Sweeping bill benefiting marijuana operators in Nevada heads to governor

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An omnibus marijuana bill in Nevada awaiting the signature of Republican Gov. Joe Lombardo holds numerous benefits for industry operators, including expanding the retail market and lowering fees.

Senate Bill 277, approved by the Democratic-led Legislature, would usher in several significant regulatory changes, including:

  • The creation of a dual license for medical and recreational retailers, allowing them to serve any type of customer.
  • Increasing the purchasing limits of flower from 1 ounce to 2.5 ounces.
  • Increasing the purchasing limits of cannabis concentrates from an eighth of an ounce to a quarter of an ounce.

Consumers will be provided more retail access as well, a position long supported by the industry in nearly every legal U.S. market.

According to the 2023 MJBiz Factbook, Nevada is home to roughly 100 cannabis retailers, with two-thirds of them currently co-located and, thus, allowed to serve both adult-use and medical consumers.

Under the bill, all adult-use stores in Nevada would be able to serve the state’s nearly 12,800 medical marijuana patients.

The legislation also would reduce the maximum fees for some marijuana licenses, including:

  • Adult-use retail renewal fee from $6,600 to $5,000.
  • Initial adult-use cultivation fee: $30,000 to $3,000.
  • Adult-use cultivation renewal fee: $10,000 to $1,000.
  • Initial adult-use cannabis production fee: $10,000 to $3,000.
  • Adult-use cannabis production renewal fee: $3,300 to $1,000.
  • Initial adult-use testing lab fee: $15,000 to $5,000
  • Adult-use cannabis testing lab renewal fee: $5,000 to $3,000.

The bill would also pave a path for cannabis companies to hire workers with felonies on their records.

The legislation comes amid a slide in overall retail cannabis sales in Nevada and a significant drop in product prices.