CCB approves global settlements for four facilities, $112,500 in civil penalties and voluntary license sales

The Cannabis Compliance Board approved a set of four related settlement agreements on Jan. 16, 2025, resolving allegations against four facilities that together cover seven licenses. The agreements include admissions to specified violations, corrective-action plans, civil penalties totaling $112,500 and voluntary sales of some licenses as part of the settlement terms.

Emily Bridal, senior deputy attorney general appearing as counsel for the CCB, said the settlements group cases by facility and noted the violations principally involved inventory discrepancies and, for one cultivation facility, use of an unauthorized plant growth regulator described in the agreements as "floral/ethephon." She told the board the licensees had self-reported certain issues and offered global resolution for all alleged violations across the seven licenses.

Under the written terms presented to the board, the licenses and penalties are: D186 (admission to one Category 3 violation for failing to keep required records; civil penalty $40,000; voluntary sale), D187 (admission to a Category 4 violation for employee training and a Category 5 violation for other requirements; civil penalty $17,500), Clark Natural (C165 and associated P108: admission to a Category 3 violation for use of an unauthorized pesticide; civil penalty $50,000; voluntary sale of C165 and P108), and 9 Naturals (C166, P107, and T065: admission to Category 5 violations for each license; civil penalty $5,000 each). The total civil penalties across the seven licenses are $112,500.

The agreements require corrective-action plans, removal or destruction of products if contaminated, and additional oversight steps. For two facilities that volunteered to sell their licenses, the settlement terms require submission of transfer-of-interest (TOI) applications within 90 days after approval, with provisions to seek up to two extensions for a combined 270 days if needed; if transfers are not completed within the agreed time frames, the settlement contemplates surrender of the licenses unless the board later amends the settlement.

Amanda Connor, counsel for the licensees, said the agreements "reflect a desire to put in place measures and corrective actions that allow the licensees to address the deficiencies without solely focusing on monetary penalties or putting these licenses out of business." She and the licensees asked the board to approve the settlements, noting the parties had negotiated the global resolution over nearly two years.

Board members discussed including a status check if extensions are requested so the board can review whether terms should be amended before a license is surrendered. The board approved the settlement agreements by voice vote; the record shows the motion carried and the agreements were accepted as presented at the meeting.