Open a Cannabis Consumption Lounge in Nevada
A new cannabis regulation bill in Nevada has created two new license types for cannabis businesses in the state. So, if you want to get a cannabis consumption license in Nevada, now is the time to consider an application. The state offers two consumption license types, this includes a “retail cannabis consumption lounge” and an “independent cannabis consumption lounge.” Read along, as our cannabis consultants in Nevada explain the different rules and regulations for this new and profitable license type.
Nevada Cannabis Consumption Lounge License
First, our Nevada Cannabis Consultants go over exactly what you can do with a cannabis consumption lounge license in Nevada. If you operate a cannabis consumption lounge in Nevada, all products must be “ready-to-consume” cannabis products or a “single-use” cannabis products.
Ready-to-consume Cannabis Products
A ready-to-consume cannabis product is an adult-use edible cannabis product. This product needs to be prepared on the premises or a cannabis consumption lounge. Our cannabis consultants in Nevada summarize Ready-to-consume products as:
- Presented in the form of a foodstuff or beverage
- Sold in a heated or unheated state
- Intended for immediate consumption
Single-Use Cannabis Product
A single-use cannabis product is a type of cannabis product that the Board determines as appropriate for consumption.
As mentioned above, Nevada offers two different types of licenses for consumption lounges. This includes:
Retail Cannabis Consumption Lounge in Nevada
If you apply for a retail cannabis consumption lounge in Nevada, you are able to obtain product from the adult-use cannabis retail store to which the retail cannabis consumption lounge is attached or adjacent.
Those with a retail cannabis consumption lounge in Nevada can sell single-use cannabis products to consumers. Additionally, you can prepare ready-to-consume cannabis products and sell these products to customers as well.
However, if you have a retail lounge, you have to make sure that only single-use cannabis products or ready-to-consume products are available at that lounge.
Contact our marijuana consultants in Nevada to learn more about applying for this cannabis consumption lounge license type.
Independent Cannabis Consumption Lounge
On the contrary, if you want an independent cannabis consumption lounge in Nevada, you have to enter into a contract within one or more adult-use cannabis retail stores in order to sell to the independent cannabis consumption lounge.
This consumption lounge is not attached or immediately adjacent to an adult-use retail store.
How to Win a Marijuana License in Nevada
The Board in Nevada adopts rules and regulations that establish a criterion of merit and scoring guidelines that evaluate applications for both types of cannabis consumption lounges. With that, the scoring for these licenses is competitive. Make sure to work with our cannabis consulting team for a successful and easy cannabis application process.
The scoring guidelines establish a minimum required score for the issuance of this license type.
For an independent cannabis consumption lounge in Nevada, you must include:
- The diversity on the basis of race, ethnicity, or gender of the applicant or the persons who are owners/officers of the cannabis license. If you need help building a team for your cannabis application, contact our marijuana consultants.
- Whether the applicant qualifies as a social equity applicant
- Any other criteria the Board finds relevant
The board shall not issue more than 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge. Also, at least 10 of the first 30 adult-use cannabis licenses for independent cannabis consumption lounges must go to social equity applicants.
Also, not more the 50 percent of the licenses allocated by the Board can be issued to retail cannabis consumption lounges. So, at least 50 percent of licenses must be issued to independent cannabis consumption lounges. And, 50 percent of these licenses must go to social equity applicants.
Lastly, if the number of qualified applicants in a local governmental jurisdiction exceeds the number of licenses allocated to that jurisdiction, the Board shall issue a lottery for qualified applicants who are not social equity applicants.
Additional Regulations for a Consumption License
The board will not issue:
- More than one adult-use cannabis establishment license for an independent cannabis consumption lounge to any one person
- More than one adult-use cannabis establishment license for a retail cannabis consumption lounge to any one person
- Lastly, both an adult-use cannabis establishment license for a retail cannabis consumption lounge and an independent cannabis consumption lounge to any one person
Licensing and Application Fees
For the initial issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge, the fee is $10,000. The renewal for this license type is $10,000 as well.
For the initial issuance of an adult-use cannabis establishment license for an independent cannabis consumption lounge, the fee is $10,000. The renewal is $10,000 as well.
How to Reduce Fees for a Cannabis Consumption License in Nevada
The board is able to reduce fees for the initial issuance and renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge.
If you are a social equity applicant, the Board can not reduce the fee by more than 75 percent of the fee paid by an applicant who is not a social equity applicant.
Rules for a Cannabis Consumption Lounge
There are certain rules and regulations you need to follow when you operate a cannabis consumption lounge in Nevada. For example, you must:
- Install a ventilation and exhaust system which is capable of sufficiently expelling odors and reducing volatile organic compounds. Additionally, you must maintain the standards for air quality in the lounge.
- Secondly, you have to train each employee of the lounge about paraphernalia, the potency and absorption time, and the effects of single-use cannabis products and ready-to-consume products.
- Thirdly, you must submit a security plan to the Board. This plan must represent that it provides adequate security and lighting.
- You must also submit a plan to the Board that sets forth protocols and procedures that deter customers from driving under the influence.
- Lastly, you need a plan that ensured cannabis and cannabis products are not sold or otherwise distributed in the cannabis consumption lounge
Also, you need to know the procedures to dispose of cannabis or cannabis products that are left at the cannabis consumption lounge.
For additional help on any of the above business plans, contact our cannabis consulting firm.
With a cannabis consumption lounge license in Nevada, you can sell food and beverages to customers in the lounge. You can also sell any other item which does not contain cannabis or cannabis products and is not intended for use with the products to customers. Additionally, customers can smoke and consume marijuana within these lounges. Lastly, your cannabis consumption lounge can provide live entertainment.
Cannabis License Consulting Services in Nevada
Lastly, if you have an interest in this license type, make sure to contact our cannabis consulting firm. We offer a variety of services that can help you win this license. It is never too early to get a head start on an application.
If you want to see the rules and regulations for this license type in detail, take a closer look at the bill.
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