After clearing the Nevada State Assembly last week, the Nevada legislature has sent a bill to legalize cannabis consumption lounges to the governor’s desk, and it has been signed into law.
The legislation advanced through the Senate in a 17-3 vote on Monday.
Sponsored by Assemblyman Steve Yeager (D), the bill creates two new licensing categories for cannabis business in the state. One will be for “retail cannabis consumption lounges,” and the other will be an “independent cannabis consumption lounge.”
Existing retailers can apply for the former license and sell products that could be consumed on-site by adults 21 and older. Independent lounges can enter into a contract with an existing retailer to purchase and prepare ready-to-consume cannabis products for resale.
Nevada’s Cannabis Compliance Board will also be responsible for creating regulations for on-site facilities and collecting fees for license applicants. Businesses that qualify as social equity applicants will have a reduced fee.
According to the legislation, a person “who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis” is considered a social equity applicant.
The Senate also adopted an amendment, which the House later concurred on, stipulating that local governments can adopt regulations for consumption lounges that are “more restrictive” than the state rules.
Governor Steve Sisolak (D) is a strong supporter of the state’s cannabis industry and signed the proposal.
“We are thrilled that after the long wait, Nevada will finally be home to consumption lounges,” said Larry Scheffler, co-CEO of Planet 13, a vertically integrated mairjuana company in Nevada. “We’ve long believed that tourists needed a safe, legal and enjoyable place to consume cannabis and have been planning for a consumption lounge and club at the SuperStore since the bill was originally proposed two years ago.”
Additionally, the Nevada legislature also sent recent bills to the governor that would reduce cannabis penalties for minors, rescind per se driving thresholds for tetrahydrocannabinol (THC) and allow dispensaries to have curbside pickup.
Adding the new social use license types statewide and giving consumers this option could boost cannabis and other tax revenues.
The governor has also committed to promoting equity and justice in Nevada’s marijuana law. For example, last year, he pardoned more than 15,000 people who were convicted for low-level cannabis possession.
