(Reprinted with amendments adopted on May 25, 2023)
SECOND REPRINT S.B. 328
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SENATE BILL NO. 328–SENATORS TITUS AND NGUYEN
MARCH 20, 2023
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes relating to the Cannabis
Compliance Board. (BDR 56-519)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to cannabis; revising provisions relating to the
appointment of members of the Cannabis Compliance
Board; revising the qualifications and terms of office of
members of the Board; authorizing the Governor to
appoint and remove the Executive Director of the Board;
revising the powers of the Board; authorizing the Board to
adopt certain regulations; requiring 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; eliminating the
exemption of the Board from the provisions of the
Nevada Administrative Procedure Act; revising
procedures governing disciplinary proceedings conducted
by the Board; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law sets forth certain legislative findings and declarations concerning 1
the public policy of this State with respect to the cannabis industry. (NRS 2
678A.005) Section 1 of this bill revises those findings and declarations and adds 3
certain findings and declarations relating to illegal and unregulated activities 4
involving cannabis. 5
Existing law sets forth the general powers of the Cannabis Compliance Board. 6
(NRS 678A.440) Section 1.6 of this bill authorizes the Board to: (1) seize and 7
destroy cannabis and cannabis products involved in unlicensed cannabis activities 8
in accordance with the procedures applicable to other property subject to forfeiture; 9
and (2) commit resources and take certain actions relating to unlicensed cannabis 10
activities. 11
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Existing law sets forth the composition of the Board. (NRS 678A.360) Existing 12
law requires the Governor to appoint the members of the Board and designate one 13
member to serve as Chair. (NRS 678A.370) Section 1.3 of this bill revises certain 14
requirements and qualifications of the members of the Board. Sections 1.3, 4.3 and 15
4.6 of this bill exempt one member of the Board who is required to be selected 16
based on his or her knowledge, skill and experience in the cannabis industry from 17
certain restrictions imposed on former public officers or employees. Section 1.4 of 18
this bill revises provisions concerning the appointment of members of the Board. 19
Section 1.4 requires the Governor to designate one member of the Board to serve as 20
Vice Chair and requires each member, before entering upon the duties of office, to 21
receive training that is the same or substantially similar to that which is required of 22
a cannabis establishment agent. 23
Section 5.4 of this bill provides for staggered terms of the five members of the 24
Board by: (1) providing that the terms of office of three members of the Board 25
serving on June 30, 2024, expire on that date and requiring new members be 26
appointed for a term of 4 years commencing July 1, 2024; and (2) providing that 27
the terms of office of the remaining two members of the Board serving as of 28
June 30, 2025, expire on that date and requiring new members be appointed for a 29
term of 4 years commencing July 1, 2025. 30
Existing law requires the Board to appoint, and authorizes the Board to remove, 31
the Executive Director of the Board. (NRS 678A.420) Section 1.5 of this bill 32
transfers that authority to the Governor and requires the Governor to consider the 33
skill and experience of a potential Executive Director in regulated industries when 34
making the appointment. 35
Existing law authorizes the Board to adopt regulations necessary and 36
convenient to carry out certain provisions of law relating to the regulation of 37
cannabis. (NRS 678A.450) Section 1.7 of this bill provides that if the Board adopts 38
regulations establishing certain mechanisms to ensure compliance with those 39
provisions of law, the mechanisms must: (1) include certain education and training 40
for employees of the Board and certain information to aid licensees and registrants 41
in compliance; and (2) establish certain grounds for disciplinary action against a 42
licensee or registrant. Section 1.7 also authorizes the Board to adopt certain 43
regulations governing cannabis establishments which are publicly traded 44
companies. Finally, section 1.7 requires the Board to adopt regulations providing 45
for the investigation of unlicensed cannabis activities and the imposition of 46
penalties against persons who engage in such activities. Section 5.3 of this bill 47
makes a conforming change to account for the placement of new language in 48
section 1.7. 49
Existing law sets forth the Nevada Administrative Procedure Act, which 50
establishes the procedures for state agencies to adopt, amend or repeal 51
administrative regulations and adjudicate contested cases. (Chapter 233B of NRS) 52
Existing law exempts the Board from the provisions of the Act. (NRS 233B.039) 53
Existing law instead sets forth specific procedures for the Board to: (1) adopt, 54
amend or repeal regulations; and (2) take disciplinary action against a person who 55
holds a license or registration card issued by the Board. (NRS 678A.460, 56
678A.500-678A.640) Section 5 of this bill eliminates the exemption of the Board 57
from the provisions of the Act, thereby requiring the Board to adopt, amend and 58
repeal regulations and adjudicate contested cases in the same manner as other state 59
agencies subject to the provisions of the Act. Section 6 of this bill repeals the 60
specific procedures for the Board to adopt, amend or repeal regulations set forth 61
under existing law. Sections 1.9-3 of this bill revise the procedures for the Board to 62
take disciplinary action to conform with the procedures for the adjudication of 63
contested cases set forth in the Act. 64
Existing law sets forth procedures by which a person aggrieved by a final 65
decision of the Board in a disciplinary proceeding may obtain judicial review of the 66
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decision. (NRS 678A.610-678A.640) Section 6 eliminates those procedures. 67
