- 82nd Session (2023)
Senate Bill No. 328–Senators Titus and Nguyen
CHAPTER..........
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
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.
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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.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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
follows:
678A.005 The Legislature hereby finds, and declares to be the
public policy of this State, that:
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1. The cannabis industry is [beneficial] significant to the
economy of the State [and the general welfare of its residents.] of
Nevada.
2. A regulated cannabis industry provides access to legal
cannabis and cannabis products in a safe manner. Cannabis and
cannabis products obtained from illegal sources are not tested,
may be associated with violent crime and are often targeted at
minors.
3. The continued growth and success of the cannabis industry
is dependent upon public confidence and trust and an
understanding that:
(a) Residents who suffer from chronic or debilitating medical
conditions will be able to obtain medical cannabis safely and
conveniently;
(b) Residents who choose to engage in the adult use of cannabis
may also obtain adult-use cannabis in a safe and efficient manner;
(c) Cannabis establishments do not unduly impact the quality of
life enjoyed by residents of the surrounding neighborhoods;
(d) Cannabis licenses and registration cards are issued in a fair
and equitable manner [;] with a commitment to the consideration of
social equity;
(e) The holders of cannabis licenses and registration cards are
representative of their communities; [and]
(f) [The] Nevada seeks to emulate other privileged industries
that are licensed and strictly regulated insofar as those industries
are similar to or the approaches used in those industries are
compatible with the cannabis industry in this State; and
(g) A well regulated cannabis industry [is free from] provides
significant tax revenues to the State and runs contrary to the
criminal and corruptive elements [.] that exist in an unregulated
and illegal market.
[3.] 4. Public confidence and trust can only be maintained by
strict but fair and equitable regulation of all persons, locations,
practices, associations and activities related to the operation of
cannabis establishments.
[4.] 5. All cannabis establishments and cannabis establishment
agents must [therefore] be licensed, controlled and assisted to
protect the public health, safety, morals, good order and general
welfare of the inhabitants of the State, to foster the stability and
success of the cannabis industry and to preserve the competitive
economy and policies of free competition of the State of Nevada.
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Sec. 1.3. NRS 678A.360 is hereby amended to read as
follows:
678A.360 1. Each member of the Board must be a resident of
the State of Nevada.
2. No member of the Legislature, no person holding any
elective office in the State Government, nor any officer or official of
any political party is eligible for appointment to the Board.
3. Not more than three of the five members of the Board may
be of the same political party.
4. It is the intention of the Legislature that the Board be
composed of the most qualified persons available.
5. One member of the Board must [:
(a) Be a certified public accountant certified or licensed by this
State or another state of the United States or a public accountant
qualified to practice public accounting under the provisions of
chapter 628 of NRS, have 5 years of progressively responsible
experience in general accounting and have a comprehensive
knowledge of the principles and practices of corporate finance; or
(b) Possess] possess the qualifications of an expert in the fields
of corporate finance and auditing, inventory, general finance or
economics [.] and be selected with special reference to his or her
knowledge, skill and experience in representing businesses
engaging in manufacturing, distribution, retail or agriculture.
6. One member of the Board must be selected with special
reference to his or her training and experience in the fields of
investigation or law enforcement [.] , including, without limitation,
in the area of illegal or unlicensed cannabis activities.
7. One member of the Board must be an attorney licensed to
practice in this State and selected with special reference to his or her
knowledge, skill and experience in representing businesses in
licensing matters or regulatory compliance.
8. One member of the Board must be selected with special
reference to his or her knowledge, skill and experience in the
cannabis industry. The person selected pursuant to this subsection
is not subject to paragraph (b) of subsection 1 of NRS 281A.410 or
subsection 3 of NRS 281A.550.
9. One member of the Board must be a physician licensed
pursuant to chapter 630 or 633 of NRS and have knowledge, skill
and experience in the area of public health or be a psychologist,
clinical professional counselor, alcohol and drug counselor , [or]
social worker or a person with expertise in laboratory sciences and
must be selected with special reference to his or her knowledge,
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skill and experience in the area of [education and prevention of
abuse relating to] cannabis.
10. In addition to any other requirements imposed by this
section, the member who is designated as Chair of the Board must
have at least 5 years of leadership experience in his or her field.
