Nevada Cannabis Laws: Everything Businesses Need to Know

Note: We will keep this blog updated based on the changes or additions to the Nevada cannabis laws. 

With the commencement of medical marijuana sales in 2015 and the subsequent approval of Question 2 in November 2016, which legalized adult-use cannabis, Silver State emerged as a prominent player in the cannabis industry. 

The approval of Question 2 was a turning point, requiring Nevada to initiate recreational cannabis sales by January 1, 2018. 

However, the Nevada Tax Commission allowed businesses to launch an "early start" program as early as July 1, 2017. 

This forward-thinking approach not only generated substantial revenue for marijuana establishments but also contributed millions of dollars in tax revenue to the state and local governments. 

In this post, we'll provide you with an overview of the key Nevada cannabis laws for businesses, enabling you to run your business with compliance. 

Let’s dive right in! 

Information on Nevada cannabis laws for businesses 

The information mentioned in this post has been gathered from government websites and directories and explained for ease of compliance. 

Note: This post contains abbreviated information on Nevada’s medical and adult-use cannabis programs. 

1. General Nevada cannabis laws 

Nevada's cannabis laws have strict guidelines for medical and adult use. These Nevada marijuana regulations cover possession limits, cultivation rules, and more, ensuring a tightly controlled framework for marijuana in the state. 

Here’s a breakdown of general Nevada cannabis laws: 

• Nevada legalized medical marijuana for home cultivation in 2000, but medical marijuana sales began in 2015. 
• Adult-use cannabis was approved in November 2016. 
• The Cannabis Compliance Board serves as Nevada's cannabis regulatory agency. 
• The same board oversees packaging and labeling requirements. 
• Adults aged 21 and older are legally only allowed to possess up to 1 ounce of cannabis or up to ⅛ ounce of cannabis concentrate. 
• It is illegal to possess larger quantities unless you are a licensed vendor/retailer.
• Metrc is the cannabis tracking and tracing system used by Nevada. 
• Advertising by cannabis establishments that targets children is prohibited. 
• Cannabis possession is prohibited on federal property within the state, such as military bases and national parks. 
• Public consumption of cannabis, including in casinos and hotel rooms, is not allowed. 
• Only licensed dispensaries may sell cannabis. 
• The Vegas Tasting Room is currently the only legal cannabis consumption lounge in Las Vegas. 

2. Nevada cannabis laws for a retail license 

Nevada's retail marijuana licenses are crucial in regulating the adult-use cannabis market. These licenses come with specific categories: 

1. Retail Marijuana Store: Dispensaries with the exclusive right to sell to individual patients and customers. 
2. Retail Marijuana Cultivation Facility: Allows for the cultivation of marijuana, but all products must pass stringent testing. 
3. Retail Marijuana Production Facility: Permits the production of marijuana-infused products like edibles and extracts in Nevada. 
4. Independent Testing Laboratory: Labs dedicated to testing marijuana and products for banned or unsafe substances. 
5. Marijuana Distributor License: Modeled on Nevada's alcohol distribution system, this license is necessary for transporting adult-use marijuana. 

According to Nevada cannabis compliance laws, here are some requirements for opening a marijuana establishment: 

• Control of $250,000 in liquid assets. 
• No prior convictions for certain felonies or controlled substance distribution (with exceptions). 
• Submission of all relevant fees. 
• Location requirements: 1,000 feet from schools and 300 feet from community facilities. Here’s how you can find the best location for your cannabis business! 
• Proof of property ownership or notarized landlord permission. 
• Comprehensive information about owners, officers, employees, and volunteers. 
• Compliance with state and local zoning, land use, and signage ordinances. 
• Discreet signage and professional interiors resembling medical offices or pharmacies. 
• Secure entrances in compliance with fire codes. 

Fees for opening any of these marijuana establishments include application fees, initial issuance fees, and renewal fees, all varying by license type. Background checks and processing costs are also additional expenses. 

Additionally, marijuana support businesses, such as consulting, lighting, security, and staffing companies, may require licenses to operate. 

According to strict Nevada marijuana regulations, it’s mandatory to maintain stringent accounting and security measures to prevent illegal distribution.  

3. Nevada marijuana business licensing fees 

In Nevada, obtaining and renewing licenses for marijuana businesses comes with specific fees as outlined by state law: 

For medical cannabis establishments 

• Initial medical cannabis dispensary license: $30,000 
• Renewal of medical cannabis dispensary license: $5,000 
• Initial medical cannabis cultivation facility license: $3,000 
• Renewal of medical cannabis cultivation facility license: $1,000 
• Initial medical cannabis production facility license: $3,000 
• Renewal of medical cannabis production facility license: $1,000 
• Initial medical cannabis independent testing laboratory license: $5,000 
• Renewal of medical cannabis independent testing laboratory license: $3,000 

For adult-use cannabis establishments 

• Initial adult-use cannabis retail store license: $20,000 
• Renewal of adult-use cannabis retail store license: $6,600 
• Initial adult-use cannabis cultivation facility license: $30,000 
• Renewal of adult-use cannabis cultivation facility license: $10,000 
• Initial adult-use cannabis production facility license: $10,000 
• Renewal of adult-use cannabis production facility license: $3,300 
• Initial adult-use cannabis independent testing laboratory license: $15,000 
• Renewal of adult-use cannabis independent testing laboratory license: $5,000 
• Initial adult-use cannabis distributor license: $15,000 
• Renewal of adult-use cannabis distributor license: $5,000 

Additional fees 

• Applicants must pay a one-time, non-refundable application fee of $5,000 for both medical and adult-use cannabis licenses. 
• Actual application processing costs, including background checks, must be covered by applicants. 

