Revision: Dec. 27, 2022, 12:24 p.m.
2023 SESSION
23-0528.1
04/10
HOUSE BILL [bill number]
AN ACT relative to the legalization and regulation of cannabis and making appropriations therefor.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill establishes procedures for the legalization, regulation, and taxation of cannabis; the licensing and regulation of cannabis establishments; and makes appropriations therefor.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0528.1
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to the legalization and regulation of cannabis and making appropriations therefor.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose and Findings. The general court hereby finds that:
I. In the interest of allowing law enforcement to focus on violent and property crimes, generating revenue for education, prevention, treatment, and recovery related to the use of both legal and illegal drugs and for other public purposes, and advancing individual freedom, the people of the state of New Hampshire find and declare that the use of cannabis by a person 21 years of age or older should be legal and subject to reasonable regulation and taxation.
II. In the interest of the health and public safety of our citizenry, the people of the state of New Hampshire further find and declare that cannabis should be regulated in a manner similar to alcohol so that:
(a) Individuals will have to show proof of age before purchasing cannabis.
(b) Selling, distributing, or transferring cannabis to minors and other individuals under the age of 21 shall remain illegal.
(c) Driving under the influence of cannabis shall remain illegal.
(d) Moving cannabis production and sales from the underground, sometimes dangerous, illicit market to legal, taxpaying businesses allows for appropriate regulations and control.
(e) Cannabis sold in this state will be tested, labeled, and subject to additional regulations to ensure that consumers are informed and protected and to protect the environment.
(f) Some of the tax revenue generated from legal cannabis sales will be used to support programs for education, prevention, treatment, and recovery related to the use of both legal and illegal drugs.
2 New Subparagraphs; Application of Receipts; Cannabis Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (387) the following new subparagraphs:
(388) Moneys deposited in the cannabis fund established in RSA 318-F:24.
(389) Moneys in the substance abuse prevention and recovery fund established by RSA 318-F:25.
3 New Subdivision; Substance Abuse Prevention and Recovery Funds. Amend RSA 126-A by inserting after section 97 the following new subdivision:
Substance Abuse Prevention and Recovery Funds
126-A:98 Substance Abuse Prevention and Recovery Funds; Management and Distribution of Funds.
I. The commissioner of the department of health and human services, shall administer the substance abuse prevention and recovery fund established in RSA 318-F:25.
II. Funds shall be deposited into the substance abuse prevention and recovery fund as established by 318-F:25 to be distributed by the commissioner of the department of health and human services. Funds may be awarded to a qualifying governmental entity or program for an approved use. All funds shall be nonlapsing and continually appropriated for the purposes of this section.
III. The commissioner of the department of health and human services shall continue to make distributions from the trust fund.
IV. The department of health and human services shall adopt rules pursuant to RSA 541-A necessary to implement this section. Such rules shall include funding qualifications, application procedures, time-lines for receiving, reviewing, and acting upon application requests, and reporting requirements.
V. Allocations shall be used for one or more of the following:
(a) Evidence-based, voluntary programs for substance abuse-related education, prevention, treatment, and recovery.
(b) Mental health treatment, with a focus on dual-diagnosis of both mental health and substance misuse disorders.
(c) Funding and training to foster an informed, adequately paid behavioral health workforce.
(d) Scientifically and medically accurate public education campaigns educating youth and adults about the health and safety risks of alcohol, tobacco, cannabis, and other substances, including education campaigns separately targeting youth and adults that provide medically and scientifically accurate information about the health and safety risks posed by cannabis use, including driving under the influence of cannabis.
VI. No later than 18 months after the effective date of this section, and every 2 years thereafter, the commissioner of the department of health and human services shall submit an annual report to the governor and fiscal committee of the general court detailing the activities of the administration of the substance abuse prevention and recovery trust fund, the amount distributed in the past year, the amount remaining in the trust fund, a summary of how funds were used in the past year, and any recommendations for future legislation.
4 Alcoholic Beverages; Statement From Purchaser as to Age. Amend RSA 179:8, I(d) to read as follows:
(d) A valid passport [from] issued by the United States or by a country with whom the United States maintains diplomatic relations.
5 Controlled Drug Act; Drug Forfeiture Fund. Amend RSA 318-B:17-c, I to read as follows:
I. There is hereby established [within the office of the state treasurer] a special revolving fund to be designated as the drug forfeiture fund. This fund shall be administered by the attorney general and may be used to pay the costs of local, county and state drug related investigations, costs of collection of baseline data related to marijuana regulation, as well as drug control law enforcement programs within New Hampshire. The fund may also be used to pay extraordinary costs of local, county and state drug prosecutions and trial expenses.
6 Model Drug Dealer Liability Act; Definition of Illegal Drug. Amend RSA 318-C:4, I to read as follows:
I. "Illegal drug" means any drug which is a schedule I-IV drug under RSA 318-B, the possession, use, manufacture, sale, or transportation of which is not otherwise authorized by law.
7 New Chapter; Regulation of Cannabis. Amend RSA by inserting after chapter 318-E the following new chapter:
CHAPTER 318-F
REGULATION OF CANNABIS
318-F:1 Definitions. In this chapter:
I. “Alternative treatment center” means an entity as defined in RSA 126-X:1, I.
II. "Cannabis" means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including cannabis concentrate. "Cannabis" shall not include hemp, fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant that is incapable of germination, or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product.
III. "Cannabis accessories" or “cannabis paraphernalia” means any equipment, products, or materials of any kind that are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis into the human body.
IV. "Cannabis cultivation facility" or “cultivation facility” means an entity registered to cultivate, prepare, and package cannabis, and sell cannabis to retail cannabis stores, to cannabis product manufacturing facilities, to alternative treatment centers, and to other cannabis cultivation facilities, but not to consumers. A cannabis cultivation facility shall not produce cannabis concentrates, tinctures, extracts, or other cannabis products.
V. "Cannabis establishment" means a cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, a retail cannabis store, a cannabis transporter, or any other type of cannabis business authorized and registered by the commission.
VI. "Cannabis product manufacturing facility" or “product manufacturing facility" means an entity registered to purchase cannabis, to manufacture, prepare, and package cannabis products, and sell cannabis and cannabis products to other cannabis product manufacturing facilities, to alternative treatment centers, and to retail cannabis stores, but not to consumers.
VII. "Cannabis products" means concentrated cannabis products and cannabis products that are comprised of cannabis and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.
VIII. "Cannabis testing facility" or “testing facility” means an entity registered to test cannabis for potency and contaminants.
IX. “Cannabis transporter” means an entity registered to transport cannabis between cannabis establishments.
X. "Commission" means the cannabis commission established in RSA 318-F:8.
XI. "Consumer" means a person 21 years of age or older who purchases cannabis or cannabis products for personal use by a person 21 years of age or older, but not for resale. "Consumer" does not include a qualifying patient or designated caregiver purchasing cannabis from an alternative treatment center pursuant to RSA 126-X.
XII. "Department" means the department of health and human services.
XII-a. "Documentation" means all records, in any form, including electronic records.
XIII. "Dual use certificate" means a license allowing an alternative treatment center registered to operate pursuant to RSA 126-X to co-locate with and operate a retail cannabis store, cannabis cultivation facility, cannabis product manufacturing facility, cannabis transporter, or any combination of those licenses. A dual use certificate is required in addition to registration as an alternative treatment center and the registration required pursuant to this chapter for each type of cannabis establishment operated by the alternative treatment center.
XIV. “Immature cannabis plant” means a cannabis plant that has not flowered and that does not have buds that may be observed by visual examination.
XV. “Inflation” means the 12-month percentage change in the consumer price index for all urban consumers, northeast region as published by the Bureau of Labor Statistics, United States Department of Labor.
XVI. “Mature cannabis plant” means a cannabis plant that has flowered and has buds that may be observed by visual examination.
XVII. “Municipality" means a city, town, or an unincorporated place.
XVIII. “Possession limit” means:
(a) Four ounces of cannabis in plant form;
(b) Twenty grams of concentrated cannabis, which includes hashish and pre-filled cartridges of cannabis extracts intended for vaporization;
(c) Cannabis products other than concentrated cannabis containing no more than 2,000 milligrams of THC;
(d) Six cannabis plants, no more than 3 of which may be mature; and provided that no more than 12 plants, and no more than 6 mature plants, may be cultivated at any single dwelling unit or other secure facility regardless of the number of adults over the age of 21; and
(e) Any additional cannabis produced by the person’s cannabis plants, provided that any amount of cannabis in excess of four ounces of cannabis, 10 grams of concentrated cannabis, and cannabis products containing no more than 2,000 milligrams of THC shall be possessed in the same secure facility where the plants were cultivated.
This paragraph shall not apply to the possession limits set forth in RSA 126-X:2.
XIX. "Public place" means any place to which the general public has access.
XX. "Retail cannabis store" or “retail store” means an entity registered to purchase cannabis from cannabis cultivation facilities, to purchase cannabis and cannabis products from cannabis product manufacturing facilities, and to sell, transfer, and deliver cannabis and cannabis products to consumers.
XXI. "Resident" means a natural person who:
(a) Is domiciled in New Hampshire; and
(b) Maintains a place of abode in New Hampshire, unless the individual was homeless and residing in New Hampshire for at least 51 percent of the time.
318-F:2 Personal Use of Cannabis.
I. Except as otherwise provided in this chapter, the following acts, if undertaken by a person 21 years of age or older, shall not be illegal under New Hampshire law or the law of any political subdivision of the state or be a basis for seizure or forfeiture of assets under New Hampshire law:
(a) Possessing, consuming, using, displaying, growing, obtaining, purchasing, processing, producing, or transporting an amount of cannabis that does not exceed the possession limit, except that no adult other than one who is acting in his or her capacity as a staffer of a cannabis product manufacturer may perform extractions using solvents other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol.
(b) Transporting no more than 6 cannabis plants, including no more than 3 mature plants.
(c) Transferring an amount of cannabis that does not exceed the possession limit to a person who is 21 years of age or older without remuneration. For purposes of this section, a transfer is for remuneration if cannabis is given away contemporaneously with another transaction between the same parties, if a gift of cannabis is offered or advertised in conjunction with an offer for sale of goods, services, or admission to an event, or if the gift of cannabis is contingent upon a separate transaction for goods, services, or the price of admission to an event.
(d) Transferring or selling cannabis seeds or up to 6 immature cannabis plants or seedlings to cannabis cultivation facilities.
(e) Transferring cannabis, including cannabis products, to a cannabis testing facility.
(f) Controlling property where the acts described under this section occur.
(g) Assisting another person who is 21 years of age or older in any of the acts described under this section.
II. No law enforcement officer employed by an agency that receives state or local government funds shall expend any state or local resources, including the officer’s time, to effect any arrest or seizure of cannabis, or conduct any investigation, on the sole basis of activity the officer believes to constitute a violation of federal law if the officer has reason to believe that such activity is in compliance with this chapter, nor shall any such officer expend any state or local resources, including the officer’s time, to provide any information or logistical support related to such activity to any federal law enforcement authority or prosecuting entity.
318-F:3 Restrictions on Personal Cultivation; Penalty.
I. Except as allowed under RSA 126-X, no person who is 21 years of age or older shall cultivate cannabis plants except as provided in this section.
