City of Las Vegas – Proposed Regulations Business Licensing Medical Marijuana DRAFT

City of Las Vegas
Business Licensing – Proposed Regulations
Medical Marijuana DRAFT
NOTE: These regulations may be included in either ordinances proposed for
consideration by the City Council or contained in regulations of the department. This
draft has been prepared at the staff level to identify the operational requirements for
medical marijuana facilities which may be located within the city of Las Vegas.
SECTION 1. Findings
SECTION 2. Definitions
Unless the context otherwise requires, the scope of all words in this Chapter shall be liberally
construed in order to effectuate the purpose of this Chapter, and, in particular, the following
words shall have the meaning ascribed to them as follows:
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Advertise for purposes of this chapter, the terms “advertise,” “advertising” or “advertisement”
means the act of drawing the public’s attention to a medical marijuana facility in order to
promote the sale of medical marijuana by the facility.
Business Associations means those business entities or individuals that are connected to the
business as a manager, owner, or investor of an affiliated business.
Cannabis Container means a sealed, traceable, food compliant, tamper resistant, tamper
evident container or package used for the purpose of containment of medical cannabis which
has been approved by the state regulating authority.
Cannabis or Marijuana shall be the same, and as may be amended, as defined by Nevada
Revised Statutes Chapter 453A.
Cultivation Facility has the meaning ascribed to it in NRS 453A.056.
Edible marijuana products has the meaning ascribed to it in NRS 453A.101.
Edible marijuana products facility has the meaning ascribed to it in NRS 453A.105.
Independent testing laboratory has the meaning ascribed to it in NRS 453A.107.
Marijuana infused products has the meaning ascribed to it in NRS 453A.112.
Marijuana infused products facility has the meaning ascribed to it in NRS 453A.105.
Marijuana Cultivation Facility means a fully stand-alone enclosed structure which cultivates,
delivers, transfers, transports, supplies or sells marijuana to Medical Marijuana Dispensaries or
Facilities for the production of edible marijuana products or marijuana-infused products.
Medical Marijuana Establishment means any establishment licensed under this chapter.
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Facility for the Production of Edible Marijuana Products or Marijuana-Infused Products
means a fully stand-alone enclosed structure which acquires, possesses, manufactures,
delivers, transfers, transports, supplies or sells at wholesale edible marijuana products or
marijuana-infused products to medical marijuana dispensaries.
Medical Marijuana Dispensary means a fully stand-alone enclosed structure which acquires,
possesses, supplies, sells or dispenses marijuana or related supplies and educational materials
to the holder of a valid Nevada registry identification card.
Medical Marijuana Establishment means any establishment licensed under this chapter and
under NRS 453A and may include a medical marijuana dispensary, edible marijuana production
facility, marijuana infused products facility, a marijuana cultivation facility or independent testing
laboratory.
Registration Certificate means a certificate issued pursuant to NRS 453A and issued by the
Division of Public and Behavioral Health of the Department of Health and Human Services of
the State of Nevada in accordance with subsection 3 of NRS 453A.326 which is issued as a
provisional registration subject to obtaining a local business license under this chapter prior to
establishing any such business.
Plant means one individual marijuana plant grown at a cultivation facility for the harvesting of
useful plant product at any stage of development from seedling to harvest.
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State regulating authority means The Division of Public and Behavioral Health of the
Department of Health and Human Services of the State of Nevada and/or any other agency
assigned to administer NRS 453A.
SECTION 3. Relationship to Nevada Medical Marijuana Code; other laws
Except as otherwise specifically provided herein, this article incorporates the requirements and
procedures set forth in NRS 453A and Nevada Administrative Code NAC 453A. In the event of
any conflict between the provisions of this article and the provisions of NRS 453A and the
Nevada Administrative Code NAC 453A, or any other applicable State or local law, the more
restrictive provision shall control.
SECTION 4. Unlawful Acts
A. It shall be unlawful for any person to operate any marijuana establishment in the City without
a certificate duly issued by the State regulating authority, and a license issued and in
compliance with any and all applicable state laws and the Las Vegas Municipal Code.
B. It shall be unlawful for any person to provide marijuana or edible marijuana products or
marijuana infused products to a medical marijuana establishment within the City of Las
Vegas without a registration certification duly issued by the State regulating authority and a
license issued by the City of Las Vegas.
C. It shall be unlawful for any licensed medical marijuana establishment located within the city
of Las Vegas to accept for sale any marijuana or edible marijuana products or any
marijuana infused products from any person who has not obtained a certificate from the
state regulating authority and is duly licensed under this chapter for the provision of such
products.
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D. It shall be unlawful for a person to engage in any form of business or commerce involving
the cultivation, processing, manufacturing, storage, sale, distribution or consumption of
marijuana other than those forms of businesses and commerce that are expressly
contemplated by Nevada Revised Statute 453A and any administrative rules duly adopted
by the state regulating authority.
E. It shall be unlawful for any person to sell medical marijuana products at a licensed
dispensary at any time other than between the hours of 7:00 am and 8:00 pm daily.
SECTION 5. Compliance Permit Required
A. Any medical marijuana establishment required, pursuant to NRS 453A or this chapter, to
register under Nevada Administrative Code 453A, must obtain a permit from the City Council
to secure approval that the application is in compliance with local rules and regulations and
the location is appropriate for consideration of a provisional registration certificate and the
application has been permitted for consideration of a business license under this chapter.
B. The issuance of a compliance permit is not a business license, nor a commitment that such
a license to operate a business will be granted. It is not an approval to begin business
operations. The issuance of a permit is only a determination that the proposed application
meets the criteria for consideration of a business license which after investigation and
review may be considered by the City Council for a medical marijuana establishment
business license once a provisional registration certificate is issued pursuant to Nevada
Administrative Code 453A.
C. The City Council shall issue no more permits for dispensaries than allowed by state law or a
number less than permitted, as limited by Title 19. Prior the issuance of any permits for
cultivation facilities, the Director shall determine the square footage of cultivation facilities
required to support the number of dispensaries and recommend limits on cultivation permits
to the Council for consideration in the issuance of compliance permits.
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SECTION 6. Permit Application
Upon determination by the City Council to accept permit applications for medical marijuana
establishments, the Director shall issue a request for permit applications specifying the types of
medical marijuana permit applications that may be accepted and the deadline to submit
applications. The Director shall:
A. Post on the website of the Department that the Director will be accepting medical
marijuana establishment applications at least 10 days prior to the published 10 day
acceptance period for such submittals.
B. Specify the type of medical marijuana establishment permits that will be accepted.
C. Provide a timeframe for all submitted applications of not more than 10 days with a 3:00
pm Pacific Standard Time deadline for all submitted applications 10 days after the
opening of the application period.
D. Return to the entity that submitted the application, any application received at a time
other than the time set forth in this subsection.
E. Not allow the modification of any application once the deadline for complete applications
has passed.
F. Reject and not process any applications that are incomplete. The determination of an
incomplete application is at the sole discretion of the Director.
G. Reject and not process any applications that contain a principal or entity whose license
issued pursuant to this chapter has been revoked for non-payment of fees within the last
five years or disciplinary action within the last ten years.
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H. Reject and not process any applications that contain a principal that has been found
unsuitable to hold a privilege license within the city or been subject to disciplinary action
in any jurisdiction;
I. The Director may accept the permit application in whole or in part by electronic
submittals in a form acceptable to the Director.
SECTION 7. Permit Application Contents
The application for each permit and individual location must provide:
1. A complete application per Chapter 6.06.
2. A detailed financial history and a listing of business associations covering at least a tenyear period immediately preceding the year of filing for each principal and any beneficial
owner with a five percent interest or more in a medical marijuana establishment.
3. A detailed personal history covering at least a ten-year period immediately preceding the
year of filing for each principal and any beneficial owner with a five percent interest or
more in a medical marijuana establishment. A lease agreement where rent is based on
any percentage of profits or where the agreed to rent is 10% above the standard per
square foot rate in the area for typical leased space exclusive of medical marijuana is
considered beneficial ownership.
4. One-time, nonrefundable permit application fee of $<< >>
5. A permit application on a form prescribed by the Director.
6. Documentation demonstrating the complete ownership structure of the applicant,
including, but not limited to, all articles of organization or incorporation, partnership
agreements, stock certificates, state business licenses, taxation documents and current
listing of officers, members and/or managers, and any profit sharing agreements made
outside of the ownership structure.
7. Documentation on the residency of each principal;
8. List detailing any and all ownership of any medical marijuana facilities in any other
states;
9. List of all license numbers for all other active business licenses issued to listed owners
by the City of Las Vegas or other jurisdictions within the State of Nevada;
10. A complete and accurate copy of the application and all accompanying documents to be
filed pursuant to NRS 453A.332 with the State regulating authority to operate a medical
marijuana establishment including, but not limited to:
a. A completed application form prescribed by the State regulator;
b. All business names, business organization registrations and articles of
incorporation or organization, partnerships or joint venture documents;
c. The physical address of the proposed medical marijuana establishment;
d. All proposals for operations, business plans, building plans, attestations, financial
documentation, and required tax reports;
e. All documents detailing proposed organizational structure, attestations signed by
the owner concerning criminal history, all narratives, and resumes;
f. All documentation required concerning the adequacy of the proposed building
and construction plans with supporting details;
g. All testing, transportation, security, policies, operations manuals, financial,
environmental and business plans.
h. Any other documentation that has been provided or requested by the State of
Nevada.
11. A security plan, including a depiction of security cameras, indicating how the applicant
intends to comply with the requirements related to monitoring and securing the licensed
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premises as required by this chapter and including the city licensed burglar alarm
contractor and monitoring company;
12. A copy of a commercial general liability insurance policy (bodily injury, property damage,
and medical marijuana liability) in a policy limit not less than $2,000,000.00 per
occurrence and $5,000,000.00 in aggregate, which specifically includes liability for
medical marijuana and names the City of Las Vegas as additional insured.
13. Two copies of a survey sealed by a State of Nevada registered surveyor documenting
the compliance of the proposed site with all state distance requirements and the
requirements of Title 19;
14. Two copies of the site plan signed by the preparer;
15. A set of building plans, including air filtration systems, lighting, wall and tenant
improvements, sealed by a State of Nevada registered engineer, and a layout of the
establishment and the principal uses of the floor area, including a depiction of where any
operations and services are proposed to occur on the licensed premises.
16. A set of building architectural renderings produced and sealed by a State of Nevada
registered architect detailing both interior and exterior renderings including colors,
materials and signage;
17. Sign plan showing all proposed exterior and interior signage including the size and full
color rendering of signage;
18. A copy of all contracts, proposed contracts for consulting, management, renting or
leasing including written documentation stating that the property owner of the facility is
fully aware of the property’s intended use. Documentation is to include the name,
address, and contact telephone number for the property owner;
19. A copy of all contracts with any other proposed medical marijuana establishment;
20. A complete written explanation of the source of all marijuana products to be cultivated or
sold;
21. A recorded deed of ownership or long-term lease demonstrating property rights to the
identified parcel or address of the proposed medical marijuana establishment, as well as
documentation of the right to use the property as a medical marijuana establishment;
22. A description of the products and services to be provided at the establishment, including
an indication of whether the establishment proposes to engage in cultivating marijuana
for production of edible marijuana products or marijuana infused products or to transfer
directly to a dispensary, if the establishment is proposing to engage in the production of
edible marijuana products or marijuana infused products and the types of products
proposed, or if the establishment is for the retail sale of medical marijuana or edible
marijuana products or marijuana infused products and the type of products proposed.
