New Mexico Cannabis Legalization Bill Pro’s & Con’s


HOUSE BILL
52ND LEGISLATURE – STATE OF NEW MEXICO – SECOND SPECIAL SESSION, 2016
AN ACT
RELATING TO CANNABIS; ENACTING THE CANNABIS REVENUE AND FREEDOM
ACT; ENACTING THE CANNABIS TAX ACT; PROVIDING DUTIES AND POWERS
OF THE REGULATION AND LICENSING DEPARTMENT, THE TAXATION AND
REVENUE DEPARTMENT, THE NEW MEXICO DEPARTMENT OF AGRICULTURE
AND THE DEPARTMENT OF HEALTH; REVISING THE LYNN AND ERIN
COMPASSIONATE USE ACT AND OTHER SECTIONS OF LAW RELATED TO
MARIJUANA; CREATING THE SUBSTANCE ABUSE PREVENTION FUND AND THE
STATE POLICE SUPPORT FUND; PROVIDING PENALTIES; MAKING
APPROPRIATIONS.

( Complete Bill Below )


Pro’s :
  • legalization
  • revenue for underfunded state budget
  • lowered medical producer fees ( 450 plants for $45,000, Lic Fee $15,000, $500 to process application, person may hold more than one kind of & type of lic )
  • Plant count increase structured : 1000 plants by July 1st 2017 then 2000 by July 1st 2018
  • Taxes: 15% with possible 5% more Municipality tax and another possible 5% county ta
  • Allows for medical patients with PPL to sell excess cannabis to producer ( does NOT increase plant count for patients )


What’s Missing :


  1. LECUA Patients Coalition Of New Mexico Policy & Reform Goals :
    1. Ensuring safe access to all areas of the the state and proper administering of the Lynn and Erin Compassionate Use Act, by the New Mexico State Department of Health.  
      1. Added involvement of additional New Mexico state departments or agencies.
      2. Role and Duties of State Departments & Agencies defined clearly
    2. Adequate supply of medical cannabis properly structured and increased.
      1. Maximum quantity of usable cannabis increased to 425.243 grams per 3 months ( 2.5 ounces every two weeks ).                  
      2. Inclusion of empirical data for varying amounts cannabis plant material needed to manufacture different forms of medical cannabis medicine.        
    3. Revisions to licensing requirements for MCP LNPP’s
      1. Plant count for patients & producers properly structured and increased.
      2. Cannabis CBD strains at ratio of;  1.5 thc (or lower) : 1 cbd (or higher) not counted against patient/caregiver or LNPP allowable plant count.
      3. Clones and Cuttings provided to qualified patient / caregiver with a PPL by a LNPP’s not counted against LNPP allowable plant count.
      4. Plant Count that is based on ratio of patients to serve AND inclusion of empirical data for varying amounts cannabis plant material needed to manufacture different forms of medical cannabis medicine.  
        1. Patient / Caregiver PPL plant count increased to allow for 6 immature seedlings /clones / cuttings, 6 plants in vegetative stage, and 6 plants in flowering stage for total of 18 cannabis plants.
        2. The addition of Cooperative/Collective PPL’s
        3. LNPP Plant Count maximum ratio of 3 cannabis plants per enrolled patient. Based on yearly program totals. Thus; 30,000 patients x 3 cannabis plants  = 90,000 cannabis plants / 35 LNPP = 2,571.43 max allowable cannabis plants per LNPP. ( Minimum standard set by MCAB )       
      5. Licensing fee structure changed and lowered.
      6. Licensure Limit Established: LNPP 1 Grow Location : 3 Store Fronts
      7. Time Period for new producers to open; 90 days Expected / Letter sent given final 45 days before forfeiture of license.
      8. Certification and/or medical standards established for dispensary staff.
    4. Proper administering of LECUA protections – Section 4.
      Section 4 of the Law: Exemptions from Criminal and Civil Penalties for the Medical Use of Cannabis.  This aspect has been greatly neglected for the Parents as Patients in the program, who have children. And the many concerns and fears they have that have not been addressed by the Department of Health.
    5. Increasing the types of qualifying health conditions in the State’s Medical Cannabis Program to ensure safe access for one’s own health and well being.
    6. Removal of: 7.34.4.8 L Maximum Concentration of THC in Concentrates
    7. Removal of the 2015 change to PPL Application to be compliant with HIPPA and the intent of the LECUA
    8. Presumptive eligibility and once a patient is accepted into the program,  registry and PPL identification cards should be set at a 3 – 5 yr renewal basis. The Department can then do yearly address verification by mail all while maintaining safe access to medical cannabis.
      1. Recognition of nonresident medical cannabis cards.
    9. Advise, Inform,  Educate the Department of Health and INCREASE MEMBERSHIP of the Medical Cannabis Advisory Board. I think it is clear the Department of Health needs to be directed by lawmakers to update the Medical Cannabis Advisory Board, to consist of 12 members to be appointed by the Director and reviewed by this Committee. A quorum of the advisory board shall consist 6 members.
    10. Advocate for House Bill 466 to be brought back ( D. Armstrong in 2015 ) to provide for medical cannabis research, medical cannabis research board, & medical cannabis research fund. ( For the MCP )
    11. Proper decriminalization & legalization of cannabis in the State of New Mexico by providing education and information through scientific research and medical research to State Legislators & Agencies with an active hand in writing legislation that protects & benefits the Medical Program.

Lynn & Erin Compassionate Use Act Patient’s Coalition of New Mexico ~ A GrassRoots Movement!
UNITE-NETWORK-GROW-INFORM-KNOW-EDUCATE-ACTIVISM-VOTE-HEALTH-WELLNESS
(All Rights Reserved 04/20/2016)


LECUA_thc_cbd.png

1 HOUSE BILL
52ND LEGISLATURE – STATE OF NEW MEXICO – SECOND SPECIAL SESSION, 2016

                               INTRODUCED BY
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  1. 10  AN ACT
  2. 11  RELATING TO CANNABIS; ENACTING THE CANNABIS REVENUE AND FREEDOM
  3. 12  ACT; ENACTING THE CANNABIS TAX ACT; PROVIDING DUTIES AND POWERS
  4. 13  OF THE REGULATION AND LICENSING DEPARTMENT, THE TAXATION AND
  5. 14  REVENUE DEPARTMENT, THE NEW MEXICO DEPARTMENT OF AGRICULTURE
  6. 15  AND THE DEPARTMENT OF HEALTH; REVISING THE LYNN AND ERIN
  7. 16  COMPASSIONATE USE ACT AND OTHER SECTIONS OF LAW RELATED TO
  8. 17  MARIJUANA; CREATING THE SUBSTANCE ABUSE PREVENTION FUND AND THE
  9. 18  STATE POLICE SUPPORT FUND; PROVIDING PENALTIES; MAKING
  10. 19  APPROPRIATIONS.

20

  1. 21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
  2. 22  SECTION 1. [NEW MATERIAL] SHORT TITLE.–Sections 1
  3. 23  through 45 of this act may be cited as the “Cannabis Revenue
  4. 24  and Freedom Act”.
  5. 25  SECTION 2. [NEW MATERIAL] PURPOSE.–The purpose of the
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Cannabis Revenue and Freedom Act is:
A. to eliminate problems caused by the prohibition
and uncontrolled manufacture, possession and delivery of
marijuana within New Mexico;
           B.  to protect the peace, health, safety and welfare
of the people of this state by prioritizing the state's limited
law enforcement resources in the most effective, consistent and
rational way;
           C.  to allow a person who is licensed by this state
to legally manufacture and sell marijuana to a person who is
twenty-one years of age or older, subject to the provisions of
that act;
           D.  to provide for the New Mexico department of
agriculture to issue industrial hemp licenses and agricultural
hemp seed production permits;
           E.  to establish a comprehensive regulatory
framework relating to marijuana; and
           F.  together with existing provisions of law, to

prevent:

                (1)  the distribution of marijuana to a person
who is younger than twenty-one years of age;
                (2)  revenue from the sale of marijuana from
going to criminal enterprises, gangs and cartels;
to other states;
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(3)  the diversion of marijuana from this state
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                (4)  legal marijuana activity from being used
as a cover or pretext for the trafficking of illegal drugs or
for other illegal activity;
(5) violence and the use of firearms in the
cultivation and distribution of marijuana;
(6) impaired driving and the exacerbation of
other adverse public health consequences that are associated
with the use of marijuana;
                (7)  the growing of marijuana on public land
and the attendant public safety and environmental dangers posed
by marijuana production on public land; and
(8) the possession and use of marijuana on

federal property.
SECTION 3. [NEW MATERIAL] DEFINITIONS.–As used in the

Cannabis Revenue and Freedom Act:
A. "agricultural hemp seed" means seed of the plant
of the genus Cannabis that is intended for sale or is sold to
or purchased by a licensed grower for planting;
           B.  "consumer" means a person who purchases,
acquires, owns, holds or uses marijuana items for a purpose
other than resale;
           C.  "crop" means a contiguous field of industrial
hemp grown pursuant to a single license;
           D.  "department" means the regulation and licensing
department;
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           E.  "financial consideration" means the value that
is given or received, directly or indirectly, through sales,
barter, trade, fees, charges, dues, contributions or donations,
but does not mean the value in homegrown marijuana or homemade
marijuana products that are grown or made by another person;
           F.  "grower" means a person that produces industrial

hemp;

           G.  "handler" means a person that receives
industrial hemp for processing into commodities, products or
agricultural hemp seeds;
           H.  "homegrown" or "homemade" means grown or made by
a person who is twenty-one years old or older for noncommercial
purposes;
           I.  "household" means a housing unit and includes
any place in or around the housing unit at which an occupant of
the housing unit produces, processes, keeps or stores homegrown
marijuana or homemade marijuana products;
           J.  "housing unit" means a house, an apartment, a
mobile home, a group of rooms or a single room that is occupied
as separate living quarters in which an occupant lives and eats
separately from any other persons in the building who do not
occupy the same housing unit, and which unit includes direct
access from the outside of the building or through a common
hall;
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K. “immature marijuana plant” means a marijuana -4-
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plant with no observable flowers or buds;
L. "industrial hemp":
                (1)  means:
(a) all non-seed parts and varieties of
the plant of the genus Cannabis, whether growing or not, that
contain a crop-wide average tetrahydrocannabinol concentration
that does not exceed three-tenths percent on a dry weight
basis; and
                      (b)  any Cannabis sativa seed that is
part of a growing crop, is retained by a grower for future
planting or is for processing into or use as agricultural hemp
seed; and
                (2)  does not mean industrial hemp commodities
or products;
M. "license" means a license issued pursuant to the
Cannabis Revenue and Freedom Act;
N. "licensed premises" means a location that is
licensed pursuant to the Cannabis Revenue and Freedom Act and
includes:
                (1)  all enclosed public and private areas at
the location that are used in the business operated pursuant to
a license at the location, including offices, kitchens,
restrooms and storerooms;
                (2)  all areas outside of a building that the
department has specifically licensed for the production,
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  1. 1  processing, wholesale sale or retail sale of marijuana items;
  2. 2  and
  3. 3  (3) with respect to a location that the
  4. 4  department has specifically licensed for the production of
  5. 5  marijuana outside of a building, the entire unit of land that
  6. 6  is created by subdivision or partition of land that the
  7. 7  licensee owns, leases or has a right to occupy;
  8. 8  O. “licensee” means a person who holds a license;
  9. 9  P. “licensee representative” means an owner,
  10. 10  director, officer, manager, employee, agent or other
  11. 11  representative of a licensee, to the extent that the person
  12. 12  acts in a representative capacity;
  13. 13  Q. “marijuana” means all parts of the plant
  14. 14  cannabis, including any and all varieties, species and
  15. 15  subspecies of the genus Cannabis, whether growing or not, but
  16. 16  does not mean marijuana extracts, industrial hemp or industrial
  17. 17  hemp commodities or products;
  18. 18  R. “marijuana consumption area” means an area
  19. 19  within a marijuana retailer’s licensed premises where marijuana
  20. 20  items may be consumed;
                     S.  "marijuana extract" means a product obtained by
    separating resins from marijuana by solvent extraction, using
    solvents other than vegetable glycerin, such as butane, hexane,
    isopropyl alcohol, ethanol or carbon dioxide;
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the marijuana plant;
U. "marijuana items" means marijuana, marijuana
products and marijuana extracts;
V. "marijuana leaves" means only the leaves of the
marijuana plant;
W. "marijuana processor" means a person who
processes marijuana items in this state;
X. "marijuana producer" means a person who produces
marijuana in this state;
Y. "marijuana products" means products that contain
marijuana or marijuana extracts and that are intended for human
consumption, but does not mean marijuana by itself or a
marijuana extract by itself;
           Z.  "marijuana retailer" means a person who sells
marijuana items to a consumer in this state;
           AA.  "marijuana wholesaler" means a person who
purchases marijuana items in this state for resale in this
state to a person other than a consumer;
           BB.  "mature marijuana plant" means a marijuana
plant that is not an immature marijuana plant;
           CC.  "noncommercial" means not dependent or
conditioned upon the provision or receipt of financial
consideration;
           DD.  "person" means an individual, corporation,
business trust, estate, trust, partnership, limited liability
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company, association, joint venture or any legal or commercial
entity;
           EE.  "personal production license" means "personal
production license" as that phrase is defined in the Lynn and
Erin Compassionate Use Act;
           FF.  "processes":
(1) means:
                      (a)  the processing, compounding or
conversion of marijuana into marijuana products or marijuana

extracts;

                      (b)  the processing, compounding or
conversion of marijuana, either directly or indirectly, by
extraction from substances of natural origin or independently
by means of chemical synthesis or by a combination of
extraction and chemical synthesis;
                      (c)  the packaging or repackaging of
marijuana items; and
                      (d)  the labeling or relabeling of a
package or container of marijuana items; and
                (2)  does not mean:
(a) the drying of marijuana by a
marijuana producer, if the marijuana producer is not otherwise
processing marijuana; or
                      (b)  the packaging and labeling of
marijuana by a marijuana producer in preparation for delivery
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  1. 1  to a marijuana processor;
  2. 2  GG. “produces” means the manufacture, planting,
  3. 3  cultivation, growing or harvesting of marijuana, but does not
  4. 4  include:
  5. 5  (1) the drying of marijuana by a marijuana
  6. 6  processor, if the marijuana processor is not otherwise
  7. 7  producing marijuana; or
  8. 8  (2) the cultivation and growing of an immature
  9. 9  marijuana plant by a marijuana processor, marijuana wholesaler
  10. 10  or marijuana retailer if the marijuana processor, marijuana
  11. 11  wholesaler or marijuana retailer purchased or otherwise
  12. 12  received the plant from a licensed marijuana producer;
  13. 13  HH. “public place” means a place to which the
  14. 14  general public has access and includes hallways, lobbies and
  15. 15  other parts of apartment houses and hotels that do not
  16. 16  constitute rooms or apartments designed for actual residence;
  17. 17  highways; streets; schools; places of amusement; parks;
  18. 18  playgrounds; and places used in connection with public
  19. 19  passenger transportation;
  20. 20  II. “qualified patient” means “qualified patient”
           as that phrase is defined in the Lynn and Erin Compassionate
    Use Act; and
                     JJ.  "usable marijuana" means dried marijuana
    flowers and dried marijuana leaves and any mixture or
    preparation of those flowers or leaves.
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SECTION 4. [NEW MATERIAL] LIMITATIONS–EXEMPTIONS– PERMISSIBLE CONDUCT.–The Cannabis Revenue and Freedom Act shall not:

           A.  be construed to:
(1) amend or affect in any way a state or
federal law pertaining to employment matters;
(2) amend or affect in any way a state or
federal law pertaining to landlord-tenant matters;
(3) prohibit a recipient of or an applicant
for a federal grant from prohibiting the manufacture,
possession, delivery or use of marijuana items to the extent
necessary to satisfy the federal grant's requirements;
                (4)  prohibit a party or a person applying to
be a party to a federal contract from prohibiting the
manufacture, possession, delivery or use of marijuana items to
the extent necessary to comply with the contract terms and
conditions or to satisfy the federal contract's requirements;
                (5)  require a person to violate a federal law;
                (6)  exempt a person from a federal law or
obstruct the enforcement of a federal law;
                (7)  amend or affect in any way the Lynn and
Erin Compassionate Use Act; or
                (8)  amend or affect the duties or powers of
the department of heath pursuant to the Lynn and Erin
Compassionate Use Act; or
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           B.  apply to:
(1) the production, processing, keeping or
storing of homegrown marijuana at a household by one or more
persons who are twenty-one years of age or older, if the total
of homegrown marijuana at the household does not exceed four
marijuana plants and eight ounces of usable marijuana at any
given time;
of homemade
persons who
of homemade
at any given time:
    (2)  the making, processing, keeping or storing
marijuana products at a household by one or more
are twenty-one years of age or older, if the total
marijuana products at the household does not exceed
                      (a) sixteen ounces in solid form; or
                      (b) seventy-two ounces in liquid form;
(3) the delivery for noncommercial purposes by
a person who is twenty-one years of age or older to another
person who is twenty-one years of age or older of not more than
one ounce of homegrown marijuana at any given time;
                (4)  the delivery for noncommercial purposes by
a person who is twenty-one years of age or older to another
person who is twenty-one years of age or older of:
(a) not more than sixteen ounces, at any
given time, of homemade marijuana products in solid form; or
(b) not more than seventy-two ounces, at
any given time, of homemade marijuana products in liquid form;
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or

                (5)  a person, with respect to that person's
conduct, that is within the scope of and in compliance with the

Lynn and Erin Compassionate Use Act.
SECTION 5. [NEW MATERIAL] DEPARTMENT–DUTIES–POWERS.–

           A.  The department shall:
(1) regulate the production, processing, sale,
purchase, transportation and delivery of marijuana items in
accordance with the provisions of the Cannabis Revenue and
Freedom Act;
                (2)  issue, refuse, suspend or cancel licenses
for the production, processing or sale of marijuana items;
                (3)  as necessary, assist with the
investigation and prosecution of violations of state law
related to marijuana items;
(4) in consultation with the New Mexico
department of agriculture and the department of health, adopt
rules and prescribe forms necessary to implement the provisions
of the Cannabis Revenue and Freedom Act;
                (5)  prohibit all advertisement of marijuana
items by licensed marijuana producers, marijuana processors,
marijuana wholesalers or marijuana retailers;
(6) require documentation of the source of
production for all marijuana items;
(7) require all marijuana items to be labeled
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with the items' tetrahydrocannabinol concentration;
(8) regulate the use of marijuana items for
scientific, pharmaceutical, manufacturing, mechanical,
industrial and other purposes;
                (9)  until June 30, 2019, restrict the number
of marijuana plants that a marijuana producer may possess at
any given time to:
                      (a)  one thousand between July 1, 2017
and June 30, 2018; and
                      (b)  two thousand between July, 1, 2018
and June 30, 2019;
(10) provide that a person who is a qualified
patient and who holds a personal production license issued in
accordance with the Lynn and Erin Compassionate Use Act may
sell those mature marijuana plants that the person possesses in
accordance with the person's personal production license to a
marijuana producer, and that the marijuana producer may then
sell those plants in accordance with applicable law and rules;
and
                (11)  on or before January 1, 2018:
(a) examine available research and
conduct or commission any additional research necessary to
investigate the influence of marijuana items on a person's
ability to drive a vehicle and on the concentration of delta-9
tetrahydrocannabinol in a person's blood, taking into account
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all relevant factors; and
(b) present the results of the
department's examination to the appropriate legislative interim
committees and make recommendations to the legislature
regarding any appropriate amendments to the Motor Vehicle Code.
           B.  Except as provided in the Cannabis Revenue and
Freedom Act, the department shall not purchase, own, sell or
possess any marijuana items
           C.  The department may:
(1) allow the transfer of a license issued by
the department; and
(2) for the purpose of preventing the resale
of marijuana items, limit the quantity of marijuana items
purchased at any one time by a consumer.
           D.  Money collected by the department for license
fees is appropriated to the department for administrative
purposes.

