Mar. 31—New Mexico's cannabis industry — which officials say has matched initial revenue projections but continues to experience significant growing pains — celebrates its first birthday Saturday.
April 1, however, is no joke for the fledgling business that now numbers more than 600 retail stores and brought in about $40 million in its first 11 months of operation (March figures are not yet available).
However, despite the strong start, cannabis has faced challenges — including a reported invasion of marijuana produced out of state and difficulties on the regulatory front — that many observers say make it difficult to chart exactly what may happen next, particularly for smaller retailers who jumped into the industry when the legalization of recreational use became official.
One uncertainty is the continued search for a permanent director to run the state Cannabis Control Division, which oversees the industry and has had three leaders — Kristen Thomson, Carolina Barrera and Andrew Vallejos — since June.
Linda Trujillo, superintendent of the state Regulation and Licensing Department, said the division is conducting interviews for the director position. She said part of the challenge in making the right hire is finding someone who has "regulatory experience in an industry that has not been regulated" in the state.
She said the division has good applicants for the job and is in the process of reviewing and interviewing them.
In the meantime, Trujillo will serve as interim director. She said her department plans to set more stringent guidelines for cannabis packaging and ensure retailers are not selling out-of-state product, which is against state law.
"The illicit market includes licensees selling product from out of state," she said in an interview this week.
To date, her agency has received nearly 200 complaints about the industry, which range from gripes about not liking a particular product to concerns some retailers are selling out-of-state marijuana.
"We don't have evidence of it," Trujillo said. "We are taking note that there are people in communities telling us, but we need to verify that."
She said her agency will turn any evidence of out-of-state product sales over to the state Department of Public Safety and possibly local law enforcement agencies to investigate as a crime.
Duke Rodriguez, president and CEO of New Mexico Top Organics-Ultra Health, said in an interview this week his company has been offered out-of-state cannabis at lower prices and it would be "naive" to think some retailers are not selling it.