During the 2019 Legislative Session in Carson City, the Governor championed a sweeping retooling of the State’s marijuana regulatory mechanism. With the passage and signing of Assembly Bill 533, Nevada created the Cannabis Compliance Board (CCB).

Modeled after the Nevada Gaming Control Board, the CCB will be tasked with regulation and oversight of the cannabis industry in Nevada. The CCB may adopt regulations including, but not limited to:

  • financial requirements for licensees;
  • requirements for licensees or registrants;
  • policies and procedures to ensure that the cannabis industry in this State is economically competitive, inclusive of racial minorities, women, and persons and communities that have been adversely affected by cannabis prohibition and accessible to persons of low-income seeking to start a business;
  • policies and procedures governing the circumstances under which the Board may waive the requirement to obtain a registration card;
  • reasonable restrictions on the signage, marketing, display and advertising of cannabis establishments; and
  • provisions governing the sales of products and commodities made from hemp.

Additionally, the CCB must establish a pilot program for identifying opportunities for an emerging small cannabis business to participate in the cannabis industry. In addition to the previously mentioned topics, the CCB will also generally regulate the review and approval of applications for additional cannabis establishment licenses; the review and approval of agents and owners of the cannabis facilities applying for agent cards; the oversight and inspections of cannabis facilities; and the oversight of the transfer of licenses.

The Governor is responsible for appointing members to the CCB as well as the Cannabis Advisory Commission, which is responsible for studying issues related to cannabis and making recommendations to the CCB. According to the Nevada Revised Statutes (NRS), the CCB will consist of:

  • One certified public accountant,
  • One investigator or law enforcement officer,
  • One licensed attorney,
  • Someone with experience in the cannabis industry, and
  • One licensed physician.[1]

The members of the CCB are prohibited from being a member of the Legislature,[2] a member of any political convention or a member of any committee of any political party, or engage in any party activities.[3] Finally, the members of the CCB are entitled to receive an annual salary of $20,000 each and the Chair of the Board is entitled to receive an annual salary of $27,500.[4]

Currently, the Governor has appointed three members to the CCB; Jerrie Merritt, former Supreme Court Justice Michael Douglas, and former Gaming Control Board Chairman Dennis Neilander.[5] Additionally, the Governor appointed Tyler Klimas as the Executive Director of the CCB, who will be responsible for the conduct of the administrative matters of the CCB.[6]

According to the enabling legislation and the NRS chapters, the CCB will come into effect on July 1, 2020. Until then, the Nevada Department of Taxation is responsible for overseeing Nevada’s growing cannabis industry.

[1] NRS 678A.390.

[2] https://thenevadaindependent.com/article/sisolaks-third-appointee-to-five-member-cannabis-compliance-board-is-nevada-banker

[3] https://mynews4.com/news/local/tyler-klimas-becomes-executive-director-of-the-cannabis-compliance-board

[4] NRS 678A.360 (5)-(9).

[5] NRS 678A.360 (2).

[6] NRS 678A.380 (1).