23. An authorization to submit to fingerprinting and photographing and authorizing the City in
writing to obtain information from past and present employers, criminal justice agencies,
financial institutions, Federal, State and local government agencies, and other persons
and entities. The written authorization shall include consent to release the information
to the City for use in connection with the permit application and other City business
regulations;
24. The applicant must provide a written statement acknowledging that the applicant
understands and agrees that any business or activity conducted or operated under any
such license that may be subsequently granted, shall be in full conformity with all
Federal laws, any guidance or directives issued by the U.S. Department of Justice, the
laws of the State of Nevada and the laws and regulations of the City applicable thereto,
and that any violation of any such laws or regulations in such place of business, or in
connection therewith, may render the permit and such license subject to immediate
suspension or revocation;
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25. The applicant must provide a statement to the Director that the applicant will hold
harmless, indemnify, and defend the City against all claims and litigation arising from the
issuance of a permit and/or licenses, including any claims and litigation arising from the
establishment, operation, or ownership of the medical marijuana establishment, and that
a bond to secure such in the amount of $500,000 will be provided prior to the issuance
of any license.
26. The applicant shall also sign a release of claims and a hold harmless agreement to the
City for its use of all information that has been provided by the applicant or discovered
during any investigation thereof.
27. The applicant must sign an acknowledgement that the applicant is seeking a privilege
and therefore the burden of proving qualifications to receive such a permit or license is
at all times on the applicant, and acknowledge that the granting of a permit and/or
license is at the discretion of the City Council and the applicant agrees to abide by the
decision without appeal.
28. An accounting plan that includes how sales and inventory will be tracked on a daily
basis, weekly and monthly, and how this information will be stored and safeguarded.
The names of all computerized software systems that will be used; including a sample of
reports and customer receipts. Include a sample of any manual documents: inventory
sheets, reports, customer receipts, etc.
29. A narrative detailing the method proposed for the destruction of any unused product
along with a description of the proposed documentation to track and verify destruction.
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SECTION 8. Application Completion – Identification and release requirements
The applicant including each principal identified by the Director shall submit to fingerprinting and
photographing per Chapter 6.06.
SECTION 9. Permits - General
A. Any entity and/or principal within any entity are limited to no more than two medical
marijuana establishment applications and shall not be granted more than two locations for
any type of medical marijuana establishments.
B. Any entity and/or principal within any entity may not apply for a cultivation facility permit and
a dispensary permit.
C. Any entity and/or principal within any entity may apply for a production facility permit and
only one other type of permit. Production facility permits shall not be issued to the same
entity and/or principal for more than two locations within the City.
SECTION 10. Permits - Director Review
A. The Director shall review all complete permit applications and may refer the permit
application in part, or in whole to other City departments and may refer to the Las Vegas
Metropolitan Police Department for investigation, review and comment.
B. The Director shall reject and return to the applicant any application that fails to meet the
criteria established in this chapter or the regulations of the State regulating authority. The
Director will only complete reports and recommendations on applications that meet each
requirement of this chapter to the satisfaction of the Director.
C. The Director shall prepare a report on the merits of each application, the potential suitability
of any and all principals and the application’s compliance with the provisions of this chapter
and Chapter 19. In recommending the granting or denying of such permit, the Director shall
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D.
E.
F.
G.
H.
give particular consideration to the identity, character and background of the applicant,
capacity, capitalization, past business practices of the applicant, operational plan,
organizational structure, interior floor plans of the buildings and site plan as to parking,
traffic movement and aesthetics; security and environmental requirements; the type and
degree of security personnel and facilities and any other factors that in his or her discretion
deems necessary to the safety, peace and order and welfare of the public. No permit shall
be recommended for approval that does not meet all requirements of Chapter 19 and this
chapter.
The Director may inspect or cause to be inspected each proposed location, may call for and
conduct interviews, and shall investigate each complete application. Applicants shall pay
the application fee and all inspection fees that may be required therewith.
After permit application forms, accompanying documents, and appropriate investigation are
complete to the satisfaction of the Director, a report and recommendation shall be referred
to the City Council for a public hearing which may be held at the same time and place as a
hearing on any land use application required for the proposed medical marijuana
establishment.
Public hearings will be held for dispensary, edible production facilities and cultivation permit
applications. Public hearings for dispensaries will be held in conjunction with any proposed
land use approval application before the City Council.
The Director shall consider and act upon all local permit and license applications in
accordance with the standards and procedures set forth in this article for medical marijuana
independent laboratory applications, however, no public hearing shall be required for any
license for a medical marijuana independent laboratory. The decision of the Director is
considered a final action of the Director.
The Director may deem an application “withdrawn” rather than “denied” if an applicant fails
to appear at a schedule hearing and there is no opposition to the permit.
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SECTION 11. Council Action on Permits
A. The City Council may approve, deny or take such other action with respect to such
applications as it considered appropriate. The burden of showing the qualifications,
acceptability or fitness for such permit and the location is upon the applicant.
B. The City Council may not approve more permits for dispensaries than allowed by State law.
The Council shall determine 30 days prior to hearing permit applications the number of each
type of facility permits shall be issued. The Council may reopen the medical marijuana
establishment permit process after the evaluation of applications received and at
subsequent times when the Council deems necessary.
C. The City council shall deny any permit if the permit will not be in the best interest of the
welfare, health, or safety of the City; or if the application or location is determined by the
Council to not be suitable under this Chapter.
D. The City Council shall not approve a permit that would allow one principal or entity to
receive permits for more than 33 percent of the total number of square footage of cultivation
approved by the Council pursuant to this chapter or 33 percent of the number of permits
issued in any one type of medical marijuana establishment, as establishment pursuant to
this chapter.
E. Upon approval of a permit, the Director shall prepare a notice to the State regulating
authority outlining that the proposed location has been found in conformance with land use
restrictions and that the application is in conformance with local rules and regulations and
the application, and if certified by the State regulating authority may be considered for a
business license.
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F. Upon issuance of a permit by the City Council, the Director may begin investigation of
application for suitability of principals.
G. If the Council denies a permit or the State regulating authority fails to rank the application
presented within limits in the number of facilities established by the Council, the applicant
may reapply for a permit no sooner than one year from the date of the denial by the Council.
H. Any permit is considered surrendered by the applicant if a business license has not been
granted within 18 months of the issuance of a provisional certificate issued by the State
regulating authority.
SECTION 12
Medical Marijuana Establishment – Licenses
A. Applications for licenses must comply with LVMC Chapter 6.06 and submit a provisional
registration certificate from the state regulating authority. Licenses shall be issued for two
year periods with license fees due annually. The City Council may request the review before
the Council of any or all licenses prior to the two year renewal.
B. The City Council may issue licenses for the following types of medical marijuana facilities:
a. Medical Marijuana Dispensary
b. Marijuana Cultivation Facility
c. Independent Testing Laboratory Facility
d. Edible-Marijuana or Marijuana Infused Products Facility
C. Prior to scheduling a license for approval or renewal consideration by the City Council, the
Director must have received:
a. A report on the suitability of each Principal completed by the referring department;
b. A bond in the amount of $50,000 from a surety company qualified and authorized to
do surety business in the State of Nevada in the penal sum of $50,000 for all license
fees and penalties owing against such license;
c. A medical marijuana license applicant may not exercise any of the privileges of a
medical marijuana establishment license until the City Council approves the license
and final pre-operational inspections are conducted and all applicable inspections
and license fees are paid.
D. Prior to issuance of a license, the licensee must designate one principal, all key employees
and all management personnel to demonstrate competence in local regulations as
evidenced by a written demonstration administered by the Director.
E. Medical marijuana establishment licensees shall provide insurance coverage as set forth in
this section. The Director shall not issue a license or renew a license without proof of
insurance. Any failure to maintain insurance or provide proof of insurance is ground for the
Director to suspend the license. The intent of the required insurance is to protect the City
from any liability in the issuance of medical marijuana licenses and the consumer should
there be any claims, suits, action, costs, damages or expenses arising from any negligent or
intentional act or omission of the marijuana licensees. Marijuana licensees shall furnish, in
the form of a certificate of insurance, satisfactory to the Director, the following kinds and
minimum amounts of insurance.
a. Commercial general liability insurance: The licensee shall at all times carry and
maintain commercial general liability insurance and if necessary, commercial
umbrella insurance for bodily injury and property damage arising out of the licensed
activities. This insurance shall cover such claims as may be caused by any act,
omission, or negligence of the licensee or its officers, agents, representatives,
assigns, or servants. The insurance shall also cover bodily injury, including disease,
illness and death, and property damage arising out of the licensee’s
premises/operations, products, and personal injury. The amount of the insurance
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minimum shall be $2,000,000.00 per occurrence and $5,000,000.00 in aggregate,
which specifically includes liability for medical marijuana.
b. Additional insured: The City of Las Vegas shall be named as an additional insured
on all general liability, umbrella, and excess insurance policies. All policies shall be
primary over any other valid and collectable insurance.
F. Before the Director issues a license to a medical marijuana establishment, the applicant
shall procure and file with the City evidence of proof and sufficient bond in the amount of fifty
thousand dollars ($50,000) with corporate surety thereon duly licensed to do business with
the State of Nevada, approved as to form by the city attorney, and conditioned that the
applicant shall report and pay all City license fees and any penalties. A corporate surety
shall not be required to make payments to the City claiming under such bond until a final
determination of failure to pay fees and penalties due the City has been made by the
Director. All bonds required pursuant to this subsection shall be current at such times as the
bondholder’s license is renewed and in force for the entire renewal period.
G. Hold Harmless and Bond. The applicant must provide a statement that the applicant will
hold harmless, indemnify, and defend the City against all claims and litigation arising from
the issuance of a license, including any claims and litigation arising from the establishment,
operation, or ownership of a medical marijuana establishment, and provide and maintain a
bond to secure such in the amount of $500,000 made payable to the City upon the
notification of any suit or legal action.
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SECTION 13 Ownership
Residency. For purposes of this section, principals with at least fifty percent (50%) of the
ownership interest of any medical marijuana establishment shall be residents of the State of
Nevada for at least six (6) months prior to the submittal of application for a permit. Each
principal must provide verification that the individual resides in the State of Nevada; or has
taken verifiable actions to make Nevada his or her home indefinitely with no present intent to
reside in another state.
A. Provide proof of Nevada residency by submitting at least two of the following items with the
application for a permit or request for suitability as a principal in one of the following forms:
a)
Valid voter registration card with a Nevada address;
b)
A valid, unexpired Nevada motor vehicle registration or driver’s license or other
State identification card issued by the State of Nevada;
c)
Income tax statement showing a Nevada address;
d)
Deed/Title, Mortgage, Rental/Lease agreement for the individual;
e)
Other document, as may be acceptable to the Director.
SECTION 14 Expiration and Surrender of a License
Medical Marijuana Establishment licenses issued pursuant to this chapter shall be and remain
valid until the earlier of expiration or the term of two (2) years, suspension or revocation, or the
failure to pay all required fees.
