LAS VEGAS, Nev. (FOX5) – Six cannabis lounge applicants are not eligible for a license after the board realized the applicants were out of compliance.
The Nevada Cannabis Compliance Board said that the board performed an audit on the social-equity applicants for lounge licenses. During the audit, they found that six of the ten previously-approved applicants didn’t meet the residency requirements for an application.
Documents from the CCB show that social equity applicants must have resided in a “disproportionately impacted area” (DIA) for no less than the previous five years and provide documentation of residency via items like bank statements or bills. A DIA is partially calculated by whether the area has an incarceration rate in the 90th percentile, or roughly 3.3%. The CCB said the incarceration rate was originally miscalculated, which showed the six applicants out of compliance.
The six applicants who didn’t meet the residency requirement were:
- NV Cloud 420 Lounge LLC, City of Las Vegas
- GGCPA SE Inc, Nye County
- Lyxe Consulting LLC, City of Las Vegas
- City Lights Production LLC, Unincorporated Clark County
- Royal Tree TLC LLC, City of Las Vegas
- GGCPA SE 3 Inc, Unincorporated Clark County
Through the audit, the board then found eight of the 20 undrawn applicants from 2022 did meet the residency requirement. The board said they are in the process of contacting those applicants with the option to enter a random drawing for the now six open license spots.
The board said they have also contacted the six other applicants to inform them that they can’t proceed in the licensing process.
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