Nevada 2023 Regular Session

Nevada Senate Bill SB328 Compare Versions

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1	1
2	2
3	3	- 82nd Session (2023)
4	4	Senate Bill No. 328–Senators Titus and Nguyen
5	5
6	6	CHAPTER..........
7	7
8	8	AN ACT relating to cannabis; revising provisions relating to the
9	9	appointment of members of the Cannabis Compliance Board;
10	10	revising the qualifications and terms of office of members
11	11	of the Board; authorizing the Governor to appoint and
12	12	remove the Executive Director of the Board; revising the
13	13	powers of the Board; authorizing the Board to adopt certain
14	14	regulations; requiring the Board to adopt regulations
15	15	providing for the investigation of unlicensed cannabis
16	16	activities and the imposition of penalties against persons who
17	17	engage in such activities; eliminating the exemption of the
18	18	Board from the provisions of the Nevada Administrative
19	19	Procedure Act; revising procedures governing disciplinary
20	20	proceedings conducted by the Board; and providing other
21	21	matters properly relating thereto.
22	22	Legislative Counsel’s Digest:
23	23	Existing law sets forth certain legislative findings and declarations concerning
24	24	the public policy of this State with respect to the cannabis industry. (NRS
25	25	678A.005) Section 1 of this bill revises those findings and declarations and adds
26	26	certain findings and declarations relating to illegal and unregulated activities
27	27	involving cannabis.
28	28	Existing law sets forth the general powers of the Cannabis Compliance Board.
29	29	(NRS 678A.440) Section 1.6 of this bill authorizes the Board to: (1) seize and
30	30	destroy cannabis and cannabis products involved in unlicensed cannabis activities
31	31	in accordance with the procedures applicable to other property subject to forfeiture;
32	32	and (2) commit resources and take certain actions relating to unlicensed cannabis
33	33	activities.
34	34	Existing law sets forth the composition of the Board. (NRS 678A.360) Existing
35	35	law requires the Governor to appoint the members of the Board and designate one
36	36	member to serve as Chair. (NRS 678A.370) Section 1.3 of this bill revises certain
37	37	requirements and qualifications of the members of the Board. Sections 1.3, 4.3 and
38	38	4.6 of this bill exempt one member of the Board who is required to be selected
39	39	based on his or her knowledge, skill and experience in the cannabis industry from
40	40	certain restrictions imposed on former public officers or employees. Section 1.4 of
41	41	this bill revises provisions concerning the appointment of members of the Board.
42	42	Section 1.4 requires the Governor to designate one member of the Board to serve as
43	43	Vice Chair and requires each member, before entering upon the duties of office, to
44	44	receive training that is the same or substantially similar to that which is required of
45	45	a cannabis establishment agent.
46	46	Section 5.4 of this bill provides for staggered terms of the five members of the
47	47	Board by: (1) providing that the terms of office of three members of the Board
48	48	serving on June 30, 2024, expire on that date and requiring new members be
49	49	appointed for a term of 4 years commencing July 1, 2024; and (2) providing that
50	50	the terms of office of the remaining two members of the Board serving as of
51	51	June 30, 2025, expire on that date and requiring new members be appointed for a
52	52	term of 4 years commencing July 1, 2025.
53	53	– 2 –
54	54
55	55
56	56	- 82nd Session (2023)
57	57	Existing law requires the Board to appoint, and authorizes the Board to remove,
58	58	the Executive Director of the Board. (NRS 678A.420) Section 1.5 of this bill
59	59	transfers that authority to the Governor and requires the Governor to consider the
60	60	skill and experience of a potential Executive Director in regulated industries when
61	61	making the appointment.
62	62	Existing law authorizes the Board to adopt regulations necessary and
63	63	convenient to carry out certain provisions of law relating to the regulation of
64	64	cannabis. (NRS 678A.450) Section 1.7 of this bill provides that if the Board adopts
65	65	regulations establishing certain mechanisms to ensure compliance with those
66	66	provisions of law, the mechanisms must: (1) include certain education and training
67	67	for employees of the Board and certain information to aid licensees and registrants
68	68	in compliance; and (2) establish certain grounds for disciplinary action against a
69	69	licensee or registrant. Section 1.7 also authorizes the Board to adopt certain
70	70	regulations governing cannabis establishments which are publicly traded
71	71	companies. Finally, section 1.7 requires the Board to adopt regulations providing
72	72	for the investigation of unlicensed cannabis activities and the imposition of
73	73	penalties against persons who engage in such activities. Section 5.3 of this bill
74	74	makes a conforming change to account for the placement of new language in
75	75	section 1.7.
76	76	Existing law sets forth the Nevada Administrative Procedure Act, which
77	77	establishes the procedures for state agencies to adopt, amend or repeal
78	78	administrative regulations and adjudicate contested cases. (Chapter 233B of NRS)
79	79	Existing law exempts the Board from the provisions of the Act. (NRS 233B.039)
80	80	Existing law instead sets forth specific procedures for the Board to: (1) adopt,
81	81	amend or repeal regulations; and (2) take disciplinary action against a person who
82	82	holds a license or registration card issued by the Board. (NRS 678A.460,
83	83	678A.500-678A.640) Section 5 of this bill eliminates the exemption of the Board
84	84	from the provisions of the Act, thereby requiring the Board to adopt, amend and
85	85	repeal regulations and adjudicate contested cases in the same manner as other state
86	86	agencies subject to the provisions of the Act. Section 6 of this bill repeals the
87	87	specific procedures for the Board to adopt, amend or repeal regulations set forth
88	88	under existing law. Sections 1.9-3 of this bill revise the procedures for the Board to
89	89	take disciplinary action to conform with the procedures for the adjudication of
90	90	contested cases set forth in the Act.
91	91	Existing law sets forth procedures by which a person aggrieved by a final
92	92	decision of the Board in a disciplinary proceeding may obtain judicial review of the
93	93	decision. (NRS 678A.610-678A.640) Section 6 eliminates those procedures.