Section 4 of this bill instead authorizes a person aggrieved by a final decision of the 68
Board in a disciplinary proceeding to obtain judicial review of the decision in the 69
manner provided in the Act. 70
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 678A.005 is hereby amended to read as 1
follows: 2
678A.005 The Legislature hereby finds, and declares to be the 3
public policy of this State, that: 4
1. The cannabis industry is [beneficial] significant to the 5
economy of the State [and the general welfare of its residents.] of 6
Nevada. 7
2. A regulated cannabis industry provides access to legal 8
cannabis and cannabis products in a safe manner. Cannabis and 9
cannabis products obtained from illegal sources are not tested, 10
may be associated with violent crime and are often targeted at 11
minors. 12
3. The continued growth and success of the cannabis industry 13
is dependent upon public confidence and trust and an 14
understanding that: 15
(a) Residents who suffer from chronic or debilitating medical 16
conditions will be able to obtain medical cannabis safely and 17
conveniently; 18
(b) Residents who choose to engage in the adult use of cannabis 19
may also obtain adult-use cannabis in a safe and efficient manner; 20
(c) Cannabis establishments do not unduly impact the quality of 21
life enjoyed by residents of the surrounding neighborhoods; 22
(d) Cannabis licenses and registration cards are issued in a fair 23
and equitable manner [;] with a commitment to the consideration of 24
social equity; 25
(e) The holders of cannabis licenses and registration cards are 26
representative of their communities; [and] 27
(f) [The] Nevada seeks to emulate other privileged industries 28
that are licensed and strictly regulated insofar as those industries 29
are similar to or the approaches used in those industries are 30
compatible with the cannabis industry in this State; and 31
(g) A well regulated cannabis industry [is free from] provides 32
significant tax revenues to the State and runs contrary to the 33
criminal and corruptive elements [.] that exist in an unregulated 34
and illegal market. 35
[3.] 4. Public confidence and trust can only be maintained by 36
strict but fair and equitable regulation of all persons, locations, 37
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practices, associations and activities related to the operation of 1
cannabis establishments. 2
[4.] 5. All cannabis establishments and cannabis establishment 3
agents must [therefore] be licensed, controlled and assisted to 4
protect the public health, safety, morals, good order and general 5
welfare of the inhabitants of the State, to foster the stability and 6
success of the cannabis industry and to preserve the competitive 7
economy and policies of free competition of the State of Nevada. 8
Sec. 1.3. NRS 678A.360 is hereby amended to read as 9
follows: 10
678A.360 1. Each member of the Board must be a resident of 11
the State of Nevada. 12
2. No member of the Legislature, no person holding any 13
elective office in the State Government, nor any officer or official of 14
any political party is eligible for appointment to the Board. 15
3. Not more than three of the five members of the Board may 16
be of the same political party. 17
4. It is the intention of the Legislature that the Board be 18
composed of the most qualified persons available. 19
5. One member of the Board must [: 20
(a) Be a certified public accountant certified or licensed by this 21
State or another state of the United States or a public accountant 22
qualified to practice public accounting under the provisions of 23
chapter 628 of NRS, have 5 years of progressively responsible 24
experience in general accounting and have a comprehensive 25
knowledge of the principles and practices of corporate finance; or 26
(b) Possess] possess the qualifications of an expert in the fields 27
of corporate finance and auditing, inventory, general finance or 28
economics [.] and be selected with special reference to his or her 29
knowledge, skill and experience in representing businesses 30
engaging in manufacturing, distribution, retail or agriculture. 31
6. One member of the Board must be selected with special 32
reference to his or her training and experience in the fields of 33
investigation or law enforcement [.] , including, without limitation, 34
in the area of illegal or unlicensed cannabis activities. 35
7. One member of the Board must be an attorney licensed to 36
practice in this State and selected with special reference to his or her 37
knowledge, skill and experience in representing businesses in 38
licensing matters or regulatory compliance. 39
8. One member of the Board must be selected with special 40
reference to his or her knowledge, skill and experience in the 41
cannabis industry. The person selected pursuant to this subsection 42
is not subject to paragraph (b) of subsection 1 of NRS 281A.410 or 43
subsection 3 of NRS 281A.550. 44
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9. One member of the Board must be a physician licensed 1
pursuant to chapter 630 or 633 of NRS and have knowledge, skill 2
and experience in the area of public health or be a psychologist, 3
clinical professional counselor, alcohol and drug counselor , [or] 4
social worker or a person with expertise in laboratory sciences and 5
must be selected with special reference to his or her knowledge, 6
skill and experience in the area of [education and prevention of 7
abuse relating to] cannabis. 8
10. In addition to any other requirements imposed by this 9
section, the member who is designated as Chair of the Board must 10
have at least 5 years of leadership experience in his or her field. 11
Sec. 1.4. NRS 678A.370 is hereby amended to read as 12
follows: 13
678A.370 1. [The term of office of each member of the 14
Board is 4 years, commencing on the last Monday in January. 15
2.] The Governor shall appoint the members of the Board and 16
designate one member to serve as Chair, who shall preside over all 17
official activities of the Board [.] , and one member as Vice Chair, 18
who shall perform duties established by the Board. 19
2. The term of the Chair is 2 years. Upon expiration of the 20