Ownership or Location Changes. A medical marijuana establishment must surrender its
business license and reapply for a medical marijuana establishment permit when the
Department is accepting applications:
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A. Before an additional person gains an ownership interest in the medical marijuana
establishment; and
B. Any time there is a change in the location of the medical marijuana establishment.
SECTION 15 Denial of a Permit or License.
The Director shall deny and not process a permit application, shall recommend denial of any
license, and shall recommend denial of suitability of any principal or a key employee for a
medical marijuana establishment for any of the reasons contained in LVMC 6.06.250 and
6.06.260 for disciplinary action, without being limited thereto, or for any other reason consistent
with the following provisions:
A. Conviction, (a plea of nolo contende shall be considered a guilty plea for purposes of this
chapter), or violation of any crime of violence, any crime involving narcotics, fraud,
gambling, loan sharking, bookmaking, theft, moral turpitude, or any crime involving
evasion of taxes, or any other crime of moral turpitude indicating a lack of business
integrity or business dishonesty, whether committed in the State of Nevada or
elsewhere, whether denominated as a felony, gross misdemeanor or as a misdemeanor
and notwithstanding the passage of time since the conviction;
B. Failure of the proposed business or activity to be operated in compliance with state
laws, state regulating authority regulations or this chapter;
C. The applicant, or any principal thereof, having been identified by any law enforcement
agency, legislative body or crime commission as a member of, or an associate of,
organized criminal elements;
D. Making any false statements in the application or as to any other information presented
as part of the application process;
E. Evidence of current or prior unlawful or nuisance-creating operation as a permitee or
licensee in this or another jurisdiction;
F. Applicant, or any principal thereof is presently under indictment or the subject of criminal
complaint for any of the crimes described in subsection (1) of this section;
G. Making or causing to be made any statement on an application or document provided to
the City in connection with an application, which statement was at the time and in light of
the circumstances under which it was made, knowingly false or misleading;
H. Inadequate security plan or accounting plan, proposed location in an area not authorized
by Title 19 of the Las Vegas Municipal Code, and a land use permit for said facility at the
proposed location has not been granted;
I. Any previous license held by a person or principal that has been revoked for nonpayment of fees or disciplinary action.
J. If any person listed on the application as an owner, officer, board member, operator, or
on-site key employee has been involved in any prior operation of an unpermitted
dispensary, collective or cooperative, or has in any manner dispensed or transferred
marijuana without first obtaining a license from the City.
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SECTION 16 Medical Marijuana Establishment Restrictions
A. Location - Medical Marijuana establishment licenses may not be located in the following:
1. Where law enforcement access, without notice or cause, is limited;
2. On federal lands; or
3. Within another business
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B. No on-premise consumption - A medical marijuana establishment may not allow:
1. the use, smoking, ingestion or consumption of any marijuana or marijuana infused
product on the licensed premises;
C. Signs and Advertising - Any person or premises licensed as a medical marijuana
establishment shall comply with all City ordinances regulating signs and advertising. In
addition, no licensed medical marijuana establishment shall use any advertising material
that is misleading, deceptive, or false, or that, as evidenced either by the content of the
advertising material or by the medium or the manner, in which the advertising is
disseminated, is designed to appeal to minors. All signs, packaging and advertising shall
contain the words “For registered Nevada medical marijuana patients only.” Provided,
however, this language shall not be required to be displayed upon any sign identifying a
medical marijuana dispensary.
D. Advertisement locations - Except as otherwise provided in this subsection, it shall be
unlawful for any person licensed under this article or any other person to advertise any
medical marijuana or medical marijuana infused product anywhere in the city where the
advertisement is visible to members of the public from any street, sidewalk, park or other
public place, including advertising utilizing any of the following media:
1. Any Off-Premise Sign or other outdoor general advertising devise as defined by
LVMC Title 19;
2. Any sign mounted on a vehicle;
3. Any hand-held, human signage or other portable sign;
4. Any handbill, leaflet or flier directly handed to any person, deposited, fastened,
thrown, scattered, cast, or placed in a public place, left upon a motor vehicle, or
posted upon any public or private property without the consent of the property owner.
5. Any electronic, video, radio or broadcast medium available to the general public.
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The prohibition set forth in this paragraph shall not apply to:
1. Any sign located on the same lot as the medical marijuana establishment which
exists solely for the purpose of identifying the location of the medical marijuana
establishment and which otherwise complies with the state regulating authority, the
conditions of approval of the license and other applicable city laws and regulations;
or
2. Any advertisement contained within online media, a newspaper, magazine, or other
periodical of general circulation within the city; or
3. Advertising which is purely incidental to sponsorship of a charitable event by a
medical marijuana establishment.
E. Minors Prohibited - The presence of minors, under the age of 21 years of age, on the
premises of a medical marijuana establishment is prohibited unless they are in a dispensary
and the minor is a qualified patient and they are in the presence of their parent or legal
guardian.
1. No licensee shall cause, permit or allow, either by act or by failure to act, the
violation of subsection E of this section. Any violation of subsection E of this section
shall subject the licensee of the medical marijuana establishment where the violation
occurred to the immediate suspension of the license.
F. Testing of Medical Marijuana - Medical marijuana facilities shall use an independent,
certified and City licensed laboratory to analyze a representative sample from each
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separately procured batch of dried medical marijuana in accordance with State regulating
authority requirements.
G. Pesticides - Any medical marijuana from which the representative sample analysis tested
positive for a pesticide or other contaminant at a level which exceeds the local, State, or
Federal regulatory or statutory standard for the food and drug supply, shall not be provided
to a customer, dispensaries or edible-infused product establishment and shall be destroyed
forthwith. Any medical marijuana provided to customers shall be properly labeled in strict
compliance with State and local laws.
H. Transportation - Medical marijuana may only be transported by a licensed cultivation
facility or licensed edible production facility/marijuana infused production facility.
Transportation must meet all requirements of the state regulating authority.
1. A vehicle for the transportation of medical marijuana must not have any visible logos,
signs or depictions indicating the contents of the vehicle are medical marijuana
products or that the product may be from a licensed medical marijuana
establishment.
2. All products must be secured in an electronically locked and tamper-proof container
secured to the actual vehicle.
3. All required transportation logs must be in the vehicle and made available to law
enforcement at any time the log is inspected. Upon being stopped by a law
enforcement officer within the city, each driver must identify to the officer that the
product contained within the vehicle is medical marijuana from a licensed medical
marijuana facility and present valid work cards, identification from the medical
marijuana facility, the route the vehicle was authorized to travel and present the
actual log for inspection.
4. The driver must note in the log all stops the vehicle makes during the route, including
stops required by law enforcement. The time of each stop, the location, the reason
for such stop and the distribution of any product must be included in the log. The log
must be signed by the receiver of any product, and the product and verification
entered into the electronic tracking system approved by the state regulating authority
at the point of transport and distribution.
5. All products must be contained in sealed tamper proof, tamper evident packaging
and labeled with a weight measurement consistent with the log documentation.
6. Wholesale product which is packaged for transport to an edible-infused products
facility cannot exceed 1-pound tamper proof packages.
7. Wholesale product which is packaged for transport to a dispensary must be
individually packaged in tamper-proof and trackable packages of not more than 2
and 1/2 oz. and aggregated into packages of not more than 1 pound noting the
number of individual packages, the total weight and all tracking information required
by the state regulating authority.
I. Employees - It is unlawful for a licensee to employ any person who is not the holder of a
valid work card and registration/I.D. card issued by the state regulating authority and for the
card not to be in the employee’s possession while on shift.
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SECTION 17 Facilities not located within the City jurisdiction.
A medical marijuana cultivation facility or a medical marijuana edible or infused products facility
which has obtained an operational premise license in a jurisdiction other than the City of Las
Vegas may apply to the Director for a license to provide medical marijuana and/or products to
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dispensaries located within the city. All applicants must meet the requirements set forth in this
chapter and be properly licensed within the jurisdiction in which they are located.
a)
b)
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f)
g)
A certification permit for such businesses are not required;
A full and complete license application is required, on a form determined by the Director;
Applicant shall provide proof of licensing in another jurisdiction to the Director;
Applicant must meet all criteria for the applicable license;
Licensee must comply with all provisions of this chapter;
Licensee shall pay all annual fees;
Licensee shall pay all quarterly gross revenue fees based on all products sold to
dispensaries licensed within the corporate boundaries of the City of Las Vegas; and,
h) All principals must be found suitable to hold such license within the City of Las Vegas
and the license must be approved by the City Council.
SECTION 18 Security Requirements.
All medical marijuana facilities shall comply with the following security requirements:
A. Display of identification badge - All employees on the licensed premises shall be required
to hold and properly display an identification badge issued by the licensed employer at all
times while on the premises. All employees must have, in their possession, any state
regulating authority issued registered agent card and a valid work card.
B. Alarm systems - At a minimum, each licensed premises must have a security alarm system
on all perimeter entry points and perimeter windows. Motion detectors, pressure switches,
duress, panic, and hold-up alarms are also required in a security plan submitted and
approved by the Director. The alarm system must be a centrally monitored fire and burglar
alarm system, and monitored by an alarm company properly licensed with the City, and
whose agents are properly licensed and registered under applicable laws.
C. Surveillance system - A 24 hour surveillance system is required to monitor the interior and
exterior of a medical marijuana facility and must be accessible to authorized law
enforcement in real-time.
a. The system must be in operation at all times, and is required to be a complete video
surveillance with minimum camera resolution of 640x470 pixel and must be internet
protocol (IP) compatible and recording system for controlled areas within the
licensed premises and entire perimeter enclosing a marijuana products facility, to
ensure control of the area. The requirements include image acquisition, video
recording, management and monitoring hardware and support systems.
b. All recorded images must clearly and accurately display the time and date. Time is to
be measured in accordance with the U.S. National Institute Standards and
Technology standards.
c. All recorded images and cameras shall allow for the clear and certain identification of
any individual or activity on the licensed premises.
d. The surveillance system storage device must be secured on-site in a lock box,
cabinet, closet, or secured in another manner to protect from employee tampering or
criminal theft.
e. The 24 hour surveillance system is required to record and all recording must be kept
for a minimum of ninety (90) days.
D. Security Guards - A minimum of three (3) security guards duly licensed with the State of
Nevada shall be onsite at all cultivation and dispensaries at all times, and shall not possess
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firearms or tasers. A minimum of one (1) security guard shall be required at all edible or
infused production facilities.
a. The establishment shall direct security guards to be responsible for ensuring
compliance with all local and state regulations regarding the facility and must patrol
parking areas and outdoor premises for loitering, unlawful sale of medical marijuana
by customers, and consumption of medical marijuana.
b. Security guards shall be directed to report to the establishment all unlawful sales of
medical marijuana observed on the premises. The establishment shall immediately
cease providing medical marijuana to such customer or dismiss any employee
observed making such transactions and report within twenty-four (24) hours to the
Las Vegas Metropolitan Police Department the observed transaction and provide any
surveillance documentation.
Notice of Theft - Any theft of marijuana seedlings, clones, plants, trim or other plant
material, extract, infused product, or other item containing marijuana must be reported to the
Las Vegas Metropolitan Police Department and Business Licensing in writing within 24
hours of occurrence.
