8-16-2023 10:52pm

New Mexico Cannabis Control Division Considers Tighter Permit Requirements

Chris Edwards Editor

The Cannabis Control Division (CCD) regulates the cannabis industry in New Mexico. They are planning a public rule hearing on August 31 to discuss the proposed licensure changes increasing the requirements for licensure. This is on the hills of the first ordered closure of a dispensary by the state in New Mexico.

New Mexico’s cannabis regulators are proposing changes to the rules regarding licenses to sell cannabis. Among other changes, the proposal would require applicants to complete a cannabis education course.

If approved, the CCD could start requiring on-site inspections prior to licensing a cannabis business. They could also require proof of education on “the cannabis industry broadly, New Mexico laws and rules related to the cannabis industry, financial preparedness for operating within the cannabis industry” and other topics.

In addition to those changes, the CCD is also considering ending the rule that lets applicants apply for variances from the rules. The proposed changes come after some businesses have been accused of breaking the law and selling out-of-state cannabis.

An Albuquerque dispensary has lost its license to operate after New Mexico state regulators say they sold out-of-state cannabis and violated New Mexico state rules. Paradise Distro on Menaul no longer has its license after the shop was caught selling California-made products.

“In the interest of public safety, the department is holding true to the intent of the Cannabis Regulation Act and taking action upon licensees that have violated the law,”

NMRLD Superintendent Linda Trujillo said in a press release. “This revocation should serve as a warning to those selling or receiving out-of-state cannabis products. Our compliance officers are ramping up inspections and we will work to remove bad actors from within the New Mexico cannabis industry.”

The regulators say they inspected the Albuquerque-based shop and allege “numerous violations,” to include improper documenting of products and inaccurate sales data, including more than $56,000 in cash.

The dispensary was also selling out-of-state cannabis products, which were marked with California labels, NMRLD says. That’s a violation of New Mexico state law.

After the inspection results, the regulators say they held a hearing to try to connect with the licensee. But NMRLD says representatives of Paradise Distro never showed up. NMRLD also says they handed over information to law enforcement.

Along with the shutdown, the NMRLD said it notified law enforcement for a referral for a possible criminal investigation. This is the first state ordered closure since legalization began a year ago in New Mexico.

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