S.B. 328
- *SB328*
SENATE BILL NO. 328–SENATORS TITUS AND NGUYEN
MARCH 20, 2023
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Referred to Committee on Commerce and Labor
SUMMARY—Revises the procedures by which the Cannabis
Compliance Board is required to adopt, amend or
repeal regulations. (BDR 56-519)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to cannabis; eliminating the exemption of the
Cannabis Compliance Board from the provisions of the
Nevada Administrative Procedure Act with respect to
the adoption, amendment or repeal of regulations; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law sets forth the Nevada Administrative Procedure Act, which 1
establishes the procedures for state agencies to adopt, amend or repeal 2
administrative regulations and adjudicate contested cases. (Chapter 233B of NRS) 3
Existing law exempts the Cannabis Compliance Board from the provisions of the 4
Act. (NRS 233B.039) Existing law instead sets forth specific procedures for the 5
Board to adopt, amend or repeal regulations. (NRS 678A.460) Sections 1 and 2 of 6
this bill repeal those procedures and eliminate the exemption of the Board from the 7
provisions of the Act with respect to the adoption, amendment or repeal of 8
regulations, thereby requiring the Board to adopt, amend and repeal regulations in 9
the same manner as other state agencies subject to the provisions of the Act. 10
Section 1 retains the exemption of the Board from the provisions of the Act with 11
respect to adjudication of contested cases. 12
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 233B.039 is hereby amended to read as 1
follows: 2
233B.039 1. The following agencies are entirely exempted 3
from the requirements of this chapter: 4
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(a) The Governor. 1
(b) Except as otherwise provided in NRS 209.221 and 209.2473, 2
the Department of Corrections. 3
(c) The Nevada System of Higher Education. 4
(d) The Office of the Military. 5
(e) The Nevada Gaming Control Board. 6
(f) Except as otherwise provided in NRS 368A.140 and 463.765, 7
the Nevada Gaming Commission. 8
(g) Except as otherwise provided in NRS 425.620, the Division 9
of Welfare and Supportive Services of the Department of Health and 10
Human Services. 11
(h) Except as otherwise provided in NRS 422.390, the Division 12
of Health Care Financing and Policy of the Department of Health 13
and Human Services. 14
(i) Except as otherwise provided in NRS 533.365, the Office of 15
the State Engineer. 16
(j) The Division of Industrial Relations of the Department of 17
Business and Industry acting to enforce the provisions of 18
NRS 618.375. 19
(k) The Administrator of the Division of Industrial Relations of 20
the Department of Business and Industry in establishing and 21
adjusting the schedule of fees and charges for accident benefits 22
pursuant to subsection 2 of NRS 616C.260. 23
(l) The Board to Review Claims in adopting resolutions to carry 24
out its duties pursuant to NRS 445C.310. 25
(m) The Silver State Health Insurance Exchange. 26
[(n) The Cannabis Compliance Board.] 27
2. Except as otherwise provided in subsection 5 and NRS 28
391.323, the Department of Education, the Board of the Public 29
Employees’ Benefits Program and the Commission on Professional 30
Standards in Education are subject to the provisions of this chapter 31
for the purpose of adopting regulations but not with respect to any 32
contested case. 33
3. The special provisions of: 34
(a) Chapter 612 of NRS for the adoption of an emergency 35
regulation or the distribution of regulations by and the judicial 36
review of decisions of the Employment Security Division of the 37
Department of Employment, Training and Rehabilitation; 38
(b) Chapters 616A to 617, inclusive, of NRS for the 39
determination of contested claims; 40
(c) Chapter 91 of NRS for the judicial review of decisions of the 41
Administrator of the Securities Division of the Office of the 42
Secretary of State; and 43
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(d) NRS 90.800 for the use of summary orders in contested 1
cases, 2
prevail over the general provisions of this chapter. 3
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and 4
233B.126 do not apply to the Department of Health and Human 5
Services in the adjudication of contested cases involving the 6
