CCD Facing Major Overhaul in Regulatory Enforcement

New Mexico’s cannabis market, which only recently opened up to recreational sales, may be facing a major overhaul in regulatory enforcement. As it stands, the state’s Cannabis Control Division (CCD) is under pressure to crack down on compliance violations, including illegal products making their way into the legal market. With the current state of enforcement stretched thin, regulators and industry advocates are pushing for stricter oversight to protect legitimate businesses and the public.

High Stakes

The state’s cannabis market is already saturated with licenses, creating challenges for regulators to monitor compliance effectively, especially in rural areas. Reports of black-market cannabis infiltrating licensed dispensaries have raised red flags. Advocates are calling for the CCD to gain more authority and resources to enforce regulations, which could include unannounced inspections, increased fines, or even the revocation of licenses for serious offenders.

Failing to tighten oversight could lead to consumer health risks, market destabilization, and a loss of trust in the legal framework. For businesses operating legally, it’s a frustrating situation as they contend with unfair competition from those cutting corners. For businesses that have “suddenly” decided to close up, may have dodged a bullet, for now.

Who Takes the Fall for Illegal Products?

So If illegal products are discovered in a dispensary, who gets arrested? accountability becomes a murky issue. In theory, everyone along the supply chain could be held responsible, but in practice, the enforcement usually targets those directly involved:

• Budtenders: Generally, they would not be the primary target unless they were directly involved in sourcing or knowingly selling unregulated products. However, if the CCD finds that budtenders were willfully complicit, they could face penalties.

• Trimmers and Grammers: These employees are typically further down the chain and are unlikely to be directly targeted unless they were part of an organized effort to bring in illegal product. However, if it’s proven that they knowingly handled illicit products, they could be implicated.

• Managers and Owners: The burden of proof usually falls on those in positions of authority, particularly those who handle inventory and compliance. If illegal products are found, the state is more likely to go after managers or owners, who are responsible for ensuring everything in their inventory is legal and properly logged in systems like BioTrack.

The BioTrack Defense: Shifting Blame

BioTrack, the state-mandated seed-to-sale tracking software, is designed to ensure every product is accounted for from cultivation to sale. But what’s stopping a crafty owner from deflecting blame; and vice-versa? Anyone that has used any version of BioTrack knows it is about as user friendly as walking on burning coals, so there is a ton of room for user error.

Here’s how that could play out:

• Blame Game: An unscrupulous owner could claim ignorance, suggesting that any discrepancies are the fault of a rogue manager who handles BioTrack entries. The owner might argue, “I don’t touch the system; that’s all on the manager.” And that might be true. Owners, are you checking everything your managers are doing in BioTrack?

That was the case for a lounge in downtown Albuquerque; the owner trusted a team to run the lounge, but allegedly found out they were using is to funnel in questionable products.

• CCD’s Response: The CCD, however, is likely aware of this tactic. Their investigations would need to include scrutinizing communication logs, employee records, and transaction histories in BioTrack. They would need to look for evidence of who had access to the system and whether the owner was directing the manager to act outside the law. It’s not as simple as shifting blame when the digital trail points back to you.

The Bottom Line

This shift might not come over night even if approved, but the writing is on the walls. Owners It is time to start taking the whole “Chain of Custody” thing a little more serious. Enable Pins to be required in Biotrack, don’t share Pins, and reset them regularly. Do not receive inventory or send it without verifying the counts, and avoid having any products physically on site if they are not in BioTrack including samples and display units. Just a prediction, your about to see less $10 carts and $40 Oz’s…