Nevada on regulating the cannabis industry.

With all the discussion around the legality of cannabis delivery services, Nevada has taken the wise measure of including delivery in it’s recently adopted regulations which allow medical marijuana suppliers to operate as businesses.

In 2001 Nevada established a medical marijuana program legalizing the use of marijuana for medical purposes. The 2001 law did not establish a way for patients to obtain marijuana unless they grew their own. In 2013 Nevada passed a law creating mechanisms through which medical marijuana dispensaries can legally be set up, operated, and regulated.

This year, Adopted Regulation R004-14, established the process by which medical marijuana establishments may open for business Nevada. The allowed business establishments are divided into four distinct types: Cultivation, Dispensary, Production, and Laboratory.

The application period for these new businesses runs August 5-18, 2014. The regulating body, Nevada’s Division of Public and Behavioral Health, then has 90 days to review, rank and score the applications, based strictly and objectively on merit. In early November, 2014, the results will be announced, and those applicants who are eligible for provisional certification will then work with the local jurisdictions for additional permits and licenses. Beginning early 2015 the licensees will begin opening their businesses to medical marijuana patients.

Including delivery in the regulations, Nevada is establishing strict inventory control and product delivery procedures. According to the regulations cannabis delivery means that a medical marijuana establishment agent authorized by the medical marijuana establishment for which he or she is employed or volunteers may transport marijuana, paraphernalia, edible marijuana products and marijuana-infused products between the medical marijuana establishment and another medical marijuana establishment and (may deliver marijuana to) a person who holds a valid registry identification card or his or her designated primary caregiver.

These agents may not transport more than 10 ounces of marijuana, edible marijuana products or marijuana-infused products, or any combination thereof at any one time from a medical marijuana establishment to persons who hold valid registry identification cards or their designated primary caregivers. Further, the dispensaries and their agents must abide by the following when making deliveries:

First, cannabis delivery agents must be registered and have their registration card in possession whenever making deliveries. He or she must also have a way to communicate during deliveries (such as a mobile phone or two-way radio). The vehicle used for making deliveries must be nondescript with no indication that it is a cannabis delivery vehicle. It must be equipped with a secure lockbox or locked cargo area that can be kept clean and sanitary and no products can be visible from outside the vehicle. Before transportation, the agent must call the the patient or designated primary caregiver to confirm the order and the identity of the patient. Then agent must then enter the details of the confirmation in a log. This log must be kept available for inspection by law enforcement at all times. Next, the agent will file a trip plan detailing the name of the agent and establishment, the date and time of the trip, what specifically is being transported, and the intended route. One copy of the trip plan must be kept on file with the establishment and one copy with the cannabis delivery agent. At the time of delivery the patient or designated primary caregiver and only the patient or designated primary caregiver must sign for the delivery. Finally, the delivery agent enters the end time of the trip and any changes to the trip plan that occurred during transportation. (Paraphrased from Adopted Regulation R004-14.)

Once implemented, these procedures will not be arduous but a great tool for businesses to analyze how they are doing, with inventory and sales records uploaded at every transaction, not to mention the customer’s information, you will be able to understand your customers wants and needs, see what products are popular, improve customer service, refine trip routes and times, build customer loyalty, etc. In short, Nevada has provided you with a fantastic business tool. Now, the race is on to see who develops the best technology so that the required tracking and reporting happens in the palm of your hand!