SECTION 6. [NEW MATERIAL] NEW MEXICO DEPARTMENT OF AGRICULTURE–DUTIES–POWERS.–

           A.  The New Mexico department of agriculture shall:
(1) cooperate with the department and the
department of health to the extent necessary for each
department to carry out powers and duties pursuant to the
Cannabis Revenue and Freedom Act;
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(2)  regulate industrial hemp production and
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possession and regulate commerce in industrial hemp commodities
and products in this state;

(3) issue, refuse, suspend or cancel industrial hemp licenses and agricultural hemp seed production
permits;
(4) make information that identifies sellers of agricultural hemp seed available to growers; and

                (5)  promulgate rules necessary to carry out
duties pursuant to that act.
           B.  The New Mexico department or agriculture may:
(1) establish labeling, quality and

other necessary standards applicable to agricultural hemp seed; (2) with at least three days’ notice and during normal business hours, inspect or audit records required

to be kept by growers and
compliance with:
                      (a)
and Freedom Act and rules
department of agriculture
                      (b)
agricultural hemp seed production permit requirements; or

(c) orders by the New Mexico department of agriculture regarding growers’ or handlers’ operations or

handlers for the purpose of ensuring
 provisions of the Cannabis Revenue
promulgated by the New Mexico
pursuant to that act;
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(3) inspect any crop during the crop growth – 15 –
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phase and take a representative composite sample for field
analysis;

(4) detain, seize or embargo a crop if the crop contains an average tetrahydrocannabinol concentration
exceeding three-tenths percent on a dry weight basis;
(5) charge growers and handlers reasonable

fees;
(6) refuse, suspend or cancel an industrial hemp license or an agricultural hemp seed production permit for

a violation of the Cannabis Revenue and Freedom Act;
(7)
impose a civil penalty for a violation
  1. (a)  a license or permit requirement,
  2. (b)  New Mexico department of agriculture
of:
term or condition;
rules relating to growing or handling industrial hemp; or
(c) orders by the New Mexico department of agriculture regarding growers’ or handlers’ operations or

activities; and
                (8)  refuse, suspend or cancel an industrial
hemp license or an agricultural hemp seed production permit for
violation of any New Mexico department of agriculture rule
relating to agricultural operations or activities.
           C.  The New Mexico department of agriculture shall
not impose a civil penalty pursuant to the Cannabis Revenue and
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  1. 1  Freedom Act that exceeds two thousand five hundred dollars
  2. 2  ($2,500). The provisions of the Administrative Procedures Act
  3. 3  shall apply when the New Mexico department of agriculture
  4. 4  imposes a penalty pursuant to the Cannabis Revenue and Freedom
  5. 5  Act.
  6. 6  D. Money collected by the New Mexico department of
  7. 7  agriculture for industrial hemp license fees and agricultural
  8. 8  hemp seed production permit fees is appropriated to the New
  9. 9  Mexico department of agriculture for administrative purposes.
  10. 10  SECTION 7. [NEW MATERIAL] DEPARTMENT OF HEALTH–
  11. 11  DUTIES.–The department of health shall cooperate with the
  12. 12  department and the New Mexico department of agriculture to the
  13. 13  extent necessary for each department to carry out powers and
  14. 14  duties pursuant to the Cannabis Revenue and Freedom Act.
  15. 15  SECTION 8. [NEW MATERIAL] NO LIABILITY FOR OFFICIAL
  16. 16  ACTS.–Except as otherwise provided by law, the department, the
  17. 17  New Mexico department of agriculture and the department of
  18. 18  health shall not be sued for performing or failing to perform
  19. 19  duties pursuant to the Cannabis Revenue and Freedom Act.
  20. 20  SECTION 9. [NEW MATERIAL] DUTIES OF DEPARTMENTS–FEDERAL
  21. 21  LAW–CONTRACT ENFORCEABILITY.–
  22. 22  A. The department, the taxation and revenue
  23. 23  department, the New Mexico department of agriculture and the
  24. 24  department of health shall not refuse to perform any duty
  25. 25  provided in the Cannabis Revenue and Freedom Act on the basis
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  1. 1  that manufacturing, distributing, dispensing, possessing or
  2. 2  using marijuana is prohibited by federal law.
  3. 3  B. The department and the New Mexico department of
  4. 4  agriculture shall not refuse, suspend or cancel a license or an
  5. 5  agricultural hemp seed production permit on the basis that
  6. 6  manufacturing, distributing, dispensing, possessing or using
  7. 7  marijuana is prohibited by federal law.
  8. 8  C. A contract shall not be deemed unenforceable on
  9. 9  the basis that manufacturing, distributing, dispensing,
  10. 10  possessing or using marijuana is prohibited by federal law.
  11. 11  SECTION 10. [NEW MATERIAL] INDUSTRIAL HEMP LICENSE–
  12. 12  AGRICULTURAL HEMP SEED PRODUCTION PERMIT.–
  13. 13  A. Industrial hemp production and possession and
  14. 14  commerce in industrial hemp commodities and products are
  15. 15  authorized in New Mexico. Industrial hemp and agricultural
  16. 16  hemp seed are agricultural products that are subject to
  17. 17  regulation by the New Mexico department of agriculture.
  18. 18  B. All growers and handlers shall hold an
  19. 19  industrial hemp license issued by the New Mexico department of
  20. 20  agriculture. A grower or handler who is engaged in the
  21. 21  production of agricultural hemp seed shall also hold an
  22. 22  agricultural hemp seed production permit issued by the New
  23. 23  Mexico department of agriculture.
  24. 24  C. A person who seeks an industrial hemp license or
           an agricultural hemp seed production permit shall submit an
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application to the New Mexico department of agriculture that
includes:
                (1)  the applicant's name and address;
                (2)  the name and address of the applicant's
industrial hemp operation;
                (3)  the latitude and longitude and legal
description for the property to be used for industrial hemp

production;

                (4)  if the application is submitted by a
grower, information sufficient to establish that the
applicant's crop will be at least two and one-half acres in
size; and
                (5)  any other information required by New
Mexico department of agriculture rules.
           D.  An industrial hemp license or agricultural hemp
seed production permit is valid for three years once issued and
may be renewed as provided by New Mexico department of
agriculture rules. The license or permit is a personal
privilege that is not transferable.
           E.  An agricultural hemp seed production permit
allows a grower or handler to produce and handle agricultural
hemp seed for sale to licensed industrial hemp growers and
handlers. An agricultural hemp seed seller shall ensure that
the seller's seed complies with standards established by the
New Mexico department of agriculture.
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  1. 1  F. Subject to New Mexico department of agriculture
  2. 2  rules, a grower may, without an agricultural hemp seed
  3. 3  production permit, retain seed from each crop to ensure a
  4. 4  sufficient seed supply for the grower’s use in the following
  5. 5  year. Seed retained by a grower shall not be sold or
  6. 6  transferred and shall not be required to meet New Mexico
  7. 7  department of agriculture standards relating to agricultural
  8. 8  hemp seed.
  9. 9  G. The Administrative Procedures Act shall apply to
  10. 10  the refusal, suspension or cancellation of an industrial hemp
  11. 11  license or an agricultural hemp seed production permit.
  12. 12  H. The New Mexico department of agriculture shall
  13. 13  not refuse, suspend or cancel an industrial hemp license or an
  14. 14  agricultural hemp seed production permit on the basis that
  15. 15  industrial hemp production or possession or commerce in
  16. 16  industrial hemp commodities or products is prohibited by
  17. 17  federal law.
  18. 18  SECTION 11. [NEW MATERIAL] DEPARTMENT REGULATION–
  19. 19  LICENSES REQUIRED.–The department shall regulate the:
  20. 20  A. production of marijuana. A marijuana producer
  21. 21  shall hold a production license issued by the department for
  22. 22  the licensed premises at which the marijuana is produced;
  23. 23  B. processing of marijuana items. A marijuana
  24. 24  processor shall possess a processor license issued by the
           department for the licensed premises at which marijuana items
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  1. 1  are processed;
  2. 2  C. wholesale sale of marijuana items. A marijuana
  3. 3  wholesaler shall possess a wholesale license issued by the
  4. 4  department for the licensed premises at which marijuana items
  5. 5  are received, kept, stored or delivered;
  6. 6  D. retail sale of marijuana items. A marijuana
  7. 7  retailer shall possess a retail license issued by the
  8. 8  department for the licensed premises on which marijuana items
  9. 9  are sold; and
  10. 10  E. retail sale of marijuana items for consumption
  11. 11  on a marijuana retailer’s licensed premises. A marijuana
  12. 12  retailer that sells and allows the consumption of marijuana
  13. 13  items in a marijuana consumption area on the retailer’s
  14. 14  licensed premises shall possess an on-site consumption
  15. 15  endorsement to the retailer’s retail license.
  16. 16  SECTION 12. [NEW MATERIAL] DEPARTMENT LICENSING
  17. 17  DUTIES.–The department shall:
  18. 18  A. beginning July 1, 2017, accept applications for
  19. 19  licenses to produce, process and sell marijuana items within
  20. 20  the state from producers already licensed pursuant to the Lynn
  21. 21  and Erin Compassionate Use Act;
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  1. 22  B. beginning July 1, 2019, accept applications for
  2. 23  licenses to produce, process and sell marijuana items within
  3. 24  the state;

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C.  issue licenses pursuant to the Cannabis Revenue
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  1. 1  and Freedom Act, subject to the provisions of that act and
  2. 2  rules promulgated pursuant to that act;
  3. 3  D. not unreasonably delay the processing of
  4. 4  applications or the issuance of licenses; and
  5. 5  E. not approve a licensed premises that does not
  6. 6  have defined boundaries or a licensed premises that is mobile;
  7. 7  provided that the department may require that a licensed
  8. 8  premises be enclosed by a wall, fence or other structure as a
  9. 9  condition of issuing or renewing a license.
  10. 10  SECTION 13. [NEW MATERIAL] LICENSE APPLICATION–TERMS–
  11. 11  FEES.–
  12. 12  A. An application for a new or renewed license
  13. 13  issued by the department shall be submitted to the department
  14. 14  upon a department-prescribed application form. The application
  15. 15  shall include the applicant’s name and address, the location of
  16. 16  the place of business that is to be operated pursuant to the
  17. 17  license and any other information required by the department.
  18. 18  B. A license shall not be issued or renewed unless
  19. 19  the applicant has complied with the provisions of the Cannabis
  20. 20  Revenue and Freedom Act and rules promulgated pursuant to that
  21. 21  act.
  22. 22  C. All licenses issued or renewed by the department
  23. 23  shall be issued or renewed for a period of one year, except
  24. 24  that a license that is issued to an applicant for the first
           time may be issued for less than one year.  The fee for a
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  1. 1  license that is issued for less than one year shall be the
  2. 2  annual license fee provided in this section.
  3. 3  D. The department may deny an application that is
  4. 4  not submitted on the form prescribed by the department. If a
  5. 5  application is denied pursuant to this subsection, the
  6. 6  department shall provide the applicant an opportunity to be
  7. 7  heard. A hearing held pursuant to this subsection is not
  8. 8  subject to the Administrative Procedures Act.
  9. 9  E. Notwithstanding the provisions of Subsections B
  10. 10  and C of this section, the department’s cancellation of or
  11. 11  denial of an application for a license is subject to the
  12. 12  Administrative Procedures Act.
  13. 13  F. The department shall assess a nonrefundable fee
  14. 14  not greater than five hundred dollars ($500) for processing an
  15. 15  application for a new or renewal license.
  16. 16  G. For a new or renewal processor license,
  17. 17  wholesale license or retail license, the department shall
  18. 18  charge an annual license fee of not more than two thousand
  19. 19  dollars ($2,000).
  20. 20  H. For a new or renewal production license, the
           department shall charge an annual license fee of:
    (1) fifteen thousand dollars ($15,000), if the
           producer will possess up to one hundred fifty marijuana plants;
    and
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($5,000) for each additional fifty marijuana plants the
producer will possess; provided, however, that the maximum fee
charged for a new or renewal production license shall not
exceed forty-five thousand dollars ($45,000).
           I.  The annual license fees provided for in this
section are nonrefundable and shall be paid by an applicant
upon the issuance of a license.

SECTION 14. [NEW MATERIAL] GROUNDS FOR DENYING A LICENSE APPLICATION.–

           A.  The department shall not issue a license to an
applicant who is younger than twenty-one years of age.
           B.  The department may deny an application for a
license if the department reasonably believes:
                (1)  that there are sufficient licensed
premises in the locality set out in the application or that
issuing a license in the locality set out in the application is
not demanded by public interest or convenience. In determining
whether there is a sufficient number of licensed premises in a
locality, the department shall consider seasonal fluctuations
in the locality's population and the needs of the locality
during the peak seasons; or
                (2)  that the applicant:
(a) uses alcoholic beverages, habit-
forming drugs, marijuana items or controlled substances to
excess;
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(b)  has made false statements to the
department;
                      (c)  is incompetent or otherwise unable
to carry on the management of the business proposed to be

licensed;

                      (d)  notwithstanding the provisions of
Subsection C of this section, has been convicted of violating a
federal law or the law of any state or any local government if
the conviction is substantially related to the applicant's
fitness and ability to lawfully carry out activities pursuant
to the license;
establishment;
character;
(e)  has failed to maintain a sanitary
(f) is not of good repute and moral
(g) has a record of noncompliance with
the Cannabis Revenue and Freedom Act or rules promulgated
pursuant to that act;
                      (h)  is not the owner of the business
proposed to be licensed or that additional ownership interests
in the business proposed to be licensed have not been
disclosed;
                      (i)  has not demonstrated the financial
responsibility necessary for the business proposed to be
licensed; or
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                      (j)  is unable to understand provisions
of the Cannabis Revenue and Freedom Act or other laws or rules
relating to marijuana and marijuana items.
C. In determining whether the department may deny
an application for a license, the department shall not consider
the prior conviction of the applicant or any owner, director,
officer, manager, employee, agent or other representative of
the applicant for:
                (1)  the manufacture of marijuana, if:
(a) the date of the conviction is more
than five years before the date of the application; and
(b) the person has not been convicted
more than once for the manufacture or delivery of marijuana;
                (2)  the delivery of marijuana to a person who
was twenty-one years of age or older at the time of the
delivery, if:
                      (a)  the date of the conviction is more
than five years before the date of the application; and
                      (b)  the person has not been convicted
more than once for the manufacture or delivery of marijuana; or

(3) the possession of marijuana.
SECTION 15. [NEW MATERIAL] GROUNDS FOR SUSPENDING OR

CANCELING A LICENSE.--The department may suspend or cancel a
license if the department finds or reasonably believes:
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  1. 1  (1) has violated a provision of the Cannabis
  2. 2  Revenue and Freedom Act or a rule promulgated pursuant to that
  3. 3  act;
  4. 4  (2) has made a false representation or
  5. 5  statement to the department to induce or prevent action by the
  6. 6  department;
  7. 7  (3) has maintained an unsanitary
  8. 8  establishment;
  9. 9  (4) is insolvent, incompetent or otherwise
  10. 10  unable to manage the licensee’s establishment;
  11. 11  (5) uses alcoholic beverages, habit-forming
  12. 12  drugs, marijuana items or controlled substances to excess;
  13. 13  (6) has misrepresented a marijuana item sold
  14. 14  by the licensee to a customer or to the public; or
  15. 15  (7) after receiving a license, is convicted of
  16. 16  a felony or of violating any state law relating to marijuana or
  17. 17  marijuana items or is convicted of a misdemeanor or violation
  18. 18  of a municipal ordinance, if that violation is committed on the
  19. 19  licensed premises; or
  20. 20  B. that there is any other reason that, in the
department's opinion and based on public convenience or
necessity, warrants canceling or suspending a license.
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SECTION 16. [NEW MATERIAL] LIMITATION ON CIVIL AND
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or marijuana retailer or a licensee representative of one of
those licensees may produce, possess and deliver marijuana
items subject to the provisions of the Cannabis Revenue and
Freedom Act, and such production, possession or delivery of
marijuana items shall not constitute a criminal or civil
offense pursuant to New Mexico law.

SECTION 17. [NEW MATERIAL] CHARACTERISTICS OF A LICENSE– MULTIPLE LICENSES.–

           A.  A license issued by the department shall:
(1) be a purely personal privilege;
(2) be valid only for the period stated on the

license;

                (3)  be transferred from the licensed premises
for which the license was issued to another location only as
provided for in the Cannabis Revenue and Freedom Act, rules
promulgated pursuant to that act and any relevant municipal
ordinance or local regulation;
                (4)  be void upon the licensee's death, except
as provided in Subsection B of this section;
                (5)  not constitute property;
(6) not be alienable;
(7) not be subject to attachment or execution;

and

                (8)  not descend by the laws of testate or
intestate devolution.
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           B.  The department may provide for procedures and
conditions under which:
                (1)  marijuana items left by a deceased,
insolvent or bankrupt person or licensee, or marijuana items
that are subject to a security interest, may be foreclosed,
sold under execution or otherwise disposed of;
                (2)  the business of a deceased, insolvent or
bankrupt licensee may be operated for a reasonable period
following the death, insolvency or bankruptcy; and
(3) a business licensed by the department
pursuant to the Cannabis Revenue and Freedom Act that is
subject to a security interest may be continued in business by
a secured party for a reasonable period after a debtor's
default on the indebtedness.
           C.  A person may hold more than one production
licence, processor license, wholesale license or retail
licence.

SECTION 18. [NEW MATERIAL] AGE RESTRICTION FOR SALE OR DELIVERY OF MARIJUANA ITEMS–PURCHASER IDENTIFICATION– DEFENSE.–

           A.  A licensed marijuana producer, marijuana
processor, marijuana wholesaler or marijuana retailer or a
licensee representative of one of those licensees shall not
sell or deliver marijuana items to a person who is younger than
twenty-one years of age. If there is a reasonable doubt that a
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person is twenty-one years of age or older, before selling or
delivering marijuana items to the person, a licensee or
licensee representative shall require the person to produce one
of the following forms of identification to verify the person's
age:
                (1)  the person's passport;
                (2)  the person's motor vehicle operator's
license that includes a photograph of the person, whether
issued in this state or in another state;
(3) an identification card issued by the motor
vehicle division of the taxation and revenue department;
(4) a United States military identification

card; or

                (5)  any other identification card that was
issued by a state or an Indian nation, tribe or pueblo that
includes the person's:
(a) photograph;
                      (b)  name;
(c) date of birth; and
(d) physical description.
           B.  A person shall not produce a form of
identification as required by the Cannabis Revenue and Freedom
Act that falsely indicates the person's age.
           C.  In an administrative or criminal prosecution of
a licensee or licensee representative for the sale or delivery
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  1. 1  of marijuana items to a person younger than twenty-one years of
  2. 2  age as prohibited in this section, the licensee or licensee
  3. 3  representative shall not be found to have committed the
  4. 4  relevant violation or crime unless it is demonstrated in the
  5. 5  administrative or criminal proceeding that a reasonable person
  6. 6  would have determined that the form of identification shown to
  7. 7  the licensee or licensee representative and that is offered as
  8. 8  evidence in the prosecution was altered or did not accurately
  9. 9  describe the person to whom the licensee or licensee
  10. 10  representative sold or delivered marijuana items.
  11. 11  SECTION 19. [NEW MATERIAL] DELIVERY OF MARIJUANA
  12. 12  ITEMS.–A marijuana producer, marijuana processor or marijuana
  13. 13  wholesaler may deliver marijuana items only to or on a licensed
  14. 14  premises. The sale of marijuana items pursuant to a retail
  15. 15  license shall be restricted to sales made on the licensed
  16. 16  premises described in the license; provided that deliveries may
  17. 17  be made by the marijuana retailer to consumers pursuant to bona
  18. 18  fide orders received on the licensed premises prior to
  19. 19  delivery.
  20. 20  SECTION 20. [NEW MATERIAL] INSPECTION OF LICENSEE BOOKS
  21. 21  AND LICENSED PREMISES.–
  22. 22  A. The department may:
  23. 23  (1) after seventy-two hours’ notice to the
  24. 24  owner or the owner’s agent, inspect a licensee’s books; and
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of a licensee to determine whether the licensee is in
compliance with the provisions of the Cannabis Revenue and
Freedom Act and rules promulgated pursuant to that act.
           B.  The department shall not require a licensee's
books to be maintained on the licensed premises.

SECTION 21. [NEW MATERIAL] IMPORTING AND EXPORTING MARIJUANA ITEMS PROHIBITED–PENALTIES.–

           A.  Marijuana items shall not be imported into this
state or exported from this state by any licensee or licensee
representative.
           B.  A violation of Subsection A of this section is

a:

                (1)  fourth degree felony if the importation or
exportation is for financial consideration; or
                (2)  misdemeanor if the importation or
exportation is not for financial consideration.

SECTION 22. [NEW MATERIAL] MARIJUANA ITEMS AS A PRIZE PROHIBITED.–Marijuana items shall not be given as a prize, premium or consideration for a lottery, contest, game of chance or skill or competition of any kind.
SECTION 23. [NEW MATERIAL] PROVIDING MARIJUANA ITEMS TO AN INTOXICATED PERSON PROHIBITED–ALLOWING CONSUMPTION OF MARIJUANA ITEMS BY PERSONS WHO ARE YOUNGER THAN TWENTY-ONE YEARS OF AGE PROHIBITED.–

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available a marijuana item to a person who is visibly
intoxicated.
           B.  A person who exercises control over private real
property shall not:
                (1)  knowingly allow a person who is younger
than twenty-one years of age to consume marijuana items on the

property; or

                (2)  allow a person who is younger than twenty-
one years of age and who consumes marijuana items on the
property to remain on that property.
C. Subsection B of this section:
                (1)  applies only to a person who is present
and in control of the location at the time the consumption

occurs; and

                (2)  does not apply to the owner of rental
property, or the agent of an owner of rental property, unless
the consumption occurs in the individual unit in which the
owner or agent resides.

