Are some being left out of New Mexico’s cannabis industry?

ALBUQUERQUE, N.M. (KRQE) – You will have already heard in regards to the thousands and thousands of {dollars} price of leisure hashish bought over the previous couple of weeks. The newest studies put the statewide leisure whole at over $6 million since gross sales started at the beginning of the month. However, whereas some have been in a position to money in, different would-be enterprise house owners are nonetheless wading via the regulatory course of.

April 1 — the primary day of authorized leisure hashish gross sales — introduced near $2 million in gross sales statewide, in keeping with the Hashish Management Division (CCD). KRQE Information 13 reported in regards to the pleasure surrounding opening day. The Governor even marked the event by visiting an Albuquerque pot store the place she didn’t buy something herself however spoke to a number of clients in regards to the new business.

On day two of gross sales, there was just a little greater than $1 million in transactions statewide, CCD studies present. On day three, gross sales shrank to a bit over $550,000.

Now the most recent out there report exhibits that from April 4 to April 7, gross sales averaged about $651,000 per day. The one-week whole for the state (April 1-7) handed $6 million — however the numbers present New Mexico clients could also be over the preliminary hype. And a few candidates are annoyed that they’re nonetheless watching from the sidelines.

KRQE Information 13 spoke with a number of would-be retailers and licensees who’re nonetheless ready on their licensing approval. They have been disregarded of the opening week, however they’re hopeful they’ll get to hitch in on the gross sales quickly.

“I believe there’s nonetheless that pleasure [with sales] however for me, it’s been frustration,” one would-be retailer says. The potential retailer, who didn’t need to be recognized, additionally added, “I’m not feeling good proper now. And all I’m doing is gathering all my papers and documenting all the things.”

The applicant has been attempting to get via the method for months now. By a public data request, KRQE Information 13 found that the applicant initially started submitting paperwork to the CCD again within the fall of 2021, months earlier than the applicant expressed any issues to KRQE Information 13.

Finishing and submitting that paperwork, after all, isn’t precisely easy. KRQE Information 13 beforehand reported on the challenges that would-be license holders must undergo. Hashish producers and growers, for instance, must undergo a background verify, present a social and financial fairness plan, give proof of age, present a premises diagram, submit a water and power use plan, and show they’ve water rights to develop.

Any of these might present a hang-up within the licensure course of. The would-be applicant who’s been attempting to get authorised since final 12 months, says getting water rights has been significantly difficult. And whereas that’s no fault of the CCD, the applicant says they nonetheless really feel that the division has been lower than absolutely clear in regards to the standing of their utility. And this would-be retailer isn’t alone.

“Me and my accomplice utilized in August of final 12 months. We tried to use shortly simply because we knew there was gonna be like a bottleneck impact,” explains Wilfredo Rivera, who’s attempting to earn a hashish microbusiness license in Albuquerque. “Our challenge now’s that we despatched in all of the paperwork. We did all the things the best manner since final 12 months, and we’re nonetheless paying for our facility that’s not producing any revenue.”

KRQE Information 13 spoke to Heather Brewer, the spokesperson for the CCD, broadly about issues with processing functions. When requested to deal with candidates who really feel like they haven’t been in a position to contact the division about their functions, she stated the division takes communication significantly.

“It’s by no means something that we need to hear as a division whose mission is to assist a thriving adult-use hashish business in New Mexico, that there are people attempting to get within the business who don’t really feel like they’re getting served,” Brewer advised KRQE Information 13. “So, it’s positively a priority to us and one thing that we need to take significantly and study extra about from people who’re having issues.”

Whereas some candidates really feel disregarded, others have gotten their approval. Metropolis Council member and hashish business marketing consultant Pat Davis says that in some circumstances, the CCD isn’t guilty — it’s a scarcity of expertise amongst candidates.

“Though the method was gradual to arrange a brand new division and new rulemaking early on, the rule revisions and variations RLD [New Mexico Regulation & Licensing Department, the CCD’s parent organization] has put in place have made it in order that we’re getting purchasers via to licensing in some circumstances in beneath 30 days after DPS background checks are full,” Davis advised KRQE Information 13 in an electronic mail.

“The issue, in our expertise, shouldn’t be with RLD. Their course of is fairly easy now. The bigger challenge includes candidates who set off to begin a enterprise with out understanding the principles and necessities or attempting to drive a non-compliant location right into a license.  We all know how difficult regulatory companies could be however we’ve additionally seen that most people who’re complaining about RLD are complaining as a result of they didn’t submit all the required paperwork upfront.”

However Heather Brewer from the CCD does admit that the division is restricted by components akin to a comparatively small employees.

“The underside line is: This can be a brand-new system and a brand-new business that has been created from scratch in lower than a 12 months. And even at our highest level of staffing within the Hashish Management division, we have now solely had 11 folks to deal with all enforcement, licensing, all authorized, all all the things,” she says.

The statewide rollout of hashish licenses hasn’t been fully easy given the complexities of the business and the “from-scratch” and low-staffed licensing division. In January of 2022, KRQE Information 13 explored the numbers and found that of about 360 candidates for hashish licenses of varied sorts, simply 53 had been authorised on the time. KRQE Information 13 remains to be ready to listen to from the CCD about up to date numbers.

In fact, many individuals have gotten approval. And a few say they’ve had optimistic experiences with the CCD.

“I truly had a terrific expertise,” says Sam Holdsworth. “I obtained my producer license a couple of months in the past after going via the pretty concerned course of. It wasn’t good, however each time I hit a roadblock, I known as or emailed and invariably obtained a response. There have been a couple of inside data glitches that they sorted out. All advised, for a first-time course of, brief staffing, COVID-19 workplace disruptions, and so forth., I used to be very pleasantly stunned that all of it labored out in addition to it did, no less than for me.”

Alyssa Pearson with Dr. Inexperienced Organics says it comes all the way down to assets: “The CCD is egregiously underfunded. They’ve had issues with staffing,” Pearson says. “However each time I come up with any individual on the CCD, they’re tremendously useful. I really feel like they’re on my aspect.”

That being stated, Pearson gave an instance of how a small license requirement can show to be a holdup or a problem. Of their preliminary utility, they have been advised they wanted fingerprints for the Division of Public Security authorization type, however getting these ended up taking longer than anticipated.

“We ended up going via like a month-long ordeal with the Division of Public Security to get these background checks finalized, together with considered one of my enterprise companions having to drive to El Paso as a result of they required us to have an ink fingerprint stamp,” Pearson says. “There was just one place on the town who did it. They weren’t open on a Friday, so we needed to drive from Las Cruces to El Paso to get that executed.”

So, a standard theme, even amongst those that have gotten their licenses is that the method is difficult and takes time.

Brewer from the CCD did level out that the division has executed work to attempt to streamline the applying course of. For instance, the division’s web site gives checklists for candidates, a hyperlink to a YouTube video explaining water rights, and a searchable database so candidates can verify on the standing of their licenses.

As for among the candidates nonetheless ready on approval, they are saying they’re seeing some progress. They may not have their licenses but, however there’s nonetheless a way it should occur quickly. And so they’re optimistic that there’s nonetheless enterprise available within the coming years.

“I really feel that there’s nonetheless going to be a number of alternative,” the would-be retailer says. “There’s going to be years of alternative.”

*Editor’s Notice: On this story, we use the time period “would-be retailer” to point somebody who’s trying to enter the hashish business for revenue.