term of the Chair, if the Governor has not designated the member 21
to serve as Chair for another term or designated another member 22
to serve as Chair, the Vice Chair becomes the Chair. 23
3. In appointing members to the Board, the Governor shall 24
consider whether the members appointed to the Board reflect the 25
ethnic and geographical diversity of this State. 26
4. Each member of the Board serves a term of 4 years. 27
[3.] 5. The Governor may remove any member for neglect of 28
duty, misfeasance, malfeasance or nonfeasance in office. Removal 29
may be made after: 30
(a) The member has been served with a copy of the charges 31
against the member; and 32
(b) A public hearing before the Governor is held upon the 33
charges, if requested by the member charged. 34
The request for a public hearing must be made within 10 days 35
after service upon such member of the charges. If a hearing is not 36
requested, a member is removed effective 10 days after service of 37
charges upon the member. A record of the proceedings at the public 38
hearing must be filed with the Secretary of State. 39
6. Before entering upon the duties of office, each person 40
appointed to the Board must receive training that is the same or 41
substantially similar to any training that is required by the Board 42
by regulation to be completed by a cannabis establishment agent 43
before he or she may be employed by, volunteer at or provide labor 44
to a cannabis establishment. 45
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Sec. 1.5. NRS 678A.420 is hereby amended to read as 1
follows: 2
678A.420 1. The position of Executive Director of the 3
Cannabis Compliance Board is hereby created. 4
2. The Executive Director: 5
(a) Is appointed by the [Board] Governor, with consideration 6
given to the skill or experience of the appointee in regulated 7
industries, and may be removed by the [Board;] Governor; 8
(b) Is responsible for the conduct of the administrative matters 9
of the Board; and 10
(c) Shall, except as otherwise provided in NRS 284.143, devote 11
his or her entire time and attention to the business of the office of 12
Executive Director and shall not pursue any other business or 13
occupation or hold any other office for profit. 14
3. The Executive Director is entitled to an annual salary in the 15
amount specified by the Board within the limits of legislative 16
appropriations or authorizations. 17
Sec. 1.6. NRS 678A.440 is hereby amended to read as 18
follows: 19
678A.440 In addition to any other powers granted by this title, 20
the Board has the power to: 21
1. Enter into interlocal agreements pursuant to NRS 277.080 to 22
277.180, inclusive. 23
2. Establish and amend a plan of organization for the Board, 24
including, without limitation, organizations of divisions or sections 25
with leaders for such divisions or sections. 26
3. Appear on its own behalf before governmental agencies of 27
the State or any of its political subdivisions. 28
4. Apply for and accept any gift, donation, bequest, grant or 29
other source of money to carry out the provisions of this title. 30
5. Execute all instruments necessary or convenient for carrying 31
out the provisions of this title. 32
6. Prepare, publish and distribute such studies, reports, 33
bulletins and other materials as the Board deems appropriate. 34
7. Refer cases to the Attorney General for criminal prosecution. 35
8. Maintain an official Internet website for the Board. 36
9. Monitor federal activity regarding cannabis and report its 37
findings to the Legislature. 38
10. Employ the services of such persons the Board considers 39
necessary for the purposes of hearing disciplinary proceedings. 40
11. In accordance with NRS 179.1156 to 179.121, inclusive, 41
seize and destroy cannabis and cannabis products involved in 42
unlicensed cannabis activities. 43
12. Commit resources and take action to address unlicensed 44
cannabis activities, including, without limitation: 45
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(a) Investigating and referring matters involving unlicensed 1
cannabis activities to the appropriate state or local law 2
enforcement agency, including, without limitation, the 3
Investigation Division of the Department of Public Safety and the 4
Attorney General, for further investigation and possible criminal 5
prosecution; 6
(b) Educating the public through various types of media and 7
communication and other forms of public outreach on the dangers 8
and illegality of unlicensed cannabis activities and the importance 9
of having cannabis establishments which are licensed and 10
regulated; 11
(c) Creating a system through which the public, licensees and 12
registrants may file confidential reports of unlicensed cannabis 13
activities; and 14
(d) Imposing penalties against persons who engage in 15
unlicensed cannabis activities in accordance with the regulations 16
adopted by the Board pursuant to NRS 678A.450. 17
Sec. 1.7. NRS 678A.450 is hereby amended to read as 18
follows: 19
678A.450 1. The Board may adopt regulations necessary or 20
convenient to carry out the provisions of this title. Such regulations 21
may include, without limitation: 22
(a) Financial requirements for licensees. 23
(b) Establishing such education, outreach, investigative and 24
enforcement mechanisms as the Board deems necessary to ensure 25
the compliance of a licensee or registrant with the provisions of this 26
title. Such mechanisms must include, without limitation: 27
(1) A system to educate, train and certify employees of the 28
Board which: 29
(I) Each member must complete before he or she may 30
engage in inspections, investigations or audits; and 31
(II) At a minimum, includes training that is the same or 32
substantially similar to any training that is required by the Board 33
by regulation to be completed by a cannabis establishment agent 34
before he or she may be employed by, volunteer at or provide labor 35
to a cannabis establishment; 36
(2) A system to educate and advise licensees and registrants 37
on compliance with the provisions of this title which may serve as 38
an alternative to disciplinary action; and 39
(3) Establishing specific grounds for disciplinary action 40
against a licensee or registrant who knowingly violates the law or 41