94	94	Section 4 of this bill instead authorizes a person aggrieved by a final decision of the
95	95	Board in a disciplinary proceeding to obtain judicial review of the decision in the
96	96	manner provided in the Act.
97	97
98	98	EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
99	99
100	100
101	101	THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
102	102	SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
103	103
104	104	Section 1. NRS 678A.005 is hereby amended to read as
105	105	follows:
106	106	678A.005 The Legislature hereby finds, and declares to be the
107	107	public policy of this State, that:
108	108	– 3 –
109	109
110	110
111	111	- 82nd Session (2023)
112	112	1. The cannabis industry is [beneficial] significant to the
113	113	economy of the State [and the general welfare of its residents.] of
114	114	Nevada.
115	115	2. A regulated cannabis industry provides access to legal
116	116	cannabis and cannabis products in a safe manner. Cannabis and
117	117	cannabis products obtained from illegal sources are not tested,
118	118	may be associated with violent crime and are often targeted at
119	119	minors.
120	120	3. The continued growth and success of the cannabis industry
121	121	is dependent upon public confidence and trust and an
122	122	understanding that:
123	123	(a) Residents who suffer from chronic or debilitating medical
124	124	conditions will be able to obtain medical cannabis safely and
125	125	conveniently;
126	126	(b) Residents who choose to engage in the adult use of cannabis
127	127	may also obtain adult-use cannabis in a safe and efficient manner;
128	128	(c) Cannabis establishments do not unduly impact the quality of
129	129	life enjoyed by residents of the surrounding neighborhoods;
130	130	(d) Cannabis licenses and registration cards are issued in a fair
131	131	and equitable manner [;] with a commitment to the consideration of
132	132	social equity;
133	133	(e) The holders of cannabis licenses and registration cards are
134	134	representative of their communities; [and]
135	135	(f) [The] Nevada seeks to emulate other privileged industries
136	136	that are licensed and strictly regulated insofar as those industries
137	137	are similar to or the approaches used in those industries are
138	138	compatible with the cannabis industry in this State; and
139	139	(g) A well regulated cannabis industry [is free from] provides
140	140	significant tax revenues to the State and runs contrary to the
141	141	criminal and corruptive elements [.] that exist in an unregulated
142	142	and illegal market.
143	143	[3.] 4. Public confidence and trust can only be maintained by
144	144	strict but fair and equitable regulation of all persons, locations,
145	145	practices, associations and activities related to the operation of
146	146	cannabis establishments.
147	147	[4.] 5. All cannabis establishments and cannabis establishment
148	148	agents must [therefore] be licensed, controlled and assisted to
149	149	protect the public health, safety, morals, good order and general
150	150	welfare of the inhabitants of the State, to foster the stability and
151	151	success of the cannabis industry and to preserve the competitive
152	152	economy and policies of free competition of the State of Nevada.
153	153	– 4 –
154	154
155	155
156	156	- 82nd Session (2023)
157	157	Sec. 1.3. NRS 678A.360 is hereby amended to read as
158	158	follows:
159	159	678A.360 1. Each member of the Board must be a resident of
160	160	the State of Nevada.
161	161	2. No member of the Legislature, no person holding any
162	162	elective office in the State Government, nor any officer or official of
163	163	any political party is eligible for appointment to the Board.
164	164	3. Not more than three of the five members of the Board may
165	165	be of the same political party.
166	166	4. It is the intention of the Legislature that the Board be
167	167	composed of the most qualified persons available.
168	168	5. One member of the Board must [:
169	169	(a) Be a certified public accountant certified or licensed by this
170	170	State or another state of the United States or a public accountant
171	171	qualified to practice public accounting under the provisions of
172	172	chapter 628 of NRS, have 5 years of progressively responsible
173	173	experience in general accounting and have a comprehensive
174	174	knowledge of the principles and practices of corporate finance; or
175	175	(b) Possess] possess the qualifications of an expert in the fields
176	176	of corporate finance and auditing, inventory, general finance or
177	177	economics [.] and be selected with special reference to his or her
178	178	knowledge, skill and experience in representing businesses
179	179	engaging in manufacturing, distribution, retail or agriculture.
180	180	6. One member of the Board must be selected with special
181	181	reference to his or her training and experience in the fields of
182	182	investigation or law enforcement [.] , including, without limitation,
183	183	in the area of illegal or unlicensed cannabis activities.
184	184	7. One member of the Board must be an attorney licensed to
185	185	practice in this State and selected with special reference to his or her
186	186	knowledge, skill and experience in representing businesses in
187	187	licensing matters or regulatory compliance.
188	188	8. One member of the Board must be selected with special
189	189	reference to his or her knowledge, skill and experience in the
190	190	cannabis industry. The person selected pursuant to this subsection
191	191	is not subject to paragraph (b) of subsection 1 of NRS 281A.410 or
192	192	subsection 3 of NRS 281A.550.
193	193	9. One member of the Board must be a physician licensed
194	194	pursuant to chapter 630 or 633 of NRS and have knowledge, skill
195	195	and experience in the area of public health or be a psychologist,
196	196	clinical professional counselor, alcohol and drug counselor , [or]
197	197	social worker or a person with expertise in laboratory sciences and
198	198	must be selected with special reference to his or her knowledge,
199	199	– 5 –
200	200
201	201
202	202	- 82nd Session (2023)
203	203	skill and experience in the area of [education and prevention of
204	204	abuse relating to] cannabis.
205	205	10. In addition to any other requirements imposed by this
206	206	section, the member who is designated as Chair of the Board must
207	207	have at least 5 years of leadership experience in his or her field.
208	208	Sec. 1.4. NRS 678A.370 is hereby amended to read as
209	209	follows:
210	210	678A.370 1. [The term of office of each member of the
211	211	Board is 4 years, commencing on the last Monday in January.
212	212	2.] The Governor shall appoint the members of the Board and
213	213	designate one member to serve as Chair, who shall preside over all
214	214	official activities of the Board [.] , and one member as Vice Chair,
215	215	who shall perform duties established by the Board.
