Nevada’s local governments have the green light to license certain businesses that want to allow marijuana consumption on-site, according to an opinion released Sunday by the Legislative Counsel Bureau.

Businesses may establish lounges at which patrons can consume marijuana, and municipalities may create ordinances that require those businesses to purchase a license to do so. The privilege would also extend to events and concerts.

The opinion, requested by Sen. Tick Segerblom, D-Las Vegas, noted that marijuana consumption must be in compliance with the state law, which limits the possession amount to an ounce of marijuana or an eighth-ounce of concentrate. Consumption within the facility cannot be visible to the public, nor can it be open to anyone under the age of 21.

“You can be a lounge, you could be a concert. There are hotels that are talking about catering to marijuana, they could be Air BnBs, clubs, rock concerts, coffee shops. The imagination has no limitation,” said Segerblom.

During this summer’s legislative session, Segerblom’s Senate Bill 236, which would have given a business the right to allow marijuana consumption on the premises, failed. Segerblom was hopeful that the bill would pass considering much of the industry is expected to be fueled by the state’s 43 million tourists each year. [Read more at Reno Gazette-Journal]