Existing law provides an exemption from state prosecution for certain offenses relating to cannabis for certain persons, including, without limitation, persons who hold an adult-use cannabis establishment license or medical cannabis establishment license issued by the Cannabis Compliance Board and who confine their activities to those authorized by the provisions of existing law governing the adult use and medical use of cannabis. (NRS 678C.200, 678D.200) Existing law provides for the imposition of a civil penalty of not more than $50,000 on a person who does not hold a license issued by the Board and who engages in certain activities involving cannabis, including, without limitation, the cultivation, manufacture, delivery or sale of cannabis or cannabis products by the person or the advertisement of the sale of cannabis or cannabis products by the person. Existing law authorizes a district attorney or city attorney to recover such a civil penalty. (NRS 678A.650) Section 10 of this bill increases the maximum civil penalty for engaging in such activities to $10,000,000. Section 10 provides an exception from that civil penalty for a person who does not hold a license and who sells, by means of an in-person transaction, one ounce or less of cannabis that is not concentrated cannabis or one-eighth of an ounce or less of concentrated cannabis. Under section 10, such a person is liable for a civil penalty of not more than $50,000. Section 2 of this bill prohibits a person who owns or operates a premises, an Internet website or an online service from knowingly: (1) allowing a person who does not hold a license to engage in certain activities relating to cannabis on the premises or through the Internet website or online service; or (2) accepting compensation from a person who does not hold a license for the advertisement of certain activities relating to cannabis on the premises or through the Internet website or online service. Under section 2, a person who violates those prohibitions is liable for a civil penalty of not more than $10,000,000. Section 3 of this bill requires a civil penalty imposed pursuant to section 2 or 10 to be recovered in a civil action by a district attorney, a city attorney or the Attorney General on his or her own initiative or at the request of the Board. Section 3 provides for the imposition, under certain circumstances, of an additional civil penalty in such an action involving the sale of cannabis or cannabis products in an amount equal to the amount of the excise tax on cannabis for which the person would have been liable if the person had conducted the sale as a licensed cannabis establishment. Finally, section 3 sets forth the manner in which civil penalties recovered pursuant to section 3 must be deposited. Section 6 of this bill requires the Board to adopt regulations establishing a program to provide for the payment of rewards to persons who provide material information to the Board that results in the commencement of a civil action and the recovery of a civil penalty by the Attorney General at the request of the Board pursuant to section 3. Sections 7 and 8 of this bill authorize the Attorney General and the governing body of a city or county to establish a similar program. Section 4 of this bill authorizes a district attorney, a city attorney or the Attorney General on his or her own initiative or at the request of the Board to bring an action to enjoin violations involving conduct described in sections 2 and 10. Section 5 of this bill requires the Board to designate one or more agents of the Board for the investigation of violations involving conduct described in sections 2 and 10 and to assist in the enforcement of those sections. Existing law prohibits an applicant from being issued an adult-use cannabis establishment license or medical cannabis establishment license if the proposed cannabis establishment will be located: (1) on the property of an airport; (2) within a certain distance from a school or community facility; or (3) if the establishment will be located in a county whose population is 100,000 or more (currently Clark and Washoe Counties), within 1,500 feet of a gaming establishment that holds a nonrestricted gaming license. (NRS 678B.210, 678B.250, 678B.322) Sections 11-13 of this bill authorize a proposed cannabis establishment to be located: (1) on the property of an airport; or (2) within 1,500 feet of a gaming establishment that holds a nonrestricted gaming license, if the applicant has obtained the written permission of the owner or operator of the gaming establishment. Section 16 of this bill requires the Attorney General to notify the Governor and the Director of the Legislative Counsel Bureau if the Attorney General determines that federal law has developed in such a manner so as to recognize the authority of the states to authorize persons to engage in activities relating to cannabis. Section 17 of this bill provides that sections 11-13 become effective on the date on which the Attorney General provides such notice. Existing law prohibits the production, distribution and sale of any synthetic cannabinoid. (NRS 453.572, 557.255, 678B.525) Section 9 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. Under existing law, the term “marijuana” includes any commodity or product made using hemp which exceeds the maximum THC concentration established by the State Department of Agriculture for hemp. (NRS 453.096) Section 14 of this bill revises the definition of “marijuana” to include any other commodity or product which contains a THC concentration that exceeds the maximum THC concentration established by the State Department of Agriculture for hemp. Existing law provides that a person who engages in certain unlawful activities involving the unlawful sale, manufacture or delivery of certain controlled substances, including marijuana, is subject to a civil penalty. (NRS 453.553) Existing law sets forth the maximum amount of such a civil penalty if the unlawful activities involved marijuana. (NRS 453.5531) Section 15 of this bill revises those provisions to specify that if the provisions of section 2 or 10 provide a greater civil penalty for the unlawful activities, the greater penalty must apply.

Statutes affected:
As Introduced: 678A.239, 678A.650, 678B.210, 678B.250, 678B.322, 453.096, 453.5531
BDR: 678A.239, 678A.650, 678B.210, 678B.250, 678B.322, 453.096, 453.5531