216	216	2. The term of the Chair is 2 years. Upon expiration of the
217	217	term of the Chair, if the Governor has not designated the member
218	218	to serve as Chair for another term or designated another member
219	219	to serve as Chair, the Vice Chair becomes the Chair.
220	220	3. In appointing members to the Board, the Governor shall
221	221	consider whether the members appointed to the Board reflect the
222	222	ethnic and geographical diversity of this State.
223	223	4. Each member of the Board serves a term of 4 years.
224	224	[3.] 5. The Governor may remove any member for neglect of
225	225	duty, misfeasance, malfeasance or nonfeasance in office. Removal
226	226	may be made after:
227	227	(a) The member has been served with a copy of the charges
228	228	against the member; and
229	229	(b) A public hearing before the Governor is held upon the
230	230	charges, if requested by the member charged.
231	231	 The request for a public hearing must be made within 10 days
232	232	after service upon such member of the charges. If a hearing is not
233	233	requested, a member is removed effective 10 days after service of
234	234	charges upon the member. A record of the proceedings at the public
235	235	hearing must be filed with the Secretary of State.
236	236	6. Before entering upon the duties of office, each person
237	237	appointed to the Board must receive training that is the same or
238	238	substantially similar to any training that is required by the Board
239	239	by regulation to be completed by a cannabis establishment agent
240	240	before he or she may be employed by, volunteer at or provide labor
241	241	to a cannabis establishment.
242	242	Sec. 1.5. NRS 678A.420 is hereby amended to read as
243	243	follows:
244	244	678A.420 1. The position of Executive Director of the
245	245	Cannabis Compliance Board is hereby created.
246	246	– 6 –
247	247
248	248
249	249	- 82nd Session (2023)
250	250	2. The Executive Director:
251	251	(a) Is appointed by the [Board] Governor, with consideration
252	252	given to the skill or experience of the appointee in regulated
253	253	industries, and may be removed by the [Board;] Governor;
254	254	(b) Is responsible for the conduct of the administrative matters
255	255	of the Board; and
256	256	(c) Shall, except as otherwise provided in NRS 284.143, devote
257	257	his or her entire time and attention to the business of the office of
258	258	Executive Director and shall not pursue any other business or
259	259	occupation or hold any other office for profit.
260	260	3. The Executive Director is entitled to an annual salary in the
261	261	amount specified by the Board within the limits of legislative
262	262	appropriations or authorizations.
263	263	Sec. 1.6. NRS 678A.440 is hereby amended to read as
264	264	follows:
265	265	678A.440 In addition to any other powers granted by this title,
266	266	the Board has the power to:
267	267	1. Enter into interlocal agreements pursuant to NRS 277.080 to
268	268	277.180, inclusive.
269	269	2. Establish and amend a plan of organization for the Board,
270	270	including, without limitation, organizations of divisions or sections
271	271	with leaders for such divisions or sections.
272	272	3. Appear on its own behalf before governmental agencies of
273	273	the State or any of its political subdivisions.
274	274	4. Apply for and accept any gift, donation, bequest, grant or
275	275	other source of money to carry out the provisions of this title.
276	276	5. Execute all instruments necessary or convenient for carrying
277	277	out the provisions of this title.
278	278	6. Prepare, publish and distribute such studies, reports,
279	279	bulletins and other materials as the Board deems appropriate.
280	280	7. Refer cases to the Attorney General for criminal prosecution.
281	281	8. Maintain an official Internet website for the Board.
282	282	9. Monitor federal activity regarding cannabis and report its
283	283	findings to the Legislature.
284	284	10. Employ the services of such persons the Board considers
285	285	necessary for the purposes of hearing disciplinary proceedings.
286	286	11. In accordance with NRS 179.1156 to 179.121, inclusive,
287	287	seize and destroy cannabis and cannabis products involved in
288	288	unlicensed cannabis activities.
289	289	12. Commit resources and take action to address unlicensed
290	290	cannabis activities, including, without limitation:
291	291	(a) Investigating and referring matters involving unlicensed
292	292	cannabis activities to the appropriate state or local law
293	293	– 7 –
294	294
295	295
296	296	- 82nd Session (2023)
297	297	enforcement agency, including, without limitation, the
298	298	Investigation Division of the Department of Public Safety and the
299	299	Attorney General, for further investigation and possible criminal
300	300	prosecution;
301	301	(b) Educating the public through various types of media and
302	302	communication and other forms of public outreach on the dangers
303	303	and illegality of unlicensed cannabis activities and the importance
304	304	of having cannabis establishments which are licensed and
305	305	regulated;
306	306	(c) Creating a system through which the public, licensees and
307	307	registrants may file confidential reports of unlicensed cannabis
308	308	activities; and
309	309	(d) Imposing penalties against persons who engage in
310	310	unlicensed cannabis activities in accordance with the regulations
311	311	adopted by the Board pursuant to NRS 678A.450.
312	312	Sec. 1.7. NRS 678A.450 is hereby amended to read as
313	313	follows:
314	314	678A.450 1. The Board may adopt regulations necessary or
315	315	convenient to carry out the provisions of this title. Such regulations
316	316	may include, without limitation:
317	317	(a) Financial requirements for licensees.
318	318	(b) Establishing such education, outreach, investigative and
319	319	enforcement mechanisms as the Board deems necessary to ensure
320	320	the compliance of a licensee or registrant with the provisions of this
321	321	title. Such mechanisms must include, without limitation:
322	322	(1) A system to educate, train and certify employees of the
323	323	Board which:
324	324	(I) Each member must complete before he or she may
325	325	engage in inspections, investigations or audits; and
326	326	(II) At a minimum, includes training that is the same or
327	327	substantially similar to any training that is required by the Board
328	328	by regulation to be completed by a cannabis establishment agent
329	329	before he or she may be employed by, volunteer at or provide labor
330	330	to a cannabis establishment;
331	331	(2) A system to educate and advise licensees and registrants
332	332	on compliance with the provisions of this title which may serve as
333	333	an alternative to disciplinary action; and
334	334	(3) Establishing specific grounds for disciplinary action
335	335	against a licensee or registrant who knowingly violates the law or
336	336	engages in grossly negligent, unlawful or criminal conduct or an
337	337	act or omission that poses an imminent threat to the health or
338	338	safety of the public.
