Existing law sets forth the procedures by which the Cannabis Compliance Board may take disciplinary action against a licensee or registrant who violates a provision of existing law governing the cannabis industry in this State or any regulation adopted by the Board. (NRS 678A.500-678A.600) Sections 2 and 4 of this bill authorize the Board to resolve any matter concerning a licensee or registrant who has allegedly committed such a violation by entering into a consent or settlement agreement with the licensee or registrant so long as the Board discusses and approves the terms of the agreement, and any modification of those terms, at a meeting of the Board. Section 3 of this bill sets forth certain mitigating circumstances concerning a violation. Section 2 requires the Board to consider whether any of those mitigating circumstances exist in determining whether to approve or modify the terms of a consent or settlement agreement. If the Board elects to proceed with disciplinary action against a licensee or registrant, existing law requires the Board or the Executive Director of the Board to serve upon the licensee or registrant a complaint setting forth the acts or omissions for which the licensee or registrant is charged and certain other information. (NRS 678A.520) Section 5 of this bill requires the complaint to charge multiple alleged violations as a single alleged violation under certain circumstances. Section 5 also requires the complaint to include the penalties being sought against the licensee or registrant. If the Board determines that a licensee or registrant has violated a provision of existing law governing the cannabis industry in this State or any regulation adopted by the Board, existing law authorizes the Board to: (1) limit, condition, suspend or revoke the license or registration card of the licensee or registrant; (2) impose a civil penalty in an amount established by the Board by regulation; or (3) take both of those actions. (NRS 678A.600) Section 7 of this bill: (1) requires the Board, in determining the appropriate action to be taken against such a licensee or registrant, to consider whether any of the mitigating circumstances set forth in section 3 exist; (2) limits the amount of a civil penalty the Board is authorized to impose for a single violation to $20,000; and (3) authorizes the Board to take certain additional actions. Section 6 of this bill requires that certain information concerning the mitigating factors considered by the Board pursuant to section 7 be included in the written decision of the Board following a disciplinary hearing in certain circumstances. Existing law requires an applicant for a license to pay to the Board the actual costs incurred by the Board in processing the application, including, without limitation, conducting background checks. (NRS 678B.390) Section 11 of this bill revises that requirement to instead require an applicant to pay the actual costs paid by the Board to a law enforcement agency or other person who is not an employee of the Board to conduct any background checks in connection with the application. Existing regulations of the Board require the Board to charge each cannabis establishment, at an hourly rate established by the Board, an assessment for the costs of various ongoing activities of the Board relating to the oversight of the cannabis establishment, including, without limitation routine inspections and audits, the investigation of certain complaints and investigations based on any type of requested transfer of interest. (Nev. Cannabis Compliance Bd. Regs. § 6.025) Section 11 prohibits the Board from charging a licensee, registrant or applicant for a license or registration card any fee, cost, fine or other charge that is not expressly authorized by the provisions of existing law governing the cannabis industry in this State, including, with certain exceptions set forth in section 11, any charge for the costs of ongoing activities of the Board relating to the oversight of a cannabis establishment. Existing regulations of the Board set forth various requirements for the transfer of an ownership interest in a cannabis establishment. (Nev. Cannabis Compliance Bd. Regs. § 5.110) Section 10 of this bill specifically requires the Board to adopt regulations by which the holder of an ownership interest in a cannabis establishment may transfer all or any portion of the ownership interest to another qualified person. Section 11 authorizes the Board to charge a cannabis establishment for the actual costs paid by the Board to a law enforcement agency or other person who is not an employee of the Board to conduct any background checks in connection with a transfer of ownership interest in the cannabis establishment. In addition to any other applicable fees, section 11 also authorizes the Board to charge a licensee or an applicant for a license certain amounts for the costs incurred by the Board in conducting an investigation in connection with: (1) a transfer of an ownership interest in a cannabis establishment; (2) an application for the initial issuance of a license; (3) a request to obtain any approval that may be required by the Board to enter into an agreement to provide management services to a cannabis establishment; and (4) any waiver that is requested pursuant to the provisions of existing law governing cannabis. Section 11 limits the amounts that may be charged to a reasonable hourly fee for each hour spent by agents of the Board in conducting the investigation and travel expenses and per diem allowances for such agents. Section 9.5 of this bill requires the Board to adopt regulations establishing certain procedures and requirements for the charging and collecting of such amounts. Section 12 of this bill makes a conforming change to refer to provisions that have been renumbered in section 11.

Statutes affected:
As Introduced: 678A.510, 678A.520, 678A.590, 678A.600, 678A.610, 678A.640, 678B.380, 678B.390, 387.1212
Reprint 1: 678A.510, 678A.520, 678A.590, 678A.600, 678B.380, 678B.390, 387.1212
Reprint 2: 678A.510, 678A.520, 678A.590, 678A.600, 678B.380, 678B.390, 387.1212
As Enrolled: 678A.510, 678A.520, 678A.590, 678A.600, 678B.380, 678B.390, 387.1212
BDR: 678A.510, 678A.520, 678A.590, 678A.600, 678A.610, 678A.640, 678B.380, 678B.390, 387.1212