Nevada voters legalized medical marijuana on the ballot in 2000, but it wasn’t until 2013 that the state Legislature passed a law allowing for dispensaries.
Voters on Nov. 8 passed ballot Question 2, giving adults in Nevada the ability to possess up to an ounce of pot. The new law – known officially as the Regulation and Taxation of Marijuana Act – took effect in Nevada on January 1, 2017.
Under the new law, only business that have medical pot certificates are allowed to apply for recreational licenses for the first 18 months and Nevada’s Department of Taxation has begun accepting applications from existing medical cannabis businesses interested in selling recreational cannabis under the state’s “early start” program.
The Nevada Department of Taxation has until Jan. 1, 2018 to hammer out the specifics of regulating the state’s marijuana industry. Dispensaries can officially begin applying for recreational cannabis licenses after those regulations are put into place.
Licensing costs include $5,000 to apply for a license, plus an additional fee if the company is awarded a license:
- $20,000 for retail stores
- $30,000 for cultivation facilities
- $10,000 for production facilities
- $15,000 for testing labs
- $15,000 for distributors
Cannabis Businesses in Nevada
There are four kinds of medical marijuana establishment definitions in Nevada:
Dispensary: As per NRS 453A.115, a business that is registered with the Division and acquires, possesses, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials to the holder of a valid registry identification card.
Cultivation Facility: As per NRS 453A.056, a business that is registered with the Division, and acquires, possesses, cultivates, delivers, transfers, transports, supplies or sells marijuana and related supplies to a medical marijuana dispensaries; facilities for the production of edible marijuana products or marijuana-infused products; or other cultivation facilities.
Nevada medical cannabis cultivation in a greenhouse is acceptable if the greenhouse:
• is an “enclosed, locked facility…” (NRS 453A.352)
• has adequate lighting in all areas (NAC 453A.608)
• if dim lighting is required, the MME has a written policy explaining the reason (NAC 453A.608)
• has adequate ventilation and equipment to control air pressure, , microorganisms, dust, humidity and temperature when appropriate for the manufacture, processing, packaging or holding of marijuana or marijuana products (NAC 453A.608)
• is maintained in a state of good repair (NAC 453A.616)
• has restricted access, is enclosed and locked, with access to agents only (NAC 453A.472)
• is such that the marijuana growing at the facility cannot be observed from outside the facility (NAC 453A.472)
• does not emit an odor that is detectable from outside the facility (NAC 453A.472)
Production of Edible Marijuana or Marijuana Infused Products: As per NRS 453A.105, a business that is registered with the Division pursuant to NRS 453A.322, and acquires, possesses, manufactures, delivers, transfers, transports, supplies, or sells edible marijuana products or marijuana infused products to medical marijuana dispensaries.
Independent Testing Laboratory: As per NRS 453A.107, a business that is registered with the Division to test marijuana, edible marijuana products and marijuana- infused products. Such an independent testing laboratory must be able to determine accurately, with respect to marijuana, edible marijuana products and marijuana-infused products, the concentration therein of THC and cannabidiol, the presence and identification of molds and fungus, and the presence and concentration of fertilizers and other nutrients.
State lawmakers are expected this year to create a regulatory structure to impose a 15 percent tax on recreational cannabis sales, with revenue going to regulate the substance and support education.
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