339	339	– 8 –
340	340
341	341
342	342	- 82nd Session (2023)
343	343	(c) Requirements for licensees or registrants relating to the
344	344	cultivation, processing, manufacture, transport, distribution, testing,
345	345	study, advertising and sale of cannabis and cannabis products.
346	346	(d) Policies and procedures to ensure that the cannabis industry
347	347	in this State is economically competitive, inclusive of racial
348	348	minorities, women and persons and communities that have been
349	349	adversely affected by cannabis prohibition and accessible to persons
350	350	of low-income seeking to start a business.
351	351	(e) Policies and procedures governing the circumstances under
352	352	which the Board may waive the requirement to obtain a registration
353	353	card pursuant to this title for any person who holds an ownership
354	354	interest of less than 5 percent in any one cannabis establishment or
355	355	an ownership interest in more than one cannabis establishment of
356	356	the same type that, when added together, is less than 5 percent.
357	357	(f) Policies and procedures relating to the disclosure of the
358	358	identities of the shareholders and the annual report of a cannabis
359	359	establishment that is a publicly traded company.
360	360	(g) Reasonable restrictions on the signage, marketing, display
361	361	and advertising of cannabis establishments. Such a restriction must
362	362	not require a cannabis establishment to obtain the approval of the
363	363	Board before using a logo, sign or advertisement.
364	364	[(g)] (h) Provisions governing the sales of products and
365	365	commodities made from hemp, as defined in NRS 557.160, or
366	366	containing cannabidiol by cannabis establishments.
367	367	[(h)] (i) Requirements relating to the packaging and labeling of
368	368	cannabis and cannabis products.
369	369	2. The Board shall adopt regulations providing for the
370	370	gathering and maintenance of comprehensive demographic
371	371	information, including, without limitation, information regarding
372	372	race, ethnicity, age and gender, concerning each:
373	373	(a) Owner and manager of a cannabis establishment.
374	374	(b) Holder of a cannabis establishment agent registration card.
375	375	3. The Board shall adopt regulations providing for the
376	376	investigation of unlicensed cannabis activities and the imposition
377	377	of penalties against persons who engage in such activities. Such
378	378	regulations must, without limitation:
379	379	(a) Establish penalties to be imposed for unlicensed cannabis
380	380	activities, which may include, without limitation, the issuance of a
381	381	cease and desist order or citation, the imposition of an
382	382	administrative fine or civil penalty and other similar penalties.
383	383	(b) Set forth the procedures by which the Board may impose a
384	384	penalty against a person for engaging in unlicensed cannabis
385	385	activities.
386	386	– 9 –
387	387
388	388
389	389	- 82nd Session (2023)
390	390	(c) Set forth the circumstances under which the Board is
391	391	required to refer matters concerning unlicensed cannabis
392	392	activities to an appropriate state or local law enforcement agency.
393	393	4. The Board shall transmit the information gathered and
394	394	maintained pursuant to subsection 2 to the Director of the
395	395	Legislative Counsel Bureau for transmission to the Legislature on or
396	396	before January 1 of each odd-numbered year.
397	397	[4.] 5. The Board shall, by regulation, establish a pilot
398	398	program for identifying opportunities for an emerging small
399	399	cannabis business to participate in the cannabis industry. As used in
400	400	this subsection, “emerging small cannabis business” means a
401	401	cannabis-related business that:
402	402	(a) Is in existence, operational and operated for a profit;
403	403	(b) Maintains its principal place of business in this State; and
404	404	(c) Satisfies requirements for the number of employees and
405	405	annual gross revenue established by the Board by regulation.
406	406	Sec. 1.9. NRS 678A.510 is hereby amended to read as
407	407	follows:
408	408	678A.510 1. If the Executive Director transmits the details of
409	409	a suspected violation to the Attorney General pursuant to NRS
410	410	678A.500, the Attorney General shall conduct an investigation of
411	411	the suspected violation to determine whether it warrants proceedings
412	412	for disciplinary action of the licensee or registrant. If the Attorney
413	413	General determines that further proceedings are warranted, he or she
414	414	shall report the results of the investigation together with a
415	415	recommendation to the Executive Director in a manner which does
416	416	not violate the right of the person charged in the complaint to due
417	417	process in any later hearing on the complaint. The Executive
418	418	Director shall transmit the recommendation and other information
419	419	received from the Attorney General to the Board.
420	420	2. The Board shall promptly make a determination with respect
421	421	to each complaint resulting in an investigation by the Attorney
422	422	General. The Board shall:
423	423	(a) Dismiss the complaint; or
424	424	(b) Proceed with appropriate disciplinary action in accordance
425	425	with NRS 678A.520 to 678A.600, inclusive, chapter 233B of NRS
426	426	and the regulations adopted by the Board.
427	427	Sec. 2. NRS 678A.540 is hereby amended to read as follows:
428	428	678A.540 1. At all hearings before the Board:
429	429	(a) Oral evidence may be taken only upon oath or affirmation
430	430	administered by the Board.
431	431	(b) Every party has the right to:
432	432	(1) Call and examine witnesses;
433	433	– 10 –
434	434
435	435
436	436	- 82nd Session (2023)
437	437	(2) Introduce exhibits relevant to the issues of the case;
438	438	(3) Cross-examine opposing witnesses on any matters
439	439	relevant to the issues of the case, even though the matter was not
440	440	covered in a direct examination;
441	441	(4) Impeach any witness regardless of which party first
442	442	called the witness to testify; and
443	443	(5) Offer rebuttal evidence.
444	444	(c) If the respondent does not testify in his or her own behalf,
445	445	the respondent may be called and examined as if under
446	446	cross-examination.
447	447	(d) The hearing need not be conducted according to technical
448	448	rules relating to evidence and witnesses [.] , except that those
449	449	prescribed in NRS 233B.123 apply. Any relevant evidence that is
450	450	not immaterial or unduly repetitious may be admitted and is
451	451	sufficient in itself to support a finding if it is the sort of evidence on
452	452	which responsible persons are accustomed to rely in the conduct of
453	453	serious affairs, regardless of the existence of any common law or
454	454	statutory rule which might make improper the admission of such
455	455	evidence over objection in a civil action.