II. Cannabis plants shall not be cultivated in a location where the plants are subject to view from public property or from another person’s private property without the use of binoculars, aircraft, or other optical aids.
III. A person who cultivates cannabis shall take reasonable precautions to ensure the plants are secure from access by a person under 21 years of age. Cultivating cannabis in an enclosed, locked space to which unauthorized persons do not have access, or other similar security precautions, shall be prima facie evidence of reasonable precautions.
IV. Cannabis cultivation shall only occur on property the cultivator legally owns, leases, or controls, or with the consent of the person who legally owns, leases, or controls the property.
V. Any person who violates this section shall be guilty of a violation and may be fined not more than $500 for a first offense and not more than $1,000 for a second or subsequent offense.
318-F:4 Smoking Cannabis in Public Prohibited; Penalty. No person shall smoke cannabis in a public place. Any person who violates this section shall be guilty of a violation and may be fined not more than $50.
318-F:5 Consuming Cannabis While Operating a Moving Vehicle Prohibited; Penalty.
I. No person shall consume, smoke, or vaporize cannabis while driving or attempting to drive a motor vehicle on a way, or while operating or attempting to operate an off-highway recreational vehicle, snowmobile, boat, vessel, aircraft, or other motorized device used for transportation.
II. No person shall smoke or vaporize cannabis while the person is a passenger in a motor vehicle that is being driven on a way.
III. Any person who violates this section shall be guilty of a violation and shall be subject to a fine not to exceed $150. In addition, any person who violates paragraph I of this section may have his or her driver's license, if a resident, or driving privilege, if a nonresident, suspended for up to 60 days for a first offense and up to one year for a subsequent offense.
IV. In this section, “way” shall have the same meaning as in RSA 265-A:44.
V. A person may not be convicted of both a violation of this section and a violation of RSA 265-A:1 based on the same incident.
318-F:6 Cannabis Accessories Authorized.
I. Except as provided by this section, it shall not be illegal under New Hampshire law or be a basis for seizure or forfeiture of assets under New Hampshire law for a person 21 years of age or older to manufacture, possess, or purchase cannabis accessories, or to distribute or sell cannabis accessories to a person who is 21 years of age or older.
II. Except as provided by this section, a person who is 21 years of age or older, or a business entity, may manufacture, possess, obtain, and purchase cannabis paraphernalia, and may distribute, deliver, or sell cannabis paraphernalia to a person who is 21 years of age or older.
III. No person or entity shall manufacture, distribute, or sell cannabis accessories that violate reasonable regulations enacted by the cannabis commission. Any person or entity that violates this paragraph shall be guilty of a violation for a first offense and subject to a fine of up to $1,000 and forfeiture of the cannabis accessories. A person shall be guilty of a class A misdemeanor for a second or subsequent offense and shall forfeit the cannabis accessories.
318-F:7 Odor and Personal Possession of Cannabis Not Grounds for a Search.
I. Except as provided in paragraph II of this section, the odor of cannabis or burnt cannabis, or the possession of a quantity of cannabis that the officer does not have probable cause to believe exceeds the possession limit of cannabis, shall not constitute in part or in whole probable cause or reasonable suspicion and shall not be used as a basis to support any stop or search of a person or motor vehicle.
II. Nothing in this section prevents a law enforcement official from conducting a test for impairment based in part on the odor of recently burnt cannabis if the law enforcement official would otherwise be permitted to do so under New Hampshire law.
318-F:8 Cannabis Commission.
I. There is hereby established a cannabis commission, which shall have regulatory and licensing authority over cannabis establishments. The commission shall consist of the chairperson of the commission, 2 commissioners, and staff.
II. No later than 30 days after the effective date of this chapter, the governor shall nominate the chairperson of the commission and the commissioners, who shall be confirmed with the advice and consent of the executive council following a public hearing before the executive council. Vacancies shall be filled in like manner for the unexpired term.
(a) The chairperson of the commission shall serve a term of 6 years.
(b) Commissioners shall each serve a term of 4 years.
(c) The chairperson of the commission and commissioners shall be appointed based on their ability and commitment to fully implement the provisions of this chapter.
(1) The chairperson must have demonstrated expertise in overseeing a regulated industry.
(2) At least one commissioner or the chairperson shall have a background in public health.
(3) At least one commissioner or the chairperson shall have a background in cannabis regulation or in the production and distribution of cannabis.
(4) The governor shall seek to ensure at least one commissioner or the chairperson also has a background in financing small and minority-owned businesses.
(5) The governor shall seek to ensure at least one commissioner or the chairperson also has a background in civil rights or social justice.
(6) No person shall be appointed chairperson of the commission or a commissioner if the person is opposed to making cannabis legal and regulated for adults 21 and older at the time of the passage of this chapter.
(d) The chairperson shall be a full-time unclassified employee and shall engage in no other gainful employment during his or her term.
(e) The annual salary of the commission chairperson shall be as specified in RSA 94:1-a and shall be established by the joint committee on employee classification pursuant to the procedure set forth in RSA 14:14-c and RSA 94:1-d. The chairperson shall receive his or her reasonable expenses while traveling in the performance of his or her duties, provided that the chairperson shall not be allowed as expenses travel between his or her place of residence and the commission chairperson’s office in Concord, nor shall the commission chairperson be allowed board or lodging while in Concord.
(f) Except as provided in this section, each commissioner shall be paid $300 a day, or $150 per half-day, plus mileage at the state employee rate while engaged in his or her official duties. These rates shall be adjusted annually to account for inflation or deflation based on the consumer price index.
III.(a) The chairperson of the commission shall be appointed and commissioned as such and shall be the administrative head of the commission.
(b) The commission shall meet at least once per month for the 12 months after the effective date of this section and at least once every 3 months thereafter.
(c) The chairperson of the commission shall lead the administration of the commission and oversee the licensing and regulation of cannabis, with guidance from the commissioners.
(d) The commission may hire and terminate such staff necessary to carry out the purpose of the commission and to fix their compensation, subject to the rules of the director of personnel. The commission may authorize expenditures that are reasonably necessary for the administration of this chapter and may secure any necessary technical or professional assistance.
IV.(a) The commission may, subject to rules adopted by the director of personnel, employ and dismiss cannabis control investigators. Cannabis control investigators shall, under the direction of the commission, investigate any or all matters arising under this chapter.
(b) Any cannabis control investigator employed by the commission shall, within 6 months of employment, satisfactorily complete a police training program as provided by RSA 106-L:6, unless he or she has already completed such a program.
(c) The chairperson of the commission, commissioner, staff, or cannabis control investigator may enter any cannabis establishment, at any time, and may examine any registration issued or purported to have been issued under the terms of this chapter.
V. The chairperson of the commission and commissioners shall not have any interest, directly or indirectly, in any business under the jurisdiction of the commission or any other cannabis business.
VI. The governor and council may remove a chairperson of the commission or a commissioner for neglect of duty, misconduct, or malfeasance in office, after providing the individual with a written statement of the charges and an opportunity to be heard.
VII. No member of the commission shall render any professional service for any cannabis establishment in this state, or any affiliate thereof, or act as attorney or render professional service against any such cannabis establishment or affiliate; nor shall he or she be a member of a firm which renders any such service; nor shall he or she directly or indirectly be a party to any contract with any such cannabis establishment. This prohibition shall remain in force for 12 months following membership on the commission.
VIII. In addition to any other type of behavior or activity of a chairperson of the commission or commissioner that is proscribed by law, a chairperson of the commission or commissioner shall conduct himself or herself in accordance with a code of ethics that shall include, but not be limited to, the following elements:
(a) Avoidance of impropriety and the appearance of impropriety in all of his or her activities;
(b) Performance of his or her duties impartially and diligently;
(c) Avoidance of all ex parte communications concerning a case pending before the commission;
(d) Abstention from public comment about a matter pending before the commission and require similar abstention on the part of commission personnel;
(e) Require staff and personnel, subject to commission direction, to observe the standards of fidelity and diligence that apply to the chairperson of the commission and commissioners;
(f) Initiate appropriate disciplinary measures against commission personnel for unprofessional conduct;
(g) Disqualify himself or herself from proceedings in which his or her impartiality might be reasonably questioned;
(h) Inform himself or herself about personal and fiduciary interests and make a reasonable effort to inform himself or herself about the personal financial interests of his or her spouse and minor children;
(i) Regulate his or her extracurricular activities to minimize the risk of conflict with his or her official duties;
(j) Refrain from solicitation of funds for any political purpose, nor shall they be listed as an officer, director, or trustee of such organizations; and
(k) Refrain from financial or business dealings that would tend to reflect adversely on his or her impartiality.
IX. The chairperson of the commission or a commissioner may speak, write, or lecture concerning the regulatory process in New Hampshire but shall be reimbursed only for actual expenses incurred therein.
X. No chairperson of the commission or commissioner shall accept any employment with any cannabis establishment regulated by the commission until one year after he or she shall become separated from the commission.
XI. The commission shall be provided with suitable offices in the city of Concord and shall adopt a proper seal.
XII. The commission shall be provided with an office in which its records, documents, and books shall be kept, and with a suitable room in which it may hold hearings.
XIII. The commission may confer and cooperate with any other state or local agency in any matter relating to its duties.
318-F:9 Cannabis Advisory Board.
I. There shall be a cannabis advisory board to study and make recommendations consistent with the purpose and findings of this chapter on the regulation of cannabis and cannabis products in New Hampshire.
II. No later than 90 days after the effective date of this chapter, the governor shall nominate members of the advisory board, who shall be confirmed with the advice and consent of the executive council. The board shall consist of 13 members, and shall consist of: one expert in cannabis cultivation, one expert in cannabis retailing, one expert in cannabis product manufacturing, one expert in cannabis testing, one board member or officer of an alternative treatment center, one registered medical cannabis patient, one individual who represents cannabis consumers, 2 experts in public health, one expert in law enforcement, one expert in social welfare or criminal justice, one expert in financing small cannabis businesses; and one attorney with experience providing legal services to cannabis businesses, cannabis consumers or medical cannabis patients. No more than one advisory board member may work for or hold a financial or equitable interest in a business that sells, grows, or manufactures cannabis in a jurisdiction outside of New Hampshire.
III. Members of the board shall serve terms of 2 years. Members of the board shall serve without compensation but shall be reimbursed for their expenses actually and necessarily incurred in the discharge of their official duties, including mileage at the state employee rate for attendance to meetings and other official functions.
IV. The board shall meet at the discretion of the commission, but shall meet no less frequently than once every 2 months for the first 9 months after the effective date of this section.
V. A majority of the members of the board present and voting shall constitute a quorum.
VI. The cannabis advisory board shall:
(a) Advise the commission on regulations to ensure the thorough and efficient implementation of this chapter.
(b) Advise the commission on what additional types of cannabis establishments, if any, the commission should register, including on-site consumption facilities, along with recommendations on their licensure and regulation.
(c) Consider all matters submitted to it by the commission.
(d) Hold a hearing to solicit public input no less frequently than once every 6 months, including input on the availability of reasonably priced therapeutic cannabis at alternative treatment centers with dual use certificates.
(e) Advise the commission spending and recommend any modifications to ensure the thorough and efficient implementation of this chapter.
