SB 274 CANNABIS COMPLIANCE BUREAU

Sen Katy Duhigg

Actions: [6] SCC/SJC/SFC-SCC-germane-SJC

Scheduled: Not Scheduled

 Senate Bill 274 (SB 274):  This proposed legislative act is focused on establishing a Compliance Bureau within the Office of the Superintendent of Regulation and Licensing in the State of New Mexico, specifically for the enforcement of the Cannabis Regulation Act.  

 Senate Bill 274 (SB 274):  Section 1: Creation of the Compliance Bureau
•	A Compliance Bureau is established in the office of the superintendent.
•	Compliance inspectors, who are certified law enforcement officers, will be employed to investigate and enforce laws and rules related to cannabis control.
•	Compliance inspectors have the same powers as other law enforcement officers, including the ability to conduct warrantless searches and seizures, and make arrests for illegal cannabis trafficking.
•	The compliance bureau is tasked with investigating alleged or suspected violations of the Cannabis Regulation Act, either as directed by the cannabis control division or on its own initiative.
•	The superintendent may require compliance inspectors to undergo specific training related to law enforcement in the context of cannabis regulation and enforcement.

Section 2: Enforcement Powers and Procedures
•	Both announced and unannounced inspections may be carried out by the division or the compliance bureau.
•	The division can respond to tips or initiate investigations into alleged violations, issuing administrative holds on cannabis products suspected of being adulterated or dangerously misbranded.
•	The compliance bureau has the authority to embargo or seize cannabis products, and may petition the district court for injunctive or other equitable relief.
•	The division may issue recall orders for cannabis products that have been embargoed for specific reasons.
•	Procedures for giving notice, holding administrative hearings, and appealing decisions are outlined.
•	The division and compliance bureau are not responsible for caring for embargoed or seized cannabis products.
•	Relevant state agencies, such as the New Mexico Department of Agriculture and the Department of Environment, are expected to cooperate with the division and compliance bureau at their request.
•	Intentional, knowing, or reckless removal or disposal of embargoed or seized cannabis products is a fourth-degree felony.
•	The division has the authority to take disciplinary actions against licensees after an administrative hearing, including suspension or revocation of the license, imposition of administrative penalties, or other disciplinary actions allowed under the Uniform Licensing Act.

Section 3: Appropriation
•	An appropriation of $325,000 from the general fund is allocated to the Regulation and Licensing Department for the fiscal year 2025 to establish the Compliance Bureau. 
•	This appropriation covers expenses such as staff salaries, office space, furnishings, equipment, and supplies.

Any unexpended or unencumbered balance at the end of fiscal year 2025 reverts to the general fund.