456	456	(e) The parties or their counsel may by written stipulation agree
457	457	that certain specified evidence may be admitted even though such
458	458	evidence might otherwise be subject to objection.
459	459	2. The Board may take official notice of any generally accepted
460	460	information or technical or scientific matter within the field of
461	461	cannabis, and of any other fact which may be judicially noticed by
462	462	the courts of this State. The parties must be informed of any
463	463	information, matters or facts so noticed, and must be given a
464	464	reasonable opportunity, on request, to refute such information,
465	465	matters or facts by evidence or by written or oral presentation of
466	466	authorities, the manner of such refutation to be determined by the
467	467	Board.
468	468	3. Affidavits may be received in evidence at any hearing of the
469	469	Board in accordance with the following:
470	470	(a) The party wishing to use an affidavit must, not less than 10
471	471	days before the day set for hearing, serve upon the opposing party or
472	472	counsel, either personally or by registered or certified mail, a copy
473	473	of the affidavit which the party proposes to introduce in evidence
474	474	together with a notice as provided in paragraph (c).
475	475	(b) Unless the opposing party, within 7 days after such service,
476	476	mails or delivers to the proponent a request to cross-examine the
477	477	affiant, the opposing party’s right to cross-examine the affiant is
478	478	waived and the affidavit, if introduced in evidence, must be given
479	479	the same effect as if the affiant had testified orally. If an opportunity
480	480	– 11 –
481	481
482	482
483	483	- 82nd Session (2023)
484	484	to cross-examine an affiant is not afforded after request therefor is
485	485	made in accordance with this paragraph, the affidavit may be
486	486	introduced in evidence, but must be given only the same effect as
487	487	other hearsay evidence.
488	488	(c) The notice referred to in paragraph (a) must be substantially
489	489	in the following form:
490	490
491	491	The accompanying affidavit of (here insert name of
492	492	affiant) will be introduced as evidence at the hearing set for
493	493	the ........ day of the month of ………. of the year …… (Here
494	494	insert name of affiant) will not be called to testify orally and
495	495	you will not be entitled to question (here insert name of
496	496	affiant) unless you notify the undersigned that you wish to
497	497	cross-examine (here insert name of affiant). To be effective
498	498	your request must be mailed or delivered to the undersigned
499	499	on or before 7 days from the date this notice and the enclosed
500	500	affidavit are served upon you.
501	501
502	502	..................................................
503	503	(Party or Counsel)
504	504	..................................................
505	505	(Address)
506	506	Sec. 3. NRS 678A.590 is hereby amended to read as follows:
507	507	678A.590 1. Within 60 days after the hearing of a contested
508	508	matter, the Board shall render a written decision on the merits .
509	509	[which] Except as otherwise provided in subsection 5 of NRS
510	510	233B.121, the written decision must contain findings of fact [,] and
511	511	conclusions of law which are separately stated, a determination of
512	512	the issues presented and the penalty to be imposed, if any. The
513	513	Board shall thereafter make and enter its written order in conformity
514	514	to its decision. No member of the Board who did not hear the
515	515	evidence may vote on the decision. The affirmative votes of a
516	516	majority of the whole Board are required to impose any penalty.
517	517	Copies of the decision and order must be served on the parties
518	518	personally or sent to them by registered or certified mail. The
519	519	decision is effective upon such service, unless the Board orders
520	520	otherwise.
521	521	2. The Board may, upon motion made within [10] 15 days after
522	522	service of a decision and order, order a rehearing before the Board
523	523	upon such terms and conditions as it may deem just and proper if a
524	524	petition for judicial review of the decision and order has not been
525	525	filed. The motion must not be granted except upon a showing that
526	526	there is additional evidence which is material and necessary and
527	527	– 12 –
528	528
529	529
530	530	- 82nd Session (2023)
531	531	reasonably calculated to change the decision of the Board, and that
532	532	sufficient reason existed for failure to present the evidence at the
533	533	hearing of the Board. The motion must be supported by an affidavit
534	534	of the moving party or his or her counsel showing with particularity
535	535	the materiality and necessity of the additional evidence and the
536	536	reason why it was not introduced at the hearing. Upon rehearing,
537	537	rebuttal evidence to the additional evidence must be permitted. After
538	538	rehearing, the Board may modify its decision and order as the
539	539	additional evidence may warrant.
540	540	Sec. 4. NRS 678A.610 is hereby amended to read as follows:
541	541	678A.610 [1.] Any person aggrieved by a final decision or
542	542	order of the Board made after hearing or rehearing by the Board
543	543	pursuant to NRS 678A.520 to 678A.600, inclusive, and whether or
544	544	not a motion for rehearing was filed, [may obtain a] is entitled to
545	545	judicial review [thereof in the district court of the county in which
546	546	the petitioner resides or has his, her or its principal place of
547	547	business.
548	548	2. The judicial review must be instituted by filing a petition
549	549	within 20 days after the effective date of the final decision or order.
550	550	A petition may not be filed while a motion for rehearing or a
551	551	rehearing is pending before the Board. The petition must set forth
552	552	the order or decision appealed from and the grounds or reasons why
553	553	petitioner contends a reversal or modification should be ordered.
554	554	3. Copies of the petition must be served upon the Board and all
555	555	other parties of record, or their counsel of record, either personally
556	556	or by certified mail.
557	557	4. The court, upon a proper showing, may permit other
558	558	interested persons to intervene as parties to the appeal or as friends
559	559	of the court.
560	560	5. The filing of the petition does not stay enforcement of the
561	561	decision or order of the Board, but the Board itself may grant a stay
562	562	upon such terms and conditions as it deems proper.] of the decision
563	563	or order in the manner provided by chapter 233B of NRS.
