New Mexico Cannabis Businesses Seek Emergency Court Order to Halt Track-and-Trace System Transition
- A group of New Mexico cannabis businesses filed a lawsuit seeking emergency relief to halt the transition to a new statewide track-and-trace system, arguing the new system hasn’t been sufficiently tested.
- The lawsuit requests a temporary restraining order to keep the current system, BioTrack, active during further testing and implementation of the new New Mexico Seed-to-Sale System (NMS2S).
- The Cannabis Control Division (CCD) defends the transition timeline, citing extensive preparation and testing since early 2024, and highlights that NMS2S will reduce costs and better meet state regulatory needs.
- The state moved to dismiss the lawsuit, and as of August 28, the court had yet to decide on the emergency relief requested by the cannabis businesses.
A group of New Mexico cannabis businesses has asked a state court for emergency relief to halt the ongoing transition to a new statewide track-and-trace system, arguing regulators are moving forward before the replacement has been sufficiently tested.
The lawsuit, filed last week in New Mexico’s Second Judicial District Court, seeks a temporary restraining order and preliminary injunction requiring the Cannabis Control Division (CCD) to keep BioTrack operating as the state’s system of record while the new New Mexico Seed-to-Sale System (NMS2S) is tested and implemented.
The plaintiffs include Oasis Cannabis Company, The Grow NM, Higher Cultures, Blaze POS, RR Designs, Moth Transport and Vana. The Cannabis Association of New Mexico is supporting the challenge.
The transition has already begun. BioTrack functionality for non-retail businesses was turned off Aug. 25, and testing laboratories cannot receive samples through Aug. 31. Retailers can continue making sales through BioTrack, but transfers are restricted during the migration. Retailers are scheduled to gain access to NMS2S on Sept. 2, with BioTrack shutting down entirely at 12:01 a.m. Sept. 4.
The businesses argue the compressed schedule could disrupt testing, product transfers, inventory management and other essential operations. They have also raised concerns about the timing of training materials and availability of integrations with third-party inventory systems.
The plaintiffs are seeking to keep BioTrack available through at least Sept. 15, when the state’s current agreement with BT Government Inc. expires. They contend that doing so would provide additional time for testing and training without requiring the state to pay for an additional extension.
State regulators have pushed back on claims that the new system is unprepared. In an Aug. 21 bulletin, the CCD said it has been preparing for the transition since 2024 and that user acceptance testing has been underway since April, while testing of data migration from BioTrack began in March. The state awarded the NMS2S contract to Albuquerque-based Real Time Solutions in January.
The CCD says NMS2S will be free for licensees and will eliminate per-tag fees, monthly subscription costs and certain other expenses associated with track-and-trace systems. Regulators said the system was developed specifically around New Mexico’s marijuana regulations and operational needs.
The state filed a motion to dismiss the lawsuit on Aug. 24. As of Friday, Aug. 28, the court had not issued a ruling on the businesses’ request for emergency relief.