(f) Make recommendations for changes to the law and regulations, including:
(1) Changes that are necessary or advisable once federal law allows interstate cannabis sales;
(2) Whether the personal possession, cultivation, and purchase limits should be modified or eliminated; and
(3) Whether to alter or abolish the commission.
318-F:10 Regulation of Cannabis.
I. Not later than one year after the effective date of this section, the commission shall adopt rules, pursuant to RSA 541-A, for the registration and regulation of cannabis cultivation facilities and for the issuance of dual use certificates. Not later than 15 months after the effective date of this section, the commission shall adopt rules, pursuant to RSA 541-A, for the registration and regulation of all other cannabis establishments and on the manufacture and sale of cannabis accessories. The rules shall include the following:
(a) Procedures for the issuance, transfer, denial, renewal, suspension, and revocation of a registration for cannabis establishments, including procedures to hear complaints and impose penalties if alternative treatment centers with dual use certificates fail to provide an adequate supply and variety of therapeutic cannabis and cannabis products for qualifying patients.
(b) A schedule of reasonable application, registration, and annual renewals, provided:
(1) That the non-refundable portion of application fees shall not exceed $1,000, with this upper limit adjusted annually for inflation;
(2) The application, registration, and annual renewal fees for the smallest tier of cultivation facilities may not exceed $250;
(3) All other registration and annual renewal fees shall not exceed $10,000; and
(4) That cultivation facility licensing fees be tiered based on the size of the facilities, with a maximum fee of $7,500 for all but the largest tier of cultivation facilities.
(c) Qualifications for registration that are directly and demonstrably related to the operation of a cannabis establishment and which may not disqualify applicants solely for cannabis offenses prior to the effective date of this chapter.
(d) Regulations to create at least 3 tiers of cultivation facilities, based on the size of the facility or the number of plants cultivated and providing:
(1) That outdoor cultivation facilities shall be allowed to cultivate 3 times the square footage of canopy as indoor cultivation facilities of the same tier;
(2) That security regulations and licensing fees shall vary based on the size of the cultivation facility and that regulatory burdens shall be no more onerous than is reasonably necessary; and
(3) That cultivation facilities may move up to a higher tier at least once per year if they meet the security requirements and pay the associated fee, except that the commission may suspend this provision in the event of an oversupply.
(e) Record keeping requirements for cannabis establishments, including requirements for implementation and compliance with the tracking system required by RSA 318-F:10, IV.
(f) Requirements for the transportation of cannabis between cannabis establishments, including documentation that shall accompany any cannabis being transported by cannabis cultivation facilities.
(g) Procedures for the delivery of cannabis to consumers, including documentation that shall accompany any cannabis being transported to consumers.
(h) A schedule of civil fines as are authorized in this chapter for violations of chapter requirements, provided that, not later than 18 months after the effective date of this chapter the commission shall report to the chairpersons of the house and senate ways and means committees its proposal for a fine schedule and for legislation needed to implement the schedule.
(i) Procedures for hearings on civil fines and suspensions and revocations of a cannabis establishment registration.
(j) Reasonable security requirements for each type of cannabis establishment, which may be varied based on the size of the cannabis establishment.
(k) Health and safety rules, including regarding the packaging and preparing of cannabis and restricting the use of pesticides that may be dangerous to cannabis consumers;
(l) Restrictions on the advertising, signage, marketing, and display of cannabis, including but not limited to:
(1) A prohibition on mass-market campaigns that have a high likelihood of reaching minors,
(2) Restrictions to prevent cannabis from being marketed to minors,
(3) A prohibition on cannabis products that are named, packaged, marketed, or designed in a way that mimics or is likely to cause confusion with commercially available, trademarked non-cannabis products, including relating to their logos, the sound of the product or brand, packaging, taste, appearance, and commercial impression, and
(4) A prohibition on giveaways of cannabis, cannabis products, or cannabis accessories.
(m) The department may require that any advertising for cannabis or cannabis products include a standard, recognizable symbol.
(n) Restrictions on where a cannabis cultivation facility may be located, consistent with the provisions of this chapter.
(o) Restrictions on the hours of sale when a retail cannabis store may sell cannabis and cannabis products, provided the regulations shall not allow retail stores to begin sales before 6:00 a.m. or to sell cannabis or cannabis products after 11:45 p.m.
(p) Packaging, product manufacturing, and labeling requirements for cannabis and cannabis products, including:
(1) Mandating the disclosure of the THC content of each product;
(2) Requirements to ensure cannabis products and their packaging are not designed to appeal to or be attractive to minors, including providing that they cannot be in the shape of cartoons, toys, animals, or people; and
(3) Establishing the maximum amount of THC that may be included in each serving; and
(4) Prohibiting flavors and designs of cannabis-infused beverages, oils, and edibles that resemble or imitate candy flavors that are marketed to minors.
(q) Health and safety rules and standards for the manufacture of cannabis products, including:
(1) Restrictions or prohibitions on additives to products that are toxic, misleading to consumers, or designed to make the product more appealing to children;
(2) Safety standards regulating the manufacture of cannabis extracts and concentrates; and
(3) A prohibition on the inclusion of nicotine and other additives to products that are designed to make the product more addictive.
(r) Standards for the operation of testing laboratories, including requirements for equipment and qualifications for personnel.
(s) Requirements for the testing of cannabis, including:
(1) Requirements to ensure at a minimum that products sold for human consumption do not contain contaminants that are injurious to health and to ensure correct labeling;
(2) That testing shall include, but not be limited to, analysis for residual solvents, poisons, or toxins; harmful chemicals; dangerous molds or mildew; filth; dangerous pesticides and harmful microbials, such as E. coli or salmonella;
(3) Providing that in the event that test results indicate the presence of quantities of any substance determined to be injurious to health, such products shall be immediately quarantined and immediate notification to the commission shall be made. The adulterated product shall be documented and properly destroyed;
(4) That testing shall also verify THC potency representations for correct labeling;
(5) That the commission shall determine an acceptable variance for potency representations and procedures to address potency misrepresentations; and
(6) That the commission shall determine the protocols and frequency of cannabis testing by a cannabis testing facility.
(t) Reasonable health and safety restrictions on cannabis accessories that may be manufactured or sold in New Hampshire, including a prohibition on any vaporization device that includes toxic or addictive additives. The commission may prohibit types of vaporizers that are particularly likely to be utilized by minors without detection, but may not completely ban or unreasonably restrict the manufacture or sale of vaporization devices.
(u) Training and continuing education required or recommended for licensees, which shall include training on checking photo identification and for false identification.
(v) Requirements that cannabis retail stores stock cannabis products, including flower, with low and moderate amounts of THC and that they be at least as prominently displayed as high potency products.
II.(a) In order to ensure that individual privacy is protected, the commission shall not require a consumer to provide a retail cannabis store with personal information other than government-issued identification to determine the consumer’s age, and a retail cannabis store shall not be required to acquire and record personal information about consumers.
(b) In order to ensure that individual privacy is protected, no cannabis establishment may record or store a consumer’s name, address, purchases, or contact information unless the consumer consents in writing. No cannabis establishment may make granting permission for the collection or storage of the above information a condition of a consumer purchasing cannabis from the establishment.
III. Not later than 15 months after the effective date of this chapter, the commission, in consultation with the department, shall develop an informational handout, which retail stores shall make available to all consumers, and which shall include information detailed in RSA 318-F:17.
IV. The commission shall require all cannabis establishments to utilize an inventory tracking system, including use of a universal product code, for tracking the transfer of cannabis and cannabis products between licensed cannabis establishments and the sale of cannabis and cannabis products to consumers. The system shall ensure an accurate accounting of the production, processing, and sale of cannabis and cannabis products and shall enable separate tracking of cannabis flowers, immature cannabis plants, and other parts of cannabis sold from cannabis cultivation facilities. The system shall allow for the tracking of lab testing results for all cannabis and shall be capable of swiftly identifying all products involved in a product recall. The commission may develop and maintain a system that satisfies the requirements of this section, or it may select a vendor to develop and maintain a system.
V. No later than 15 months after the effective date of this chapter, and every year thereafter, the commission shall reevaluate the fines and penalties established in RSA 318-F, and shall report in writing on its findings and recommendations to the chairpersons of the house and senate ways and means committees.
VI. The commission may regulate synthetic cannabinoids and intoxicating products derived from hemp.
VII. No later than 18 months after the effective date of this section, after receiving input from the advisory board, the commission shall make written recommendations to the general court regarding the regulation of hemp including:
(a) What hemp products the commission would regulate;
(b) How the products would be regulated, including whether registration would be required and whether hemp processors and manufacturers should be licensed and regulated by the commission;
(c) Any registration fees or other charges that would be assessed on hemp products and license fees assessed on hemp processors and manufacturers; and
(d) The resources required to regulate hemp processors, product manufacturers, hemp products, and the retail sale of intoxicating hemp products.
318-F:11 Dual Use Certificates.
I. No later than one year after the effective date of this chapter, the commission, after consulting with the department of health and human services and the therapeutic cannabis medical oversight board and holding at least one public hearing, shall develop regulations allowing alternative treatment centers registered to operate pursuant to RSA 126-X to apply for a dual use certificate.
II. A separate dual use certificate is required for each alternative treatment center dispensing location.
III. The commission shall levy a $10,000 application fee each dual use certificate.
IV.(a) The commission shall grant or deny any application for a dual use certificate within 90 days.
(b) The commission shall levy a $90,000 fee for each dual use certificate. The license shall not expire unless it is revoked.
V. The regulations for a dual use certificate shall include, but are not limited to:
(a) Providing for separation of cannabis sales to qualifying patients and consumers, such as by requiring separate counters;
(b) Requiring dual-use cannabis establishments to prioritize therapeutic cannabis access;
(c) Requiring dual-use cannabis establishments to maintain or increase the diversity of therapeutic cannabis products available for qualifying patients;
(d) Requiring dual-use cannabis establishments to avoid raising prices for qualifying patients beyond the rate of inflation, for at least 2 years after dual use licensure;
(e) A requirement that in the event of crowding, inadequate parking, or similar issues limiting therapeutic cannabis access, the dual-use cannabis establishment shall take measures to prioritize therapeutic cannabis access, such as setting aside certain business hours when the establishment will only serve qualifying patients and their designated caregivers; and
(f) Providing for the suspension of sales of cannabis to adult-use consumers in the event of a product shortage.
VI.(a) Cannabis sold by alternative treatment centers holding dual use certificates to qualifying patients directly or via their designated caregivers shall meet the requirements of RSA 126-X:8 and rules issued pursuant to chapter RSA 126-X.
(b) Cannabis sold by alternative treatment centers holding dual use certificates to qualifying patients directly or via their designated caregivers may have higher THC per serving than is permitted by rules governing cannabis establishment that are issued pursuant to RSA 318-F:10.
VII. Cannabis stores affiliated with alternative treatment centers holding dual use certificates may sell cannabis grown and processed by those alternative treatment centers to consumers provided they comply with rules issued pursuant to this section and RSA 318-F:10.
318-F:12 Transition of Therapeutic Cannabis Program.
I. No later than 20 months after the effective date of this chapter, the commission, jointly with the department of health and human services, shall develop a proposal to move the therapeutic cannabis program to the commission. The chairperson of the commission shall deliver the proposal to the house of representatives health, human services and elderly affairs and the New Hampshire senate health and human services committee.
