What’s generating complaints in New Mexico’s cannabis industry?

SANTA FE, N.M. (KRQE) – As one of many state’s latest industries, you would possibly count on that hashish companies and the regulators surrounding them are sure to hit a tough patch or two as issues roll out. Multiple hundred retailers have now opened retailers statewide, and in the meantime, the state’s regulating physique continues to be navigating the comparatively new state regulation.

With that in thoughts, KRQE Information 13 sought to seek out out if anybody is complaining in regards to the trade. And if they’re, what’s it that they’re complaining about? A latest public data request sheds gentle on a few of these complaints, a few of that are directed at hashish companies, not regulators.

Because the state’s sole issuer of hashish enterprise licenses and the important thing regulatory physique for the trade, the Hashish Management Division (CCD) has been on the middle of many hashish discussions. And regardless of some criticism by would-be hashish retailers in regards to the licensing course of, the division has apparently solely acquired a handful of official complaints during the last 12 months.

The CCD was created in April 2021, with the legalization of leisure hashish in New Mexico. It was arrange as a brand new department inside the state’s Regulation and Licensing Division, which oversees every thing from alcohol gross sales to building.

Tasked with trade rulemaking, issuing gross sales and manufacturing licenses, and dealing to “promote and encourage full participation within the hashish trade,” the CCD has had its fingers full for the final 12 months. KRQE Information 13 beforehand reported that restricted sources and staffing have meant that some individuals making use of to work within the trade had been in prolonged durations of limbo. Others have stated they’ve had an excellent expertise working with the CCD.

After contacting dozens of license candidates, KRQE Information 13 heard from candidates each complaining in regards to the CCD and praising it. However regardless of the entire casual complaints, the CCD has solely acquired round two dozen formal complaints because it was created.

To search out out what persons are complaining about, KRQE Information 13 submitted a public data request for each grievance the CCD has acquired from its begin, up via April 18, 2022. Right here’s what we discovered.

Allegations of improper gross sales

A number of the formal complaints boil all the way down to allegations in opposition to hashish license holders — dispensaries, producers, and many others. These complaints allege that some retailers aren’t following the state’s hashish legal guidelines and guidelines.

For instance, one grievance alleges that somebody was manufacturing cannabis-infused Rice Krispies and promoting them with no license. One other complainant says that a few of the merchandise in a single hashish store “don’t even look legit.”

In one other grievance, somebody alleged that there was no labeling on pre-rolled joints being offered at a dispensary. The CCD adopted up in six days and the retailer is now in compliance, data present.

Clients say they’re being charged hashish tax on medical merchandise

A number of the formal complaints allege that sure hashish retailers are charging medical sufferers tax on their purchases. State regulation says that shouldn’t be occurring.

In line with the Hashish Regulation Act, any medical hashish merchandise offered to a professional affected person is exempt from the state’s hashish excise tax. As of April 2022, greater than 134,000 persons are enrolled as medical hashish sufferers, in line with the state’s Division of Well being.

To make sure that these sufferers have entry to hashish, the state additionally requires that hashish retailers reserve a portion of their stock for medical use. Retailers are required to “make affordable efforts” to promote 25% of their month-to-month gross sales to medical sufferers.

Break-ins at retail retailers

A number of of the formal complaints are experiences of burglaries at hashish retailers. One grievance alleges that criminals minimize energy to 1 hashish store, broke in, and stole a whole bunch of merchandise earlier than police arrived.

Earlier than hashish was legalized in New Mexico, some individuals predicted an increase in crime from the brand new trade. KRQE Information 13 explored the difficulty partially by chatting with now-former Douglas County, Colorado District Lawyer George Brauchler. And the Albuquerque Police Division (APD) has stated they’re conscious hashish shops could possibly be targets for theft.

“We will’t predict with certainty whether or not companies can be focused for theft, however we’re cognizant that they could possibly be targets,” Rebecca Atkins, an APD spokeswoman, beforehand advised KRQE Information 13. “Chief Medina has additionally heard from police in different jurisdictions who warn in regards to the potential for elevated violence associated to money transactions and robberies.”

The CCD requires hashish retailers to have safety measures to verify hashish doesn’t fall into the mistaken fingers. All retailers are required to have an alarm system and digital video surveillance, amongst different necessities.

Concern for youths

A couple of of the formal complaints allege that hashish merchandise have fallen into the fingers of individuals below the age of 18.

One grievance by a guardian states that they discovered a container of edibles whereas cleansing their 16-year-old’s room. One other grievance by a guardian alleges {that a} 13-year-old had hashish.

As of Could 18, the CCD was nonetheless trying into a few of these points. For instance, the CCD contacted the guardian of the 13-year-old, however was ready for extra data from the guardian to determine find out how to deal with the grievance.

Unlawful crops

One grievance alleges that a person has 200 crops with out the correct license from CCD. As per state regulation, people with out licenses from the CCD can develop as much as six mature crops.

Data present that the CCD tried twice to contact the one that made the grievance. They had been unable to contact them, so that they weren’t capable of examine additional.

How CCD handles complaints

The CCD takes complaints on their web site. After receiving a grievance, it’s reviewed to verify it addresses a subject the CCD has regulatory authority for, in line with Bernice Geiger, the general public data officer and advertising director for the Regulation and Licensing Division.

“CCD takes complaints significantly,” Geiger advised KRQE Information 13 in an electronic mail. “You will need to perceive that the Division solely has authority over companies licensed by the division.”

So, if the grievance is concerning a licensee or one thing else inside the CCD’s scope, it will get investigated. And if it’s a legitimate grievance in opposition to a hashish retailer or different license holder, they’re given a discover and 5 days to let the CCD know the way they’re going to repair the issue. Lastly, the CCD will observe up with the licensee to verify they observe via, in line with Geiger.

However there are some complaints the CCD can’t sort out.

“We aren’t a regulation enforcement company and wouldn’t have enforcement authority over felony actions of the illicit market,” Geiger says. “Likewise, the CCD doesn’t have jurisdiction or authority regarding points similar to odors coming from hashish manufacturing or processing amenities, native code violations, complaints in opposition to private cultivation and consumption, and many others.”