A.B. 76 - *AB76* ASSEMBLY BILL NO. 76–COMMITTEE ON JUDICIARY (ON BEHALF OF THE CANNABIS COMPLIANCE BOARD) PREFILED NOVEMBER 20, 2024 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to cannabis. (BDR 56-286) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to cannabis; revising provisions relating to the confidentiality of certain information relating to cannabis; revising provisions governing certain disciplinary proceedings; prohibiting certain transportation of cannabis and cannabis products under certain circumstances; revising provisions relating to the operation of a cannabis establishment; authorizing the Cannabis Compliance Board to issue summonses and subpoenas and take certain other actions relating to unlicensed cannabis activities; revising provisions relating to the licensing of a cannabis establishment; revising provisions relating to cannabis independent testing laboratories; revising provisions relating to advertising engaged in and packaging used by a cannabis establishment; authorizing certain cannabis establishments to engage in certain activities involving hemp; exempting certain persons from state prosecution for certain criminal offenses under certain circumstances; making various other changes relating to the regulation of cannabis; and providing other matters properly relating thereto. – 2 – - *AB76* Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of persons and 1 establishments involved in the cannabis industry in this State by the Cannabis 2 Compliance Board. (Title 56 of NRS) Existing law sets forth procedures by which 3 the Board may take disciplinary action against a licensee or registrant. (NRS 4 678A.500-678A.600) Under existing law, the Executive Director of the Board is 5 authorized to transmit the details of any suspected violation of the provisions of 6 existing law and regulations that govern the medical and adult use of cannabis to 7 the Attorney General for an investigation. (NRS 678A.500) After the investigation, 8 existing law requires the Board to determine whether to proceed with disciplinary 9 action against a licensee or registrant. (NRS 678A.510) If the Board proceeds with 10 disciplinary action, existing law: (1) requires the Board or the Executive Director to 11 serve a complaint upon the respondent; and (2) sets forth procedures for the 12 conduct of a disciplinary hearing before the Board. (NRS 678A.520-678A.590) If 13 the Board determines that a licensee or registrant has violated a provision of 14 existing law or regulations governing the medical and adult use of cannabis, 15 existing law authorizes the Board to impose certain penalties against the licensee or 16 registrant. (NRS 678A.600) 17 Sections 6, 11 and 13-24 of this bill revise the procedures by which 18 disciplinary action may be taken against a licensee or registrant. Section 13 19 specifies that the Executive Director is authorized to transmit the details of a 20 suspected violation to the Attorney General for further investigation. Section 24 21 makes a conforming change to reflect the fact that an investigation of a violation is 22 commenced by the Executive Director, rather than the Board. Section 14 requires 23 the Executive Director, rather than the Board, to make the determination whether to 24 proceed with disciplinary action. If the Executive Director makes a determination 25 to proceed, section 15 requires the Executive Director to serve upon the respondent 26 either a complaint or notice of violation. Section 11 requires the Board to adopt 27 regulations prescribing a list of violations which are appropriate for the issuance of 28 a notice of violation. Section 15 revises the required content of a complaint and sets 29 forth the required content of a notice of violation. Under section 15, if the 30 Executive Director serves a notice of violation, the Executive Director may seek 31 only the imposition of a civil penalty. Section 15 requires the respondent to either 32 answer the complaint or notice of violation or, for a notice of violation, pay the 33 civil penalty being sought. Upon receipt of an answer demanding a hearing or the 34 expiration of the time to answer the complaint or notice of violation, section 15 35 requires the Executive Director to assign the matter to a hearing officer. Sections 36 15-23 require a disciplinary hearing to be heard before a hearing officer, rather than 37 the Board, and revise procedures for the conduct of such a hearing. Section 6: (1) 38 provides that the decision and order of a hearing officer is final unless a party 39 aggrieved by the decision requests that the Board review the decision or the Board 40 initiates such a review on its own motion; and (2) sets forth procedures for the 41 conduct of a review by the Board. Section 23 provides that any person aggrieved 42 by a final decision or order of the Board after a review conducted pursuant to 43 section 6 is entitled to judicial review of the decision or order. 