issuance of letters of approval for health facilities and agencies. 7
5. The provisions of this chapter do not apply to: 8
(a) Any order for immediate action, including, but not limited 9
to, quarantine and the treatment or cleansing of infected or infested 10
animals, objects or premises, made under the authority of the State 11
Board of Agriculture, the State Board of Health, or any other agency 12
of this State in the discharge of a responsibility for the preservation 13
of human or animal health or for insect or pest control; 14
(b) An extraordinary regulation of the State Board of Pharmacy 15
adopted pursuant to NRS 453.2184; 16
(c) A regulation adopted by the State Board of Education 17
pursuant to NRS 388.255 or 394.1694; 18
(d) The judicial review of decisions of the Public Utilities 19
Commission of Nevada; 20
(e) The adoption, amendment or repeal of policies by the 21
Rehabilitation Division of the Department of Employment, Training 22
and Rehabilitation pursuant to NRS 426.561 or 615.178; 23
(f) The adoption or amendment of a rule or regulation to be 24
included in the State Plan for Services for Victims of Crime by the 25
Department of Health and Human Services pursuant to 26
NRS 217.130; 27
(g) The adoption, amendment or repeal of rules governing the 28
conduct of contests and exhibitions of unarmed combat by the 29
Nevada Athletic Commission pursuant to NRS 467.075; 30
(h) The adoption, amendment or repeal of regulations by the 31
Director of the Department of Health and Human Services pursuant 32
to NRS 447.335 to 447.350, inclusive; 33
(i) The adoption, amendment or repeal of standards of content 34
and performance for courses of study in public schools by the 35
Council to Establish Academic Standards for Public Schools and the 36
State Board of Education pursuant to NRS 389.520; 37
(j) The adoption, amendment or repeal of the statewide plan to 38
allocate money from the Fund for a Resilient Nevada created by 39
NRS 433.732 established by the Department of Health and Human 40
Services pursuant to paragraph (b) of subsection 1 of NRS 433.734; 41
or 42
(k) The adoption or amendment of a data request by the 43
Commissioner of Insurance pursuant to NRS 687B.404. 44
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6. The State Board of Parole Commissioners [is] and the 1
Cannabis Compliance Board are subject to the provisions of this 2
chapter for the purpose of adopting regulations but not with respect 3
to any contested case. 4
Sec. 2. NRS 678A.460 is hereby repealed. 5
Sec. 3. This act becomes effective upon passage and approval. 6
TEXT OF REPEALED SECTION
678A.460 Regulations: Procedure for adoption, amendment
and repeal.
1. The Board shall adopt, amend and repeal regulations in
accordance with the following procedures:
(a) At least 30 days before a meeting of the Board at which the
adoption, amendment or repeal of a regulation is considered, notice
of the proposed action must be:
(1) Posted on the Internet website of the Board;
(2) Mailed to every person who has filed a request therefor
with the Board; and
(3) When the Board deems advisable, mailed to any person
whom the Board believes would be interested in the proposed
action, and published in such additional form and manner as the
Board prescribes.
(b) The notice of proposed adoption, amendment or repeal must
include:
(1) A statement of the time, place and nature of the
proceedings for adoption, amendment or repeal;
(2) Reference to the authority under which the action is
proposed; and
(3) Either the express terms or an informative summary of
the proposed action.
(c) On the date and at the time and place designated in the
notice, the Board shall afford any interested person or his or her
authorized representative, or both, the opportunity to present
statements, arguments or contentions in writing, with or without
opportunity to present them orally. The Board shall consider all
relevant matter presented to it before adopting, amending or
repealing any regulation.
(d) Any interested person may file a petition with the Board
requesting the adoption, amendment or repeal of a regulation. The
petition must state, clearly and concisely:
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(1) The substance or nature of the regulation, amendment or
repeal requested;
(2) The reasons for the request; and
(3) Reference to the authority of the Board to take the action
requested.
