The measure, Assembly Bill 341 , was signed by Sisolak on June 4 after being passed by lawmakers in both houses of the state legislature in May.
Retail cannabis lounges will be operated by licensed marijuana dispensaries, while independent cannabis consumption lounges will not be connected to a retailer.
Before AB341, cannabis consumption was legal under state law only in private residences with the owner’s permission, leaving renters and visitors open to the disparate enforcement of drug laws that has been repeatedly documented.
Such oversights are likely to doom or delay legalization proposals today, a fact seen in recent and eventually successful reform efforts in New Jersey and New York.
Qualified social equity applicants who wish to open a cannabis consumption lounge will receive up to a 75% reduction in application fees, which can cost as much as $30,000.
Additionally, the number of independent cannabis consumption lounge licenses will initially be capped at 20, with half reserved for social equity applicants.
AB341 goes into effect in October, and state regulators are expected to begin accepting applications for cannabis lounges in July.