44 Section 5 of this bill requires the Board to appoint one or more hearing officers 45 to conduct disciplinary hearings and render decisions. 46 Section 26 of this bill authorizes the Board, the Executive Director or a 47 designee of the Executive Director to issue a letter of warning, a letter of concern or 48 a nonpunitive admonishment under certain circumstances. 49 Existing law requires the Board to adopt regulations providing for the 50 investigation of unlicensed cannabis activities and the imposition of penalties 51 against persons who engage in such activities. (NRS 678A.450) Section 11 52 authorizes the Board to issue summonses and subpoenas and to take certain other 53 actions in connection with such an investigation. 54 – 3 – - *AB76* Sections 4, 12 and 54 of this bill revise provisions relating to the 55 confidentiality of certain information obtained by the Board. Existing law 56 authorizes the Governor or his or her designee to enter into one or more agreements 57 with tribal governments concerning cannabis. (NRS 223.250) Sections 52 and 53 58 of this bill provide that certain information received by a governmental entity 59 pursuant to the terms of such an agreement does not constitute a public record and 60 is confidential. 61 Sections 2, 7, 33, 34, 37 and 38 of this bill establish a standardized definition 62 of the term “local governmental jurisdiction” for the purposes of provisions 63 governing the medical and adult use of cannabis. 64 Existing law prohibits the production, distribution and sale of any synthetic 65 cannabinoid. (NRS 453.572, 557.255, 678B.525) Section 10 of this bill revises the 66 definition of “synthetic cannabinoid” to: (1) specify that any cannabinoid that is 67 either produced artificially or not obtained directly without the use of chemicals 68 from a plant of the genus Cannabis constitutes a synthetic cannabinoid; and (2) 69 exclude delta-9-tetrahydrocannabinol produced using certain processes. 70 Existing law requires a cannabis establishment to use an inventory control 71 system. (NRS 678B.210, 678B.250, 678C.430) Existing law sets forth certain 72 requirements for the operation of such a system by a medical cannabis 73 establishment. (NRS 678B.430) Sections 27, 31, 32, 35 and 45 of this bill revise 74 those requirements and additionally apply the requirements to the operation of such 75 a system by an adult-use cannabis establishment. Sections 45 and 49 of this bill 76 revise requirements for a dual licensee concerning the reporting of inventory. 77 Existing law authorizes a medical cannabis establishment to: (1) transport 78 medical cannabis to another cannabis establishment or between the buildings of the 79 medical cannabis establishment; and (2) enter into a contract with a third party to 80 provide such transportation. (NRS 678C.460) Existing law, with certain exceptions, 81 prohibits an adult-use cannabis establishment from transporting cannabis or 82 cannabis products to an adult-use cannabis retail store unless the adult-use cannabis 83 establishment holds an adult-use cannabis establishment license for an adult-use 84 cannabis distributor. (NRS 678D.410, 678D.440) Section 46 of this bill eliminates 85 the authorization for a medical cannabis establishment to transport cannabis or 86 cannabis products and to enter into a contract with a third party to transport 87 cannabis or cannabis products. Section 28 of this bill instead prohibits, with certain 88 exceptions, any cannabis establishment from transporting cannabis or cannabis 89 products to another cannabis establishment or between the buildings of a cannabis 90 establishment unless the cannabis establishment holds an adult-use 91 cannabis establishment license for an adult-use cannabis distributor. Section 50 of 92 this bill authorizes an adult-use cannabis distributor to transport cannabis and 93 cannabis products between a cannabis establishment and another cannabis 94 establishment or between the buildings of a cannabis establishment. Section 8 of 95 this bill revises the definition of “adult-use cannabis distributor” to reflect the 96 authorizations set forth in section 50. 97 Existing law sets forth procedures by which a health authority, upon finding a 98 condition in the operation of a food establishment constituting a substantial hazard 99 to the public health, may issue an order to the holder of the permit to operate the 100 food establishment that may require the immediate suspension of the permit and 101 discontinuance of all food operations. (NRS 446.880) Section 30 of this bill sets 102 forth similar procedures by which an agent of the Board may issue such an order to 103 the holder of a cannabis establishment license if the agent finds a condition in the 104 operation of the cannabis establishment which constitutes a substantial hazard to 105 the public health. Section 30 sets forth certain conditions under which such an 106 order may not order the immediate suspension of the license and the immediate 107 discontinuance of the operations of the cannabis establishment. Section 29 of this 108 bill defines “substantial hazard to the public health” to include certain specified 109 – 4 – - *AB76* conditions. Section 29 additionally requires the Board to adopt certain regulations 110 concerning substantial hazards to the public health which may exist at a cannabis 111 establishment. 