engages in grossly negligent, unlawful or criminal conduct or an 42
act or omission that poses an imminent threat to the health or 43
safety of the public. 44
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(c) Requirements for licensees or registrants relating to the 1
cultivation, processing, manufacture, transport, distribution, testing, 2
study, advertising and sale of cannabis and cannabis products. 3
(d) Policies and procedures to ensure that the cannabis industry 4
in this State is economically competitive, inclusive of racial 5
minorities, women and persons and communities that have been 6
adversely affected by cannabis prohibition and accessible to persons 7
of low-income seeking to start a business. 8
(e) Policies and procedures governing the circumstances under 9
which the Board may waive the requirement to obtain a registration 10
card pursuant to this title for any person who holds an ownership 11
interest of less than 5 percent in any one cannabis establishment or 12
an ownership interest in more than one cannabis establishment of 13
the same type that, when added together, is less than 5 percent. 14
(f) Policies and procedures relating to the disclosure of the 15
identities of the shareholders and the annual report of a cannabis 16
establishment that is a publicly traded company. 17
(g) Reasonable restrictions on the signage, marketing, display 18
and advertising of cannabis establishments. Such a restriction must 19
not require a cannabis establishment to obtain the approval of the 20
Board before using a logo, sign or advertisement. 21
[(g)] (h) Provisions governing the sales of products and 22
commodities made from hemp, as defined in NRS 557.160, or 23
containing cannabidiol by cannabis establishments. 24
[(h)] (i) Requirements relating to the packaging and labeling of 25
cannabis and cannabis products. 26
2. The Board shall adopt regulations providing for the 27
gathering and maintenance of comprehensive demographic 28
information, including, without limitation, information regarding 29
race, ethnicity, age and gender, concerning each: 30
(a) Owner and manager of a cannabis establishment. 31
(b) Holder of a cannabis establishment agent registration card. 32
3. The Board shall adopt regulations providing for the 33
investigation of unlicensed cannabis activities and the imposition 34
of penalties against persons who engage in such activities. Such 35
regulations must, without limitation: 36
(a) Establish penalties to be imposed for unlicensed cannabis 37
activities, which may include, without limitation, the issuance of a 38
cease and desist order or citation, the imposition of an 39
administrative fine or civil penalty and other similar penalties. 40
(b) Set forth the procedures by which the Board may impose a 41
penalty against a person for engaging in unlicensed cannabis 42
activities. 43
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(c) Set forth the circumstances under which the Board is 1
required to refer matters concerning unlicensed cannabis 2
activities to an appropriate state or local law enforcement agency. 3
4. The Board shall transmit the information gathered and 4
maintained pursuant to subsection 2 to the Director of the 5
Legislative Counsel Bureau for transmission to the Legislature on or 6
before January 1 of each odd-numbered year. 7
[4.] 5. The Board shall, by regulation, establish a pilot 8
program for identifying opportunities for an emerging small 9
cannabis business to participate in the cannabis industry. As used in 10
this subsection, “emerging small cannabis business” means a 11
cannabis-related business that: 12
(a) Is in existence, operational and operated for a profit; 13
(b) Maintains its principal place of business in this State; and 14
(c) Satisfies requirements for the number of employees and 15
annual gross revenue established by the Board by regulation. 16
Sec. 1.9. NRS 678A.510 is hereby amended to read as 17
follows: 18
678A.510 1. If the Executive Director transmits the details of 19
a suspected violation to the Attorney General pursuant to NRS 20
678A.500, the Attorney General shall conduct an investigation of 21
the suspected violation to determine whether it warrants proceedings 22
for disciplinary action of the licensee or registrant. If the Attorney 23
General determines that further proceedings are warranted, he or she 24
shall report the results of the investigation together with a 25
recommendation to the Executive Director in a manner which does 26
not violate the right of the person charged in the complaint to due 27
process in any later hearing on the complaint. The Executive 28
Director shall transmit the recommendation and other information 29
received from the Attorney General to the Board. 30
2. The Board shall promptly make a determination with respect 31
to each complaint resulting in an investigation by the Attorney 32
General. The Board shall: 33
(a) Dismiss the complaint; or 34
(b) Proceed with appropriate disciplinary action in accordance 35
with NRS 678A.520 to 678A.600, inclusive, chapter 233B of NRS 36
and the regulations adopted by the Board. 37
Sec. 2. NRS 678A.540 is hereby amended to read as follows: 38
678A.540 1. At all hearings before the Board: 39
(a) Oral evidence may be taken only upon oath or affirmation 40
administered by the Board. 41
(b) Every party has the right to: 42
(1) Call and examine witnesses; 43
(2) Introduce exhibits relevant to the issues of the case; 44
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(3) Cross-examine opposing witnesses on any matters 1
relevant to the issues of the case, even though the matter was not 2
covered in a direct examination; 3
(4) Impeach any witness regardless of which party first 4
called the witness to testify; and 5
(5) Offer rebuttal evidence. 6
(c) If the respondent does not testify in his or her own behalf, 7
the respondent may be called and examined as if under 8
cross-examination. 9
(d) The hearing need not be conducted according to technical 10
rules relating to evidence and witnesses [.] , except that those 11
prescribed in NRS 233B.123 apply. Any relevant evidence that is 12
not immaterial or unduly repetitious may be admitted and is 13
sufficient in itself to support a finding if it is the sort of evidence on 14