564	564	Sec. 4.3. NRS 281A.410 is hereby amended to read as
565	565	follows:
566	566	281A.410 In addition to the requirements of the code of ethical
567	567	standards and the other provisions of this chapter:
568	568	1. [If] Except as otherwise provided in NRS 678A.360, if a
569	569	public officer or employee serves in a state agency of the Executive
570	570	Department or an agency of any county, city or other political
571	571	subdivision, the public officer or employee:
572	572	(a) Shall not accept compensation from any private person to
573	573	represent or counsel the private person on any issue pending before
574	574	– 13 –
575	575
576	576
577	577	- 82nd Session (2023)
578	578	the agency in which that public officer or employee serves, if the
579	579	agency makes decisions; and
580	580	(b) If the public officer or employee leaves the service of the
581	581	agency, shall not, for 1 year after leaving the service of the agency,
582	582	represent or counsel for compensation a private person upon any
583	583	issue which was under consideration by the agency during the
584	584	public officer’s or employee’s service. As used in this paragraph,
585	585	“issue” includes a case, proceeding, application, contract or
586	586	determination, but does not include the proposal or consideration of
587	587	legislative measures or administrative regulations.
588	588	2. Except as otherwise provided in subsection 3, a State
589	589	Legislator or a member of a local legislative body, or a public
590	590	officer or employee whose public service requires less than half of
591	591	his or her time, may represent or counsel a private person before an
592	592	agency in which he or she does not serve.
593	593	3. A member of a local legislative body shall not represent or
594	594	counsel a private person for compensation before another local
595	595	agency if the territorial jurisdiction of the other local agency
596	596	includes any part of the county in which the member serves. The
597	597	Commission may relieve the member from the strict application of
598	598	the provisions of this subsection if:
599	599	(a) The member files a request for an advisory opinion from the
600	600	Commission pursuant to NRS 281A.675; and
601	601	(b) The Commission determines that such relief is not contrary
602	602	to:
603	603	(1) The best interests of the public;
604	604	(2) The continued ethical integrity of each local agency
605	605	affected by the matter; and
606	606	(3) The provisions of this chapter.
607	607	4. For the purposes of subsection 3, the request for an advisory
608	608	opinion, the advisory opinion and all meetings, hearings and
609	609	proceedings of the Commission in such a matter are governed by the
610	610	provisions of NRS 281A.670 to 281A.690, inclusive.
611	611	5. Unless permitted by this section, a public officer or
612	612	employee shall not represent or counsel a private person for
613	613	compensation before any state agency of the Executive or
614	614	Legislative Department.
615	615	Sec. 4.6. NRS 281A.550 is hereby amended to read as
616	616	follows:
617	617	281A.550 1. A former member of the Public Utilities
618	618	Commission of Nevada shall not:
619	619	(a) Be employed by a public utility or parent organization or
620	620	subsidiary of a public utility; or
621	621	– 14 –
622	622
623	623
624	624	- 82nd Session (2023)
625	625	(b) Appear before the Public Utilities Commission of Nevada to
626	626	testify on behalf of a public utility or parent organization or
627	627	subsidiary of a public utility,
628	628	 for 1 year after the termination of the member’s service on the
629	629	Public Utilities Commission of Nevada.
630	630	2. A former member of the Nevada Gaming Control Board or
631	631	the Nevada Gaming Commission shall not:
632	632	(a) Appear before the Nevada Gaming Control Board or the
633	633	Nevada Gaming Commission on behalf of a person who holds a
634	634	license issued pursuant to chapter 463 or 464 of NRS or who is
635	635	required to register with the Nevada Gaming Commission pursuant
636	636	to chapter 463 of NRS; or
637	637	(b) Be employed by such a person,
638	638	 for 1 year after the termination of the member’s service on the
639	639	Nevada Gaming Control Board or the Nevada Gaming Commission.
640	640	3. In addition to the prohibitions set forth in subsections 1 and
641	641	2, and except as otherwise provided in subsections 4 and 6 [,] and
642	642	NRS 678A.360, a former public officer or employee of a board,
643	643	commission, department, division or other agency of the Executive
644	644	Department of State Government, except a clerical employee, shall
645	645	not solicit or accept employment from a business or industry whose
646	646	activities are governed by regulations adopted by the board,
647	647	commission, department, division or other agency for 1 year after
648	648	the termination of the former public officer’s or employee’s service
649	649	or period of employment if:
650	650	(a) The former public officer’s or employee’s principal duties
651	651	included the formulation of policy contained in the regulations
652	652	governing the business or industry;
653	653	(b) During the immediately preceding year, the former public
654	654	officer or employee directly performed activities, or controlled or
655	655	influenced an audit, decision, investigation or other action, which
656	656	significantly affected the business or industry which might, but for
657	657	this section, employ the former public officer or employee; or
658	658	(c) As a result of the former public officer’s or employee’s
659	659	governmental service or employment, the former public officer or
660	660	employee possesses knowledge of the trade secrets of a direct
661	661	business competitor.
662	662	4. The provisions of subsection 3 do not apply to a former
663	663	public officer who was a member of a board, commission or similar
664	664	body of the State if:
665	665	(a) The former public officer is engaged in the profession,
666	666	occupation or business regulated by the board, commission or
667	667	similar body;
668	668	– 15 –
669	669
670	670
671	671	- 82nd Session (2023)
672	672	(b) The former public officer holds a license issued by the
673	673	board, commission or similar body; and
674	674	(c) Holding a license issued by the board, commission or similar
675	675	body is a requirement for membership on the board, commission or
676	676	similar body.
677	677	5. Except as otherwise provided in subsection 6, a former
678	678	public officer or employee of the State or a political subdivision,
679	679	except a clerical employee, shall not solicit or accept employment
680	680	from a person to whom a contract for supplies, materials, equipment
681	681	or services was awarded by the State or political subdivision, as
682	682	applicable, for 1 year after the termination of the officer’s or
683	683	employee’s service or period of employment, if:
684	684	(a) The amount of the contract exceeded $25,000;
685	685	(b) The contract was awarded within the 12-month period
686	686	immediately preceding the termination of the officer’s or
687	687	employee’s service or period of employment; and
688	688	(c) The position held by the former public officer or employee at
689	689	the time the contract was awarded allowed the former public officer
690	690	or employee to affect or influence the awarding of the contract.
