Bernie Ellis and Alto Llano Cannabis Face Regulatory Heat in New Mexico
The Cannabis Control Division (CCD) of New Mexico has issued a Notice of Contemplated Action (NCA) against Alto Llano Cannabis, operated by Bernie Ellis, a former public health epidemiologist and longtime cannabis advocate. The charges stem from alleged violations of the state’s Cannabis Regulation Act (CRA), including unlicensed cannabis distribution, improper record-keeping, and failure to comply with tracking requirements. The fallout could include penalties ranging from license revocation to fines.
At the center of the controversy is a bold move Ellis undertook on November 1, 2024: the distribution of 25 pounds of cannabis from his pickup truck in Dixon, New Mexico. Dubbed the "Great Ganja Giveaway," Ellis provided roughly 200 individuals with two ounces each, an action he claimed was legal under the circumstances but has since drawn the ire of regulators.
The Alleged Violations
Trafficking Cannabis Products
Alto Llano Cannabis allegedly distributed cannabis outside a licensed retail space and without a courier license. According to the CCD, this constitutes trafficking, as the transfers were not authorized under the company’s commercial micro-producer license.Operating Without Proper Permits
The CCD accuses Ellis of conducting retail activities without the necessary state and local permits. Additionally, Alto Llano Cannabis reportedly failed to remit taxes for the distributed cannabis.Failure to Comply with Track-and-Trace
The CCD’s inspection on November 5 revealed discrepancies in inventory. BioTrack records indicated cannabis was on-site at the licensed facility, yet inspectors found nothing. Accurate tracking is required by licensed operators regardless of license status.
The State's Evidence and Ellis' Defense
The CCD has amassed testimony, compliance reports, photographs, and inventory records as evidence. Ellis, however, insists his actions were a protest against an oversaturated market and unfair pricing practices. He revealed that dispensaries offered as little as $600–$700 per pound for high-quality flower, which they intended to sell for $4,500 per pound, or a little under $10 a gram, the average market price in some cities—a markup Ellis called exploitative.
Faced with declining prices and an expiring license, Ellis chose to distribute his crop to medical cannabis patients in need, asserting it was the best way to avoid black-market sales or legal jeopardy. “I helped many medical cannabis patients save money on their medicine,” he said.
This isn’t Ellis’ first legal clash over cannabis. In 2002, federal authorities raided his Tennessee farm for growing marijuana for AIDS and cancer patients. That incident sparked a seven-year legal battle, cementing his reputation as a fierce advocate for medical cannabis and federal reform.
What's Next?
Ellis has 20 days to contest the charges and request a formal hearing under the Uniform Licensing Act (ULA). Should he fail to respond, the CCD will impose penalties without further review. Ellis has stated that he plans to request a public hearing and hopes his case will inspire reform in how growers with surplus cannabis can offload product without turning to illegal markets.
A Broader Debate
Ellis’ case highlights deeper challenges within New Mexico’s cannabis industry. As federal prohibitions stifle interstate trade, local markets remain oversupplied, leaving small growers like Ellis at a disadvantage. In a statement, the CCD underscored its commitment to maintaining a safe and equitable industry but emphasized the importance of compliance with state laws.
Their are plenty of retail stores across New Mexico that could have penny purchased the product, maintaining the chain of custody. Now if there is a recall on the flower, there is no way of knowing who it went to.
While the outcome remains uncertain, Ellis’ latest battle continues his legacy as a provocative figure in the cannabis industry—a champion for patients and a critic of the status quo. Whether his protest resonates with regulators or results in penalties, it raises critical questions about fairness, pricing, and the future of cannabis reform.
Sources: CCD Notice of Contemplated Action, Taos News interviews with Bernie Ellis.