which responsible persons are accustomed to rely in the conduct of 15
serious affairs, regardless of the existence of any common law or 16
statutory rule which might make improper the admission of such 17
evidence over objection in a civil action. 18
(e) The parties or their counsel may by written stipulation agree 19
that certain specified evidence may be admitted even though such 20
evidence might otherwise be subject to objection. 21
2. The Board may take official notice of any generally accepted 22
information or technical or scientific matter within the field of 23
cannabis, and of any other fact which may be judicially noticed by 24
the courts of this State. The parties must be informed of any 25
information, matters or facts so noticed, and must be given a 26
reasonable opportunity, on request, to refute such information, 27
matters or facts by evidence or by written or oral presentation of 28
authorities, the manner of such refutation to be determined by the 29
Board. 30
3. Affidavits may be received in evidence at any hearing of the 31
Board in accordance with the following: 32
(a) The party wishing to use an affidavit must, not less than 10 33
days before the day set for hearing, serve upon the opposing party or 34
counsel, either personally or by registered or certified mail, a copy 35
of the affidavit which the party proposes to introduce in evidence 36
together with a notice as provided in paragraph (c). 37
(b) Unless the opposing party, within 7 days after such service, 38
mails or delivers to the proponent a request to cross-examine the 39
affiant, the opposing party’s right to cross-examine the affiant is 40
waived and the affidavit, if introduced in evidence, must be given 41
the same effect as if the affiant had testified orally. If an opportunity 42
to cross-examine an affiant is not afforded after request therefor is 43
made in accordance with this paragraph, the affidavit may be 44
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introduced in evidence, but must be given only the same effect as 1
other hearsay evidence. 2
(c) The notice referred to in paragraph (a) must be substantially 3
in the following form: 4
5
The accompanying affidavit of (here insert name of 6
affiant) will be introduced as evidence at the hearing set for 7
the ........ day of the month of ………. of the year …… (Here 8
insert name of affiant) will not be called to testify orally and 9
you will not be entitled to question (here insert name of 10
affiant) unless you notify the undersigned that you wish to 11
cross-examine (here insert name of affiant). To be effective 12
your request must be mailed or delivered to the undersigned 13
on or before 7 days from the date this notice and the enclosed 14
affidavit are served upon you. 15
16
.................................................. 17
(Party or Counsel) 18
.................................................. 19
(Address) 20
Sec. 3. NRS 678A.590 is hereby amended to read as follows: 21
678A.590 1. Within 60 days after the hearing of a contested 22
matter, the Board shall render a written decision on the merits . 23
[which] Except as otherwise provided in subsection 5 of NRS 24
233B.121, the written decision must contain findings of fact [,] and 25
conclusions of law which are separately stated, a determination of 26
the issues presented and the penalty to be imposed, if any. The 27
Board shall thereafter make and enter its written order in conformity 28
to its decision. No member of the Board who did not hear the 29
evidence may vote on the decision. The affirmative votes of a 30
majority of the whole Board are required to impose any penalty. 31
Copies of the decision and order must be served on the parties 32
personally or sent to them by registered or certified mail. The 33
decision is effective upon such service, unless the Board orders 34
otherwise. 35
2. The Board may, upon motion made within [10] 15 days after 36
service of a decision and order, order a rehearing before the Board 37
upon such terms and conditions as it may deem just and proper if a 38
petition for judicial review of the decision and order has not been 39
filed. The motion must not be granted except upon a showing that 40
there is additional evidence which is material and necessary and 41
reasonably calculated to change the decision of the Board, and that 42
sufficient reason existed for failure to present the evidence at the 43
hearing of the Board. The motion must be supported by an affidavit 44
of the moving party or his or her counsel showing with particularity 45
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the materiality and necessity of the additional evidence and the 1
reason why it was not introduced at the hearing. Upon rehearing, 2
rebuttal evidence to the additional evidence must be permitted. After 3
rehearing, the Board may modify its decision and order as the 4
additional evidence may warrant. 5
Sec. 4. NRS 678A.610 is hereby amended to read as follows: 6
678A.610 [1.] Any person aggrieved by a final decision or 7
order of the Board made after hearing or rehearing by the Board 8
pursuant to NRS 678A.520 to 678A.600, inclusive, and whether or 9
not a motion for rehearing was filed, [may obtain a] is entitled to 10
judicial review [thereof in the district court of the county in which 11
the petitioner resides or has his, her or its principal place of 12
business. 13
2. The judicial review must be instituted by filing a petition 14
within 20 days after the effective date of the final decision or order. 15
A petition may not be filed while a motion for rehearing or a 16
rehearing is pending before the Board. The petition must set forth 17
the order or decision appealed from and the grounds or reasons why 18
petitioner contends a reversal or modification should be ordered. 19
3. Copies of the petition must be served upon the Board and all 20
other parties of record, or their counsel of record, either personally 21
or by certified mail. 22
4. The court, upon a proper showing, may permit other 23
interested persons to intervene as parties to the appeal or as friends 24
of the court. 25
5. The filing of the petition does not stay enforcement of the 26
decision or order of the Board, but the Board itself may grant a stay 27