112 Existing law requires an applicant for a medical cannabis establishment license 113 or adult-use cannabis establishment license to submit to the Board the physical 114 address of the proposed cannabis establishment, which, among other requirements, 115 must not be within a certain distance of a public or private school or community 116 facility. (NRS 678B.210, 678B.250) Sections 32 and 35 establish definitions of 117 “public school” and “private school” and revise the definition of “community 118 facility.” 119 Section 36 of this bill revises certain requirements for cannabis independent 120 testing laboratories. 121 Existing law deems the issuance of a license by the Board to be conditional in 122 certain local governmental jurisdictions until the cannabis establishment is in 123 compliance with applicable local governmental ordinances or rules and the local 124 government has issued a business license for the operation of the establishment. 125 (NRS 678B.320) Section 37 additionally deems the issuance of such a license to be 126 conditional until the cannabis establishment satisfies an inspection conducted by 127 the Board. 128 Existing law prohibits a cannabis establishment from dispensing or selling 129 cannabis or cannabis products from a vending machine or allowing such a vending 130 machine to be installed on the premises of the cannabis establishment. (NRS 131 678B.510) Section 39 of this bill authorizes a cannabis establishment to engage in 132 such activities upon the approval of the Board. Section 39 additionally revises the 133 procedures that the operating documents of a cannabis establishment are required to 134 include. 135 Existing law authorizes a medical cannabis production facility to: (1) acquire 136 hemp or a commodity or product made using hemp from a grower or handler 137 registered by the State Department of Agriculture; and (2) use hemp or a 138 commodity or product made using hemp to manufacture medical cannabis products. 139 (NRS 687C.410) Sections 40 and 43 of this bill instead authorize any cannabis 140 production facility to: (1) acquire hemp from any source approved by the Board; (2) 141 use hemp to manufacture cannabis products; and (3) sell to a cannabis sales facility 142 a cannabis product that contains hemp. Section 40 additionally authorizes a 143 cannabis sales facility to acquire hemp or a commodity or product made using 144 hemp from any source approved by the Board and to sell hemp or any cannabis 145 product that contains hemp, in addition to any commodity or product made using 146 hemp. 147 Existing law prohibits a person from selling, offering to sell, appearing to sell 148 or advertising the sale of cannabis or cannabis products unless the person holds an 149 adult-use cannabis establishment license or medical cannabis establishment license. 150 (NRS 678B.530) Section 41 of this bill prohibits those actions only if the person 151 does not have the appropriate type of license and additionally prohibits a person 152 from advertising as a cannabis sales facility or cannabis consumption lounge 153 without the appropriate type of license. 154 Existing law exempts an employee of the State Department of Agriculture from 155 state prosecution for certain offenses relating to cannabis under certain 156 circumstances. (NRS 678B.600) Section 42 of this bill expands that exemption to 157 also include an employee of the Board and an attorney who represents the 158 Department or the Board. 159 Existing law provides an exemption from state prosecution for the possession, 160 delivery and production of cannabis for: (1) a person who holds a valid registry 161 identification card or letter of approval; and (2) a person who is 21 years of age or 162 older. However, under existing law, that exemption is subject to certain limitations. 163 For example, with respect to usable cannabis, the exemption applies only to the 164 – 5 – - *AB76* extent that a person does not, at any one time, possess, deliver or produce more 165 than 2.5 ounces of usable cannabis. (NRS 678C.200, 678D.200) Existing law also 166 prohibits a cannabis sales facility from selling to a person, in any one transaction, 167 more than 2.5 ounces of usable cannabis. (NRS 678B.550) Sections 3, 7 and 56 of 168 this bill revise the definition of “usable cannabis” to exclude the seeds of a plant of 169 the genus plant Cannabis and applies this definition throughout the provisions 170 of existing law governing the medical and adult use of cannabis. Section 47 of this 171 bill makes a conforming change to eliminate a reference to a provision that has 172 been repealed in section 56. 