Emergency Call - A sign shall be posted at the entrance to the location containing the
name and functioning telephone number of a 24-hour on-call member engaged in the
management of a medical marijuana establishment who shall receive, log, and respond to
complaints and other inquiries.
Magnetic Locks - All doors, secure areas and storage facilities must have a magnetic or
electronic locking system which tracks the name assigned to an access key, and time of
access to all corresponding access keys.
Cultivation Facility - Any facility open for the cultivating of medical marijuana must meet all
requirements set by the Building Official and which at a minimum shall:
a. Maintain complete video surveillance within the licensed premises and entire
perimeter fencing and gates enclosing a cultivation facility, to ensure control of the
area.
b. Control and monitor through the video surveillance system all access areas, security
rooms/areas and all points of ingress/egress to limit access to these areas; all points
of ingress/egress to the exterior of the licensed premises; and all point-of-sale (POS)
areas must have fixed camera coverage capable of identifying activity occurring
within a minimum of twenty (20) feet of all entry and exit points.
c. Secure all entrances and exits to the facility with magnetic locks and maintain
surveillance video recorded from both indoor and outdoor vantage points, and such
system must be capable of clearly identifying any activities occurring within the
facility or within the grow rooms in low light conditions.
d. Secure all perimeter fencing and gates enclosing a cultivation facility with full video
surveillance capable of clearly identifying any activities occurring within twenty (20)
feet of the exterior of the perimeter. Any gate or other entry point that is part of the
enclosure for an outdoor growing operation must have fixed camera coverage
capable of identifying activity occurring within a minimum of twenty (20) feet of the
exterior, twenty-four (24) hours a day. A motion detection lighting system may be
employed to illuminate the gate area in low light conditions.
e. Secure areas where marijuana is grown, cured, manufactured or destroyed, with a
camera placement in the room facing the primary entry door, and in adequate fixed
positions, at a height which will provide a clear, unobstructed view of the regular
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activity without a sight blockage from lighting hoods, fixtures, or other equipment,
allowing for the clear and certain identification of persons and activities at all times.
I. Edible Marijuana Products Facility - Any facility open for the production of edible
marijuana products must meet all requirements set by the Building Official which at a
minimum shall:
a. Maintain in operation at all times, complete video surveillance within the licensed
premises which monitors all controlled access areas, security rooms/areas and all
points of ingress/egress to limited access areas, all points of ingress/egress to the
exterior of the licensed premises, and all delivery and shipping, labeling and
packaging areas must have fixed camera coverage capable of identifying activity
occurring within a minimum of twenty feet.
b. Secure and provide video monitoring of all entrances and exits to the facility and
shall record from both indoor and outdoor vantage points, with a system capable of
clearly identifying any activities occurring within the facility.
c. All medical marijuana products must be stored in a secured room or device which
contains limited entry controlled by an electronic locking system which tracks entry
and time of all electronic access.
J. Dispensary Security Requirements - Any facility open for dispensing of medical marijuana
must meet all requirements set by the Building Official and at a minimum contain the
following areas meeting the detailed conditions, separated and segregated with an
electronic locking system:
1. Waiting area containing only one entrance for the public with both surveillance
cameras which is visible immediately from one fixed staffed security station;
2. Consultation room where medical marijuana product is viewed for purchase must be:
a. Separated and segregated from any waiting area;
b. Have no obscured windows or viewing area that may be seen from the public
right of way or waiting area;
c. Any customer allowed to enter any room where medical marijuana is viewed
for purchase is required to be accompanied on a one to one basis by an
employee of the establishment;
d. Only sample products may be viewed for purchase in such a room;
e. Customers may not remove any medical marijuana product from the
consultation room.
3. Storage room and storage device in which all products for sale must be stored in a
separated and secured room.
a. A storage device to secure all products must be onsite and approved by the
Las Vegas Metropolitan Police Department within the secured storage room;
b. All products whether for viewing or sale must be stored and locked within the
storage device whenever the facility is closed;
c. The room must meet the Building Officials standards for odor control;
d. The room must be under surveillance by the camera system at all times.
e. One room may store both product and money and legal tender, however
separate storage devices must be maintained and both must be under video
surveillance.
4. Transaction room for all product transactions and money or legal tender and receipts
must be kept in a separated secured area from customers. Such area may be visible
by glass to customers.
a. No monetary transactions may be made in the same room or viewed from a
room where medical marijuana is displayed.
b. No monetary transactions may be made in a room that is directly accessible
to a customer or the waiting area; employees making transactions may be
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visible to the waiting area, but must be separated by a secure structure and
all transactions must be visible to the surveillance system.
c. All medical marijuana products must be placed in an opaque bag or cover
that does not allow the product to be visible from outside of the bag or cover
and closed by the attendant of the dispensary prior to transfer to a customer.
SECTION 19 Cultivation Facility
A cultivation facility license allows the licensee to produce marijuana for sale at wholesale to
licensed marijuana production facilities and to licensed dispensaries. Marijuana cultivation must
take place within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof,
and doors. To obscure public view of the cultivation area indoor premises, all doors and
openings must be secured by indoor walls which block all view of cultivation and its ancillary
uses.
A. The operating documents of a registered cultivation center shall include procedures for the
oversight of the cultivation facility, a marijuana plant monitoring system including a physical
inventory recorded weekly, a marijuana container system including a physical inventory
recorded weekly, accurate record keeping and a staffing plan approved by the state
regulating authority.
B. A cultivation facility shall implement a security plan approved by the Las Vegas Metropolitan
Police Department, which must include: facility access controls, perimeter intrusion
detection systems, personnel identification systems, 24 hour surveillance system to monitor
the interior and exterior of the cultivation center facility and accessible to authorized law
enforcement in real-time.
C. Required submittals sets of building plans including but not limited to: grow lighting
specification, required and available electrical loads, mechanical exhaust and air filtration
systems sealed by a State of Nevada registered electrical, mechanical engineer or
equivalent.
D. A cultivation facility must meet all odor control regulations established by the building
department and respond within 24-hours to any complaints concerning odors and file with
business licensing and the Building Official all action taken to address odor complaints. The
Building Official, upon determination of the existence of detectable odor from any cultivation
facility, may require additional measures by the facility to control such odor and a timeframe
for the implementation of such measures at any cultivation facility. Failure to complete
required improvements within the timeframe specified by the Building Official is grounds for
suspension of the license by the Director.
E. All cultivation of marijuana must take place in a standalone, enclosed and locked building at
the physical address within the limits of the county of Clark provided to the department
during the permit process.
F. The cultivation facility location shall only be accessed by the cultivation facility registered
agents, state and local inspectors, law enforcement or other emergency personnel, and
contractors working on jobs unrelated to medical marijuana, such as installing or maintaining
security devices or performing electrical wiring. All names of all individuals accessing the
facility for such purposes must be recorded in a log and such log must be available for
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inspection. The log must include the times of arrival and departure of all persons accessing
the building. All contractors must hold a City of Las Vegas Business License.
Comply with all regulations of the state regulating authority.
A cultivation facility is restricted to wholesale transactions and may not sell or distribute any
marijuana to any individual or entity other than a registered and licensed dispensary or
edible or infused marijuana production facility under this Chapter.
All harvested marijuana for distribution to a dispensary must be packaged in a labeled
medical marijuana container of not more than two and one-half ounces and entered into a
data inventory collection system approved by the state regulator.
A cultivation facility agent shall notify local law enforcement and the Department within 24
hours of the discovery of any loss or theft. Notification shall be made by phone or in-person,
or by written or electronic communication.
The cultivation facility shall notify the Department to conduct a pre-operational inspection
prior to accepting any plant materials into the facility and pay all related inspection fees.
A cultivation facility shall comply with all state and federal rules and regulations regarding
the use of pesticides.
Cultivation is limited to the interior of a building. Such building proposed for cultivation of
medical marijuana must meet all applicable building standards and certified by the Building
Official for such use.
No entrance, exit or opening in the building may allow a view of the production of marijuana.
Each entrance, exit or opening must provide a wall adequate to obscure all view of the
cultivation process.
No cultivated medical marijuana or unusable marijuana may be allowed to leave the
cultivation area in any container that allows a view of the product, and such containers may
not be marked as marijuana or cannabis. All containers must be clearly marked with the
name and identification of the cultivation facility, and the destination including the name of
any dispensary or edible or infused production facility.
Cultivation facilities may have areas dedicated to three types of plants:
a. Mature or harvestable plants which will be harvested within 30 days;
b. Seedlings which are plants in the premature state and will not be harvested within 30
days; and,
c. Mother plants which are plants not harvested for production or dispensary Cultivation
by each licensee is limited to 99 plants in the harvestable state at any one licensed
cultivation facility.
A cultivation facility may have only one-third of the total square footage of the building
dedicated to growing any plants.
A physical barrier must be in place to restrict access to the premises including a wall and
controlled access gate for vehicular traffic.
The maximum amount of space for marijuana cultivation as measured by total building
square footage is __________. Applicants must designate on their permit application the
size category of the cultivation premises and the amount of actual square footage of their
premises that will be designated as plant canopy. Licenses will be allocated with conditions
restricting the square feet of the facility for plant canopy. Licenses will be designated in 5000
square foot increments.
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T. The Council may reduce the square footage of any applicant or licensee if:
1. the square footage designation to plant canopy exceeds the maximum of
__________aggregated square feet set for all permits;
2. The Council determines the proposed facility is not in the interest of the
surrounding community;
3. If fifty percent production space used for plant canopy in the licensee’s operating
plan is not met by the end of the first year of operation, the Council may reduce
the tier of licensure.
U. The maximum allowed amount of marijuana on a cultivation establishment premises at any
one time is six months of their annual approved harvest. All harvest must be secured in a
separated room with electronic access locking systems that identifies access to such room
by access key holder and meets standards set by the Las Vegas Metropolitan Police
Department for a secure storage device. All stored product must be included in the
inventory control system with a reference number and location within the secured storage
device.
V. All marijuana that is intended to be removed or transported from a cultivation facility to an
edible or infused production facility or a dispensary shall be staged in an area known as the
“quarantine” location for a minimum of twenty-four hours. Transport manifest with product
information and weights must be affixed to the product. At no time during the quarantine
period can the product be handled or moved under any circumstances. All transportation
logs must travel with the product and be made available to any law enforcement officer or
business licensing during inspections or routine stops.
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SECTION 20 Cultivation Limit
The Council may enter into agreements with other local governments to restrict cultivation to a
regional location or a regional limit based on square feet of building space that may be licensed
for the cultivation of medical marijuana to supply licensed dispensaries within the City.
SECTION 21 Independent Testing Laboratories
A. Independent Testing Laboratories meeting certification by the state regulating authority are
only allowed to have marijuana onsite in the manner described by the state regulating
authority and must have records to prove the all marijuana and marijuana-infused products
on site are for testing purposes only.
B. The facility must comply with all provisions of this chapter and ensure that products meet the
minimum or maximum criteria established for edible, infused or cultivated products available
to be produced or sold to city licensed dispensaries.
SECTION 22 Edible Products Facility
A marijuana products facility license allows the licensee to process, package, and label usable
marijuana and marijuana-infused products for sale at wholesale to marijuana dispensaries.