691	691	6. A current or former public officer or employee may file a
692	692	request for an advisory opinion pursuant to NRS 281A.675
693	693	concerning the application of the relevant facts in that person’s case
694	694	to the provisions of subsection 3 or 5, as applicable, and determine
695	695	whether relief from the strict application of those provisions is
696	696	proper. If the Commission determines that relief from the strict
697	697	application of the provisions of subsection 3 or 5, as applicable, is
698	698	not contrary to:
699	699	(a) The best interests of the public;
700	700	(b) The continued ethical integrity of the State Government or
701	701	political subdivision, as applicable; and
702	702	(c) The provisions of this chapter,
703	703	 it may issue an advisory opinion to that effect and grant such
704	704	relief.
705	705	7. For the purposes of subsection 6, the request for an advisory
706	706	opinion, the advisory opinion and all meetings, hearings and
707	707	proceedings of the Commission in such a matter are governed by the
708	708	provisions of NRS 281A.670 to 281A.690, inclusive.
709	709	8. The advisory opinion does not relieve the current or former
710	710	public officer or employee from the strict application of any
711	711	provision of NRS 281A.410.
712	712	9. For the purposes of this section:
713	713	– 16 –
714	714
715	715
716	716	- 82nd Session (2023)
717	717	(a) A former member of the Public Utilities Commission of
718	718	Nevada, the Nevada Gaming Control Board or the Nevada Gaming
719	719	Commission; or
720	720	(b) Any other former public officer or employee governed by
721	721	this section,
722	722	 is employed by or is soliciting or accepting employment from a
723	723	business, industry or other person described in this section if any
724	724	oral or written agreement is sought, negotiated or exists during
725	725	the restricted period pursuant to which the personal services of the
726	726	public officer or employee are provided or will be provided to the
727	727	business, industry or other person, even if such an agreement does
728	728	not or will not become effective until after the restricted period.
729	729	10. As used in this section, “regulation” has the meaning
730	730	ascribed to it in NRS 233B.038 and also includes regulations
731	731	adopted by a board, commission, department, division or other
732	732	agency of the Executive Department of State Government that is
733	733	exempted from the requirements of chapter 233B of NRS.
734	734	Sec. 5. NRS 233B.039 is hereby amended to read as follows:
735	735	233B.039 1. The following agencies are entirely exempted
736	736	from the requirements of this chapter:
737	737	(a) The Governor.
738	738	(b) Except as otherwise provided in NRS 209.221 and 209.2473,
739	739	the Department of Corrections.
740	740	(c) The Nevada System of Higher Education.
741	741	(d) The Office of the Military.
742	742	(e) The Nevada Gaming Control Board.
743	743	(f) Except as otherwise provided in NRS 368A.140 and 463.765,
744	744	the Nevada Gaming Commission.
745	745	(g) Except as otherwise provided in NRS 425.620, the Division
746	746	of Welfare and Supportive Services of the Department of Health and
747	747	Human Services.
748	748	(h) Except as otherwise provided in NRS 422.390, the Division
749	749	of Health Care Financing and Policy of the Department of Health
750	750	and Human Services.
751	751	(i) Except as otherwise provided in NRS 533.365, the Office of
752	752	the State Engineer.
753	753	(j) The Division of Industrial Relations of the Department of
754	754	Business and Industry acting to enforce the provisions of
755	755	NRS 618.375.
756	756	(k) The Administrator of the Division of Industrial Relations of
757	757	the Department of Business and Industry in establishing and
758	758	adjusting the schedule of fees and charges for accident benefits
759	759	pursuant to subsection 2 of NRS 616C.260.
760	760	– 17 –
761	761
762	762
763	763	- 82nd Session (2023)
764	764	(l) The Board to Review Claims in adopting resolutions to carry
765	765	out its duties pursuant to NRS 445C.310.
766	766	(m) The Silver State Health Insurance Exchange.
767	767	[(n) The Cannabis Compliance Board.]
768	768	2. Except as otherwise provided in subsection 5 and NRS
769	769	391.323, the Department of Education, the Board of the Public
770	770	Employees’ Benefits Program and the Commission on Professional
771	771	Standards in Education are subject to the provisions of this chapter
772	772	for the purpose of adopting regulations but not with respect to any
773	773	contested case.
774	774	3. The special provisions of:
775	775	(a) Chapter 612 of NRS for the adoption of an emergency
776	776	regulation or the distribution of regulations by and the judicial
777	777	review of decisions of the Employment Security Division of the
778	778	Department of Employment, Training and Rehabilitation;
779	779	(b) Chapters 616A to 617, inclusive, of NRS for the
780	780	determination of contested claims;
781	781	(c) Chapter 91 of NRS for the judicial review of decisions of the
782	782	Administrator of the Securities Division of the Office of the
783	783	Secretary of State; and
784	784	(d) NRS 90.800 for the use of summary orders in contested
785	785	cases,
786	786	 prevail over the general provisions of this chapter.
787	787	4. The provisions of NRS 233B.122, 233B.124, 233B.125 and
788	788	233B.126 do not apply to the Department of Health and Human
789	789	Services in the adjudication of contested cases involving the
790	790	issuance of letters of approval for health facilities and agencies.
