New Mexico Governor Michelle Lujan Grisham expressed frustration with Department of Homeland Security Secretary Alejandro Mayorkas in a recent phone call with an unidentified federal official, saying she was “offended” by his response to seizures of weed from licensed marijuana companies. 

At least a dozen seizures of regulated cannabis by Customs and Border Protection (CBP) agents have been reported at immigration checkpoints in southern New Mexico in recent weeks, despite the 2021 legalization of recreational marijuana in the state. Under federal law, CBD is authorized to establish immigration checkpoints within 100 miles of the border with Mexico.

Last week, Lujan Grisham’s director of communications Michael Coleman reported that the governor recently raised the issue with Mayorkas to help protect New Mexico’s regulated cannabis industry, which has already generated more than $1 billion in sales.

“During the conversation, the governor noted that industry operators in border states where cannabis is legal appear to be at greater risk of scrutiny and arrest by U.S. Customs and Border Patrol agents than those in non-border states that have legalized cannabis,” Coleman wrote in an email statement about the encounter between the two officials, according to a report from KRQE television news. 

“Secretary Mayorkas assured the governor that federal policies with respect to legalized cannabis have not changed,” Coleman continued. “Regardless, the governor and her administration are working on a strategy to protect New Mexico’s cannabis industry.”

Governor ‘Offended’ by Mayorkas’ Response

After the conversation with Mayorkas, Lujan Grisham told an unidentified federal official in a telephone call that she was unhappy with the secretary’s response to her concerns, according to a recording of the call made by an unidentified third party and posted to X by Tore Maras, who runs the website “Tore Says.”

In the recording, which Politico confirmed is authentic, the governor said that she was concerned about the seizures from licensed cannabis companies and felt “boxed in” by the federal government’s actions.

“The secretary said to me, just so you know: ‘Who cares? They make a lot of money,’” Lujan Grisham tells the official, according to a report from Politico. “I thought that was really inappropriate.”

“Well, first of all, it’s patients’ medicine,” the Democratic governor tells the unidentified official about the reported reply from Mayorkas. “So, I was really offended by that. Shame on him.”

“If [small producers] lose a load, their business goes belly up. I thought that was really inappropriate,” she added.

As the recording ends, Lujan Grisham says that she has so far “held off the press,” adding that she “can’t have” stories referring to her as “feckless” and is not willing “to let Biden walk all over” her.

“Either you have to adjust it or I have to send you a letter saying you’re persecuting the states, you are not using your discretion, you’re not working with me on immigration,” Lujan Grisham said. “And I don’t want to send that letter, but I’m boxed in.”

Despite the legality of cannabis at the state level, CBP officials note that marijuana is still illegal under federal drug laws.

“Consequently, individuals violating the Controlled Substances Act encountered while crossing the border, arriving at a U.S. port of entry, or at a Border Patrol checkpoint may be deemed inadmissible and/or subject to seizures, fines, and/or arrest,” a CBP spokesperson told Politico.

Governor’s Office Confirms Recording Is Real

The governor’s office also confirmed the authenticity of the recording in a statement to Newsweek, saying that the conversation was with a “high-level federal administration official,” without specifying for which agency.

“This unauthorized and edited recording of the governor’s private phone call reflects what she has already said publicly—that she is frustrated by federal seizures of licensed cannabis products in New Mexico, particularly those from small producers,” Coleman told Newsweek. “She has expressed the same concerns in phone calls with Secretary Mayorkas.”

The seizures of regulated cannabis from New Mexico operators are raising concerns throughout the regulated industry, even beyond the state’s borders. David Craig, chief marketing officer at Missouri licensed cannabis company Illicit Gardens, challenged the legitimacy of targeted seizures.

“Selective enforcement is counter to state laws and state constitutional provisions protecting the cannabis industry,” Craig wrote in an email to High Times. “Can you imagine any other legal industry in the US having its goods seized by the government without cause? It’s out of the question. Even with the great strides the US has made on cannabis over the last several years, unauthorized federal seizures and targeting blatantly contradictory to state law remain a constant fear for cannabis operators of any size.”

