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 7 of this bill creates the 4-year Cannabis Mentorship Pilot Program for the purpose of providing persons who have been adversely affected by provisions of previous laws which criminalized activity relating to cannabis the opportunity to receive training, experience and mentorship in the cannabis industry in this State. Section 7 requires the Program to provide for, in general, the placement of a participant as a full-time employee with a sponsor who holds a license issued by the Board for a 2-year period during which the participant works for the sponsor in a variety of aspects of the business operations of the sponsor. Section 7 requires a person to have been adversely affected by previous laws which criminalized activity relating to cannabis in order to be eligible to participate in the Program. Finally, section 7 requires the Board to adopt regulations governing the Program. Section 8 of this bill requires a person who wishes to participate in the Program to submit to the Board an application and a fee. Section 14 of this bill requires the amount of the fee to be established by the Board by regulation. Section 21 of this bill makes a conforming change to reflect the addition of the provisions of section 14. Section 9 of this bill requires an applicant whose application is conditionally approved to enter into a written mentorship agreement with a proposed sponsor, which must be approved by the Board for participation in the Program. Section 11 of this bill requires the Board to conduct monitoring of a participant and sponsor throughout the mentorship period. If, at the conclusion of the mentorship period, a participant has satisfied the goals, benchmarks and performance metrics for the Program established by the Board by regulation, section 11 requires the Board to issue the participant a certificate indicating that the participant has successfully completed the Program. Existing law sets forth various requirements for the issuance of an adult-use cannabis establishment license. (NRS 678B.250) Section 12 of this bill requires the Board, not later than October 1, 2027, to accept applications for a period of 10 business days for the issuance of an adult-use cannabis establishment license for a cannabis production facility from participants who have successfully completed the Program. Section 12 requires the Board to issue not more than 10 such licenses to qualified participants who submit an application. Section 12 requires the applications for such licenses to be submitted and the licenses to be issued in accordance with the procedures and requirements set forth under existing law for the issuance of any other adult-use cannabis establishment license. Section 13 of this bill provides an exception from provisions prohibiting the Board from accepting applications to operate a cannabis establishment for more than 10 business days in any 1 year for the acceptance of applications pursuant to section 12. Existing law imposes a 10 percent excise tax on each retail sale of cannabis or cannabis products by an adult-use cannabis retail store or cannabis consumption lounge and a 15 percent excise tax on each wholesale sale of cannabis by a medical cannabis cultivation facility or an adult-use cannabis cultivation facility to another cannabis establishment. (NRS 372A.290) Section 16 of this bill authorizes a sponsor in the Program to apply for a transferable tax credit that may be applied to the excise taxes on cannabis. Section 16 authorizes such an application to be made: (1) at the commencement of the mentorship period in the amount equal to the costs of employing a participant for 2 years; and (2) at the conclusion of the mentorship period, in the amount of 3 percent of the tax owed for the 1 year after the conclusion of the mentorship period. Upon approval of an application, section 16 requires the Board to issue a certificate of eligibility for transferable tax credits. Under section 16, the amount of the transferable tax credits that the Board is authorized to approve in any fiscal year must not exceed $10,000,000 for the duration of the 4-year Program. Section 17 of this bill requires a person who has received transferable tax credits pursuant to section 16 to repay to the Department of Taxation any portion of the transferable tax credits to which the person is not entitled if the person becomes ineligible for the tax credits after receiving the tax credits. Section 18 of this bill requires the Board to submit an annual report to the Governor and the Legislature or Legislative Commission concerning the transferable tax credits issued pursuant to section 16. Sections 19 and 20 of this bill make conforming changes to make existing definitions related to the taxation of cannabis apply to sections 16-18. Sections 3-6 of this bill define words and terms applicable to the provisions of this bill. Section 22 of this bill requires the Board, on or before October 31, 2024, to submit to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission a report on the progress of the Board in carrying out its duties with respect to the Program. Section 23 of this bill requires the Board to adopt regulations governing the Program on or before May 31, 2024. Section 25 of this bill expires the provisions of this bill on December 31, 2027.

Statutes affected:
As Introduced: 678B.300, 678B.390, 372A.200, 372A.270, 387.1212
Reprint 1: 678B.300, 678B.390, 372A.200, 372A.270, 387.1212
BDR: 678B.300, 678B.390, 372A.200, 372A.270, 387.1212