What to Do When You Receive a Notice of Contemplated Action in New Mexico

The short version If the New Mexico Cannabis Control Division serves you with a Notice of Contemplated Action, you have 20 days to mail a certified, return-receipt-requested letter requesting a hearing. Miss that deadline and the contemplated penalty becomes final, with no judicial review available. Below is how the process works, what penalties are realistically on the table, and how to defend an NCA effectively.

 

A Notice of Contemplated Action from the New Mexico Cannabis Control Division means the state is preparing to discipline your cannabis license. You have twenty days to respond. It is not a fine, not a suspension, not a revocation. Not yet. It is the formal document that opens an administrative case under the Cannabis Regulation Act, and it triggers a tight set of deadlines under the Uniform Licensing Act.

Used correctly, the 20-day window is the licensee’s most valuable tool. Used poorly, or ignored, it is the moment a viable cannabis business stops being one. Here is how the process actually works.

What a Notice of Contemplated Action is in plain terms

A Notice of Contemplated Action, commonly called an NCA, is the formal step that opens an administrative disciplinary case against a New Mexico cannabis licensee. The Cannabis Control Division issues one when its compliance staff has built enough evidence, usually through inspections, audits, or a complaint, to believe the licensee has violated the Cannabis Regulation Act or the rules under 16.8 NMAC.

The notice has to do a few specific things. Under § 61-1-4(D) of the Uniform Licensing Act, it must tell the licensee that the agency has sufficient evidence which, if not rebutted or explained, will justify the contemplated action; describe the general nature of that evidence and the alleged violations; and inform the licensee of the right to request a hearing. The cannabis-specific rule, 16.8.12.10(D) NMAC, points back to the same statute and says the Division “shall issue a notice of contemplated action and initiate disciplinary proceedings” when there is sufficient cause to proceed.

Common triggers in cannabis license disciplinary cases include exceeding plant-count or canopy limits, failing to enter product into the state’s BioTrack track-and-trace system, selling at unlicensed locations, missing security or surveillance requirements, sanitation issues, and packaging or labeling violations under the Cannabis Regulation Act.

The 20-day clock starts immediately

The single most important number in the NCA process is 20 days. Once the NCA is served, the licensee has twenty days to mail a certified, return-receipt-requested letter to the Division requesting a hearing. That requirement comes straight from § 61-1-4(D)(3) of the Uniform Licensing Act.

If that letter does not go out in time, § 61-1-4(E) is unforgiving: the agency may take the contemplated action by default, and the resulting decision is final and not subject to judicial review. No hearing, no appeal, no second chance. Email, voicemail, or an informal call to a compliance officer is not a substitute for the certified letter.

What happens after a hearing is requested

Once the hearing request is in, the Division has twenty days to send a separate notice of hearing identifying the time, place, hearing officer, and the statutes and rules being relied on. The hearing itself must then be held no fewer than 15 and no more than 60 days from the date that notice of hearing is served — not from the date of the original NCA, which is a common point of confusion. That timeline is set out in § 61-1-4(F).

At the hearing, both sides put on evidence and witnesses before an Administrative Hearing Officer. The licensee can challenge the agency’s evidence, present exculpatory facts, show that violations have been remedied, and argue mitigation. The hearing officer issues a written recommendation, and the Division then issues a final decision.

The Bliss Farm matter is a useful real-world illustration. The Division served its NCA on Bliss Farm on August 14, 2023, and the hearing was held on October 19, 2023. At the hearing, the operator’s attorney argued that all violations had been remedied, but compliance officers later returned to the site and found otherwise. The hearing officer recommended revocation and the Division imposed a $1 million fine. NAADC, a separately owned operation in the same county, went through the same process with an NCA dated October 12, 2023, a hearing on November 22, 2023, and an identical outcome — cannabis license revocation and a $1 million fine.

Penalty schedule under 16.8.12.13 NMAC

The Bliss Farm and NAADC penalty amounts are unusually large. The default civil monetary penalties for cannabis violations are much lower for ordinary cases, scaled to prior offenses within a rolling 12-month window:

Offense (within 12-month period)	Civil Monetary Penalty	License Action
First offense	$1,000–$2,000	Possible suspension or revocation if pattern warrants
Second offense	$2,000–$3,000	Possible suspension or revocation if pattern warrants
Third or more offenses	$10,000	Revocation
Sale or distribution to minors (any offense)	$10,000	Revocation

 

The Division can enhance or suspend any of these penalties based on the facts of the individual case. Compliance history is a meaningful factor, which is why a clean prior record materially changes the available outcomes.

What “appeal” actually means here

If the final decision goes against the licensee, the next step is not a true appeal but a petition for review filed in district court under § 61-1-17 of the Uniform Licensing Act. The court does not retry the case. It reviews the administrative record and decides whether the agency acted within its authority, followed proper procedure, supported its findings with substantial evidence, and applied the law correctly. New evidence is generally not admitted at this stage, which is why the administrative hearing matters so much — it is the licensee’s main opportunity to build the factual record.