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Federal officials in New Mexico are apparently targeting state-licensed marijuana companies at border checkpoints and seizing regulated cannabis products, according to media reports. 

New Mexico legalized medical marijuana in 2019, followed by the legalization of adult-use cannabis in 2021. Regulated sales of recreational weed began in the state on April 1, 2022, just under a year after Governor Michelle Lujan Grisham signed the legalization bill into law.

Since then, New Mexico’s licensed cannabis businesses have seen little interference from federal authorities, much like other weed-legal states over the last several years. The situation has changed recently, however, with U.S. Customs and Border Protection agents seizing regulated cannabis products at least a dozen times over the last two weeks, according to Ben Lewinger, executive director of the New Mexico Chamber of Commerce. Although 12 such seizures have been reported, the actual number could be even higher.

“There still is a lot of stigma and a lot of fear so I imagine this is underreported,” Lewinger told KRQE 13 television news. “It’s hurting small businesses. It’s hurting all of us because of the loss of tax revenue.”

CBP officers are permitted to establish immigration checkpoints to help stem smuggling and human trafficking within 100 miles of the international border with Mexico. In states with legal weed, these checkpoints are generally navigated without incident by licensed cannabis companies moving products within the state. But recently that has changed, although seemingly only in New Mexico. Lewinger said he believes the state’s cannabis businesses are being targeted by federal officials in the state and called on the Biden administration to step in.

“Our brothers and sisters in California and Arizona, which also share a border with Mexico, they’re not seeing this kind of same increased activity. It seems like this is a situation that is particular to New Mexico and I think what needs to happen is The White House needs to direct the Department of Homeland Security to stop wasting resources on a product that poses no threat,” Lewinger said. “It’s just clearly outside of the scope of Customs and Border Patrol.”

Nick Spoor, operations manager at Top Crop Cannabis Co., told reporters that the company has regularly transported cannabis products through CBP checkpoints successfully.

“Normally they don’t have dogs, usually it’s just a, ‘are you a U.S. citizen, yes’ and then they wave you through,” said Spoor.

But that changed when CBP agents seized products from one of the company’s vehicles at a checkpoint on Valentine’s Day.

“We’ve been going through that checkpoint for over a year, no questions asked, so obviously we’re doing everything compliantly. It was manifested product,” said Top Crop Cannabis Co. CEO Matt Chadwick. “So, I was shocked, a little blown away and taken back.”

Ethan Ramsey, an employee with Las Cruces cannabis producer Head Space Alchemy, was arrested by the CBP last week while attempting to go through an immigration checkpoint, according to a report from The Paper. The driver had been stopped at a checkpoint on Interstate 25, about 25 miles north of Las Cruces while delivering samples to a cannabis lab in Santa Fe. 

Rob Duran, a managing partner of Head Space Alchemy, was following in another vehicle. The Paper obtained an audio recording of the interaction with CBP officials. 

“We’ve been instructed to seize all cannabis—all illegal products,” the CBP officer can be heard saying. “It’s still federally illegal.”

When Duran asked how the company and CBP could reach a solution to the situation, he was told that he could talk to a supervisor or contact the regional office. 

“I can’t tell you anything that they [haven’t] already told you,” the officer says on the recording. “Or I can’t go above what they’re telling you … Everything’s going to get seized.”

When Duran asks about Ramsey, he is told that the employee has been arrested.

“He’s under arrest,” the agent says. “That’s what happens when someone gets placed under arrest. You’re trying to get a definitive answer out of me. I don’t know where we’re at. We’ve just started this process. We’ve just started this case, so I can’t give you a definitive answer.”

Between last week’s seizure by CBP and an earlier one, Duran says the company has lost about $20,000 in product. More significantly, his workers now have a record with the federal government because of the interactions.

