Nevada Expands Cannabis Consumption Lounges with Three New Approvals

Summary: Nevada’s Cannabis Compliance Board (CCB) has given the green light to three additional applications for cannabis consumption lounges. This includes two concepts in the Las Vegas area. The approved applications belong to Deep Roots Harvest and Global Harmony, both of which operate cannabis stores in Las Vegas, and KV Group located in the southern Nevada town of Pahrump. This brings the total number of approved consumption spaces in Nevada to seven. The board also made adjustments to the air-ventilation standards for marijuana consumption, offering clearer guidelines for operators.

Cannabis Consumption Lounges Gain Momentum in Nevada with New Approvals

Nevada has been progressively expanding its cannabis consumption lounges, with the recent approval of three more applications. The CCB‘s unanimous decision favored Deep Roots Harvest, Global Harmony, and KV Group. Previously, in June, the CCB had granted the first three conditional licenses to Cheyenne Medical in unincorporated Clark County, Common Sense Botanicals Nevada in Washoe Valley, and Planet 13 in Las Vegas.

Up to 65 smoking launges are planned

The recent decision to ease air-ventilation standards for cannabis consumption lounges came after stakeholders expressed concerns about the high costs associated with such systems. The initial investment and continuous operational energy costs could exceed $100,000, making it economically challenging for most operators, especially social equity licensees.

While some lounge operators had initially hoped to commence operations this summer, various challenges, including administrative setbacks, funding issues, and evolving regulations, have caused delays. When Nevada first approved the concept of consumption lounges a year ago, there was an agreement to issue up to 65 licenses, with 40-45 of them being linked to existing cannabis shops. Deep Roots Harvest has indicated plans to open its lounge by the end of March.

Source: MJBizDaily


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Nevada Releases Bulletin for Products Affected by Unapproved Pesticide

The Nevada Cannabis Compliance Board (CCB) recently issued a public health and safety bulletin on Jan. 19 regarding the use of an unapproved pesticide. “The CCB was notified that the following cannabis and cannabis products had been treated with an unapproved pesticide, Ethephon, at Clark Natural Medicinal Solutions, LLC,” the CCB explained in its bulletin.

Currently, there are no illnesses reported, according to the bulletin.

The pesticide was applied sometime between July 23, 2021 and Jan. 5, 2023, and the CCB instructs consumers to check the labels of the cannabis they purchased (which includes flower, shake or trim, and pre-rolls). “All cannabis products properly sold by a licensed cannabis sales facility should have a product label on the packaging,” the CCB wrote. “The name of the cultivation facility which grew the cannabis and the harvest date can be found on the label, typically near the top.”

The CCB also put together a list of products that may have been affected by the pesticide, including more than 117 edibles, 41 infused pre-rolls, and more than 200 concentrates, sold at 104 dispensaries.

According to the U.S. Environmental Protection Agency, Ethephon was discovered in 1965 and registered as a pesticide in 1973. “Ethephon is a plant growth regulator used to promote fruit ripening, abscission, flower induction, and other responses,” the EPA states. “Ethephon is registered for use on a number of food, feed and nonfood crops, greenhouse nursery stock, and outdoor residential ornamental plants, but is used primarily on cotton. Formulations include formulation intermediates and soluble concentrates/liquids.”

The EPA also states that Ethephon can potentially cause severe skin and eye irritation “but otherwise is “moderately acutely toxic.”

The CCB also stated that testing facilities do not currently test for Ethephon specifically. “There is no reason to believe the cannabis sales facilities or cannabis testing facilities had any knowledge of the use of this unapproved pesticide; Ethephon is not on the list of pesticides the testing facilities must look for, and their test methods are not set up for detection of Ethephon.”

According to the Nevada Department of Agriculture, updated as of August 2022, there are 86 pesticides that are not legally prohibited to be used on cannabis plants. This varies from minimum risk ingredients such as cinnamon, garlic oil, or zinc metal strips to registered pesticides, such as myclobutanil, where “tolerance is monitored.”

Previously, the CCB has only issued a few safety bulletins such as this one. One bulletin was issued in 2020, which addressed failed microbial testing. Three were issued in 2021, involving more failed microbial testing, incorrect THC potency testing, and products that were unable to be verified as tested. Two bulletins were issued in 2022, pertaining to unverifiable testing and mislabeled products.

In addition to these bulletins, the CCB awarded the final licenses for consumption lounges in Nevada in December 2022, half of which were designated for social equity applicants. Funding for consumption lounges were initially approved in August 2021, with regulations approved by legislators in June 2022, such as safety protocols, staff training, and location restrictions. Now, consumption lounges are “likely to open before Summer 2023,” states the CCB.

One judge issued a ruling last year asking that cannabis be removed from the Schedule 1 category of the Controlled Substances Act. In September 2022, Judge Joe Hardy ordered the Nevada Board of Pharmacy to remove cannabis from its current schedule designation, because cannabis has been recognized in the Nevada constitution as having medical value. “The constitutional right to use marijuana upon the advice of a physician does establish that marijuana has an accepted medical use and treatment in the United States,” said Hardy.

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Las Vegas City Council Approves Cannabis Consumption Lounges

The Las Vegas strip is about to get even more lit.

Members of the city council cleared the way for the opening of cannabis consumption lounges, voting 5-1 on Wednesday against a motion that would have had Las Vegas opt out of allowing those businesses, according to the Las Vegas Review-Journal.

The vote came after the Nevada Cannabis Compliance Board in June gave its final sign off on the establishments.