II. The proposal shall include a plan to allow cannabis retail stores to obtain a therapeutic cannabis endorsement that would allow them to serve qualifying patients without imposing the meals, cannabis, and rooms tax.
318-F:13 Registration Procedures for Cannabis Establishments.
I. Each application for a registration to operate a cannabis establishment shall be submitted to the commission.
II. Each application shall include both the fee established by the commission and a $500 fee for the municipality to review the application, except that the municipal fee shall be $75 in the case of the smallest tier of cultivation facilities.
III. The commission shall:
(a) Accept and process applications beginning no later than 14 months after the effective date of this chapter for cannabis cultivation facilities, beginning no later than 17 months after the effective date of this chapter for cannabis product manufacturing facilities, cannabis transporters, and cannabis testing facilities, and beginning no later than 18 months after the effective date of this chapter for retail cannabis stores;
(b) Immediately forward a copy of each application and the municipal fee to the municipality in which the applicant desires to operate the cannabis establishment; and
(c) Issue a registration to the applicant within 90 days after receipt of an application unless:
(1) The commission finds the applicant is not in compliance with the requirements of this chapter or rules adopted under this chapter;
(2) The commission is notified by the relevant municipality that the applicant is not in compliance with an ordinance adopted pursuant to this chapter and in effect at the time of application; or
(3) More qualified applicants have applied than the number of registrations available in the municipality, and the applicant was not selected.
(d) Accept and process applications on an ongoing basis.
IV. Each registration applies to a single parcel of real property. Any additional address requires a separate application and registration.
V. A renewal application may be submitted up to 90 days prior to the expiration of the cannabis establishment’s registration. The renewal application shall be granted within 30 days of its submission unless the applicant has not paid the fee, the cannabis establishment’s registration is suspended or revoked, or the cannabis establishment has a pattern of violations of this law, the rules issued pursuant to it, or municipal regulations.
VI.(a) An applicant shall not be rejected on the basis that the applicant has not purchased or leased the property where the cannabis establishment would be located. However, the applicant may be required to specify the municipality in which it intends to operate.
(b) The commission shall provide conditional approval for applicants that have not yet purchased or leased the property where the cannabis establishment would be located, or who require additional work on the business.
(c) Once the applicant provides the commission with a completed, supplemental application that identifies the property where the cannabis establishment is to be located, the commission shall forward the information to the local regulatory authority and approve or reject the final application within 45 days.
VII. Nothing in this chapter shall prevents a person or entity from holding multiple types of cannabis registration and from co-locating the businesses.
318-F:14 Enactment of Municipal Ordinances.
I. A municipality may enact an ordinance prohibiting or limiting the number and type of cannabis establishments that may be permitted within the municipality and regulating the time, place, and manner of operation of a cannabis establishment, which is permitted within the municipality. A locality’s prohibition on cannabis establishments may not prohibit transportation through the locality or deliveries within the locality by cannabis establishments located in other jurisdictions.
II. A municipality may enact an ordinance specifying the entity within the municipality that shall be responsible for reviewing applications submitted for a registration to operate a cannabis establishment within the municipality. The entity designated by the municipality shall be responsible for indicating whether the application is in compliance with municipal ordinances.
III. A municipality may not negotiate or enter into an agreement with a cannabis establishment or a cannabis establishment applicant requiring that the cannabis establishment or applicant provide money, donations, in–kind contributions, services, or anything of value to the locality.
318-F:15 Residency Required.
I. Except as provided in this section, any person applying for a cannabis establishment registration shall be a resident, or shall have at least one director, officer, or partner who is a New Hampshire resident.
II. This section shall not apply to an applicant for a testing facility registration.
318-F:16 Restrictions on Location Near Schools. No cannabis establishment shall operate, nor shall a prospective cannabis establishment apply for a registration, if the establishment would be located within 1,000 feet of the property line of a pre-existing public or private elementary or secondary school, unless the municipality where the establishment seeks to operate has established a smaller distance limitation.
318-F:17 Informational Materials and Warning Labels.
I. The commission, in consultation with the department, shall design at least 2 versions of informational handout, one of which is specific to high potency products.
II. A retail cannabis store shall include an informational handout designed by the commission in consultation with the department with all cannabis and cannabis products sold to consumers, and shall include the high potency version in all cannabis concentrates and other high potency sales. The informational handouts shall include scientifically accurate information, including:
(a) Advice about the potential risks of cannabis, and, in the case of the high potency handout, risks specific to high potency products, including:
(1) The risks of driving under the influence of cannabis, and the fact that doing so is illegal;
(2) Any adverse effects unique to adolescents or young adults, including effects related to the developing mind;
(3) Potential adverse events and other risks, including related to mental health; and
(4) Risks of using cannabis during pregnancy or breastfeeding. This may be identical to that required under RSA 126-X:8, XVI(c)(7).
(b) Information about methods for administering cannabis;
(c) How long cannabis may impair a person after it is ingested in each manner; and
(d) How to recognize problematic usage of cannabis and how to obtain appropriate services or treatment;
(e) Information regarding safe storage and disposal of cannabis and paraphernalia to prevent accidental poisonings, including the contact information for the Northern New England Poison Control Center. This may be identical to that required under RSA 126-X:8, XVI(c)(8); and
(f) Unless federal statutory law or case law has changed and such a warning is no longer accurate, a disclosure that:
(1) Cannabis is illegal under U.S. federal law, and
(2) Under the United States government’s 1986 Gun Control Act, any ‘unlawful’ user of a controlled substance is prohibited from purchasing or owning a gun.
III. The commission may require retail stores to display informational posters in conspicuous locations about the risks of cannabis use, including regarding risks during pregnancy and breastfeeding and risks of cannabis use in adolescents or by younger adults. The posters shall be scientifically accurate.
IV. All cannabis and cannabis products sold by a retail cannabis store shall include warning labels that provide the following information: “Warning: This product has intoxicating effects. For use by adults 21 and older. Keep out of reach of children.” The department may require a standard, recognizable symbol on all cannabis packaging to signify that THC or other cannabinoids are included in the product.
V. All cannabis products sold by retail cannabis stores shall include:
(a) A warning label that provides, “Caution: When eaten or swallowed, the intoxicating effects of this product may be delayed by up to 2 hours,” unless the department determines that a different time frame should be specified.
(b) A disclosure of ingredients and possible allergens.
(c) A nutritional fact panel.
(d) Opaque, child-resistant packaging, which shall be designed or constructed to be significantly difficult for children under 5 years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R. section 1700.20.
318-F:18 Lawful Operation of Cannabis-Related Facilities. If undertaken by a person 21 years of age or older, the following acts shall not be illegal under New Hampshire law or be a basis for seizure or forfeiture of assets under New Hampshire law:
I. Possessing, displaying, or transporting cannabis or cannabis products; obtaining or purchasing cannabis from a cannabis cultivation facility; delivering or transferring cannabis to a cannabis testing facility; obtaining or purchasing cannabis or cannabis products from a cannabis product manufacturing facility; or sale, delivery, or distribution of cannabis or cannabis products to an adult who is 21 years of age or older or to retail cannabis stores or alternative treatment centers, if the person or business entity conducting the activities described in this paragraph has obtained a current, valid registration to operate a retail cannabis store or is acting in his or her capacity as an owner, employee, or agent of a registered retail cannabis store.
II. Cultivating, harvesting, processing, packaging, transporting, displaying, or possessing cannabis; obtaining or purchasing cannabis seeds or seedlings or immature cannabis plants from any adult 21 years of age or older; delivering or transferring cannabis to a cannabis testing facility; selling or transferring cannabis that has not been processed into extracts, concentrates, or other preparations to a cannabis cultivation facility, a cannabis product manufacturing facility, or a retail cannabis store or alternative treatment center; or obtaining or purchasing cannabis from a cannabis cultivation facility, if the person or business entity conducting the activities described in this paragraph has obtained a current, valid registration to operate a cannabis cultivation facility or is acting in his or her capacity as an owner, employee, or agent of a registered cannabis cultivation facility.
III. Packaging, processing, transporting, manufacturing, displaying, or possessing cannabis or cannabis products; delivering or transferring cannabis or cannabis products to a cannabis testing facility; selling cannabis or cannabis products to a retail cannabis store, alternative treatment center, or a cannabis product manufacturing facility; purchasing or obtaining cannabis from a cannabis cultivation facility; or purchasing or obtaining cannabis or cannabis products from a cannabis product manufacturing facility, if the person or business entity conducting the activities described in this paragraph has obtained a current, valid registration to operate a cannabis product manufacturing facility or is acting in his or her capacity as an owner, employee, or agent of a registered cannabis product manufacturing facility.
IV. Possessing, obtaining, cultivating, processing, storing, transporting, receiving, or displaying cannabis or cannabis products if the person or business entity has obtained a current, valid registration to operate a cannabis testing facility or is acting in his or her capacity as an owner, employee, or agent of a registered cannabis testing facility.
V. Engaging in any activities involving cannabis or cannabis products if the person or business entity conducting the activities has obtained a current, valid registration to operate a cannabis establishment or is acting in his or her capacity as an owner, employee, or agent of a registered cannabis establishment, and the activities are within the scope of activities allowed by the commission for that type of cannabis establishment.
VI. Possessing, obtaining, cultivating, processing, storing, transporting, or receiving cannabis obtained from a cannabis establishment or transporting, delivering, or transferring cannabis to a cannabis establishment if the person or business entity has obtained a current, valid registration to operate a cannabis transporter or is acting in his or her capacity as an owner, employee, or agent of a registered cannabis transporter.
VII. Obtaining or purchasing cannabis from a cannabis cultivation facility; delivering or transferring cannabis to a cannabis testing facility; or obtaining or purchasing cannabis or cannabis products from a cannabis product manufacturing facility if the person or business entity conducting the activities described in this paragraph possesses a valid registration to operate an alternative treatment center or is acting in his or her capacity as an owner, employee, or agent of a registered alternative treatment center.
VIII. Leasing or otherwise allowing the use of property owned, occupied, or controlled by any person, corporation, or other entity for any of the activities conducted lawfully in accordance with this chapter.
IX. Selling, offering for sale, transferring, transporting, or delivering cannabis to establishments licensed to process or sell cannabis under the laws of other states if the person or business entity has obtained a current, valid registration to operate a cannabis transporter, cannabis product manufacturing facility, or cannabis cultivation facility or is acting in his or her capacity as an owner, employee, or agent of a cannabis transporter, cannabis product manufacturing facility, or cannabis cultivation facility.
318-F:19 Proof of Purchaser's Identity.
I. For the purposes of this chapter, any person or entity making the sale of cannabis or cannabis accessories to any purchaser whose age is in question may accept any official documentation listed in RSA 179:8 as proof that the purchaser is 21 years of age or older.
II. The establishment of all of the following facts by a retail cannabis store or an agent or employee of a retail store making a sale of cannabis or cannabis accessories to a person under the age of 21 shall constitute an affirmative defense to any prosecution for such sale:
(a) That the person presented what an ordinary and prudent person would believe to be valid documentation of a type listed in RSA 179:8.
(b) That the sale was made in good faith relying upon such documentation and appearance in the reasonable belief that the person was 21 years of age or older. No identification scanning or collection of personally identifiable information shall be required under this section.
318-F:20 Driving; Minors; and Control of Property.
