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Committee approves eliminating two vacant Cannabis Compliance Board investigator positions; staff close technical revenue adjustments

3001048 · April 16, 2025
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Summary

A joint finance/ways-and-means committee approved the governor’s recommendation to eliminate two vacant compliance enforcement investigator positions at the Cannabis Compliance Board, increasing reserves and approving technical revenue adjustments, including removal of certain civil penalty revenues and updates to the revenue forecast.

The joint Senate Finance and Assembly Ways and Means Committee approved the governor’s recommendation to eliminate two vacant compliance enforcement investigator positions in the Cannabis Compliance Board’s Investigations and Enforcement Division, a change fiscal staff said would increase reserves by $667,100 over the 2025–27 biennium.

Fiscal staff explained the positions are no longer needed because the number of consumption lounge licenses issued was lower than projected; staff said remaining duties have been absorbed into other functions such as compliance inspections, data analytics and licensing. The agency told the committee it is working with prospective and conditional licensees to become fully operational.

The committee also approved several technical adjustments. Fiscal staff recommended removing civil penalty revenues of $553,666 (and reducing the associated transfers to the State Education Fund by the same amount) and updating revenues to align with the April 2025 consensus forecast. Staff recommended adjusting reserves to support a 60-day operating target and reconciling the amount budgeted to transfer to the State Education Fund; the committee approved those technical adjustments and authorized staff to make additional technical changes as needed.

All actions reported by fiscal staff for the Cannabis Compliance Board account were approved on voice votes with no recorded opposition.

Context: The Cannabis Compliance Board regulates cannabis licensure and compliance in Nevada. The committee’s decisions reduce ongoing staffing expectations for enforcement investigators given slower-than-expected consumption lounge licensing and align the board’s revenue and reserve projections with updated forecasts.