The board laid out procedures for would-be lounge owners at the time.

“In addition to outlining the licensing and operation of consumption lounges, regulations approved today lay the groundwork for greater inclusion within Nevada’s cannabis industry,” the board said in a June release. “All applicants must submit a diversity plan, summarizing actionable steps and goals for meaningful inclusion. Additionally, half of the independent consumption lounge licenses in the initial round must be awarded to social equity applicants.”

“Prior to an open licensing period, the [Cannabis Compliance Board] plans to roll out tools and resources including worksheets, video tutorials and live webinars in order to ensure interested parties have access to the same information and are able to successfully submit an application,” the release continued. “The CCB expects to open the first licensing round for consumption lounges in the Fall, allowing for the first consumption lounges to open as early as the end of the year.”

That final regulatory approval came nearly a year after Nevada state lawmakers approved funding for the Cannabis Compliance Board, which has been charged with overseeing the consumption lounges in the state.

Cities in Nevada could opt out of allowing the consumption lounges in their jurisdictions. According to the Review-Journal, by “not responding to a letter from the Nevada Cannabis Compliance Board earlier this month, the city automatically opted in to the licensing process, but still had an opportunity Wednesday to change course.”

Councilwoman Victoria Seaman filed the motion to opt out, but it was voted down 5-1 on Monday.

Seaman said constituents had told her that “they would rather not have them in the residential areas and have them more in the tourist areas, so, I’m not going to be supporting this,” as quoted by the Review-Journal.

But others view the lounges as yet another boon for Las Vegas’ vibrant tourism industry. It will also provide refuge for the thousands of out-of-towners who descend upon the city each week. As local news station KSNV put it, the state’s “current law leaves many from out of town consuming the drug illegally, either on the streets or a hotel room,” but the cannabis lounges will change that.

According to the Review-Journal, the lounges “will allow marijuana customers to smoke the drug legally for the first time outside of private homes since voters legalized recreational use in 2016.”

“I think it’s important for the city to consider the business opportunity that consumption lounges will bring, and also some relief of issues we’re currently hearing about a lot because we’re not offering a place for folks to actually consume when they buy,” Councilwoman Olivia Diaz told the Review-Journal after the vote on Wednesday. “We have still some way to go and some more work to do.”

The newspaper reported that there will be 20 licenses awarded throughout the state for cannabis consumption lounges, half of which will be given to social equity applicants, individuals from communities that have been disproportionately affected by the War on Drugs.

The Cannabis Compliance Board announced earlier this month that the application period for prospective cannabis consumption lounge owners will open on October 14 and conclude on October 22.

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Nevada Regulators Give Final Approval for Cannabis Lounges

Regulators in Nevada on Tuesday gave the final sign-off to cannabis consumption lounges, paving the way for the establishments to perhaps open up by year’s end.

The state’s Cannabis Compliance Board voted on a slate of regulations for the lounges, a crucial regulatory hurdle in a process that has been nearly a year in the making.

According to local news station KLAS, some of the regulations approved by the board on Tuesday “included safety protocols at lounges, training requirements for staff, and location requirements for the lounges,” such as “certain distances from locations such as schools and community facilities.”

It was last August when Nevada lawmakers approved funding that had been requested by the Cannabis Compliance Board to hire staff and provide other support in the regulation of the lounges.

The Nevada Independent reported at the time that a legislative committee “unanimously approved three items that will provide the [Cannabis Compliance Board] with funds to hire more staff, work with the state attorney general’s office to hammer out regulations, and direct cannabis revenue toward education funding.”

Tyler Klimas, the executive director of the Cannabis Compliance Board, told the legislative committee at the time that the additional funding helped put the state on track to have the lounges open “at least the first quarter, or the first half of 2022.”

“Not only to see the lounges open, but then also the first part is where we would start to realize that revenue,” he said at the time.

Tuesday’s vote apparently keeps that timetable in place, with the Las Vegas Sun reporting that the board said the “first state-sanctioned cannabis consumption lounges could potentially open before the end of the year.”

It has been a long time coming for the Cannabis Compliance Board, which noted in a press release on Tuesday that it held 15 public meetings to go over potential regulations for the consumption lounges.

The board also provided details for prospective lounge owners.

“In addition to outlining the licensing and operation of consumption lounges, regulations approved today lay the groundwork for greater inclusion within Nevada’s cannabis industry,” the board said in the press release. “All applicants must submit a diversity plan, summarizing actionable steps and goals for meaningful inclusion. Additionally, half of the independent consumption lounge licenses in the initial round must be awarded to social equity applicants.”

“Prior to an open licensing period, the [Cannabis Compliance Board] plans to roll out tools and resources including worksheets, video tutorials and live webinars in order to ensure interested parties have access to the same information and are able to successfully submit an application,” the release continued. “The CCB expects to open the first licensing round for consumption lounges in the Fall, allowing for the first consumption lounges to open as early as the end of the year.”

Local news outlet KLAS reported that the Cannabis Compliance Board expects “40 to 45 applications for lounges attached to retail shops and 20 independent shops, 10 of which will go to social equity applicants.”

“What we are looking for is the impacts of drug policy on individuals and members of the community. We are looking at poverty level, we are looking at any past convictions of cannabis,” Klimas said, as quoted by KLAS.

Nevada legalized recreational cannabis use for adults back in 2017, but consumption has been confined to the private homes of individuals. That, of course, hasn’t stopped people from toking up in public. As The Street said, “while it is not technically legal to light up a joint while walking the Strip…the aroma in the air suggests that it’s happening quite regularly.”

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