Existing law provides for the licensure and regulation of persons and establishments involved in the cannabis industry in this State by the Cannabis Compliance Board. (Title 56 of NRS) Section 2 of this bill authorizes the Board to exercise any proper power and authority necessary to perform the duties assigned to it by the Legislature. Section 14 of this bill authorizes the Board to take certain actions concerning the enforcement of the provisions of existing law governing the medical and adult-use of cannabis. Sections 3, 4, 17 and 62 of this bill revise provisions relating to the confidentiality of certain information obtained by the Board.
Existing law sets forth procedures by which the Board may adopt, amend or repeal regulations. (NRS 678A.460) Section 16 of this bill: (1) specifically authorizes the Board to postpone consideration of the adoption, amendment or repeal of a regulation for further consideration by the Board at a later meeting; and (2) requires a petition requesting the Board to adopt, amend or repeal a regulation to include information required by the Board by regulation along with the other information required by existing law.
Existing law provides that an application to receive a license or registration card constitutes a request for a determination of the applicant's general character, integrity and ability to participate or engage in, or be associated with a cannabis establishment. (NRS 678B.200) Section 28 of this bill clarifies that an application to receive a license or registration card subjects an applicant to the jurisdiction of the Board.
Existing law sets forth various procedures and requirements for the issuance to a person of a license to operate a cannabis establishment, which vary based upon whether the person seeks to operate a medical cannabis establishment or an adult-use cannabis establishment. (NRS 678B.210, 678B.250) Section 65 of this bill repeals certain requirements and procedures relating to the issuance of a medical cannabis establishment license. Sections 31, 33 and 35 of this bill instead provide, in general, for standardized procedures and requirements for the issuance of an adult-use cannabis establishment license and a medical cannabis establishment license. Sections 8-12 and 58 of this bill make conforming changes to reflect the repeal of certain provisions relating to the issuance of a medical cannabis establishment license.
Under existing law, a person who wishes to operate a cannabis establishment is required to submit to the Board an application that includes certain information, including the physical address where the proposed cannabis establishment will be located. (NRS 678B.210, 678B.250) Section 31 revises certain requirements for the application for a license to, among other things, eliminate the requirement that an applicant submit to the Board the physical address of the proposed cannabis establishment before the issuance of a license. Section 31 requires the applicant to instead identify the local governmental jurisdiction where the proposed cannabis establishment will be located or, for a proposed retail cannabis consumption lounge, the physical address of the adult-use cannabis retail store to which the proposed retail cannabis consumption lounge will be attached or immediately adjacent.
In a local governmental jurisdiction that issues business licenses, existing law deems a license to be conditional until such time as the licensee complies with certain local requirements. (NRS 678B.320) Section 35 deems all licenses issued by the Board to be conditional until such time as: (1) the licensee submits to the Board the physical address where the cannabis establishment will be located, which must be in compliance with certain restrictions on the location of a cannabis establishment; (2) the cannabis establishment complies with certain local requirements, if applicable; (3) the cannabis establishment satisfies an inspection conducted by the Board; and (4) the licensee satisfies any other requirements established by the Board. Section 36 of this bill makes a conforming change to reflect the revisions set forth in sections 31 and 35.
Existing law requires the Board to adopt regulations establishing certain specified criteria and, for an adult-use cannabis establishment license for a retail cannabis consumption lounge or independent cannabis consumption lounge, scoring guidelines that the Board is required to use in determining whether to issue a license. (NRS 678B.240, 678B.280, 678B.324) Sections 33 and 65 eliminate provisions which require the Board to establish criteria and scoring guidelines. Section 33 instead authorizes the Board to consider certain criteria in determining whether to issue such a license.
Sections 29, 30, 32 and 65 of this bill eliminate various requirements and restrictions imposed on the Board by existing law relating to the issuance of adult-use cannabis establishment licenses and medical cannabis establishment licenses.
