Nevada has established regulations for the licensing and operation of cannabis consumption lounges, another important step in permitting tourists to partake legally in public.
The initial application and licensing process will start this fall, and lounges are expected to begin opening by the end of the year or early next year at the latest.
Although recreational cannabis use in Nevada has been legal since 2017, the state has only allowed for consumption at private residences. The state legislature passed a bill in 2021 to permit the on-site consumption of cannabis products at dispensaries or standalone lounges.
But it has taken until now for the Cannabis Compliance Board (CCB) to work with stakeholders on a regulatory framework that addresses public health, public safety and social equity.
Social equity provisions encourage those who have had a nonviolent marijuana conviction or have a close relative with one, among other requirements to operate a lounge with a discounted application fee.
"We should be proud of our state and our legislators for taking this on, said Brandon Wiegand, president of the Nevada Cannabis Association. "It is an extraordinarily complex issue with no shortage of opinions on the ideal approach. There is certainly more work to do, but the groundwork has already started getting laid, and we will continue to refine and improve upon it."
An estimated 40 to 45 licenses for lounges will be given to existing marijuana dispensaries, and another 20 will be available for independent lounges, including 10 to social equity applicants.
Nevada will be the first state to have cannabis-infused food in lounges. "That is incredibly exciting, but being first, I have to imagine, we will need to refine how that works," Wiegand said.
Lounges will not serve alcohol, tobacco or nicotine products. They cannot be licensed in casinos or within 1,500 feet of such gaming establishments. Casinos do not permit marijuana, which is still illegal under federal law.
Other rules that have been agreed upon include:
• Use is limited to single servings of 3.5 grams of "usable cannabis."
• Lounges must have a plan to recruit and retain a diverse board and staff and to limit workers' exposure to secondhand smoke.
• Lounges must work to prevent guests from driving while impaired, such as partnering with a rideshare company.
• Cannabis consumption may not be visible from the outside of the business.
• Higher-concentration products must include a disclaimer that they are not intended for inexperienced users.
• Patrons may not take unused cannabis products with them when they leave the lounge.