Although Nevada’s voters approved the legalization of medical marijuana over fifteen years ago, the Nevada Legislature only recently created a legal process for marijuana patients to purchase their medicine. With the legalization of licensed and regulated medical marijuana businesses, there has been a tremendous growth in Nevada’s marijuana industry. However, given the highly regulated nature of Nevada’s marijuana industry, opening a marijuana business is much more difficult than opening other types of businesses. The following has been prepared by our experienced Nevada marijuana attorneys to provide you with a basic overview of Nevada’s marijuana laws and industry.
The four types of Medical Marijuana Businesses
Nevada has created four separate and distinct marijuana licenses. The most visible form of medical marijuana businesses in Nevada are dispensaries, which are licensed to sell medical marijuana to legal Nevada and non-resident marijuana patients. Dispensary licenses were limited in number by the State Legislature. The majority of the dispensary licenses (48) were allocated to Clark County, which is where Las Vegas is located. All marijuana and marijuana products sold in a licensed marijuana dispensary must be grown, produced, and tested within Nevada at a state licensed facility.
Facilities involved in the cultivation of marijuana must have a state issued cultivation license. Facilities producing extracted or marijuana infused products such as edibles, must have a marijuana production license. All products grown and produced in Nevada must be tested at a Nevada licensed marijuana testing facility, which are subject to some of the toughest standards in the world. No matter which type of medical marijuana business you are planning on opening, you must go through a rigorous application process with the state and local authorities before beginning operations.
Understand the Cost and Process of Application
Nevada adopted a competitive application process for marijuana licenses. The Nevada Legislature limited the number of dispensary licenses that could be granted, but the number of cultivation, production and testing facilities was left unlimited. However, the state application period was limited to ten days per year and is subject to the discretion of the State of Nevada authorities.
The state application fees are currently set at $5,000.00 per license, irrespective of the license type. Applicants must demonstrate they have at least $250,000.00 in liquid assets for startup capital, proof that you own the property where you plan to open your business, or that you have permission from the landlord to operate a marijuana facility on the property and information needed to perform background checks on all potential owners and employees. You must also submit a very detailed plan for procedures related to lawfully operating a medical marijuana establishment, as well certification that your business will be in compliance with local ordinances and zoning codes for such establishments. In addition to the state regulations, you must also be approved by the local authorities who have adopted very strict standards of their own along with additional application and licensing fees. Once you’ve received approval from all state and local authorities, you may begin business operations however you will be subject to continuing inspections and auditing.
Find Out Other Guidelines for Operating a Marijuana Business
After you begin operations, you still must be diligent in following any rules and regulations necessary to maintain your registration. Business owners must make sure that all of their employees are eligible to work in a medical marijuana establishment and that they only sell to those persons licensed to buy medical marijuana. Anyone working in an establishment must be at least 21 years old and be able to pass a background check. All sales of marijuana must be tracked by the establishment and in accordance with Nevada law.
Retain legal counsel experienced in Nevada’s marijuana industry
Opening a medical marijuana business is extremely complicated. It is a huge investment of your time and money, both of which may be wasted if you don’t get governmental approval. Hiring an experienced attorney can help you navigate the process and increase your chances of success. The attorneys at Connor & Connor, PLLC are very experienced with Nevada’s complicated marijuana laws.
Our expert attorneys will help guide you through the medical marijuana business application process to be certain you’re in compliance with all Nevada medical marijuana laws so that your application is more likely to be approved. Contact Connor & Connor today to schedule a consultation about opening a medical marijuana business.
Few businesses are eternal. For the majority of them, there comes a time when the business has to be sold, management changes hands or the company otherwise comes to an end. It is vital, as a business owner, for you to have the right exit strategy to get out when the time comes. There are a number of options to end your business and each one requires its own unique approach. Here are some tips and strategies for selling a Nevada business or ending your small business and why a business law attorney is important.
Selling a Nevada Business
When it’s time to move on, some owners don’t want to go through the hassle of a gradual shift in management; they simply want to move on. Selling a Nevada business requires time and careful planning. You will need to put extra effort into the company to get it ready to sell.
Naturally you want the highest, best possible offers. This means making the company more valuable. You’ll want to get all of your records in order. Make sure you are and have been transparent in all dealings and work to build your customer base.
Ensure that your staff are dedicated and talented people who care about the success and future of the business. The harder they’re willing to work to make the company successful, the more it’ll be worth.
Look around for a good attorney and business broker who can represent your best interests and advise you on the right tactics. Get a professional valuation of the company so you know the fair market value. In short, you’re going to put more work into the sale than you did during your startup, but it’ll be worth it!
Plan of Succession
When you find the right buyer, you’ll want to develop a plan of succession. Simply signing on the dotted line and walking away is rarely advisable or even possible. You’ll want to train the new owner on your business procedures, methods, company culture and the like. Certainly they will make changes but it’s important for them to know the how and why of current operations.
Succession will probably take about a year, during which you’ll gradually turn over more and more control to the new owner while they ask questions and learn the ins and outs. Your assistance to them will be vital.