upon such terms and conditions as it deems proper.] of the decision 28
or order in the manner provided by chapter 233B of NRS. 29
Sec. 4.3. NRS 281A.410 is hereby amended to read as 30
follows: 31
281A.410 In addition to the requirements of the code of ethical 32
standards and the other provisions of this chapter: 33
1. [If] Except as otherwise provided in NRS 678A.360, a 34
public officer or employee serves in a state agency of the Executive 35
Department or an agency of any county, city or other political 36
subdivision, the public officer or employee: 37
(a) Shall not accept compensation from any private person to 38
represent or counsel the private person on any issue pending before 39
the agency in which that public officer or employee serves, if the 40
agency makes decisions; and 41
(b) If the public officer or employee leaves the service of the 42
agency, shall not, for 1 year after leaving the service of the agency, 43
represent or counsel for compensation a private person upon any 44
issue which was under consideration by the agency during the 45
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public officer’s or employee’s service. As used in this paragraph, 1
“issue” includes a case, proceeding, application, contract or 2
determination, but does not include the proposal or consideration of 3
legislative measures or administrative regulations. 4
2. Except as otherwise provided in subsection 3, a State 5
Legislator or a member of a local legislative body, or a public 6
officer or employee whose public service requires less than half of 7
his or her time, may represent or counsel a private person before an 8
agency in which he or she does not serve. 9
3. A member of a local legislative body shall not represent or 10
counsel a private person for compensation before another local 11
agency if the territorial jurisdiction of the other local agency 12
includes any part of the county in which the member serves. The 13
Commission may relieve the member from the strict application of 14
the provisions of this subsection if: 15
(a) The member files a request for an advisory opinion from the 16
Commission pursuant to NRS 281A.675; and 17
(b) The Commission determines that such relief is not contrary 18
to: 19
(1) The best interests of the public; 20
(2) The continued ethical integrity of each local agency 21
affected by the matter; and 22
(3) The provisions of this chapter. 23
4. For the purposes of subsection 3, the request for an advisory 24
opinion, the advisory opinion and all meetings, hearings and 25
proceedings of the Commission in such a matter are governed by the 26
provisions of NRS 281A.670 to 281A.690, inclusive. 27
5. Unless permitted by this section, a public officer or 28
employee shall not represent or counsel a private person for 29
compensation before any state agency of the Executive or 30
Legislative Department. 31
Sec. 4.6. NRS 281A.550 is hereby amended to read as 32
follows: 33
281A.550 1. A former member of the Public Utilities 34
Commission of Nevada shall not: 35
(a) Be employed by a public utility or parent organization or 36
subsidiary of a public utility; or 37
(b) Appear before the Public Utilities Commission of Nevada to 38
testify on behalf of a public utility or parent organization or 39
subsidiary of a public utility, 40
for 1 year after the termination of the member’s service on the 41
Public Utilities Commission of Nevada. 42
2. A former member of the Nevada Gaming Control Board or 43
the Nevada Gaming Commission shall not: 44
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(a) Appear before the Nevada Gaming Control Board or the 1
Nevada Gaming Commission on behalf of a person who holds a 2
license issued pursuant to chapter 463 or 464 of NRS or who is 3
required to register with the Nevada Gaming Commission pursuant 4
to chapter 463 of NRS; or 5
(b) Be employed by such a person, 6
for 1 year after the termination of the member’s service on the 7
Nevada Gaming Control Board or the Nevada Gaming Commission. 8
3. In addition to the prohibitions set forth in subsections 1 and 9
2, and except as otherwise provided in subsections 4 and 6 [,] and 10
NRS 678A.360, a former public officer or employee of a board, 11
commission, department, division or other agency of the Executive 12
Department of State Government, except a clerical employee, shall 13
not solicit or accept employment from a business or industry whose 14
activities are governed by regulations adopted by the board, 15
commission, department, division or other agency for 1 year after 16
the termination of the former public officer’s or employee’s service 17
or period of employment if: 18
(a) The former public officer’s or employee’s principal duties 19
included the formulation of policy contained in the regulations 20
governing the business or industry; 21
(b) During the immediately preceding year, the former public 22
officer or employee directly performed activities, or controlled or 23
influenced an audit, decision, investigation or other action, which 24
significantly affected the business or industry which might, but for 25
this section, employ the former public officer or employee; or 26
(c) As a result of the former public officer’s or employee’s 27
governmental service or employment, the former public officer or 28
employee possesses knowledge of the trade secrets of a direct 29
business competitor. 30
4. The provisions of subsection 3 do not apply to a former 31
public officer who was a member of a board, commission or similar 32
body of the State if: 33
(a) The former public officer is engaged in the profession, 34
occupation or business regulated by the board, commission or 35
similar body; 36
(b) The former public officer holds a license issued by the 37
board, commission or similar body; and 38
(c) Holding a license issued by the board, commission or similar 39
body is a requirement for membership on the board, commission or 40
similar body. 41
5. Except as otherwise provided in subsection 6, a former 42
public officer or employee of the State or a political subdivision, 43
except a clerical employee, shall not solicit or accept employment 44
from a person to whom a contract for supplies, materials, equipment 45