Sec. 1.4. NRS 678A.370 is hereby amended to read as
follows:
678A.370 1. [The term of office of each member of the
Board is 4 years, commencing on the last Monday in January.
2.] The Governor shall appoint the members of the Board and
designate one member to serve as Chair, who shall preside over all
official activities of the Board [.] , and one member as Vice Chair,
who shall perform duties established by the Board.
2. The term of the Chair is 2 years. Upon expiration of the
term of the Chair, if the Governor has not designated the member
to serve as Chair for another term or designated another member
to serve as Chair, the Vice Chair becomes the Chair.
3. In appointing members to the Board, the Governor shall
consider whether the members appointed to the Board reflect the
ethnic and geographical diversity of this State.
4. Each member of the Board serves a term of 4 years.
[3.] 5. The Governor may remove any member for neglect of
duty, misfeasance, malfeasance or nonfeasance in office. Removal
may be made after:
(a) The member has been served with a copy of the charges
against the member; and
(b) A public hearing before the Governor is held upon the
charges, if requested by the member charged.
The request for a public hearing must be made within 10 days
after service upon such member of the charges. If a hearing is not
requested, a member is removed effective 10 days after service of
charges upon the member. A record of the proceedings at the public
hearing must be filed with the Secretary of State.
6. Before entering upon the duties of office, each person
appointed to the Board must receive training that is the same or
substantially similar to any training that is required by the Board
by regulation to be completed by a cannabis establishment agent
before he or she may be employed by, volunteer at or provide labor
to a cannabis establishment.
Sec. 1.5. NRS 678A.420 is hereby amended to read as
follows:
678A.420 1. The position of Executive Director of the
Cannabis Compliance Board is hereby created.
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2. The Executive Director:
(a) Is appointed by the [Board] Governor, with consideration
given to the skill or experience of the appointee in regulated
industries, and may be removed by the [Board;] Governor;
(b) Is responsible for the conduct of the administrative matters
of the Board; and
(c) Shall, except as otherwise provided in NRS 284.143, devote
his or her entire time and attention to the business of the office of
Executive Director and shall not pursue any other business or
occupation or hold any other office for profit.
3. The Executive Director is entitled to an annual salary in the
amount specified by the Board within the limits of legislative
appropriations or authorizations.
Sec. 1.6. NRS 678A.440 is hereby amended to read as
follows:
678A.440 In addition to any other powers granted by this title,
the Board has the power to:
1. Enter into interlocal agreements pursuant to NRS 277.080 to
277.180, inclusive.
2. Establish and amend a plan of organization for the Board,
including, without limitation, organizations of divisions or sections
with leaders for such divisions or sections.
3. Appear on its own behalf before governmental agencies of
the State or any of its political subdivisions.
4. Apply for and accept any gift, donation, bequest, grant or
other source of money to carry out the provisions of this title.
5. Execute all instruments necessary or convenient for carrying
out the provisions of this title.
6. Prepare, publish and distribute such studies, reports,
bulletins and other materials as the Board deems appropriate.
7. Refer cases to the Attorney General for criminal prosecution.
8. Maintain an official Internet website for the Board.
9. Monitor federal activity regarding cannabis and report its
findings to the Legislature.
10. Employ the services of such persons the Board considers
necessary for the purposes of hearing disciplinary proceedings.
11. In accordance with NRS 179.1156 to 179.121, inclusive,
seize and destroy cannabis and cannabis products involved in
unlicensed cannabis activities.
12. Commit resources and take action to address unlicensed
cannabis activities, including, without limitation:
(a) Investigating and referring matters involving unlicensed
cannabis activities to the appropriate state or local law
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enforcement agency, including, without limitation, the
Investigation Division of the Department of Public Safety and the
Attorney General, for further investigation and possible criminal
prosecution;
(b) Educating the public through various types of media and
communication and other forms of public outreach on the dangers
and illegality of unlicensed cannabis activities and the importance
of having cannabis establishments which are licensed and
regulated;
(c) Creating a system through which the public, licensees and
registrants may file confidential reports of unlicensed cannabis
activities; and
(d) Imposing penalties against persons who engage in
unlicensed cannabis activities in accordance with the regulations
adopted by the Board pursuant to NRS 678A.450.