A. Onsite Product - A marijuana products facility is allowed to have a maximum of 30 days of
their average useable marijuana and 45 days of their total production on their licensed
premises at any one time.
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B. Types of Processing allowed at facilities licensed within the City Limits. Production
facilities are limited to certain methods, equipment and mediums when creating marijuana
extracts.
1. A Production facility may use a professional grade closed loop CO2 gas
extraction system where every vessel is rated to a minimum of nine hundred
pounds per square inch and follow all applicable fire, safety and building codes in
processing and the storage. The CO2 must be of at least ninety-nine percent
purity.
2. A production facility may use heat, screens, presses, steam distillation, ice water
and other methods without employing solvents or gases to create kief, hashis,
bubble hash, or infused dairy butter, or oils or fats derived from natural sources.
3. A production facility may not use solvents or gases to produce extracts for the
sale to city licensed dispensaries.
4. Parts per million for one gram of finished extract cannot exceed 500 parts per
million or residual solvent or gas when quality assurance tested.
C. Inspections.
1. The Department will conduct a pre-operational inspection at all infused products
facilities to determine whether the facilities, methods, practices and controls used
in the manufacture, processing, or holding of marijuana-infused products conform
to or are operated or administered within the requirements of this Chapter;
2. Each infused products facility must have a current health permit issued by the
Clark County Health Department or the state regulating authority which ensures
that the manufacturing practices conform to state regulations to ensure food
products for human consumption are safe and have been prepared, packed and
held under sanitary conditions;
3. Licensed infused product facilities shall immediately allow the Department to
inspect the premises for all fixtures, furniture, machinery and devices used for
preparing marijuana-infused products;
D. Allowed Products - Products allowed to be produced or sold at city licensed facilities are
limited to the following:
1. No marijuana infused products requiring refrigeration or hot-holding or
considered potentially hazardous food shall be manufactured, sold or distributed
at such facility.
2. No infused products may contain alcoholic beverages as defined and regulated
by Chapter 6.50.
3. No product may have the appearance of candies, gum or other like products
which may be attractive to children.
4. No infused water or beverages may be produced or bottled for drinking as a
beverage;
5. Products must be produced for individual consumption only and not intended for
general or cooking use such as sauces, butters, food or drink additives;
6. Baked products infused with medical marijuana (such as brownies, bars, cookies
and individually sized breads and pastries), tinctures, and other non-refrigerated
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items are acceptable for production and sale. Such product must not be viewed
from or depicted on the tamper resistant and tamper evident packaging.
7. The maximum number of servings. The maximum number of servings in any one
single unit of marijuana-infused product meant to be eaten or swallowed is ten
services or one hundred milligrams of active THC. A single unit of marijuanainfused extract for inhalation cannot exceed one gram.
E. Package and Labeling - All items shall be individually wrapped or packaged at the original
point of preparation and meet all of the following criteria.
1. Smaller, like items such as small candies or cookies may be packaged into larger
quantities in a single wrapped tamper proof and tamper evident package.
2. Labels must meet approval of the state regulating authority and provide the
above warnings in red bold font measuring at least standard font size 14;
3. Labels must have a medical or simple appearance without pictures or depictions
of the product or ancillary ingredients;
4. Labels must not have the appearance of similar labels found in a grocery store;
5. Any changes in labels approved in the permit application and licensing process
must be approved for conformance with this chapter prior to manufacture and
use.
6. The City may create a logo that must be placed on all usable marijuana and
marijuana-infused products.
7. The packaging of the medical marijuana infused products shall conform to the
labeling requirements of the state regulating authority and shall include the
following information in English in red bold font measuring at least standard font
size 14 on each product offered for sale or distribution:
i. The name and address of the registered cultivation center where the item
was manufactured;
ii. The common or usual name of the item;
iii. All ingredients of the item, including any colors, artificial flavors, and
preservatives, listed in descending order by predominance of weight
shown with common or usual names;
iv. The following phrase: “This product was produced in a medical marijuana
cultivation facility, not subject to public health inspection, that may also
process common food allergens.”
v. The pre-mixed total weight (in ounces and grams) of usable cannabis in
the food product;
vi. A warning that the item is a medical marijuana-infused product and not a
food must be distinctly and clearly legible on the front of the package;
vii. A clearly legible warning emphasizing that the product contains medical
cannabis and is intended for consumption ONLY by registered qualifying
patients;
viii. A clearly legible warning emphasizing the health risks associated with the
consumption of the product when appropriate. Any and all labels that
apply must be present on the package:
ix. “Should not be used by women that are pregnant or breast feeding,”
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x. “Keep out of reach of children,”
xi. “Caution: When eaten or swallowed, the intoxicating effects of this drug
may be delayed by two or more hours.”
xii. “This product may be illegal outside of the state of Nevada.”
xiii. Date of manufacture and “use by date;”
xiv. The potency of the THC in the product;
F. Branded Merchandise. No giveaways, coupons or distribution of branded merchandise is
allowed. No merchandise may be produced or endorsed by any medical marijuana
establishment or allow any approved logo or business name to be used on merchandise.
SECTION 23 Dispensary.
A marijuana dispensary license allows the licensee to sell only prepackaged usable marijuana,
edible marijuana products and approved ancillary marijuana paraphernalia at retail to state
regulating authority designated medical marijuana card holders.
A. Edible Products. No marijuana infused products requiring refrigeration or hot-holding or
considered potentially hazardous food shall be dispensed, sold or distributed.
a. No infused products dispensed, sold or distributed may contain alcohol beverages as
defined and regulated by Chapter 6.50.
b. All marijuana infused products offered for sale at licensed dispensaries shall be
labeled in accordance with section 22. (see Infused Products)
c. Any dispensary that sells edible marijuana-infused products must display a placard
that states the following: “Edible marijuana-infused products were produced in a
kitchen not subject to public health inspections that may also process common food
allergens.” The placard shall be no smaller than 24 inches tall by 36 inches wide,
with font size letters no small than 2 inches. The placard shall be clearly visible and
readable by customers and shall be written in English.
d. Baked products infused with medical marijuana (such as brownies, bars, cookies and
individually sized breads and pastries), tinctures, and other non-refrigerated items
are acceptable for sale and distribution. Such product must not be viewed from or
depicted on the tamper resistant and tamper evident packaging and must meet all
marijuana infused product labeling requirements.
e. A dispensary may not sell or distribute extracts that are not infused in products. A
marijuana extract does not meet the definition of a marijuana-infused allowed
product.
B. Other Products. A dispensary is not allowed to sell any products not required for
effective use of the medical marijuana currently within approved inventory. No gifts,
novelties and ancillary business activity is allowed within a dispensary. Ancillary
paraphernalia which are products required to administer medical marijuana is limited to
the consultation room and only to a display area of 10 square feet of gross retail space
in the room
C. Banking Services. A dispensary may locate one automatic teller machine for access to
patients only for the dispensing of money if the person operating the machine has been
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D.
approved by the Director under Chapter 6.06.125 and the business is licensed to
operate such by the city.
Prohibited Activities. The following activities are prohibited:
a. Any off-premise video, media, broadcasting or electronic solicitation for promotional
advertising;
b. The selling of products below their acquisition costs.
c. The giving of free samples or free product to any person, employee or customer;
d. The opening of any package of retail marijuana or marijuana-infused product;
e. A drive-thru or walk-up window for transactions or product transfer;
f. A dispensary shall not dispense or distribute, sell, transfer or in any other way
provide marijuana other than by direct, face-to face, in-person transaction with
patient or caregiver at the licensed facility. Marijuana shall not be provided by any
other means of delivery including:
i. Internet sales;
ii. Transport, mail or private delivery of product;
g. Entering a dispensary with hats, sunglasses or face obscuring accessories. Prior to
being allowed to enter any secured area of the facility, all customers must remove all
face obscuring accessories;
h. No employee shall be paid for services in the form of marijuana product;
i. No physician or medical person making recommendations for medical marijuana
may be located within a dispensary;
j. A dispensary is prohibited from referring customers to medical personnel for the
express purpose of securing a medical marijuana referral to obtain a state issued
medical marijuana card;
k. Reward programs, customer loyalty programs, promotional activities, or the offer of
free or discounted product to any customer or employee;
l. Giveaways, coupons or distribution of branded merchandise.
m. No merchandise may be produced or endorsed by any medical marijuana
establishment or allow any approved logo or business name to be used on
merchandise.
n. The display on any product in any manner visible to the general public from the right
of way or outside of the facility.
o. Off-site delivery of product by licensee is prohibited. All sales and distribution of
medical marijuana by a licensed medical marijuana dispensary shall occur only upon
the licensed premise, and the licensee shall be strictly prohibited from delivering
medical marijuana to any person at any other location.
Resale. Dispensaries must inform each customer either by signage, written receipt or
on product labeling that it is illegal to re-sell medical marijuana to any person.
Supply. Dispensaries are allowed to have a maximum of 3 months of their average
inventory on their licensed premises at any given time.
Persons allowed onsite. With the exception of security guards, and required
inspections, only qualified patients and caregivers shall be allowed inside of the
Dispensary.
Notifications. The Dispensary shall provide the Director, the Sheriff and all neighbors
located within fifty (50) feet of the premises with the name, phone number, and facsimile
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number of an on-site community relations staff person to whom one can provide notice if
there are operating problems associated with the Dispensary.
Signs and Advertising. A dispensary shall comply with the following additional
advertising restrictions:
1. Display at the entrance to the facility a sign which includes the words, “Persons
under twenty-one years of age not permitted on these premises”
2. No advertising, materials or postings within the waiting areas may advertise
locations, devices or activities promoting the consumption of marijuana or other
facilities selling or purporting to provide locations for the private or public
consumption of marijuana.
3. No marijuana advertising or labels of useable marijuana and edible marijuana
infused products sold in the City of Las Vegas may contain any statement, or
illustration that:
a. Is false or misleading;
b. Promotes over consumption;
c. Depicts a child or other person; or
d. Contains objects, such as toys, characters, or cartoon characters or any
other depiction designed to be appealing in color or depiction to children.
Electronic Verification. Prior to dispensing any medical marijuana, each Dispensary
shall electronically verify the validity of each card authorizing a patient to purchase
medical marijuana and the doctor making a cannabis recommendation. This verification
will be by checking via the Internet with the state regulating authority. If electronic
verification of any card, for any reason is not accessible, the dispensary will deny the
transaction.
Armored vehicle services. Dispensaries shall obtain the services of a licensed
armored vehicle service and arrange for daily pick-ups of all monies.
Testing Log. Dispensaries shall maintain and publicly display a written log at the
location documenting the date, type, and amount of marijuana tested; the name of the
laboratory where the marijuana was tested; the laboratory report containing the results of
the testing, including the name and level of the substance detected; and the disposition
of the marijuana from which the contaminated sample was obtained, including the
amount of marijuana and the date and manner of disposition.
Hours. A dispensaries hours of operation shall be limited to between 7:00 am and 8:00
pm. A dispensary shall not close during its hours of operation, either on a temporary
basis or ongoing basis. Any temporary or ongoing closures, except for those necessary
during an emergency situation, must be pre-approved by the Director. Failure to gain
approval from the Director prior to closure shall be grounds for suspension of the
License.
