Cannabis consumption lounges are on track to set up shop in Nevada by mid-2022 and shake up the state’s marijuana industry after the Interim Finance Committee greenlit new funding on Wednesday that will help the Cannabis Compliance Board (CCB) oversee a brand new breed of business.
Legal consumption at locations outside the home comes more than four years after Nevada legalized recreational cannabis use.
Lounges were effectively authorized in July under AB341, legislation that prioritized diversity among new entrants in the predominantly white industry and made the CCB (the state agency that regulates Nevada’s legal marijuana businesses) responsible for licensing and regulation.
With Nevada now among seven states where lounges are legal, proponents say providing residents and tourists with bars, restaurants and other places to consume cannabis products onsite will attract a wider market of consumers, benefiting the economy. Fifty-nine adult-use dispensaries have already expressed interest in applying to open their own.
At the interim committee — which determines spending outside of Nevada’s 120-day normal legislative session — lawmakers unanimously approved three items that will provide the CCB 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.
CCB Executive Director Tyler Klimas said the items passed by the Interim Finance Committee would direct $10.9 million to fund 23 new full-time employees at the regulatory agency.
Klimas added that those would include positions responsible for cannabis lounge licensing, pre-opening and ongoing compliance checks, background checks, lounge suitability determinations and criminal investigations.
“To implement a program of this size and this complexity, it touches all aspects and all