SECTION 24. [NEW MATERIAL] LICENSEE MISREPRESENTATIONS– MAINTENANCE OF DISORDERLY ESTABLISHMENT.–

           A.  A person shall not make false representations or
statements to the department to induce or prevent action by the
department.
           B.  A licensee shall not maintain a noisy, lewd,
disorderly or unsanitary establishment or supply impure or
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otherwise deleterious marijuana items.
C. A licensee shall not misrepresent marijuana

items to any person.
SECTION 25. [NEW MATERIAL] UNDERAGE PERSONS–RESTRICTIONS

ON PURCHASE OF MARIJUANA ITEMS AND PRESENCE ON LICENSED
PREMISES--PENALTIES.--
           A.  A person who is younger than twenty-one years of
age shall not purchase or attempt to purchase marijuana items.
B. Except as authorized by rule or as necessitated
in an emergency, a person who is younger than twenty-one years
of age shall not enter or attempt to enter any portion of a
licensed premises that is posted or otherwise identified as
being prohibited to the use of persons under the age of twenty-
one years of age.
           C.  A person who violates Subsection A or B of this
section is guilty of a misdemeanor.
           D.  In addition to any other penalty established by
law, the court, with respect to a person who violates
Subsection A of this section through the person's
misrepresentation of the person's age:
                (1)  may order the person to perform community

service; and

                (2)  shall order that the person's driving
privileges and right to apply for driving privileges be
suspended for a period not to exceed one year.
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  1. 1  E. If a court issues an order suspending driving
  2. 2  privileges pursuant to Subsection D of this section, the court
  3. 3  in its discretion and upon petition by the person may withdraw
  4. 4  its order at any time.
  5. 5  F. If a person cited for a violation of Subsection
  6. 6  A or B of this section fails to appear in court and if the
  7. 7  person is at least thirteen years of age but younger than
  8. 8  twenty-one years of age at the time the person fails to appear,
  9. 9  in addition to any other penalty, the court shall issue an
  10. 10  order to suspend the person’s driving privileges.
  11. 11  G. The prohibitions in this section do not apply to
  12. 12  a person who is younger than twenty-one years of age who is
  13. 13  acting under the direction of the department or state or local
  14. 14  law enforcement agencies for the purpose of investigating
  15. 15  possible violations of laws prohibiting the sale of marijuana
  16. 16  items to persons who are younger than twenty-one years of age.
  17. 17  SECTION 26. [NEW MATERIAL] COMPLIANCE WITH STANDARDS FOR
  18. 18  MARIJUANA ITEMS.–
  19. 19  A. Marijuana items shall not be sold or offered for
  20. 20  sale unless the marijuana items comply with the minimum
  21. 21  standards established in the Cannabis Revenue and Freedom Act,
  22. 22  rules promulgated pursuant to that act or other state law.
  23. 23  B. The department may require a marijuana producer,
  24. 24  marijuana processor or marijuana wholesaler to provide a
           laboratory analysis that demonstrates to the department's
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satisfaction that particular marijuana items comply with
minimum standards.
           C.  Marijuana items offered for sale shall not be
altered in any way by a person who is not licensed to alter the
items.
           D.  The department may prohibit the sale of
marijuana items for a reasonable period of time while the
department determines whether the marijuana items comply with
established minimum standards.

SECTION 27. [NEW MATERIAL] MISLEADING MARKS OR LABELS– INJURIOUS OR ADULTERATED INGREDIENTS.–

           A.  A licensee shall not use or allow the use of a
mark or label on the container of a marijuana item that is kept
for sale if the container does not precisely and clearly
indicate the nature of its contents or if the mark or label
could deceive a person as to the nature, composition, quantity,
age or quality of the marijuana item.
           B.  The department may prohibit a licensee from
selling any brand of marijuana item that, in the department's
judgment, is deceptively labeled or branded as to the marijuana
item's content or contains injurious or adulterated
ingredients.

SECTION 28. [NEW MATERIAL] EMPLOYMENT–MINIMUM AGE REQUIREMENT.–

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A.  A licensee shall not employ a person who is
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  1. 1  younger than twenty-one years of age in any part of a licensed
  2. 2  premises.
  3. 3  B. During an inspection of a licensed premises, the
  4. 4  department may require proof that a person who is performing
  5. 5  work at the licensed premises is at least twenty-one years of
  6. 6  age. If the person does not provide acceptable proof of age
  7. 7  upon request, the department may require the person to
  8. 8  immediately leave the licensed premises until the department
  9. 9  receives acceptable proof of the person’s age. This subsection
  10. 10  does not apply to a person who is temporarily at the licensed
  11. 11  premises to make a service, maintenance or repair call or for
  12. 12  other purposes independent of operations of the licensed
  13. 13  premises.
  14. 14  C. If a person performing work at a licensed
  15. 15  premises does not provide proof of the person’s age as
  16. 16  requested by the department pursuant to Subsection B of this
  17. 17  section, the department may request that the licensee provide
  18. 18  proof that the person is twenty-one years of age or older. The
  19. 19  licensee’s failure to provide acceptable proof of age as
  20. 20  requested shall be prima facie evidence that the licensee has
allowed the person to perform work at the licensed premises in
violation of the minimum age requirement.
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SECTION 29. [NEW MATERIAL] MATURE MARIJUANA PLANTS.–Only
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representatives may possess or sell a mature marijuana plant.
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SECTION 30. [NEW MATERIAL] RESTRICTION ON THE USE OF MARIJUANA ITEMS IN A PUBLIC PLACE–MARIJUANA RETAILER ON-SITE CONSUMPTION LICENSE ENDORSEMENT.–

           A.  A person shall not use a marijuana item in a
public place except as provided in this section.
           B.  Pursuant to rules promulgated by the department,
a marijuana retailer may apply for an on-site consumption
endorsement to the retailer's marijuana retailer license to
allow the sale of marijuana items for on-site consumption and
the consumption of the marijuana items in a marijuana
consumption area.
           C.  A person may purchase and consume marijuana
items in a marijuana consumption area on the licensed premises
of a marijuana retailer who has been issued an on-site
consumption endorsement.
           D.  A person who violates Subsection A of this
section is guilty of a misdemeanor.

SECTION 31. [NEW MATERIAL] MARIJUANA ITEMS IN A CORRECTIONAL FACILITY PROHIBITED.–

           A.  A person shall not knowingly and voluntarily
carry, transport or deposit a marijuana item in an institution
for the confinement of adult prisoners or in a juvenile
detention facility.
           B.  A person who violates Subsection A of this
section is guilty of a fourth degree felony.
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SECTION 32. [NEW MATERIAL] HOMEGROWN MARIJUANA IN PUBLIC VIEW PROHIBITED.–

           A.  A person shall not produce, process, keep or
store homegrown marijuana or homemade marijuana products if the
homegrown marijuana or homemade marijuana products can be
readily seen by normal unaided vision from a public place.
           B.  A person who violates Subsection A of this
section is guilty of a misdemeanor.

SECTION 33. [NEW MATERIAL] HOMEMADE MARIJUANA EXTRACTS PROHIBITED.–A person shall not produce, process, keep or store homemade marijuana extracts.
SECTION 34. [NEW MATERIAL] INCONSISTENT LOCAL LAWS AND ORDINANCES SUPERSEDED AND REPEALED.–Notwithstanding the provisions of Sections 35 and 36 of the Cannabis Revenue and Freedom Act, the provisions of that act shall operate uniformly throughout the state and shall be superior to and shall supersede all local laws or ordinances that are inconsistent or in conflict with that act. Any conflicting local laws or ordinances are repealed.
SECTION 35. [NEW MATERIAL] LOCAL GOVERNMENT AUTHORITY TO REGULATE MARIJUANA RETAILERS.–

           A.  Municipalities and counties may adopt reasonable
time, place and manner regulations related to nuisance aspects
of a licensed marijuana retailer's business if the municipality
or county makes specific findings that the business would cause
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  1. 1  adverse effects to occur.
  2. 2  B. The authority granted to municipalities and
  3. 3  counties by this section is in addition to the authority
  4. 4  granted to a municipality or county pursuant to its charter,
  5. 5  state laws and the constitution of New Mexico.
  6. 6  SECTION 36. [NEW MATERIAL] LOCAL OPTION ELECTION–SALES
  7. 7  NOT AFFECTED BY LOCAL OPTION.–
  8. 8  A. A municipality with a population greater than
  9. 9  five thousand according to the most recent federal decennial
  10. 10  census, whether or not the county in which that municipality is
  11. 11  situated has held an election provided for in this section, or
  12. 12  a county in the state may prohibit the operation of a licensed
  13. 13  marijuana processor, marijuana producer, marijuana wholesaler
  14. 14  or marijuana retailer upon the following terms and conditions:
  15. 15  (1) at any time after the effective date of
  16. 16  the Cannabis Revenue and Freedom Act, the registered qualified
  17. 17  electors of the municipality or county may petition the
  18. 18  governing body by filing one or more petitions in the
  19. 19  appropriate office to hold an election for the purpose of
  20. 20  determining whether to prohibit the operations of a licensed
  21. 21  marijuana processor, marijuana producer, marijuana wholesaler
  22. 22  or marijuana retailer in the municipality or county. If the
  23. 23  aggregate of the signatures of such electors on all the
  24. 24  petitions equals or exceeds five percent of the number of
           registered voters of the municipality or county, the governing
    .204493.4
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  1. 1  body shall call an election within seventy-five days of the
  2. 2  verification of the petition. The date of the filing of the
  3. 3  petition shall be the date of the filing of the last petition
  4. 4  that brings the number of signatures up to the required five
  5. 5  percent; provided, however, that the governing body shall
  6. 6  refuse to recognize the petition if more than three months have
  7. 7  elapsed between the date of the first signature and the filing
  8. 8  of the last petition necessary to bring the number of
  9. 9  signatures on the petition up to five percent;
  10. 10  (2) the election shall be called, conducted,
  11. 11  counted and canvassed substantially in the manner provided by
  12. 12  law for general elections within the county or special
  13. 13  municipal elections within the municipality, except as
  14. 14  otherwise provided in this section;
  15. 15  (3) the votes at the election shall be
  16. 16  counted, returned and canvassed as provided for in the case of
  17. 17  general elections within the county or special municipal
  18. 18  elections within the municipality;
  19. 19  (4) except as otherwise provided in this
  20. 20  section, contests, recounts and rechecks shall be permitted as
           provided for in the case of candidates for county office in
    general elections or as provided for in the case of special
    municipal elections within the municipality. Applications for
    contests, recounts or rechecks may be filed by any person who
    voted in the election and service shall be made upon the county
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  1. 1  clerk or municipal clerk as the case may be;
  2. 2  (5) if the majority of all of the votes cast
  3. 3  at the election are cast in favor of the prohibition of the
  4. 4  operations of a licensed marijuana processor, marijuana
  5. 5  producer, marijuana retailer or marijuana wholesaler in the
  6. 6  county or municipality, the chair of the governing body shall
  7. 7  declare by order entered upon the records of the county or
  8. 8  municipality that the county or municipality has approved the
  9. 9  prohibition and shall notify the department of the election
  10. 10  results;
  11. 11  (6) no election held pursuant to this section
  12. 12  shall be held within forty-two days of any primary, general,
  13. 13  municipal or school district election. If, within sixty days
  14. 14  from the verification of any petition as provided in Paragraph
  15. 15  (1) of this subsection, a primary, general, municipal or school
  16. 16  election is held, the governing body may call an election for a
  17. 17  day not less than sixty days after the primary, general,
  18. 18  municipal or school election;
  19. 19  (7) if an election is held pursuant to this
  20. 20  section in a county that contains within its limits a
           municipality of more than five thousand persons according to
    the most recent federal decennial census, it is not necessary
    for the registered qualified electors in the municipality to
    file a separate petition asking for a separate or different
    vote on the question of whether to prohibit the operations of a
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  1. 1  licensed marijuana processor, marijuana producer, marijuana
  2. 2  retailer or marijuana wholesaler. The election in the county
  3. 3  shall be conducted so as to separate the votes in the
  4. 4  municipality from those in the remaining parts of the county.
  5. 5  If the majority of the voters in the county, including the
  6. 6  voters in the municipality, vote to prohibit the operations of
  7. 7  a licensed marijuana processor, marijuana producer, marijuana
  8. 8  retailer or marijuana wholesaler, the county shall not allow
  9. 9  the prohibited operations; but if the majority of the votes in
  10. 10  the municipality are in favor of allowing the operations of a
  11. 11  licensed marijuana processor, marijuana producer, marijuana
  12. 12  retailer or marijuana wholesaler, the municipality shall have
  13. 13  allowed the approved operations in the municipality. Nothing
  14. 14  contained in this paragraph shall prevent any municipality from
  15. 15  having a separate election under the terms of this section; and

16

  1. 17  (8) any county or municipality that has voted
  2. 18  to prohibit the operations of a licensed marijuana processor,
  3. 19  marijuana producer, marijuana retailer or marijuana wholesaler
  4. 20  may vote to discontinue the prohibition and to allow the
           previously prohibited operations in that county or
    municipality; the discontinuance shall become effective on the
    ninetieth day after the local option election is held as
    provided for in this paragraph.
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B.  The provisions of Subsection A of this section
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  1. 1  shall not prevent a person who resides in a municipality or
  2. 2  county that has elected to prohibit the operations of a
  3. 3  licensed marijuana processor, marijuana producer, marijuana
  4. 4  retailer or marijuana wholesaler from possessing marijuana
  5. 5  items that were purchased from licensed marijuana retailers for
  6. 6  the person’s personal use.
  7. 7  SECTION 37. [NEW MATERIAL] ENFORCEMENT–DUTY OF LAW
  8. 8  ENFORCEMENT OFFICERS.–The state and local law enforcement
  9. 9  officers in the state shall enforce the Cannabis Revenue and
  10. 10  Freedom Act and shall assist the department with identifying
  11. 11  violations of that act and with apprehending offenders. Any
  12. 12  state or local law enforcement officer that has notice or
  13. 13  knowledge of or reasonable belief regarding a violation of that
  14. 14  act shall immediately notify the district attorney and provide
  15. 15  the district attorney with the names and addresses of any
  16. 16  witnesses to the violation and other information related to the
  17. 17  violation.
  18. 18  SECTION 38. [NEW MATERIAL] CONFISCATION OF MARIJUANA
  19. 19  ITEMS AND PROPERTY.–Notwithstanding the provisions of the
  20. 20  Forfeiture Act, whenever a law enforcement officer arrests a
  21. 21  person for a violation of the provisions of the Cannabis
  22. 22  Revenue and Freedom Act that do not relate to industrial hemp
  23. 23  or agricultural hemp seed, the officer may confiscate all
  24. 24  marijuana items and other property in the person’s possession
  25. 25  or on the premises that appear to be used in connection with
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  1. 1  the violation or in violation of the Cannabis Revenue and
  2. 2  Freedom Act. If the arrested person is convicted of a
  3. 3  violation, and it is found that the marijuana items or other
  4. 4  property confiscated by the officer was used in violation of
  5. 5  state law, the marijuana items or other property shall be
  6. 6  forfeited and may be disposed of in accordance with the
  7. 7  provisions of the Forfeiture Act and any other applicable laws.
  8. 8  SECTION 39. [NEW MATERIAL] CONVICTION OF LICENSEE–DUTY
  9. 9  TO NOTIFY THE DEPARTMENT.–All court officials, district
  10. 10  attorneys and municipal authorities in the state shall
  11. 11  immediately notify the department of the conviction of a person
  12. 12  who is licensed pursuant to the Cannabis Revenue and Freedom
  13. 13  Act of a violation of any provision of that act or of a state
  14. 14  or local law that relates in any way to marijuana items. The
  15. 15  notification to the department shall include information about
  16. 16  any acts, practices or other conduct of the licensee that may
  17. 17  be subversive of the general welfare or contrary to the spirit
  18. 18  of the Cannabis Revenue and Freedom Act and shall make
  19. 19  recommendations that the department could take to remedy the
  20. 20  acts, practices or conduct of the licensee.
  21. 21  SECTION 40. [NEW MATERIAL] PROPERTY AND PLACES AS COMMON
  22. 22  NUISANCES.–
  23. 23  A. For the purpose of the Cannabis Revenue and
  24. 24  Freedom Act, a common nuisance is:
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  1. 1  or other place where marijuana items are sold, manufactured,
  2. 2  bartered or given away in violation of state law;
  3. 3  (2) a room, house, building, boat, structure
  4. 4  or other place where persons are permitted to resort for the
  5. 5  purpose of using marijuana items in violation of state law;
  6. 6  (3) a place where marijuana items are kept for
  7. 7  sale, barter or gift in violation of state law; or
  8. 8  (4) all marijuana items or property subject to
  9. 9  confiscation pursuant to the Cannabis Revenue and Freedom Act
  10. 10  that are kept and used in a place described in this section.
  11. 11  B. A person who maintains or assists in maintaining
  12. 12  a common nuisance or who knowingly allows a common nuisance to
  13. 13  exist in a place of which the person is the owner, manager or
  14. 14  lessor is guilty of a violation of the Cannabis Revenue and
  15. 15  Freedom Act.
  16. 16  SECTION 41. [NEW MATERIAL] LIEN ON PLACE USED TO
  17. 17  UNLAWFULLY HANDLE MARIJUANA ITEMS.–Upon a showing that the
  18. 18  owner of a building or premises has knowingly allowed the
  19. 19  building or premises to be used or occupied for the
  20. 20  manufacture, sale or possession of marijuana items in violation
  21. 21  of the provisions of the Cannabis Revenue and Freedom Act, that
  22. 22  building or premises is subject to a lien for and may be sold
  23. 23  to pay all fines and costs assessed against the building’s or
  24. 24  premises’ occupants for violations of that act. The district
           attorney of the county in which the building or premises is
    .204493.4
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located shall enforce the lien immediately by civil action. SECTION 42. [NEW MATERIAL] GOVERNOR’S AUTHORITY TO

SUSPEND LICENSE.--In case of invasion, disaster, insurrection
or riot or imminent danger thereof, the governor may, without
notice, suspend any license that was issued pursuant to the
Cannabis Revenue and Freedom Act and that is in the affected
area for the duration of the invasion, disaster, insurrection
or riot or imminent danger thereof.

SECTION 43. [NEW MATERIAL] PENALTIES.–
A. Except as otherwise specifically provided in the

Cannabis Revenue and Freedom Act:
(1) a violation of a provision of that act
shall constitute a misdemeanor; and
(2) a violation of a rule promulgated pursuant
to that act shall constitute a petty misdemeanor.
B. Notwithstanding other provisions of law, a
person who is twenty-one years of age or older and who
manufactures homegrown marijuana at a household and the total
number of homegrown marijuana plants at the household exceeds
four but does not exceed eight is guilty of a misdemeanor.
           C.  Notwithstanding other provisions of law, it is
unlawful for any person who is twenty-one years of age or
older, except for a licensee or a licensee representative, to
knowingly or intentionally possess:
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a public place;
marijuana;
products in solid form;
(2)  more than eight ounces of usable
(3) more than sixteen ounces of marijuana
(4) more than seventy-two ounces of marijuana
products in liquid form;
(5) more than one ounce of marijuana extracts;

or

                (6)  any marijuana extracts that were not
purchased from a licensed marijuana retailer.
           D.  A violation of Paragraphs (1) through (5) of
Subsection C of this section is a:
                (1)  fourth degree felony if the amount
possessed is more than four times the amount specified;
                (2)  a misdemeanor if the amount possessed is
more than two times, but not more than four times, the amount
specified; or
                (3)  a petty misdemeanor if the amount
possessed is not more than two times the amount specified.
           E.  A violation of Paragraph (6) of Subsection C of
this section is:
                (1)  a fourth degree felony if the amount
possessed is more than one-fourth ounce of marijuana extract;

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  1. 1  (2) a misdemeanor if the amount is not more
  2. 2  than one-fourth ounce of marijuana extract.
  3. 3  SECTION 44. [NEW MATERIAL] USE OF MARIJUANA WHILE
  4. 4  DRIVING–PENALTY.–
  5. 5  A. A person commits the offense of use of marijuana
  6. 6  while driving if the person uses any marijuana item while
  7. 7  driving a motor vehicle upon a highway.
  8. 8  B. A person who commits use of marijuana while
  9. 9  driving is guilty of a misdemeanor.
  10. 10  SECTION 45. [NEW MATERIAL] SEVERABILITY.–If any part or
  11. 11  application of the Cannabis Revenue and Freedom Act is held
  12. 12  invalid, unconstitutional or illegal, the remainder or its
  13. 13  application to other situations or persons shall not be
  14. 14  affected.
  15. 15  SECTION 46. [NEW MATERIAL] SUBSTANCE ABUSE PREVENTION
  16. 16  FUND.–The “substance abuse prevention fund” is created in the
  17. 17  state treasury. The fund consists of appropriations, other
  18. 18  money deposited in the fund and money otherwise accruing to the
  19. 19  fund. The department of health shall administer the fund, and
  20. 20  money in the fund is appropriated to the department of health
  21. 21  to establish, operate and maintain alcohol and substance abuse
  22. 22  prevention, early intervention and treatment and related mental
  23. 23  health services. Money in the fund shall be disbursed on
  24. 24  warrants signed by the secretary of finance and administration
  25. 25  pursuant to vouchers signed by the secretary of health or the
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secretary's designee.  Any balance remaining in the fund at the
end of a fiscal year shall not revert to the general fund.

