Nevada: Governor Signs Bill into Law Regulating Cannabis Consumption Lounges

Nevada Governor Steve Sisolak (D) signed legislation into law to regulate on-site cannabis consumption spaces.

Assembly Bill 341 allows adults 21 and older to purchase and consume adult-use cannabis products on-site at any licensed “cannabis consumption lounge.”

The measure establishes regulations for two distinct types cannabis consumption lounges. One group would be reserved for existing marijuana dispensary license holders who can then apply to operate an on-site cannabis consumption lounge. The other designation would be for new, independent businesses to apply for a license to operate an “independent cannabis consumption lounge” which is not attached to or adjacent to an existing retailer. The bill also provides for reduced license application fees for qualifying social equity applicants.

Local governments can enact policies restricting access to cannabis consumption lounges under this bill.

The new law takes effect on October 1, 2021.

Alaska and Colorado have previously enacted legislation explicitly permitting social consumption sites for cannabis, and New York’s nascent adult-use law also regulates on-site facilities.

Gov. Sisolak recently signed additional marijuana-related bills into law, including measures amending marijuana penalties for minors and rescinding per se driving thresholds for THC, and legislation permitting consumers to obtain cannabis products via curbside pickup.