Sec. 1.7. NRS 678A.450 is hereby amended to read as
follows:
678A.450 1. The Board may adopt regulations necessary or
convenient to carry out the provisions of this title. Such regulations
may include, without limitation:
(a) Financial requirements for licensees.
(b) Establishing such education, outreach, investigative and
enforcement mechanisms as the Board deems necessary to ensure
the compliance of a licensee or registrant with the provisions of this
title. Such mechanisms must include, without limitation:
(1) A system to educate, train and certify employees of the
Board which:
(I) Each member must complete before he or she may
engage in inspections, investigations or audits; and
(II) At a minimum, includes training that is the same or
substantially similar to any training that is required by the Board
by regulation to be completed by a cannabis establishment agent
before he or she may be employed by, volunteer at or provide labor
to a cannabis establishment;
(2) A system to educate and advise licensees and registrants
on compliance with the provisions of this title which may serve as
an alternative to disciplinary action; and
(3) Establishing specific grounds for disciplinary action
against a licensee or registrant who knowingly violates the law or
engages in grossly negligent, unlawful or criminal conduct or an
act or omission that poses an imminent threat to the health or
safety of the public.
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(c) Requirements for licensees or registrants relating to the
cultivation, processing, manufacture, transport, distribution, testing,
study, advertising and sale of cannabis and cannabis products.
(d) Policies and procedures to ensure that the cannabis industry
in this State is economically competitive, inclusive of racial
minorities, women and persons and communities that have been
adversely affected by cannabis prohibition and accessible to persons
of low-income seeking to start a business.
(e) Policies and procedures governing the circumstances under
which the Board may waive the requirement to obtain a registration
card pursuant to this title for any person who holds an ownership
interest of less than 5 percent in any one cannabis establishment or
an ownership interest in more than one cannabis establishment of
the same type that, when added together, is less than 5 percent.
(f) Policies and procedures relating to the disclosure of the
identities of the shareholders and the annual report of a cannabis
establishment that is a publicly traded company.
(g) Reasonable restrictions on the signage, marketing, display
and advertising of cannabis establishments. Such a restriction must
not require a cannabis establishment to obtain the approval of the
Board before using a logo, sign or advertisement.
[(g)] (h) Provisions governing the sales of products and
commodities made from hemp, as defined in NRS 557.160, or
containing cannabidiol by cannabis establishments.
[(h)] (i) Requirements relating to the packaging and labeling of
cannabis and cannabis products.
2. The Board shall adopt regulations providing for the
gathering and maintenance of comprehensive demographic
information, including, without limitation, information regarding
race, ethnicity, age and gender, concerning each:
(a) Owner and manager of a cannabis establishment.
(b) Holder of a cannabis establishment agent registration card.
3. The Board shall adopt regulations providing for the
investigation of unlicensed cannabis activities and the imposition
of penalties against persons who engage in such activities. Such
regulations must, without limitation:
(a) Establish penalties to be imposed for unlicensed cannabis
activities, which may include, without limitation, the issuance of a
cease and desist order or citation, the imposition of an
administrative fine or civil penalty and other similar penalties.
(b) Set forth the procedures by which the Board may impose a
penalty against a person for engaging in unlicensed cannabis
activities.
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(c) Set forth the circumstances under which the Board is
required to refer matters concerning unlicensed cannabis
activities to an appropriate state or local law enforcement agency.
4. The Board shall transmit the information gathered and
maintained pursuant to subsection 2 to the Director of the
Legislative Counsel Bureau for transmission to the Legislature on or
before January 1 of each odd-numbered year.
[4.] 5. The Board shall, by regulation, establish a pilot
program for identifying opportunities for an emerging small
cannabis business to participate in the cannabis industry. As used in
this subsection, “emerging small cannabis business” means a
cannabis-related business that:
(a) Is in existence, operational and operated for a profit;
(b) Maintains its principal place of business in this State; and
(c) Satisfies requirements for the number of employees and
annual gross revenue established by the Board by regulation.