SECTION 47. [NEW MATERIAL] STATE POLICE SUPPORT FUND.– The “state police support fund” is created in the state treasury. The fund consists of appropriations, other money deposited in the fund and money otherwise accruing to the fund. The department of public safety shall administer the fund, and money in the fund is appropriated to the New Mexico state police division of the department of public safety for operations. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of public safety or the secretary’s designee. Any balance remaining in the fund at the end of a fiscal year shall not revert to the general fund.
SECTION 48. [NEW MATERIAL] SHORT TITLE.–Sections 48 through 54 of this act may be cited as the “Cannabis Tax Act”.
SECTION 49. [NEW MATERIAL] DEFINITIONS.–As used in the Cannabis Tax Act:

           A.  "county area" means that portion of a county
located outside the boundaries of any municipality, except that
for H class counties, "county area" means the entire county;
           B.  "department" means the taxation and revenue
department;
           C.  "governing body" means:
(1) in the case of a municipality, the city
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council or city commission of a city, the board of trustees of
a town or village or the board of county commissioners of H
class counties; or
                (2)  in the case of a county, the county
commission of a county or the county council of an H class

county.

           D.  "marijuana items" means "marijuana items" as
that term is defined in the Cannabis Revenue and Freedom Act;
and
           E.  "marijuana retailer" means "marijuana retailer"
as that term is defined in the Cannabis Revenue and Freedom
Act.

SECTION 50. [NEW MATERIAL] IMPOSITION AND RATE OF CANNABIS TAX.–

           A.  There is imposed an excise tax on a marijuana
retailer that sells marijuana items in this state on which the
tax imposed by this section has not been paid. If the price
paid does not represent the value of the marijuana item, the
tax rate shall be applied to the reasonable value of the
marijuana item at the time the item was purchased. The excise
tax imposed by this section may be referred to as the "cannabis
tax".
           B.  The rate of the cannabis tax is fifteen percent
and is applied to the price paid for the marijuana item.

SECTION 51. [NEW MATERIAL] MUNICIPAL CANNABIS TAX.– .204493.4

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  1. 1  A. A majority of the members of the governing body
  2. 2  of a municipality may enact an ordinance imposing an excise tax
  3. 3  on a marijuana retailer that sells marijuana items in the
  4. 4  municipality on which the tax imposed by this section has not
  5. 5  been paid. The tax imposed pursuant to this section may be
  6. 6  referred to as the “municipal cannabis tax”.
  7. 7  B. The rate of the municipal cannabis tax is five
  8. 8  percent and is applied to the price paid for the marijuana
  9. 9  item. If the price paid does not represent the value of the
  10. 10  marijuana item, the tax rate shall be applied to the reasonable
  11. 11  value of the marijuana item at the time that the item was
  12. 12  purchased.
  13. 13  C. The governing body of a municipality, at the
  14. 14  time of enacting any ordinance imposing a municipal cannabis
  15. 15  tax, may dedicate the revenue for municipal general purposes.
  16. 16  D. Any ordinance enacted under the provisions of
  17. 17  Subsection A of this section shall include an effective date of
  18. 18  either July 1 or January 1.
  19. 19  E. An ordinance imposing the municipal cannabis tax
  20. 20  shall not go into effect until after an election is held and
           the majority of the voters of the municipality voting in the
    election vote in favor of imposing the tax. The governing body
    shall adopt a resolution calling for an election within
    seventy-five days of the date the ordinance is adopted on the
    question of imposing the tax. The question shall be submitted
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  1. 1  to the voters of the municipality as a separate question at a
  2. 2  regular municipal election or at a special election called for
  3. 3  that purpose by the governing body. A special municipal
  4. 4  election shall be called, conducted and canvassed as provided
  5. 5  in the Municipal Election Code. If the majority of the voters
  6. 6  voting on the question approves the ordinance imposing the
  7. 7  municipal cannabis tax, the ordinance shall become effective in
  8. 8  accordance with the provisions of the Cannabis Tax Act. If the
  9. 9  question of imposing the municipal cannabis tax fails, the
  10. 10  governing body shall not again propose the imposition of the
  11. 11  tax for a period of one year from the date of the election.
  12. 12  SECTION 52. [NEW MATERIAL] COUNTY CANNABIS TAX.–
  13. 13  A. The majority of the members of the governing
  14. 14  body of a county may enact an ordinance imposing an excise tax
  15. 15  on a marijuana retailer that sells marijuana items in the
  16. 16  county area on which the tax imposed by this section has not
  17. 17  been paid. The tax imposed pursuant to this section may be
  18. 18  referred to as the “county cannabis tax”.
  19. 19  B. The rate of the county cannabis tax is five
  20. 20  percent and is applied to the price paid for the marijuana
  21. 21  item. If the price paid does not represent the value of the
  22. 22  marijuana item, the tax rate shall be applied to the reasonable
  23. 23  value of the marijuana item at the time that the item was
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C.  The governing body of a county, at the time of
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  1. 1  enacting any ordinance imposing a county cannabis tax, may
  2. 2  dedicate the revenue for county general purposes.
  3. 3  D. Any ordinance enacted under the provisions of
  4. 4  Subsection A of this section shall include an effective date of
  5. 5  either July 1 or January 1.
  6. 6  E. An ordinance imposing the county cannabis tax
  7. 7  shall not go into effect until after an election is held and
  8. 8  the majority of the qualified electors of the county area
  9. 9  voting in the election vote in favor of imposing the tax. The
  10. 10  governing body shall adopt a resolution calling for an election
  11. 11  within seventy-five days of the date that the ordinance is
  12. 12  adopted on the question of imposing the tax. The question may
  13. 13  be submitted to the qualified electors and voted upon as a
  14. 14  separate question at any special election called for that
  15. 15  purpose by the governing body. The election on the question
  16. 16  shall be called, held, conducted and canvassed in substantially
  17. 17  the same manner as provided by law for general elections. If
  18. 18  the question of imposing a county cannabis tax fails, the
  19. 19  governing body shall not again propose a county cannabis tax
  20. 20  for a period of one year after the election.
  21. 21  SECTION 53. [NEW MATERIAL] DATE PAYMENT DUE.–The taxes
  22. 22  imposed pursuant to the Cannabis Tax Act are to be paid on or
  23. 23  before the twenty-fifth day of the month following the month in
  24. 24  which the taxable event occurs.
  25. 25  SECTION 54. [NEW MATERIAL] ADMINISTRATIVE CHARGE.–The
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  1. 1  department may deduct an amount not to exceed three percent of
  2. 2  the proceeds of the municipal cannabis tax and county cannabis
  3. 3  tax as a charge for the administrative costs of collection,
  4. 4  which amount shall be retained by the department for use in
  5. 5  administration of those taxes.
  6. 6  SECTION 55. A new section of the Tax Administration Act
  7. 7  is enacted to read:
  8. 8  “[NEW MATERIAL] DISTRIBUTION–PUBLIC SCHOOL FUND FOR STATE
  9. 9  EQUALIZATION GUARANTEE DISTRIBUTION–SUBSTANCE ABUSE PREVENTION
  10. 10  FUND–STATE POLICE SUPPORT FUND–CANNABIS TAX.–
  11. 11  A. A distribution pursuant to Section 7-1-6.1 NMSA
  12. 12  1978 shall be made to the public school fund to augment the
  13. 13  appropriations for the state equalization guarantee
  14. 14  distribution in an amount equal to forty percent of the net
  15. 15  receipts attributable to the cannabis tax.
  16. 16  B. A distribution pursuant to Section 7-1-6.1 NMSA
  17. 17  1978 shall be made to the substance abuse prevention fund in an
  18. 18  amount equal to twenty-five percent of the net receipts
  19. 19  attributable to the cannabis tax.
  20. 20  C. A distribution pursuant to Section 7-1-6.1 NMSA
  21. 21  1978 shall be made to the state police support fund in an
  22. 22  amount equal to fifteen percent of the net receipts
  23. 23  attributable to the cannabis tax.”
  24. 24  SECTION 56. A new section of the Tax Administration Act
  25. 25  is enacted to read:
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  1. 1  “[NEW MATERIAL] TRANSFER–REVENUES FROM MUNICIPAL CANNABIS
  2. 2  TAX AND COUNTY CANNABIS TAX.–
  3. 3  A. A transfer pursuant to Section 7-1-6.1 NMSA 1978
  4. 4  shall be made to each municipality for which the department is
  5. 5  collecting a municipal cannabis tax imposed by that
  6. 6  municipality in an amount, subject to any increase or decrease
  7. 7  made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net
  8. 8  receipts attributable to the municipal cannabis tax, less any
  9. 9  deduction for administrative costs determined and made by the
  10. 10  department pursuant to the Cannabis Tax Act.
  11. 11  B. A transfer pursuant to Section 7-1-6.1 NMSA 1978
  12. 12  shall be made to each county for which the department is
  13. 13  collecting a county cannabis tax imposed by that county in an
  14. 14  amount, subject to any increase or decrease made pursuant to
  15. 15  Section 7-1-6.15 NMSA 1978, equal to the net receipts
  16. 16  attributable to the county cannabis tax, less any deduction for
  17. 17  administrative costs determined and made by the department
  18. 18  pursuant to the Cannabis Tax Act.”
  19. 19  SECTION 57. Section 7-1-2 NMSA 1978 (being Laws 1965,
  20. 20  Chapter 248, Section 2, as amended) is amended to read:
  21. 21  “7-1-2. APPLICABILITY.–The Tax Administration Act
  22. 22  applies to and governs:
  23. 23  A. the administration and enforcement of the
  24. 24  following taxes or tax acts as they now exist or may hereafter
           be amended:
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  1. 1  (1) Income Tax Act;
  2. 2  (2) Withholding Tax Act;
  3. 3  (3) Venture Capital Investment Act;
  4. 4  (4) Gross Receipts and Compensating Tax Act
  5. 5  and any state gross receipts tax;
  6. 6  (5) Liquor Excise Tax Act;
  7. 7  (6) Local Liquor Excise Tax Act;
  8. 8  (7) any municipal local option gross receipts
  9. 9  tax;
  10. 10  (8) any county local option gross receipts
  11. 11  tax;
  12. 12  (9) Special Fuels Supplier Tax Act;
  13. 13  (10) Gasoline Tax Act;
  14. 14  (11) petroleum products loading fee, which fee
  15. 15  shall be considered a tax for the purpose of the Tax
  16. 16  Administration Act;
  17. 17  (12) Alternative Fuel Tax Act;
  18. 18  (13) Cigarette Tax Act;
  19. 19  (14) Estate Tax Act;
  20. 20  (15) Railroad Car Company Tax Act;
                           (16)  Investment Credit Act, rural job tax
    credit, Laboratory Partnership with Small Business Tax Credit
           Act, Technology Jobs and Research and Development Tax Credit
    Act, Film Production Tax Credit Act, Affordable Housing Tax
    Credit Act and high-wage jobs tax credit;
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  1. 1  (17) Corporate Income and Franchise Tax Act;
  2. 2  (18) Uniform Division of Income for Tax
  3. 3  Purposes Act;
  4. 4  (19) Multistate Tax Compact;
  5. 5  (20) Tobacco Products Tax Act; [and]
  6. 6  (21) the telecommunications relay service
  7. 7  surcharge imposed by Section 63-9F-11 NMSA 1978, which
  8. 8  surcharge shall be considered a tax for the purposes of the Tax
  9. 9  Administration Act; and
  10. 10  (22) the Cannabis Tax Act;
  11. 11  B. the administration and enforcement of the
  12. 12  following taxes, surtaxes, advanced payments or tax acts as
  13. 13  they now exist or may hereafter be amended:
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Valorem Tax Act;
(1)  Resources Excise Tax Act;
(2) Severance Tax Act;
(3) any severance surtax;
(4) Oil and Gas Severance Tax Act;
(5) Oil and Gas Conservation Tax Act;
(6) Oil and Gas Emergency School Tax Act;
(7) Oil and Gas Ad Valorem Production Tax Act;
(8) Natural Gas Processors Tax Act;
(9)  Oil and Gas Production Equipment Ad
(10)  Copper Production Ad Valorem Tax Act;
(11) any advance payment required to be made
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by any act specified in this subsection, which advance payment
shall be considered a tax for the purposes of the Tax
Administration Act;
                (12)  Enhanced Oil Recovery Act;
                (13)  Natural Gas and Crude Oil Production
Incentive Act; and
                (14)  intergovernmental production tax credit
and intergovernmental production equipment tax credit;
           C.  the administration and enforcement of the
following taxes, surcharges, fees or acts as they now exist or
may hereafter be amended:
                (1)  Weight Distance Tax Act;
                (2)  the workers' compensation fee authorized
by Section 52-5-19 NMSA 1978, which fee shall be considered a
tax for purposes of the Tax Administration Act;
(3) Uniform Unclaimed Property Act (1995);
                (4)  911 emergency surcharge and the network
and database surcharge, which surcharges shall be considered
taxes for purposes of the Tax Administration Act;
(5) the solid waste assessment fee authorized
by the Solid Waste Act, which fee shall be considered a tax for
purposes of the Tax Administration Act;
                (6)  the water conservation fee imposed by
Section 74-1-13 NMSA 1978, which fee shall be considered a tax
for the purposes of the Tax Administration Act; and
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                (7)  the gaming tax imposed pursuant to the
Gaming Control Act; and
           D.  the administration and enforcement of all other
laws, with respect to which the department is charged with
responsibilities pursuant to the Tax Administration Act, but
only to the extent that the other laws do not conflict with the
Tax Administration Act."

SECTION 58. Section 7-1-6.15 NMSA 1978 (being Laws 1983, Chapter 211, Section 20, as amended by Laws 2015, Chapter 89, Section 1 and by Laws 2015, Chapter 100, Section 1) is amended to read:

     "7-1-6.15.  ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO
MUNICIPALITIES OR COUNTIES.--
           A.  The provisions of this section apply to:
(1) any distribution to a municipality
pursuant to Section 7-1-6.4, 7-1-6.36 or 7-1-6.46 NMSA 1978;
(2) any transfer to a municipality with
respect to any local option gross receipts tax or municipal
cannabis tax imposed by that municipality;
                (3)  any transfer to a county with respect to
any local option gross receipts tax or county cannabis tax
imposed by that county;
(4) any distribution to a county pursuant to
Section 7-1-6.16 or 7-1-6.47 NMSA 1978;
(5) any distribution to a municipality or a
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  1. 1  county of gasoline taxes pursuant to Section 7-1-6.9 NMSA 1978;
  2. 2  (6) any transfer to a county with respect to
  3. 3  any tax imposed in accordance with the Local Liquor Excise Tax
  4. 4  Act;
  5. 5  (7) any distribution to a county from the
  6. 6  county government road fund pursuant to Section 7-1-6.26 NMSA
  7. 7  1978;
  8. 8  (8) any distribution to a municipality of
  9. 9  gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978; and
  10. 10  (9) any distribution to a municipality of
  11. 11  compensating taxes pursuant to Section 7-1-6.55 NMSA 1978.
  12. 12  B. Before making a distribution or transfer
  13. 13  specified in Subsection A of this section to a municipality or
  14. 14  county for the month, amounts comprising the net receipts shall
  15. 15  be segregated into two mutually exclusive categories. One
  16. 16  category shall be for amounts relating to the current month,
  17. 17  and the other category shall be for amounts relating to prior
  18. 18  periods. The total of each category for a municipality or
  19. 19  county shall be reported each month to that municipality or
  20. 20  county. If the total of the amounts relating to prior periods
           is less than zero and its absolute value exceeds the greater of
    one hundred dollars ($100) or an amount equal to twenty percent
    of the average distribution or transfer amount for that
    municipality or county, then the following procedures shall be
    carried out:
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  1. 1  (1) all negative amounts relating to any
  2. 2  period prior to the three calendar years preceding the year of
  3. 3  the current month, net of any positive amounts in that same
  4. 4  time period for the same taxpayers to which the negative
  5. 5  amounts pertain, shall be excluded from the total relating to
  6. 6  prior periods. Except as provided in Paragraph (2) of this
  7. 7  subsection, the net receipts to be distributed or transferred
  8. 8  to the municipality or county shall be adjusted to equal the
  9. 9  amount for the current month plus the revised total for prior
  10. 10  periods; and
  11. 11  (2) if the revised total for prior periods
  12. 12  determined pursuant to Paragraph (1) of this subsection is
  13. 13  negative and its absolute value exceeds the greater of one
  14. 14  hundred dollars ($100) or an amount equal to twenty percent of
  15. 15  the average distribution or transfer amount for that
  16. 16  municipality or county, the revised total for prior periods
  17. 17  shall be excluded from the distribution or transfers and the
  18. 18  net receipts to be distributed or transferred to the
  19. 19  municipality or county shall be equal to the amount for the
  20. 20  current month.
                     C.  The department shall recover from a municipality
    or county the amount excluded by Paragraph (2) of Subsection B
    of this section. This amount may be referred to as the
    "recoverable amount".
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D.  Prior to or concurrently with the distribution
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  1. 1  or transfer to the municipality or county of the adjusted net
  2. 2  receipts, the department shall notify the municipality or
  3. 3  county whose distribution or transfer has been adjusted
  4. 4  pursuant to Paragraph (2) of Subsection B of this section:
  5. 5  (1) that the department has made such an
  6. 6  adjustment, that the department has determined that a specified
  7. 7  amount is recoverable from the municipality or county and that
  8. 8  the department intends to recover that amount from future
  9. 9  distributions or transfers to the municipality or county;
  10. 10  (2) that the municipality or county has ninety
  11. 11  days from the date notice is made to enter into a mutually
  12. 12  agreeable repayment agreement with the department;
  13. 13  (3) that if the municipality or county takes
  14. 14  no action within the ninety-day period, the department will
  15. 15  recover the amount from the next six distributions or transfers
  16. 16  following the expiration of the ninety days; and
  17. 17  (4) that the municipality or county may
  18. 18  inspect, pursuant to Section 7-1-8.9 NMSA 1978, an application
  19. 19  for a claim for refund that gave rise to the recoverable
  20. 20  amount, exclusive of any amended returns that may be attached
           to the application.
    E. No earlier than ninety days from the date notice
           pursuant to Subsection D of this section is given, the
    department shall begin recovering the recoverable amount from a
    municipality or county as follows:
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  1. 1  (1) the department may collect the recoverable
  2. 2  amount by:
  3. 3  (a) decreasing distributions or
  4. 4  transfers to the municipality or county in accordance with a
  5. 5  repayment agreement entered into with the municipality or
  6. 6  county; or
  7. 7  (b) except as provided in Paragraphs (2)
  8. 8  and (3) of this subsection, if the municipality or county fails
  9. 9  to act within the ninety days, decreasing the amount of the
  10. 10  next six distributions or transfers to the municipality or
  11. 11  county following expiration of the ninety-day period in
  12. 12  increments as nearly equal as practicable and sufficient to
  13. 13  recover the amount;
  14. 14  (2) if, pursuant to Subsection B of this
  15. 15  section, the secretary determines that the recoverable amount
  16. 16  is more than fifty percent of the average distribution or
  17. 17  transfer of net receipts for that municipality or county, the
  18. 18  secretary:
  19. 19  (a) shall recover only up to fifty
  20. 20  percent of the average distribution or transfer of net receipts
           for that municipality or county; and
    (b) may, in the secretary's discretion,
           waive recovery of any portion of the recoverable amount,
    subject to approval by the state board of finance; and
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(3)  if, after application of a refund claim,
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  1. 1  audit adjustment, correction of a mistake by the department or
  2. 2  other adjustment of a prior period, but prior to any recovery
  3. 3  of the department pursuant to this section, the total net
  4. 4  receipts of a municipality or county for the twelve-month
  5. 5  period beginning with the current month are reduced or are
  6. 6  projected to be reduced to less than fifty percent of the
  7. 7  average distribution or transfer of net receipts, the secretary
  8. 8  may waive recovery of any portion of the recoverable amount,
  9. 9  subject to approval by the state board of finance.
  10. 10  F. No later than ninety days from the date notice
  11. 11  pursuant to Subsection D of this section is given, the
  12. 12  department shall provide the municipality or county adequate
  13. 13  opportunity to review an application for a claim for refund
  14. 14  that gave rise to the recoverable amount, exclusive of any
  15. 15  amended returns that may be attached to the application,
  16. 16  pursuant to Section 7-1-8.9 NMSA 1978.
  17. 17  G. On or before September 1 of each year beginning
  18. 18  in 2016, the secretary shall report to the state board of
  19. 19  finance and the legislative finance committee the total
  20. 20  recoverable amount waived pursuant to Subparagraph (b) of
           Paragraph (2) and Paragraph (3) of Subsection E of this section
    for each municipality and county in the prior fiscal year.
                     H.  The secretary is authorized to decrease a
    distribution or transfer to a municipality or county upon being
    directed to do so by the secretary of finance and
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  1. 1  administration pursuant to the State Aid Intercept Act or to
  2. 2  redirect a distribution or transfer to the New Mexico finance
  3. 3  authority pursuant to an ordinance or a resolution passed by
  4. 4  the county or municipality and a written agreement of the
  5. 5  municipality or county and the New Mexico finance authority.
  6. 6  Upon direction to decrease a distribution or transfer or notice
  7. 7  to redirect a distribution or transfer to a municipality or
  8. 8  county, the secretary shall decrease or redirect the next
  9. 9  designated distribution or transfer, and succeeding
  10. 10  distributions or transfers as necessary, by the amount of the
  11. 11  state distributions intercept authorized by the secretary of
  12. 12  finance and administration pursuant to the State Aid Intercept
  13. 13  Act or by the amount of the state distribution intercept
  14. 14  authorized pursuant to an ordinance or a resolution passed by
  15. 15  the county or municipality and a written agreement with the New
  16. 16  Mexico finance authority. The secretary shall transfer the
  17. 17  state distributions intercept amount to the municipal or county
  18. 18  treasurer or other person designated by the secretary of
  19. 19  finance and administration or to the New Mexico finance
  20. 20  authority pursuant to written agreement to pay the debt service
           to avoid default on qualified local revenue bonds or meet other
    local revenue bond, loan or other debt obligations of the
    municipality or county to the New Mexico finance authority. A
    decrease to or redirection of a distribution or transfer
    pursuant to this subsection that arose:
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  1. 1  (1) prior to an adjustment of a distribution
  2. 2  or transfer of net receipts creating a recoverable amount owed
  3. 3  to the department takes precedence over any collection of any
  4. 4  recoverable amount pursuant to Paragraph (2) of Subsection B of
  5. 5  this section, which may be made only from the net amount of the
  6. 6  distribution or transfer remaining after application of the
  7. 7  decrease or redirection pursuant to this subsection; and
  8. 8  (2) after an adjustment of a distribution or
  9. 9  transfer of net receipts creating a recoverable amount owed to
  10. 10  the department shall be subordinate to any collection of any
  11. 11  recoverable amount pursuant to Paragraph (2) of Subsection B of
  12. 12  this section.
  13. 13  I. Upon the direction of the secretary of finance
  14. 14  and administration pursuant to Section 9-6-5.2 NMSA 1978, the
  15. 15  secretary shall temporarily withhold the balance of a
  16. 16  distribution to a municipality or county, net of any decrease
  17. 17  or redirected amount pursuant to Subsection H of this section
  18. 18  and any recoverable amount pursuant to Paragraph (2) of
  19. 19  Subsection B of this section, that has failed to submit an
  20. 20  audit report required by the Audit Act or a financial report
           required by Subsection F of Section 6-6-2 NMSA 1978.  The
    amount to be withheld, the source of the withheld distribution
    and the number of months that the distribution is to be
    withheld shall be as directed by the secretary of finance and
    administration. A distribution withheld pursuant to this
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  1. 1  subsection shall remain in the tax administration suspense fund
  2. 2  until distributed to the municipality or county and shall not
  3. 3  be distributed to the general fund. An amount withheld
  4. 4  pursuant to this subsection shall be distributed to the
  5. 5  municipality or county upon direction of the secretary of
  6. 6  finance and administration.
  7. 7  J. As used in this section:
  8. 8  (1) “amounts relating to the current month”
  9. 9  means any amounts included in the net receipts of the current
  10. 10  month that represent payment of tax due for the current month,
  11. 11  correction of amounts processed in the current month that
  12. 12  relate to the current month or that otherwise relate to
  13. 13  obligations due for the current month;
  14. 14  (2) “amounts relating to prior periods” means
  15. 15  any amounts processed during the current month that adjust
  16. 16  amounts processed in a period or periods prior to the current
  17. 17  month regardless of whether the adjustment is a correction of a
  18. 18  department error or due to the filing of amended returns,
  19. 19  payment of department-issued assessments, filing or approval of
  20. 20  claims for refund, audit adjustments or other cause;
                           (3)  "average distribution or transfer amount"
    means the following amounts; provided that a distribution or
           transfer that is negative shall not be used in calculating the
    amounts:
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(a)  the annual average of the total
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  1. 1  amount distributed or transferred to a municipality or county
  2. 2  in each of the three twelve-month periods preceding the current
  3. 3  month;
  4. 4  (b) ifa
  5. 5  municipality or county has been
  6. 6  the total amount distributed or
  7. 7  preceding the current month; or
  8. 8  (c) ifa
  9. 9  received distributions or transfers of net receipts for twelve
  10. 10  or more months, the monthly average of net receipts distributed
  11. 11  or transferred to the municipality or county preceding the
  12. 12  current month multiplied by twelve;
  13. 13  (4) “current month” means the month for which
  14. 14  the distribution or transfer is being prepared; and
  15. 15  (5) “repayment agreement” means an agreement
  16. 16  between the department and a municipality or county under which
  17. 17  the municipality or county agrees to allow the department to
  18. 18  recover an amount determined pursuant to Paragraph (2) of
  19. 19  Subsection B of this section by decreasing distributions or
  20. 20  transfers to the municipality or county for one or more months
           beginning with the distribution or transfer to be made with
    respect to a designated month. No interest shall be charged."
distribution or transfer to a
made for less than three years,
transferred in the year
municipality or county has not
21 22 23