I. Nothing in this chapter shall be construed to permit driving or operating under the influence of drugs or liquor pursuant to RSA 265-A, nor shall this section prevent the state from enacting and imposing penalties for driving under the influence of or while impaired by cannabis.
II. Nothing in this chapter shall be construed to permit the transfer of cannabis, with or without remuneration, to a person under the age of 21, or to allow a person under the age of 21 to purchase, possess, use, transport, grow, or consume cannabis.
III. Nothing in this chapter shall prohibit a state or county correctional facility from prohibiting the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of cannabis on or in the correctional facility's property.
IV.(a) Except as provided in this section, this chapter does not require any person, corporation, or any other entity that occupies, owns, or controls a property to allow the consumption, cultivation, display, sale, or transfer of cannabis on or in that property.
(b) In the case of the rental of a residential dwelling, a landlord shall not prohibit the possession of cannabis or the consumption of cannabis by non-smoked means unless:
(1) The tenant is a roomer who is not leasing the entire residential dwelling;
(2) The residence is incidental to the provision of educational, counseling, religious, or similar service;
(3) The residence is a transitional housing facility; or
(4) Failing to prohibit cannabis possession or consumption would violate federal law or regulations or cause the landlord to lose a monetary or licensing-related benefit under federal law or regulations.
(c) This chapter shall not prevent a landlord from prohibiting cannabis smoking or cannabis cultivation.
(d) An adult who is 21 or older may use cannabis on privately owned real property only with permission of the property owner or, in the case of leased or rented property, with the permission of the tenant in possession of the property, except that a tenant shall not allow a person to smoke cannabis on rented property if smoking on the property violates the lease or the lessor's rental policies that apply to all tenants at the property. However, a tenant may permit an adult who is 21 or older to use cannabis on leased property by ingestion or inhalation through vaporization even if smoking is prohibited by the lease or rental policies. For purposes of this chapter, vaporization shall mean the inhalation of cannabis without the combustion of the cannabis.
318-F:21 Enforcement of Contracts. Contracts related to the operation of a cannabis establishment registered pursuant to this chapter shall be enforceable. No contract entered into by a registered cannabis establishment or its employees or agents as permitted pursuant to a valid registration, or by those who allow property to be used by an establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling, possessing, or using cannabis is prohibited by federal law.
318-F:22 Non-Discrimination for State-Legal Cannabis Activities and Prior Convictions.
I. Except as provided in this section, a holder of a professional or occupational license may not be subject to professional discipline for:
(a) Providing advice or services related to cannabis establishments or applications to operate cannabis establishments on the basis that cannabis is illegal under federal law; or
(b) Engaging in activities allowed by this chapter.
II. An applicant for a professional or occupational license may not be denied a license based on:
(a) Previous employment related to cannabis establishments operating in accordance with state law;
(b) A prior conviction for a non-violent cannabis offense that does not involve distribution to minors, or
(c) Engaging in activities allowed by this chapter.
III. Except as provided in this section, neither the state nor any of its political subdivisions may impose any penalty or deny any benefit or entitlement for conduct permitted under this chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older.
IV. Except as provided in this section, neither the state nor any of its political subdivisions may deny a driver’s license, a professional license, housing assistance, social services, or other benefits based on cannabis use or for the presence of cannabinoids or cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person who is 21 years of age or older.
V. A person shall not be denied custody of or visitation with a minor for acting in accordance with this chapter, unless the person’s behavior is such that it creates an unreasonable danger to the minor that can be clearly articulated and substantiated.
VI. Except as provided in this section, neither the state nor any of its political subdivisions may discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person in employment or contracting, if the discrimination is based upon either of the following:
(a) Engaging in activities allowed by this chapter;
(b) A prior conviction for a non-violent cannabis offense that does not involve distribution to minors; or
(c) Testing positive for the presence of cannabinoids or cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of the individual's body.
VII.(a) This section does not prevent an employer from disciplining an employee or contractor for ingesting cannabis in the workplace or for working while impaired by cannabis.
(b) The protections provided by this section do not apply to the extent that they conflict with a governmental employer’s obligations under federal law or regulations or to the extent that they would disqualify the entity from a monetary or licensing-related benefit under federal law or regulations.
(c) This section does not authorize any person to engage in, and does not prevent the imposition of any civil, criminal, disciplinary, or other penalties, including discipline or termination by a governmental employer, any task while under the influence of cannabis, when doing so would constitute negligence or professional malpractice.
VIII. For the purposes of medical care, including organ and tissue transplants, the use of cannabis does not constitute the use of an illicit substance or otherwise disqualify a person from needed medical care and may only be considered with respect to evidence-based clinical criteria.
IX. Notwithstanding any other provision of law, unless there is a specific finding that the individual’s use, cultivation, or possession of cannabis could create a danger to the individual or another person, it shall not be a violation of conditions of parole, probation, or pre-trial release to:
(a) Engage in conduct allowed by this chapter; or
(b) Test positive for cannabis, tetrahydrocannabinol, or any other cannabinoid or metabolite of cannabis.
X. This section does not authorize any person to engage in, and does not prevent the imposition of any penalties for engaging in, the following conduct:
(a) Undertaking any task under the influence of cannabis, when doing so would constitute negligence or professional malpractice.
(b) Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, train, or motorboat while under the influence of cannabis.
318-F:23 Data Collection Related to Cannabis Legalization and Regulation.
I. No later than 6 months after the effective date of this chapter and every 2 years thereafter, the department of safety, information and analysis center, drug monitoring initiative, shall produce and publish a report that includes baseline data and the most current data regarding health and welfare outcomes since cannabis became legal and regulated for adults’ use, including but not limited to high school graduation rates; youth and adult rates of alcohol, cannabis, and illegal drug use; rates of maladaptive use of cannabis; rates of alcohol abuse; opiate use and abuse rates; the number and type of youth and adult convictions for cannabis offenses; and the rates of individuals needing but not receiving substance abuse treatment. The report shall also include information on treatment and prevention services provided, education campaigns undertaken, and funding allocated under RSA 318-F:24.
II. No later than 6 months after the effective date of this chapter, and again 18 months after the effective date of this chapter, and every 2 years thereafter, the Judicial Branch shall produce and publish a report that includes the number of cases automatically annulled pursuant to each RSA 651:5-b and 651:5-c; the number of petitions for re-sentencing pursuant to RSA 651:5-d, and their disposition; and the number of cases dismissed pursuant to RSA 651:5-e.
318-F:24 Cannabis Fund Established.
I. There is established a nonlapsing fund to be known as the cannabis fund. The fund shall be kept distinct and separate from all other funds in the state treasury, and the moneys credited to the fund shall be held distinct and separate from all other funds over which the state treasurer has control. Moneys in the fund shall be deposited with any financial institution as defined in RSA 383-A:2-201(a)(27-a), with a branch in the state. Moneys credited to the fund shall include deposits into the fund by the commission pursuant to this chapter and deposits into the fund by the commissioner of the department of revenue administration pursuant to RSA 77-H.
II. For the biennium ending June 30, 2025, and every biennium thereafter, the commission shall include the cost of administration of this chapter in the commission's efficiency expenditure request pursuant to RSA 9:4. The cost of administration of this chapter shall include direct costs incurred by the department of safety and courts for the annulment of cannabis offenses as provided for in 651:5, II-a (3)(a)-(b). Appropriations for such costs shall be a charge against the fund.
III. For the biennium ending June 30, 2025, the sum of $2,000,000 is hereby appropriated to the cannabis commission for the cost of administration of this chapter. Said sum shall be a charge against the fund.
IV. The commission shall credit all fees and civil penalties imposed under this chapter and all other related moneys received from public or private sources to the fund.
V. After deducting appropriations charged to the fund for the cost of administration of this chapter and RSA 77-H, including the costs of cannabis annulment provided in 651:5, II-a(3)(a)-(b), the remaining funds shall be appropriated and distributed on a quarterly basis as follows:
(a) The sum of $100,000 annually to the department of safety, information and analysis center, drug monitoring initiative, for data collection and reporting related to the health impacts of cannabis prohibition and cannabis regulation; and
(b) Of the remaining funds:
(1)(A) Eighty percent shall be disbursed to the department of administrative services to be credited to the New Hampshire retirement system to offset the retirement system's unfunded accrued liability. Upon certification by the commissioner of the department of administrative services that the retirement system has no remaining unfunded accrued liability, this disbursement of funds shall cease.
(B) Upon certification by the commissioner of the department of administrative services that the retirement system has no remaining unfunded accrued liability, 80 percent shall be disbursed to the education trust fund established in RSA 198:39. The comptroller shall notify the commissioner of the department of revenue administration of the amount of the transfer. For the purpose of setting the education tax rate under RSA 76:3, the amount of revenue required to be collected pursuant to RSA 76:3 shall be reduced by the amount transferred to the education trust fund as required in this subparagraph, and the commissioner shall set the rate at a level sufficient to generate the reduced amount. This rate shall be effective for the following fiscal year.
(2) Ten percent shall be allocated to the substance abuse prevention and recovery fund established by RSA 318-F:25.
(3) Five percent for broad-based aid to municipalities with at least one operational cannabis retail store during the time period in which the revenues were collected, with the amount of allocation to each municipality determined based on the percent of tax revenue collected from retail stores located in the municipality; and
(4) Five percent, not to exceed $1 million, to public safety agencies, including police, fire, and rescue agencies, for the hiring and training of additional drug recognition experts, for advanced roadside impaired driving enforcement training, and to assist in responding to drug overdose incidents.
318-F:25 Substance Abuse Prevention and Recovery Fund Established. There is hereby established in the state treasury the substance abuse prevention and recovery fund that shall be kept distinct and separate from all other funds. All proceeds allocated to the fund pursuant to RSA 318-F:24 shall be deposited in the fund. The state treasurer shall invest the fund in accordance with RSA 6:8. Any earnings on fund moneys shall be added to the fund. All moneys in the fund shall be nonlapsing and shall be continually appropriated to the commissioner of the department of health and human services for the purposes and in the manner set forth in RSA 126-A:98.
8 Controlled Drug Act; Definitions. Amend the introductory paragraph in RSA 318-B:1, X-a(k) to read as follows:
(k) Objects used or intended for use or customarily intended for use in ingesting, inhaling, or otherwise introducing [marijuana,] cocaine[, hashish, or hashish oil] into the human body, such as:
9 Controlled Drug Act; Penalties. Amend the introductory paragraph in RSA 318-B:26, I to read as follows:
I. Any person who manufactures, sells, prescribes, administers, or transports or possesses with intent to sell, dispense, or compound any controlled drug, controlled drug analog or any preparation containing a controlled drug, except as authorized in this chapter or as otherwise authorized by law; or manufactures, sells, or transports or possesses with intent to sell, dispense, compound, package or repackage (1) any substance which he or she represents to be a controlled drug, or controlled drug analog, or (2) any preparation containing a substance which he or she represents to be a controlled drug, or controlled drug analog, shall be sentenced as follows, except as otherwise provided in this section:
10 Controlled Drug Act; Penalties. Amend the introductory paragraph in RSA 318-B:26, II to read as follows:
II. Any person who knowingly or purposely obtains, purchases, transports, or possesses actually or constructively, or has under his control, any controlled drug or controlled drug analog, or any preparation containing a controlled drug or controlled drug analog, except as authorized in this chapter or as otherwise authorized by law, shall be sentenced as follows, except as otherwise provided in this section:
11 Controlled Drug Act; Penalties. Amend RSA 318-B:26, II(c)-(e) to read as follows:
(c) In the case of more than 3/4 ounce of marijuana or more than 5 grams of hashish, including any adulterants or dilutants[,] is possessed by a person who is under 21 years of age, or, in the case of an amount exceeding the possession limit defined in RSA 318-F:1 possessed by a person who is 21 years of age or older, except if possessed by a person authorized pursuant to RSA 126-X, the person shall be guilty of a misdemeanor. [In the case of marijuana-infused products possessed by persons under the age of 21 or marijuana-infused products as defined in RSA 318-B:2-e, other than a personal-use amount of a regulated marijuana-infused product as defined in RSA 318-B:2-c, I(b), that are possessed by a person 21 years of age or older, the person shall be guilty of a misdemeanor.]