Section 20 of this bill provides that the provisions of existing law governing lotteries do not apply to an application for or the issuance of a license issued by the Board.
Existing law requires the Board to ensure that, in a county whose population is 100,000 or more (currently Clark and Washoe Counties), the Board does not issue to any one person, group of persons or entity: (1) for medical cannabis establishment licenses, the greater of one medical cannabis establishment license or more than 10 percent of the medical cannabis establishment licenses otherwise allocable to the county; and (2) for adult-use cannabis establishment licenses, the greater of one adult-use cannabis establishment license or more than 10 percent of the adult-use cannabis establishment licenses otherwise allocable to the county. (NRS 678B.230, 678B.270) Sections 30 and 65 revise those requirements to instead require the Board, in a county whose population is 100,000 or more, to ensure that the Board does not issue licenses or allow the transfer of licenses in a manner which results in any one person, group of persons or entity holding more than 10 percent of the medical cannabis establishment licenses or more than 10 percent of the adult-use cannabis establishment licenses in the county at any time. Section 38 of this bill revises provisions relating to certain transfers of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge if such a transfer would result in a violation of section 30.
Section 37 of this bill revises certain procedures relating to the issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge or independent cannabis consumption lounge in a local governmental jurisdiction that limits the number of business licenses issued to cannabis consumption lounges.
Existing law requires the Board to adopt regulations prescribing procedures by which a licensee may transfer his or her license to another qualified party. (NRS 678B.380) Section 42 of this bill sets forth certain prohibited acts with respect to the transfer of a license.
Existing law requires certain persons who volunteer or work at, contract to provide labor to, are employed by an independent contractor to provide labor to, or who hold an ownership interest of less than 5 percent in a cannabis establishment to register with the Board as a cannabis establishment agent and obtain a cannabis establishment agent registration card. (NRS 678B.340) Section 6 of the bill revises the definition of “cannabis establishment agent” to include independent contractors and their employees who provide labor or services to, or perform certain other functions involving, a cannabis establishment. Section 39 of this bill: (1) eliminates the requirement that a person who holds an ownership interest of less than 5 percent must obtain a cannabis establishment agent registration card; (2) revises certain requirements for the issuance of a cannabis establishment agent registration card; and (3) exempts certain persons who are, at all times while present on the premises of a cannabis establishment, escorted and under the direct visual supervision of a cannabis establishment agent from the requirement to obtain a cannabis establishment agent registration card. Section 24 of this bill authorizes the Board to: (1) require any person who, in the opinion of the Board, has the power to exercise a significant influence over the operation of a cannabis establishment to obtain a cannabis establishment agent registration card; and (2) adopt regulations relating to such a requirement.
Existing law, in general, exempts a person who holds a license or registration card issued by the Board from state prosecution for the possession, delivery or production of cannabis. (NRS 678C.200, 678D.200) Sections 51 and 59 of this bill expand this exemption to include a person who is exempt from obtaining a registration card pursuant to section 39.
Existing law requires a person who holds an ownership interest in a cannabis establishment of 5 percent or more to obtain a cannabis establishment agent registration card for a cannabis executive. (NRS 678B.350) Section 15 of this bill authorizes the Board to establish policies and procedures pursuant to which the Board may waive that requirement. Section 40 of this bill makes a conforming change to reflect the amendatory provisions of section 15 providing for such a waiver.
Existing law authorizes the Board, when determining whether to approve an application for a license or registration card, to consider whether the applicant is a person whose prior activities, criminal record, reputation, habits and associations create or enhance the dangers of unsuitable, unfair or illegal practices, methods or activities in the conduct of cannabis-related activities. (NRS 678B.200) Section 21 of this bill, which is modeled on provisions of the Nevada Gaming Control Act imposing certain requirements concerning investigations by the Nevada Gaming Control Board, requires the Board to investigate the qualifications of an applicant and to continually monitor licensees, registrants and certain other persons associated with a cannabis establishment to ensure that licenses and registration cards are not issued to or held by, nor is there any material involvement directly or indirectly with a cannabis establishment by, unqualified, disqualified or unsuitable persons or persons whose operations are conducted in an unsuitable manner or in unsuitable or prohibited places or locations. (NRS 463.1405) Section 21 also sets forth the powers of the Board with respect to the issuance of licenses and registration cards and the imposition of disciplinary action.