  1. 24  Chapter 210, Section 1) is amended to read:
  2. 25  “26-2B-1. SHORT TITLE.–[Sections 1 through 7 of this
SECTION 59. Section 26-2B-1 NMSA 1978 (being Laws 2007,
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act] Chapter 26, Article 2B NMSA 1978 may be cited as the "Lynn
and Erin Compassionate Use Act" in honor of Lynn Pierson and
Erin Armstrong."

SECTION 60. Section 26-2B-3 NMSA 1978 (being Laws 2007, Chapter 210, Section 3) is amended to read:

     "26-2B-3.  DEFINITIONS.--As used in the Lynn and Erin
Compassionate Use Act:
           A.  "adequate supply" means an amount of cannabis,
in any form approved by the department, possessed by a
qualified patient or collectively possessed by a qualified
patient and the qualified patient's primary caregiver that is
determined by rule of the department to be no more than
reasonably necessary to ensure the uninterrupted availability
of cannabis for a period of three months and that is derived
solely from an intrastate source;
           B.  "debilitating medical condition" means:
(1) cancer;
                (2)  glaucoma;
(3) multiple sclerosis;
(4) damage to the nervous tissue of the spinal
cord, with objective neurological indication of intractable
spasticity;
                (5)  epilepsy;
                (6)  positive status for human immunodeficiency
virus or acquired immune deficiency syndrome;
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                (7)  admitted into hospice care in accordance
with rules promulgated by the department; or
                (8)  any other medical condition, medical
treatment or disease as approved by the department;
           C.  "department" means the department of health;
           D.  "licensed producer" means any person or
association of persons within New Mexico that the department
determines to be qualified to produce, possess, distribute and
dispense cannabis pursuant to the Lynn and Erin Compassionate
Use Act and that is licensed by the department;
           E.  "mature cannabis plant" means a harvestable
female cannabis plant that is flowering;
           F.  "personal production license" means a license
issued to a qualified patient that allows the qualified patient
to produce medical cannabis for that qualified patient's
personal use in accordance with department rules;
           [E.] G.  "practitioner" means a person licensed in
New Mexico to prescribe and administer drugs that are subject
to the Controlled Substances Act;
           [F.] H.  "primary caregiver" means a resident of New
Mexico who is at least eighteen years of age and who has been
designated by the patient's practitioner as being necessary to
take responsibility for managing the well-being of a qualified
patient with respect to the medical use of cannabis pursuant to
the provisions of the Lynn and Erin Compassionate Use Act;
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  1. 1  [G.] I. “qualified patient” means a resident of New
  2. 2  Mexico who has been diagnosed by a practitioner as having a
  3. 3  debilitating medical condition and has received written
  4. 4  certification and a registry identification card issued
  5. 5  pursuant to the Lynn and Erin Compassionate Use Act; and
  6. 6  [H.] J. “written certification” means a statement
  7. 7  in a patient’s medical records or a statement signed by a
  8. 8  patient’s practitioner that, in the practitioner’s professional
  9. 9  opinion, the patient has a debilitating medical condition and
  10. 10  the practitioner believes that the potential health benefits of
  11. 11  the medical use of cannabis would likely outweigh the health
  12. 12  risks for the patient. A written certification is not valid
  13. 13  for more than one year from the date of issuance.”
  14. 14  SECTION 61. Section 26-2B-7 NMSA 1978 (being Laws 2007,
  15. 15  Chapter 210, Section 7) is amended to read:
  16. 16  “26-2B-7. [REGISTRY IDENTIFICATION CARDS] DEPARTMENT
  17. 17  RULES–DUTIES–REGISTRY IDENTIFICATION CARDS.–
  18. 18  A. No later than October 1, 2007, and after
  19. 19  consultation with the advisory board, the department shall
  20. 20  promulgate rules in accordance with the State Rules Act to
  21. 21  implement the purpose of the Lynn and Erin Compassionate Use
  22. 22  Act. The rules shall:
  23. 23  (1) govern the manner in which the department
  24. 24  will consider applications for registry identification cards
           and for the renewal of identification cards for qualified
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patients and primary caregivers;
(2) define the amount of cannabis that is
necessary to constitute an adequate supply, including amounts
for topical treatments;
                (3)  identify criteria and set forth procedures
for including additional medical conditions, medical treatments
or diseases to the list of debilitating medical conditions that
qualify for the medical use of cannabis.  Procedures shall
include a petition process and shall allow for public comment
and public hearings before the advisory board;
                (4)  set forth additional medical conditions,
medical treatments or diseases to the list of debilitating
medical conditions that qualify for the medical use of cannabis
as recommended by the advisory board;
                (5)  identify requirements for the licensure of
producers and cannabis production facilities and set forth
procedures to obtain licenses;
(6) develop a distribution system for medical
cannabis that provides for:
(a) cannabis production facilities
within New Mexico housed on secured grounds and operated by
licensed producers; and
                      (b)  distribution of medical cannabis to
qualified patients or their primary caregivers to take place at
locations that are designated by the department and that are
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not within three hundred feet of any school, church or daycare
center;
                (7)  provide that, for a new or renewal
producer license, the department shall charge an annual license

fee of:

                      (a)  fifteen thousand dollars ($15,000),
if the producer will possess up to one hundred fifty mature
cannabis plants; and
                      (b)  an additional five thousand dollars
($5,000) for each additional fifty mature cannabis plants the
producer will possess; provided, however, that the maximum fee
charged for a new or renewal producer license shall not exceed
forty-five thousand dollars ($45,000);
                (8)  until June 30, 2019, restrict the number
of mature cannabis plants a licensed producer may possess at
any given time to:
                      (a)  one thousand between July 1, 2017
and June 30, 2018; and
                      (b)  two thousand between July 1, 2018
and June 30, 2019;
(9) provide that a person who is a qualified
patient and who holds a personal production license may sell
those mature cannabis plants that the person possesses in
accordance with the person's personal production license to a
licensed producer and that the licensed producer may sell those
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plants in accordance with applicable law and rules;
[(7)] (10) determine additional duties and
responsibilities of the advisory board; and
[(8)] (11) be revised and updated as
necessary.
B. The department shall issue registry
identification cards to a patient and to the primary caregiver,
if any, for that patient [if any] who submit the following, in
accordance with the department's rules:
                (1)  a written certification;
(2) the name, address and date of birth of the

patient;

                (3)  the name, address and telephone number of
the patient's practitioner; and
                (4)  the name, address and date of birth of the
patient's primary caregiver, if any.
           C.  The department shall verify the information
contained in an application submitted pursuant to Subsection B
of this section and shall approve or deny an application within
thirty days of receipt. The department may deny an application
only if the applicant did not provide the information required
pursuant to Subsection B of this section or if the department
determines that the information provided is false. A person
whose application has been denied shall not reapply for six
months from the date of the denial unless otherwise authorized
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by the department.
D. The department shall issue a registry
identification card within five days of approving an
application, and a card shall expire one year after the date of
issuance. A registry identification card shall contain:
                (1)  the name, address and date of birth of the
qualified patient and primary caregiver, if any;
                (2)  the date of issuance and expiration date
of the registry identification card; and
                (3)  other information that the department may
require by rule.
E. A person who possesses a registry identification
card shall notify the department of any change in the person's
name, address, qualified patient's practitioner, qualified
patient's primary caregiver or change in status of the
qualified patient's debilitating medical condition within ten
days of the change.
           F.  Possession of or application for a registry
identification card shall not constitute probable cause or give
rise to reasonable suspicion for a governmental agency to
search the person or property of the person possessing or
applying for the card.
           G.  The department shall maintain a confidential
file containing the names and addresses of the persons who have
either applied for or received a registry identification card.
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Individual names on the list shall be confidential and not
subject to disclosure, except:
                (1)  to authorized employees or agents of the
department as necessary to perform the duties of the department
pursuant to the provisions of the Lynn and Erin Compassionate
Use Act;
                (2)  to authorized employees of state or local
law enforcement agencies, but only for the purpose of verifying
that a person is lawfully in possession of a registry
identification card; or
                (3)  as provided in the federal Health
Insurance Portability and Accountability Act of 1996."

SECTION 62. Section 29-19-4 NMSA 1978 (being Laws 2003, Chapter 255, Section 4, as amended) is amended to read:

     "29-19-4.  APPLICANT QUALIFICATIONS.--
A. The department shall issue a concealed handgun
license to an applicant who:
(1) is a citizen of the United States;
                (2)  is a resident of New Mexico or is a member
of the armed forces whose permanent duty station is located in
New Mexico or is a dependent of such a member;
(3) is twenty-one years of age or older;
                (4)  is not a fugitive from justice;
                (5)  has not been convicted of a felony in New
Mexico or any other state or pursuant to the laws of the United
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States or any other jurisdiction;
(6) is not currently under indictment for a
felony criminal offense in New Mexico or any other state or
pursuant to the laws of the United States or any other
jurisdiction;
                (7)  is not otherwise prohibited by federal law
or the law of any other jurisdiction from purchasing or
possessing a firearm;
(8) has not been adjudicated mentally
incompetent or committed to a mental institution;
(9) is not addicted to alcohol or controlled
substances; and
                (10)  has satisfactorily completed a firearms
training course approved by the department for the category and
the largest caliber of handgun that the applicant wants to be
licensed to carry as a concealed handgun.
           B.  The department shall deny a concealed handgun
license to an applicant who has:
                (1)  received a conditional discharge, a
diversion or a deferment or has been convicted of, pled guilty
to or entered a plea of nolo contendere to a misdemeanor
offense involving a crime of violence within ten years
immediately preceding the application;
                (2)  been convicted of a misdemeanor offense
involving driving while under the influence of intoxicating
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liquor or drugs within five years immediately preceding the
application for a concealed handgun license;
                (3)  been convicted of a misdemeanor offense
involving the possession or abuse of a controlled substance,
other than marijuana, within ten years immediately preceding
the application; or
(4) been convicted of a misdemeanor offense
involving assault, battery or battery against a household
member.
           C.  Firearms training course instructors who are
approved by the department shall not be required to complete a
firearms training course pursuant to Paragraph (10) of
Subsection A of this section."

SECTION 63. Section 30-6-1 NMSA 1978 (being Laws 1973, Chapter 360, Section 10, as amended) is amended to read:

     "30-6-1.  ABANDONMENT OR ABUSE OF A CHILD.--
A. As used in this section:
                (1)  "child" means a person who is less than
eighteen years of age;
                (2)  "neglect" means that a child is without
proper parental care and control of subsistence, education,
medical or other care or control necessary for the child's
well-being because of the faults or habits of the child's
parents, guardian or custodian or their neglect or refusal,
when able to do so, to provide them; and
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  1. 1  (3) “negligently” refers to criminal
  2. 2  negligence and means that a person knew or should have known of
  3. 3  the danger involved and acted with a reckless disregard for the
  4. 4  safety or health of the child.
  5. 5  B. Abandonment of a child consists of the parent,
  6. 6  guardian or custodian of a child intentionally leaving or
  7. 7  abandoning the child under circumstances whereby the child may
  8. 8  or does suffer neglect. A person who commits abandonment of a
  9. 9  child is guilty of a misdemeanor, unless the abandonment
  10. 10  results in the child’s death or great bodily harm, in which
  11. 11  case the person is guilty of a second degree felony.
  12. 12  C. A parent, guardian or custodian who leaves an
  13. 13  infant less than ninety days old in compliance with the Safe
  14. 14  Haven for Infants Act shall not be prosecuted for abandonment
  15. 15  of a child.
  16. 16  D. Abuse of a child consists of a person knowingly,
  17. 17  intentionally or negligently, and without justifiable cause,
  18. 18  causing or permitting a child to be:
  19. 19  (1) placed in a situation that may endanger
  20. 20  the child’s life or health;
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(2)  tortured, cruelly confined or cruelly
punished; or
                (3)  exposed to the inclemency of the weather.
E. A person who commits abuse of a child that does
not result in the child's death or great bodily harm is, for a
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  1. 1  first offense, guilty of a third degree felony and for second
  2. 2  and subsequent offenses is guilty of a second degree felony.
  3. 3  If the abuse results in great bodily harm to the child, the
  4. 4  person is guilty of a first degree felony.
  5. 5  F. A person who commits negligent abuse of a child
  6. 6  that results in the death of the child is guilty of a first
  7. 7  degree felony.
  8. 8  G. A person who commits intentional abuse of a
  9. 9  child twelve to eighteen years of age that results in the death
  10. 10  of the child is guilty of a first degree felony.
  11. 11  H. A person who commits intentional abuse of a
  12. 12  child less than twelve years of age that results in the death
  13. 13  of the child is guilty of a first degree felony resulting in
  14. 14  the death of a child.
  15. 15  I. Except for evidence that relates to conduct
  16. 16  pursuant to and in compliance with the Cannabis Revenue and
  17. 17  Freedom Act, evidence that demonstrates that a child has been
  18. 18  knowingly, intentionally or negligently allowed to enter or
  19. 19  remain in a motor vehicle, building or any other premises that
           contains chemicals and equipment used or intended for use in
    the manufacture of a controlled substance shall be deemed prima
    facie evidence of abuse of the child.
                     J.  Evidence that demonstrates that a child has been
    knowingly and intentionally exposed to the use of
    methamphetamine shall be deemed prima facie evidence of abuse
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  1. 1  of the child.
  2. 2  K. A person who leaves an infant less than ninety
  3. 3  days old at a hospital may be prosecuted for abuse of the
  4. 4  infant for actions of the person occurring before the infant
  5. 5  was left at the hospital.”
  6. 6  SECTION 64. Section 30-31-2 NMSA 1978 (being Laws 1972,
  7. 7  Chapter 84, Section 2, as amended) is amended to read:
  8. 8  “30-31-2. DEFINITIONS.–As used in the Controlled
  9. 9  Substances Act:
  10. 10  A. “administer” means the direct application of a
  11. 11  controlled substance by any means to the body of a patient or
  12. 12  research subject by a practitioner or the practitioner’s agent;
  13. 13  B. “agent” includes an authorized person who acts
  14. 14  on behalf of a manufacturer, distributor or dispenser. It does
  15. 15  not include a common or contract carrier, public
  16. 16  warehouseperson or employee of the carrier or warehouseperson;
                     C.  "board" means the board of pharmacy;
    D. "bureau" means the narcotic and dangerous drug
    the criminal division of the United States
    of justice, or its successor agency;
    E. "controlled substance":
17 18

  1. 19  section of
  2. 20  department

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  1. 23  Schedules I through V of the Controlled Substances Act or rules
  2. 24  adopted thereto; and
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  1. 1  marijuana for the purpose of or conduct pursuant to and in
  2. 2  compliance with the Cannabis Revenue and Freedom Act;
  3. 3  F. “counterfeit substance” means a controlled
  4. 4  substance that bears the unauthorized trademark, trade name,
  5. 5  imprint, number, device or other identifying mark or likeness
  6. 6  of a manufacturer, distributor or dispenser other than the
  7. 7  person who in fact manufactured, distributed or dispensed the
  8. 8  controlled substance;
  9. 9  G. “deliver” means the actual, constructive or
  10. 10  attempted transfer from one person to another of a controlled
  11. 11  substance or controlled substance analog, whether or not there
  12. 12  is an agency relationship;
  13. 13  H. “dispense” means to deliver a controlled
  14. 14  substance to an ultimate user or research subject pursuant to
  15. 15  the lawful order of a practitioner, including the
  16. 16  administering, prescribing, packaging, labeling or compounding
  17. 17  necessary to prepare the controlled substance for that
  18. 18  delivery;
  19. 19  I. “dispenser” means a practitioner who dispenses
  20. 20  and includes hospitals, pharmacies and clinics where controlled
           substances are dispensed;
    J. "distribute" means to deliver other than by
           administering or dispensing a controlled substance or
    controlled substance analog;
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  1. 1  recognized as drugs in the official United States
  2. 2  pharmacopoeia, official homeopathic pharmacopoeia of the United
  3. 3  States or official national formulary or any respective
  4. 4  supplement to those publications. It does not include devices
  5. 5  or their components, parts or accessories;
  6. 6  L. “hashish” means the resin extracted from any
  7. 7  part of marijuana, whether growing or not, and every compound,
  8. 8  manufacture, salt, derivative, mixture or preparation of such
  9. 9  resins;
  10. 10  M. “manufacture” means the production, preparation,
  11. 11  compounding, conversion or processing of a controlled substance
  12. 12  or controlled substance analog by extraction from substances of
  13. 13  natural origin or independently by means of chemical synthesis
  14. 14  or by a combination of extraction and chemical synthesis and
  15. 15  includes any packaging or repackaging of the substance or
  16. 16  labeling or relabeling of its container, except that this term
  17. 17  does not include the preparation or compounding of a controlled
  18. 18  substance:
  19. 19  (1) by a practitioner as an incident to
  20. 20  administering or dispensing a controlled substance in the
           course of the practitioner's professional practice; or
    (2) by a practitioner, or by the
           practitioner's agent under the practitioner's supervision, for
    the purpose of or as an incident to research, teaching or
    chemical analysis and not for sale;
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           N.  "marijuana":
(1) means all parts of the plant cannabis,
including any and all varieties, species and subspecies of the
genus Cannabis, whether growing or not, the seeds thereof and
every compound, manufacture, salt, derivative, mixture or
preparation of the plant or its seeds; [It] and
                (2)  does not include:
(a) the mature stalks of the plant;
(b) hashish;
(c) tetrahydrocannabinols extracted or
isolated from marijuana;
(d) fiber produced from the stalks;
                      (e)  oil or cake made from the seeds of

the plant;