(d) In the case of 3/4 ounce or less of marijuana or 5 grams or less of hashish, including any adulterants or dilutants, that is possessed by a person who is under 21 years of age, the person shall be guilty of a violation pursuant to RSA 318-B:2-c. [In the case of a person 21 years of age or older who possesses a personal-use amount of a regulated marijuana-infused product as defined in RSA 318-B:2-c, I(b), the person shall be guilty of a violation pursuant to RSA 318-B:2-c.]
(e) In the case of a residual amount of a controlled [substance,] drug, other than marijuana [as defined in RSA 318-B:1, XXIX-a], a person shall be guilty of a misdemeanor if the person is not part of a service syringe program under RSA 318-B:43.
12 Controlled Drug Act; Penalties. Amend RSA 318-B:26, III(a) to read as follows:
(a) [Except as provided in RSA 318-B:2-c,] Controls any premises or vehicle where he or she knows a controlled drug or its analog, other than marijuana, is illegally kept or deposited;
13 Personal Possession of Marijuana. Amend RSA 318-B:2-c to read as follows:
318-B:2-c [Personal] Possession of Marijuana by a Person Under 21 Years of Age.
[I.] In this section:
[(a)] I. "Marijuana" includes the leaves, stems, flowers, and seeds of all species of the plant genus cannabis, but shall not include the resin extracted from any part of such plant and every compound, manufacture, salt, derivative, mixture, or preparation from such resin including hashish, and further, shall not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks, fiber, oil or cake, or the sterilized seed of such plant which is incapable of germination.
[(b) "Personal-use amount of a regulated marijuana-infused product" means one or more products that is comprised of marijuana, marijuana extracts, or resins and other ingredients and is intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures, which was obtained from a state where marijuana sales to adults are legal and regulated under state law, and which is in its original, child-resistant, labeled packaging when it is being stored, and which contains a total of no more than 300 milligrams of tetrahydrocannabinol.]
II. Except as provided in RSA 126-X, any person under 21 years of age who knowingly possesses 3/4 of an ounce or less of marijuana, including adulterants or dilutants, shall be guilty of a violation, and subject to the penalties provided in paragraph V.
III. Except as provided in RSA 126-X, any person under 21 years of age who knowingly possesses 5 grams or less of hashish, including adulterants or dilutants, shall be guilty of a violation, and subject to the penalties provided in paragraph V.
IV. [Except as provided in RSA 126-X, any person 21 years of age or older possessing a personal-use amount of a regulated marijuana-infused product shall be guilty of a violation, and subject to the penalties provided in paragraph V. Persons 18 years of age or older and under 21 years of age who knowingly possess marijuana-infused products shall be guilty of a misdemeanor.
V.](a) Except as provided in this paragraph, any person 18 years of age or older who is convicted of violating paragraph II or III[, or any person 21 years of age or older who is convicted of violating paragraph IV] shall be subject to a fine of $100 for a first or second offense under this paragraph, or a fine of up to $300 for any subsequent offense within any 3-year period; however, any person convicted based upon a complaint which alleged that the person had 3 or more prior convictions for violations of paragraph II[,] or III[ or IV], or under reasonably equivalent offenses in an out-of-state jurisdiction since the effective date of this paragraph, within a 3-year period preceding the fourth offense shall be guilty of a class B misdemeanor. The offender shall forfeit the marijuana[, regulated marijuana-infused products,] or hashish to the state. A court shall waive the fine for a single conviction within a 3-year period upon proof that person has completed a substance abuse assessment by a licensed drug and alcohol counselor within 60 days of the conviction. A person who intends to seek an assessment in lieu of the fine shall notify the court, which shall schedule the matter for review after 180 days. Should proof of completion of an assessment be filed by or before that time, the court shall vacate the fine without a hearing unless requested by a party.
(b) Any person under 18 years of age who is convicted of violating paragraph II or III shall forfeit the marijuana or hashish and shall be subject to a delinquency petition under RSA 169-B:6.
[VI.] V.(a) Except as provided in this section, no person shall be subject to arrest for a violation of paragraph II[,] or III[, or IV] and shall be released provided the law enforcement officer does not have lawful grounds for arrest for a different offense.
(b) Nothing in this chapter shall be construed to prohibit a law enforcement agency from investigating or charging a person for a violation of RSA 265-A.
(c) Nothing in this chapter shall be construed as forbidding any police officer from taking into custody any minor who is found violating paragraph II[,] or III[, or IV].
(d) Any person under 21 years of age who is in possession of an identification card, license, or other form of identification issued by the state or any state, country, city, or town, or any college or university, who fails to produce the same upon request of a police officer or who refuses to truthfully provide his or her name, address, and date of birth to a police officer who has informed the person that he or she has been found to be in possession of what appears to the officer to be 3/4 of an ounce or less of marijuana[, a personal-use amount of a regulated marijuana-infused product,] or 5 grams or less of hashish, may be arrested for a violation of paragraph II[,] or III[, or IV].
[VII.] VI. All fines imposed pursuant to this section shall be deposited into the alcohol abuse prevention and treatment fund established in RSA 176-A:1 and utilized for evidence-informed substance abuse prevention programs.
[VIII.] VII.(a) No record that includes personally identifiable information resulting from a violation of this section shall be made accessible to the public, federal agencies, or agencies from other states or countries.
(b) Every state, county, or local law enforcement agency that collects and reports data for the Federal Bureau of Investigation Uniform Crime Reporting Program shall collect data on the number of violations of paragraph II[,] or III[, or IV]. The data collected pursuant to this paragraph shall be available to the public. A law enforcement agency may update the data annually and may make this data available on the agency's public Internet website.
14 Alcohol or Drug Impairment; Possession of Drugs. Amend RSA 265-A:43 to read as follows:
265-A:43 Possession of Drugs. Any person who drives on any way a vehicle while knowingly having in his or her possession or in any part of the vehicle a controlled drug or controlled drug analog in violation of the provisions of RSA 318-B shall be guilty of a misdemeanor, and his or her license shall be revoked or his or her right to drive denied for a period of 60 days and at the discretion of the court for a period not to exceed 2 years. This section shall not apply to the possession of marijuana or hashish as provided in RSA 318-B:2-c[, or a personal-use amount of a regulated marijuana-infused product as defined in RSA 318-B:2-c, I(b)].
15 Annulment of Arrests and Convictions for Marijuana Possession. RSA 651:5-b is repealed and reenacted to read as follows:
651:5-b Annulment of Arrests and Convictions for Marijuana Possession.
I. As used in this section:
(a) “Cannabis” or “marijuana” means “cannabis” as defined in RSA 318-F:1, II.
(b) “Possession limit” means “possession limit” as defined in RSA 318-F:1, XVIII.
(c) “Cannabis-related offense” means any of the following:
(1) Any offense under RSA 318-B involving cannabis or paraphernalia intended for cannabis; and
(2) Any other offense that would not have been an offense were it not for the illegality of cannabis.
II. Any person who was arrested or convicted for knowingly or purposely obtaining, purchasing, transporting, manufacturing, or possessing, actually or constructively, or having under his or her control, no more than the possession limit 3/4 of an ounce of marijuana or less where the offense occurred before the effective date of RSA 318-F may, at any time, petition the court in which the person was convicted or arrested to annul the arrest record, court record, or both. The petition shall state that the amount of marijuana was no more than the possession limit. The petitioner shall furnish a copy of the petition to the office of the prosecutor of the underlying offense. The prosecutor may object within 10 days of receiving a copy of the petition and request a hearing. If the prosecutor does not object within 10 days, the court shall grant the petition for annulment. If the prosecutor timely objects, the court shall hold a hearing. In a hearing on the petition for annulment, the prosecutor shall be required to prove beyond a reasonable doubt that the petitioner knowingly or purposely obtained, purchased, transported, or possessed, actually or constructively, or had under his or her control, marijuana in an amount exceeding the possession limit. At the close of the hearing, the court shall grant the petition unless the prosecutor has proven that the amount of marijuana exceeded the possession limit. If the petition is granted, and an order of annulment is entered, the provisions of RSA 651:5, X-XI shall apply to the petitioner.
III.(a) Any person who was arrested or convicted for any cannabis-related offense may, at any time, petition the court in which the person was convicted or arrested to annul the arrest record, court record, or both, when the petitioner has completed the sentence. The petition shall state that the arrest or conviction was for a cannabis-related offense.
(b) The petitioner shall furnish a copy of the petition to the office of the prosecutor of the underlying offense. The prosecutor may object within 14 days of receiving a copy of the petition and request a hearing. If the prosecutor does not object within 14 days, the court shall grant the petition for annulment.
(c) If the prosecutor timely objects, the court shall hold a hearing. In a hearing on the petition for annulment, the prosecutor shall be required to prove by clear and convincing evidence that:
(1) The offense is not eligible for annulment under this section because it was not a cannabis-related offense;
(2) The offense is not eligible for annulment under this section because the petitioner has not completed the sentence; or
(3) Annulment would not be in the interests of justice.
(d) The court shall grant the petition unless the prosecutor has proven that:
(1) The offense is not eligible for annulment under this section because it was not a cannabis-related offense;
(2) The offense is not eligible for annulment under this section because the petitioner has not completed the sentence; or
(3) Annulment would not be in the interests of justice.
(e) There shall be a presumption that granting the petition would be in the interests of justice due to the legalization of cannabis for adults and the unequal enforcement of cannabis laws. The presumption may be overcome by evidence that the annulment would not be in the interests of justice, including in instances where the offense was recent and involved:
(1) An adult distributing cannabis to minor or using a minor to sell cannabis; or
(2) A conviction under RSA 318-B:2-e for negligently storing marijuana-infused products, causing a minor to access them.
IV. If the petition is granted, and an order of annulment is entered, the provisions of RSA 651:5, X-XI shall apply to the petitioner.
V. All fees shall be waived and the judicial branch shall receive compensation for actual costs from the cannabis fund. In years prior to the time when sales of cannabis generate sufficient funds to cover these costs, the judicial branch shall receive compensation from the general fund.
16 New Sections; Sentences; Annulment of Certain Arrests and Convictions for Cannabis. Amend RSA 651 by inserting after section 5-b the following new sections:
651:5-c Annulment of Certain Arrests and Convictions for Cannabis.
