CCB approves Nevada Consumption Lounge as first social-equity lounge; conditionally approves Limo Joint after questions about hemp and mushroom sales

The Cannabis Compliance Board on May 15 granted a conditional license to Nevada Consumption Lounge LLC, the first social-equity consumption-lounge applicant to appear before the board, and separately approved a conditional license for Limo Joint LLC after extended questions about past online sales of hemp-derived products and Amanita muscaria items.

The board heard staff summaries and applicant presentations before voting. David Staley, division chief of investigations for the CCB, told the board that Nevada Consumption Lounge LLC (application ACONA2200107) submitted the information required for conditional licensure and that “no areas of concern were identified with this investigation.” Co-owners Jamella Brown and Natania Bennett told the board they plan a hospitality-focused lounge in Clark County with live entertainment, mocktails, food options and a VIP offering; they gave the lounge address as 1395 East Tropicana. Member Berry moved approval; the motion carried.

Why it matters: Nevada is allowing on-site consumption venues for the first time under the new licensing framework. Conditional licensure permits applicants to finish local approvals and pass final inspections by the CCB’s audit and inspection team before opening.

Limo Joint LLC: staff concerns, applicant responses and board conditions

The second consumption-lounge matter prompted more extended scrutiny. Chief Staley summarized prior issues identified when Limo Joint previously appeared before the board: websites affiliated with owner Andrew Genuso (also referenced in the record as Genusa/Genuso) had sold hemp-derived products that tested above the 0.3% THC legal limit and, later, listed Amanita muscaria mushroom gummies after an FDA memo restricting Amanita muscaria in food products. Staley told the board that staff had sent a cease-and-desist letter after investigators purchased products that tested above the legal limit; when staff later discovered Amanita muscaria product listings they requested explanation. Staley said the company notified the CCB that it had ceased the hemp sales on 04/01/2024 and that the Amanita listings were removed after staff inquiry. He summarized staff concern that revenue from those website sales had funded the applicant’s pursuit of a consumption-lounge license and that the pattern of past business practices raised questions under the suitability standard referenced in the record (NRS 678B.200 paragraph 2).

Counsel Amanda Connor and owner Andrew Genuso said corrective steps had been taken: the websites with the challenged products were taken down or the products removed, and Genuso told the board he would sell the websites and related businesses within 60 days if the board approved the conditional license. Connor and Genuso said they intended to operate a compliant, regulated lounge and welcomed conditions and oversight by CCB staff.

Board members pressed the applicant on whether past business practices signaled an ongoing pattern and asked what would change if the lounge venture failed financially. Vice Chair Durrett and other members said they wanted assurance that the applicant would not return to selling noncompliant products. When asked by staff if the company had taken corrective action, David Staley said, “Upon notice, they have taken corrective action.” Counsel reiterated the applicant’s stated intent to divest online operations and operate within CCB rules.

The board approved Limo Joint’s conditional license with an explicit direction that staff monitor the applicant and provide a follow-up report; the board accepted a friendly amendment requiring staff to provide a status report within two years or upon completion of the conditional-to-final process. The motion passed with one recorded dissent. Member Merritt recorded the no vote on the record; other members voted in favor.

What happens next

A conditional license permits the applicant to continue required local approvals and to proceed to final inspection and licensure only after CCB inspection and audit divisions confirm compliance. The board and staff made clear they will continue to scrutinize any related businesses and can impose discipline or refuse final licensure if conditions are not met.

Provenance (transcript excerpts): the staff summary of the two lounge applications begins with David Staley (s=367.635–s=404.58); the Nevada Consumption Lounge applicant presentation runs through the applicants’ remarks and the board vote (s≈504.42–s≈1280.08). The Limo Joint presentation and extended deliberation begin with staff summary at s≈1310.36 and continue through the motion, amendment and vote (s≈1310.36–s≈3262.82).