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Are you wondering how to open a dispensary in Nevada? This page is dedicated to keeping you up-to-date on the latest news and information relevant to opening a cannabis business in Nevada. This includes helpful insights on what is to come next for the state. Whether you are an aspiring entrepreneur or an experienced business owner looking to enter the cannabis market, this guide will equip you with the knowledge and resources needed to succeed in Nevada’s cannabis industry.
Cannabis is legal in Nevada, with a history of progressive legislation that has shaped the state’s cannabis industry. Nevada voters approved the legalization of medical cannabis in 2000. In November 2016, voters further advanced cannabis legislation by legalizing it for adult use. This change permits adults to purchase, possess, consume, and, in certain situations, cultivate cannabis. In Nevada, adults aged 21 and older are allowed to possess up to one ounce of cannabis flower and 1/8 of an ounce of concentrate.
Nevada has a notable history regarding the legalization of medical cannabis. The journey began in 1998, when voters approved Question 9, an initiative to amend the state constitution allowing the use of medical cannabis. The initiative passed with 59% of the vote. This approval was the first step in a two-part process, as Nevada law requires a constitutional amendment to be approved in two consecutive elections. In 2000, voters reaffirmed their support for Question 9, thus officially amending the state constitution to permit medical cannabis use.
Following the constitutional amendment, the Nevada Legislature passed Senate Bill 453 in 2001, which established the regulatory framework for the medical cannabis program. This law allowed patients with certain medical conditions to possess and use cannabis with a recommendation from a physician.
In 2013, the state took a significant step forward by passing Senate Bill 374, which created a system for the establishment of medical cannabis dispensaries. This bill also included provisions for the cultivation, production, and testing of medical cannabis. The first medical cannabis dispensary in Nevada opened in 2015, marking the beginning of regulated access for patients.
On August 7th, 2023, the Nevada Supreme Court upheld cannabis as a Schedule I controlled substance, reversing a prior ruling. Although medical marijuana was added to the state constitution in 2000, it remained classified with dangerous drugs like fentanyl. The Nevada American Civil Liberties Union challenged this in 2022, but the court rejected their argument, maintaining its Schedule I status.
Nevada’s medical cannabis program has continued to evolve, with ongoing legislative updates to improve patient access and regulatory oversight.
Nevada’s path towards adult-use cannabis legalization began in November 2016, when voters approved Question 2, the Regulation and Taxation of Marijuana Act. This initiative legalized the possession, use, and cultivation of recreational cannabis for adults aged 21 and over, while also establishing a framework for regulating and taxing cannabis sales, initially overseen by the Department of Taxation. The state’s recreational cannabis market officially opened on July 1, 2017, with existing medical marijuana dispensaries being the first to receive licenses to sell recreational cannabis, leading to a surge in demand and robust early sales.
In 2019, Governor Steve Sisolak signed a bill creating the Nevada Cannabis Compliance Board (CCB), a dedicated regulatory body to oversee both medical and recreational cannabis. The CCB aims to ensure the integrity of the industry and maintain public safety standards. In 2020, Nevada initiated programs to promote social equity in the cannabis industry, targeting communities disproportionately affected by previous cannabis prohibition policies and providing opportunities for business ownership and participation in the legal market. Legislative advancements continued in 2021 with the passing of Assembly Bill 341, which allowed for the establishment of cannabis consumption lounges. These lounges provide legal spaces for adults to consume cannabis outside of private residences, enhancing the social aspect of cannabis use and supporting tourism.
Engaging in the business of a medical cannabis establishment requires a license issued by the Nevada Cannabis Compliance Board (CCB). This licensing process is designed to ensure that all establishments operate within the legal framework and maintain high standards of safety, security, and compliance.
Understanding the costs associated with obtaining and maintaining cannabis establishment licenses is crucial for anyone entering the industry. Nevada outlines the various fees for different types of licenses related to medical and adult-use cannabis establishments. Below is a detailed table summarizing the fees for initial issuance, renewal, and application processes.
License Type | Application Fee | Initial Issuance Fee | Renewal Fee |
Medical Cannabis Dispensary | $5,000 (one-time) | $30,000.00 | $5,000 |
Medical Cannabis Cultivation Facility | $5,000 (one-time) | $3,000.00 | $1,000 |
Medical Cannabis Production Facility | $5,000 (one-time) | $3,000.00 | $1,000 |
Medical Cannabis Independent Testing Laboratory | $5,000 (one-time) | $5,000.00 | $3,000 |
Adult-Use Cannabis Retail Store | $5,000 (one-time) | $20,000.00 | $5,000 |
Adult-Use Cannabis Cultivation Facility | $5,000 (one-time) | $3,000.00 | $1,000 |
Adult-Use Cannabis Production Facility | $5,000 (one-time) | $3,000.00 | $1,000 |
Adult-Use Cannabis Independent Testing Laboratory | $5,000 (one-time) | $5,000.00 | $3,000 |
Adult-Use Retail Cannabis Consumption Lounge | $100,000 (one-time) | $10,000.00 | $10,000 |
Independent Cannabis Consumption Lounge | $10,000 (one-time) | $10,000.00 | $10,000 |
Adult-Use Cannabis Distributor | $5,000 (one-time) | $15,000.00 | $5,000 |
Cannabis Establishment Agent Registration Card | $5,000 (one-time) | $150.00 | $150 |
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AB 341 established the social equity applicant designation, enabling eligible individuals to apply for licenses to operate independent cannabis consumption lounges. At least 10 of the first 20 licenses issued for these lounges must be granted to social equity applicants. To qualify, applicants must have at least 51% ownership in the business and must have lived for at least five years in a census tract with an Area Deprivation Index score of seven or higher and an incarceration rate in the 90th percentile or higher. Additionally, applicants or their immediate family members must have been convicted of a non-violent felony or misdemeanor cannabis offense.
Social equity applicants benefit from a 75% reduction in administrative processing fees. This initiative aims to promote inclusivity and fairness in the cannabis industry by supporting individuals from communities disproportionately impacted by past cannabis laws.
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