(The Center Square) - The Cannabis Control Division of the New Mexico Regulation and Licensing Department revoked the licenses of two cannabis companies in the state after the two farms sold their harvests without using the state's tracing system.

The two companies were guilty of "exceeding plant count limits, not utilizing the state’s mandatory track and trace system, and unsafe conditions, among other violations," a statement from CCD said.

Bliss Farm and Native American Agricultural Development Company (NAADC) in Torrance County were ordered to stop all commercial cannabis activity.

The companies must pay $1 million each in fines for their illegal activities. The money will be deposited into the Current School Fund.

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“The illicit activity conducted at both of these farms undermines the good work that many cannabis businesses are doing across the state,” Clay Bailey, Acting Superintendent of the New Mexico Regulation and Licensing Department, said. “The excessive amount of illegal cannabis plants and other serious violations demonstrate a blatant disregard for public health and safety and for the law.”

CCD compliance officers inspected Bliss Farm and found 17 violations. These included, "numbers of cannabis plants far exceeding the allowable limits under the Cannabis Regulation Act, not utilizing the state’s mandatory track and trace system, unpermitted structures, unsanitary conditions of the production facility, pests, and more."

"The farm’s large number of cannabis plants on site and evidence of a recent harvest without records entered into the track and trace system led the division to conclude the plants were transferred or sold illicitly," the release said.

The CCD filed a Notice of Contemplated Action against Bliss Farm in August. The business requested a hearing on the issue for October 2023. The farm's attorney said at the meeting that its violations had been remedied.

"However, upon returning to the facility, compliance officers did not see any evidence that the violations were fixed," the release said. "The hearing officer agreed to revocation and the imposition of fines which were set by the CCD after determining the appropriate amount."

Native American Agricultural Development Company (NAADC) was cited for eight different violations. These included, "exceeding the allowable number of cannabis plants under the Cannabis Regulation Act, improper security measures, no chain of custody procedures, and ill-maintained grounds with trash and pests throughout," the release said.

Additionally, CCD compliance officers saw there was a recent harvest at NAADC, but the plants had never been entered into the mandatory track and trace system. 

The CCD filed a Notice of Contemplated Action against NAADC last year. A hearing took place a month later, and representatives from the CCD and NAADC received the chance to present their cases. The hearing officer sided with the CCD in its recommendation to revoke the NAADC's license and issue a fine.

“Compliance within the industry is the CCD’s main priority, and our office is committed to ensuring New Mexicans have access to safe cannabis products,” Todd Stevens, Cannabis Control Division Director, said. 

So far, the CCD has revoked six licenses and issued over $2.3 million in fines for illegal activity.

New Mexico gets $27 million annually in marijuana tax revenue, according to The Motley Fool.  However, the state also subsidizes the industry. For example, the New Mexico Economic Development Department gave $90,000 to Vana LLC, a cannabis manufacturing business. 

People can file complaints against cannabis businesses by visiting rld.nm.gov/cannabis/report-aviolation.