791	791	5. The provisions of this chapter do not apply to:
792	792	(a) Any order for immediate action, including, but not limited
793	793	to, quarantine and the treatment or cleansing of infected or infested
794	794	animals, objects or premises, made under the authority of the State
795	795	Board of Agriculture, the State Board of Health, or any other agency
796	796	of this State in the discharge of a responsibility for the preservation
797	797	of human or animal health or for insect or pest control;
798	798	(b) An extraordinary regulation of the State Board of Pharmacy
799	799	adopted pursuant to NRS 453.2184;
800	800	(c) A regulation adopted by the State Board of Education
801	801	pursuant to NRS 388.255 or 394.1694;
802	802	(d) The judicial review of decisions of the Public Utilities
803	803	Commission of Nevada;
804	804	(e) The adoption, amendment or repeal of policies by the
805	805	Rehabilitation Division of the Department of Employment, Training
806	806	and Rehabilitation pursuant to NRS 426.561 or 615.178;
807	807	– 18 –
808	808
809	809
810	810	- 82nd Session (2023)
811	811	(f) The adoption or amendment of a rule or regulation to be
812	812	included in the State Plan for Services for Victims of Crime by the
813	813	Department of Health and Human Services pursuant to
814	814	NRS 217.130;
815	815	(g) The adoption, amendment or repeal of rules governing the
816	816	conduct of contests and exhibitions of unarmed combat by the
817	817	Nevada Athletic Commission pursuant to NRS 467.075;
818	818	(h) The adoption, amendment or repeal of regulations by the
819	819	Director of the Department of Health and Human Services pursuant
820	820	to NRS 447.335 to 447.350, inclusive;
821	821	(i) The adoption, amendment or repeal of standards of content
822	822	and performance for courses of study in public schools by the
823	823	Council to Establish Academic Standards for Public Schools and the
824	824	State Board of Education pursuant to NRS 389.520;
825	825	(j) The adoption, amendment or repeal of the statewide plan to
826	826	allocate money from the Fund for a Resilient Nevada created by
827	827	NRS 433.732 established by the Department of Health and Human
828	828	Services pursuant to paragraph (b) of subsection 1 of NRS 433.734;
829	829	or
830	830	(k) The adoption or amendment of a data request by the
831	831	Commissioner of Insurance pursuant to NRS 687B.404.
832	832	6. The State Board of Parole Commissioners is subject to the
833	833	provisions of this chapter for the purpose of adopting regulations but
834	834	not with respect to any contested case.
835	835	Sec. 5.3. NRS 453.096 is hereby amended to read as follows:
836	836	453.096 1. “Marijuana” means:
837	837	(a) All parts of any plant of the genus Cannabis, whether
838	838	growing or not;
839	839	(b) The seeds thereof;
840	840	(c) The resin extracted from any part of the plant, including
841	841	concentrated cannabis;
842	842	(d) Every compound, manufacture, salt, derivative, mixture or
843	843	preparation of the plant, its seeds or resin;
844	844	(e) Any commodity or product made using hemp which exceeds
845	845	the maximum THC concentration established by the State
846	846	Department of Agriculture for hemp; and
847	847	(f) Any product or commodity made from hemp which is
848	848	manufactured or sold by a cannabis establishment which violates
849	849	any regulation adopted by the Cannabis Compliance Board pursuant
850	850	to paragraph [(g)] (h) of subsection 1 of NRS 678A.450 relating to
851	851	THC concentration.
852	852	2. “Marijuana” does not include:
853	853	– 19 –
854	854
855	855
856	856	- 82nd Session (2023)
857	857	(a) Hemp, as defined in NRS 557.160, which is grown or
858	858	cultivated pursuant to the provisions of chapter 557 of NRS;
859	859	(b) The mature stalks of the plant, fiber produced from the
860	860	stalks, oil or cake made from the seeds of the plant, any other
861	861	compound, manufacture, salt, derivative, mixture or preparation of
862	862	the mature stalks (except the resin extracted therefrom), fiber, oil or
863	863	cake, or the sterilized seed of the plant which is incapable of
864	864	germination; or
865	865	(c) Any commodity or product made using hemp, as defined in
866	866	NRS 557.160, which does not exceed the maximum THC
867	867	concentration established by the State Department of Agriculture for
868	868	hemp.
869	869	Sec. 5.4. 1. The terms of the members of the Board
870	870	described in subsections 5, 6 and 7 of NRS 678A.360, as amended
871	871	by section 1.3 of this act, who are incumbent on June 30, 2024,
872	872	expire on that date. On or before July 1, 2024, the Governor shall
873	873	appoint to the Board the members described in subsections 5, 6 and
874	874	7 of NRS 678A.360, as amended by section 1.3 of this act, to terms
875	875	that commence on July 1, 2024, and expire on June 30, 2028.
876	876	2. The terms of the members of the Board described in
877	877	subsections 8 and 9 of NRS 678A.360, as amended by section 1.3 of
878	878	this act, who are incumbent on June 30, 2025, expire on that date.
879	879	On or before July 1, 2025, the Governor shall appoint to the Board
880	880	the members described in subsections 8 and 9 of NRS 678A.360, as
881	881	amended by section 1.3 of this act, to terms that commence on
882	882	July 1, 2025, and expire on June 30, 2029.
883	883	3. Notwithstanding the amendatory provisions of section 1.3 of
884	884	this act, any appointment of a member to the Board that is made:
885	885	(a) For a member described in subsection 5, 6 or 7 of NRS
886	886	678A.360, as amended by section 1.3 of this act, before the
887	887	appointment of the members required to be appointed pursuant to
888	888	subsection 1 must be made in accordance with NRS 678A.360 and
889	889	678A.370, as those sections existed before the effective date of this
890	890	act.
891	891	(b) For a member described in subsection 8 or 9 of NRS
892	892	678A.360, as amended by section 1.3 of this act, before the
893	893	appointment of the members required to be appointed pursuant to
894	894	subsection 2 must be made in accordance with NRS 678A.360 and
895	895	678A.370, as those sections existed before the effective date of this
896	896	act.
897	897	Sec. 5.5. The amendatory provisions of sections 2, 3, 4 and 6
898	898	of this act apply to any judicial or administrative proceedings
899	899	commenced on or after the effective date of this act.
900	900	– 20 –
901	901
902	902
903	903	- 82nd Session (2023)
904	904	Sec. 5.7. The amendatory provisions of sections 5 and 6 of this
905	905	act apply to regulations which are proposed by the Cannabis
906	906	Compliance Board on or after the effective date of this act.
907	907	Sec. 6. NRS 678A.460, 678A.560, 678A.620, 678A.630 and
908	908	678A.640 are hereby repealed.
909	909	Sec. 7. This act becomes effective upon passage and approval.
910	910
911	911	20 ~~~~~ 23