Companies cited for making edibles without permits
State reports more than $431M in sales since April 2022 legalization
State regulators have cited three edible cannabis producers in New Mexico for operating without permits, saying these were the first violations of this kind.
The state Environment Department’s Cannabis and Hemp Bureau issued the citations and will seek penalties against the producers in state District Court.
The companies face a $500 penalty for each violation. They are Minerva Canna in Bernalillo, Stoned Ape Canna Co. in Carlsbad and Buffalo Bud Farming in Silver City.
“New Mexico’s growing cannabis industry provides quality jobs to New Mexicans through the legal manufacturing and sale of adult-use edible products,” Cannabis and Hemp Bureau Chief Johnathan Gerhardt said in a statement. “Companies that operate outside of the law by producing cannabis edible products without a permit jeopardize public health and will face fines and legal action.”
The bureau regulates edible products, while the Cannabis Control Division oversees growing operations, Environment Department spokesman Matt Maez wrote in an email.
To date, the Cannabis Control Division has conducted 380 inspections on growers, found 1,966 violations and issued 10 citations, according to the agency’s website.
“Even though adult-use cannabis is legal in New Mexico, there are laws regulating cannabis from seed to consumption,” the website says.
State leaders agreed to legalize cannabis because of the tax revenue it would generate and the economic boost they said it would provide.
A spokesman for the state Taxation and Revenue Department wrote in an email confidentiality surrounding tax information prevents him from saying whether the three companies registered properly with the agency.
“Operating without a permit from other agencies wouldn’t necessarily mean they haven’t registered with us,” spokesman Charlie Moore wrote.
It’s imperative for cannabis businesses to register with the agency and comply with their tax obligations, Moore wrote, adding they also must be in good standing with all regulatory agencies to keep their licenses.
The industry has boomed since recreational cannabis was legalized in April 2022.
Adult-use sales, which are tracked separately from medical marijuana, ticked up to roughly $33 million per month during the summer from $27 million in December, according to data on the state’s online cannabis portal. At the end of July, adult-use sales totaled $431.2 million since recreational marijuana became legal.
The citations against the three edible cannabis manufacturers were among the state’s 284 actions in August added to Enforcement Watch, a website the Environment Department launched in April to improve transparency of its oversight.