173 Existing law requires a medical cannabis establishment to maintain an 174 electronic verification system. (NRS 678B.210, 678C.420) Section 9 of this bill 175 changes the name of such a system to an electronic verification and authentication 176 system. Section 44 of this bill revises requirements concerning the operation of 177 such a system. 178 Existing law requires an adult-use cannabis product to be sold in a single 179 package. (NRS 678D.420) Section 48 of this bill revises requirements concerning 180 the amount of usable cannabis or THC that a single package may contain. 181 Existing law, with certain exceptions, prohibits smoking in any form within 182 indoor places of employment. (NRS 202.2483) Section 51 of this bill clarifies that 183 the smoking of cannabis in a cannabis consumption lounge in accordance with the 184 provisions of existing law governing the medical and adult-use of cannabis is not 185 prohibited. 186 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 678A of NRS is hereby amended by 1 adding thereto the provisions set forth as sections 2 to 6, inclusive, 2 of this act. 3 Sec. 2. “Local governmental jurisdiction” means a city or 4 unincorporated area within a county. 5 Sec. 3. 1. “Usable cannabis” means the dried leaves and 6 flowers of a plant of the genus Cannabis, and any mixture or 7 preparation thereof, that are appropriate for the medical use of 8 cannabis or the adult use of cannabis. 9 2. The term does not include the seeds, stalks and roots of the 10 plant. 11 Sec. 4. The Board or an agent of the Board may refuse to 12 reveal, in any court or administrative proceeding, except a 13 proceeding brought by the State of Nevada: 14 1. The identity of any person who has furnished to the Board 15 information purporting to reveal the commission of a violation of 16 a provision of this title or the regulations adopted pursuant 17 thereto, including, without limitation, information concerning 18 unlicensed cannabis activities; 19 2. The information obtained by the Board from a person 20 described in subsection 1; or 21 – 6 – - *AB76* 3. Both the identity of a person described in subsection 1 and 1 the information obtained from the person. 2 Sec. 5. The Board shall appoint one or more hearing officers 3 to conduct hearings and render decisions as provided in NRS 4 678A.520 to 678A.600, inclusive, and section 6 of this act. 5 Sec. 6. 1. Unless a review by the Board is requested by a 6 party or initiated by the Board pursuant to subsection 2 or 3, the 7 decision and order of a hearing officer issued pursuant to NRS 8 678A.590 are final and not subject to review by any court or the 9 Board. 10 2. A party who is aggrieved by the decision and order of a 11 hearing officer issued pursuant to NRS 678A.590 may submit to 12 the Board a written request for a review of the decision and order 13 within 30 calendar days after the service of the decision and order. 14 3. The Board may, on its own motion, initiate a review of the 15 decision and order of a hearing officer issued pursuant to NRS 16 678A.590 within 30 days after the service of the decision and 17 order. 18 4. If requested or initiated in accordance with subsection 2 or 19 3, the Board shall conduct a review of the decision and order of 20 the hearing officer. The review must be limited to the record of the 21 proceedings before the hearing officer. The Board may not 22 consider any additional evidence which was not presented to the 23 hearing officer. 24 5. The Board may, at the request of a party or on its own 25 motion, provide for oral argument as part of a review conducted 26 pursuant to this section. The Chair of the Board shall determine 27 the time, place and any other conditions and requirements for any 28 such oral argument. 29 6. After the conclusion of a review conducted pursuant to this 30 section, the Board may affirm, modify or reverse the decision and 31 order of the hearing officer or remand the matter to the hearing 32 officer for further proceedings. The Board shall prepare a written 33 decision and order on the matter as expeditiously as possible and 34 serve the decision and order on the parties personally or by 35 certified mail. 36 Sec. 7. NRS 678A.010 is hereby amended to read as follows: 37 678A.010 As used in this title, unless the context otherwise 38 requires, the words and terms defined in NRS 678A.020 to 39 678A.240, inclusive, and sections 2 and 3 of this act have the 40 meanings ascribed to them in those sections. 41 Sec. 8. NRS 678A.030 is hereby amended to read as follows: 42 678A.030 “Adult-use cannabis distributor” means a business 43 that: 44 1. Is licensed by the Board pursuant to NRS 678B.250; and 45 – 7 – - *AB76* 2. Transports cannabis or [adult-use] cannabis products [from 1 an adult-use] between a cannabis establishment [to] and another 2 [adult-use] cannabis establishment [.] or between the buildings of a 3 cannabis establishment. 