New Mexico Regulator Revokes Cannabis Retailer’s License for Out-of-State Sales

ALBUQUERQUE, In a groundbreaking move, the New Mexico Regulation and Licensing Department took decisive action last week by revoking the license of Paradise Distro LLC, a cannabis retailer based in Albuquerque. The license was rescinded due to the company’s sale of cannabis products originating from California, in violation of state regulations. This marks the first instance of a cannabis business license being revoked in the state.

The New Mexico Regulation and Licensing Department, through its Cannabis Control Division, conducted thorough inspections of Paradise Distro LLC and uncovered multiple infractions. Among the violations discovered were the possession, receipt, and sale of cannabis products that were not locally sourced, featuring California stampings. In addition, the retailer was found to have displayed edibles and concentrates that were not properly documented on the required shipping manifests. Furthermore, Paradise Distro LLC was found to have inaccurately reported sales data, with an omission of over $56,000 in cash and an additional $8,338 in funds that were recorded in the licensee’s third-party point-of-sale system but not in BioTrack, the state’s mandated track and trace system.

Superintendent Linda Trujillo of the Regulation and Licensing Department emphasized the importance of public safety in their decision. In an official statement, she stated, “The revocation should serve as a warning to those selling or receiving out-of-state cannabis products. In the interest of public safety, the department is holding true to the intent of the Cannabis Regulation Act and taking action upon licensees that have violated the law.” Superintendent Trujillo further expressed the department’s commitment to enhancing inspections and weeding out non-compliant entities within New Mexico’s cannabis industry.

Paradise Distro LLC representatives chose not to attend an evidentiary hearing held in April, which contributed to the recommendation to revoke their license. The final decision to revoke the license was signed on June 30, following careful consideration of the evidence presented.

The revocation of Paradise Distro LLC’s license highlights the regulatory bodies’ dedication to enforcing compliance with the Cannabis Regulation Act and ensuring the integrity of the state’s burgeoning cannabis market. This development serves as a reminder to industry participants of the importance of adhering to local regulations and sourcing cannabis products responsibly within New Mexico’s boundaries.

Moving forward, New Mexico’s cannabis industry can anticipate heightened scrutiny from compliance officers as the state continues to prioritize public safety and maintain a robust regulatory framework.