): This section refers to Licenses, medical cannabis shortage [New] Conversion of Nonprofit Medical Cannabis Corporation. • The division shall regulate the following in accordance with the Uniform Licensing Act: (1) commercial cannabis activity (2) the medical cannabis program (3) all aspects of cannabis relating to cannabis training and education programs. • The division may issue, renew, deny, suspend or revoke licenses • The division shall include a clear designation of all licenses • The division shall issue a license to a cannabis retailer applicant at a discount if the applicant provides documentation of an agreement to accept cannabis products on consignment from a cannabis producer. • Licenses are valid for twelve months and must be renewed annually Section 4: Section 26-2C-7 NMSA 1978 (being Laws 2021 (1st S.S.), Chapter 4, Section 7) is amended: Cannabis Activity Licensing Application – Issuance and Denial of a License – Suspension and Revocation. • This act explains the dates to accept and begin the processing of applications. • This section further explains the requirements of a license • Requires a plan to be submitted by the applicant and details what information should be in the plan • Information is given in detail about the approval and/or denial of an applicant to become a cannabis vendor in the State of New Mexico. Section 5: [New] All applicants are subject to a “Criminal History Background Check” Processes and Procedures and definitions of terms are detailed in this section. Section 6: [New] Cannabis Training and Education Programs – • A New Mexico institution can offer cannabis training to prepare students to participate in the cannabis industry. All programs must be registered with the division and must include information about the program and its website. Section 7: Relates to Packaging and Labeling cannabis products. Section 8: Provides details for testing cannabis products – Health and Safety of Employees and Consumers. • Cannabis testing should be in accordance with the requirements set forth by the applicable Law and rules. • The division shall promulgate rules regarding testing of cannabis products. Section 9: References Advertising and Marketing Restrictions – Section 10: Details Penalties for Trafficking cannabis products – • It is unlawful for a person to intentionally traffic cannabis products • A person 21 years of age or older found guilty of illegally trafficking cannabis products can be found guilty of a fourth-degree felony for the first offense. Section 11: [New] When cannabis product deemed adulterated – This section explains what this “adulterated” looks like in a cannabis product. Section 12: [New] When cannabis is deemed misbranded, such as the labeling is deemed to be false or misleading; is offered for sale under the name of another cannabis product; it is an imitation of another cannabis product; it’s container is misleading, and the labeling does not conform to the requirements set forth in Section 26-2C-17. Section 13: [New] Enforcement – Embargo and recall – seizure and condemnation – procedures and penalties. This section details what the division can do in the case of violations in terms of conducting an investigation to determine if further action is needed to enforce State Laws. Section 14: Public Record and Open Meetings • All records of the division are subject to the Inspection of Public Records Act. • Rulemaking and other hearings of the division are subject to the Open Meetings Act. Section 15: Bringing contraband into Places of Imprisonment – Penalties – Definitions – This section details Penalties and definitions that apply to contraband. Section 16: Bringing Contraband into a Juvenile Detention Facility or Juvenile Correctional Facility – Penalty: This section details the penalty for bringing Contraband into a Juvenile Detention Facility. The guilty party will be charged with a fourth-degree felony. Anyone bring contraband into a Juvenile Correctional Facility will be charged with a third-degree felony. Section 17: Definitions - This section defines all definitions as used in the Racketeering Act. Section 18: Definitions – This section defines all definitions as used in the Delinquency Act. Section 19: Definitions – This section defines all definitions as used in the Uniform Licensing Act. Section 20: Repeal – Laws 2021 (1st S.S.), Chapter 4, Section 73 is repealed. Section 21: The effective date of the provisions of this act is July 1, 2024.