Nevada Awards Cannabis Lounge Licenses, Less Than Half Of The Social Equity Licenses In Nevada Are Operational & More Cannabis Updates

Here are the most important cannabis regulatory updates of the week.

Nevada Awards Social Equity Licenses For Cannabis Lounges 

The Nevada Cannabis Compliance Board (CCB) issued six licenses for cannabis consumption lounges reserved for social equity applicants. Kora Cannabis Lounge and Nevada Consumption Lounge received licenses, with Nevada Consumption Lounge securing three. The other recipients, listed as applicants 2, 4, 5 and 6, chose not to disclose their identities. This lottery was a rerun of a previous one where the initial winners were later found to be ineligible for the licenses, reported Green Market Report.

The CCB used random number generator software to award these licenses after an audit disqualified six previous applicants for not meeting residency requirements. In July, the CCB invited eight undrawn applicants to join this selection round, and all opted in. To ease the financial burden, the CCB is returning the $2,500 application fee to social equity applicants who are not moving forward in the process.

Read Also: Popular Maryland Resort Town, Ocean City, Will Soon Have Its Own Cannabis Dispensaries

Illinois Social Equity Program Is Not Doing Great

Illinois' social equity program, praised by Governor J.B. Pritzker as a potential “national standard,” faces significant hurdles. Data from the Illinois Department of Financial and Professional Regulation (IDFPR) and the Department of Agriculture (DOA) reveals that less than half of the social equity licenses issued are operational, noted Green Market Report.

As of late July, only 111 out of 199 social equity dispensary permits are operational. Craft growers, infusers and transporters fare even worse, with less than 50% of permits active.

Securing capital remains a major obstacle for many licensees. Dr. Mila Marshall, a social equity advocate, highlighted the high costs, particularly for craft growers who need between $3 million to $5 million to start operations. "It's super expensive for growers, so people have not been able to secure capital. Investors are kind of hesitant," Marshall said.

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Update On Massachusetts Cannabis Commission Drama

The Massachusetts Cannabis Control Commission (CCC) has been under scrutiny for some time and now Commissioner Kimberly Roy is calling for a forensic audit amid concerns about uncollected or missing fees. Roy, the commission's treasurer, stressed the need for certified public accountants to review the agency's financial operations and fee collections, reported CommonWealth.

“This is not a ‘gotcha moment,' but an effort to modernize the commission and ensure financial integrity,” Roy said. The commission, operating without a permanent chair, has faced criticism as a “rudderless ship” by the state’s Inspector General. Lawmakers have declined to place the CCC under receivership but plan to hold hearings on the agency's operations this fall.

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