Follow The Money: CCD Issues 4.13M in Fines Since 2022
Since 2022, the New Mexico Cannabis Control Division (CCD) has ramped up its enforcement efforts, issuing 69 enforcement notices and imposing over $4.13 million in fines. The division has also been actively publishing enforcement actions, and most recently advisory letters on there website, shedding light on the compliance landscape of the state’s fastest growing industry.
Recent Advisory Letters (2024)
In December 2024, the CCD issued three advisory letters to Mesilla Valley Extracts, Alter Ego Cultivation, and OCC ABQ LLC (Oasis), to proactively address minor infractions without escalating to formal disciplinary actions.
All three letters recommended compliance with labeling and packaging regulations.
The CCD emphasized reviewing the approved THC-awareness logo guidance available online.
While no formal actions were taken, the letters serve as warnings to prevent potential disciplinary measures in the future.
Enforcement Highlights
Major Settlements
NNK Equity LLC (August 2024): The CCD issued a default order citing 11 violations, imposing a staggering $1,000,000 fine—the highest penalty of the year.
Maggie’s Farms (October 2024): Multiple licenses were revoked, and the business faced $80,000 in fines due to violations identified in a Notice of Contemplated Action (NCA). This marked a significant enforcement action targeting agricultural cannabis operations.
Track-and-Trace Failures
Businesses such as the Green Room and PurLife faced enforcement for improper inventory tracking, vault access issues, and failure to adhere to standard operating procedures. These violations resulted in fines ranging from $4,000 to $8,000, showing that meticulous record-keeping is non-negotiable.
Unlicensed Activity
Golden Roots (May 2024): A dramatic case involving 53 days of unlicensed activity led to a hefty $530,000 fine, illustrating the risks of non-compliance with operational licensing requirements.
Large-Scale Violations
Bliss Farm and Native American Agricultural Development Co. (2023): Both businesses faced $1,000,000 fines for untracked plants, with Bliss Farm cited for 30,000 untracked plants and Native American Agricultural Development Co. for 20,000. These cases emphasize the critical importance of adhering to traceability protocols.
Enforcement Breakdown (2022-2024)
The CCD's enforcement notices fall into several categories:
37 Notices of Contemplated Action (NCA): The most common enforcement mechanism, signaling potential regulatory violations that require immediate corrective action.
17 Settlement Agreements: Alternative resolutions that typically include fines and compliance requirements.
6 Final Decisions and Orders and 4 Final Settlement Agreements: Indicating severe penalties following conclusive investigations.
Default Orders and Recall Orders: Applied in rare, escalated cases.
Year-by-Year Analysis
2024:
34 notices issued, making it the most active enforcement year.
Total fines reached $2.1 million, driven by large settlements like the $1 million fine for NNK Equity LLC.
2023:
33 notices published, with fines totaling $2 million.
High-profile cases included Bliss Farm and Native American Agricultural Development Co., both fined $1 million for untracked plants.
2022:
Just 2 notices issued, as the regulatory framework was still developing.
Total fines were $30,000.
Balancing Growth and Regulation
New Mexico’s cannabis industry is experiencing a period of rapid growth and heightened regulatory oversight. With over $4.13 million in fines levied since 2022 and dozens of businesses facing enforcement actions, the CCD has made it clear that non-compliance will not be tolerated. How much of these fines have been have been collected is another question; and if they have, where did it go?
