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) Existing law sets forth procedures by which the Board may take disciplinary action against a licensee or registrant. (NRS 678A.500-678A.600) Under existing law, the Executive Director of the Board is authorized to transmit the details of any suspected violation of the provisions of existing law and regulations that govern the medical and adult use of cannabis to the Attorney General for an investigation. (NRS 678A.500) After the investigation, existing law requires the Board to determine whether to proceed with disciplinary action against a licensee or registrant. (NRS 678A.510) If the Board proceeds with disciplinary action, existing law: (1) requires the Board or the Executive Director to serve a complaint upon the respondent; and (2) sets forth procedures for the conduct of a disciplinary hearing before the Board. (NRS 678A.520-678A.590) If the Board determines that a licensee or registrant has violated a provision of existing law or regulations governing the medical and adult use of cannabis, existing law authorizes the Board to impose certain penalties against the licensee or registrant. (NRS 678A.600)
Sections 6, 11 and 13-24 of this bill revise the procedures by which disciplinary action may be taken against a licensee or registrant. Section 13 specifies that the Executive Director is authorized to transmit the details of a suspected violation to the Attorney General for further investigation. Section 24 makes a conforming change to reflect the fact that an investigation of a violation is commenced by the Executive Director, rather than the Board. Section 14 requires the Executive Director, rather than the Board, to make the determination whether to proceed with disciplinary action. If the Executive Director makes a determination to proceed, section 15 requires the Executive Director to serve upon the respondent either a complaint or notice of violation. Section 11 requires the Board to adopt regulations prescribing a list of violations which are appropriate for the issuance of a notice of violation. Section 15 revises the required content of a complaint and sets forth the required content of a notice of violation. Under section 15, if the Executive Director serves a notice of violation, the Executive Director may seek only the imposition of a civil penalty. Section 15 requires the respondent to either answer the complaint or notice of violation or, for a notice of violation, pay the civil penalty being sought. Upon receipt of an answer demanding a hearing or the expiration of the time to answer the complaint or notice of violation, section 15 requires the Executive Director to assign the matter to a hearing officer. Sections 15-23 require a disciplinary hearing to be heard before a hearing officer, rather than the Board, and revise procedures for the conduct of such a hearing. Section 6: (1) provides that the decision and order of a hearing officer is final unless a party aggrieved by the decision requests that the Board review the decision or the Board initiates such a review on its own motion; and (2) sets forth procedures for the conduct of a review by the Board. Section 23 provides that any person aggrieved by a final decision or order of the Board after a review conducted pursuant to section 6 is entitled to judicial review of the decision or order.
Section 5 of this bill requires the Board to appoint one or more hearing officers to conduct disciplinary hearings and render decisions.
Section 26 of this bill authorizes the Board, the Executive Director or a designee of the Executive Director to issue a letter of warning, a letter of concern or a nonpunitive admonishment under certain circumstances.
Existing law requires the Board to adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. (NRS 678A.450) Section 11 authorizes the Board to issue summonses and subpoenas and to take certain other actions in connection with such an investigation.
Sections 4, 12 and 54 of this bill revise provisions relating to the confidentiality of certain information obtained by the Board. Existing law authorizes the Governor or his or her designee to enter into one or more agreements with tribal governments concerning cannabis. (NRS 223.250) Sections 52 and 53 of this bill provide that certain information received by a governmental entity pursuant to the terms of such an agreement does not constitute a public record and is confidential.
Sections 2, 7, 33, 34, 37 and 38 of this bill establish a standardized definition of the term “local governmental jurisdiction” for the purposes of provisions governing the medical and adult use of cannabis.
Existing law prohibits the production, distribution and sale of any synthetic cannabinoid. (NRS 453.572, 557.255, 678B.525) Section 10 of this bill revises the definition of “synthetic cannabinoid” to: (1) specify that any cannabinoid that is either produced artificially or not obtained directly without the use of chemicals from a plant of the genus Cannabis constitutes a synthetic cannabinoid; and (2) exclude delta-9-tetrahydrocannabinol produced using certain processes.
Existing law requires a cannabis establishment to use an inventory control system. (NRS 678B.210, 678B.250, 678C.430) Existing law sets forth certain requirements for the operation of such a system by a medical cannabis establishment. (NRS 678B.430) Sections 27, 31, 32, 35 and 45 of this bill revise those requirements and additionally apply the requirements to the operation of such a system by an adult-use cannabis establishment. Sections 45 and 49 of this bill revise requirements for a dual licensee concerning the reporting of inventory.
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.410, 678D.440) Section 46 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 28 of this bill instead prohibits, with certain exceptions, any cannabis establishment from transporting cannabis or cannabis products to another cannabis establishment or between the buildings of a cannabis establishment unless the cannabis establishment holds an adult-use cannabis establishment license for an adult-use cannabis distributor. Section 50 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 8 of this bill revises the definition of “adult-use cannabis distributor” to reflect the authorizations set forth in section 50.
