Although Nevada’s voters approved the legalization of medical marijuana over fifteen years ago, the Nevada Legislature only recently created a legal process for marijuana patients to purchase their medicine. With the legalization of licensed and regulated medical marijuana businesses, there has been a tremendous growth in Nevada’s marijuana industry. However, given the highly regulated nature of Nevada’s marijuana industry, opening a marijuana business is much more difficult than opening other types of businesses. The following has been prepared by our experienced Nevada marijuana attorneys to provide you with a basic overview of Nevada’s marijuana laws and industry.
The four types of Medical Marijuana Businesses
Nevada has created four separate and distinct marijuana licenses. The most visible form of medical marijuana businesses in Nevada are dispensaries, which are licensed to sell medical marijuana to legal Nevada and non-resident marijuana patients. Dispensary licenses were limited in number by the State Legislature. The majority of the dispensary licenses (48) were allocated to Clark County, which is where Las Vegas is located. All marijuana and marijuana products sold in a licensed marijuana dispensary must be grown, produced, and tested within Nevada at a state licensed facility.
Facilities involved in the cultivation of marijuana must have a state issued cultivation license. Facilities producing extracted or marijuana infused products such as edibles, must have a marijuana production license. All products grown and produced in Nevada must be tested at a Nevada licensed marijuana testing facility, which are subject to some of the toughest standards in the world. No matter which type of medical marijuana business you are planning on opening, you must go through a rigorous application process with the state and local authorities before beginning operations.
Understand the Cost and Process of Application
Nevada adopted a competitive application process for marijuana licenses. The Nevada Legislature limited the number of dispensary licenses that could be granted, but the number of cultivation, production and testing facilities was left unlimited. However, the state application period was limited to ten days per year and is subject to the discretion of the State of Nevada authorities.
The state application fees are currently set at $5,000.00 per license, irrespective of the license type. Applicants must demonstrate they have at least $250,000.00 in liquid assets for startup capital, proof that you own the property where you plan to open your business, or that you have permission from the landlord to operate a marijuana facility on the property and information needed to perform background checks on all potential owners and employees. You must also submit a very detailed plan for procedures related to lawfully operating a medical marijuana establishment, as well certification that your business will be in compliance with local ordinances and zoning codes for such establishments. In addition to the state regulations, you must also be approved by the local authorities who have adopted very strict standards of their own along with additional application and licensing fees. Once you’ve received approval from all state and local authorities, you may begin business operations however you will be subject to continuing inspections and auditing.
Find Out Other Guidelines for Operating a Marijuana Business
After you begin operations, you still must be diligent in following any rules and regulations necessary to maintain your registration. Business owners must make sure that all of their employees are eligible to work in a medical marijuana establishment and that they only sell to those persons licensed to buy medical marijuana. Anyone working in an establishment must be at least 21 years old and be able to pass a background check. All sales of marijuana must be tracked by the establishment and in accordance with Nevada law.
Retain legal counsel experienced in Nevada’s marijuana industry
Opening a medical marijuana business is extremely complicated. It is a huge investment of your time and money, both of which may be wasted if you don’t get governmental approval. Hiring an experienced attorney can help you navigate the process and increase your chances of success. The attorneys at Connor & Connor, PLLC are very experienced with Nevada’s complicated marijuana laws.
Our expert attorneys will help guide you through the medical marijuana business application process to be certain you’re in compliance with all Nevada medical marijuana laws so that your application is more likely to be approved. Contact Connor & Connor today to schedule a consultation about opening a medical marijuana business.