Nevada State Regulation Analysis
Governor Brian Sandoval has signed the bill SB374 and when the bill goes into effect, it is estimated up to 60 dispensary licenses being issued in the state. .
SB374 would charge application and annual fees for each medical marijuana
business. The businesses could be FOR-PROFIT or NON-PROFIT and would be selected following a competitive, merit-based application process.
In addition, patients could cultivate if they do not live near a dispensary, if they cannot travel to one, or if the dispensaries near them do not have an adequate supply of marijuana or the strain that works for the patient. Home cultivation from patients is only allowed if medical marijuana dispensary is not within 25 miles of the patient’s residence. OUT-OF-STATE patient recommendations are allowed to be served.
Medicalmarijuana sales would be subject to a 2% excise tax at the wholesale
level, along with a 2% excise tax at the retail level. Standard sales taxes should also apply. Seventy-five percent of the tax revenue would go to education and
25% to regulatory oversight. S.B. 374 would reduce fees for patients’ registry identification cards from $200 to no more than $100.
CANNA PROPOSALS analysis on application requirements to open a dispensary
- Proposal submission will require a specific set of Dispensary Business Plans once RFP applications are issued. (To be determined until finalized regulations)
- Bill will require any medical marijuana establishments to be sited at least 1,000 feet from existing schools and at least 300 feet from certain existing community facilities. All establishments will be in industrial zones.
- Issued registration certificates and registration cards are non-transferable.
- Bill will require medical marijuana establishments to maintain a completely integrated electronic verification and inventory control system. Insofar as is practicable,to monitor the chain of custody and current whereabouts, in real time, of medical marijuana from the point that it is harvested at a cultivation facility and MIP facility until it is sold at a medical marijuana dispensary.
- Laboratory testing is required on products for pesticides/mildew, THC/CBD content, overall quality, and potency.
- Marijuana must be cultivated in an enclosed, locked facility.
- (MIP) Marijuana-Infused Products are allowed to be dispensed.
- Patients are allowed to purchase medication at 2.5 ounces every 2 weeks, 10 ounces of product every 2 months. A maximum for the amount of edibles a patient can have will be created by the department.
State financial requirements to open a dispensary in Nevada
- There will be a non-refundable application fee of: $5,000.00
- First medical marijuana establishment registration certificate for a medical marijuana dispensary: $30,000.00
- First medical marijuana establishment registration certificate for a cultivation facility: $3,000.00
- For the initial issuance of a medical marijuana establishment registration certificate for a facility for the production of edible marijuanaproducts or marijuana-infused products: $3,000.00
- For the initial issuance of a medical marijuana establishment registration certificate for an independent testing laboratory: $5,000.00
- Evidence that the applicant controls not less than $250,000.00 in liquid assets to cover the initial expenses of opening the proposed medical marijuana establishment.
Total: $5,000.00 REQUIRED to submit proposal and application form
CANNA PROPOSALS recommends that between $500,000.00 – $750,000.00 in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans and paying all state financial requirements.
This may or may not include the amount needed for retail location and cultivation site. It is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a dispensary license to operate. Please contact us for more information on how to open a dispensary in Nevada.