How to defend an NCA effectively

A few practical points are worth keeping in mind.

The 20-day deadline is jurisdictional in practice. Calendar it the moment the notice is served, and send the request by certified mail with return receipt. An email or phone call to a compliance officer is not a substitute.

Remediation matters, but it is not magic. Fixing violations between the NCA and the hearing usually helps mitigation, but as Bliss Farm demonstrated, the Division can and will reinspect, and a claim of compliance the facts do not support will likely make things worse rather than better.

Compliance history is part of the equation. The penalty schedule is keyed to prior offenses within a rolling 12-month window, so a clean record meaningfully changes the available outcomes.

An informal conference is sometimes available. Under 16.8.12.14 NMAC, when probable cause exists the Division may hold an informal conference to discuss whether a compromise of the penalty would serve public health and safety. That can be a productive off-ramp in the right case.

Engage cannabis license defense counsel early. Administrative hearings are evidentiary proceedings with rules of procedure, deadlines for disclosures and motions, and a record that will follow the licensee into any subsequent district court review. Showing up unrepresented is rarely a winning strategy.

 

Received an NCA? The 20-day clock is -already running. Call the Law Office of Johnn Osborn P.C. at 505-585-1235 for a confidential consultation, or use the contact form below to request a same-day callback. We represent cannabis licensees throughout New Mexico, including Albuquerque, Santa Fe, Las Cruces, and surrounding communities.

 

Frequently asked questions

How long do I have to respond to an NCA in New Mexico?

Twenty days from service. The request for hearing has to be sent by certified mail with return receipt requested. If you miss the deadline, the contemplated action becomes final and cannot be reviewed by a court.

Does requesting a hearing pause the action?

Generally yes. The contemplated action is not imposed while the matter is pending. Summary suspensions and emergency orders are a separate track under § 61-1-25.1 of the Uniform Licensing Act, and those can take effect immediately when the agency believes there is an imminent threat to public health or safety.

Can I keep operating while the case is pending?

In most ordinary disciplinary cases, yes, until a final decision issues. If the Division has summarily suspended your license or obtained a temporary restraining order in district court, as it did in the Bluebonnet Labs matter in 2025, operations may have to stop immediately. Read the notice carefully and ask counsel.

What happens if I just ignore the NCA?

The Division takes the contemplated action by default under § 61-1-4(E). That outcome is final and is not subject to judicial review. This is the worst-case scenario and it is entirely procedural. It does not require the agency to prove anything further. Meaning you lose if you ignore it and do not respond.

What kinds of penalties am I looking at?

For ordinary violations, civil monetary penalties under 16.8.12.13 NMAC range from $1,000 to $10,000 depending on prior offense history within a 12-month window, with revocation reserved for repeat or serious offenders. The seven-figure fines reported in Bliss Farm and NAADC reflect the scale of those particular cases, not a typical outcome.

Does the Cannabis Control Division pursue criminal charges?

The Cannabis Control Division itself handles civil and administrative discipline. Criminal charges, when they apply, are filed by local district attorneys or federal authorities and proceed on a separate track. House Bill 10, debated in the 2025 session, would have given the Division its own peace-officer authority; that legislative landscape continues to shift, so check current law.

If I lose, is district court my only option?

The petition for review under § 61-1-17 is the standard next step. From there, further review in the New Mexico Court of Appeals is possible on the same record. New facts and new arguments are generally not entertained at either stage, which is why the administrative hearing is the critical proceeding.

This article is general information about how Notice of Contemplated Action proceedings work in New Mexico. It is not legal advice and does not create an attorney-client relationship. If you have received an NCA, talk to a licensed New Mexico cannabis attorney before your 20-day window closes.

Sources

• M. Stat. Ann. § 61-1-1 et seq. (Uniform Licensing Act), particularly §§ 61-1-4, 61-1-8, 61-1-17, and 61-1-25.1
• 8.12 NMAC (Disciplinary Proceedings, Cannabis Control Division), particularly 16.8.12.10, 16.8.12.13, and 16.8.12.14
• M. Stat. Ann. § 26-2C-1 et seq. (Cannabis Regulation Act)
• New Mexico Regulation and Licensing Department, news release of January 2, 2024 (Bliss Farm and NAADC license revocations)
• New Mexico Regulation and Licensing Department, Cannabis Compliance and Enforcement Actions: rld.nm.gov/cannabis/compliance/ 

Disclaimer: The information in this article is for general informational purposes only and does not constitute legal advice. You should consult an attorney for advice regarding your individual situation. Contacting Land of Enchantment Law does not create an attorney-client relationship.