4 Sec. 9. NRS 678A.150 is hereby amended to read as follows: 5 678A.150 “Electronic verification and authentication system” 6 means an electronic database that: 7 1. Keeps track of data in real time; and 8 2. Is accessible by the Board and by the cannabis 9 establishment. 10 Sec. 10. NRS 678A.239 is hereby amended to read as follows: 11 678A.239 1. “Synthetic cannabinoid” means a cannabinoid 12 that is: 13 [1.] (a) Produced artificially, whether from chemicals or from 14 recombinant biological agents, including, without limitation, yeast 15 and algae; [and 16 2. Is not] or 17 (b) Not obtained directly without the use of chemicals derived 18 from a plant of the genus Cannabis . [, including,] 19 2. The term includes, without limitation, biosynthetic 20 cannabinoids. 21 3. The term does not include delta-9-tetrahydrocannabinol 22 produced through the decarboxylation of tetrahydrocannabinolic 23 acid using a process approved by the Board. 24 Sec. 11. NRS 678A.450 is hereby amended to read as follows: 25 678A.450 1. The Board may adopt regulations necessary or 26 convenient to carry out the provisions of this title. Such regulations 27 may include, without limitation: 28 (a) Financial requirements for licensees. 29 (b) Establishing such education, outreach, investigative and 30 enforcement mechanisms as the Board deems necessary to ensure 31 the compliance of a licensee or registrant with the provisions of this 32 title. Such mechanisms must include, without limitation: 33 (1) A system to educate, train and certify employees of the 34 Board which: 35 (I) Each employee must complete before he or she may 36 engage in inspections, investigations or audits; and 37 (II) At a minimum, includes training that is the same or 38 substantially similar to any training that is required by the Board by 39 regulation to be completed by a cannabis establishment agent before 40 he or she may be employed by, volunteer at or provide labor to a 41 cannabis establishment; 42 (2) A system to educate and advise licensees and registrants 43 on compliance with the provisions of this title which may serve as 44 an alternative to disciplinary action; and 45 – 8 – - *AB76* (3) Establishing specific grounds for disciplinary action 1 against a licensee or registrant who knowingly violates the law or 2 engages in grossly negligent, unlawful or criminal conduct or an act 3 or omission that poses an imminent threat to the health or safety of 4 the public. 5 (c) Requirements for licensees or registrants relating to the 6 cultivation, processing, manufacture, transport, distribution, testing, 7 study, advertising and sale of cannabis and cannabis products. 8 (d) Policies and procedures to ensure that the cannabis industry 9 in this State is economically competitive, inclusive of racial 10 minorities, women and persons and communities that have been 11 adversely affected by cannabis prohibition and accessible to persons 12 of low-income seeking to start a business. 13 (e) Policies and procedures relating to the disclosure of the 14 identities of the shareholders and the annual report of a cannabis 15 establishment that is a publicly traded company. 16 (f) Reasonable restrictions on the signage, marketing, display 17 and advertising of cannabis establishments. Such a restriction must 18 not require a cannabis establishment to obtain the approval of the 19 Board before using a logo, sign or advertisement. 20 (g) Provisions governing the sales of products and commodities 21 made from hemp, as defined in NRS 557.160, or containing 22 cannabidiol by cannabis establishments. 23 (h) Requirements relating to the packaging and labeling of 24 cannabis and cannabis products. 25 2. The Board shall adopt regulations providing for the 26 gathering and maintenance of comprehensive demographic 27 information, including, without limitation, information regarding 28 race, ethnicity, age and gender, concerning each: 29 (a) Owner and manager of a cannabis establishment. 30 (b) Holder of a cannabis establishment agent registration card. 31 3. The Board shall adopt regulations prescribing a list of 32 each violation of a provision of this title or a regulation adopted 33 pursuant thereto that the Board has determined to be appropriate 34 for the issuance of a notice of violation pursuant to 35 NRS 678A.520. 36 4. The Board shall adopt regulations providing for the 37 investigation of unlicensed cannabis activities and the imposition of 38 penalties against persons who engage in such activities. Such 39 regulations must, without limitation: 40 (a) Establish penalties to be imposed for unlicensed cannabis 41 activities, which may include, without limitation, the issuance of a 42 cease and desist order or citation, the imposition of an 43 administrative fine or civil penalty and other similar penalties. 