                      (f)  any other compound, manufacture,
salt, derivative, mixture or preparation of the mature stalks,
fiber, oil or cake; [or]
(g) the sterilized seed of the plant
that is incapable of germination; or
(h) industrial hemp or industrial hemp
commodities or products as defined in the Cannabis Revenue and
Freedom Act;
           O.  "narcotic drug" means any of the following,
whether produced directly or indirectly by extraction from
substances of vegetable origin or independently by means of
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  1. 1  chemical synthesis or by a combination of extraction and
  2. 2  chemical synthesis:
  3. 3  (1) opium and opiate and any salt, compound,
  4. 4  derivative or preparation of opium or opiate;
  5. 5  (2) any salt, compound, isomer, derivative or
  6. 6  preparation that is a chemical equivalent of any of the
  7. 7  substances referred to in Paragraph (1) of this subsection,
  8. 8  except the isoquinoline alkaloids of opium;
  9. 9  (3) opium poppy and poppy straw, including all
  10. 10  parts of the plant of the species Papaver somniferum L. except
  11. 11  its seeds; or
  12. 12  (4) coca leaves and any salt, compound,
  13. 13  derivative or preparation of coca leaves, any salt, compound,
  14. 14  isomer, derivative or preparation that is a chemical equivalent
  15. 15  of any of these substances except decocainized coca leaves or
  16. 16  extractions of coca leaves that do not contain cocaine or
  17. 17  ecgonine;
  18. 18  P. “opiate” means any substance having an
  19. 19  addiction-forming or addiction-sustaining liability similar to
  20. 20  morphine or being capable of conversion into a drug having
           addiction-forming or addiction-sustaining liability.  "Opiate"
    does not include, unless specifically designated as controlled
    under Section 30-31-5 NMSA 1978, the dextrorotatory isomer of
    3-methoxy-n-methylmorphinan and its salts, dextromethorphan.
    "Opiate" does include its racemic and levorotatory forms;
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  1. 1  Q. “person” means an individual, partnership,
  2. 2  corporation, association, institution, political subdivision,
  3. 3  government agency or other legal entity;
  4. 4  R. “practitioner” means a physician, certified
  5. 5  advanced practice chiropractic physician, doctor of oriental
  6. 6  medicine, dentist, physician assistant, certified nurse
  7. 7  practitioner, clinical nurse specialist, certified nurse-
  8. 8  midwife, prescribing psychologist, veterinarian, euthanasia
  9. 9  technician, pharmacist, pharmacist clinician or other person
  10. 10  licensed or certified to prescribe and administer drugs that
  11. 11  are subject to the Controlled Substances Act;
  12. 12  S. “prescription” means an order given individually
  13. 13  for the person for whom is prescribed a controlled substance,
  14. 14  either directly from a licensed practitioner or the
  15. 15  practitioner’s agent to the pharmacist, including by means of
  16. 16  electronic transmission, or indirectly by means of a written
  17. 17  order signed by the prescriber, bearing the name and address of
  18. 18  the prescriber, the prescriber’s license classification, the
  19. 19  name and address of the patient, the name and quantity of the
  20. 20  drug prescribed, directions for use and the date of issue and
           in accordance with the Controlled Substances Act or rules
    adopted thereto;
                     T.  "scientific investigator" means a person
    registered to conduct research with controlled substances in
    the course of the person's professional practice or research
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  1. 1  and includes analytical laboratories;
  2. 2  U. “ultimate user” means a person who lawfully
  3. 3  possesses a controlled substance for the person’s own use or
  4. 4  for the use of a member of the person’s household or for
  5. 5  administering to an animal under the care, custody and control
  6. 6  of the person or by a member of the person’s household;
  7. 7  V. “drug paraphernalia” means all equipment,
  8. 8  products and materials of any kind that are used, intended for
  9. 9  use or designed for use in planting, propagating, cultivating,
  10. 10  growing, harvesting, manufacturing, compounding, converting,
  11. 11  producing, processing, preparing, testing, analyzing,
  12. 12  packaging, repackaging, storing, containing, concealing,
  13. 13  injecting, ingesting, inhaling or otherwise introducing into
  14. 14  the human body a controlled substance or controlled substance
  15. 15  analog in violation of the Controlled Substances Act. It
  16. 16  includes:
                           (1)  kits used, intended for use or designed
  1. 18  for use in planting, propagating, cultivating, growing or
  2. 19  harvesting any species of plant that is a controlled substance
  3. 20  or controlled substance analog or from which a controlled
           substance can be derived;
    (2) kits used, intended for use or designed
           for use in manufacturing, compounding, converting, producing,
    processing or preparing controlled substances or controlled
    substance analogs;
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                (3)  isomerization devices used, intended for
use or designed for use in increasing the potency of any
species of plant that is a controlled substance;
(4) testing equipment used, intended for use
or designed for use in identifying or in analyzing the
strength, effectiveness or purity of controlled substances or
controlled substance analogs;
                (5)  scales or balances used, intended for use
or designed for use in weighing or measuring controlled
substances or controlled substance analogs;
(6) diluents and adulterants, such as quinine
hydrochloride, mannitol, mannite dextrose and lactose, used,
intended for use or designed for use in cutting controlled
substances or controlled substance analogs;
                (7)  separation gins and sifters used, intended
for use or designed for use in removing twigs and seeds from,
or in otherwise cleaning and refining, marijuana;
(8) blenders, bowls, containers, spoons and
mixing devices used, intended for use or designed for use in
compounding controlled substances or controlled substance
analogs;
                (9)  capsules, balloons, envelopes and other
containers used, intended for use or designed for use in
packaging small quantities of controlled substances or
controlled substance analogs;
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                (10)  containers and other objects used,
intended for use or designed for use in storing or concealing
controlled substances or controlled substance analogs;
(11) hypodermic syringes, needles and other
objects used, intended for use or designed for use in
parenterally injecting controlled substances or controlled
substance analogs into the human body;
                (12)  objects used, intended for use or
designed for use in ingesting, inhaling or otherwise
introducing marijuana, cocaine, hashish or hashish oil into the
human body, such as:
                      (a)  metal, wooden, acrylic, glass,
stone, plastic or ceramic pipes, with or without screens,
permanent screens, hashish heads or punctured metal bowls;
(b) water pipes;
                      (c)  carburetion tubes and devices;
(d) smoking and carburetion masks;
(e) roach clips, meaning objects used to
hold burning material, such as a marijuana cigarette, that has
become too small to hold in the hand;
vials;
(f)  miniature cocaine spoons and cocaine
(g)  chamber pipes;
(h) carburetor pipes;
(i) electric pipes;
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                      (j)  air-driven pipes;
(k) chilams;
(l) bongs; or
(m) ice pipes or chillers; and
                (13)  in determining whether an object is drug
paraphernalia, a court or other authority should consider, in
addition to all other logically relevant factors, the
following:
in control

and space,
Act or any
controlled

controlled

controlled
object;
           (a)  statements by the owner or by anyone
of the object concerning its use;
           (b)  the proximity of the object, in time
to a direct violation of the Controlled Substances
other law relating to controlled substances or
substance analogs;
           (c)  the proximity of the object to
substances or controlled substance analogs;
           (d)  the existence of any residue of a
substance or controlled substance analog on the
                      (e)  instructions, written or oral,
provided with the object concerning its use;
                      (f)  descriptive materials accompanying
the object that explain or depict its use;
                      (g)  the manner in which the object is
displayed for sale; and
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  1. 1  (h) expert testimony concerning its use;
  2. 2  W. “controlled substance analog” means a substance
  3. 3  other than a controlled substance that has a chemical structure
  4. 4  substantially similar to that of a controlled substance in
  5. 5  Schedule I, II, III, IV or V or that was specifically designed
  6. 6  to produce effects substantially similar to that of controlled
  7. 7  substances in Schedule I, II, III, IV or V. Examples of
  8. 8  chemical classes in which controlled substance analogs are
  9. 9  found include the following:
  10. 10  (1) phenethylamines;
  11. 11  (2) N-substituted piperidines;
  12. 12  (3) morphinans;
  13. 13  (4) ecgonines;
  14. 14  (5) quinazolinones;
  15. 15  (6) substituted indoles; and
  16. 16  (7) arylcycloalkylamines.
  17. 17  Specifically excluded from the definition of “controlled
  18. 18  substance analog” are those substances that are generally
  19. 19  recognized as safe and effective within the meaning of the
  20. 20  Federal Food, Drug, and Cosmetic Act or have been manufactured,
           distributed or possessed in conformance with the provisions of
    an approved new drug application or an exemption for
    investigational use within the meaning of Section 505 of the
    Federal Food, Drug, and Cosmetic Act;
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X.  "human consumption" includes application,
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  1. 1  injection, inhalation, ingestion or any other manner of
  2. 2  introduction;
  3. 3  Y. “drug-free school zone” means a public school,
  4. 4  parochial school or private school or property that is used for
  5. 5  a public, parochial or private school purpose and the area
  6. 6  within one thousand feet of the school property line, but it
  7. 7  does not mean any post-secondary school; and
  8. 8  Z. “valid practitioner-patient relationship” means
  9. 9  a professional relationship, as defined by the practitioner’s
  10. 10  licensing board, between the practitioner and the patient.”
  11. 11  SECTION 65. Section 30-31-6 NMSA 1978 (being Laws 1972,
  12. 12  Chapter 84, Section 6, as amended) is amended to read:
  13. 13  “30-31-6. SCHEDULE I.–The following controlled
  14. 14  substances are included in Schedule I:
  15. 15  A. any of the following opiates, including their
  16. 16  isomers, esters, ethers, salts, and salts of isomers, esters
  17. 17  and ethers, unless specifically exempted, whenever the
  18. 18  existence of these isomers, esters, ethers and salts is
  19. 19  possible within the specific chemical designation:
20
21
22
23
24
25
(1)  acetylmethadol;
(2) allylprodine;
(3) alphacetylmethadol;
(4) alphameprodine;
(5) alphamethadol;
(6) benzethidine;
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(7)  betacetylmethadol;
(8) betameprodine;
(9) betamethadol;
(10) betaprodine;
(11)  clonitazene;
(12) dextromoramide;
(13) dextrorphan;
(14) diampromide;
(15) diethylthiambutene;
(16) dimenoxadol;
(17) dimepheptanol;
(18) dimethylthiambutene;
(19) dioxaphetyl butyrate;
(20) dipipanone;
(21) ethylmethylthiambutene;
(22) etonitazene;
(23) etoxeridine;
(24) furethidine;
(25) hydroxypethidine;
(26) ketobemidone;
(27) levomoramide;
(28) levophenacylmorphan;
(29) morpheridine;
(30) noracymethadol;
(31) norlevorphanol;
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  1. 1  (32) normethadone;
  2. 2  (33) norpipanone;
  3. 3  (34) phenadoxone;
  4. 4  (35) phenampromide;
  5. 5  (36) phenomorphan;
  6. 6  (37) phenoperidine;
  7. 7  (38) piritramide;
  8. 8  (39) proheptazine;
  1. 9  (40) properidine;
  2. 10  (41) racemoramide; and
  3. 11  (42) trimeperidine;
  4. 12  B. any of the following opium derivatives, their
  5. 13  salts, isomers and salts of isomers, unless specifically
  6. 14  exempted, whenever the existence of these salts, isomers and
  7. 15  salts of isomers is possible within the specific chemical
  8. 16  designation:
17
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(1)  acetorphine;
(2) acetyldihydrocodeine;
(3) benzylmorphine;
(4) codeine methylbromide;
(5) codeine-N-oxide;
(6) cyprenorphine;
(7) desomorphine;
(8) dihydromorphine;
(9) etorphine;
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  1. 1  (10) heroin;
  2. 2  (11) hydromorphinol;
  3. 3  (12) methyldesorphine;
  4. 4  (13) methyldihydromorphine;
  5. 5  (14) morphine methylbromide;
  6. 6  (15) morphine methylsulfonate;
  7. 7  (16) morphine-N-oxide;
  8. 8  (17) myrophine;
  9. 9  (18) nicocodeine;
  10. 10  (19) nicomorphine;
  11. 11  (20) normorphine;
  12. 12  (21) pholcodine; and
  13. 13  (22) thebacon;
  14. 14  C. any material, compound, mixture or preparation
  15. 15  that contains any quantity of the following hallucinogenic
  16. 16  substances, their salts, isomers and salts of isomers, unless
  17. 17  specifically exempted, whenever the existence of these salts,
  18. 18  isomers and salts of isomers is possible within the specific
  19. 19  chemical designation:
20
21
22
23
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(1)  3,4-methylenedioxy amphetamine;
(2) 5-methoxy-3,4-methylenedioxy amphetamine;
(3) 3,4,5-trimethoxy amphetamine;
(4) bufotenine;
(5) diethyltryptamine;
(6) dimethyltryptamine;
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  1. 1  (7) 4-methyl-2,5-dimethoxy amphetamine;
  2. 2  (8) ibogaine;
  3. 3  (9) lysergic acid diethylamide;
  4. 4  (10) marijuana;
  5. 5  (11) mescaline;
  6. 6  (12) peyote, except as otherwise provided in
  7. 7  the Controlled Substances Act;
  1. 8  (13)
  2. 9  (14)
  3. 10  (15)
  4. 11  (16)
  5. 12  (17)
  6. 13  (18)
  7. 14  (19)

15

 N-ethyl-3-piperidyl benzilate;
N-methyl-3-piperidyl benzilate;
psilocybin;
psilocyn;
tetrahydrocannabinols;

hashish;

 synthetic cannabinoids, including:
(a) 1-[2-(4-(morpholinyl)ethyl]
16 -3-(1-naphthoyl)indole;
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(b)  1-butyl-3-(1-napthoyl)indole;
(c) 1-hexyl-3-(1-naphthoyl)indole;
(d) 1-pentyl-3-(1-naphthoyl)indole;
(e) 1-pentyl-3-(2-methoxyphenylacetyl)
indole;
                      (f)  cannabicyclohexanol (CP 47, 497 and
homologues: 5-(1,1-dimethylheptyl)-2-[(1R,3S)
-3-hydroxycyclohexyl]-phenol (CP-47,497); and 5-(1,
1-dimethyloctyl)-2-[(1R,3S)-3-hydroxycyclohexyl]-phenol;
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  1. 1  (g) 6aR,10aR)-9-(hydroxymethyl)
  2. 2  -6,6-dimethyl-3-(2-methyloctan-2-yl)-6a,7,10,
  3. 3  10a-tetrahydrobenzo[c]chromen-1-ol);
  4. 4  (h) dexanabinol, (6aS,10aS)
  5. 5  -9-(hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)
  6. 6  -6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol;
  7. 7  (i) 1-pentyl-3-(4-chloro naphthoyl)
  8. 8  indole;
  9. 9  (j) (2-methyl-1-propyl-1H-indol-3-yl)
  10. 10  -1-naphthalenyl-methanone; and
(k)  5-(1,1-dimethylheptyl)-2-(3-hydroxy
11

  1. 12  cyclohexyl)-phenol;
  2. 13  (20)
  3. 14  (21)
  4. 15  (22)
  5. 16  (23)
  6. 17  (24)
  7. 18  (25)
  8. 19  D. the enumeration of peyote as a controlled
  9. 20  substance does not apply to the use of peyote in bona fide
           religious ceremonies by a bona fide religious organization, and
    members of the organization so using peyote are exempt from
    registration. Any person who manufactures peyote for or
    distributes peyote to the organization or its members shall
    comply with the federal Comprehensive Drug Abuse Prevention and
3,4-methylenedioxymethcathinone;
3,4-methylenedioxypyrovalerone;
4-methylmethcathinone;
4-methoxymethcathinone;
3-fluoromethcathinone; and
4-fluoromethcathinone;
21 22 23 24 25
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Control Act of 1970 and all other requirements of law;
E. the enumeration of marijuana,
tetrahydrocannabinols or chemical derivatives of
tetrahydrocannabinol as Schedule I controlled substances does
not apply to the use of marijuana, tetrahydrocannabinols or
chemical derivatives of tetrahydrocannabinol:
                (1)  by certified patients pursuant to the
Controlled Substances Therapeutic Research Act or by qualified
patients pursuant to the provisions of the Lynn and Erin
Compassionate Use Act; [and] or
                (2)  for the purpose of or with respect to
conduct in compliance with the Cannabis Revenue and Freedom

Act; and

           F.  controlled substances added to Schedule I by
rule adopted by the board pursuant to Section 30-31-3 NMSA
1978."

SECTION 66. Section 30-31-12 NMSA 1978 (being Laws 1972, Chapter 84, Section 12, as amended) is amended to read:

     "30-31-12.  REGISTRATION REQUIREMENTS.--
A. Except for a person who is licensed pursuant to
the Cannabis Revenue and Freedom Act, and only with respect to
conduct that is pursuant to and in compliance with that act, a
person who manufactures, distributes or dispenses a controlled
substance or who proposes to engage in the manufacture,
distribution or dispensing of a controlled substance shall
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obtain a registration issued by the board in accordance with
its regulations.
           B.  Persons registered by the board to manufacture,
distribute, dispense or conduct research with controlled
substances may possess, manufacture, distribute, dispense,
prescribe or conduct research with those substances to the
extent authorized by their registration and in conformity with
the other provisions of the Controlled Substances Act.
           C.  The following persons need not register and may
lawfully possess controlled substances:
                (1)  an agent of a registered manufacturer,
distributor or dispenser of a controlled substance if the agent
is acting in the usual course of the agent's principal's
business or employment;
                (2)  a common or contract carrier or
warehouseman, or an employee whose possession of a controlled
substance is in the usual course of the common or contract
carrier or warehouseman's business; or
                (3)  an ultimate user.
D. The board may waive by regulation the
requirement for registration of certain manufacturers,
distributors or dispensers if it is consistent with the public
health and safety.
           E.  The board may inspect the establishment of a
registrant or applicant for registration in accordance with the
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board’s regulations.”
SECTION 67. Section 30-31-20 NMSA 1978 (being Laws 1972,

Chapter 84, Section 20, as amended) is amended to read:
"30-31-20. TRAFFICKING CONTROLLED SUBSTANCES--
VIOLATION.--
A. As used in the Controlled Substances Act,
"traffic" means the:
(1) manufacture of a controlled substance
enumerated in Schedules I through V or a controlled substance
analog as defined in Subsection W of Section 30-31-2 NMSA 1978;
                (2)  distribution, sale, barter or giving away

of:

                      (a)  a controlled substance enumerated in
Schedule I or II that is a narcotic drug;
                      (b)  a controlled substance analog of a
controlled substance enumerated in Schedule I or II that is a
narcotic drug; or
                      (c)  methamphetamine, its salts, isomers
and salts of isomers; or
                (3)  possession with intent to distribute:
(a) a controlled substance enumerated in
Schedule I or II that is a narcotic drug;
(b) a controlled substance analog of a
controlled substance enumerated in Schedule I or II that is a
narcotic drug; or
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                      (c)  methamphetamine, its salts, isomers
and salts of isomers.
B. Except as authorized by the Controlled
Substances Act or the Cannabis Revenue and Freedom Act, it is
unlawful for a person to intentionally traffic. A person who
violates this subsection is:
                (1)  for the first offense, guilty of a second
degree felony and shall be sentenced pursuant to the provisions
of Section 31-18-15 NMSA 1978; and
(2) for the second and subsequent offenses,
guilty of a first degree felony and shall be sentenced pursuant
to the provisions of Section 31-18-15 NMSA 1978.
           C.  A person who knowingly violates Subsection B of
this section within a drug-free school zone excluding private
property residentially zoned or used primarily as a residence
is guilty of a first degree felony and shall be sentenced
pursuant to the provisions of Section 31-18-15 NMSA 1978."

