After the 2016 election, Nevada legalized recreational cannabis, in addition to the states medical-marijuana program. As a result, possession and consumption of cannabis by adults became legal in January of 2017.
Currently, the Cannabis Compliance Board, known as the CCB, serves as Nevada’s cannabis regulatory agency. The CCB oversees and regulates Nevada’s legal medical and adult-use cannabis programs. The CCB’s focus is on ensuring the protection of public health and safety and it has created and implemented a strict and rigorous regulatory system.
If you are operating a legal cannabis business in Nevada, your company must follow the state regulations, enforced by the CCB as well as any applicable local jurisdiction ordinances. In terms of licensing, the licensing process typically includes a background check, fingerprinting, proof of financial responsibility, and facility and security plans. Only businesses licensed by the State for cannabis operations can legally grow, manufacture, test, distribute, or sell cannabis in Nevada. The CCB has to open up an application window to issue cannabis establishment licenses. If an application window is not currently open, people interested in entering Nevada’s cannabis market can purchase an existing license, subject to obtaining approval from the CCB.
In addition to issuing and renewing cannabis licenses, the CCB enforces a regulatory scheme for cannabis programs in Nevada. The regulations cover many aspects of the cannabis businesses including, but not limited to, inventory control, security, training, packaging, and advertising. With regards to cannabis packaging regulations require certain items aimed at protecting minors. For instance, the packaging must be child-resistant and include statements like “Keep out of reach of children” or “For use only be adults 21 years of age or older”.
The CCB also enforces marketing restrictions including restrictions aimed at protecting children. For instance, there are regulations regarding use of cartoons or mascots that may be popular with minors, advertising near youth-centered facilities, and making false health or medical claims. These restrictions typically apply to advertising in any medium, including online. Hence, online marketing campaigns, social media ads, and other digital advertising efforts are subject to these cannabis regulations in addition to other advertising restrictions.
The cannabis laws and regulations are constantly in flux, at both the federal and state levels. Hence, businesses must adapt their operations, update compliance programs, and manage the increased risk that comes with the market. For businesses who are multi-state operators, these changes often lead to complex and overwhelming operations that usually require a team of state-specific legal and compliance experts. If you are operating a cannabis business in Nevada, contact Connor and Connor for a consultation today regarding operating your business compliantly.
Sources:
https://www.flowhub.com/learn/how-to-open-a-dispensary-in-nevada
https://www.flowhub.com/nevada-cannabis-laws
https://www.leg.state.nv.us/NRS/NRS-678A.html
https://www.leg.state.nv.us/Session/82nd2023/Budgets/4207.pdf
https://www.velosio.com/blog/cannabis-compliance-challenges-and-how-to-overcome-them/
