City council could revoke license for cannabis-themed business Speak Easy

LAS CRUCES - The city council on Tuesday will decide whether to uphold the decision of the city's Community Development Department to revoke the business license of a retailer which got in trouble for gifting cannabis to customers last summer.

Speak Easy, a business at El Paseo Road and East Idaho Avenue which sells CBD products and cannabis-themed merchandise, got hit with a cease and desist order from the New Mexico Cannabis Control Division last July for gifting small amounts of cannabis to customers who made other purchases at the store.

While it became legal for adults to possess and use cannabis in New Mexico June 29, 2021, commercial sales have not yet begun. By law, the state has until April 1 to begin commercial sales. It has already begun to issue retail and other business licenses, and final rules for retailers went into effect in December.

CCD accused the store of skirting state law by giving out larger gifts of cannabis products with more expensive purchases of non-cannabis products.

"Speak Easy’s practice of 'gifting' cannabis to customers who purchase certain items at their shop is illegal," CCD stated in a news release announcing the cease and desist. "The exchange of money in the transaction makes it a sale, not a gift, and is therefore illegal."

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After temporarily closing, the business reopened and announced it would comply with the CCD's order, saying through an attorney that gifting "will not occur on our premises."

But that promise was allegedly broken.

According to an affidavit, undercover agents with the Las Cruces/Doña Ana County Metro Narcotics unit purchased cannabis products from Jason Estrada at Speak Easy on two occasions — in July prior to the cease and desist order and in August after the reopening. The agents said they bought the products from Estrada directly without needing to buy another item.

Estrada, who said he is only contracted to do marketing for Speak Easy but has been identified as the owner by CCD and the city, was charged with a cannabis-related felony Sept. 24. Estrada is also listed as an organizer of the business.

Estrada first appeared in court Nov. 12 and later told the Sun-News he was not guilty. Court records show the case was dismissed without prejudice Jan. 7.

On Sept. 30, 2021, the city notified Estrada that Speak Easy's license would be revoked Oct. 30 since the store was in violation of city ordinance.

"Speak Easy's business license was subject to revocation because an investigation conducted by Las Cruces/Doña Ana Metro Narcotics … concluded that personnel from the Speak Easy, including the owner, Jason Estrada, possessed, distributed, sold, bartered, or gave away cannabis products" in violation of state law and city code, the city states in the resolution before the city council Tuesday.

Estrada appealed the decision through his attorney Oct. 27, sending the decision to the Las Cruces City Council. Speak Easy has remained open while the case is on appeal.

Estrada owns marketing company Everything Las Cruces and is running for Las Cruces mayor in 2023. He has accused the city of targeting him because of his run for office.

"This is a political witch hunt because I am running for Mayor and they can see I am going to win and take office. And turn this city around!" Estrada stated in a text message, referring all other questions about the revocation to his attorney.

In deciding the fate of Speak Easy's license, city councilors must decide whether Community Development "acted fraudulently, arbitrarily, or capriciously" and whether the department's decision "is supported by substantial evidence," according to the council resolution.

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Other representatives from Speak Easy were unable to be reached.

Community Development Director Larry Nichols declined to answer questions for this story. Matt Madrid, Estrada's attorney, did not return a phone call.

The city council, which normally meets on Mondays, will instead meet for a regular meeting at 1 p.m. Tuesday, Jan. 18, due to the Martin Luther King Jr. Day holiday. The meeting will be held in council chambers at City Hall, streamed on YouTube at Youtube.com/user/CLCTV20 and broadcast on Comcast cable channel 20.

Councilors on Tuesday will also vote on postponing the the development of an administrative program for the city’s trap-neuter-return policy for feral and unowned cats and vote on acceptance of the city's annual comprehensive financial audit report.

City of Las Cruces letter to Speak Easy notifying business of license revocation by Michael M on Scribd

Michael McDevitt is a city and county government reporter for the Sun-News. He can be reached at 575-202-3205, mmcdevitt@lcsun-news.com or @MikeMcDTweets on Twitter.

This article originally appeared on Las Cruces Sun-News: Las Cruces City Council could revoke license for cannabis-themed business Speak Easy