HB 128 - Cannabis Regulation Act Changes - Bill Analysis
The legislative session is underway, and Representative Andrea Romero has introduced HB 128 - Cannabis Regulation Act Changes. We’ve taken a look over the bill and have done an analysis. Overall, the legislation is a positive step for the cannabis industry.
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HB 128 Cannabis Regulation Changes – Rep Andrea Romero
Summary
HB 128 makes various changes to the Cannabis Regulation Act (CRA). This legislation attempts to clean up some pieces of the law that have not been working well, are not needed, or no longer apply to the industry. Here’s a quick summary of the legislation. If you’d like to read the entire bill, it can be found at https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=B&LegNo=128&year=24.
· Micro Producer Plant Count – Under this legislation, the plant count for micro-producers will be increased to 500 mature plants, up from the current limit of 200 plants.
· Cannabis Server Permit – The proposal removes the provision under the current law requiring a cannabis server permit and training. The state has not implemented this up to this point.
· Illegal Cannabis Product – The bill proposes a new definition of illegal cannabis product. The definition includes product from out of state, product sold by an unlicensed person, and product sold by a person acting outside the limits of their license. Homegrown or homemade cannabis products for personal use are excluded.
· Integrated Micro Business Definition – The proposed definition adds language to the current law and includes selling and transporting cannabis and cannabis products to other micro businesses. This provision needs to be broad and not limit micro-businesses from selling products from or to all other licensed producers, regardless of whether they are micro-businesses or not.
· Liquor License Fix – The proposed legislation attempts to fix the issue of a person being able to hold a liquor license and cannabis license simultaneously. The intent of the CRA was not to bar someone from holding both licenses, rather it was to prevent the serving of alcohol and cannabis on the same premises. This legislation comes close to a fix; however, the language falls short. It would not allow for a cannabis retailer and an alcohol retailer to be in the same place (exp. Tin Can Alley in Albuquerque). Additional language has been sent to the bill sponsor for her consideration.
· Legacy Nonprofits – The bill allows for the final conversion of legacy nonprofits into for-profit corporations.
· Criminal History Background Checks – This proposal significantly beefed up the provision of background checks. A provision has been added to collect biometric scans from applicants to conduct state and federal criminal history background checks. The main issue with this provision is the potential lack of statewide facilities for collecting biometric information.
· Packaging and Labeling – The proposal clarifies that packages and labels shall not mimic other products marketed to children and shall not use cartoons, symbols, or images, including images of celebrities or their likenesses, commonly used to market to children. This bill also requires that packaging for edible cannabis products shall be opaque.
· Trafficking Penalties – The legislation increases the age for trafficking penalties from eighteen to twenty-one. A first offense is a fourth-degree felony, while third and subsequent offenses are second-degree felonies.
· CCD Enforcement Abilities – This proposal significantly strengthens the enforcement abilities of CCD. The division may initiate investigations, issue administrative holds on the movement of cannabis under investigation, embargo or seize product suspected of being illegal, seize a premises where the cannabis is located, destroy illegal product, and petition the court for condemnation or other relief. Cannabis products not considered illegal or dangerous will have the administrative hold lifted after the licensee relabels and repackages the product. The proposal provides licensees with due process, allowing for an administrative hearing process to take place. A person who destroys or removes product under an administrative hold is guilty of a fourth-degree felony and may face revocation of their license, fines up to $10,000, and other disciplinary actions established by rule.
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