Sec. 1.9. NRS 678A.510 is hereby amended to read as
follows:
678A.510 1. If the Executive Director transmits the details of
a suspected violation to the Attorney General pursuant to NRS
678A.500, the Attorney General shall conduct an investigation of
the suspected violation to determine whether it warrants proceedings
for disciplinary action of the licensee or registrant. If the Attorney
General determines that further proceedings are warranted, he or she
shall report the results of the investigation together with a
recommendation to the Executive Director in a manner which does
not violate the right of the person charged in the complaint to due
process in any later hearing on the complaint. The Executive
Director shall transmit the recommendation and other information
received from the Attorney General to the Board.
2. The Board shall promptly make a determination with respect
to each complaint resulting in an investigation by the Attorney
General. The Board shall:
(a) Dismiss the complaint; or
(b) Proceed with appropriate disciplinary action in accordance
with NRS 678A.520 to 678A.600, inclusive, chapter 233B of NRS
and the regulations adopted by the Board.
Sec. 2. NRS 678A.540 is hereby amended to read as follows:
678A.540 1. At all hearings before the Board:
(a) Oral evidence may be taken only upon oath or affirmation
administered by the Board.
(b) Every party has the right to:
(1) Call and examine witnesses;
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(2) Introduce exhibits relevant to the issues of the case;
(3) Cross-examine opposing witnesses on any matters
relevant to the issues of the case, even though the matter was not
covered in a direct examination;
(4) Impeach any witness regardless of which party first
called the witness to testify; and
(5) Offer rebuttal evidence.
(c) If the respondent does not testify in his or her own behalf,
the respondent may be called and examined as if under
cross-examination.
(d) The hearing need not be conducted according to technical
rules relating to evidence and witnesses [.] , except that those
prescribed in NRS 233B.123 apply. Any relevant evidence that is
not immaterial or unduly repetitious may be admitted and is
sufficient in itself to support a finding if it is the sort of evidence on
which responsible persons are accustomed to rely in the conduct of
serious affairs, regardless of the existence of any common law or
statutory rule which might make improper the admission of such
evidence over objection in a civil action.
(e) The parties or their counsel may by written stipulation agree
that certain specified evidence may be admitted even though such
evidence might otherwise be subject to objection.
2. The Board may take official notice of any generally accepted
information or technical or scientific matter within the field of
cannabis, and of any other fact which may be judicially noticed by
the courts of this State. The parties must be informed of any
information, matters or facts so noticed, and must be given a
reasonable opportunity, on request, to refute such information,
matters or facts by evidence or by written or oral presentation of
authorities, the manner of such refutation to be determined by the
Board.
3. Affidavits may be received in evidence at any hearing of the
Board in accordance with the following:
(a) The party wishing to use an affidavit must, not less than 10
days before the day set for hearing, serve upon the opposing party or
counsel, either personally or by registered or certified mail, a copy
of the affidavit which the party proposes to introduce in evidence
together with a notice as provided in paragraph (c).
(b) Unless the opposing party, within 7 days after such service,
mails or delivers to the proponent a request to cross-examine the
affiant, the opposing party’s right to cross-examine the affiant is
waived and the affidavit, if introduced in evidence, must be given
the same effect as if the affiant had testified orally. If an opportunity
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to cross-examine an affiant is not afforded after request therefor is
made in accordance with this paragraph, the affidavit may be
introduced in evidence, but must be given only the same effect as
other hearsay evidence.
(c) The notice referred to in paragraph (a) must be substantially
in the following form:
The accompanying affidavit of (here insert name of
affiant) will be introduced as evidence at the hearing set for
the ........ day of the month of ………. of the year …… (Here
insert name of affiant) will not be called to testify orally and
you will not be entitled to question (here insert name of
affiant) unless you notify the undersigned that you wish to
cross-examine (here insert name of affiant). To be effective
your request must be mailed or delivered to the undersigned
on or before 7 days from the date this notice and the enclosed
affidavit are served upon you.
..................................................
(Party or Counsel)
..................................................
(Address)
Sec. 3. NRS 678A.590 is hereby amended to read as follows:
678A.590 1. Within 60 days after the hearing of a contested
matter, the Board shall render a written decision on the merits .