Co-location. A dispensary cannot be co-located with a cultivation or production facility.
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SECTION 24 Modification of the premises
Any modification of the premises of a medical marijuana establishment shall be filed 60 days in
advance of any proposed construction. A full and complete copy of all architectural and building
plans shall be filed with the Director for a review of compliance with this chapter. The Director
shall review the plans and approve any modifications in compliance with this chapter prior to the
commencing of any construction of modifications.
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SECTION 25 Renewal of licenses.
A. On or before the one-year anniversary date of any license issued pursuant to this chapter,
the licensee shall demonstrate to the satisfaction of the Director that the licensee has
applied for and received a one-year renewal of the licensee’s state certification from the
state regulating authority and shall pay the annual license fee for the second year of the
local license as provided in section 26. Failure of the licensee to renew and keep current
the state license or make timely payment of the local licensing fees shall be ground for
immediate suspension of the license pursuant to section 37.
B. No less than 60 days prior to the expiration of a medical marijuana establishment license,
the licensee may apply for renewal of the license. If the application for renewal is not filed
within the time specified in this section, the licensee may thereafter file a written application
for renewal of the license within 10 days, but in that event, the licensee shall pay a daily
penalty fee of $ << >>. If the application is not received by 5 p.m. of the 10th day after the
required renewal submittal date, the license shall be deemed surrendered, which will have
the same effect as being revoked, and the medical marijuana establishment may not
operate unless and until a new license has been obtained;
C. An application for renewal must be provided on a form acceptable to the Director and
accompanied by:
a. All required fees;
b. A completed license application filed with an affidavit, executed under penalty of
perjury, to the Department the following information.
c. An updated detailed financial history and business associations covering at least a
ten-year period immediately preceding the year of filing for each principal and any
beneficial owner with a five percent interest in a medical marijuana establishment, or
affidavit testifying that no changes have occurred in the previous licensing period;
d. An updated detailed personal history covering at least a ten-year period immediately
preceding the year of filing for each principal and any beneficial owner with a five
percent interest in a medical marijuana establishment, or affidavit testifying that no
changes have occurred in the previous licensing period;
e. One-time, nonrefundable renewal application fee of $ << >>.
f. Updated documentation demonstrating the complete ownership structure of the
applicant, including, but not limited to, all articles of organization or incorporation,
partnership agreements, stock certificates, state business license, taxation
documents and current listing of officers, members and/or managers, and any profit
sharing agreements made outside of the ownership structure for the ensuing
licensing period, or an affidavit testifying that no changes are proposed for the
requested licensing period;
g. Updated documentation on the residency of each principal, or affidavit testifying that
no changes have occurred;
h. List of all ownership of any medical marijuana facilities in any other states, or affidavit
testifying that no changes have occurred;
i. List of all license numbers for all other active business licenses issued to listed
owners by the City of Las Vegas or other jurisdiction within the State of Nevada, or
affidavit testifying that no changes have occurred;
j. A complete and accurate list of all employees, the full, true and correct names and
addresses of each and every employee and their state regulating authority
registration documentation number and work card registration expiration date;
DRAFT
24
D.
E.
F.
G.
k. A complete and accurate copy of the application and all accompanying documents to
be filed pursuant to NRS 453A.332 with the State regulating authority to renew the
certification to operate a medical marijuana establishment ;
l. A copy of a commercial general liability insurance policy (bodily injury, property
damage, and medical marijuana liability) in a policy limit not less than $2,000,000.00
per occurrence and $5,000,000.00 in aggregate, which specifically includes liability
for medical marijuana;
m. A request for any changes to the sign plan showing all proposed exterior and interior
signage including the size and full color rendering of signage;
n. A copy of all current contracts, proposed contracts for consulting, management,
renting or leasing;
o. A copy of all leases, and contracts with any other proposed medical marijuana
establishment;
p. A release of claims and a hold harmless agreement to the City for its use of the
information provided by the renewal applicant or discovered during any investigation
thereof; and
q. A statement certifying and attesting that no changes have occurred in the ownership,
operations or original application with the exception of those specifically noted in the
renewal application.
The Director may renew a license based on a determination that no material changes have
been made to the original application or refer the renewal with noted requested changes to
the Council for consideration. All changes in ownership or location must be referred to the
City Council as a new permit application during a posted request for certification permits.
The Director may conduct random criminal history checks of all principals and registered
employees at the time of renewal. An applicant shall pay all fees associated with the
updating of their background and criminal history investigation within 15 days of notification
by the Director.
The Director may decline to renew a license per LVMC 6.02.090.
The Director shall deny any application for renewal that does not comply with all submittals
including fees at the time of submittal.
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SECTION 26 Fees – When Due.
A. Each annual fee is due in advance at the time of licensure. Any annual fee which is not
received by the Department on or before the due date shall be assessed a late-payment
penalty in an amount equal to ten percent (10%) of the amount of such fee.
B. If the annual fee is not received by the Department within fifteen (15) days after the due
date, an additional penalty in an amount equal to twenty-five (25%) percent of such annual
fee shall be assessed. If the annual fee and all penalties are not received by the
Department within thirty (30) days after the due date, the license shall be automatically
suspended and the business shall be ordered by the Director to cease and desist all
operations.
C. A license that has been suspended for nonpayment of license fees and penalties may be
considered for reinstatement by the Council only within six (6) months from the due date and
only if a new permit application period has not been opened by the Council. The Council
may consider reinstatement, if the licensee complied with the Director’s order to immediately
cease operations, has paid all delinquent license fees and penalties, plus an additional
reinstatement fee in an amount equal to one-half of the annual fee for such business. The
reinstatement fee is exclusive of the regular annual license fee for that license. The fees and
penalties required to be paid pursuant to this Subsection (B) must have been paid not later
than ten (10) calendar days following the date of suspension of the license. The license
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D.
E.
F.
G.
shall be deemed automatically revoked without appeal if such fees and penalties are not
paid in accordance with this section.
Every medical marijuana establishment shall deliver to the Department, via electronic format
and written format, a quarterly written report and a statement, under oath, showing the true
and correct amount of gross revenue derived from the medical marijuana business in the
preceding applicable time period. At the option of the City, the City may require payment of
gross revenue fee revenues through electronic transfer and on a more frequent basis. Such
statement shall be accompanied by the payment of the correct amount of gross revenue
license tax due and owing. A signed certification shall be attached to the statement.
Said quarterly reports shall be received by the Director or designee no later than the first of
every January, April, July, and October.
Said records shall include all transactions up to ten (10) days prior to the required
submission date. If the first day of any quarter falls on a non-City business day then the
records shall be due the first available City business day.
No partial payments shall be received by any officer of the Director upon any license fee,
and all officers are hereby prohibited from receiving any sum less than the amount required
by the terms of the provisions pertaining to the particular license sought.
SECTION 27 Key Employee Required
DRAFT
A key employee is required per Chapter 6.06 for each medical marijuana establishment.
A. A key employee must be available to respond to the facility at all times a medical marijuana
facility is in operation.
B. A dispensary must have a key employee on site during all hours of operation.
C. A medical marijuana edible or infused production facility must have a key employee onsite
during all hours the facility is open for producing, receiving or transferring any medical
marijuana product.
D. A medical marijuana cultivation facility must have a key employee onsite at least eight (8)
hours in any twenty-four hour (24) period, at least five ( 5) days per week, and during all
hours that product is cloned, planted, harvested, weighed, trimmed, labeled, packaged, or
prepared for distribution or transported.
E. All key employees must be found suitable by the Director prior to being allowed to act in the
capacity of key employee.
SECTION 28 Death or incapacity of a medical marijuana licensee
An appointed guardian, executor, administrator, receiver, trustee, or assignee must notify the
Director in the event of the death, incapacity, receivership, bankruptcy, or assignment for benefit
of creditors of any licensee within ten (10) days of such appointment to act.
A. The business must cease all sales of medical marijuana products including wholesale
cultivation, edible or infused products and dispensary sales until such time as a new
certificate has been issued by the state regulating authority and a license has been granted
by the City.
B. When the matter is resolved by the court, the true party(ies) of interest may apply for a
license once certified by the state.
C. All marijuana products are subject to disposal, or may be transferred to an approved
licensee or maintained under a plan approved by the state regulating authority and the
Director.
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SECTION 29. Plan for closure.
Prior to the issuance of a license or the renewal of a license, each applicant must file with the
Director a plan for the disposal of all plant material, products and usable medical marijuana for
implementation due to closure, revocation or should the certificate issued by the state not be
renewed for operation. The plan must include notification to the Director, inspection prior to
closure and inspection and tracking of all materials to be disposed or transferred to another
establishment licensed as a medical marijuana establishment. The plan must be executable
within ten (10) days of such revocation, closure or non-renewal and be approved by the
Director. The plan must include that:
A. The business must cease all sales of medical marijuana products including wholesale
cultivation, edible or infused products and dispensary sales until such time as a new
certificate has been issued by the state regulating authority and a license has been
granted by the city.
B. All marijuana products are subject to disposal, or may be transferred to an approved
licensee or maintained under a plan approved by the state regulating authority and the
Director.
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SECTION 30 Disposal of medical marijuana.
Medical marijuana must be stored, secured and managed in accordance with applicable state
statutes and regulations, applicable Health Department regulations and LVMC Chapter 14. A
medical marijuana establishment must dispose of medical marijuana that is not usable
marijuana within ten (10) calendar days of expiration of use or harvest. Medical marijuana
waste must be made unusable prior to leaving a licensed medical marijuana facility.
A. Solid and liquid wastes generated during marijuana production and processing must be
stored, managed, and disposed of in accordance with applicable state and local laws and
regulations.
B. Wastewater generated during marijuana production and processing must be disposed of in
compliance with LVMC Chapters 14.17 and 14.18, and any other applicable federal, state
and local laws and regulations.
C. Waste from the production and processing of marijuana plants must be evaluated to
determine if those wastes designate as dangerous waste. It is the responsibility of each
waste generator to properly evaluate their waste to determine if it designates as a
dangerous waste and would be harmful to health or the environment and to dispose of all
such waste in accordance with this code, state regulations and regulations of the Health
District. Wastes that must be evaluated include, but are not limited to the following:
a. Marijuana flowers, trim and solid plan material;
b. Waste solvents
c. Discarded plant waste, spent solvents and laboratory wastes from any marijuana
processing or quality assurance testing.
d. Marijuana extract that fails to meet quality testing.
e. Wastes that does not designate as dangerous waste must be rendered unusable
prior to leaving a licensed cultivator, production, laboratory or dispensary. Disposal
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D.
E.
F.
of the marijuana waste rendered unusable must follow the methods under subsection
E.
Wastes that must be rendered unusable prior to disposal include, but are not limited to:
a. Dangerous Waste;
b. Marijuana plant waste, including roots, stalks, leaves, and stems that have not been
processed with solvent;
c. Solid marijuana sample plant waste possessed by third-party laboratories certified by
the state regulating authority for quality assurance that must be disposed of;
The allowable method to render marijuana plant waste unusable is by grinding and
incorporating the marijuana plant waste with non-consumable solid waste or other ground
materials so the resulting mixture is at least fifty percent non-marijuana waste by volume.
