CANNABIS COMPLIANCE BOARD STATE OF NEVADA

CANNABIS COMPLIANCE BOARDSTATE OF NEVADAccb.nv.gov1550 College Parkway, Suite 142Carson City, Nevada 89706Phone: (775) 687-6299STEVE SISOLAKGovernorGrant Sawyer Office Building, Suite 4200555 E. Washington AvenueLas Vegas, Nevada 89101HON. MICHAEL DOUGLASChairTYLER KLIMASExecutive DirectorTo: Brenda J. Erdoes, Director of the Legislative Counsel BureauFrom: Tyler Klimas, Executive Director of the Nevada Cannabis Compliance BoardDate: January 29, 2021Re: Demographic Report of Nevada’s Cannabis IndustryPurposeThis report, required by Assembly Bill 533 (2019), details demographic data collected for activeagent registration card holders within Nevada’s cannabis industry. The legislation states that: “TheBoard shall adopt regulations providing for the gathering and maintenance of comprehensive demographic information,including without limitation, information regarding race, ethnicity, age and gender, concerning each: (a) Owner andmanager of a cannabis establishment. (b) Holder of a cannabis establishment agent registration card.” (AB533 Sec.64(2)).As such, the Nevada Cannabis Compliance Board (CCB) promulgated the Nevada CannabisCompliance Regulations (NCCR 1-14). Pursuant to NCCR 6.140, the CCB will conduct ademographic survey annually to collect comprehensive data on the industry. Recipients are requiredto complete the survey.In preparation for the 81st (2021) Legislative Session, the CCB compiled this report to serve as areference to inform future decisions which will impact Nevada’s cannabis industry.BackgroundPrior to this report, there has been no formal data available detailing the demographic makeup ofNevada’s cannabis industry. As such, this report establishes a baseline and will allow for a morecomparative and comprehensive analysis of data and trends year over year within the industry.MethodFor the purpose of this report, the CCB conducted a survey, which included five demographicquestions. The survey was sent to all active agent registration card holders as of January 1, 2021. Ofthe 9,890 potential respondents, 5,501 surveys were submitted within a designated two-weekresponse period.Nevada Cannabis Compliance Board – Demographic Report 2021

This includes a nearly 100% response rate from industry executives defined as the owners, officers,or board members of cannabis establishments. For scope, 744 survey respondents identified as anowner, officer, or board member of one of Nevada’s 232 cannabis entities. Those entities combinedhold a total of 739 active licenses or certificates to operate in Nevada.Below are the five demographic questions/prompts respondents were asked to complete. Theoption ‘Prefer not to answer’ was included for each.1.2.3.4.5.What is your gender?Are you of Hispanic, Latino, or Spanish origin, such as Mexican, Puerto Rican or Cuban?Select your race. Select all that apply.What is your age?What is the highest level of education you have completed?ResultsOf the total respondents: 42% are affiliated with a Cannabis Cultivation Facility. 28% are affiliated with a Cannabis Production Facility. 7% are affiliated with a Cannabis Testing Laboratory. 49% are affiliated with a Cannabis Dispensary/Retail Facility. 12% are affiliated with a Cannabis Distribution Facility. 8% are affiliated with another type of cannabis establishment (Consultant, Delivery Driver,Vendor, etc.).Note: Total percentage above is 100% because respondents were instructed to select all that apply. 58% identified as Male; 38% identified as Female. 24% identified as being of Hispanic, Latino, or Spanish origin. 53% identified as White. 44% identified as being in the age group: 25 through 34 years old.Responses below are aggregated by position held within the industry (i.e. owner, board member, employee, etc.).Additional survey results are attached to this document.Nevada Cannabis Compliance Board – Demographic Report 2021

Prompt: Please select the cannabis establishment type with which you are affiliated. Select all thatapply.Prompt: What is your gender?Nevada Cannabis Compliance Board – Demographic Report 2021

Prompt: Are you of Hispanic, Latino, or Spanish origin, such as Mexican, Puerto Rican or Cuban?Nevada Cannabis Compliance Board – Demographic Report 2021

Prompt: Select your race. Select all that apply.Nevada Cannabis Compliance Board – Demographic Report 2021

Prompt: What is your age?Nevada Cannabis Compliance Board – Demographic Report 2021

Prompt: What is the highest level of education you have completed?Nevada Cannabis Compliance Board – Demographic Report 2021