4. Nevada cannabis laws for establishment agents 

Nevada's cannabis laws set clear guidelines for establishment agents responsible for selling cannabis and cannabis products to consumers. Here are the key requirements: 

Age verification 

Before selling cannabis or cannabis products, establishment agents must verify the consumer's age. This is done by checking a government-issued ID card with a photograph of the consumer. 

An approved identification scanner, endorsed by the appropriate Board Agent, is used to ensure the validity of the ID card. 

Consumer education 

Agents are required to offer any relevant consumer education or support materials to ensure that consumers are well-informed. 

Inventory Records 

Detailed information related to the sale must be entered into the inventory control system. This includes: 

• The quantity of cannabis or cannabis products sold. 
• The date and time of the sale. 
• The cannabis establishment agent's registration card number. 
• The license number of the cannabis establishment. 

To maintain Nevada cannabis compliance, following these rules is essential. It ensures the responsible and legal sale of cannabis and cannabis products to consumers in Nevada. 

5. Disclosures and warnings required under Nevada cannabis laws 

Nevada cannabis laws have specific disclosures and warnings mandates for cannabis products, with variations for medical and retail products. 

Here are the key requirements for all cannabis sales: 

1. Pesticide disclosure: Retail cannabis facilities must provide accompanying material that discloses any pesticides used during production and processing. 

2. Written notifications: All retail cannabis and cannabis product sales must include written notifications with the following warnings: 

• Keep cannabis and cannabis products away from children. 
• Cannabis and its products can cause severe illness in children. 
• Allowing children to ingest or access these products may lead to child welfare investigations or criminal prosecution for child abuse or neglect. 
• The intoxicating effects of cannabis may be delayed by 2 hours or more, and users should start with a small amount (no more than 10 milligrams of THC), then wait at least 2 hours before taking more. 
• This product may have intoxicating effects and can be habit-forming. Smoking is hazardous to your health. 
• Combining cannabis or its products with alcohol or other drugs, including prescription medications, may result in unpredictable impairment levels, and users should consult a physician before doing so. 
• Health risks may be associated with consuming these products. 
• Pregnant women should consult with a physician before using cannabis or its products. 
• Cannabis or its products can impair concentration, coordination, and judgment. Do not operate vehicles or machinery under their influence. 
• Ingesting any amount of cannabis or its products before driving may lead to criminal prosecution for driving under the influence. 

3. Font and style: All text used for accompanying materials and warnings must be in at least 12-point font and cannot be in italics. 

If you wish to run your cannabis business with compliance, you must follow these requirements under the Nevada cannabis program. 

6. Laws for advertising cannabis in Nevada 

Advertising cannabis in Nevada is subject to strict regulations. These regulations are aimed at promoting responsible use and preventing exposure to minors. 

Here are the key advertising laws Nevada marijuana businesses must know: 

1. Truthful advertising: Cannabis establishments must ensure that their advertisements are truthful and not misleading. 

1. No overconsumption promotion: Advertising should not promote the overconsumption of cannabis or cannabis products. 

1. No depiction of consumption: Advertisements cannot depict the actual consumption of cannabis or cannabis products. 

1. No depiction of minors: Advertisements must not depict individuals who appear to be less than 21 years old consuming cannabis or cannabis products, nor should they feature child-related elements like toys, characters, or cartoons. 

1. Audience age restrictions: Cannabis establishments are prohibited from advertising in any medium where 30% or more of the expected audience is under 21 years of age. 

1. Distance restrictions: Advertisements must not be placed within 1,000 feet of schools, playgrounds, public parks, or libraries, except if the advertisement was placed before these locations were within 1,000 feet. 

1. Transportation restrictions: Cannabis establishments cannot place advertisements on or inside public transportation vehicles or shelters. 

1. No "free" or "donated" promotions: Offering cannabis or cannabis products as "free" or "donated" without a purchase is prohibited. 

1. Warning requirements: All advertisements must include specific warnings prescribed by the Cannabis Compliance Board. These warnings must be visible and legible and include statements like "Keep out of reach of children" and "For use only by adults 21 years of age and older." 

Closer to success in Nevada's cannabis market with Treez 

Looking at so many Nevada cannabis laws can be daunting, but if you wish to thrive, you must comply with them. 

However, you don’t have to meet all these regulatory demands alone. There are cannabis POS systems designed to simplify compliance and streamline operations, and one such indispensable solution is Treez. 

Treez excels at data management, helps in efficient inventory tracking, and simplifies the often complex reporting processes demanded by regulatory authorities. 

While Treez ensures compliance, you have all the time to deliver exceptional products and services to your valued customers. 

Use Treez to ensure your cannabis business not only survives but thrives in this exciting industry.