The Cannabis Compliance Board celebrated its first anniversary on July 1. It began with 44 employees and will grow to 93 by the middle of next year.
Tyler Klimas
“This investment is a recognition that the state sees great benefit and importance in a well-regulated cannabis industry,” says Tyler Klimas, who was appointed executive director of the board in September 2019.
Vegas Inc caught up with Klimas to ask about cannabis consumption lounges, federal legalization, diversity and more.
Have there been any challenges you haven’t quite been able to pin down yet?
Every few months I tell my wife that this is the month. This is the time things will start to settle down and work will become a little more predictable. Every few months I am completely wrong. It is exhausting in the best way, and it is what makes this job both challenging and rewarding.
What goals are on your to-do list?
Outside of the day-to-day operations, I am really trying to focus on the future needs of this agency and what is required to keep us at the forefront of successful regulation. It often comes back to data. Prioritizing data collection and having access to good data will allow us to better drive decisions on things like combating the illicit market, increasing social equity and diversity within the industry, preventing minors from accessing cannabis, and maintaining an overall healthy balance to the marketplace. In many cases we lack even a solid baseline of data, and so working to establish that foundation is something I would like to prioritize over the next couple years.
Is federal legalization coming? Is that even something you think about?
Momentum is clearly gaining for federal action on cannabis, whether that results in the decriminalization of cannabis or passage of a larger, more comprehensive legalization package. Obviously, predicting the timeline for congressional action is impossible, but eventual federal action is something we have been discussing from day one. Nevada is in a unique position given our world-class gaming sector, which is currently prohibited from engaging with cannabis and cannabis-related businesses. We expect robust interaction between the gaming and cannabis industries if the federal government acts, and understanding what that means for the state and how we can continue to capitalize on the revenue it generates is an important conversation to continue.
What’s the latest on lounges? What kind of timeline are we looking at?
We just wrapped up several public meetings on consumption lounges where issues around public safety, public health, and social equity, diversity and inclusion were discussed. Nevada is a trailblazer in this realm. Making sure the process remains open and transparent as we develop the guidelines around how these lounges should operate is very important to us.
The goal is to launch the lounge program in a responsible and safe way, not the quickest way. We will continue to develop rules around lounges over the next few months, keep the process open to the public, and if all goes well, we could see the first lounges open mid-year next year.
Do you play a role at all in the diversity of the industry?
When the CCB was created in 2019, ensuring equity, diversity and inclusion in the cannabis industry was a mandate given to the agency by the Legislature and Gov. Steve Sisolak. Historically, diversity and equity weren’t discussed in many of the first states that legalized cannabis, including Nevada. Our challenge now is how do we open up an already established market to further increase its diversity. Certainly, consumption lounges being a new license type allows for an opportunity to bring in new diverse ownership, but lounges themselves are not going to solve the problem. My role and the role of the CCB is to use our power as the regulatory body to make sure pathways to greater diversity remain clear and at times, force new pathways.
What in your background leading up to your appointment made you a good fit for this position?
I believe Gov. Sisolak was looking for a fresh perspective, someone from the outside who could take an unbiased approach at rebuilding the oversight body and regaining the public’s trust and confidence. I understand what it takes to operate in a highly scrutinized environment. I know the state well given my experience working for Govs. Sandoval and Sisolak, and living 2,500 miles away in Washington, D.C., at the time provided a natural buffer to the pitfalls and players around cannabis.
What have you learned from other jurisdictions with regards to compliance? And what landmines were you able to sidestep?
It is much more difficult to strengthen regulations once they have already been relaxed. Nevada’s cannabis regulations, especially as they pertain to public health and safety, were always strict. That initial approach has served our state extremely well, not only by allowing for greater protection of the health and safety of our residents, but by also ensuring the CCB can control the pace we review and refine our current regulations.
If you could live anywhere else in the world, where would it be and why?
I won’t tell you exactly where it is, but when I go missing there is a certain 19th century hunting lodge in the mountains of Austria where you will find me. Twitter and Instagram don’t work there.