SECTION 68. Section 30-31-21 NMSA 1978 (being Laws 1972, Chapter 84, Section 21, as amended) is amended to read:

     "30-31-21.  DISTRIBUTION TO A MINOR.--
A. Except as authorized by the Controlled
Substances Act and as provided in the Cannabis Revenue and
Freedom Act, no person who is eighteen years of age or older
shall intentionally distribute a controlled substance to a
person under the age of eighteen years. Any person who
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violates this section with respect to:
[A.] (1) marijuana is:
                      [(1)] (a)  for the first offense, guilty
of a third degree felony and shall be sentenced pursuant to the
provisions of Section 31-18-15 NMSA 1978; and
[(2)] (b) for the second and subsequent
offenses,
sentenced
1978; and
guilty of a second degree felony and shall be
pursuant to the provisions of Section 31-18-15 NMSA
                [B.] (2)  any other controlled substance
enumerated in [Schedules] Schedule I, II, III or IV or a
controlled substance analog of any controlled substance
enumerated in Schedule I, II, III or IV is:
                      [(1)] (a)  for the first offense, guilty
of a second degree felony and shall be sentenced pursuant to
the provisions of Section 31-18-15 NMSA 1978; and
[(2)] (b) for the second and subsequent
offenses, guilty of a first degree felony and shall be
sentenced pursuant to the provisions of Section 31-18-15 NMSA
1978.
           B.  As provided in the Cannabis Revenue and Freedom
Act, a licensed marijuana processor, marijuana producer,
marijuana retailer or marijuana wholesaler or a licensee
representative of those licensees shall not sell or deliver
marijuana items to a person who is younger than twenty-one
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  1. 1  years of age. A person who violates the provisions of this
  2. 2  subsection is guilty of a fourth degree felony.”
  3. 3  SECTION 69. Section 30-31-22 NMSA 1978 (being Laws 1972,
  4. 4  Chapter 84, Section 22, as amended) is amended to read:
  5. 5  “30-31-22. CONTROLLED OR COUNTERFEIT SUBSTANCES–
  6. 6  DISTRIBUTION PROHIBITED.–
  7. 7  A. Except as authorized by the Controlled
  8. 8  Substances Act or as authorized by the Cannabis Revenue and
  9. 9  Freedom Act, it is unlawful for a person to intentionally
  10. 10  distribute or possess with intent to distribute a controlled
  11. 11  substance or a controlled substance analog except a substance
  12. 12  enumerated in Schedule I or II that is a narcotic drug, a
  13. 13  controlled substance analog of a controlled substance
  14. 14  enumerated in Schedule I or II that is a narcotic drug or
  15. 15  methamphetamine, its salts, isomers and salts of isomers. A
  16. 16  person who violates this subsection with respect to:
  17. 17  (1) marijuana or synthetic cannabinoids is:
  18. 18  (a) for the first offense, guilty of a
  19. 19  fourth degree felony and shall be sentenced pursuant to the
  20. 20  provisions of Section 31-18-15 NMSA 1978;
  21. 21  (b) for the second and subsequent
  22. 22  offenses, guilty of a third degree felony and shall be
  23. 23  sentenced pursuant to the provisions of Section 31-18-15 NMSA
  24. 24  1978;

25
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(c)  for the first offense, if more than
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  1. 1  one hundred pounds is possessed with intent to distribute or
  2. 2  distributed or both, guilty of a third degree felony and shall
  3. 3  be sentenced pursuant to the provisions of Section 31-18-15
  4. 4  NMSA 1978; and
  5. 5  (d) for the second and subsequent
  6. 6  offenses, if more than one hundred pounds is possessed with
  7. 7  intent to distribute or distributed or both, guilty of a second
  8. 8  degree felony and shall be sentenced pursuant to the provisions
  9. 9  of Section 31-18-15 NMSA 1978;
  10. 10  (2) any other controlled substance enumerated in
  11. 11  Schedule I, II, III or IV or a controlled substance analog of a
  12. 12  controlled substance enumerated in Schedule I, II, III or IV
  13. 13  except a substance enumerated in Schedule I or II that is a
  14. 14  narcotic drug, a controlled substance analog of a controlled
  15. 15  substance enumerated in Schedule I or II that is a narcotic
  16. 16  drug or methamphetamine, its salts, isomers and salts of
  17. 17  isomers, is:
  18. 18  (a) for the first offense, guilty of a third
  19. 19  degree felony and shall be sentenced pursuant to the provisions
  20. 20  of Section 31-18-15 NMSA 1978; and
                             (b)  for the second and subsequent offenses,
    guilty of a second degree felony and shall be sentenced
           pursuant to the provisions of Section 31-18-15 NMSA 1978; and
    (3) a controlled substance enumerated in
           Schedule V or a controlled substance analog of a controlled
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  1. 1  substance enumerated in Schedule V is guilty of a misdemeanor
  2. 2  and shall be punished by a fine of not less than one hundred
  3. 3  dollars ($100) or more than five hundred dollars ($500) or by
  4. 4  imprisonment for a definite term not less than one hundred
  5. 5  eighty days but less than one year, or both.
  6. 6  B. Subsection A of this section shall not apply to a
  7. 7  person who is twenty-one years of age or older and who, in
  8. 8  compliance with the Cannabis Revenue and Freedom Act,
  9. 9  distributes marijuana items to a person who is twenty-one years
  10. 10  of age or older or possesses marijuana items with the intent to
  11. 11  distribute in compliance with that act.
  12. 12  [B.] C. It is unlawful for a person to distribute
  13. 13  gamma hydroxybutyric acid or flunitrazepam to another person
  14. 14  without that person’s knowledge and with intent to commit a
  15. 15  crime against that person, including criminal sexual
  16. 16  penetration. For the purposes of this subsection, “without
  17. 17  that person’s knowledge” means the person is unaware that a
  18. 18  substance with the ability to alter that person’s ability to
  19. 19  appraise conduct or to decline participation in or communicate
  20. 20  unwillingness to participate in conduct is being distributed to
           that person.  Any person who violates this subsection is:
    (1) for the first offense, guilty of a third
           degree felony and shall be sentenced pursuant to the provisions
    of Section 31-18-15 NMSA 1978; and
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  1. 1  guilty of a second degree felony and shall be sentenced
  2. 2  pursuant to the provisions of Section 31-18-15 NMSA 1978.
  3. 3  [C.] D. Except as authorized by the Controlled
  4. 4  Substances Act, it is unlawful for a person to intentionally
  5. 5  create or deliver, or possess with intent to deliver, a
  6. 6  counterfeit substance. A person who violates this subsection
  7. 7  with respect to:
  8. 8  (1) a counterfeit substance enumerated in
  9. 9  Schedule I, II, III or IV is guilty of a fourth degree felony
  10. 10  and shall be sentenced pursuant to the provisions of Section
  11. 11  31-18-15 NMSA 1978; and
  12. 12  (2) a counterfeit substance enumerated in
  13. 13  Schedule V is guilty of a petty misdemeanor and shall be
  14. 14  punished by a fine of not more than one hundred dollars ($100)
  15. 15  or by imprisonment for a definite term not to exceed six
  16. 16  months, or both.
  17. 17  [D.] E. A person who knowingly violates Subsection A
  18. 18  or [C] D of this section while within a drug-free school zone
  19. 19  with respect to:
                        (1)  marijuana or synthetic cannabinoids is:
    (a) for the first offense, guilty of a third
    degree felony and shall be sentenced pursuant to the provisions
           of Section 31-18-15 NMSA 1978;
    (b) for the second and subsequent offenses,
           guilty of a second degree felony and shall be sentenced
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  1. 1  pursuant to the provisions of Section 31-18-15 NMSA 1978;
  2. 2  (c) for the first offense, if more than one
  3. 3  hundred pounds is possessed with intent to distribute or
  4. 4  distributed or both, guilty of a second degree felony and shall
  5. 5  be sentenced pursuant to the provisions of Section 31-18-15
  6. 6  NMSA 1978; and
  7. 7  (d) for the second and subsequent offenses,
  8. 8  if more than one hundred pounds is possessed with intent to
  9. 9  distribute or distributed or both, guilty of a first degree
  10. 10  felony and shall be sentenced pursuant to the provisions of
  11. 11  Section 31-18-15 NMSA 1978;
  12. 12  (2) any other controlled substance enumerated in
  13. 13  Schedule I, II, III or IV or a controlled substance analog of a
  14. 14  controlled substance enumerated in Schedule I, II, III or IV
  15. 15  except a substance enumerated in Schedule I or II that is a
  16. 16  narcotic drug, a controlled substance analog of a controlled
  17. 17  substance enumerated in Schedule I or II that is a narcotic
  18. 18  drug or methamphetamine, its salts, isomers and salts of
  19. 19  isomers, is:
  20. 20  (a) for the first offense, guilty of a
           second degree felony and shall be sentenced pursuant to the
    provisions of Section 31-18-15 NMSA 1978; and
                             (b)  for the second and subsequent offenses,
    guilty of a first degree felony and shall be sentenced pursuant
           to the provisions of Section 31-18-15 NMSA 1978;
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              (3)  a controlled substance enumerated in
Schedule V or a controlled substance analog of a controlled
substance enumerated in Schedule V is guilty of a fourth degree
felony and shall be sentenced pursuant to the provisions of
Section 31-18-15 NMSA 1978; and
              (4)  the intentional creation, delivery or
possession with the intent to deliver:
                  (a)  a counterfeit substance enumerated in
Schedule I, II, III or IV is guilty of a third degree felony
and shall be sentenced pursuant to the provisions of Section
31-18-15 NMSA 1978; and
(b) a counterfeit substance enumerated in
Schedule V is guilty of a misdemeanor and shall be punished by
a fine of not less than one hundred dollars ($100) nor more
than five hundred dollars ($500) or by imprisonment for a
definite term not less than one hundred eighty days but less
than one year, or both.
         [E.] F.  Notwithstanding the provisions of Subsection
A of this section and the provisions of the Cannabis Revenue
and Freedom Act, distribution of a small amount of marijuana or
synthetic cannabinoids for no remuneration shall be treated as
provided in Paragraph (1) of Subsection B of Section 30-31-23
NMSA 1978."

SECTION 70. Section 30-31-23 NMSA 1978 (being Laws 1972, Chapter 84, Section 23, as amended) is amended to read:

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  1. 1  “30-31-23. CONTROLLED SUBSTANCES–POSSESSION
  2. 2  PROHIBITED.–
  3. 3  A. It is unlawful for a person, other than a licensee
  4. 4  or a licensee representative as defined in the Cannabis Revenue
  5. 5  and Freedom Act and only with respect to conduct pursuant to
  6. 6  and in compliance with that act, to intentionally [to] possess
  7. 7  a controlled substance unless the substance was obtained
  8. 8  pursuant to a valid prescription or order of a practitioner
  9. 9  while acting in the course of professional practice or except
  10. 10  as otherwise authorized by the Controlled Substances Act or the
  11. 11  Cannabis Revenue and Freedom Act. It is unlawful for a person
  12. 12  intentionally to possess a controlled substance analog.
  13. 13  B. Notwithstanding the provisions of the Cannabis
  14. 14  Revenue and Freedom Act, a person who violates this section
  15. 15  with respect to:
  16. 16  (1) one ounce or less of marijuana or synthetic
  17. 17  cannabinoids is, for the first offense, guilty of a petty
  18. 18  misdemeanor and shall be punished by a fine of not less than
  19. 19  fifty dollars ($50.00) or more than one hundred dollars ($100)
  20. 20  and by imprisonment for not more than fifteen days, and, for
           the second and subsequent offenses, guilty of a misdemeanor and
    shall be punished by a fine of not less than one hundred
    dollars ($100) or more than one thousand dollars ($1,000) or by
    imprisonment for a definite term less than one year, or both;
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(2)  more than one ounce and less than eight
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  1. 1  ounces of marijuana or synthetic cannabinoids is guilty of a
  2. 2  misdemeanor and shall be punished by a fine of not less than
  3. 3  one hundred dollars ($100) or more than one thousand dollars
  4. 4  ($1,000) or by imprisonment for a definite term less than one
  5. 5  year, or both; or
  6. 6  (3) eight ounces or more of marijuana or
  7. 7  synthetic cannabinoids is guilty of a fourth degree felony and
  8. 8  shall be sentenced pursuant to the provisions of Section
  9. 9  31-18-15 NMSA 1978.
  10. 10  C. A minor who violates this section with respect to
  11. 11  the substances listed in this subsection is guilty of a petty
  12. 12  misdemeanor and, notwithstanding the provisions of Sections
  13. 13  32A-1-5 and 32A-2-19 NMSA 1978, shall be punished by a fine not
  14. 14  to exceed one hundred dollars ($100) or forty-eight hours of
  15. 15  community service. For the third or subsequent violation by a
  16. 16  minor of this section with respect to those substances, the
  17. 17  provisions of Section 32A-2-19 NMSA 1978 shall govern
  18. 18  punishment of the minor. As used in this subsection, “minor”
  19. 19  means a person who is less than eighteen years of age. The
  20. 20  provisions of this subsection apply to the following
    substances:
                        (1)  synthetic cannabinoids;
                        (2)  any of the substances listed in Paragraphs
    (20) through (25) of Subsection C of Section 30-31-6 NMSA 1978;
    or
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  1. 1  (3) a substance added to Schedule I by a rule of
  2. 2  the board adopted on or after [the effective date of this]
  3. 3  March 31, 2011 [act] if the board determines that the
  4. 4  pharmacological effect of the substance, the risk to the public
  5. 5  health by abuse of the substance and the potential of the
  6. 6  substance to produce psychic or physiological dependence
  7. 7  liability is similar to the substances described in Paragraph
  8. 8  (1) or (2) of this subsection.
  9. 9  D. Notwithstanding the provisions of the Cannabis
  10. 10  Revenue and Freedom Act, except for those substances listed in
  11. 11  Subsection E of this section, a person who violates this
  12. 12  section with respect to any amount of any controlled substance
  13. 13  enumerated in Schedule I, II, III or IV or a controlled
  14. 14  substance analog of a substance enumerated in Schedule I, II,
  15. 15  III or IV is guilty of a misdemeanor and shall be punished by a
  16. 16  fine of not less than five hundred dollars ($500) or more than
  17. 17  one thousand dollars ($1,000) or by imprisonment for a definite
  18. 18  term less than one year, or both.
  19. 19  E. A person who violates this section with respect to
  20. 20  phencyclidine as enumerated in Schedule III or a controlled
           substance analog of phencyclidine; methamphetamine, its salts,
    isomers or salts of isomers as enumerated in Schedule II or a
    controlled substance analog of methamphetamine, its salts,
    isomers or salts of isomers; flunitrazepam, its salts, isomers
    or salts of isomers as enumerated in Schedule I or a controlled
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  1. 1  substance analog of flunitrazepam, including naturally
  2. 2  occurring metabolites, its salts, isomers or salts of isomers;
  3. 3  gamma hydroxybutyric acid and any chemical compound that is
  4. 4  metabolically converted to gamma hydroxybutyric acid, its
  5. 5  salts, isomers or salts of isomers as enumerated in Schedule I
  6. 6  or a controlled substance analog of gamma hydroxybutyric acid,
  7. 7  its salts, isomers or salts of isomers; gamma butyrolactone and
  8. 8  any chemical compound that is metabolically converted to gamma
  9. 9  hydroxybutyric acid, its salts, isomers or salts of isomers as
  10. 10  enumerated in Schedule I or a controlled substance analog of
  11. 11  gamma butyrolactone, its salts, isomers or salts of isomers; 1-
  12. 12  4 butane diol and any chemical compound that is metabolically
  13. 13  converted to gamma hydroxybutyric acid, its salts, isomers or
  14. 14  salts of isomers as enumerated in Schedule I or a controlled
  15. 15  substance analog of 1-4 butane diol, its salts, isomers or
  16. 16  salts of isomers; or a narcotic drug enumerated in Schedule I
  17. 17  or II or a controlled substance analog of a narcotic drug
  18. 18  enumerated in Schedule I or II is guilty of a fourth degree
  19. 19  felony and shall be sentenced pursuant to the provisions of
  20. 20  Section 31-18-15 NMSA 1978.
                    F.  Except for a minor as defined in Subsection C of
    this section, a person who violates Subsection A of this
    section while within a posted drug-free school zone, excluding
    private property residentially zoned or used primarily as a
    residence and excluding a person in or on a motor vehicle in
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  1. 1  transit through the posted drug-free school zone, with respect
  2. 2  to:
  3. 3  (1) one ounce or less of marijuana or synthetic
  4. 4  cannabinoids is, for the first offense, guilty of a misdemeanor
  5. 5  and shall be punished by a fine of not less than one hundred
  6. 6  dollars ($100) or more than one thousand dollars ($1,000) or by
  7. 7  imprisonment for a definite term less than one year, or both,
  8. 8  and for the second or subsequent offense, is guilty of a fourth
  9. 9  degree felony and shall be sentenced pursuant to the provisions
  10. 10  of Section 31-18-15 NMSA 1978;
  11. 11  (2) more than one ounce and less than eight
  12. 12  ounces of marijuana or synthetic cannabinoids is guilty of a
  13. 13  fourth degree felony and shall be sentenced pursuant to the
  14. 14  provisions of Section 31-18-15 NMSA 1978;
  15. 15  (3) eight ounces or more of marijuana or
  16. 16  synthetic cannabinoids is guilty of a third degree felony and
  17. 17  shall be sentenced pursuant to the provisions of Section
  18. 18  31-18-15 NMSA 1978;
  19. 19  (4) any amount of any other controlled substance
  20. 20  enumerated in Schedule I, II, III or IV or a controlled
           substance analog of a substance enumerated in Schedule I, II,
    III or IV, except phencyclidine as enumerated in Schedule III,
    a narcotic drug enumerated in Schedule I or II or a controlled
    substance analog of a narcotic drug enumerated in Schedule I or
    II, is guilty of a fourth degree felony and shall be sentenced
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pursuant to the provisions of Section 31-18-15 NMSA 1978; and
(5) phencyclidine as enumerated in Schedule III,
a narcotic drug enumerated in Schedule I or II, a controlled
substance analog of phencyclidine or a controlled substance
analog of a narcotic drug enumerated in Schedule I or II is
guilty of a third degree felony and shall be sentenced pursuant
to the provisions of Section 31-18-15 NMSA 1978."

SECTION 71. Section 30-31-24 NMSA 1978 (being Laws 1972, Chapter 84, Section 24, as amended) is amended to read:

     "30-31-24.  CONTROLLED SUBSTANCES--VIOLATIONS OF
ADMINISTRATIVE PROVISIONS.--
         A.  Notwithstanding the provisions of the Cannabis
Revenue and Freedom Act, it is unlawful for [any] a person:
              (1)  who is subject to Sections 30-31-11 through
30-31-19 NMSA 1978 to intentionally distribute or dispense a
controlled substance in violation of Section 30-31-18 NMSA
1978;
              (2)  who is a registrant to intentionally
manufacture a controlled substance not authorized by [his] the
person's registration or to intentionally distribute or
dispense a controlled substance not authorized by [his] the
person's registration to another registrant or other authorized
person;
              (3)  to intentionally refuse or fail to make,
keep or furnish [any] a record, notification, order form,
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statement, invoice or information required under the Controlled
Substances Act; or
              (4)  to intentionally refuse an entry into [any]
a premises for [any] an inspection authorized by the Controlled
Substances Act.
         B.  [Any] A person who violates this section is guilty
of a fourth degree felony and shall be sentenced pursuant to
the provisions of Section 31-18-15 NMSA 1978."

SECTION 72. Section 30-31-25 NMSA 1978 (being Laws 1972, Chapter 84, Section 25, as amended) is amended to read:

     "30-31-25.  CONTROLLED SUBSTANCES--PROHIBITED ACTS.--
A. Notwithstanding the provisions of the Cannabis
Revenue and Freedom Act, it is unlawful for any person:
(1) who is a registrant to distribute a
controlled substance classified in [Schedules] Schedule I or
II, except pursuant to an order form as required by Section
30-31-17 NMSA 1978;
              (2)  to intentionally use in the course of the
manufacture or distribution of a controlled substance a
registration number [which] that is fictitious, revoked,
suspended or issued to another person;
              (3)  to intentionally acquire or obtain or
attempt to acquire or obtain possession of a controlled
substance by misrepresentation, fraud, forgery, deception or
subterfuge;
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  1. 1  (4) to intentionally furnish false or fraudulent
  2. 2  material information in, or omit any material information from,
  3. 3  any application, report or other document required to be kept
  4. 4  or filed under the Controlled Substances Act, or any record
  5. 5  required to be kept by that act; or
  6. 6  (5) to intentionally make, distribute or possess
  7. 7  any punch, die, plate, stone or other thing designed to print,
  8. 8  imprint or reproduce the trademark, trade name or other
  9. 9  identifying mark, imprint or device of another or any likeness
  10. 10  of any of the foregoing, upon any drug or container or labeling
  11. 11  thereof so as to render the drug a counterfeit substance.
  12. 12  B. Any person who violates this section is guilty of
  13. 13  a fourth degree felony and shall be sentenced pursuant to the
  14. 14  provisions of Section 31-18-15 NMSA 1978.”
  15. 15  SECTION 73. Section 30-31-25.1 NMSA 1978 (being Laws
  16. 16  1981, Chapter 31, Section 2, as amended) is amended to read:
  17. 17  “30-31-25.1. POSSESSION, DELIVERY OR MANUFACTURE OF DRUG
  18. 18  PARAPHERNALIA PROHIBITED–EXCEPTIONS.–
  19. 19  A. It is unlawful for a person to use or possess with
  20. 20  intent to use drug paraphernalia to plant, propagate,
  21. 21  cultivate, grow, harvest, manufacture, compound, convert,
  22. 22  produce, process, prepare, test, analyze, pack, repack, store,
  23. 23  contain, conceal, inject, ingest, inhale or otherwise introduce
  24. 24  into the human body a controlled substance in violation of the
  25. 25  Controlled Substances Act. The provisions of this subsection
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  1. 1  do not apply to a person who is in possession of hypodermic
  2. 2  syringes or needles at the time [he] the person is directly and
  3. 3  immediately engaged in a harm reduction program, as provided in
  4. 4  the Harm Reduction Act.
  5. 5  B. It is unlawful for a person to deliver, possess
  6. 6  with intent to deliver or manufacture with the intent to
  7. 7  deliver drug paraphernalia with knowledge, or under
  8. 8  circumstances where one reasonably should know, that it will be
  9. 9  used to plant, propagate, cultivate, grow, harvest,
  10. 10  manufacture, compound, convert, produce, process, prepare,
  11. 11  test, analyze, pack, repack, store, contain, conceal, inject,
  12. 12  ingest, inhale or otherwise introduce into the human body a
  13. 13  controlled substance in violation of the Controlled Substances
  14. 14  Act. The provisions of this subsection do not apply to:
  15. 15  (1) department of health employees or their
  16. 16  designees while they are directly and immediately engaged in
  17. 17  activities related to the harm reduction program authorized by
  18. 18  the Harm Reduction Act; or
  19. 19  (2) the sale or distribution of hypodermic
  20. 20  syringes and needles by pharmacists licensed pursuant to the
           Pharmacy Act.
    C. A person who violates this section with respect to
           Subsection A of this section is guilty of a misdemeanor and
    upon conviction shall be punished by a fine of not less than
    fifty dollars ($50.00) nor more than one hundred dollars ($100)
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  1. 1  or by imprisonment for a definite term less than one year, or
  2. 2  both. A person who violates this section with respect to
  3. 3  Subsection B of this section is guilty of a misdemeanor.
  4. 4  D. A person eighteen years of age or over who
  5. 5  violates the provisions of Subsection B of this section by
  6. 6  delivering drug paraphernalia to a person under eighteen years
  7. 7  of age and who is at least three years [his] the person’s
  8. 8  junior is guilty of a fourth degree felony and shall be
  9. 9  sentenced pursuant to the provisions of Section 31-18-15 NMSA
  10. 10  1978.
  11. 11  E. For the purposes of this section, “marijuana
  12. 12  paraphernalia” means all equipment, products and materials of
  13. 13  any kind that are marketed for use or designed for use in
  14. 14  planting, propagating, cultivating, growing, harvesting,
  15. 15  manufacturing, compounding, converting, producing, processing,
  16. 16  preparing, testing, analyzing, packaging, repackaging, storing,
  17. 17  containing, concealing, injecting, ingesting, inhaling or
  18. 18  otherwise introducing into the human body marijuana in
  19. 19  violation of state law.
                    F.  The provisions of this section do not apply to a
    person who possesses, delivers, manufactures or sells marijuana
    paraphernalia to a person who is twenty-one years of age or
    older."

