Oct. 29 — Saying his department can “curb” the flow of illicit cannabis into New Mexico, state Department of Regulation and Licensing Superintendent Clay Bailey’s team released its 61 budget proposal. $.6 million for the 60-day legislative session that begins in January. .

The FY 2026 budget request seeks to add law enforcement capabilities for the Cannabis Control Division and 10 additional compliance officers to help increase the number of inspections conducted at marijuana businesses across the state.

The proposed multimillion-dollar budget, which includes $2 million from the state general fund to add compliance officers and another $1.1 million to add seven special agents to the division, comes as CCD found an increase in illicit activity within the burgeoning New Mexico region. cannabis industry.

“I don’t imagine my guys are going to arrest people — that’s not the plan,” Bailey told the Journal in an interview Friday. “But they would be able to. … I’m asking here not because I want additional responsibilities, (but) because someone has to do it and it has to be done. It has to be done now.”

Bailey called the flow of illicit products into the market “a huge problem.” He said unlicensed growers harvest between 20,000 and 50,000 plants, while others who are licensed grow more than is legally allowed under their license type.

“It’s becoming more and more of a problem,” Bailey said. “I think if you talk to any of the companies that are operating legally, they’ll tell you that’s a problem too and it’s something that we need to be able to stop and put an end to.”

Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, said “expanding” RLD’s capabilities to include law enforcement tasks is a policy priority for his organization. Like Bailey, he and the businesses represented by the chamber have noticed the trend of illicit products being grown and sold in New Mexico.

“I think what we’re experiencing right now in the industry is still a high volume of illegal activity,” Lewinger said, noting that this has also led to other illegal activities such as human trafficking and production of other narcotics.

Bailey said the $1.1 million for special agents, as well as a $465,000 special request for vehicles, was contingent on approval of separate legislation giving RLD law enforcement authority .

Aside from enforcement, Bailey said his division is short on compliance officers, increasing the workload for the dozen currently on the job. He said the addition of these compliance officers is not an expansion but helps the division “conduct these inspections in a timely manner.”

Compliance officers at CCD have conducted more than 2,200 inspections so far in 2024, compared to 1,100 in 2023 and 138 in 2022 – the first year of legalized adult-use sales.

But the division also oversees 3,071 licensed establishments, according to an October count, which span retail, manufacturing and cultivation facilities.

“We’re so exhausted,” Bailey said. “(Adding 10 compliance officers) would at least make it reasonable to do all the inspections on a one-time, annual rotation, I believe, and it would allow us to do the other things that need to be done as we move forward. “.

Lewinger said the number of compliance officers proposed in CCD’s budget proposal is still too low. He said New Mexico needs to align itself more with states like Colorado, which he says are better equipped to enforce rules and regulations.

Lewinger’s comments line up with those of others, including Justin Dye, president of Schwazze, the company that owns R.Greenleaf and Everest Cannabis Co. Dye told lawmakers earlier this month that a state like Colorado had one inspector for every 47 licensees, compared to New Mexico, which has one for every 256 licensees.

“As a division, they are extremely under-resourced for the task at hand,” Lewinger said. They should not “sell short the resources they need to support this industry, not only in 2025, but well into the future.”

RLD is also seeking a series of special requests, including $560,000 to cover compliance officer vehicles and $745,000 for equipment needed to seize and destroy illicit cannabis products.

A key legislative committee will release its proposed budget for the coming year in January, just before the 60-day session begins. Gov. Michelle Lujan Grisham’s administration will also release its own spending plan.

These two budget proposals will then serve as models as lawmakers debate and ultimately approve a state budget for the fiscal year that begins in July 2025.