HOUSE BILL 62

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Ray Begaye

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; PROVIDING FOR LICENSING THE GROWING, SELLING AND PROCESSING OF SANTHICA; ESTABLISHING FEES AND REVENUES; PROVIDING FOR ADMINISTRATIVE MONITORING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. RULES TO ENCOURAGE GROWTH AND SALES OF SANTHICA--REGISTRATION--LICENSE--FEES.--

          A. New Mexico state university shall:

                (1) provide for registration of Santhica plants and seeds and act as a monitoring and marketing agency for growers of Santhica and of other hemp varieties that are THC-free; and

                (2) determine rules to encourage growth and sales of industrial Santhica and ensure the participation by and inclusion of individual farmers, agricultural cooperatives and businesses in the rulemaking process.

          B. A person or business planning to grow and sell Santhica seed or Santhica fiber shall obtain a grower's license by submitting an application to New Mexico state university containing the following:

                (1) the name and address of the applicant;

                (2) the location and legal description of the land to be used for the production of Santhica and the name and address of the person holding title to the land on which the Santhica will be planted;

                (3) authorization of field inspections;

                (4) authorization of certification at the time of sale; and

                (5) a nonrefundable application and renewal fee established by New Mexico state university.

          C. A grower shall maintain records showing:

                (1) the origin of the seed purchased and planted;

                (2) the quantity of the seed purchased and planted;

                (3) the amount of industrial Santhica harvested and sold; and

                (4) buyers and recipients of the industrial Santhica plants, fiber and seed.

          D. New Mexico state university shall help to ensure availability of seed. The department shall:

                (1) maintain an authorized list of certified seed sources for Santhica;

                (2) certify Santhica seed obtained from other sources;

                (3) maintain a list of growers and processors for whom seed has been provided; and

                (4) maintain a list of growers and processors.

          E. New Mexico state university may enter into joint powers agreements with an Indian nation, tribe or pueblo to share information, to provide technical assistance and to generally cooperate with the Indian nation, tribe or pueblo to facilitate the production of Santhica.

          F. New Mexico state university may revoke or suspend the license of a grower if there is substantial evidence of violations of the provisions of or rules adopted pursuant to this 2012 act.

           G. Fees collected pursuant to this section are appropriated to New Mexico state university to carry out the provisions of this 2012 act, including funding assistance to Indian tribes, nations and pueblos in New Mexico.

          H. The board of regents of New Mexico state university may authorize the New Mexico department of agriculture to charge reasonable fees not to exceed the actual costs of performing services, including inspections, monitoring, marketing, maintaining and certifying Santhica seed.

          I. The New Mexico department of agriculture shall publish a fee schedule for all fees due to the department pursuant to this 2012 act.

          J. As used in this section, "Santhica" means industrial hemp fiber produced from the stalks, oil or cake made from the seeds of the plant cannabis and any compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake, or the sterilized seed of the plant that is incapable of germination. It does not include other parts of the plant cannabis or its varieties, species and subspecies of the genus Cannabis, whether growing or not, the germinable seeds thereof and any other compounds, manufacture, salt, derivative, mixture or preparation of the plant or its seeds.

     SECTION 2. DEPARTMENT OF PUBLIC SAFETY--DUTIES AND POWERS.--The department of public safety:

          A. shall inspect growing fields and processing facilities upon verifiable evidence that a designated Santhica field is unlicensed or is in violation of this 2012 act;

          B. shall conduct background checks on applicants

requesting licenses upon request by the New Mexico department

of agriculture; and

          C. may enter into joint powers agreements with an Indian nation, tribe or pueblo to share information, to provide technical assistance and to generally cooperate with the Indian nation, tribe or pueblo to facilitate the production of industrial Santhica on tribal land.

     SECTION 3. COOPERATION BETWEEN AGENCIES.--New Mexico state university, the New Mexico department of agriculture and the department of public safety shall cooperate to implement and enforce the provisions of this 2012 act.

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

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