I. All convictions and arrests for misdemeanor or violation level offenses for possession of cannabis shall be automatically annulled. Within 6 months of the effective date of this section, the department of safety shall remove any such qualified convictions from its records and notify the court from which the case originated, which shall place an order of annulment in the court file and thereafter process the file in the same manner as any other annulled case. Any person who believes themselves to be eligible for automatic annulment may request that the department of safety examine his or her conviction to determine whether it should be annulled. Should the department of safety fail to annul a qualified conviction, any person so aggrieved may petition the court without fee for further review of eligibility. The judicial branch and department of safety shall determine the actual costs of processing such annulments and be reimbursed from cannabis fund. In years prior to the time when sales of cannabis generate sufficient funds to cover these costs, they shall receive compensation from the general fund.
II. Eligible annulments of convictions and civil adjudications pursuant to this section shall be granted notwithstanding the existence of outstanding court-imposed or court-related fees, fines, costs, assessments, or charges.
651:5-d Re-Sentencing for Cannabis Sentences.
I. As used in this section:
(a) “Cannabis” means “cannabis” as defined in RSA 318-F:1, II.
(b) “Cannabis-related offense” means any of the following:
(1) Any offense under RSA 318-B involving cannabis or paraphernalia intended for cannabis; and
(2) Any other offense that would not have been an offense were it not for the illegality of cannabis.
II.(a) No later than 90 days after the effective date of this section, the department of corrections and the superintendent of each county house of correction shall conduct a search to determine all individuals serving a period of incarceration or supervision for a violation of RSA 318-B involving cannabis or paraphernalia intended for cannabis, or any other cannabis-related offense and notify the court in which each person was convicted and the judicial branch, administrative office of the courts.
(b) Any person who was convicted of any cannabis-related offense who has not completed the sentence may, at any time, petition the court in which the person was convicted for re-sentencing.
(c) The court in which the person was convicted shall furnish a copy of the petition to the office of the prosecutor of the underlying offense. The prosecutor may object within 14 days of receiving a copy of the petition and request a hearing. If the prosecutor does not object within 14 days, the court shall grant the petition and re-sentence the person to the portion of the sentence the individual has already completed.
(d) If the prosecutor timely objects, the court shall hold a hearing. In a hearing on the petition for re-sentencing, the prosecutor shall be required to prove by clear and convincing evidence that:
(1) The offense is not eligible for re-sentencing under this section because it was not a cannabis-related offense;
(2) Re-sentencing would not be in the interests of justice; and
(3) Re-sentencing would be in the interests of justice, but that the appropriate sentence is something other than the portion of the sentence the individual has already completed.
(e) The court shall grant the petition and re-sentence the individual to any sentence they have already completed unless the prosecutor has proven that:
(1) The offense is not eligible for re-sentencing under this section because it was not a cannabis-related offense;
(2) Re-sentencing would not be in the interests of justice; or
(3) Re-sentencing would be in the interests of justice, but that the appropriate sentence is something other than the portion of the sentence the individual has already completed.
(f) There shall be a presumption that granting the petition would be in the interests of justice due to the legalization of cannabis for adults and the unequal enforcement of cannabis laws. The presumption may be overcome, including in instances where the prosecutor proves by clear and convincing evidence that re-sentencing would not be in the interests of justice because:
(1) Additional, more serious charges unrelated to cannabis were dismissed as part of a plea deal; or
(2) The offense involved distribution of marijuana to minor, using a minor to distribute marijuana, or a violation of RSA 318:B-2-e for negligently storing marijuana-infused products, causing a minor to access them.
(g) The court may find that re-sentencing is in the interests of justice, but that a complete reduction in the sentence is not in the interests of justice. In those instances, the court shall re-sentence the individual to the lowest sentence that is in the interests of justice, in light of legalization of cannabis and disparities in arrests and sentencing.
(h) A court may not increase any aspect of a sentence in response to a re-sentencing petition filed pursuant this section.
(i) Any person eligible for re-sentencing for cannabis sentences pursuant to this section may file a petition for the assistance of counsel without charge; however, if such person was found to be indigent at his original sentencing, shall be entitled to assistance of counsel without charge for the hearing on modification of his sentence without the filing of such petition. No fee shall be charged for filing a petition under this section.
(j) The judicial branch shall receive compensation for actual costs of this section from the cannabis fund. In years prior to the time when sales of cannabis generate sufficient funds to cover these costs, the judicial branch shall receive compensation from the general fund.
651:5-e Certain Crimes Not to be Pursued; Dismissal.
I. As used in this section:
(a) “Cannabis” means “cannabis” as defined in RSA 318-F:1, II.
(b) “Possession limit” means “possession limit” as defined in RSA 318-F:1, XVIII.
II.(a) Except to the extent required to dismiss, withdraw, or terminate the charge, no prosecutor shall pursue any charge based on crimes or offenses pending with a court that occurred prior to the effective date of RSA 318-F, involving a person 21 years of age or older knowingly or purposely obtaining, purchasing, transporting, manufacturing or possessing, actually or constructively, or having under his or her control, no more than the possession limit of cannabis where the offense occurred before the effective date of RSA 318-F.
(b) The existence of convictions in other counts within the same case that are not eligible for dismissal pursuant to this section or other applicable laws shall not prevent any conviction otherwise eligible for dismissal under this section from being dismissed pursuant to this section.
III. On the first day of the fifth month next following the effective date of RSA 318-F, any guilty verdict, plea, placement in a diversionary program, or other entry of guilt on a matter that was entered prior to that effective date, but the judgment of conviction or final disposition on the matter was not entered prior to that date, and the guilty verdict, plea, placement in a diversionary program, or other entry of guilt solely involved one or more crimes or offenses involving a person 21 years of age or older knowingly or purposely obtaining, purchasing, transporting, manufacturing or possessing, actually or constructively, or having under his or her control, no more than the possession limit of cannabis, shall be vacated by operation of law. The judicial branch, in consultation with the attorney general, may take any administrative action as may be necessary to vacate the guilty verdict, plea, placement in a diversionary program, or other entry of guilt.
17 New Paragraph; Business Profits Tax; Additions and Deductions. Amend RSA 77-A:4 by inserting after paragraph XIX the following new paragraph:
XX. A deduction from gross business profits of an amount equal to all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business as a cannabis establishment as defined by RSA 318-F:1 or an alternative treatment center as defined by RSA 126-X:1, including reasonable allowance for salaries or other compensation for personal services actually rendered, notwithstanding any federal tax law to the contrary.
18 Tax on Meals and Rooms; Chapter Title Amended. Amend RSA 78-A:1 to read as follows:
78-A:1 Title. This chapter may be known and cited as the "Meals and Rooms Tax Law." Alternatively, this chapter may be known and cited as the “Meals, Rooms, and Cannabis Tax Law.”
19 New Paragraphs; Tax on Meals and Rooms; Definitions. Amend RSA 78-A:3 by inserting after paragraph I the following new paragraphs:
I-a. "Cannabis" means “cannabis” as defined in RSA 318-F:1, II.
I-b. "Cannabis establishment" means "cannabis establishment" as defined in RSA 318-F:1, V.
20 Tax on Meals and Rooms; Definitions. Amend RSA 78-A:3 XIII to read as follows:
XIII. "Operator" means any person operating a hotel, operating a cannabis establishment, charging for a taxable meal, or receiving gross rental receipts, whether as owner or proprietor or lessee, or otherwise. The term operator shall include a rental facilitator and a room facilitator.
21 New Paragraph; Tax on Meals and Rooms; Definitions. Amend RSA 78-A:3 by inserting after paragraph XXV the following new paragraph:
XXVI. “Taxable sales of cannabis” means any sale of cannabis, including any sale of concentrated cannabis and cannabis products, which is subject to a tax under RSA 78-A:6-e. In any case where a cannabis establishment gives away cannabis contemporaneously with another transaction between the same parties, and in any case where a gift of cannabis is contingent upon a separate transaction, the price paid for the related or contemporaneous transaction shall be considered a taxable sale of cannabis.
22 Tax on Meals and Rooms; License Required; Cannabis Establishments. Amend RSA 78-A:4 to read as follows:
78-A:4 Meals and Rentals Licenses Required; Penalty.
I. Each operator shall register with the department the name and address of each place of business within the state where it operates a hotel, sells taxable meals, or rents motor vehicles. The operator shall complete a registration, upon receipt of which the department shall issue a meals and rentals license for each place in such form as it determines, attesting that the registration has been made, provided that a license shall not be issued or renewed if the operator owes unpaid taxes, interest, or penalties from any tax administered by the department. A license may be denied if the commissioner has reason to believe that the registration is filed by a person as a subterfuge for the real person in interest whose license has been previously been revoked, suspended, or not renewed for cause. Licenses shall expire on June 30 in each odd-numbered year, unless the business ceases operation, a change in ownership occurs, or the license is revoked or suspended by the department prior to expiration of the license.
I-a. Each cannabis retail store, or other cannabis establishment that is registered pursuant to 318-F:13 to sell directly to consumers, shall register with the department the name and address of each place of business within the state where it operates a cannabis establishment that is licensed to sell directly to consumers. The operator shall complete a registration, upon receipt of which the department shall issue a cannabis sales license for each place in such form as it determines, attesting that the registration has been made, provided that a license shall not be issued or renewed if the operator owes unpaid taxes, interest, or penalties from any tax administered by the department. A license may be denied if the commissioner has reason to believe that the registration is filed by a person as a subterfuge for the real person in interest whose license has been previously been revoked, suspended, or not renewed for cause. Licenses shall expire on June 30 in each odd-numbered year, unless the business ceases operation, a change in ownership occurs, or the license is revoked or suspended by the department prior to expiration of the license.
I-b. [The] Each license issued pursuant to this section shall be conspicuously posted in a public area upon the premises to which it relates. Violation of the posting requirement in this paragraph may result in a warning from the department that the operator's license may be revoked, suspended, or denied. The warning shall include notification to the operator of his or her obligation to obtain a meals [and], rooms, and cannabis license and pay the meals [and], rooms, and cannabis tax under this chapter. Subsequent violations of the provisions of this section may constitute sufficient cause for revocation, suspension, or denial of license.
II. [Repealed.]
III. No person shall engage in serving taxable meals, renting rooms, [or] renting motor vehicles, or taxable sales of cannabis, without first obtaining the license required by this section. The license is nonassignable and cannot be transferred. Any person who fails to register or obtain a license as provided in this section shall be subject to the penalty provisions of RSA 21-J:39.
IV. Licenses, operator information displayed on licenses, and license dispositions, such as issuance, renewal, suspension, and revocation, shall be public records.
23 Tax on Meals and Rooms. Amend the introductory paragraph in RSA 78-A:6, II to read as follows:
II. A tax is imposed on taxable meals, and on taxable sales of cannabis, based upon the charge therefor as follows:
24 Tax on Meals and Rooms; Exceptions to Tax. Amend the introductory paragraph in RSA 78-A:6-a, I to read as follows:
I. Gratuity charges added to the charge for a taxable meal, taxable cannabis, or taxable room shall not be taxed under this chapter if:
25 New Section; Tax on Meals and Rooms; Therapeutic Cannabis Sales. Amend by inserting after section 78-A:6-d the following new section:
78-A:6-e Therapeutic Cannabis Sales.
I. Sales of cannabis, including sales of concentrated cannabis and cannabis products, from cannabis establishments shall be taxable under this chapter, except as provided in this section.