“In both cases, [employees] have had their pictures taken and been fingerprinted, and have also been told that their names are going to now be in a federal database as being caught at a federal inspection checkpoint with cannabis,” Duran says.

When contacted by local media, a CBP spokesperson denied allegations that officers in New Mexico are targeting licensed cannabis businesses.

“Although legal for medical and/or recreational use in many states, marijuana is classified as a Schedule I controlled substance under federal law,” the spokesperson said in a statement. “Therefore, U.S. Border Patrol agents will continue to take appropriate enforcement action against those who are encountered in possession of marijuana anywhere in the United States.”

Chadwick of Top Crop Cannabis Co. said that his business can handle the loss from CBP interference. But he says that other companies could be irreparably harmed by the product seizures.

“People’s lives are at stake here. Businesses are at stake here. And it can affect some people with, like I said, very dire circumstances and they could lose everything they’ve had,” said Chadwick. “They’ve put their hearts and souls into their businesses and it’s not fair.”

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Regulated sales of cannabis in New Mexico topped more than $40 million for the month of December, with recreational marijuana sales setting a new record of $28 million for the month. Sales of medical marijuana totaled about $15.1 million for the last month of 2022, up from about $14 million in November, according to data released this week by the state’s Cannabis Control Division. The increase over the previous month reverses a trend of declining medical marijuana sales posted over the preceding four months, going back to August.

Andrew Vallejos, the acting director of the Cannabis Control Division (CCD), said that the record-breaking month for adult-use cannabis sales coupled with an increase in medical marijuana purchases was a welcome surprise for the state’s cannabis industry and regulators.

“I don’t know exactly what attributed to certainly the increase both in medical and recreational, as a bump up in December, but it was kind of surprising to us to see how robust those numbers were,” Vallejos said in a statement quoted by the Albuquerque Journal, adding “The sales (numbers) are interesting in and of themselves, but what I’m encouraged by is the fact that it means a steady cash flow for (businesses) to stay open and to make a profit.”

Recreational Marijuana Sales Launched In April

In April 2021, New Mexico Governor Michelle Lujan Grisham signed the Cannabis Regulation Act into law, legalizing the use of marijuana for adults and creating a framework for regulated sales of adult-use cannabis. Only a year later, in April 2022, licensed sales of recreational marijuana began at regulated dispensaries in the state.

Since the April launch, sales of recreational marijuana in New Mexico totaled more than $214 million in 2022. For the same time period, medical marijuana sales totaled about $144.2 million, according to state data. At the current rate of sales, recreational marijuana sales in New Mexico are likely to top $300 million in the first full year of regulated adult-use cannabis sales.

Ben Lewinger, the executive director of the New Mexico Cannabis Chamber of Commerce, said that December’s recreational sales numbers illustrate how small towns are taking advantage of the economic opportunities associated with the state’s newest industry.

“This is very impressive on a statewide, macro level, but I think what’s more indicative of the early success of this industry is when you look at smaller, rural communities,” Lewinger said. “Places like Alto, Cloudcroft, Raton and Tularosa each boast more than 10,000 total transactions for the month of December. That’s tax revenue for those municipalities and their counties, as well as for the state.”

New Mexico’s small towns, particularly those that are near the Texas border, have shown strong gains in monthly recreational marijuana sales since the April launch. Sunland Park had its best month so far in December, eclipsing $2 million in recreational marijuana sales for the first time. Hobbs also posted strong numbers, with a record-breaking $1.7 million in recreational marijuana sales last month. Nearly $832,000 in recreational cannabis sales were rung up in Clovis in December, the highest ever reported in the town of 38,000.

Albuquerque leads the state in recreational cannabis sales, posting about $8.4 million in sales for December, a new record for the city. Medical marijuana sales added another $6 million to the city’s overall total for December, bringing it to more than $14 million. Two cities saw about $2 million in recreational cannabis sales in December, with Santa Fe posting the strongest showing to date and Las Cruces seeing its second-highest monthly total.

