New Mexico
New Mexico cannabis industry braces for federal rescheduling
ALBUQUERQUE, N.M. – In a historic announcement, President Joe Biden says it is time for the feds to rethink how dangerous marijuana really is. His administration is downgrading cannabis in its drug classification.
It’s a monumental decision that will impact many areas of the legal marijuana industry, including in New Mexico.
“It’s a historic, monumental policy shift and how the federal government treats cannabis. But it’s kind of bittersweet, too, it doesn’t go far enough,” said Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce.
Lewinger says it’s about time the feds catch up with the American people.
“We know that most Americans today want cannabis to be legal, to be regulated, similar to alcohol or tobacco,” said Lewinger.
He says Biden’s plan to reschedule marijuana isn’t doing that.
“It’s kind of a giveaway to the Big Pharma,” Lewinger said.
Marijuana, or cannabis, is currently a Schedule 1 drug. It’s considered the worst of the worst, alongside other drugs like heroin.
The Biden administration wants to reclassify it as a Schedule 3 drug, meaning it’s still concerning, but there are some recognizable medical benefits.
“Schedule 3 includes pharmaceuticals, like Klonopin, like Tylenol with codeine, so still highly regulated pharmaceutical products. We do know that there will be immediate relief in the form of cannabis businesses not having to deal with 280E, which is an IRS tax code that applies only to Schedule 1 substances. What we don’t know is whether or not being regulated by the FDA and the DEA would incur additional costs,” said Lewinger.
Lewinger admits this is uncharted territory for the cannabis industry. A spokesperson with the Cannabis Control Division says they are just beginning to digest the draft rule, and figuring out how this will impact New Mexico’s cannabis industry.
But Lewinger says there are clues about what happens to Schedule 3 drugs.
“It presents a pharmaceutical model for states that have legalized cannabis,” Lewinger said. “I think that having to have a prescription for cannabis may not be off the table. I think that there’s going to be lots of companies rushing to develop IP to get trademarks on different cannabinoids.”
He predicts the change could also allow New Mexico to export cannabis products, potentially providing another boost to the booming industry.
“It’s a really exciting time for our industry in New Mexico right now,” said Lewinger.
Recreational sales topped $38 million last month, just shy of a record $39 million the month before.
Lewinger says the rescheduling process could take years to complete, so don’t expect any noticeable industry changes anytime soon. He says don’t expect any more major shifts for a while.
“My feeling is that shifting from Schedule 1 to Schedule 3 is actually going to put off real descheduling for another decade or even longer,” said Lewinger.
SANTA FE, N.M. — The New Mexico Department of Justice is now suing online prediction market platform, Kalshi, after four of the state’s tribes sued the platform in May.
The NMDOJ, led by state Attorney General Raul Torrez, is alleging Kalshi unlawfully offers online sports betting in the state by allowing people to place wagers on sporting events on its online platform.
In New Mexico, sports betting is legal but is limited to in-person wagering at tribal casinos. The NMDOJ cited this framework as the basis for suing Kalshi, accusing the platform of trying to skirt state gaming laws and regulations.
“New Mexico has a longstanding and carefully balanced system for regulating gaming that protects consumers, ensures accountability and respects tribal sovereignty,” Torrez said. “The only lawful gaming in New Mexico operates either under tribal-state gaming compacts or under strict state regulations to ensure honest gaming free from corruption and licenses gaming operators only after they explain how they plan to address compulsive gambling. Kalshi has ignored that framework entirely while offering online sports betting within the state.
“We are filing this lawsuit to protect the integrity of our laws, our regulatory system and, most importantly, consumers.”
The NMDOJ accused Kalshi of using “event contracts” to effectively make online sports betting happen in the state. They alleged these contracts function in the same way as traditional sports bets and operate in the state without any gaming license.
NMDOJ also pointed out Kalshi operates with a minimum betting age of 18 years old, three years younger than the minimum age at the state’s tribal casinos.
In May, the Sandia, Isleta and Pojoaque Pueblos and the Mescalero Apache Tribe filed their own lawsuit, pointing out the minimum age and alleging people are using it on their lands in violation of their exclusive rights to offer betting services.
In its lawsuit, NMDOJ is looking to halt Kalshi’s operations in New Mexico and prevent the company from continuing to offer sports-related wagering through its platform.
KOB has yet to receive a statement from Kalshi on either lawsuit.
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ALBUQUERQUE, N.M. – A local business owner estimates he suffered about $1 million in damages as the result of yet another fire at a South Valley recycling plant.
Town Recycling on Broadway Blvd. SE has witnessed two fires in a span of less than two weeks with the first happening May 23rd and the second occurring Tuesday of this week.
Khalil Samaha, who owns Samcar, Inc. and Cedar’s Construction next door, says his businesses escaped without serious damage from the first fire, but the second one led to the loss of his main building, inventory he sells including trucks, construction equipment, computers, records, and much more.
“It’s a total mess. Everything is on the ground with water and insulation. It’s a total loss,” he said.
He gave KOB 4 a tour of his damaged property Wednesday and says that county officials have condemned the main office and won’t let him back inside.
“You can see all the glass is popped,” he said pointing to the windows. “I don’t know if the firefighters broke them or they exploded.”
A spokesperson for Bernalillo County Fire and Rescue issued a statement saying that, based on witness accounts, both fires may have started in a “bale of cardboard” at the recycling facility.
As of Wednesday evening, Broadway between Prosperity and Rio Bravo remained closed.
Samaha says firefighters attempted to battle the second fire from a different area than the first and the wind may have made conditions tougher.
“This time, the wind didn’t help,” he said. “So, it was blowing in my direction and took the building and some equipment in the back.”
Having seen two fires at the neighboring recycling facility in a span of about 11 days, he wonders if this will finally be the end of it.
“I hope it’s the last time. But, worried? Yes, we are worried,” he said. “We are close to them, and the materials are close to the fence. We share the fence together, so it’s always in the back of your mind.”
And now he lives with the memory of how quickly everything can change – just like it did earlier this week.
“It was very quick. From the smoke to the flame to the fire, it was very, very quick.”
A representative of Town Recycling declined our request for an interview.
LAS VEGAS, N.M. – New Mexico Highlands University President Niel Woolf has sued the school, claiming leaders pushed him to redirect a $600,000 contract to a chairman’s friend.
Woolf filed the lawsuit after the university placed him on administrative leave at the beginning of May.
He says Board of Regents Chair Frank Sanchez told him to cancel a $600,000 agreement with an out-of-state contractor and give it to a local contractor.
Woolf says that company is led by a friend of both Sanchez and his brother-in-law, Sen. Pete Campos, who represents Las Vegas.
In the lawsuit, Woolf says Sanchez told him directing the funds to his friend would “go a long way towards securing money for the University from Senator Campos,” said Woolf.
Woolf is seeking damages and attorney’s fees under the New Mexico Whistleblower Protection Act.
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