44 – 9 – - *AB76* (b) Set forth the procedures by which the Board may impose a 1 penalty against a person for engaging in unlicensed cannabis 2 activities. 3 (c) Set forth the circumstances under which the Board is 4 required to refer matters concerning unlicensed cannabis activities 5 to an appropriate state or local law enforcement agency. 6 [4.] 5. As part of an investigation of unlicensed cannabis 7 activities conducted pursuant to the regulations adopted pursuant 8 to subsection 4, if the Board has cause to believe that a person has 9 engaged in or is engaging in unlicensed cannabis activities, the 10 Board may issue a summons to require any person to appear 11 before the Board at the time and place set forth in the summons 12 and a subpoena to require the testimony of any person or the 13 production of documents. The Board may administer an oath or 14 affirmation to any person providing testimony pursuant to such a 15 subpoena. A summons or subpoena issued pursuant to this 16 subsection must be served upon a person in the manner required 17 for service of process in this State or by certified mail with return 18 receipt requested. An employee of the Board may personally serve 19 such a summons or subpoena. The Board may use any documents, 20 records or material produced pursuant to a subpoena issued 21 pursuant to this subsection in the course of an action or 22 proceeding brought pursuant to the regulations adopted pursuant 23 to subsection 4. 24 6. The Board shall transmit the information gathered and 25 maintained pursuant to subsection 2 to the Director of the 26 Legislative Counsel Bureau for transmission to the Legislature on or 27 before January 1 of each odd-numbered year. 28 [5.] 7. The Board shall, by regulation, establish a pilot 29 program for identifying opportunities for an emerging small 30 cannabis business to participate in the cannabis industry. As used in 31 this subsection, “emerging small cannabis business” means a 32 cannabis-related business that: 33 (a) Is in existence, operational and operated for a profit; 34 (b) Maintains its principal place of business in this State; and 35 (c) Satisfies requirements for the number of employees and 36 annual gross revenue established by the Board by regulation. 37 Sec. 12. NRS 678A.470 is hereby amended to read as follows: 38 678A.470 1. The Board shall cause to be made and kept a 39 record of all proceedings at regular and special meetings of the 40 Board. These records are open to public inspection. 41 2. [Any] Except as otherwise provided in subsections 3, 4 and 42 6, any and all information and data prepared or obtained by the 43 Board or by an agent or employee of the Board [relating to a holder 44 of or an applicant for a medical cannabis establishment license 45 – 10 – - *AB76* pursuant to NRS 678B.210, other than the name of a licensee and 1 each owner, officer and board member of the licensee and 2 information relating to the scoring and ranking of applications 3 and the imposition of disciplinary action, are confidential and may 4 be revealed in whole or in part only in the course of the necessary 5 administration of this title or upon the lawful order of a court of 6 competent jurisdiction. The Board may reveal such information and 7 data to an authorized agent of any agency of the United States 8 Government, any state or any political subdivision of a state or the 9 government of any foreign country. Notwithstanding any other 10 provision of state law, such information and data may not be 11 otherwise revealed without specific authorization by the Board 12 pursuant to the regulations of the Board. 13 3. Except as otherwise provided in this subsection, any 14 information and data included in] : 15 (a) Relating to an application for [an adult-use cannabis 16 establishment] a license or a registration card , a request for a 17 transfer of ownership interest pursuant to the regulations adopted 18 by the Board pursuant to NRS 678B.380 or a request to obtain the 19 approval of the Board of any act, transaction, qualification, 20 extension or exemption for which the approval of the Board is 21 required pursuant to this title or the regulations adopted pursuant 22 thereto and which is given at a meeting of the Board; 23 (b) That is required by the Board to be provided to the Board 24 pursuant to this title or any regulation adopted pursuant thereto or 25 which may be otherwise obtained relative to the finances, earnings 26 or revenue of any licensee, registrant or applicant for a license or 27 registration card; 28 (c) Pertaining to the criminal record, antecedents and 29 background of a natural person; 30 (d) For which an assurance that the information and data will 31 be held in confidence and treated as confidential has been 32 provided in writing by the Board or an agent or