[which] Except as otherwise provided in subsection 5 of NRS
233B.121, the written decision must contain findings of fact [,] and
conclusions of law which are separately stated, a determination of
the issues presented and the penalty to be imposed, if any. The
Board shall thereafter make and enter its written order in conformity
to its decision. No member of the Board who did not hear the
evidence may vote on the decision. The affirmative votes of a
majority of the whole Board are required to impose any penalty.
Copies of the decision and order must be served on the parties
personally or sent to them by registered or certified mail. The
decision is effective upon such service, unless the Board orders
otherwise.
2. The Board may, upon motion made within [10] 15 days after
service of a decision and order, order a rehearing before the Board
upon such terms and conditions as it may deem just and proper if a
petition for judicial review of the decision and order has not been
filed. The motion must not be granted except upon a showing that
there is additional evidence which is material and necessary and
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reasonably calculated to change the decision of the Board, and that
sufficient reason existed for failure to present the evidence at the
hearing of the Board. The motion must be supported by an affidavit
of the moving party or his or her counsel showing with particularity
the materiality and necessity of the additional evidence and the
reason why it was not introduced at the hearing. Upon rehearing,
rebuttal evidence to the additional evidence must be permitted. After
rehearing, the Board may modify its decision and order as the
additional evidence may warrant.
Sec. 4. NRS 678A.610 is hereby amended to read as follows:
678A.610 [1.] Any person aggrieved by a final decision or
order of the Board made after hearing or rehearing by the Board
pursuant to NRS 678A.520 to 678A.600, inclusive, and whether or
not a motion for rehearing was filed, [may obtain a] is entitled to
judicial review [thereof in the district court of the county in which
the petitioner resides or has his, her or its principal place of
business.
2. The judicial review must be instituted by filing a petition
within 20 days after the effective date of the final decision or order.
A petition may not be filed while a motion for rehearing or a
rehearing is pending before the Board. The petition must set forth
the order or decision appealed from and the grounds or reasons why
petitioner contends a reversal or modification should be ordered.
3. Copies of the petition must be served upon the Board and all
other parties of record, or their counsel of record, either personally
or by certified mail.
4. The court, upon a proper showing, may permit other
interested persons to intervene as parties to the appeal or as friends
of the court.
5. The filing of the petition does not stay enforcement of the
decision or order of the Board, but the Board itself may grant a stay
upon such terms and conditions as it deems proper.] of the decision
or order in the manner provided by chapter 233B of NRS.
Sec. 4.3. NRS 281A.410 is hereby amended to read as
follows:
281A.410 In addition to the requirements of the code of ethical
standards and the other provisions of this chapter:
1. [If] Except as otherwise provided in NRS 678A.360, if a
public officer or employee serves in a state agency of the Executive
Department or an agency of any county, city or other political
subdivision, the public officer or employee:
(a) Shall not accept compensation from any private person to
represent or counsel the private person on any issue pending before
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the agency in which that public officer or employee serves, if the
agency makes decisions; and
(b) If the public officer or employee leaves the service of the
agency, shall not, for 1 year after leaving the service of the agency,
represent or counsel for compensation a private person upon any
issue which was under consideration by the agency during the
public officer’s or employee’s service. As used in this paragraph,
“issue” includes a case, proceeding, application, contract or
determination, but does not include the proposal or consideration of
legislative measures or administrative regulations.
2. Except as otherwise provided in subsection 3, a State
Legislator or a member of a local legislative body, or a public
officer or employee whose public service requires less than half of
his or her time, may represent or counsel a private person before an
agency in which he or she does not serve.
3. A member of a local legislative body shall not represent or
counsel a private person for compensation before another local
agency if the territorial jurisdiction of the other local agency
includes any part of the county in which the member serves. The
Commission may relieve the member from the strict application of
the provisions of this subsection if:
(a) The member files a request for an advisory opinion from the
Commission pursuant to NRS 281A.675; and
(b) The Commission determines that such relief is not contrary
to:
(1) The best interests of the public;
(2) The continued ethical integrity of each local agency
affected by the matter; and
(3) The provisions of this chapter.
4. For the purposes of subsection 3, the request for an advisory
opinion, the advisory opinion and all meetings, hearings and
proceedings of the Commission in such a matter are governed by the
provisions of NRS 281A.670 to 281A.690, inclusive.
