SENATE TAX, BUSINESS AND TRANSPORTATION
COMMITTEE SUBSTITUTE FOR
SENATE BILL 288
55th legislature - STATE OF NEW MEXICO - first session, 2021
AN ACT
RELATING TO CANNABIS; ENACTING THE CANNABIS REGULATION ACT; CREATING THE CANNABIS CONTROL COMMISSION AND PROVIDING DUTIES; REVISING SECTIONS OF LAW RELATED TO CANNABIS; ESTABLISHING DUTIES FOR THE DEPARTMENT OF ENVIRONMENT; CREATING THE CANNABIS REGULATION FUND AND THE ROAD SAFETY FUND; REVISING THE LOCAL DWI GRANT PROGRAM; ENACTING THE CANNABIS TAX ACT; PROVIDING AND REVISING PENALTIES; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 35 of this act may be cited as the "Cannabis Regulation Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Cannabis Regulation Act:
A. "adult-use cannabis" means cannabis that is authorized for sale pursuant to the Cannabis Regulation Act, but does not include medical cannabis;
B. "board" means the board of regents of New Mexico state university;
C. "cannabis":
(1) means all parts of the plant Cannabis sativa Linnaeus, whether growing or not, containing more than three-tenths percent tetrahydrocannabinol; 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, its seeds or its resin; and
(2) does not include:
(a) the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake; or the sterilized seed of the plant that is incapable of germination; or
(b) the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or another product;
D. "cannabis courier" means a person licensed by the commission only to transport usable cannabis and cannabis products directly to consumers;
E. "cannabis establishment" means:
(1) a cannabis testing laboratory;
(2) a cannabis producer;
(3) a cannabis manufacturing facility;
(4) a lounge; or
(5) a dispensary;
F. "cannabis extract":
(1) means a product obtained by separating resins from cannabis by solvent extraction using volatile solvents, such as butane, hexane, isopropyl alcohol, ethanol or carbon dioxide; and
(2) does not include the weight of any other ingredient combined with cannabis extract to prepare topical or oral administrations, food, drink or another product;
G. "cannabis flowers" means only the flowers of a cannabis plant;
H. "cannabis items" means cannabis, cannabis products and cannabis extracts;
I. "cannabis leaves" means only the leaves of a cannabis plant;
J. "cannabis manufacturer" means a person licensed to:
(1) manufacture and package cannabis items;
(2) have cannabis items tested by a cannabis testing laboratory; and
(3) buy, sell, consign or transport cannabis items;
K. "cannabis producer" means a person licensed to:
(1) cultivate or prepare cannabis in a raw form for consumption;
(2) have cannabis items tested by a cannabis testing laboratory; and
(3) sell, consign or transport cannabis items;
L. "cannabis product":
(1) means a product that contains cannabis or cannabis extracts, including edible or topical products that may also contain other ingredients; and
(2) does not include the weight of any other ingredient combined with cannabis or cannabis extracts to prepare topical or oral administrations, food, drink or another product;
M. "cannabis testing laboratory" means a facility licensed by the department of environment to collect, transport and test cannabis items to analyze the strength or purity of the items;
N. "commercial cannabis activity":
(1) means the cultivation, production, possession, manufacture, storage, testing, labeling, transportation, couriering, sale or consignment of cannabis and cannabis items; and
(2) does not include activities related only to the medical cannabis program;
O. "commission" means the cannabis control commission;
P. "consumer" means a person who purchases, acquires, owns, possesses or uses a cannabis item for a purpose other than resale;
Q. "controlling person":
(1) means an officer, board member or other natural person who has a financial or voting interest of ten percent or greater in a cannabis establishment; and
(2) does not include a bank or licensed
lending institution;
R. "cultivation" means any activity involving the
planting, growing, harvesting, drying, curing, grading or
trimming of cannabis;
S. "director" means the executive director of the cannabis control commission;
T. "dispensary" means a commission regulated facility at which cannabis items are stored or offered for retail sale to the public;
U. "dual licensed dispensary" means an establishment licensed to sell both medical and adult-use cannabis for off-site consumption;
V. "financial consideration" means the value that is given or received, directly or indirectly, through sales, barter, trade, fees, charges, dues, contributions or donations;
W. "licensed premises" means a location that is licensed pursuant to the Cannabis Regulation Act and includes:
(1) all enclosed public and private areas at the location that are used in the business operated pursuant to a license and includes offices, kitchens, restrooms and storerooms;
(2) all areas outside of a building specifically licensed for the production and manufacturing of cannabis items; and
(3) with respect to a location specifically licensed for the production of cannabis outside of a building, the entire unit of land that is created by subdivision or partition of land that the licensee owns, leases or has a right to occupy;
X. "licensee representative" means an owner, director, officer, manager, employee, agent or other representative of a licensee, to the extent that person acts in a representative capacity;
Y. "local jurisdiction" means a municipality or a county;
Z. "lounge" means a facility licensed by the commission to sell cannabis items only for on-site consumption;
AA. "manufacture":
(1) means to compound, blend, extract, infuse, package or otherwise prepare a cannabis item; and
(2) does not include cultivating the cannabis contained in a cannabis item;
BB. "medical cannabis" means cannabis items used by a qualified patient in accordance with the Lynn and Erin Compassionate Use Act;
CC. "medical cannabis collective" means a group of not more than five qualified patients, as defined in the Lynn and Erin Compassionate Use Act, licensed by the board through the New Mexico department of agriculture to cultivate and sell certain medical cannabis items pursuant to rule;
DD. "medical cannabis program" means the regulated system allowing for the beneficial use of medical cannabis as established in the Lynn and Erin Compassionate Use Act;
EE. "medical cannabis registry" means that term as defined in the Lynn and Erin Compassionate Use Act;
FF. "person" means an individual or a firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver or any other legal or commercial entity;
GG. "public place" means a place to which the general public has access and includes hallways, lobbies and other parts of apartment houses and hotels that do not constitute rooms or apartments designed for actual residence; highways; streets; schools; places of amusement; parks; playgrounds; and places used in connection with public passenger transportation;
HH. "qualified patient" means that term as defined in the Lynn and Erin Compassionate Use Act;
II. "safety-sensitive position" means a position in which performance by a person under the influence of drugs or alcohol would constitute an immediate and direct threat of injury or death to that person or to another;
JJ. "usable cannabis" means dried cannabis flowers and dried cannabis leaves and any mixture or preparation of those flowers or leaves; and
KK. "volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
SECTION 3. [NEW MATERIAL] CANNABIS CONTROL COMMISSION CREATED--DUTIES--RULEMAKING.--
A. The "cannabis control commission" is created. The commission is a governmental entity for purposes of the Tort Claims Act. The commission consists of:
(1) the secretary of environment or a member of the secretary's staff designated by the secretary in an advisory role;
(2) the secretary of health or a member of the secretary's staff designated by the secretary in an advisory role;
(3) the director of the New Mexico department of agriculture or a member of the director's staff designated by the director in an advisory role; and
(4) five public members appointed by the governor with the consent of the senate, including:
(a) one member who is engaged in the active commercial cultivation of non-cannabis crops;