How to Get a Cannabis License in Nevada with Amanda Connor

Admin • 22 July, 2024

In this episode, I spoke with Amanda Connor from Connor & Connor PC about obtaining a cannabis license in Nevada. We explored license types, the application process, state regulations, and the current and future cannabis market trends.

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Introduction

Today, we covered the comprehensive process of acquiring a cannabis license in Nevada with Amanda Connor from Connor & Connor PC. Topics included cultivation, production, distribution licenses, the steps involved in the application process, and market dynamics. Amanda also provided invaluable advice for entrepreneurs looking to enter the highly regulated cannabis market in Nevada.

This conversation with Amanda Connor offered an insightful overview of the cannabis licensing process in Nevada, emphasizing the importance of understanding the state's regulations and the future of cannabis legalization.

Amanda Connor

Connor & Connor PC

0:00

Introduction

The video begins with a welcome, emphasizing that it is for educational purposes and introducing Amanda Connor, an attorney from Connor & Connor PC, who will discuss the cannabis licensing process in Nevada.

0:22

Overview

Amanda outlines the different types of cannabis licenses available in Nevada, including cultivation, production, dispensary, testing, and distribution.

1:10

Cultivation Licenses

Amanda explains the cultivation license in Nevada, which covers growing cannabis from seed or clone to harvest but excludes chemical processing.

2:00

Production Licenses

She describes production licenses for processing cannabis, including extraction and pressing methods, which are separate from cultivation.

2:40

Retail and Lounges

Amanda touches on retail dispensary licenses and Nevada’s recently introduced consumption lounges, adding more avenues for cannabis-related businesses.

3:00

Distribution and Testing Licenses

Explains that cannabis products in Nevada must be transported by licensed distributors, similar to the alcohol industry, and the role of independent testing labs in ensuring product safety.

3:40

Cultivation License Area and Expansion

Discussion about the square footage requirement for cultivation licenses and how applicants can expand their grow area, with the caveat that the Cannabis Compliance Board (CCB) can halt expansion if the market is saturated.

4:50

Application Process

Amanda clarifies that Nevada only opens cannabis license applications in limited windows, which could be years apart, and details the requirements for applying when windows do open.

5:50

Acquiring an Existing License

Most new entrants to the Nevada market buy existing licenses due to the infrequent application windows. Amanda explains the process and variation in prices based on factors like location and cultivation space.

6:40

License Price Fluctuation

License prices fluctuate based on the location, built-out capacity, and production capabilities, with some licenses selling for as low as $100,000 and others in the millions.

7:30

Legal Assistance for Acquiring Licenses

Amanda discusses her firm's role in guiding clients through the lengthy and complex investigation process required to acquire a cannabis license in Nevada.

8:10

Application Requirements

Amanda explains that applicants must go back to natural persons owning more than 5% of a company for background checks, detailing the financial and criminal vetting process.

9:30

Financial and Residency Requirements

She discusses the financial threshold for operating a cannabis business in Nevada (a minimum of $250,000 liquid assets) and confirms that there is no Nevada residency requirement for ownership.

10:30

License Acquisition Timeline

Amanda describes the timeline for acquiring a license, which varies but often takes 6-12 months, depending on the complexity of the purchase and background checks.

11:40

Water and Environmental Regulations

Given Nevada’s desert climate, water usage is a key concern. Local jurisdictions require cannabis farms to submit water impact plans, though state and local regulations vary.

12:30

Nevada-Specific Regulations

Amanda explains that Nevada models its cannabis regulations after its gaming industry, regulating almost every aspect of the business—from packaging changes to layout modifications—which require state approval.

13:40

Security Measures

Nevada mandates extensive security for cannabis operations, including 24/7 camera surveillance, battery backups, and fencing for outdoor grows, with the CCB and local law enforcement having access to all footage.

14:50

Product Testing

Amanda describes Nevada's comprehensive testing regulations, which include testing for pesticides, microbials, and more. Testing is done in small lot sizes, and Nevada tracks total potential THC.

16:00

Market Competitiveness

Amanda reflects on the current competitive landscape of Nevada’s cannabis market, noting that despite competition, Nevada's highly regulated market positions the state well for future federal legalization.

17:30

Federal Rescheduling and its Impact

Amanda discusses the potential impact of federal rescheduling of cannabis, particularly its benefit for tax deductions, but notes that it’s unlikely to disrupt Nevada’s state-regulated market.

18:40

Advice for New Entrepreneurs

Amanda advises prospective cannabis business owners to enter the Nevada market, given its robust regulatory framework, while emphasizing the importance of preparation due to the complexity of the industry.

19:50

Closing Remarks

Wrapping up the conversation, the host encourages viewers interested in pursuing a cannabis business to contact Amanda and her team for expert legal assistance.