5. Unless permitted by this section, a public officer or
employee shall not represent or counsel a private person for
compensation before any state agency of the Executive or
Legislative Department.
Sec. 4.6. NRS 281A.550 is hereby amended to read as
follows:
281A.550 1. A former member of the Public Utilities
Commission of Nevada shall not:
(a) Be employed by a public utility or parent organization or
subsidiary of a public utility; or
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(b) Appear before the Public Utilities Commission of Nevada to
testify on behalf of a public utility or parent organization or
subsidiary of a public utility,
for 1 year after the termination of the member’s service on the
Public Utilities Commission of Nevada.
2. A former member of the Nevada Gaming Control Board or
the Nevada Gaming Commission shall not:
(a) Appear before the Nevada Gaming Control Board or the
Nevada Gaming Commission on behalf of a person who holds a
license issued pursuant to chapter 463 or 464 of NRS or who is
required to register with the Nevada Gaming Commission pursuant
to chapter 463 of NRS; or
(b) Be employed by such a person,
for 1 year after the termination of the member’s service on the
Nevada Gaming Control Board or the Nevada Gaming Commission.
3. In addition to the prohibitions set forth in subsections 1 and
2, and except as otherwise provided in subsections 4 and 6 [,] and
NRS 678A.360, a former public officer or employee of a board,
commission, department, division or other agency of the Executive
Department of State Government, except a clerical employee, shall
not solicit or accept employment from a business or industry whose
activities are governed by regulations adopted by the board,
commission, department, division or other agency for 1 year after
the termination of the former public officer’s or employee’s service
or period of employment if:
(a) The former public officer’s or employee’s principal duties
included the formulation of policy contained in the regulations
governing the business or industry;
(b) During the immediately preceding year, the former public
officer or employee directly performed activities, or controlled or
influenced an audit, decision, investigation or other action, which
significantly affected the business or industry which might, but for
this section, employ the former public officer or employee; or
(c) As a result of the former public officer’s or employee’s
governmental service or employment, the former public officer or
employee possesses knowledge of the trade secrets of a direct
business competitor.
4. The provisions of subsection 3 do not apply to a former
public officer who was a member of a board, commission or similar
body of the State if:
(a) The former public officer is engaged in the profession,
occupation or business regulated by the board, commission or
similar body;
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(b) The former public officer holds a license issued by the
board, commission or similar body; and
(c) Holding a license issued by the board, commission or similar
body is a requirement for membership on the board, commission or
similar body.
5. Except as otherwise provided in subsection 6, a former
public officer or employee of the State or a political subdivision,
except a clerical employee, shall not solicit or accept employment
from a person to whom a contract for supplies, materials, equipment
or services was awarded by the State or political subdivision, as
applicable, for 1 year after the termination of the officer’s or
employee’s service or period of employment, if:
(a) The amount of the contract exceeded $25,000;
(b) The contract was awarded within the 12-month period
immediately preceding the termination of the officer’s or
employee’s service or period of employment; and
(c) The position held by the former public officer or employee at
the time the contract was awarded allowed the former public officer
or employee to affect or influence the awarding of the contract.
6. A current or former public officer or employee may file a
request for an advisory opinion pursuant to NRS 281A.675
concerning the application of the relevant facts in that person’s case
to the provisions of subsection 3 or 5, as applicable, and determine
whether relief from the strict application of those provisions is
proper. If the Commission determines that relief from the strict
application of the provisions of subsection 3 or 5, as applicable, is
not contrary to:
(a) The best interests of the public;
(b) The continued ethical integrity of the State Government or
political subdivision, as applicable; and
(c) The provisions of this chapter,
it may issue an advisory opinion to that effect and grant such
relief.
7. For the purposes of subsection 6, the request for an advisory
opinion, the advisory opinion and all meetings, hearings and
proceedings of the Commission in such a matter are governed by the
provisions of NRS 281A.670 to 281A.690, inclusive.
8. The advisory opinion does not relieve the current or former
public officer or employee from the strict application of any
provision of NRS 281A.410.
