Nevada Cannabis Delivery License
Nevada voters have legalized medical cannabis on the ballot since 2000 while recreational cannabis became legal in July 2017. This has given rise to the various cannabis business opportunities in the state including a delivery service. But the most essential requirement to opening a cannabis delivery business in Nevada is a license. Obtaining a Nevada cannabis delivery license may not come easy, but given the thriving sales of cannabis in the state and the increasing demand for delivery services, it’s truly worth it.
Opening a cannabis delivery service is a great way to capture more local customers in Nevada since a lot of customers love the convenience of delivery services. For instance, delivery services often cater to customers who are unable to visit a dispensary. Medical marijuana patients who are too sick to make in-store visits could greatly benefit from delivery.
It could take time before your cannabis delivery business in Nevada can reach profitability. But even if you will not receive a bunch of delivery requests right away, do not give up. Eventually, you can build a dedicated customer base, whether these are new customers or existing customers who prefer a more convenient way of receiving their supply of cannabis. Here’s everything you need to know about opening a cannabis delivery business and applying for a Nevada cannabis delivery license.
Nevada Cannabis Delivery and Distribution
The delivery and distribution service is one of the largest sectors in the cannabis industry that is thriving these days. In many cases, cannabis delivery and cannabis distribution are independent firms that do not usually produce their own cannabis products.
Cannabis delivery and distribution serve as inventory clearinghouses for existing cannabis dispensaries and other cannabis businesses. In recent months, the cannabis delivery sector has exploded due to the Covid-19 pandemic, which sees many states scrambling to provide medicinal and recreational products since most dispensaries have been closed. Customers who need to self-isolate can also benefit from the delivery service’s convenience.
Delivery and distribution are often used interchangeably in the cannabis industry. However, in most cases, “distribution” is the term used for the business-to-business component of the distribution of cannabis products. On the other hand, delivery refers to the consumer-based delivery of the products.
Many cannabis distributors in the state simply act as third-party shippers for manufacturers and growers. Some cannabis distributors specialize in raw flowers, while others carry a wide range of products. The future of the cannabis delivery industry remains unclear, but with more and more customers finding it more convenient to order from home, this aspect of the cannabis industry is sure to prosper.
Nevada Cannabis Delivery Laws
The most important step to starting a cannabis delivery service in Nevada is to make sure that your business is compliant with local and state laws. More importantly, you should collect, complete, and submit all the necessary paperwork needed to obtain a Nevada cannabis delivery license to make your delivery operation legal.
You should take a look at all available resources concerning Nevada cannabis laws that should serve as your guide through the process of obtaining a license. If you are having a hard time, you should get into contact with consultants and cannabis business experts who may be able to guide you through the entire process.
Once your Nevada cannabis license is approved, it’s important to ensure that all your drivers have a copy of this license in their vehicle when doing their delivery rounds. You should also be familiar with all the legal requirements that could exist in your local municipality. For instance, some municipalities may require a thorough inspection of the vehicle for delivery or require vehicles to have cameras.
Nevada Cannabis Laws
Possessions of Cannabis in Nevada
55% of Nevada voters approved Question 2 in 2016, which allows adults to legally possess cannabis for recreational use. This applies to those who are not participating in the medical cannabis program of Nevada. Under the law, adults who are at least 21 years old can possess up to an ounce of cannabis or up to 3.5 grams of concentrate.
In addition, adults can cultivate up to six cannabis plants at home and can possess all of the harvests from these plants. But only if they live at least 25 miles from the nearest cannabis dispensary. Public use and display of cannabis are still subject to civil penalties, and the possession of cannabis greater than the allowed quantities is subject to criminal penalties.
Possession or use of cannabis in public is considered a criminal misdemeanor, punishable by a fine of up to $600.
Sale and Delivery of Cannabis in Nevada
Sale or delivery of 100 pounds of cannabis or less is a Category D felony that’s punishable by a minimum of one year and a maximum of four years imprisonment, as well as a fine of up to $5,000 for the first offense.
A second offense is a Category C felony that’s punishable by a minimum of one year and a maximum of five years imprisonment, as well as a fine of up to $10,000. Subsequent offenses are considered a Category B felony punishable by a minimum of three years and a maximum of 15 years imprisonment, and a fine of up to $20,000.
The sale or delivery of 100 pounds or more of cannabis but less than 2,000 pounds is considered a Category C felony that’s punishable by a minimum of one year and a maximum of five years imprisonment with a fine of up to $25,000. If the cannabis products being sold or delivered is 2,000 pounds or more, but less than 10,000 pounds, it’s considered a category B felony that’s punishable by at least two years of imprisonment and a fine up to $50,000.
