New Mexico Cannabis Control Division Takes Action Against Blue Whale Enterprises Inc. (aka Cookies)
Albuquerque, NM – The Cannabis Control Division (CCD) of New Mexico's Regulation and Licensing Department has issued a Notice of Contemplated Action against Blue Whale Enterprises Inc., also known as Cookies LLC. The notice, identified as Case No. 2024-001, outlines several alleged violations of state cannabis regulations that could lead to severe disciplinary actions against the company’s licenses (CCD-2023-0214, CCD-2023-0393, and CCD-VICE-2024-0008).
Alleged Violations:
1. Protection of Underage Persons:
According to NMSA 1978, § 26-2C-14, licensees must ensure no person under twenty-one consumes cannabis on their premises. During its Grand Opening event, Blue Whale allegedly failed to check for identification, resulting in a minor consuming cannabis without a valid qualified patient card. This incident was reported by the Albuquerque Journal.
2. Engaging in Prohibited Practices:
As per 16.8.3.8(B)(8)(9) NMAC, licensees are prohibited from promoting overconsumption of cannabis or depicting its consumption. Blue Whale reportedly posted images on social media showing individuals consuming large amounts of cannabis at the event, thereby violating this rule.
3. Unauthorized Consumption of Cannabis:
Under 16.8.2.8(D) NMAC, licensees must prohibit cannabis consumption on their premises unless approved as a cannabis consumption area by the Division. Blue Whale allegedly allowed and promoted public cannabis consumption at its Grand Opening event without such approval.
4. Unlawful Co-Mingling of Alcoholic Beverages and Cannabis:
According to 16.8.2.8(F) NMAC and 26-2C-6(I), (J) NMSA 1978, public consumption of alcohol requires a proper liquor license. Blue Whale is accused of permitting the consumption of alcohol on its premises during the event without the necessary licenses.
5. Violation of Cannabis Product Display Requirements:
Per 16.8.2.40(F) NMAC, cannabis and cannabis products must only be displayed in the retail area of the licensed premises. Blue Whale is alleged to have displayed such products in the parking lot during the event.
Evidence Against Blue Whale Enterprises:
The CCD has gathered substantial evidence supporting these allegations, including:
Photographic evidence collected during inspections.
Inspection checklists created by CCD staff.
Testimonies from CCD investigators and witnesses.
A news article by the Albuquerque Journal.
Publicly available social media posts by the company and event attendees.
Depositions from individuals present during the Grand Opening event.
Date of birth records of the minor involved in the event.
Next Steps for Blue Whale Enterprises:
Blue Whale Enterprises Inc. has twenty days from the service of this notice to request a formal hearing to contest the allegations. If no hearing is requested, the CCD will proceed with disciplinary actions, which may include revoking or suspending licenses, issuing fines, or other penalties. These actions will be final and not subject to judicial review if unchallenged.
The company also has the option to seek a settlement conference to negotiate a potential compromise on the penalties.