9. For the purposes of this section:
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(a) A former member of the Public Utilities Commission of
Nevada, the Nevada Gaming Control Board or the Nevada Gaming
Commission; or
(b) Any other former public officer or employee governed by
this section,
is employed by or is soliciting or accepting employment from a
business, industry or other person described in this section if any
oral or written agreement is sought, negotiated or exists during
the restricted period pursuant to which the personal services of the
public officer or employee are provided or will be provided to the
business, industry or other person, even if such an agreement does
not or will not become effective until after the restricted period.
10. As used in this section, “regulation” has the meaning
ascribed to it in NRS 233B.038 and also includes regulations
adopted by a board, commission, department, division or other
agency of the Executive Department of State Government that is
exempted from the requirements of chapter 233B of NRS.
Sec. 5. NRS 233B.039 is hereby amended to read as follows:
233B.039 1. The following agencies are entirely exempted
from the requirements of this chapter:
(a) The Governor.
(b) Except as otherwise provided in NRS 209.221 and 209.2473,
the Department of Corrections.
(c) The Nevada System of Higher Education.
(d) The Office of the Military.
(e) The Nevada Gaming Control Board.
(f) Except as otherwise provided in NRS 368A.140 and 463.765,
the Nevada Gaming Commission.
(g) Except as otherwise provided in NRS 425.620, the Division
of Welfare and Supportive Services of the Department of Health and
Human Services.
(h) Except as otherwise provided in NRS 422.390, the Division
of Health Care Financing and Policy of the Department of Health
and Human Services.
(i) Except as otherwise provided in NRS 533.365, the Office of
the State Engineer.
(j) The Division of Industrial Relations of the Department of
Business and Industry acting to enforce the provisions of
NRS 618.375.
(k) The Administrator of the Division of Industrial Relations of
the Department of Business and Industry in establishing and
adjusting the schedule of fees and charges for accident benefits
pursuant to subsection 2 of NRS 616C.260.
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(l) The Board to Review Claims in adopting resolutions to carry
out its duties pursuant to NRS 445C.310.
(m) The Silver State Health Insurance Exchange.
[(n) The Cannabis Compliance Board.]
2. Except as otherwise provided in subsection 5 and NRS
391.323, the Department of Education, the Board of the Public
Employees’ Benefits Program and the Commission on Professional
Standards in Education are subject to the provisions of this chapter
for the purpose of adopting regulations but not with respect to any
contested case.
3. The special provisions of:
(a) Chapter 612 of NRS for the adoption of an emergency
regulation or the distribution of regulations by and the judicial
review of decisions of the Employment Security Division of the
Department of Employment, Training and Rehabilitation;
(b) Chapters 616A to 617, inclusive, of NRS for the
determination of contested claims;
(c) Chapter 91 of NRS for the judicial review of decisions of the
Administrator of the Securities Division of the Office of the
Secretary of State; and
(d) NRS 90.800 for the use of summary orders in contested
cases,
prevail over the general provisions of this chapter.
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and
233B.126 do not apply to the Department of Health and Human
Services in the adjudication of contested cases involving the
issuance of letters of approval for health facilities and agencies.
5. The provisions of this chapter do not apply to:
(a) Any order for immediate action, including, but not limited
to, quarantine and the treatment or cleansing of infected or infested
animals, objects or premises, made under the authority of the State
Board of Agriculture, the State Board of Health, or any other agency
of this State in the discharge of a responsibility for the preservation
of human or animal health or for insect or pest control;
(b) An extraordinary regulation of the State Board of Pharmacy
adopted pursuant to NRS 453.2184;
(c) A regulation adopted by the State Board of Education
pursuant to NRS 388.255 or 394.1694;
(d) The judicial review of decisions of the Public Utilities
Commission of Nevada;
(e) The adoption, amendment or repeal of policies by the
Rehabilitation Division of the Department of Employment, Training
and Rehabilitation pursuant to NRS 426.561 or 615.178;
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(f) The adoption or amendment of a rule or regulation to be
included in the State Plan for Services for Victims of Crime by the
Department of Health and Human Services pursuant to
NRS 217.130;
(g) The adoption, amendment or repeal of rules governing the
conduct of contests and exhibitions of unarmed combat by the
Nevada Athletic Commission pursuant to NRS 467.075;
(h) The adoption, amendment or repeal of regulations by the
Director of the Department of Health and Human Services pursuant
to NRS 447.335 to 447.350, inclusive;
(i) The adoption, amendment or repeal of standards of content
and performance for courses of study in public schools by the
Council to Establish Academic Standards for Public Schools and the
State Board of Education pursuant to NRS 389.520;
(j) The adoption, amendment or repeal of the statewide plan to
allocate money from the Fund for a Resilient Nevada created by
NRS 433.732 established by the Department of Health and Human
Services pursuant to paragraph (b) of subsection 1 of NRS 433.734;
or
(k) The adoption or amendment of a data request by the
Commissioner of Insurance pursuant to NRS 687B.404.
