Grass on Wheels Loses License After Sweeping Violations
The New Mexico Ca**abis Control Division (CCD) has issued a Final Decision and Order revoking the retail license of Grass on Wheels, LLC, operated after a lengthy investigation and evidentiary hearing.
The case, heard on May 15, 2025, and finalized on June 23, 2025, outlined a staggering list of regulatory breaches that painted a picture of a business operating far outside state compliance standards. CCD Counsel Bradford Borman represented the state, while the other party appeared without legal representation.
According to the CCD, Grass on Wheels committed multiple violations under the CRA and New Mexico Administrative Code, including:
Conducted retail sales outside of licensed premises (16.8.2.8(K) & 16.8.2.40(C)(3) NMAC)
Failed to comply with applicable local laws (16.8.2.8(A) NMAC)
Repackaged products without a manufacturing license (16.8.2.29(A)(1) NMAC)
Did not display CCD-issued license (16.8.2.8(I) NMAC)
Operated without a functioning track-and-trace system (16.8.7.9(A) NMAC)
Sold products not sourced from licensed operators (16.8.2.40(G)(1) NMAC)
Did not complete required monthly inventory reconciliations (16.8.2.40(K)(1) NMAC)
Maintained inaccurate or incomplete sales records (16.8.2.40(L)(1) NMAC)
Failed to maintain restricted-access areas, signage, and access logs (16.8.2.10(J) NMAC)
Did not install or maintain a digital video surveillance system (16.8.2.10(D)-(G) NMAC)
Lacked an operational security alarm system (16.8.2.10(A)-(C) NMAC)
Had no documented chain-of-custody procedures (16.8.2.12 NMAC)
Had no documented product recall procedures (16.8.2.11 NMAC)
Failed to provide compliance materials when requested (16.8.2.20(C) NMAC)
The Happening:
Regulators discovered that Grass on Wheels was selling flower products outside its licensed premises, a direct violation of state law intended to control where and how products are sold. The business was also found to be repackaging products—changing labels and packaging—without holding the required manufacturing license, a serious infraction because it bypasses product integrity checks and regulatory oversight.
On the compliance side, the company failed to display its license, maintain its state-mandated track-and-trace account, or reconcile inventory each month. Some products for sale had not even been received from another licensed operator, meaning their origin could not be verified through state systems.
Security was almost nonexistent: no functioning alarm system, no video surveillance, no restricted-access areas, and no logs tracking who entered sensitive product storage zones. These gaps left the business wide open to theft and diversion, while also breaching multiple CCD security rules.
In addition, Grass on Wheels lacked core procedural safeguards. There were no written chain-of-custody protocols to track product movement, and no recall plan to pull unsafe or mislabeled products from the market. When CCD requested compliance documents during the investigation, the business failed to provide the required information.
Outcome:
The CCD concluded that Grass on Wheels had demonstrated systemic noncompliance, failing to meet even the most basic legal requirements for a licensed flower retailer. The scope and variety of the violations indicated not just operational mistakes, but a complete breakdown of regulatory adherence.
The license revocation is a pointed warning: Ignorance of the law is not an excuse; the state will not hesitate to shut down operations that ignore compliance obligations. In this case, Grass on Wheels’ failure to implement even minimal safeguards for sourcing, recordkeeping, and security sealed its fate.
