SENATE BILL 235

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO MEDICAL CANNABIS; REQUIRING THE DEPARTMENT OF PUBLIC SAFETY TO CONTRACT WITH A PROVIDER TO PROCESS MEDICAL-CANNABIS-RELATED FINANCIAL TRANSACTIONS; RESTRICTING THE USE OF CASH IN FINANCIAL TRANSACTIONS RELATED TO MEDICAL CANNABIS; REQUIRING RULEMAKING.

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

     SECTION 1. Section 26-2B-1 NMSA 1978 (being Laws 2007, Chapter 210, Section 1) is amended to read:

     "26-2B-1. SHORT TITLE.--[Sections 1 through 7 of this 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 2. A new section of the Lynn and Erin Compassionate Use Act is enacted to read:

     "[NEW MATERIAL] MEDICAL-CANNABIS-RELATED FINANCIAL TRANSACTIONS--REQUIREMENTS--RESTRICTIONS.--

          A. The legislature finds that the use of cash transactions in connection with medical cannabis is detrimental to public safety.

          B. Before September 1, 2016, the department of public safety shall contract with a financial processing provider to process medical-cannabis-related financial transactions. The financial processing provider shall be:

                (1) capable of receiving money from and making payments to licensed producers, primary caregivers, qualified patients and the state;

                (2) at least a level one payment card industry data security standard-validated provider;

                (3) certified by Europay, MasterCard and Visa;

                (4) capable of integrating with at least fifty payment processors; and

                (5) able to demonstrate that the provider has made more than twenty million transactions each month during the twenty-four months before the provider contracts with the department of public safety.

          C. After the department of public safety has contracted with a financial processing provider and identified a date on which the provider will begin processing payments related to medical cannabis, the department of public safety and the department of health shall notify licensed producers, primary caregivers and qualified patients that all financial transactions related to medical cannabis shall be made through the provider and shall not be made using cash.

          D. The department of public safety shall promulgate rules to provide for financial transactions related to medical cannabis to be made using cash or another method if the provider that contracted with the department of public safety is temporarily unable to process those transactions due to an unforeseen circumstance."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2016.

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