Federal authorities have seized hundreds of thousands of dollars worth of cannabis from a state-run cannabis operator in New Mexico in recent weeks, increasing prohibition enforcement nationwide even as the federal government largely refrains from regulation. appears to be expanding locally, tying up industry workers. In recent years, it has blocked enforcement of state legalization laws.
Cannabis businesses in New Mexico are reporting more than a dozen seizures by U.S. Customs and Border Protection (CBP), particularly at inland crossings around the Las Cruces area, a relatively new phenomenon. Since adult-use cannabis sales began in the state in 2022, operators say they have generally been able to transport product to testing facilities and retail stores without issue.
But starting about two months ago, authorities apparently took a more aggressive approach to enforcing federal prohibition, removing hundreds of pounds of marijuana at checkpoints across the state. CBP can operate within 100 miles of the U.S. border.
“South of these checkpoints, there are a lot of significant cannabis growers and cannabis manufacturers that are really successful,” Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, told Marijuana Moment. he said. “Essentially, every road going from the southern part of the state to the northern part of the state has to go through one of these checkpoints. This bifurcates the industry and prevents people in the southern part of the state from passing through the checkpoint. We can deliver products anywhere in the central or northern part of the state. ”
Lewinger said CBP has conducted at least 13 raids and seizures of state-legal cannabis products since February, adding, “I wouldn't be surprised if that number were double.”
“It's definitely underreported,” he said. “I think there are a lot of people who still have that fear and that stigma. They don't want to rattle the cage.”
Matt Chadwick, CEO of Top Crop Cannabis, a vertically integrated marijuana business in New Mexico, told Marijuana Moment on Feb. 14 that his employees had purchased approximately $139,000 worth of product. He said the vehicle was stopped by CBP while transporting approximately 22 pounds to a store in Albuquerque. A checkpoint and dog alerted officials to the odor, and a secondary inspection was conducted.
“We've been doing this for over a year with no repercussions. Now, they ended up taking him into custody and putting him in solitary confinement, and he was there for over three hours,” Chadwick said. Told. “They eventually released him and gave him back this car, but they didn't give him any documents, they didn't give him any product back. [The agent] He said he would receive something in the mail on how to get a refund for the products that were taken. we haven't seen anything. ”
Other affected companies, including Schwatze, have received documentation, but nothing indicates the possibility of refunds for seized products in some cases.
Dan Pavone, chief legal officer at Schwatze and a former New Mexico congressman, shared a document received by an employee who was stopped at a CBP checkpoint on March 22nd. After officers seized approximately five pounds of flower and edible products, employees said a “receipt of seized property and evidence showed that the vehicle was transporting THC products destined for a dispensary.” acknowledged.
However, strangely, the actual itemized list of seized property only listed the vehicle itself, not its estimated value. And the car wasn't actually impounded, as the workers were eventually allowed to drive away, just because there was no retail marijuana.
But Pabon said there was an “interesting development” to the situation. He said the employees were all state-certified medical marijuana patients and were allowed to leave with their own marijuana.
CBP falls under the jurisdiction of the Department of Homeland Security (DHS), is not bound by Congressional provisions that prevent the Department of Justice from using its funds to interfere with the implementation of state medical marijuana programs, and has limited protection from federal prosecution. provides adequate protection to the patient. .
“While medical and recreational marijuana may be legal in some U.S. states and Canada, the classification of marijuana as a Schedule I controlled substance means that marijuana cannot be sold, possessed, produced, distributed, or The aforementioned facilitation remains illegal under U.S. federal law,” a CBP spokesperson told Marijuana Moment on Monday. “As a result, individuals who violate the Controlled Substances Act when crossing a border, arriving at a U.S. port of entry, or encountered at a Border Patrol checkpoint will be considered inadmissible and/or subject to seizure, fines, and /or may be subject to arrest.”
“CBP would like to remind the public that possession of marijuana is illegal under federal law when passing through U.S. Border Patrol checkpoints, including in New Mexico,” CBP said in a statement.
CBP explains why there was a policy change to explain recent New Mexico seizures, why workers were allowed to possess personal medical marijuana in one case, and whether the measure is coming under the Biden administration. He did not respond to specific questions about how this was consistent with the non-interference policy. in the state's marijuana program.
Another recent report published in The Paper details how CBP last week stopped employees at cannabis production company Head Space Alchemy and seized product; This is the second time for. Investigators said in a video recorded of the encounter that the worker was “under arrest.”
“We have been directed to seize all cannabis, all illegal products. It is still illegal under federal law,” he said.
Rob Duran, the company's managing partner, said the employees were allowed to leave after being fingerprinted and entered into a federal database, even though they claimed they were under arrest. The worker received no citation or notice. and CBP did not provide any documentation regarding the stop and seizure.
It's unclear how widespread the trend is, but officials say they haven't heard of similar stories in states like Arizona and California, which also regulate cannabis businesses near the U.S.-Mexico border. Says.
So far, there is no clear solution to the CBP problem in New Mexico's cannabis industry, and why it is happening two years after the state's adult-use market first opened. There is no clear answer. Meanwhile, businesses are asking members of New Mexico's congressional delegation for help.
Sen. Martin Heinrich (D-N.M.) said in a statement to KRQE that DHS's focus should be on checkpoint enforcement efforts to combat illegal fentanyl trafficking and “seize marijuana that is being transported in accordance with state law.” It's not something you should do.”
“New Mexicans depend on federal law enforcement to do everything they can to keep our communities safe,” he said. “Our resources should be used to maximize the safety of our residents, not distractions from that.”
The office of Rep. Gabe Vazquez (D-N.M.) said, “This matter has been raised with the congressman and his office is investigating.”
“Representative Vasquez believes the federal government should respect New Mexico law,” they said. “Representative Vasquez is also a co-sponsor of the SAFE Banking Act, which supports legal cannabis businesses across the state.”
Targeting state-licensed companies is a seemingly new trend, but a 2022 report from the Government Accountability Office (GAO) found that most CBP drug checkpoint seizures are actually This was not a large-scale crackdown on illegal activity, as it involved investigators collecting small amounts of marijuana from American citizens. You guessed it: drug shipments from multinational cartels.
In 2019, a coalition of senators called for a review of Border Patrol immigration enforcement measures, citing past reports of a significant number of searches and seizures of U.S. citizens for low-level marijuana possession. requested.
Meanwhile, CBP has taken steps to revise its internal cannabis policy, narrowing the period of employment disqualification for past cannabis use from two years to three months.
Sen. James Lankford (R-Okla.) criticized the modest reform in a letter to the acting director of CBP on Sunday, arguing that it “compromises the safety and integrity of Border Patrol agents.” Questioned the “credibility” of recruits who used cannabis.
Last year, CBP warned employees and their families not to use CBD products, even if they are federally legal.
The federal legalization of cannabis and its derivatives has also added complexity to CBP's enforcement efforts, with the agency exploring portable cannabis analyzers that can quickly identify cannabinoid profiles and help distinguish between hemp and hemp.
Marijuana company claims DEA review process is unconstitutional in new federal lawsuit
Photo by Chris Wallis // Side pocket image.
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