Anyone caught delivering cannabis products that are more than 10,000 pounds will be charged with category A felony that’s punishable by life imprisonment with a possibility of parole after five years and a fine up to $200,000.
Cannabis Delivery Requirements In Nevada
For as long as you follow the Nevada cannabis laws on sale and delivery, you can operate a cannabis delivery service in the state. However, there’s still a chance that your local municipality could ban or put a moratorium on licensing, so make sure to be familiar with the local laws before applying for a Nevada cannabis delivery license.
Currently, there are certain situations in which the delivery of cannabis is allowed in Nevada. Cultivation facilities could deliver cannabis to any other cannabis establishments except for retail stores and dispensaries. Production facilities can also deliver to other licensed cannabis establishments except for retail stores.
The only facility that could transport cannabis to or from a retail store or dispensary is testing. A licensed cannabis distributor is allowed to deliver cannabis products to retail stores to be sold to consumers.
Delivering services to Nevada customers can be carried out by licensed cannabis retail stores or dispensaries. Cannabis products by law must only be delivered to the address of customers stated on their ID card to prove the recipient’s age. Delivery in cannabis is allowed when retail sales on cannabis began on July 1, 2017, although the regulations are only temporary.
Drivers cannot deliver more than the legal amount of cannabis, which is currently an ounce. In general, this amount is higher than the average order so that the delivery services will not run into issues.
Delivery services must carry only a little amount of cash to minimize any chances of being targeted while on the road, and the service must be free. The only thing that the customers will pay is the product.
Nevada Cannabis Delivery License Application
The first step to opening a cannabis delivery business in Nevada is to apply for a Nevada cannabis delivery license. Since 2018, licenses have been issued for the recreational cannabis program in Nevada. Applicants should possess a medical cannabis establishment certificate in their first 18 months of operation.
Whether you are applying for a cannabis dispensary license, manufacturer license, or a cannabis delivery license, the application process remains the same. To make the process easier, consider hiring consultants specializing in assisting companies in applying for Nevada cannabis delivery licenses, whether you are a first-time business owner or want to expand your existing cannabis business.
Nevada Cannabis Dispensary License Cost
Opening a cannabis-related business can cost a lot of money, especially on the license fees. Here are the financial requirements for opening a cannabis business in Nevada.
Medical cannabis dispensary Fees
- $30,000 registration fee
- $5,000 renewal fee
Medical cannabis cultivation facility
- $3,000 registration fee
- $1,000 renewal fee
Marijuana Product Manufacturer
- $3,000 registration fee
- $1,000 renewal fee
- $5,000 registration fee
- $3,000 renewal fee
Expect to pay an excise tax of 2% for the retail or wholesale of any infused cannabis products. The tax is similar for both medical and recreational cannabis.
The Delivery Process
Integrating your Nevada cannabis delivery service with online delivery software is necessary. It makes the entire process more convenient and attractive for both dispensaries and consumers. Using effective delivery management software can make things easier for everyone. This allows business owners to keep track of their delivery drivers in real-time, and re-route them if necessary. It also provides customers with updated information about the estimated arrival time. The software can also be helpful for accurately storing customer and order information.
Make sure your Nevada Cannabis delivery vehicles are equipped with keys and lockboxes to keep the products and money protected. Make sure the delivery software allows drivers to have GPS. This makes it easier for the drivers to deliver the products to customers.
Before your drivers leave for their delivery, make sure they understand the route and order of drop-offs. This will help to minimize mistakes and avoid wasted time. Ensure that each order is correctly packed before leaving the store and that each driver brings the correct order. Setting up your own internal processes is essential for running a successful cannabis delivery service. Some examples are marking lockboxes with order numbers and having drivers pick up their assigned order number before leaving for delivery. This can help to prevent order mix-ups and keep things moving fast.
Implementing discounts and special offers for bulk purchases on orders is a great marketing strategy for cannabis delivery services. This helps to encourage customers to order huge amounts of products and minimize the delivery load of your drivers.
Nevada cannabis delivery licenses are limited, so starting your Nevada cannabis delivery business might take some time. But the wait will be well worth it. Cannabis dispensaries and delivery services generally make around $50,000 a month, which could reach up to millions of dollars. Those interested in obtaining a Nevada cannabis delivery license should plan for 3 months to one year ahead of time. Even when working with cannabis license experts to properly create and submit a Nevada cannabis delivery license application, it takes time.
Hiring us as your cannabis license experts is a great way to get your business up and running. We’ll streamline the entire application process and know exactly what the state wants to see. Contact us and get started today.