Upon receipt of the petition, the Board shall within 45 days deny
the request in writing or schedule the matter for action pursuant to
this subsection.
2. In emergencies, the Board may summarily adopt, amend or
repeal any regulation if:
(a) The Board submits to the Governor:
(1) A written finding that such action is necessary for the
immediate preservation of the public peace, health, safety, morals,
good order or general welfare; and
(2) A written statement of the facts constituting an
emergency;
(b) The Governor endorses the written finding and written
statement described in paragraph (a) by written endorsement at the
end of the full text of the written statement and written finding; and
(c) The Board files the written statement and written finding
endorsed by the Governor at the same time it adopts, amends or
repeals the regulation.
3. In any hearing held pursuant to this section, the Board or its
authorized representative may administer oaths or affirmations, and
may continue or postpone the hearing from time to time and at such
places as it prescribes.
4. The Board shall file a copy of any regulation adopted,
amended or repealed by the Board with the Legislative Counsel as
soon as practicable after adoption, amendment or repeal. The
adoption, amendment or repeal of a regulation by the Board
becomes effective upon filing with the Secretary of State. The Board
shall not file a regulation with the Secretary of State until 15 days
after the date on which the regulation was adopted, amended or
repealed by the Board.
5. Upon the request of a Legislator, the Legislative
Commission may examine a regulation adopted, amended or
repealed by the Board that is not yet effective pursuant to subsection
4 to determine whether the regulation conforms to the statutory
authority pursuant to which it was adopted and whether the
regulation carries out the intent of the Legislature in granting that
authority.
6. Except as otherwise provided in subsection 7, the
Legislative Commission shall:
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(a) Review the regulation at its next regularly scheduled meeting
if the request for examination of the regulation is received more than
10 working days before the meeting; or
(b) Refer the regulation for review to the Subcommittee to
Review Regulations appointed pursuant to subsection 6 of
NRS 233B.067.
7. If the Board determines that an emergency exists which
requires a regulation of the Board for which a Legislator requested
an examination pursuant to subsection 5 to become effective before
the next meeting of the Legislative Commission is scheduled to be
held, the Board may notify the Legislative Counsel in writing of the
emergency. Upon receipt of such a notice, the Legislative Counsel
shall refer the regulation for review by the Subcommittee to Review
Regulations as soon as practicable.
8. If the Legislative Commission, or the Subcommittee to
Review Regulations if the regulation was referred to the
Subcommittee, approves the regulation, the Legislative Counsel
shall notify the Board that the Board may file the regulation with the
Secretary of State. If the Commission or the Subcommittee objects
to the regulation after determining that:
(a) The regulation does not conform to statutory authority; or
(b) The regulation does not carry out legislative intent,
the Legislative Counsel shall attach to the regulation a written
notice of the objection, including, if practicable, a statement of the
reasons for the objection, and shall promptly return the regulation to
the Board.
9. If the Legislative Commission or the Subcommittee to
Review Regulations has objected to a regulation, the Board shall
revise the regulation to conform to the statutory authority pursuant
to which it was adopted and to carry out the intent of the Legislature
in granting that authority and return it to the Legislative Counsel
within 60 days after the Board received the written notice of the
objection to the regulation pursuant to subsection 8. Upon receipt of
the revised regulation, the Legislative Counsel shall resubmit the
regulation to the Legislative Commission or the Subcommittee for
review. If the Legislative Commission or the Subcommittee
approves the revised regulation, the Legislative Counsel shall notify
the Board that the Board may file the revised regulation with the
Secretary of State.
10. If the Legislative Commission or the Subcommittee to
Review Regulations objects to the revised regulation, the Legislative
Counsel shall attach to the revised regulation a written notice of
the objection, including, if practicable, a statement of the reasons for
the objection, and shall promptly return the revised regulation to the
Board. The Board shall continue to revise the regulation and
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resubmit it to the Legislative Commission or the Subcommittee
within 30 days after the Board receives a written notice of the
objection to the revised regulation.
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