Other methods to render marijuana waste unusable must be approved by the Southern
Nevada Health District and state regulating agency before implementing.
Materials used to grind with marijuana falls into two categories:
a. Compostable mixed waste - Marijuana waste to be disposed as compost feedstock
or in another organic waste method may be mixed with the following types of waste
materials:
i. Food waste;
ii. Yard waste;
iii. Vegetable based grease or oils;
iv. Bokashi, or other compost activators;
v. Soil;
vi. Or other wastes approved by the Southern Nevada Health District and state
regulating agency.
b. Non-compostable mixed waste - Marijuana waste to be disposed in a landfill or
another disposal method may be mixed with the following types of waste materials:
i. Paper waste;
ii. Cardboard waste;
iii. Plastic waste;
iv. Soil; or
v. Other wastes as approved by the Health District and state regulating agency.
Marijuana waste rendered unusable following the methods described above may be
delivered to a franchised or licensed solid waste facility for final disposition. Such facilities
may include:
a. Compostable mixed waste: Compost, anaerobic digester, or other facility holding a
valid permit from the Southern Nevada Health District;
b. Composted on-site at a facility owned by the generator of the waste and operated in
compliance with the regulations pertaining to Southern Nevada Health District;
c. Non-compostable mixed waste. Landfill, incinerator, or other facility holding a valid
permit from the Southern Nevada Health District.
d. Either Compostable or Non-compostable rendered unusable may be managed onsite by the generator in accordance with a plan approved by the Southern Nevada
Health District.
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G.
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H. A record of the final destination of marijuana waste rendered unusable must be kept at the
facility for a period of five years.
I. Disposal cannot include product entering the City wastewater collection system, storm drain
system or any unsecure rubbish disposal system.
J. A medical marijuana establishment shall not transfer, share, give, sell or deliver any unused
medical marijuana in the establishment’s possession to any other person, regardless of
whether they are licensed as a medical marijuana establishment.
K. A medical marijuana establishment shall not dispose of medical marijuana in any manner
other than permitted under this chapter.
SECTION 31 Right of entry by inspectors or investigators
A. Inspectors and investigators shall be permitted to have access to the licensed premises at
all times, in the course of their duties, concerning the enforcement of the ordinances of the
City and rules and regulations promulgated pursuant and thereto.
B. Any refusal on the part of any licensee, permittees, or any officer, agent or employee
thereof, to submit to or permit such investigation, visitation or inspection, or audit, or any
hindrance thereof by any person shall constitute a violation hereof and be grounds for
suspension of the license by the Director.
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SECTION 32 Work Cards Required
No person shall work in any capacity, either as an employee or an independent contractor who
participates in the customary operations in a licensed medical marijuana establishment without
a valid work card issued pursuant to LVMC 6.86 by the Las Vegas Metropolitan Police
Department.
A. The Sheriff shall deny a work card for any relevant cause denoted in subsection D of this
section. An applicant for an employee work card shall authorize the Sheriff to obtain any
available criminal arrest and conviction record information relating to the applicant and shall
further authorize the updating of that information on an annual basis if a work card is issued.
B. Every employee granted a work card shall prominently display the work card at all times the
employee is at the premises on the employee’s outermost garment at approximately chest
height. Such identification card shall be in good and readable condition and a replacement
card shall be issued by the Sheriff upon payment of a fee established by Las Vegas
Metropolitan Police Department Fiscal Affairs.
C. Applications for such work card shall be submitted under oath and contain the past criminal
record, if any, of the applicant and such information as may be necessary to determine
whether the applicant is a proper person to be employed. A work card shall be issued only
to persons 21 years of age or older. Every operator, employee, volunteer, or others who
propose to work and/or assist in any way in the operation, including security shall be
considered an employee of the Medical Marijuana Establishment.
D. The Sheriff shall deny the application for an employee work permit if the Las Vegas
Metropolitan Police Department makes any one of the following determinations:
a. The applicant has been convicted of any felony;
b. The applicant has been convicted of any misdemeanor or gross misdemeanor
involving drug-related offenses, dishonesty or moral turpitude within the ten (10) year
period immediately preceding the submission of the application;
29
c. The applicant has been convicted of any offense involving the violation of the
Nevada Health and Safety Code;
d. The applicant has been convicted of any offense involving the use of force or
violence upon the person of another;
e. The applicant has made one (1) or more false statements in the application;
f. The applicant has failed to comply with one (1) or more provisions of this chapter, or
of this code, or other laws or regulations applicable to the premises;
g. The issuance of the proposed work card would violate an applicable provision of this
chapter; or
h. The applicant is associated with criminal profiteering activity or organized crime.
E. A work card issued for employment in any medical marijuana establishment is valid for one
(1) year from the date of issuance. If the holder of an employee work card fails to timely
renew said work card, his or her card shall cease to be valid and he or she must make
application for a new work card. In addition to any disciplinary action against the business, it
shall be a misdemeanor to engage in any type of employment activity with a medical
marijuana establishment without a valid work card.
F. If an employee violates, permits, allows or causes the violation of any provision of this
chapter, the Sheriff shall have the right to revoke or suspend any employee work card
issued hereunder and to take possession of such work card. Any of the grounds upon which
the Sheriff may be required to refuse to issue an initial work card shall also constitute
grounds for such revocation or suspension. Revocation and suspensions shall be conducted
in accordance with LVMC 6.86.
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SECTION 33 Registered Agents and Employees.
A complete and accurate list of employees, including state regulating authority agent cards and
work card identification numbers must be kept onsite and available for inspection at all times.
The list must contain the current employment status, position and title of each employee and
work shift.
A. The complete and accurate list must be filed with business licensing on an annual basis at
the time of the due date of annual fees.
B. It shall be a condition of the license to inform the City of any change in the employment
status of a registered employee within five (5) days of the effective date of the change in
employment status. A change of employment status includes termination, leave of absence,
and promotion to a management position or key employee.
C. A medical marijuana establishment shall maintain records at the location accurately and
truthfully documenting:
a. The full name, address and telephone number(s) of the owner, landlord and/or
lessee of the location;
b. The full name, address, and telephone number(s) of all members who are engaged
in the management of the business and the exact nature of each member’s
participation in the management of the business; and,
c. The full name, address, and telephone number(s) of all contractual relationships to
other medical marijuana establishments and other businesses.
SECTION 34 Audit required
30
At the end of each licensee’s fiscal year, the licensee shall submit all audits, financial records
and reports required by the state regulating authority to the City. If the state regulating authority
does not require an independent audit, said audit shall be considered a condition of the license.
A. Any required audit shall conclude with the expression of the auditor’s opinion on the
financial statements of the licensee’s operations in accordance with generally accepted
accounting principles.
B. The auditor shall express a separate opinion on the licensee’s gross revenues and related
permit fees paid to the City for the period then ended. Also, the licensee shall provide the
City with an annual update of the evaluation of its internal accounting and administrative
controls. Such audit report shall be filed with the Director no later than ninety (90) days after
the licensee’s fiscal year end. In the event that such evaluation discloses material
weaknesses or reportable conditions, including, but not limited to, qualified or adverse
auditor’s opinions, or discrepancies or deficiencies in the licensee’s system of internal
accounting and administrative controls, the licensee shall submit a program to the City
Manager within thirty (30) days of such evaluation outlining the licensee’s program and
target dates to correct such weaknesses or conditions. The program and target dates shall
be subject to approval, modification or denial in the sole discretion of the Director, and, in
the event of modification or denial, the licensee shall submit within fourteen (14) days of
receipt of the Director’s modification or denial, a revised program and target dates to correct
such weaknesses or conditions. Such revised program and target dates shall be subject to
approval or modification in the sole discretion of the Director, and in the event of
modification, the licensee shall conform with the modified requirements of the program.
Failure to correct the weaknesses or conditions within the time periods specified in the
approved or modified program, may be grounds for suspension and/or revocation of the
license by the Director. All reports or evaluations submitted hereunder shall be confidential
and shall not be available for public inspection.
C. Any failure or refusal of any such licensee to make any statement as required within the time
required, or to pay such sums due as gross revenue license tax when the same are due and
payable in accordance with the provisions of this chapter, shall be and constitute full and
sufficient grounds for the revocation or suspension of the license issued pursuant to this
chapter in the sole discretion of the Director.
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SECTION 35 Access to Records and Facilities.
Notwithstanding the audit requirements specified in Subsection A of this section, and in
compliance with all State and Federal privacy laws the licensee shall allow the Director or a
designee unrestricted access to all books, records, facilities, and all audio and video tapes
pertaining to the facilities. Any information obtained pursuant to this section or any statement
filed by the licensee shall be deemed confidential in character and shall not be subject to public
inspection except in connection with the enforcement of the provisions of this chapter. It shall be
the duty of the Director to preserve and keep such statements so that the contents thereof shall
not become known except to the persons charged by law with the administration of the
provisions of this chapter or pursuant to the order of any court of competent jurisdiction.
A. Any failure or refusal of any licensee to make and file any statement within the time
required, or to permit inspection of such books, records, accounts and reports of such
licensee in accordance with the provisions of this chapter shall be full and sufficient grounds
for the revocation or suspension of the license in the sole discretion of the Director.
B. A medical marijuana business shall maintain records at the location accurately and truthfully
documenting:
31
a. The full name, address, and telephone number(s) of the owner, landlord and/or
lessee of the location;
b. The full name, address, and telephone number(s) of all members who are engaged
in the management of the business and the exact nature of each member’s
participation in the management of the business;
c. All receipts of the business, including, but not limited to, all contributions,
reimbursements, and reasonable compensation, whether in cash or in kind, and all
expenditures incurred by the business for the cultivation, production, sale or
dispensing of marijuana or marijuana products;
d. All receipts for the retail sale, transfer or wholesale sale of any marijuana or
marijuana product and the corresponding electronic tracking inventory reference;
e. An inventory record documenting the dates, amounts, and content testing results of
all marijuana cultivated by business, including the amounts of cannabis stored at the
location at any given time;
f. A log documenting each transfer of marijuana reflecting the amount transferred, the
date transferred, and the full name of the member to whom it was transferred;
g. A log documenting each transfer of marijuana in any form reflecting the amount
transferred, the date delivered, and the full name of the employee whom transferred
it to another medical marijuana establishment;
C. These records shall be maintained by the business for a period of five (5) years and shall be
made available by the business to the Department upon request, except the private patient
records shall be made available by the business to the Las Vegas Metropolitan Police
Department only pursuant to a properly executed search warrant, or court order. In addition
to all other formats that the business may maintain, these records shall be stored by the
business at the location in a printed format.
D. Any loss, damage or destruction of the records shall be reported to the Las Vegas
Metropolitan Police Department within twenty four (24) hours of the loss, destruction or
damage.
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SECTION 36 Confidential Information
The following information received and records kept by the Department for purposes of
administering a medical marijuana establishment license are subject to all applicable federal
privacy laws, are confidential, are exempt from the Freedom of Information Act, and are not
subject to disclosure to any individual or public or private entity, except as necessary for
authorized employees of the Department to perform duties of the Department:
A. Permit applications, license applications or renewals, their contents as it relates to financial
background of individuals, locations of cultivation facilities, security plans and operation
policies;
B. Any identifying information of persons who have an issued registry identification card from
the State for the use of medical marijuana;
C. Surveillance data or recording media that contain images of individuals who may be registry
identification card holders from the State for the use of medical marijuana;
D. Any dispensing information required by the State regulating authority to be kept confidential
including any registries of cardholders or audit reports that could contain any personally
identifying information.
