Cannabis is legal in 38 states and potentially heading for a less restrictive status in the eyes of the federal government. Despite this, state-legal cannabis companies continue to face challenges. In New Mexico, a group of licensed operators are suing the federal government over what they say are “egregious and unconstitutional” actions by the U.S. Customs and Border Patrol (CPB).
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The lawsuit contends ongoing searches and seizures conducted by CPB agents are illegal, resulting in damages over $1 million. The suit, filed last week in a U.S. district court, names eight licensed cannabis operators as plaintiffs.
The plaintiffs assert numerous constitutional rights violations since February. CPB agents seize cash and regulated products, sometimes detaining employees for hours. According to the filing, these “summary seizures are ongoing and becoming more frequent.”
The lawsuit cites one example of a female Royal Cannabis employee being searched for weapons in “full view of traffic.” The woman was then held in “inhumane conditions” for several hours, forced to “use the restroom inside of a locked cell in full view of the CBP.” The lawsuit also claims the woman was deprived of clean drinking water and exposed to toxic mold on her cot.
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In April, managers from ten cannabis companies in New Mexico sent a joint letter to Congressional leaders, begging for help. Leaked audio from a conversation between Governor Michelle Lujan Grisham and an unnamed federal official expressed frustration over the citation, with Lujan Grisham saying she was “offended.” Despite this, the seizures continued.
The plaintiffs seek a jury trial and the return of any seized property and/or its monetary equivalent. The federal government has yet to respond to the lawsuit. CPB previously argued the searches are necessary as they battle the flow of illegal narcotics into the country over the southern border.
Cannabis legalization may be spreading, but doing business in the space remains difficult for many operators. The New Mexico case highlights the dire need for state and federal government alignment. It’s unclear how rescheduling or legalization would impact the lawsuit, but the plaintiffs say the fact that reform is being debated is a clear reason why the CPB needs to cease and desist.
