Existing law sets forth certain legislative findings and declarations concerning the public policy of this State with respect to the cannabis industry. (NRS 678A.005) Section 1 of this bill revises those findings and declarations and adds certain findings and declarations relating to illegal and unregulated activities involving cannabis. Existing law sets forth the general powers of the Cannabis Compliance Board. (NRS 678A.440) Section 1.6 of this bill authorizes the Board to: (1) seize and destroy cannabis and cannabis products involved in unlicensed cannabis activities in accordance with the procedures applicable to other property subject to forfeiture; and (2) commit resources and take certain actions relating to unlicensed cannabis activities. Existing law sets forth the composition of the Board. (NRS 678A.360) Existing law requires the Governor to appoint the members of the Board and designate one member to serve as Chair. (NRS 678A.370) Section 1.3 of this bill revises certain requirements and qualifications of the members of the Board. Sections 1.3, 4.3 and 4.6 of this bill exempt one member of the Board who is required to be selected based on his or her knowledge, skill and experience in the cannabis industry from certain restrictions imposed on former public officers or employees. Section 1.4 of this bill revises provisions concerning the appointment of members of the Board. Section 1.4 requires the Governor to designate one member of the Board to serve as Vice Chair and requires each member, before entering upon the duties of office, to receive training that is the same or substantially similar to that which is required of a cannabis establishment agent. Section 5.4 of this bill provides for staggered terms of the five members of the Board by: (1) providing that the terms of office of three members of the Board serving on June 30, 2024, expire on that date and requiring new members be appointed for a term of 4 years commencing July 1, 2024; and (2) providing that the terms of office of the remaining two members of the Board serving as of June 30, 2025, expire on that date and requiring new members be appointed for a term of 4 years commencing July 1, 2025. Existing law requires the Board to appoint, and authorizes the Board to remove, the Executive Director of the Board. (NRS 678A.420) Section 1.5 of this bill transfers that authority to the Governor and requires the Governor to consider the skill and experience of a potential Executive Director in regulated industries when making the appointment. Existing law authorizes the Board to adopt regulations necessary and convenient to carry out certain provisions of law relating to the regulation of cannabis. (NRS 678A.450) Section 1.7 of this bill provides that if the Board adopts regulations establishing certain mechanisms to ensure compliance with those provisions of law, the mechanisms must: (1) include certain education and training for employees of the Board and certain information to aid licensees and registrants in compliance; and (2) establish certain grounds for disciplinary action against a licensee or registrant. Section 1.7 also authorizes the Board to adopt certain regulations governing cannabis establishments which are publicly traded companies. Finally, section 1.7 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. Section 5.3 of this bill makes a conforming change to account for the placement of new language in section 1.7. Existing law sets forth the Nevada Administrative Procedure Act, which establishes the procedures for state agencies to adopt, amend or repeal administrative regulations and adjudicate contested cases. (Chapter 233B of NRS) Existing law exempts the Board from the provisions of the Act. (NRS 233B.039) Existing law instead sets forth specific procedures for the Board to: (1) adopt, amend or repeal regulations; and (2) take disciplinary action against a person who holds a license or registration card issued by the Board. (NRS 678A.460, 678A.500-678A.640) Section 5 of this bill eliminates the exemption of the Board from the provisions of the Act, thereby requiring the Board to adopt, amend and repeal regulations and adjudicate contested cases in the same manner as other state agencies subject to the provisions of the Act. Section 6 of this bill repeals the specific procedures for the Board to adopt, amend or repeal regulations set forth under existing law. Sections 1.9-3 of this bill revise the procedures for the Board to take disciplinary action to conform with the procedures for the adjudication of contested cases set forth in the Act. Existing law sets forth procedures by which a person aggrieved by a final decision of the Board in a disciplinary proceeding may obtain judicial review of the decision. (NRS 678A.610-678A.640) Section 6 eliminates those procedures. Section 4 of this bill instead authorizes a person aggrieved by a final decision of the Board in a disciplinary proceeding to obtain judicial review of the decision in the manner provided in the Act.

Statutes affected:
As Introduced: 233B.039, 678A.460
Reprint 1: 678A.510, 678A.540, 678A.590, 678A.610, 233B.039
Reprint 2: 678A.005, 678A.360, 678A.370, 678A.420, 678A.440, 678A.450, 678A.510, 678A.540, 678A.590, 678A.610, 281A.410, 281A.550, 233B.039, 453.096
As Enrolled: 678A.005, 678A.360, 678A.370, 678A.420, 678A.440, 678A.450, 678A.510, 678A.540, 678A.590, 678A.610, 281A.410, 281A.550, 233B.039, 453.096
BDR: 233B.039, 678A.460