A new law went into effect in Nevada on January 1 making several changes to the state’s cannabis laws, including a provision that doubles the state’s limit on weed possession. The measure, Senate Bill 277, was passed by Nevada lawmakers this spring before being signed into law by Republican Governor Joe Lombardo on June 14.

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Senate Bill 277 makes several significant changes to Nevada’s cannabis regulations. In 2001, the state legalized medical marijuana, followed by the legalization of adult-use cannabis with the passage of Question 2, a 2016 ballot measure that legalized recreational marijuana in the state for adults 21 and older.

The legislation more than doubles the possession and purchase limits for recreational marijuana in Nevada, raising the cap from one ounce of cannabis to 2.5 ounces. The measure also doubles the limits for cannabis concentrates from one-eighth of an ounce to a quarter ounce.

The legislation also permits all adult-use cannabis dispensaries in Nevada to sell cannabis products to medical marijuana patients. Beginning next year, state cannabis regulators will no longer be able to issue new licenses for medical marijuana businesses, except in areas of the state that have prohibited the operation of recreational cannabis dispensaries.

Democratic state Senator Dallas Harris, the sponsor of the bill, said that allowing medical dispensaries to serve recreational cannabis customers is one of the most significant provisions of Senate Bill 277 for Nevada’s regulated cannabis industry.

“That’s one of the big changes, (but) I think there are a bunch of things in the bill that are really designed to be business-friendly and moving our cannabis industry into the next phase,” said Harris told the Las Vegas Sun after the bill was approved.

Harris added that separating medical and recreational cannabis licenses was needed when adult-use cannabis legalization went into effect. But as the market matures, he said that it makes sense to eliminate some of the red tape in Nevada’s cannabis regulations.

“It’s going to cut down on some of that administrative burden for a lot of our operators, which are generally dual licensees to begin with,” Harris said. “It made sense when we originally set up our structure so that we had separate licenses because we had medical first, then we had adult use. But now given the industry is up on its feet, I think it just makes sense to streamline that process.”

New Law Eases Cannabis Industry Employment Restrictions

Senate Bill 277 also eases a ban on individuals with felony convictions from operating or working at cannabis businesses in Nevada. Under the approved legislation, the Nevada Cannabis Compliance Board has been given the authority to issue licenses to businesses with stakeholders that have prior felony convictions if the agency “determines that doing so would not pose a threat to the public health or safety or negatively impact the cannabis industry in this State,” according to the text of the legislation. 

To comply with the change, the board will be required to “impose any conditions and limitations on the granting of an exemption that the Board determines necessary to preserve the public health and safety or mitigate the impact of granting the exemption on the cannabis industry in this State.”

The legislation also amends a ban on those with certain prior felony convictions from being employed in Nevada’s regulated cannabis industry. Under the bill, individuals with such convictions will be permitted to petition the Nevada Cannabis Control Board (CCB) to obtain an agent card that allows them to work at a licensed cannabis business without first having their records expunged. 

“So right now, the CCB is able to receive petitions from folks with felonies and they are given essentially a court-like process that they have to go through,” said Bri Padilla, executive director of the Las Vegas Chamber of Cannabis. “And they are also going to be given a hearing. They’re given a decision by the CCB after a background check and a criminal record pull, then the CCB will advise on whether they’re rehabilitated or not and provide or deny them an agent card for X, Y or Z reason.”

Nevada’s new cannabis reform law also tasks the state Cannabis Advisory Commission with conducting a study to determine the potential effects that ending the federal prohibition of cannabis and removing marijuana from the state’s Uniform Controlled Substances Act would have on the regulated cannabis industry. The legislation also requires state regulators to consider if a proposed change to Nevada’s cannabis regulations “is likely to have an adverse effect on the environment and, if so, whether there are any methods to reduce or eliminate that adverse effect which would not impose an economic burden on holders of an adult-use cannabis establishment license or medical cannabis establishment license.”

Portions of Senate Bill 277 went into effect as soon as the legislation was passed in June. The remainder of the new law, including the increase in the limit on cannabis possession, became effective on January 1.

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