employee of the 33 Board who has been authorized by the Board to provide such an 34 assurance; 35 (e) Relating to the internal layout and structural elements of a 36 cannabis establishment; 37 (f) Relating to the security of a cannabis establishment, 38 including, without limitation, the security measures and 39 emergency preparedness of a cannabis establishment and any 40 assessment of threats to or vulnerabilities of a cannabis 41 establishment; 42 (g) That constitutes a trade secret, as defined in NRS 43 600A.030, and for which the word “Confidential” or “Private” or 44 another indication of secrecy was placed in a reasonably 45 – 11 – - *AB76* noticeable manner on any medium or container that describes or 1 includes any portion of the trade secret at the time it was provided 2 to the Board or an agent or employee of the Board; 3 (h) That contains the name or other personal information of a 4 natural person who facilitates or delivers services in accordance 5 with the provisions of this title and the regulations adopted 6 pursuant thereto; 7 (i) Whose disclosure would likely prejudice the effectiveness of 8 the operations of a law enforcement agency; 9 (j) Relating to the activities of a licensee or registrant involving 10 the medical use of cannabis; or 11 (k) Relating to disciplinary action taken in accordance with 12 NRS 678A.520 to 678A.600, inclusive, and section 6 of this act or 13 an audit, inspection or investigation, 14 is confidential and may be revealed in whole or in part only in the 15 course of the necessary administration of this title or upon the lawful 16 order of a court of competent jurisdiction. [The name of the holder 17 of an adult-use cannabis establishment license and each owner, 18 officer and board member of the licensee and information relating to 19 the scoring and ranking of applications and the imposition of 20 disciplinary action are not confidential.] 21 3. The following information and data are not confidential: 22 (a) The name of a licensee. 23 (b) The name of each owner, officer and board member of a 24 licensee. 25 (c) The name of the receiver for a cannabis establishment 26 subject to receivership. 27 (d) The physical address of a cannabis sales facility or 28 cannabis consumption lounge. 29 (e) The local governmental jurisdiction in which a cannabis 30 establishment is located. 31 (f) Information and data relating to the scoring and ranking of 32 applications for a license. 33 (g) A complaint or notice of violation served pursuant to 34 NRS 678A.520. 35 (h) A decision and order issued pursuant to NRS 678A.590 or 36 section 6 of this act. 37 (i) A consent or settlement agreement entered into pursuant to 38 NRS 678A.645. 39 (j) Information and data relating to any civil penalty paid 40 pursuant to subsection 4 of NRS 678A.520. 41 (k) A letter of warning, letter of concern or nonpunitive 42 admonishment issued pursuant to section 26 of this act. 43 4. The Board may reveal [such] information and data declared 44 confidential pursuant to subsection 2 to an authorized agent of any 45 – 12 – - *AB76* [agency of the United States Government, any state or any political 1 subdivision of a state or the government of any foreign country.] 2 governmental entity. If any confidential information and data is 3 provided by the Board to a governmental entity pursuant to this 4 section, the information and data remains confidential and may 5 not be provided to any other person or governmental entity. To the 6 extent practicable, any governmental entity that receives any 7 confidential information and data from the Board pursuant to this 8 section shall treat the information and data as confidential. 9 Notwithstanding any other provision of state law, [such] information 10 and data declared confidential pursuant to subsection 2 may not be 11 otherwise revealed without specific authorization by the Board 12 pursuant to the regulations of the Board. 13 [4.] 5. A person seeking an order of a court of competent 14 jurisdiction for the disclosure of information and data declared 15 confidential pursuant to subsection 2 must submit a motion in 16 writing to the court requesting the information. At least 14 days 17 before submitting the motion, the person must provide notice to 18 the Board, the Attorney General and all persons who may be 19 affected by the disclosure of the information and data. The notice 20 must: 21 (a) Include, without limitation, a copy of the motion and all 22 documents in support of the motion that are to be filed with the 23 court; and 24 (b) Be delivered in person or by certified mail to the last known 25 address of each person to whom notice must be provided. 