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or services was awarded by the State or political subdivision, as 1
applicable, for 1 year after the termination of the officer’s or 2
employee’s service or period of employment, if: 3
(a) The amount of the contract exceeded $25,000; 4
(b) The contract was awarded within the 12-month period 5
immediately preceding the termination of the officer’s or 6
employee’s service or period of employment; and 7
(c) The position held by the former public officer or employee at 8
the time the contract was awarded allowed the former public officer 9
or employee to affect or influence the awarding of the contract. 10
6. A current or former public officer or employee may file a 11
request for an advisory opinion pursuant to NRS 281A.675 12
concerning the application of the relevant facts in that person’s case 13
to the provisions of subsection 3 or 5, as applicable, and determine 14
whether relief from the strict application of those provisions is 15
proper. If the Commission determines that relief from the strict 16
application of the provisions of subsection 3 or 5, as applicable, is 17
not contrary to: 18
(a) The best interests of the public; 19
(b) The continued ethical integrity of the State Government or 20
political subdivision, as applicable; and 21
(c) The provisions of this chapter, 22
it may issue an advisory opinion to that effect and grant such 23
relief. 24
7. For the purposes of subsection 6, the request for an advisory 25
opinion, the advisory opinion and all meetings, hearings and 26
proceedings of the Commission in such a matter are governed by the 27
provisions of NRS 281A.670 to 281A.690, inclusive. 28
8. The advisory opinion does not relieve the current or former 29
public officer or employee from the strict application of any 30
provision of NRS 281A.410. 31
9. For the purposes of this section: 32
(a) A former member of the Public Utilities Commission of 33
Nevada, the Nevada Gaming Control Board or the Nevada Gaming 34
Commission; or 35
(b) Any other former public officer or employee governed by 36
this section, 37
is employed by or is soliciting or accepting employment from a 38
business, industry or other person described in this section if any 39
oral or written agreement is sought, negotiated or exists during 40
the restricted period pursuant to which the personal services of the 41
public officer or employee are provided or will be provided to the 42
business, industry or other person, even if such an agreement does 43
not or will not become effective until after the restricted period. 44
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10. As used in this section, “regulation” has the meaning 1
ascribed to it in NRS 233B.038 and also includes regulations 2
adopted by a board, commission, department, division or other 3
agency of the Executive Department of State Government that is 4
exempted from the requirements of chapter 233B of NRS. 5
Sec. 5. NRS 233B.039 is hereby amended to read as follows: 6
233B.039 1. The following agencies are entirely exempted 7
from the requirements of this chapter: 8
(a) The Governor. 9
(b) Except as otherwise provided in NRS 209.221 and 209.2473, 10
the Department of Corrections. 11
(c) The Nevada System of Higher Education. 12
(d) The Office of the Military. 13
(e) The Nevada Gaming Control Board. 14
(f) Except as otherwise provided in NRS 368A.140 and 463.765, 15
the Nevada Gaming Commission. 16
(g) Except as otherwise provided in NRS 425.620, the Division 17
of Welfare and Supportive Services of the Department of Health and 18
Human Services. 19
(h) Except as otherwise provided in NRS 422.390, the Division 20
of Health Care Financing and Policy of the Department of Health 21
and Human Services. 22
(i) Except as otherwise provided in NRS 533.365, the Office of 23
the State Engineer. 24
(j) The Division of Industrial Relations of the Department of 25
Business and Industry acting to enforce the provisions of 26
NRS 618.375. 27
(k) The Administrator of the Division of Industrial Relations of 28
the Department of Business and Industry in establishing and 29
adjusting the schedule of fees and charges for accident benefits 30
pursuant to subsection 2 of NRS 616C.260. 31
(l) The Board to Review Claims in adopting resolutions to carry 32
out its duties pursuant to NRS 445C.310. 33
(m) The Silver State Health Insurance Exchange. 34
[(n) The Cannabis Compliance Board.] 35
2. Except as otherwise provided in subsection 5 and NRS 36
391.323, the Department of Education, the Board of the Public 37
Employees’ Benefits Program and the Commission on Professional 38
Standards in Education are subject to the provisions of this chapter 39
for the purpose of adopting regulations but not with respect to any 40
contested case. 41
3. The special provisions of: 42
(a) Chapter 612 of NRS for the adoption of an emergency 43
regulation or the distribution of regulations by and the judicial 44
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review of decisions of the Employment Security Division of the 1
Department of Employment, Training and Rehabilitation; 2
(b) Chapters 616A to 617, inclusive, of NRS for the 3
determination of contested claims; 4
(c) Chapter 91 of NRS for the judicial review of decisions of the 5
Administrator of the Securities Division of the Office of the 6
Secretary of State; and 7
(d) NRS 90.800 for the use of summary orders in contested 8
cases, 9
prevail over the general provisions of this chapter. 10
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and 11
233B.126 do not apply to the Department of Health and Human 12
Services in the adjudication of contested cases involving the 13
issuance of letters of approval for health facilities and agencies. 14
5. The provisions of this chapter do not apply to: 15
(a) Any order for immediate action, including, but not limited 16
to, quarantine and the treatment or cleansing of infected or infested 17
animals, objects or premises, made under the authority of the State 18
Board of Agriculture, the State Board of Health, or any other agency 19
of this State in the discharge of a responsibility for the preservation 20
of human or animal health or for insect or pest control; 21