E. Financial records, reported revenue and license fees paid.
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SECTION 37 Disciplinary Actions, suspension and revocation of licenses.
All licenses and permits authorized and issued under the provisions of this chapter may be
subject to immediate suspension by the Director, if the Director finds that:
1. A permitee, licensee or any agent or employee thereof, with knowledge of the permit of
license, has violated, or permitted, allowed or caused a violation of any provision of this
chapter, any regulation issued pursuant to this chapter, any condition of approval imposed
upon the issuance of the permit or license, or any State law or regulation relating to the
operation; or
2. Based on ascertainable facts, the operation substantially aggravates the crime problems in
the City, makes law enforcement unduly difficult, or is detrimental to the public health, safety
or welfare of the City; or
3. Marijuana is purchased from or distributed to an unauthorized source; or
4. A permitee or licensee has failed to pay, when due and payable, any of the fees or taxes
required by Section 26 or within ten (10) days after written notice of the failure to pay any
required fees; or
5. A permitee or licensee has made any fraudulent statements as to a material fact on an
application form or as to any other information presented as part of the application process;
or
6. A permitee or licensee knowingly commits any act which would have constituted grounds
for denial of an application for a permit; or
7. The permitee or licensee has knowingly continued to employ in any medical marijuana
establishment any individual whom any court has found guilty of any of the crimes which
would have constituted grounds for denial of an application for a work card for the
employee; or
8. The permitee or licensee has been convicted of a crime enumerated in Section15. A
conviction is suitable grounds for revocation of a certification permit by the Director;
9. Licensee has failed either to file the required reports or to furnish such information as may
be reasonably required by the Director under the authority vested in the Director by the
terms of the provisions relating to the specific license;
10. The licensee, either knowingly or without the exercise of due care to prevent the same, has
violated any terms of the provisions pertaining to the license or any regulation or order
lawfully made under and within the authority of the terms of the provisions relating to the
license;
11. Any fact or condition exists which, if it had existed or been known to exist at the time of the
application for such license, would have warranted the Director to recommend denial of the
license or permit;
12. The licensee has failed to maintain the premises in compliance with the requirements of the
building official or the fire chief or any environmental or health department;
13. The licensee or any of the agents, servants or employees of the licensee, have violated any
ordinance of the city or any state or federal law on the premises or have permitted such a
violation on the premises by any other person.
14. Failure to maintain required open business hours, or closure without notice to the Director.
A. For purposes of suspending or revoking any license or permit, the licensee or
permitee shall be deemed to have permitted any act or condition if a reasonable
licensee or permittee would have been aware of the act or condition and taken action
to stop the act or eliminate the condition.
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33
B. Any act or omission committed by any employee, agent, or independent contractor
that occurs in the course of his or her employment, agency, or contract with the
licensee shall be imputed to the licensee or permitee for the purposing of imposing
any civil penalty, suspension, or revocation on the licensee or permitee.
C. In lieu of any license suspension, the director may assess a civil penalty against the
licensee not to exceed $ << >> per violation and $ << >> for each subsequent
violation. Whether a fine should be assessed in lieu of suspension, and the amount
of such fine shall be determined by the Director in his or her discretion, based upon
the nature of the offense, the licensee’s record, whether the violation presents a
threat to public health, safety or welfare, the duration of the violation, and any other
mitigating or aggravating circumstances present. In the event that the Director
imposes a civil penalty fine under this section, the Director’s order shall state a
deadline for the payment of the fine or appeal to the hearing officer per LVMC
6.02.460. In the event that the fine is not paid by the date specified by the Director or
as adjudicated by the hearing officer, the Director may suspend the license until the
fine is paid in full.
D. The licensee may be required to pay all administrative expenses.
E. In the event the Director determines that a permit or license issued pursuant to the
terms of this chapter shall be suspended pending appeal before the City Council for
revocation or other penalty, the notice shall be in writing and addressed to the
licensee or permitee and the building owner at the addresses of record. Notice shall
also be sent to the state regulating authority.
F. Failure to immediately suspend all business operations of the medical marijuana
establishment shall require the Director to post the property as closed by order of the
Director, and shall be grounds for revocation of a license.
G. A notice to suspend is considered a final action of the department and all business
transactions are to cease and desist immediately. The business operation is to be
closed to the public with proper signage posted that is approved by the Director. A
skeleton staff by the cultivation business is permitted to be onsite during the appeal
process to maintain the needs of the plants for a cultivation facility. Once the appeal
is complete and in favor of revocation then the disposal process will be followed for a
cultivation facility.
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SECTION 38 Appeal of final department decision or enforcement action.
A final department decision may be appealed to the City Council.
A. Final department decision includes:
a. The suspension of a license;
b. The denial of an application for renewal of a license;
c. Denial of Suitability for any Principal.
B. If any final Department action is appealed to the City Council pursuant to this Section, the
record on review by the Council shall include the following:
a. The application or petition for appeal;
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b. Any written documentation, original and subsequent applications and accompanying
documents considered by the Department in making its final determination with
respect to the decision;
c. Any written correspondence between the Department and the person submitting the
application or petition;
d. Any records of enforcement actions, inspections or hearing officers;
C. Appeals must be submitted in writing to the City Manager within thirty (30) calendar days
from the date the final decision was issued by the Department and shall be scheduled
before the City Council within sixty (60) days of receipt of the appeal. The notice of appeal
shall state all the grounds of appeal and shall admit or deny the determination in the notice
of decision.
D. Unless the permitee or licensee files a written notice of appeal with the required time period,
the final decision shall be enforced on the 31st day following the decision of the Director and
the license or permit shall be deemed revoked.
E. In the event that a permit or license is revoked either by action of the Director, City Council
or terms of this chapter, each permitee, or principal of the license, that held the revoked
license shall not be eligible to apply for or be issued a new license until ten (10) years have
passed from the date of revocation.
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SECTION 39 Fees, Origination and Application Charge. [Under Review]
SECTION 40 Accounting Procedures
Point of Sale System (POS)
1. A computerized POS system must be utilized to record and track all sales.
2. The POS system must be operational prior to the opening of the business.
3. All sales must be transacted through the POS system, except as allowed under the manual
procedures outlined below.
4. Surveillance cameras must be directly positioned over the cash register and provide clear
view over the:
A. Area where the tender type (cash, credit card or checks) is exchanged between the
buyer and seller;
B. The register or computer keys utilized to enter the sales information; and
5. The area where the manual receipt is documented so as to show the recording of the sale
as allowed under LVMC XXX. A two part computerized receipt must be generated from the
POS system detailing the following information:
A. The date, time, and amount of payment.
B. Each item sold must be listed individually, with amount due and a corresponding
identifying description or numbers so the type of product sold can be individually
identified.
C. The name or other identifier of the cashier.
D. Separate line items must be maintained for the subtotal, taxes and any additional
fees.
E. A grand total line of all fees due.
F. Sequential numbered receipt.
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G. Name and address of the business.
H. Tender type.
I. The unique number as assigned to each patient record used by the state to track
medical marijuana patients.
6. The patient’s name must NOT be shown on receipt.
7. One copy of the receipt is given to the patron and the other is kept as back up
documentation with the daily cashier paper work.
8. Cash register receipts including voids must be maintained for a minimum of one year.
9. All voided transactions must be documented in the POS system.
10. Voided receipts must contain the following:
A. “Void” written on the receipt.
a. The reason for the void is documented on the receipt or other document (e.g., a log)
sufficiently identifying the receipt.
b. Date and time of void on the receipt or other documentation.
c. Voids must be approved by a supervisor and evidenced by either the supervisor’s
initial on the receipt or POS system controls prevent anyone but the supervisor from
performing the void in the computer system.
d. If a corrected transaction is completed for the same customer then the new
transaction number should be written on the voided receipt.
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Manual Cashiering System-
1. A business may operate for up to one calendar week on a manual cashier system if the
computerized system becomes inoperable.
2. The start and end date and time of any periods when a manual system is utilized due to
inoperability of the POS system must be logged and maintained for one calendar year.
3. The manual cashiering system must include the following:
A. Preprinted, 2-part, sequentially numbered cashier receipts; and
B. The same information as required on the computerized POS cashier receipts.
4. The inventory system must be updated within twenty (24) hours of products sold.
End of Day/shift cashiering procedures:
1. At the end of each individual’s shift, their cash drawer must be counted out with a second
employee.
2. Each tender type must be documented in total and all exceptions, overs and shorts must be
documented and maintained for one (1) year.
3. Each cashier must maintain their own cash drawer.
Accounting Procedures
1. An individual independent of the cashiering function performs the accounting procedures.
2. Daily perform the following procedures:
A. Examine all voided transactions for proper authorization and “void” designation on
receipt.
B. Examine all cashiering paperwork, receipts, etc. for propriety of transactions.
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C. Document each individual cashier’s sales totals on a daily sales recap report.
D. Document each day’s sales on a monthly sales recap report that indicates:
1. the amount of sales for each day;
2. the tender type (cash, check, credit card, etc..);
3. date of sales.
3. For any Manual Transactions the following daily procedures must be performed:
A. A revenue journal must be maintained in either a manual or computerized
spreadsheet form to track each day’s individual sales.
B. All receipts at the end of the day must be footed and traced to the daily total on the
revenue journal.
C. Each day’s daily totals must be tracked on a revenue journal for the period the
system is down if the computer system is down for more than one day.
4. The following Monthly procedures must be performed:
A. Review system exception reports for all computerized POS and inventory systems at
least monthly for propriety of transactions and unusual occurrences. All noted
improper transactions or unusual occurrences are investigated with the results
documented.
Note: an exception report is defined as a report produced by the computerized
system identifying unusual occurrences, changes to system configuration
parameters, alteration to initially recorded data, voids, password changes, etc.
B. Add one day’s sales receipts for all cashiers and trace the totals to the daily sales
total on the monthly sales recap report.
C. Perform a complete inventory count for the products available for sale and trace to
computerized inventory records.
D. A manual inventory document or computerized record must be used as
documentation to show that each item is properly accounted for.
E. The manual document or separate document must be signed by the employees
performing the inventory, attesting to the date and time the inventory was conducted.
F. Inventory count must be completed by a minimum of two (2) employees.
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5. Document that all accounting procedures have been done.
6. Document all exceptions found.
7. Maintain audit documentation for a minimum of five (5) years unless otherwise stated.
Other Procedures
1. Customers may not maintain credit balances, purchase items on credit or be provided any
other similar mechanism for holding a credit on a patron’s account. A tender type of credit
card is allowed.
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2. If payment is returned, a listing of all accounts receivables must be maintained, including the
name of the patron and current balance. Business will also maintain a copy of the listing
with redacted patron names and identifying information.
3. A listing of accounts written off as bad debt will be maintained for a minimum of five (5)
years. Business will also maintain a copy of the listing with redacted patron names and
identifying information.
DRAFT
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