New Mexico Regulators Revoke Licenses for 2 Cannabis Growers, Issue $1 Million Fines to Each

The New Mexico Regulation and Licensing Department has revoked licenses for two cannabis cultivators located just miles apart after suspecting mass diversion into the unregulated market, state officials announced Jan. 2.

Bliss Farm and Native American Agricultural Development Co., each located near Estancia, about 40 miles southeast of Albuquerque, were ordered to cease all commercial cultivation activity following multiple violations issued by the state’s Cannabis Control Division (CCD). These violations included the licensees growing cannabis that far exceeded their respective allowable plant limits, according to state officials.

As a result of the violations, CCD regulators have levied $1 million fines against each business. Once collected, the fines are to be deposited by law in the state’s Current School Fund.

“The illicit activity conducted at both of these farms undermines the good work that many cannabis businesses are doing across the state,” Clay Bailey, acting superintendent of the New Mexico Regulation and Licensing Department, said in a public statement. “The excessive amount of illegal cannabis plants and other serious violations demonstrates a blatant disregard for public health and safety, and for the law.”

In each case, CCD compliance officers found the cultivators to be growing several thousand plants more than they were licensed to grow, according to final decisions and orders issued to each licensee on Dec. 26.

In addition, state officials found that Bliss Farm did not use state-mandated track-and-trace software for a period of at least 17 months for approximately 30,000 plants on-site. This was one of 17 violations cited by state regulators against the grower.

While there are different licensing levels for the number of plants a cultivator can grow, in no event can a licensee be permitted to grow more than 20,000 mature plants at one time.

“The farm’s large number of cannabis plants on-site and evidence of a recent harvest without records entered into the track-and-trace system led the division to conclude the plants were transferred or sold illicitly,” according to the CCD.

In addition to plant limits and track-and-trace violations, Bliss Farm was also cited for unpermitted structures, unsanitary conditions of its production facility, and pests, among other violations.

At Native American Agricultural Development Co. (NAADC), improper security measures, no chain of custody procedures, and ill-maintained grounds with trash and pests throughout the facility were among eight violations issued by state regulators against the operator.

A state compliance officer said he estimated approximately 20,000 mature and 20,000 immature plants on-site during an inspection, while NAADC had only obtained a permit to grow 5,000 mature plants, according to the CCD.

Compliance officers also noticed signs of a recent harvest during a site inspection at NAADC, but no plants had ever been entered into the state’s mandatory track-and-track system, according to the CCD.

“Compliance within the industry is the CCD’s main priority, and our office is committed to ensuring New Mexicans have access to safe cannabis products,” CCD Director Todd Stevens said. “The team worked diligently on both of these cases to determine the appropriate action for violations at a scale we hadn’t seen before. The outcomes were justified under the law based on the egregious conduct of these individuals, and I hope this serves as a reminder to those who might be violating the laws and rules the state has put forth.”

Previous to these two cases, the CCD had revoked four licenses and levied roughly $300,000 in fines related to unlicensed activities.