Sales of recreational marijuana have dominated New Mexico’s cannabis industry since the April launch, representing about 65% of total sales dollars and about 68% of all dispensary transactions. But medical marijuana patients spend more money per visit, with the average medical cannabis transaction in the state coming to $52.57. By comparison, the average recreational marijuana sale came to $45.31 over the past nine months.

CCD director Vallejos said last month that recreational marijuana legalization in New Mexico is not just about destigmatizing the use of the plant. More importantly, cannabis policy reform presents new economic opportunities for the state.

“I think there was a push by the people who wanted to have legalized, adult-use cannabis,” Vallejos said. “But there was also opportunity for economic growth. … I don’t want to pretend like cannabis is going to be oil and gas — the state isn’t going to rely on cannabis profits to fund massive amount[s] for schools — but as we diversify our economy, it’s just another arrow in the quiver.”

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State officials in New Mexico announced this week that sales of regulated cannabis topped $40 million in July, setting a new record since legal sales of recreational pot began in the state earlier this year. The Cannabis Control Division of the Regulation and Licensing Department noted the figure tops the monthly purchases of regulated cannabis recorded every month since April, when licensed sales of recreational weed kicked off in the state.

During the month of July, licensed retailers throughout New Mexico reported more than $40 million in cannabis sales, with sales of adult-use cannabis alone topping $23 million. Cannabis sales totaled more than $39 million in April, the first month of legalized recreational sales and the state’s previous record high, with April adult-use sales totaling just over $22 million. New Mexico Governor Michelle Lujan Grisham said that the figures show that a strong market for regulated recreational marijuana is being created in the state.

“These numbers show that the impressive sales generated in the first month of legalized recreational cannabis sales were no fluke – and this is only the beginning,” Lujan Grisham said on Thursday in a statement from the governor’s office. “We’ve established a new industry that is already generating millions of dollars in local and state revenue and will continue to generate millions more in economic activity across the state, creating thousands of jobs for New Mexicans in communities both small and large.”

State officials noted that the strongest sales of cannabis were reported in New Mexico’s most populated areas including Albuquerque, Santa Fe, Las Cruces, Hobbs, and Rio Rancho. Albuquerque saw the highest cannabis sales in the state, with combined adult-use cannabis and medical marijuana purchases topping $14 million in July. Santa Fe was next in line, with just under $3.5 million in combined sales last month. Sunland and Hobbs, two cities on the border with Texas, where recreational pot is still illegal, each recorded more than $1 million in adult-use cannabis sales.

New Cannabis Products Helping To Drive Sales

Rusty Poe, the manager of Sol Cannabis in Las Cruces, told local media that sales at his shop keep increasing.

“Sales have actually been steadily increasing for us, the more product we bring in the more sales we have,” said Poe, noting that new products on the dispensary menu including cannabis-infused beverages and edibles have helped fuel the uptick in sales.

New Mexico Cannabis Chamber of Commerce Executive Director Ben Lewinger said that the state’s cannabis sales figures are a victory for New Mexico and its growing industry.

“I couldn’t be prouder of my home state,” said Lewinger. “The Cannabis Regulation Act presented what felt like an impossible timeline to stand up a brand new adult use cannabis industry, yet here (we) are – four months into legal cannabis for folks over 21 and we have record sales, for not only adult use but also our cherished medical cannabis program. …Best of all, no one city or county owns this success — the industry will continue to grow across the entire state.”

Since regulated sales of adult-use cannabis began in April, dispensaries have rung up more than $88 million in recreational pot sales. The Cannabis Control Division releases sales numbers monthly, with data made available at the beginning of each month for the previous month.

New Mexico’s rising sales of adult-use cannabis are a boon for the public coffers as well as the state’s cannabis industry. New Mexico Taxation and Revenue Department spokesman Charlie Moore said cannabis excise tax returns totaled close to $2.5 million in June. The amount of tax generated by sales of cannabis in July will be released by the agency in late August.

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