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At a recent Las Cruces City Council meeting, a number of individuals representing the local cannabis industry spoke out against the recent spate of Border Patrol checkpoint marijuana seizures, calling on the city to show support for local businesses.
Since February, Border Patrol agents have been ratcheting up cannabis seizures at interior border checkpoints, resulting in reported losses of more than $500,000 in marijuana products transported by state-licensed cannabis operators. Talks between Gov. Michelle Lujan Grisham and the Department of Homeland Security(DHS) — which oversees Custom and Border Protection (CBP) — haven’t seemed to move the needle, and the agency has said it will continue enforcing the federal prohibition of weed, regardless of local laws.
According to testimonies given to the Las Cruces City Council at its June 17 meeting, the seizures are beginning to have a negative impact on the city’s cannabis businesses.
“When the recreational came in, it seemed like it was going to be a pretty good idea and the city definitely flourished with a lot of new businesses,” said Robbie Tafoya of Desert Flower Growers. “But as you can tell, a lot of them are already starting to close down.”
Tafoya said the culprit behind the closures is the CBP and its northbound interior checkpoints. “Can you imagine if we had to tell everybody you can’t have Hatch chile anymore from down in our area, but you can bring it from Albuquerque?” he asked. “What would that do to our economy?”
Tafoya also said the checkpoints are creating a pressure cooker scenario for producers. As more producers in the southern portion of the state continue to pump out product, the supply has begun to greatly outweigh demand.
“It’s forced all of the people that are producers and manufacturers like myself to have to dumb our product down so cheap that we’re literally giving it away for pennies on the dollar, just to try to stay to compete with a lot of the bigger manufacturers that are here,” Tafoya said.
He told the councilors that about 70% of his business is located north of the checkpoints and he has to transport products through them two to three times a week.
“I’d definitely like to see my product be able to move and not be in fear of going to jail,” he said.
There doesn’t appear to be much that the council could do, considering the source of the problem, but activists are asking that city and state leaders look into the Operation Stonegarden Program (OPSG), which is administered by the Federal Emergency Management Agency (FEMA) and funds interagency cooperation between CBP and local police forces. Under the program, local law enforcement could be given authority to conduct searches at interior checkpoints, allowing the interests of both the state and the federal government to be upheld.
“That would be a really great idea,” said cannabis broker and lobbyist Chad Lozano during the meeting. “It wouldn’t come out of our pockets. It would come out of the federal government’s pockets.”
Lozano pointed out that the seizures will be affecting the state government’s bottom line. “With the issues that we have, $500,000 [in lost products] being taxed at 20 percent — that’s a big loss,” he said. “Every year from now on, that percentage is going up one percent, and if this issue continues, we’re going to just lose more and more money.”
Other speakers said that the checkpoints are keeping new businesses from setting up shop in Las Cruces.
“We’ve gotten a feel of what the vibe is around New Mexico, and it’s pretty tough,” said Martin Lopez of Juanito’s Joint, a marijuana brokering and consulting business. “Nobody wants to start a business here anymore.”
In the event city leaders find they are unable to do anything to help local businesses fight the feds, activists say they’d be happy with a little acknowledgment and a show of support from city leaders.
“I understand the city is very limited on what they can do,” Lozano told the councilors. “The state is limited as well, but having your support is just more than enough for us. If you know, if that’s all you guys can do.”
“We’re really asking for your help,” said Kelly Collins of Higher Cultures. “I get it. It’s federal. You’re very limited in what you can do. But it is very scary … for people who are younger and are transporting products to stores throughout the state.”
Meanwhile, a DHS appropriations bill amendment that was filed by New Mexico Rep. Gabe Vasquez (D-NM) that would have kept the agency from spending federal funds to seize marijuana from state-licensed operators at checkpoints was blocked by the House Rules Committee.