    SECTION 74. Section 30-31-26 NMSA 1978 (being Laws 1972, Chapter 84, Section 26) is amended to read:

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     "30-31-26.  PENALTIES UNDER OTHER LAWS.--Notwithstanding
the provisions of the Cannabis Revenue and Freedom Act:
A. any penalty imposed for violation of the
Controlled Substances Act is in addition to any civil or
administrative penalty or sanction otherwise provided by law;
and
         B.  a municipality may, by ordinance, prohibit
distribution or possession of a controlled substance enumerated
in Schedules I, II, III or IV but penalty provisions shall be
the same as those provided for a similar crime in the
Controlled Substances Act."

SECTION 75. Section 30-31-32 NMSA 1978 (being Laws 1972, Chapter 84, Section 31) is amended to read:

     "30-31-32.  ADMINISTRATIVE INSPECTIONS.--Notwithstanding
the provisions of the Cannabis Revenue and Freedom Act, the
board may make administrative inspections of controlled
premises in accordance with the following provisions:
         A.  for purposes of this section, "controlled
premises" means:
              (1)  places where persons registered or exempted
from registration requirements under the Controlled Substances
Act are required to keep records; and
              (2)  places, including factories, warehouses,
establishments and conveyances, in which persons registered or
exempted from registration requirements under the Controlled
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  1. 1  Substances Act are permitted to hold, manufacture, compound,
  2. 2  process, sell, deliver or otherwise dispose of any controlled
  3. 3  substance;
  4. 4  B. when authorized by an administrative inspection
  5. 5  warrant issued pursuant to Section [30] 30-31-31 NMSA 1978, an
  6. 6  officer or employee designated by the board, upon presenting
  7. 7  the warrant and appropriate credentials to the owner, operator
  8. 8  or agent in charge, may enter the controlled premises for the
  9. 9  purpose of conducting an administrative inspection;
  10. 10  C. when authorized by an administrative inspection
  11. 11  warrant, an officer or employee designated by the board may:
  12. 12  (1) inspect and copy records required by the
  13. 13  Controlled Substances Act to be kept;
  14. 14  (2) inspect, within reasonable limits and in a
  15. 15  reasonable manner, controlled premises and all pertinent
  16. 16  equipment, finished and unfinished material, containers and
  17. 17  labeling found therein, and, except as provided in Subsection E
  18. 18  of this section, all other things bearing on violations of the
  19. 19  Controlled Substances Act, including records, files, papers,
           processes, controls and facilities; and
    (3) inventory any stock of any controlled
           substance and obtain samples;
    D. this section does not prevent entries and
           administrative inspections, including seizures of property,
    without a warrant:
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              (1)  if the owner, operator or agent in charge of
the controlled premises consents;
              (2)  in situations presenting substantial
imminent danger to health or safety; or
              (3)  in all other situations in which a warrant
is not constitutionally required; and
         E.  an inspection authorized by this section shall not
extend to financial data, sales data other than shipment data
or pricing data unless the owner, operator or agent in charge
of the controlled premises consents in writing."

SECTION 76. Section 30-31-34 NMSA 1978 (being Laws 1972, Chapter 84, Section 33, as amended) is amended to read:

     "30-31-34.  FORFEITURES--PROPERTY SUBJECT.--
Notwithstanding the provisions of the Cannabis Revenue and
Freedom Act, the following are subject to forfeiture pursuant
to the provisions of the Forfeiture Act:
         A.  all raw materials, products and equipment of any
kind, including firearms that are used or intended for use in
manufacturing, compounding, processing, delivering, importing
or exporting any controlled substance or controlled substance
analog in violation of the Controlled Substances Act;
         B.  all property that is used or intended for use as a
container for property described in Subsection A of this
section;
         C.  all conveyances, including aircraft, vehicles or
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  1. 1  vessels that are used or intended for use to transport or in
  2. 2  any manner to facilitate the transportation for the purpose of
  3. 3  sale of property described in Subsection A of this section;
  4. 4  D. all books, records and research products and
  5. 5  materials, including formulas, microfilm, tapes and data that
  6. 6  are used or intended for use in violation of the Controlled
  7. 7  Substances Act;
  8. 8  E. narcotics paraphernalia or money that is a fruit
  9. 9  or instrumentality of the crime;
  10. 10  F. notwithstanding Subsection C of this section and
  11. 11  the provisions of the Forfeiture Act:
  12. 12  (1) a conveyance used by a person as a common
  13. 13  carrier in the transaction of business as a common carrier
  14. 14  shall not be subject to forfeiture pursuant to this section
  15. 15  unless it appears that the owner or other person in charge of
  16. 16  the conveyance is a consenting party or privy to a violation of
  17. 17  the Controlled Substances Act;
  18. 18  (2) a conveyance shall not be subject to
  19. 19  forfeiture pursuant to this section by reason of an act or
  20. 20  omission established for the owner to have been committed or
           omitted without the owner's knowledge or consent;
    (3) a conveyance is not subject to forfeiture
           for a violation of law the penalty for which is a misdemeanor;
    and
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  1. 1  bona fide security interest shall be subject to the interest of
  2. 2  a secured party if the secured party neither had knowledge of
  3. 3  nor consented to the act or omission; and
  4. 4  G. all drug paraphernalia as defined by Subsection V
  5. 5  of Section 30-31-2 NMSA 1978.”
  6. 6  SECTION 77. Section 30-31-36 NMSA 1978 (being Laws 1972,
  7. 7  Chapter 84, Section 35, as amended) is amended to read:
  8. 8  “30-31-36. SUMMARY FORFEITURE.–Notwithstanding the
  9. 9  provisions of the Cannabis Revenue and Freedom Act:
  10. 10  A. controlled substances listed in Schedule I or
  11. 11  controlled substance analogs of substances listed in Schedule I
  12. 12  that are possessed, transferred, sold or offered for sale in
  13. 13  violation of the Controlled Substances Act are contraband and
  14. 14  shall be seized and summarily forfeited to the state;
  15. 15  B. controlled substances listed in Schedule I or
  16. 16  controlled substance analogs of substances listed in Schedule I
  17. 17  [which] that are seized or come into the possession of the
  18. 18  state, the owners of which are unknown, are contraband and
  19. 19  shall be summarily forfeited to the state; and
  20. 20  C. species of plants from which controlled substances
  21. 21  in Schedules I and II or controlled substance analogs of
  22. 22  substances listed in Schedules I and II may be derived [which]
  23. 23  that have been planted or cultivated in violation of the
  24. 24  Controlled Substances Act or of which the owners or cultivators
           are unknown or [which] that are wild growths may be seized and
    .204493.4
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summarily forfeited to the state.”
SECTION 78. Section 30-31B-2 NMSA 1978 (being Laws 1989,

Chapter 177, Section 2, as amended) is amended to read:
"30-31B-2. DEFINITIONS.--As used in the Drug Precursor

Act:

         A.  "administer" means the direct application of a
controlled substance by any means to the body of a patient or
research subject by a practitioner or the practitioner's agent;
         B.  "agent" includes an authorized person who acts on
behalf of a manufacturer, distributor or dispenser. "Agent"
does not include a common or contract carrier, public
warehouseperson or employee of the carrier or warehouseperson;
         C.  "board" means the board of pharmacy;
         D.  "bureau" means the bureau of narcotics and
dangerous drugs of the United States department of justice or
its successor agency;
         E.  "controlled substance":
(1) means a drug or substance listed in
Schedules I through V of the Controlled Substances Act or
regulations adopted thereto; and
              (2)  does not include industrial hemp or
marijuana for the purpose of or conduct in compliance with the
Cannabis Revenue and Freedom Act;
         F.  "controlled substance analog" means a substance
other than a controlled substance that has a chemical structure
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  1. 1  substantially similar to that of a controlled substance in
  2. 2  Schedule I, II, III, IV or V or that was specifically designed
  3. 3  to produce effects substantially similar to that of controlled
  4. 4  substances in Schedule I, II, III, IV or V. Examples of
  5. 5  chemical classes in which controlled substance analogs are
  6. 6  found include, but are not limited to, the following:
  7. 7  (1) phenethylamines;
  8. 8  (2) N-substituted piperidines;
  9. 9  (3) morphinans;
  10. 10  (4) ecgonines;
  11. 11  (5) quinazolinones;
  12. 12  (6) substituted indoles; and
  13. 13  (7) arylcycloalkylamines.
  14. 14  Specifically excluded from the definition of “controlled
  15. 15  substance analog” are those substances that are generally
  16. 16  recognized as safe and effective within the meaning of the
  17. 17  Federal Food, Drug, and Cosmetic Act or have been manufactured,
  18. 18  distributed or possessed in conformance with the provisions of
  19. 19  an approved new drug application or an exemption for
  20. 20  investigational use within the meaning of Section 505 of the
           Federal Food, Drug, and Cosmetic Act;
    G. "deliver" means the actual, constructive or
           attempted transfer from one person to another of a controlled
    substance or controlled substance analog, whether or not there
    is an agency relationship;
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  1. 1  H. “dispense” means to deliver a controlled substance
  2. 2  to an ultimate user or research subject pursuant to the lawful
  3. 3  order of a practitioner, including the administering,
  4. 4  prescribing, packaging, labeling or compounding necessary to
  5. 5  prepare the controlled substance for that delivery;
  6. 6  I. “dispenser” means a practitioner who dispenses and
  7. 7  includes hospitals, pharmacies and clinics where controlled
  8. 8  substances are dispensed;
  9. 9  J. “distribute” means to deliver other than by
  10. 10  administering or dispensing a controlled substance or
  11. 11  controlled substance analog;
  12. 12  K. “drug” means substances recognized as drugs in the
  13. 13  official United States pharmacopoeia, official homeopathic
  14. 14  pharmacopoeia of the United States, official national formulary
  15. 15  or any respective supplement to these publications. “Drug”
  16. 16  does not include devices or their components, parts or
  17. 17  accessories;
  18. 18  L. “drug precursor” means a substance, material,
  19. 19  compound, mixture or preparation listed in Section 30-31B-3
  20. 20  NMSA 1978 or regulations adopted thereto or any of their salts
           or isomers.  "Drug precursor" specifically excludes those
    substances, materials, compounds, mixtures or preparations that
    are prepared for dispensing pursuant to a prescription or over-
    the-counter distribution as a substance that is generally
    recognized as safe and effective within the meaning of the
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  1. 1  Federal Food, Drug, and Cosmetic Act or have been manufactured,
  2. 2  distributed or possessed in conformance with the provisions of
  3. 3  an approved new drug application or an exemption for
  4. 4  investigational use within the meaning of Section 505 of the
  5. 5  Federal Food, Drug, and Cosmetic Act, unless the board makes
  6. 6  the findings required pursuant to Subsection B of Section
  7. 7  30-31B-4 NMSA 1978;
  8. 8  M. “immediate precursor” means a substance that is a
  9. 9  compound commonly used or produced primarily as an immediate
  10. 10  chemical intermediary used in the manufacture of a controlled
  11. 11  substance, the control of which is necessary to prevent,
  12. 12  curtail or limit the manufacture of controlled substances;
  13. 13  N. “license” means a license issued by the board to
  14. 14  manufacture, possess, transfer or transport a drug precursor;
  15. 15  O. “manufacture” means the production, preparation,
  16. 16  compounding, conversion or processing of a drug precursor by
  17. 17  extraction from substances of natural origin, independently by
  18. 18  means of chemical synthesis or by a combination of extraction
  19. 19  and chemical synthesis and includes any packaging or
  20. 20  repackaging of the substance or labeling or relabeling of its
           container, except that this term does not include the
    preparation or compounding of a controlled substance by a
    practitioner:
                        (1)  as an incident to the practitioner's
    administering or dispensing of a controlled substance in the
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course of professional practice; or
(2) by the practitioner's agent under the
practitioner's supervision for the purpose of or as an incident
to research, teaching or chemical analysis and not for sale;
         P.  "person" includes an individual, sole
proprietorship, partnership, corporation, association, the
state or a political subdivision of the state or other legal
entity;
         Q.  "possession" means to actively or constructively
exercise dominion over;
         R.  "practitioner" means a physician, certified
advanced practice chiropractic physician, dentist, veterinarian
or other person licensed to prescribe and administer drugs that
are subject to the Controlled Substances Act;
         S.  "prescription" means an order given individually
for the person for whom is prescribed a controlled substance,
either directly from the prescriber to the pharmacist or
indirectly by means of a written order signed by the prescriber
and in accordance with the Controlled Substances Act or
regulations adopted thereto; and
         T.  "transfer" means the sale, possession with intent
to sell, barter or giving away of a drug precursor."

SECTION 79. Section 47-8-3 NMSA 1978 (being Laws 1975, Chapter 38, Section 3, as amended) is amended to read:

     "47-8-3.  DEFINITIONS.--As used in the Uniform Owner-
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  1. 1  Resident Relations Act:
  2. 2  A. “abandonment” means absence of the resident from
  3. 3  the dwelling, without notice to the owner, in excess of seven
  4. 4  continuous days; providing such absence occurs only after rent
  5. 5  for the dwelling unit is delinquent;
  6. 6  B. “action” includes recoupment, counterclaim, set-
  7. 7  off, suit in equity and any other proceeding in which rights
  8. 8  are determined, including an action for possession;
  9. 9  C. “amenity” means a facility appurtenance or area
  10. 10  supplied by the owner and the absence of which would not
  11. 11  materially affect the health and safety of the resident or the
  12. 12  habitability of the dwelling unit;
  13. 13  D. “codes” includes building codes, housing codes,
  14. 14  health and safety codes, sanitation codes and any law,
  15. 15  ordinance or governmental regulation concerning fitness for
  16. 16  habitation or the construction, maintenance, operation,
  17. 17  occupancy or use of a dwelling unit;
  18. 18  E. “deposit” means an amount of currency or
  19. 19  instrument delivered to the owner by the resident as a pledge
  20. 20  to abide by terms and conditions of the rental agreement;
                    F.  "dwelling unit" means a structure, mobile home or
    the part of a structure, including a hotel or motel, that is
    used as a home, residence or sleeping place by one person who
    maintains a household or by two or more persons who maintain a
    common household and includes a parcel of land leased by its
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  1. 1  owner for use as a site for the parking of a mobile home;
  2. 2  G. “eviction” means any action initiated by the owner
  3. 3  to regain possession of a dwelling unit and use of the premises
  4. 4  [under] pursuant to the terms of the Uniform Owner-Resident
  5. 5  Relations Act;
  6. 6  H. “fair rental value” is that value that is
  7. 7  comparable to the value established in the [market place]
  8. 8  marketplace;
  9. 9  I. “good faith” means honesty in fact in the conduct
  10. 10  of the transaction concerned as evidenced by all surrounding
  11. 11  circumstances;
  12. 12  J. “normal wear and tear” means deterioration that
  13. 13  occurs based upon the use for which the rental unit is
  14. 14  intended, without negligence, carelessness, accident, abuse or
  15. 15  intentional damage of the premises, equipment or chattels of
  16. 16  the owner by the residents or by any other person in the
  17. 17  dwelling unit or on the premises with the resident’s consent;
  18. 18  however, uncleanliness does not constitute normal wear and
  19. 19  tear;
  20. 20  K. “organization” includes a corporation, government,
           governmental subdivision or agency thereof, business trust,
    estate, trust, partnership or association, two or more persons
    having a joint or common interest or any other legal or
    commercial entity;
                    L.  "owner" means one or more persons, jointly or
    .204493.4
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severally, in whom is vested:
(1) all or part of the legal title to property,
but shall not include the limited partner in an association
regulated [under] pursuant to the Uniform Revised Limited
Partnership Act; or
              (2)  all or part of the beneficial ownership and
a right to present use and enjoyment of the premises and agents
thereof and includes a mortgagee in possession and the lessors,
but shall not include a person or persons, jointly or
severally, who as owner leases the entire premises to a lessee
of vacant land for apartment use;
         M.  "person" includes an individual, corporation,
entity or organization;
         N.  "premises" means facilities, facilities and
appurtenances, areas and other facilities held out for use of
the resident or whose use is promised to the resident
coincidental with occupancy of a dwelling unit;
         O.  "rent" means payments in currency or in-kind
[under] pursuant to terms and conditions of the rental
agreement for use of a dwelling unit or premises, to be made to
the owner by the resident, but does not include deposits;
         P.  "rental agreement" means all agreements between an
owner and resident and valid rules and regulations adopted
[under] pursuant to Section 47-8-23 NMSA 1978 embodying the
terms and conditions concerning the use and occupancy of a
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  1. 1  dwelling unit or premises;
  2. 2  Q. “resident” means a person entitled [under]
  3. 3  pursuant to a rental agreement to occupy a dwelling unit in
  4. 4  peaceful possession to the exclusion of others and includes the
  5. 5  owner of a mobile home renting premises, other than a lot or
  6. 6  parcel in a mobile home park, for use as a site for the
  7. 7  location of the mobile home;
  8. 8  R. “roomer” means a person occupying a dwelling unit
  9. 9  that lacks a major bathroom or kitchen facility in a structure
  10. 10  where one or more major facilities are used in common by
  11. 11  occupants of the dwelling units. As referred to in this
  12. 12  subsection, “major facility”, in the case of a bathroom, means
  13. 13  toilet and either a bath or shower and, in the case of a
  14. 14  kitchen, means refrigerator, stove or sink;
  15. 15  S. “single family residence” means a structure
  16. 16  maintained and used as a single dwelling unit. Notwithstanding
  17. 17  that a dwelling unit shares one or more walls with another
  18. 18  dwelling unit, it is a single family residence if it has direct
  19. 19  access to a street or thoroughfare and shares neither heating
  20. 20  facilities, hot water equipment nor any other essential
           facility or service with any other dwelling unit;
    T. "substantial violation" means a violation of the
           rental agreement or rules and regulations by the resident or
    occurring with the resident's consent that occurs in the
    dwelling unit, on the premises or within three hundred feet of
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the premises and that excludes conduct that complies with the
provisions of the Cannabis Revenue and Freedom Act, but
includes the following conduct, which shall be the sole grounds
for a substantial violation:
              (1)  possession, use, sale, distribution or
manufacture of a controlled substance, excluding misdemeanor
possession and use;
              (2)  unlawful use of a deadly weapon;
              (3)  unlawful action causing serious physical
harm to another person;
              (4)  sexual assault or sexual molestation of
another person;
              (5)  entry into the dwelling unit or vehicle of
another person without that person's permission and with intent
to commit theft or assault;
              (6)  theft or attempted theft of the property of
another person by use or threatened use of force; or
              (7)  intentional or reckless damage to property
in excess of one thousand dollars ($1,000);
         U.  "term" is the period of occupancy specified in the
rental agreement; and
         V.  "transient occupancy" means occupancy of a
dwelling unit for which rent is paid on less than a weekly
basis or where the resident has not manifested an intent to
make the dwelling unit a residence or household."
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SECTION 80. EFFECTIVE DATE.–The effective date of the provisions of this act is July 1, 2017.
– 135 –
.204493.4

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