Hiring an Attorney
Having a business law attorney in your corner is vital to this process. There are lots of pitfalls that can arise in clearing up liens, making sure you are debt free and that there aren’t any unpleasant surprises in the transfer of business.
If you’re looking to sell your Nevada small business and need help or advice, we are ready to step in. Get in touch with us for more information about Nevada business law and a consultation on your needs today!
Licenses to operate a medical marijuana business can be hard to come by because they are rarely approved. Since 2014, however, Nevada has permitted the selling and transference of licenses from one person to another. The process of transferring a marijuana business license is not such an easy process, and actually requires both parties to adhere to strict standards in order for ownership to be transferred. There are also very stringent rules for moving a dispensary’s location, as well as restrictions on who may purchase and use medical marijuana. Read on to learn the most recent rules for buying and selling medical marijuana licenses and why you need a marijuana attorney to facilitate the process.
Changing License Ownership Legally
In order to transfer ownership of a medical marijuana business license, the new owner must meet several criteria for approval. The new owner(s) must be able to prove that they have liquid assets totaling at least $250,000, which is needed to cover operating costs. Every party involved must undergo a fingerprint background check, as well as getting a local business license and a local approval for ownership change. Although there are some exceptions to the background requirement—if ownership is being transferred to someone within an existing marijuana business, for instance—transfer of ownership generally follows the same application process as that of a new business.
Moving the Location of a Marijuana Seller
Prior to 2015, new or previous owners of a medical marijuana business were unable to relocate. However, this rule is now changed. A medical marijuana business may move locations supposing the correct criteria are met. The rules for relocating a medical marijuana business are as follows: local approval for the location has been granted; approval for land use has been granted; the land has been surveyed and found to meet local and state requirements; it can be shown that the new location is more suitable than the previous location. If you are considering moving your medical marijuana business, you should be aware that you may only relocate in the same city where the business was originally approved. Hiring an experienced marijuana attorney is recommended to help you work through this sometimes complicated process.
Learn the Rules of Purchasing Medical Marijuana
Currently the only type of marijuana that is legal for use in the state of Nevada is medical marijuana. People seeking approval to treat medical conditions through the use of medical marijuana must meet specific requirements before being granted a medical marijuana card. First, you must request an application from the Nevada Division of Public and Behavioral Health. Next, the application must be filled out, be signed and approved by a doctor and be notarized. Once a doctor’s approval is given, the form will be examined by state health officials and a background check will be performed. Finally, if the application is approved, the applicant will be able to receive their medical marijuana card from the DMV.
Medical marijuana businesses must be sure to check the card of every customer in order to avoid selling to unauthorized persons and potentially risking their business license.
Get Guidance from an Experienced Marijuana Attorney
Whether you want to sell a medical marijuana business, buy a business license or are looking to acquire a medical marijuana card, you need an experienced marijuana attorney from Connor & Connor, PLLC to help you through the process. Our attorneys are knowledgeable of all of the latest Nevada marijuana laws and can make the process of transferring license ownership as easy as possible.
Contact us today to find out how we can help you navigate the often confusing world of medical marijuana laws.
One thing that is essential to running a successful business is having a good attorney in your corner. Business law is tricky, complex and full of potential stumbling blocks. A lawyer is your best bet to navigating those oft-murky waters and building a successful operation. Here are three things that every business owner should be sure to discuss with their lawyer to protect their business and keep on the right track.
Hiring New Workers
Hiring new workers might seem at the outset like something that’s simple and straightforward. Nothing could be further from the truth. Simply asking the wrong question like “are you married?” at an interview can open you up to lawsuits for discrimination. You want to avoid any trouble while still getting the best employees.
Every business owner should develop a set of policies and procedures for how you handle reviewing resumes, interviewing and hiring. Your attorney is your best resource for making sure that these policies are above board and in compliance with laws like the Civil Rights Act, the Age Discrimination in Employment Act and Americans with Disabilities Act.
Discrimination and Harassment
Closely tied to your hiring practices are your policies and procedures involving how you deal with discrimination and harassment. The wrong comment in the workplace can be a nightmare of legal fees for an employer who doesn’t decisively deal with these issues. It’s a balancing act, however; you need to be sure that you don’t rack up discrimination charges while dealing with the same from the other side!
Every business needs to have an anti-harassment and anti-discrimination policy. This policy should be spelled out in your employee handbook. It should be concise, clear and thorough. Make sure that you work closely with your attorney to develop a policy that will protect not only your employees from unwanted advances, comments and acts in the workplace, but will protect you as well.
Advertising, Marketing and Business Law
Not everyone thinks of your marketing practices as something that your business law attorney needs to handle. There are, however, legal issues that come into your advertising efforts. If you make a claim that you can’t legitimately stand behind, you could end up with customer complaints, loss of business, and lawsuits. You can also run into problems if you improperly reference competitors or come too close to someone else’s trade dress.
When it comes to advertising, there are a lot of legalities to consider. Make sure you discuss your marketing plans with your attorney so they can closely review your ideas. This can save you from product liability, false advertising, defamation and other nasty legal problems down the road.
If you are starting or running a small business in Nevada and you need advice on the above or any other business law issue, we’re here to help. Check out our business law services and give us a call for more information today!