(b) An extraordinary regulation of the State Board of Pharmacy 22
adopted pursuant to NRS 453.2184; 23
(c) A regulation adopted by the State Board of Education 24
pursuant to NRS 388.255 or 394.1694; 25
(d) The judicial review of decisions of the Public Utilities 26
Commission of Nevada; 27
(e) The adoption, amendment or repeal of policies by the 28
Rehabilitation Division of the Department of Employment, Training 29
and Rehabilitation pursuant to NRS 426.561 or 615.178; 30
(f) The adoption or amendment of a rule or regulation to be 31
included in the State Plan for Services for Victims of Crime by the 32
Department of Health and Human Services pursuant to 33
NRS 217.130; 34
(g) The adoption, amendment or repeal of rules governing the 35
conduct of contests and exhibitions of unarmed combat by the 36
Nevada Athletic Commission pursuant to NRS 467.075; 37
(h) The adoption, amendment or repeal of regulations by the 38
Director of the Department of Health and Human Services pursuant 39
to NRS 447.335 to 447.350, inclusive; 40
(i) The adoption, amendment or repeal of standards of content 41
and performance for courses of study in public schools by the 42
Council to Establish Academic Standards for Public Schools and the 43
State Board of Education pursuant to NRS 389.520; 44
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(j) The adoption, amendment or repeal of the statewide plan to 1
allocate money from the Fund for a Resilient Nevada created by 2
NRS 433.732 established by the Department of Health and Human 3
Services pursuant to paragraph (b) of subsection 1 of NRS 433.734; 4
or 5
(k) The adoption or amendment of a data request by the 6
Commissioner of Insurance pursuant to NRS 687B.404. 7
6. The State Board of Parole Commissioners is subject to the 8
provisions of this chapter for the purpose of adopting regulations but 9
not with respect to any contested case. 10
Sec. 5.3. NRS 453.096 is hereby amended to read as follows: 11
453.096 1. “Marijuana” means: 12
(a) All parts of any plant of the genus Cannabis, whether 13
growing or not; 14
(b) The seeds thereof; 15
(c) The resin extracted from any part of the plant, including 16
concentrated cannabis; 17
(d) Every compound, manufacture, salt, derivative, mixture or 18
preparation of the plant, its seeds or resin; 19
(e) Any commodity or product made using hemp which exceeds 20
the maximum THC concentration established by the State 21
Department of Agriculture for hemp; and 22
(f) Any product or commodity made from hemp which is 23
manufactured or sold by a cannabis establishment which violates 24
any regulation adopted by the Cannabis Compliance Board pursuant 25
to paragraph [(g)] (h) of subsection 1 of NRS 678A.450 relating to 26
THC concentration. 27
2. “Marijuana” does not include: 28
(a) Hemp, as defined in NRS 557.160, which is grown or 29
cultivated pursuant to the provisions of chapter 557 of NRS; 30
(b) The mature stalks of the plant, fiber produced from the 31
stalks, oil or cake made from the seeds of the plant, any other 32
compound, manufacture, salt, derivative, mixture or preparation of 33
the mature stalks (except the resin extracted therefrom), fiber, oil or 34
cake, or the sterilized seed of the plant which is incapable of 35
germination; or 36
(c) Any commodity or product made using hemp, as defined in 37
NRS 557.160, which does not exceed the maximum THC 38
concentration established by the State Department of Agriculture for 39
hemp. 40
Sec. 5.4. 1. The terms of the members of the Board 41
described in subsections 5, 6 and 7 of NRS 678A.360, as amended 42
by section 1.3 of this act, who are incumbent on June 30, 2024, 43
expire on that date. On or before July 1, 2024, the Governor shall 44
appoint to the Board the members described in subsections 5, 6 and 45
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7 of NRS 678A.360, as amended by section 1.3 of this act, to terms 1
that commence on July 1, 2024, and expire on June 30, 2028. 2
2. The terms of the members of the Board described in 3
subsections 8 and 9 of NRS 678A.360, as amended by section 1.3 of 4
this act, who are incumbent on June 30, 2025, expire on that date. 5
On or before July 1, 2025, the Governor shall appoint to the Board 6
the members described in subsections 8 and 9 of NRS 678A.360, as 7
amended by section 1.3 of this act, to terms that commence on 8
July 1, 2025, and expire on June 30, 2029. 9
3. Notwithstanding the amendatory provisions of section 1.3 of 10
this act, any appointment of a member to the Board that is made: 11
(a) For a member described in subsection 5, 6 or 7 of NRS 12
678A.360, as amended by section 1.3 of this act, before the 13
appointment of the members required to be appointed pursuant to 14
subsection 1 must be made in accordance with NRS 678A.360 and 15
678A.370, as those sections existed before the effective date of this 16
act. 17
(b) For a member described in subsection 8 or 9 of NRS 18
678A.360, as amended by section 1.3 of this act, before the 19
appointment of the members required to be appointed pursuant to 20
subsection 2 must be made in accordance with NRS 678A.360 and 21
678A.370, as those sections existed before the effective date of this 22
act. 23
Sec. 5.5. The amendatory provisions of sections 2, 3, 4 and 6 24
of this act apply to any judicial or administrative proceedings 25
commenced on or after the effective date of this act. 26
Sec. 5.7. The amendatory provisions of sections 5 and 6 of this 27
act apply to regulations which are proposed by the Cannabis 28
Compliance Board on or after the effective date of this act. 29
Sec. 6. NRS 678A.460, 678A.560, 678A.620, 678A.630 and 30
678A.640 are hereby repealed. 31
Sec. 7. This act becomes effective upon passage and approval. 32
LEADLINES OF REPEALED SECTIONS
678A.460 Regulations: Procedure for adoption, amendment
and repeal.
678A.560 Hearings: Limitations on communications.
678A.620 Judicial review: Record on review.
678A.630 Judicial review: Additional evidence taken by
Board; review confined to record; court may affirm, remand or
reverse.
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678A.640 Judicial review: Appeal to appellate court;
exclusive method of review for disciplinary hearings; certain
actions not subject to judicial review.
H