6. The State Board of Parole Commissioners is subject to the
provisions of this chapter for the purpose of adopting regulations but
not with respect to any contested case.
Sec. 5.3. NRS 453.096 is hereby amended to read as follows:
453.096 1. “Marijuana” means:
(a) All parts of any plant of the genus Cannabis, whether
growing or not;
(b) The seeds thereof;
(c) The resin extracted from any part of the plant, including
concentrated cannabis;
(d) Every compound, manufacture, salt, derivative, mixture or
preparation of the plant, its seeds or resin;
(e) Any commodity or product made using hemp which exceeds
the maximum THC concentration established by the State
Department of Agriculture for hemp; and
(f) Any product or commodity made from hemp which is
manufactured or sold by a cannabis establishment which violates
any regulation adopted by the Cannabis Compliance Board pursuant
to paragraph [(g)] (h) of subsection 1 of NRS 678A.450 relating to
THC concentration.
2. “Marijuana” does not include:
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(a) Hemp, as defined in NRS 557.160, which is grown or
cultivated pursuant to the provisions of chapter 557 of NRS;
(b) The mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture or preparation of
the mature stalks (except the resin extracted therefrom), fiber, oil or
cake, or the sterilized seed of the plant which is incapable of
germination; or
(c) Any commodity or product made using hemp, as defined in
NRS 557.160, which does not exceed the maximum THC
concentration established by the State Department of Agriculture for
hemp.
Sec. 5.4. 1. The terms of the members of the Board
described in subsections 5, 6 and 7 of NRS 678A.360, as amended
by section 1.3 of this act, who are incumbent on June 30, 2024,
expire on that date. On or before July 1, 2024, the Governor shall
appoint to the Board the members described in subsections 5, 6 and
7 of NRS 678A.360, as amended by section 1.3 of this act, to terms
that commence on July 1, 2024, and expire on June 30, 2028.
2. The terms of the members of the Board described in
subsections 8 and 9 of NRS 678A.360, as amended by section 1.3 of
this act, who are incumbent on June 30, 2025, expire on that date.
On or before July 1, 2025, the Governor shall appoint to the Board
the members described in subsections 8 and 9 of NRS 678A.360, as
amended by section 1.3 of this act, to terms that commence on
July 1, 2025, and expire on June 30, 2029.
3. Notwithstanding the amendatory provisions of section 1.3 of
this act, any appointment of a member to the Board that is made:
(a) For a member described in subsection 5, 6 or 7 of NRS
678A.360, as amended by section 1.3 of this act, before the
appointment of the members required to be appointed pursuant to
subsection 1 must be made in accordance with NRS 678A.360 and
678A.370, as those sections existed before the effective date of this
act.
(b) For a member described in subsection 8 or 9 of NRS
678A.360, as amended by section 1.3 of this act, before the
appointment of the members required to be appointed pursuant to
subsection 2 must be made in accordance with NRS 678A.360 and
678A.370, as those sections existed before the effective date of this
act.
Sec. 5.5. The amendatory provisions of sections 2, 3, 4 and 6
of this act apply to any judicial or administrative proceedings
commenced on or after the effective date of this act.
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Sec. 5.7. The amendatory provisions of sections 5 and 6 of this
act apply to regulations which are proposed by the Cannabis
Compliance Board on or after the effective date of this act.
Sec. 6. NRS 678A.460, 678A.560, 678A.620, 678A.630 and
678A.640 are hereby repealed.
Sec. 7. This act becomes effective upon passage and approval.
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