Industry ImpactSince the CCB’s commencement of operations on July 1, 2020, there have been no open licensingrounds. Pursuant to NRS 678B, in determining whether to issue a license, among otherconsiderations, the Board will factor in “the diversity on the basis of race, ethnicity, gender orveteran status of the applicant or the persons who are proposed to be owners, officers or boardmembers.”Additionally, pursuant to NRS 678A, the Board “will establish a pilot program for identifyingopportunities for an emerging small cannabis business to participate in the cannabis industry.”Demographic data collection and analysis will assist in the CCB’s efforts to prioritize diversity andinclusivity in any new licensing rounds and future pilot programs.LimitationsIn this inaugural survey, the response rate was more than 50% of the cannabis industry and nearly100% of industry executives. In order to fully understand the scope of the industry, the CCB willcontinue to refine the survey process with the goal of improving the response rate year over year.This can be accomplished through further refinement of demographic and identifier questions andchoices within the survey and the agency’s request for constructive feedback from respondents.ConclusionIn executing the state’s first undertaking of a demographic analysis of Nevada’s cannabis industry,the CCB looks forward to continuing to collect and provide meaningful data on this industry forstate legislators, stakeholders, and other interested parties.Sincerely,Tyler KlimasExecutive Director, Nevada Cannabis Compliance BoardCC: Hon. Michael Douglas, ChairNevada Cannabis Compliance Board – Demographic Report 2021

Cannabis Industry Demographic SurveyPlease select the cannabis establishment type with which you areaffiliated. Select all that apply.Answered: 5,439 Skipped: 63CannabisCultivation FacilityCannabisProduction FacilityCannabisLaboratory FacilityCannabisRetail FacilityCannabisDistribution FacilityCannabis EstablishmentSupport Facility0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ANSWER CHOICESRESPONSESCannabis Cultivation Facility42.07%2,288Cannabis Production Facility28.28%1,538Cannabis Laboratory Facility6.66%Cannabis Retail Facility49.38%2,686Cannabis Distribution Facility11.71%637Cannabis Establishment Support Facility (Consultant, Delivery Driver, Vendor, etc.)7.94%432Total Respondents: 5,439362

Cannabis Industry Demographic SurveyWhat is your gender?An swer ed: 5,490 Skipped: 12FemaleMalePrefer Not toAnsweOther (pleasespecify0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ANSWER efer Not to Answer3.86%212Other (please specify)0.35%19TOTAL5,490

Cannabis Industry Demographic SurveyAre you of Hispanic, Latino, or Spanish origin, such as Mexican, PuertoRican or Cuban?Answered: 5,490 Skipped: 12Ye sNoPrefer Not toAnswer0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ANSWER CHOICESRESPONSESYes24.12%1,324No66.99%3,678Prefer Not to Answer8.89%TOTAL4885,490

Cannabis Industry Demographic SurveyWhat is your race? Select all that apply.Answered: 5,489 Skipped: 13AmericanIndian or.AsianBlack orAfrican.Hispanic orLatinoNativeHawaiian or.WhiteTwo or MoreRacesPrefer Not toAnswerOther (pleasespecify0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ANSWER CHOICESRESPONSESAmerican Indian or Alaskan Native3.01%165Asian5.98%328Black or African American10.88%597Hispanic or Latino19.62%1,077Native Hawaiian or Other Pacific Islander3.26%White53.32%2,927Two or More Races10.22%561Prefer Not to Answer8.49%466Other (please specify)1.48%81Total Respondents: 5,489179

Cannabis Industry Demographic SurveyWhat is your age?Answered: 5,491 Skipped: 1118 to 2425 to 3435 to 4445 to 5455 to 6465 to 7475 or olderPrefer Not toAnswer0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%ANSWER CHOICESRESPONSES18 to 2415.28%83925 to 3443.73%2,40135 to 4418.45%1,01345 to 5410.11%55555 to 646.21%34165 to 742.13%11775 or older0.35%19Prefer Not to Answer3.75%206TOTAL5,491

Cannabis Industry Demographic SurveyWhat is the highest level of education you have completed?Answered: 5,474 Skipped: 28Did Not AttendSchoolGEDGraduated fromHigh SchoolSome CollegeCoursework CompletedAssociateDegreeBachelor'sDegreeMaster's DegreeDoctorate/ProfessionalDegreePrefer Not toAnswer0%10%20%30%40%50%60%70%80%90% 100%ANSWER CHOICESRESPONSESDid Not Attend School0.31%17GED5.57%305Graduated from High School27.31%1,495Some College Coursework Completed31.59%1,729Associate Degree10.14%555Bachelor's Degree15.02%822Master's Degree3.03%166Doctorate/Professional Degree (i.e. dental, medical, law, etc.)1.42%78Prefer Not to Answer5.61%307TOTAL5,474

Nevada Cannabis Compliance Board – Demographic Report 2021 This includes a nearly 100% response rate from industry executives defined as the owners, officers, or board members of cannabis establishments. For scope, 744 survey respondents identified as an owner, officer, or board member of one of Nevada’s 232 cannabis entities.