Under existing law, an applicant for a license is required to pay to the Board the actual cost of processing an application, including, without limitation the cost of background checks. (NRS 678B.390) Section 44 of this bill specifies that the cost of processing an application includes the cost of an investigation conducted pursuant to section 21. Section 50 of this bill requires the Board to adopt regulations establishing certain procedures for the issuance of a license or registration card.
Existing law requires, or authorizes the Board to require, an applicant for a license or registration card to submit to the Board a complete set of fingerprints and written permission of the applicant for the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. (NRS 678B.210, 678B.250, 678B.340, 678B.350, 678B.355) Sections 21, 31 and 39-41 of this bill revise provisions concerning applications for a license or registration card to instead require, or authorize the Board to require, an applicant for a license or registration card to submit a complete set of fingerprints directly to the Central Repository for submission to the Federal Bureau of Investigation for its report along with an authorization for the Board to receive from the Central Repository a copy of that report.
Existing law authorizes a medical cannabis establishment to: (1) transport medical cannabis to another cannabis establishment or between the buildings of the medical cannabis establishment; and (2) enter into a contract with a third party to provide such transportation. (NRS 678C.460) Existing law, with certain exceptions, prohibits an adult-use cannabis establishment from transporting cannabis or cannabis products to an adult-use cannabis retail store unless the adult-use cannabis establishment holds an adult-use cannabis establishment license for an adult-use cannabis distributor. (NRS 678D.440) Section 57 of this bill eliminates the authorization for a medical cannabis establishment to transport cannabis or cannabis products and to enter into a contract with a third party to transport cannabis or cannabis products. Section 23 of this bill instead prohibits, with certain exceptions, any cannabis establishment from transporting cannabis or cannabis products to another cannabis establishment or between buildings of a cannabis establishment unless the cannabis establishment holds an adult-use cannabis establishment license for an adult-use cannabis distributor. Section 61 of this bill authorizes an adult-use cannabis distributor to transport cannabis and cannabis products between a cannabis establishment and another cannabis establishment or between the buildings of a cannabis establishment. Section 5 of this bill revises the definition of “adult-use cannabis distributor” to reflect the authorizations set forth in section 61.
Section 22 of this bill provides that a licensee is liable for any violation of the provisions governing the medical and adult-use of cannabis or the regulations adopted by the Board which are committed by certain persons associated with the cannabis establishment for which the licensee holds a license.
Section 25 of this bill specifies that a person issued a license or registration card does not acquire any vested right, therein or thereunder, property or otherwise.
Section 19 of this bill provides for a standardized definition of the term “local governmental jurisdiction” for the purposes of existing law governing the licensing and control of cannabis. Section 26 of this bill makes a conforming change to indicate the proper placement of section 19 in the Nevada Revised Statutes.
Existing law sets forth certain acts which constitute grounds for the immediate revocation of a cannabis establishment agent registration card. (NRS 678B.385) Section 43 of this bill revises the list of acts that constitute grounds for such an immediate revocation and sets forth certain acts which constitute grounds for the summary suspension of a cannabis establishment agent registration card.
Existing law prohibits a cannabis establishment from dispensing or selling cannabis or cannabis products from a vending machine or allowing such a vending machine to be installed on the premises of the cannabis establishment. (NRS 678B.510) Section 45 of this bill authorizes a cannabis establishment to engage in such activities upon the approval of the Board.