Existing law sets forth procedures by which a health authority, upon finding a condition in the operation of a food establishment constituting a substantial hazard to the public health, may issue an order to the holder of the permit to operate the food establishment that may require the immediate suspension of the permit and discontinuance of all food operations. (NRS 446.880) Section 30 of this bill sets forth similar procedures by which an agent of the Board may issue such an order to the holder of a cannabis establishment license if the agent finds a condition in the operation of the cannabis establishment which constitutes a substantial hazard to the public health. Section 30 sets forth certain conditions under which such an order may not order the immediate suspension of the license and the immediate discontinuance of the operations of the cannabis establishment. Section 29 of this bill defines “substantial hazard to the public health” to include certain specified conditions. Section 29 additionally requires the Board to adopt certain regulations concerning substantial hazards to the public health which may exist at a cannabis establishment.
Existing law requires an applicant for a medical cannabis establishment license or adult-use cannabis establishment license to submit to the Board the physical address of the proposed cannabis establishment, which, among other requirements, must not be within a certain distance of a public or private school or community facility. (NRS 678B.210, 678B.250) Sections 32 and 35 establish definitions of “public school” and “private school” and revise the definition of “community facility.”
Section 36 of this bill revises certain requirements for cannabis independent testing laboratories.
Existing law deems the issuance of a license by the Board to be conditional in certain local governmental jurisdictions until the cannabis establishment is in compliance with applicable local governmental ordinances or rules and the local government has issued a business license for the operation of the establishment. (NRS 678B.320) Section 37 additionally deems the issuance of such a license to be conditional until the cannabis establishment satisfies an inspection conducted by the Board.
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 39 of this bill authorizes a cannabis establishment to engage in such activities upon the approval of the Board. Section 39 additionally revises the procedures that the operating documents of a cannabis establishment are required to include.
Existing law authorizes a medical cannabis production facility to: (1) acquire hemp or a commodity or product made using hemp from a grower or handler registered by the State Department of Agriculture; and (2) use hemp or a commodity or product made using hemp to manufacture medical cannabis products. (NRS 687C.410) Sections 40 and 43 of this bill instead authorize any cannabis production facility to: (1) acquire hemp from any source approved by the Board; (2) use hemp to manufacture cannabis products; and (3) sell to a cannabis sales facility a cannabis product that contains hemp. Section 40 additionally authorizes a cannabis sales facility to acquire hemp or a commodity or product made using hemp from any source approved by the Board and to sell hemp or any cannabis product that contains hemp, in addition to any commodity or product made using hemp.
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 41 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 42 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 provides an exemption from state prosecution for the possession, delivery and production of cannabis for: (1) a person who holds a valid registry identification card or letter of approval; and (2) a person who is 21 years of age or older. However, under existing law, that exemption is subject to certain limitations. For example, with respect to usable cannabis, the exemption applies only to the extent that a person does not, at any one time, possess, deliver or produce more than 2.5 ounces of usable cannabis. (NRS 678C.200, 678D.200) Existing law also prohibits a cannabis sales facility from selling to a person, in any one transaction, more than 2.5 ounces of usable cannabis. (NRS 678B.550) Sections 3, 7 and 56 of this bill revise the definition of “usable cannabis” to exclude the seeds of a plant of the genus plant Cannabis and applies this definition throughout the provisions of existing law governing the medical and adult use of cannabis. Section 47 of this bill makes a conforming change to eliminate a reference to a provision that has been repealed in section 56.
Existing law requires a medical cannabis establishment to maintain an electronic verification system. (NRS 678B.210, 678C.420) Section 9 of this bill changes the name of such a system to an electronic verification and authentication system. Section 44 of this bill revises requirements concerning the operation of such a system.
Existing law requires an adult-use cannabis product to be sold in a single package. (NRS 678D.420) Section 48 of this bill revises requirements concerning the amount of usable cannabis or THC that a single package may contain.
Existing law, with certain exceptions, prohibits smoking in any form within indoor places of employment. (NRS 202.2483) Section 51 of this bill clarifies that the smoking of cannabis in a cannabis consumption lounge in accordance with the provisions of existing law governing the medical and adult-use of cannabis is not prohibited.
Statutes affected: As Introduced: 678A.010, 678A.030, 678A.150, 678A.239, 678A.450, 678A.470, 678A.500, 678A.510, 678A.520, 678A.530, 678A.540, 678A.550, 678A.570, 678A.580, 678A.590, 678A.600, 678A.610, 678A.647, 678B.060, 678B.210, 678B.215, 678B.230, 678B.250, 678B.290, 678B.320, 678B.327, 678B.510, 678B.520, 678B.530, 678B.600, 678C.410, 678C.420, 678C.430, 678C.460, 678D.005, 678D.420, 678D.430, 678D.440, 202.2483, 223.250, 239.010, 239.0115
BDR: 678A.010, 678A.030, 678A.150, 678A.239, 678A.450, 678A.470, 678A.500, 678A.510, 678A.520, 678A.530, 678A.540, 678A.550, 678A.570, 678A.580, 678A.590, 678A.600, 678A.610, 678A.647, 678B.060, 678B.210, 678B.215, 678B.230, 678B.250, 678B.290, 678B.320, 678B.327, 678B.510, 678B.520, 678B.530, 678B.600, 678C.410, 678C.420, 678C.430, 678C.460, 678D.005, 678D.420, 678D.430, 678D.440, 202.2483, 223.250, 239.010, 239.0115