Nevada board approves settlement for Empire Company cannabis licensing violations

The Cannabis Compliance Board (CCB) convened on April 17, 2025, to address several agenda items, primarily focusing on compliance issues within the cannabis industry in Nevada. The meeting began with the announcement that two items, a request for a transfer of interest from Premium Products LLC and a consideration for a conditional license for a cannabis consumption lounge, were pulled from the agenda, leading to no discussion or questions from board members regarding these topics.

The primary focus of the meeting shifted to item five, which involved a proposed settlement agreement concerning disciplinary action against Empire Company LLC. Emily N. Bordelov, senior deputy attorney general, presented the case, detailing the background and procedural history of the Empire Company, a cannabis facility located near Tonopah, Nevada. The facility had previously held multiple licenses for both cultivation and production but was placed under court-ordered receivership due to compliance issues identified during an audit in late 2023.

Bordelov explained that the investigation led to a summary suspension of Empire's operations, prompting the appointment of a receiver, Kevin Singer. Following this, discussions between the CCB and the receiver's counsel resulted in a settlement agreement aimed at resolving the allegations without the need for formal complaints. The allegations included violations related to security measures, inventory control, and proper storage of cannabis products.

As part of the settlement, Empire admitted to two violations and agreed to pay a total of $30,000 in civil penalties, divided equally between its licenses. The payment is due within 30 days following the approval of the settlement by both the CCB and the district court, with a hearing scheduled for April 24, 2025.

Bordelov emphasized that mitigating factors, such as Tonopah Farm's investment in compliance efforts and the operational changes made since the receivership, were considered in determining the settlement terms. The CCB staff approved a plan of correction submitted by Empire, which was crucial for lifting the summary suspensions and ensuring compliance moving forward.

The board was asked to approve the settlement agreement, with Bordelov and other legal counsel available for any questions. The meeting concluded with the board's consideration of the proposed resolution, marking a significant step in addressing compliance issues within the state's cannabis industry.