Notice of Contemplated Disciplinary Action Against Tx3 Holdings

The New Mexico Cannabis Control Division (CCD) has issued a Notice of Contemplated Action against Tx3 Holdings, signaling potential disciplinary measures due to multiple regulatory violations. The CCD is considering revoking, suspending, or fining Tx3 Holdings’ cannabis license, among other possible penalties. Tx3 Holdings has 20 days to request a formal hearing; otherwise, the CCD will proceed with disciplinary action.

Violations Cited:

1. Health and Safety Failures: The company did not provide adequate hand-washing facilities in its production facility, failing to meet basic sanitary standards.

2. Inventory Management Issues: Significant discrepancies were found between physical cannabis inventory and records in the state-mandated BioTrack system.

3. Tracking System Violations: Tx3 Holdings did not properly tag and track its cannabis plants, resulting in a substantial amount of untracked product.

4. License Display Violation: The required license was not visibly displayed on the premises as mandated.

5. Lack of Digital Surveillance: The facility lacked any required digital surveillance system, a critical security measure for monitoring cannabis activity.

6. Security Alarm System Failure: The facility also did not have an operational security alarm system, violating security requirements.

7. Failure to Maintain Security Records: Due to the absence of a security system, the company could not comply with the requirement to maintain security system records.

8. Cluttered Facilities: The facility was cluttered with garbage, creating unsanitary conditions conducive to pests.

9. Cross-Contamination Risks: Production practices were found to be unsanitary, including storing cannabis flower and soil in ways that could lead to contamination.

Next Steps:

Tx3 Holdings must respond within 20 days to request a hearing to contest these allegations. Failure to do so will result in the CCD proceeding with the proposed penalties, which may include the suspension or revocation of their license. The company also has the option to seek a settlement conference to negotiate a potential compromise.

Update:

This supplier is one we have met with in the past. Rather than speculate, we reached out to hear their side of the story. My biggest concern? the health and safety of my employees, peers and friends i shared samples with.

These types of allegations can be damning, and the last thing i would want to do is contribute to a legitimate license holders downfall, who simply really did get inspected at the wrong time. One the one hand, there should never be a “wrong time”, on the other, i would be a fool to think i knew everything, or that anyone was beyond redemption.

So this report is ongoing, the supplier swears they are committed to not only contesting the aforementioned charges, but correcting and improving operating standards going forward.

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