b'2020 Post WPMAEXPO New Mexico NotesNM paid for cannabis. That tax does not apply to retail sales of Thanks to the oil and natural gas industry,New Mexico is going into the 2020 30-day Legislative medical cannabis pursuant to the Lynn and Erin Compas-Session with about a one billion dollar surplus. The 30-daysionate Use Act (LECUA). It also allows for the adoption of session is when the Legislature determines a state budget forordinances by both municipalities and counties of an excise FY 2021, but they have managed to introduce 726 bills rang- tax on cannabis of no more than four percent, which may ing from Agriculture to Water Rights. This years budget,be imposed in any number of one-sixteenth percent incre-7.61 billion dollars passed the House on a straight party linements applied to the price of cannabis product; as drafted, vote and is now in Senate Finance, which I am sure, will notthe provisions governing these local body excise taxes do not look anything like what was sent over by the House. Otherappear to exempt medical cannabis.bills that affect our industry include: Revenue from the excise tax is distributed as follows:House Bill 173 creates a new gasoline and special fuel Six percent to the cannabis industry equitable opportunitysurtax of 10 cent per gallon starting in FY21. The surtax is toinvestment fund, a new fund administered by EDD created increase by 5 cents per gallon on July 1st of each followingtoprovidefinancialassistancetostartingandexistingCan-year until July 1, 2026 when the Taxation and Revenue nabis industry businesses owned by members of commu-Department (TRD) will calculate the rate of the gasoline nities disproportionally affected by past federal and state surtax using a formula based on the consumer price index.drug policies;The surtaxes are in addition to the existing gasoline andTwenty percent to the low-income medical patient subsidy special fuel taxes. The bill provides for distribution of thefund, a new fund administered by DOH to support resident surtaxes to the state road fund, a new clean infrastructurequalifiedpatientsunderLECUAwhoaresickandindigentorfund and a new gasoline and special fuel excise surtax low- higher use patients who need assistance in obtaining medical income rebate fund. cannabis;The bill also enacts the gasoline and special fuel exciseThirty-fivepercenttothecommunitygrantsreinvestmentsurtax low-income rebate, which is based on the taxpayersmodifiedgrossincomeandtheamountitisoverthefederal fund, a new fund administered by DOH for the purpose of property guidelines. The bill also creates a new clean infra- a) drug education, including promoting cannabis abstinence structure fund in the state treasury, to be administered byfor persons under 21; b) reinvesting in communities dispro-the Department of Transportation (DOT) in accordance withportionately affected by past federal and state drug polices, a clean infrastructure plan seeking to reduce air pollution,including supporting job placement, mental health treat-which DOT is tasked to create by December 31, 2020 andment, and substance use disorder treatment; and c) fund-update every three years thereafter. Money in the new funding research on substance use and abuse and other related would include appropriation, gifts, grants, donations, incomeprograms, including funding housing for those using or in from investment of the fund, and other sources. This bill wastreatment for substance abuse. SB 115 was tabled in the tabled in the Appropriations Committee. Senate Judiciary Committee.SB115 - Synopsis of Bill: Senate Bill 115 enacts the Canna- SB 131 - Synopsis of Bill: Senate Bill 131 creates the To-bis Regulation Act (CRA), a comprehensive plan for regula- bacco Products Act and places licensing activities within the tion and licensing of commercial cannabis production andAlcoholic Beverage Control Division (ABC) of the Regula-distribution, and sale and consumption (of up to two ouncestion and Licensing Department.offlowersor16gramsofextract)bypersonsage21or TheActincorporatesalltobaccoproductsanddefinestobac-older. It creates a new Cannabis Control Division (CCD) inco products as any product made from tobacco or nicotine, RLD, which is charged with promulgating rules and policiesintended for human consumption, including cigars, ciga-related to licensing and regulating the activities authorizedrettes, chewing tobacco, pipe tobacco, snuff, e-cigarettes, by the Act. Unrestricted commercial sales begin Januaryand electronic nicotine delivery systems. The Act excludes 1, 2022, but existing medical cannabis licenses can beginproducts regulated as a drug or device by the U.S. Food and selling to other non-medical consumers beginning January 1,Drug Administration.2021, subject to a DOH determination of adequate supply forSpecifically,thebill: the medical cannabis program.Creates and requires licensure for the following tobacco SB 115 also enacts the Cannabis Tax Act, which imposesproduct related activities: manufacture, distribution, and a cannabis excise tax of nine percent applied to the priceretailsales.Suchregulationtoinclude:qualificationsof44 www.wpma.com / Spring 2020'