II. Sales of therapeutic cannabis to registered qualifying patients, directly or via their designated caregivers, shall not be taxable cannabis sales provided:
(a) The sales were made by alternative treatment centers registered pursuant to RSA 126-X:1;
(b) Each registered qualifying patient shall not purchase more than a total of the following amounts of untaxed cannabis in a 10-day period:
(1) Two ounces of usable cannabis; or
(2) The equivalent amount of cannabis products or concentrates, as determined by the department of health and human services.
26 Tax on Meals and Rooms; Collection of Tax. Amend RSA 78-A:7, I(a)-(b) to read as follows:
I.(a) The operator shall either state the amount of the tax to each occupant, purchaser of a meal, or cannabis, or renter, or state that the tax is included in the price of the occupancy, meal, or gross rental receipts received. If the amount of the tax is not separately stated, the purchaser's or occupant's contract or receipt shall include the following language for meals or rooms:
"The tax on meals and rooms is included for the costs of meals and lodging only." If the amount of the tax is not separately stated on the purchaser's receipt for cannabis, the following language shall be included, “The tax on cannabis is included for the costs of cannabis only.”
(b) The operator shall demand and collect the tax from the occupant, purchaser, or renter. The occupant, purchaser, or renter shall pay the tax to the operator. If the tax is included in the price of the meal, occupancy, cannabis, or gross rental receipts received, upon request the operator shall state to the purchaser, occupant, or renter the amount of the tax.
27 Tax on Meals and Rooms; Disposition of Revenue. Amend the introductory paragraph in RSA 78-A:26, I to read as follows:
I. Beginning on July 1, 1995, and for each fiscal year thereafter, the department shall pay over all revenue, except revenues identified in paragraphs II [and], III, and V of this section, collected under this chapter to the state treasurer. On or before September 15 of each year, the department shall determine the cost of administration of this chapter for the fiscal year ending on the preceding June 30, and it shall notify the state treasurer of these costs by a report certified by them as to correctness. After deducting the cost of administration of the chapter from the total income, the state treasurer shall distribute the net income as follows:
28 New Paragraph; Tax on Meals and Rooms; Disposition of Revenue; Sales of Taxable Cannabis. Amend RSA 78-A:26 by inserting after paragraph IV the following new paragraph:
V. All revenue collected from the sales of taxable cannabis shall be deposited in the cannabis fund and distributed pursuant to RSA 318-F:24.
29 Assessment; Education Tax. Amend RSA 76:3 to read as follows:
76:3 Education Tax. Beginning July 1, 2005, and every fiscal year thereafter, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue of $363,000,000, less any amount credited to the education trust fund pursuant to RSA 318-F:25, when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the following fiscal year. The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.
30 Use of Cannabis for Therapeutic Purposes; Definition of Alternative Treatment Center. Amend RSA 126-X:1, I to read as follows:
I. "Alternative treatment center" means a domestic business corporation organized under RSA 293-A, a domestic limited liability company organized under RSA 304-C, or a not-for-profit [entity] voluntary corporation organized under RSA 292 that is registered under RSA 126-X:7 that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, sells, supplies, and dispenses cannabis, and related supplies and educational materials, to qualifying patients, designated caregivers, other alternative treatment centers, and visiting qualifying patients.
31 Use of Cannabis for Therapeutic Purposes; Departmental Administration. Amend RSA 126-X:7, IV(a)(4) to read as follows:
(4) The name, address, and date of birth of each principal officer and board member of the alternative treatment center. The board of directors, or board of managers as applicable, for the [nonprofit] alternative treatment center shall include at least one physician, advance practice registered nurse, or pharmacist licensed to practice in New Hampshire and at least one patient qualified to register as a qualifying patient. The majority of board members, or managers as applicable, shall be New Hampshire residents. A medical professional listed in this subparagraph may be a member of the alternative treatment center board or directors, or managers as applicable, but shall not maintain an ownership interest in the center.
32 Use of Cannabis for Therapeutic Purposes; Alternative Treatment Center Requirements. Amend RSA 126-X:8, I to read as follows:
I. An alternative treatment center shall be operated on a for profit or not-for-profit basis for the benefit of its patients. An alternative treatment center need not be recognized as a tax-exempt organization by the Internal Revenue Service.
33 New Paragraphs; Use of Cannabis for Therapeutic Purposes; Alternative Treatment Center Requirements. Amend RSA 126-X:8 by inserting after paragraph XVIII the following new paragraphs:
XIX. Except as otherwise provided in this chapter, an alternative treatment center shall be subject to RSA 293-A if organized as a domestic business corporation, RSA 304-C if organized as a domestic limited liability company, and RSA 292 if organized as a voluntary corporation.
XX. An alternative treatment center organized as a voluntary corporation under RSA 292 may, on or before December 31, 2024, convert from a voluntary corporation under RSA 292 to either a domestic business corporation organized under RSA 293-A or a limited liability company organized under RSA 304-C in any of the following ways:
(a) By adopting a plan of entity conversion in accordance with RSA 293-A or RSA 304-C, as applicable, that includes a provision prohibiting the sale of memberships or shares to a foreign corporation for a period of 3 years, provided that each such conversion shall be authorized by a vote of 2/3 of the members of the board of directors at a meeting duly called for the purpose or by unanimous written consent.
(b) By adopting a plan of merger in accordance with RSA 293-A that includes a provision prohibiting the sale of memberships or shares to a foreign corporation for a period of 3 years, for which the domestic business corporation shall be the surviving entity, provided that, such merger shall be authorized by a vote of 2/3 of the members of the board of directors of the alternative treatment center at a meeting duly called for the purpose or by unanimous written consent.
(c) By adopting a plan of merger in accordance with RSA 304-C that includes a provision prohibiting the sale of memberships or shares to a foreign corporation for a period of 3 years, for which the domestic limited liability company shall be the surviving entity, provided that, such merger shall be authorized by a vote of 2/3 of the members of the board of directors at a meeting duly called for the purpose or by unanimous written consent.
XXI. Articles of entity conversion or articles of merger, as applicable, shall be signed and submitted to the secretary of state pursuant to RSA 293-A or RSA 304-C, as applicable, and the secretary of state shall approve all such filings submitted pursuant to this section.
XXII. The secretary of state shall certify such articles of entity conversion or articles of merger and shall provide them to the department. Upon receipt, the department shall update the existing licenses held by the converted or merged alternative treatment center.
XXIII. For the purposes of converting or merging an alternative treatment center pursuant to this section, notwithstanding any provision in the articles of agreement or alternative treatment center license applications to the contrary, the members of an alternative treatment center's board of directors may determine that a plan of entity conversion or merger is consistent with its corporate charter, and such voluntary corporation may surrender its articles of agreement in connection with the plan of entity conversion or merger.
XXIV.(a) Any alternative treatment center choosing to convert or merge pursuant to this section shall obtain an independent fair market valuation of its total assets as of June 30, 2024. The valuation of the total assets of such alternative treatment center, if positive, shall be distributed to one or more charitable organizations solely for charitable purposes. The director of charitable trusts shall receive a copy of the valuation and may file any objection relating thereto with the court within 60 days. Except as set forth in this section and notwithstanding any other law to the contrary, no portion of the assets of such alternative treatment center after the conversion or merger, as applicable, shall be deemed to be charitable assets.
(b) Any alternative treatment center choosing to convert or merge pursuant to this section shall submit a copy of the plan of conversion or merger to the director of charitable trusts. The director may file an objection relating to the plan with the court within 60 days.
(c) Any alternative treatment center that has converted or merged pursuant to this section shall, on December 31, 2024 and thereafter for 2 years, annually file a letter with the director of charitable trusts certifying compliance with the requirements of RSA 126-X:8, XX.
34 Voluntary Corporations; Change of Name. Amend RSA 292:7 to read as follows:
292:7 Change of Name; Amending Articles.
I. Any corporation now or hereafter organized or registered in accordance with the provisions of this chapter, and any existing corporation which may have been so organized or registered, may change its name, increase or decrease its capital stock or membership certificates, merge with or acquire any other corporation formed pursuant to this chapter, or amend its articles of agreement, by a majority vote of such corporation's board of directors or trustees, at a meeting duly called for that purpose, and by recording a certified copy of such vote in the office of the secretary of state and in the office of the clerk of the town or city in this state which is its principal place of business. In the case of a foreign nonprofit corporation registered in New Hampshire, a copy of the amendment or plan of merger, certified by the proper officer of the state of incorporation, shall be filed with the secretary of state, together with the fee provided in RSA 292:5. The surviving corporation in a merger shall continue to have all the authority and powers vested in the merging corporations, including any powers previously conferred upon them by the legislature.
II. An alternative treatment center registered pursuant to RSA 126-X and organized under this chapter may, pursuant to RSA 126-X:8, XX, convert to either a domestic corporation organized under RSA 293-A or a limited liability company organized under to RSA 304-C, and may merge with a domestic business corporation organized under RSA 293-A or a limited liability company organized under RSA 304-C.
35 New Subparagraph; New Hampshire Business Corporations Act; Entity Conversion Authorized. Amend RSA 293-A:9.50 by inserting after subparagraph (f) the following new subparagraph:
(g) Alternative treatment centers registered pursuant to RSA 126-X and organized pursuant to RSA 292 may become a domestic corporation pursuant to a plan of conversion in accordance with RSA 126-X:8, XX and this subdivision. The alternative treatment center shall be deemed to be a domestic unincorporated entity for purposes of applying RSA 293-A:9.50 through RSA 293-A:9.56, except that approval of the conversion shall be as outlined in RSA 126-X:8, XX.
36 Limited Liability Companies; Statutory Conversions. Amend RSA 304-C:149, I to read as follows:
I. Any other business entity, including alternative treatment centers pursuant to RSA 126-X:8, XX, may make a statutory conversion of its business organization form to the limited liability company business organization form under this act by complying with the requirements of this section and with applicable law governing the other business entity. Approval of a conversion of an alternative treatment center pursuant to this paragraph shall be as outlined in RSA 126-X:8, XX.
37 New Paragraph; Limited Liability Companies; Statutory Conversions. Amend RSA 304-C:149 by inserting after paragraph VIII the following new paragraph:
IX. In the case of the conversion of an alternative treatment center registered under RSA 126-X and organized pursuant to RSA 292, such conversion shall be approved by the board of directors in accordance with RSA 126-X:8, XX.
I. The sum of $100,000 for the fiscal year ending June 30, 2025 is hereby appropriated to the department of safety, information and analysis center, drug monitoring initiative, for the purpose of collecting baseline data to be used in the reports required pursuant to RSA 318-F:24. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
II. The sum of $2,000,000 for the fiscal year ending June 30, 2025 is hereby appropriated to the cannabis commission established in RSA 318-F:8 for deposit into the cannabis fund established in RSA 318-F:24 for the administration of RSA 318-F. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
39 Repeal. RSA 318-B:1, X-a(g), relative to separation gins and sifters used or intended for use with cannabis, is repealed.
I. RSA 318-F:18, XI, as inserted by section 7 of this act, shall take effect upon certification by the attorney general of New Hampshire to the director of the office of legislative services and the secretary of state that the conduct allowed by that paragraph has become legal under the United States Code.
II. Section 38 of this act shall take effect June 30, 2025.
III. The remainder of this act shall take effect upon its passage.