Existing law authorizes a medical cannabis dispensary and a medical cannabis production facility to engage in certain activities relating to the acquisition and sale of hemp and commodities and products made using hemp. (NRS 678B.520, 678C.410) Sections 46 and 53 of this bill expand that authorization to allow adult-use cannabis production facilities and adult-use cannabis retail stores also to engage in such activities. Section 50 of this bill requires the Board to adopt regulations establishing minimum requirements for hemp used by a cannabis production facility or sold by a cannabis sales facility.
Existing law prohibits the production, distribution and sale of any synthetic cannabinoid. (NRS 453.572, 557.255, 678B.525) Section 13 of this bill revises the definition of “synthetic cannabinoid” to specify that, to qualify as a synthetic cannabinoid, the cannabinoid must not have been obtained directly without the use of chemicals from a plant of the genus Cannabis.
Existing law prohibits a person from selling, offering to sell, appearing to sell or advertising the sale of cannabis or cannabis products, unless the person holds an adult-use cannabis establishment license or medical cannabis establishment license. (NRS 678B.530) Section 47 of this bill prohibits those actions only if the person does not have the appropriate type of license and additionally prohibits a person from advertising as a cannabis sales facility or cannabis consumption lounge without the appropriate type of license.
Existing law exempts an employee of the State Department of Agriculture from state prosecution for certain offenses relating to cannabis under certain circumstances. (NRS 678B.600) Section 48 of this bill expands that exemption to also include an employee of the Board and an attorney who represents the Department or the Board.
Existing law authorizes an independent contractor to enter into a contract with a cannabis establishment to provide training to the cannabis establishment agents associated with the cannabis establishment. (NRS 678B.620) Section 49 of this bill authorizes the Board to adopt regulations establishing requirements for such an independent contractor.
Sections 52 and 56 of this bill make conforming changes that are necessary as the result of the renumbering in this bill of certain subsections of certain sections of the Nevada Revised Statutes.
Existing law authorizes a medical cannabis dispensary and a medical cannabis cultivation facility to acquire usable cannabis or cannabis plants from a person who holds a valid registry identification card. (NRS 678C.410) Section 53 eliminates this authorization for medical cannabis dispensaries.
Sections 27 and 55 of this bill revise provisions relating to the inventory control system of a cannabis establishment. Sections 55 and 60 of this bill revise provisions relating to the manner in which a dual licensee is authorized to report the inventory of the cannabis establishments for which the dual licensee is licensed. Section 34 of this bill authorizes the Board to adopt regulations establishing certain standards and procedures for a cannabis independent testing laboratory.
Existing law requires a medical cannabis establishment to maintain an electronic verification system. (NRS 678C.420) Section 7 of this bill changes the name of such a system to an electronic verification and authentication system. Section 54 of this bill revises requirements concerning the operation of such a system.
Existing law confers the powers of a peace officer upon a person designated as an enforcement agent by the Board for the purposes of enforcement of the provisions of existing law governing the medical and adult-use of cannabis. (NRS 289.355) Section 63 of this bill revises the list of persons associated with the Board upon whom the powers of a peace officer are conferred and the purposes for which such powers are conferred. Section 64 of this bill provides that certain changes in this bill do not apply to certain licensees who hold existing licenses before July 1, 2023, the effective date of this bill.
Statutes affected: As Introduced: 678A.030, 678A.100, 678A.150, 678A.170, 678A.175, 678A.185, 678A.190, 678A.205, 678A.239, 678A.440, 678A.450, 678A.460, 678A.470, 678B.010, 678B.020, 678B.060, 678B.200, 678B.220, 678B.230, 678B.250, 678B.260, 678B.280, 678B.290, 678B.320, 678B.322, 678B.327, 678B.328, 678B.340, 678B.350, 678B.355, 678B.380, 678B.385, 678B.390, 678B.510, 678B.520, 678B.530, 678B.600, 678B.620, 678B.650, 678C.200, 678C.400, 678C.410, 678C.420, 678C.430, 678C.440, 678C.460, 678C.600, 678D.200, 678D.430, 678D.440, 2