New Mexico Revokes Retail Permit for Dispensary Selling California Cannabis

It's the first such enforcement action by New Mexico regulators since the adult-use market launched last year.

New Mexico authorities revoked the business permit of Albuquerque cannabis dispensary Paradise Distro for selling marijuana shipped in from California, in violation of both state and federal law.

Paradise Distro was found to be selling cannabis products with California-made markings, displaying edibles and concentrates that weren’t present on shipping manifests, and inaccurately reporting almost $65,000 in sales, according to a press release from the New Mexico Regulation and Licensing Department.

Following an evidentiary hearing on April 27 – which no one from Paradise Distro attended – the NMRLD issued its final decision on Thursday and ordered the shop to cease sales.

“In the interest of public safety, the department is holding true to the intent of the Cannabis Regulation Act and taking action upon licensees that have violated the law,” NMRLD Superintendent Linda Trujillo said in the release. “This revocation should serve as a warning to those selling or receiving out-of-state cannabis products. Our compliance officers are ramping up inspections and we will work to remove bad actors from within the New Mexico cannabis industry.”

Paradise Distro couldn’t be reached for comment by the Associated Press, but illegal interstate trafficking has been an issue for years with legal California cannabis.

It’s also a reason why many industry advocates have been pushing for legal channels for interstate cannabis commerce, which remains elusive despite state laws authorizing such developments by the legislatures in California, Oregon and Washington state.

The New Mexico license revocation is the first such action by the NMRLD since the state’s recreational cannabis market launched in April last year, and which saw just over $300 million in sales for its first 12 months.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.


One comment

  • Mark Praught

    July 18, 2023 at 11:17 am

    Hello John.
    We are a small organic outdoor grower, and in this glutted market (of 2023), we don’t need to be swamped by dirt-cheap cannabis from out of state to depress our NM state market. I’m glad this happened as a warning to others. If somebody wants CA cannabis go to California and buy it there.
    Mark

    Reply

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