26 6. The Board may reveal information and data declared 27 confidential pursuant to subsection 2 to the extent necessary to 28 establish a claim or defense in an action against the Board 29 brought by a licensee, registrant or applicant for a license or 30 registration card. The court may order the redaction or sealing of 31 any court records containing confidential information and data 32 revealed pursuant to this subsection to maintain the confidentiality 33 of the information and data. 34 7. All files, records, reports and other information and data 35 pertaining to matters related to cannabis in the possession of the 36 Nevada Tax Commission or the Department of Taxation must be 37 made available to the Board as is necessary to the administration of 38 this title. 39 [5.] 8. As used in this section [, “information] : 40 (a) “Governmental entity” means any agency of the United 41 States Government, any state or political subdivision of a state or 42 the government of any foreign country. 43 (b) “Information and data” means all information and data in 44 any form, including, without limitation, any oral, written, audio, 45 – 13 – - *AB76* visual, digital or electronic form, and the term includes, without 1 limitation, any account, book, correspondence, file, message, paper, 2 record, report or other type of document . [, including, without 3 limitation, any document containing self-evaluative assessments, 4 self-critical analysis or self-appraisals of an applicant’s or licensee’s 5 compliance with statutory or regulatory requirements.] 6 (c) “Personal information” means: 7 (1) The name, address, telephone number, electronic mail 8 address or date of birth of a person; and 9 (2) Any other information that constitutes personal 10 information as defined in NRS 603A.040. 11 Sec. 13. NRS 678A.500 is hereby amended to read as follows: 12 678A.500 1. If the Executive Director becomes aware that a 13 licensee or registrant has violated, is violating or is about to violate 14 any provision of this title or any regulation adopted pursuant thereto, 15 the Executive Director may transmit the details of the suspected 16 violation, along with any further facts or information related to the 17 violation which are known to the Executive Director, to the 18 Attorney General [.] for further investigation. 19 2. If any person other than the Executive Director becomes 20 aware that a licensee or registrant has violated, is violating or is 21 about to violate any provision of this title or any regulation adopted 22 pursuant thereto, the person may file a written complaint with the 23 Executive Director specifying the relevant facts. The Executive 24 Director shall review each such complaint and, if the Executive 25 Director finds the complaint not to be frivolous, may transmit the 26 details of the suspected violation, along with any further facts or 27 information derived from the review of the complaint to the 28 Attorney General [.] for further investigation. 29 3. The employees of the Board who are certified by the Peace 30 Officers’ Standards and Training Commission created pursuant to 31 NRS 289.500 shall cooperate with the Attorney General in the 32 performance of any criminal investigation. 33 Sec. 14. NRS 678A.510 is hereby amended to read as follows: 34 678A.510 1. If the Executive Director transmits the details of 35 a suspected violation to the Attorney General for further 36 investigation pursuant to NRS 678A.500, the Attorney General shall 37 conduct an investigation of the suspected violation to determine 38 whether it warrants proceedings for disciplinary action of the 39 licensee or registrant. If the Attorney General determines that 40 further proceedings are warranted, he or she shall report the results 41 of the investigation together with a recommendation to the 42 Executive Director in a manner which does not violate the right of 43 the person charged in the complaint to due process in any later 44 hearing on the complaint. [The Executive Director shall transmit the 45 – 14 – - *AB76* recommendation and other information received from the Attorney 1 General to the Board.] 2 2. The [Board] Executive Director shall promptly make a 3 determination with respect to each complaint resulting in an 4 investigation by the Attorney General. The [Board] Executive 5 Director shall: 6 (a) [Dismiss the complaint;] Decline to proceed with 7 disciplinary action; 8 (b) [Enter into] Authorize the Attorney General to attempt to 9 negotiate a consent or settlement agreement [with] to be entered 10 into between the licensee or registrant and the Board pursuant to 11 NRS 678A.645; or 12 (c) Proceed with appropriate disciplinary action in accordance 13 with NRS 678A.520 to 678A.600, inclusive, and section 6 of this 14 act, chapter 233B of NRS and the regulations adopted by the Board. 15 In determining the disciplinary action to impose the [Board] 16 Executive Director shall consider mitigating factors pursuant to 17 NRS 678A.647. 18 Sec. 15. NRS 678A.520 is hereby amended to read as follows: 19 678A.520 1. If the [Board] Executive Director proceeds with 20 disciplinary action pursuant to NRS 678A.510, [the Board or] the 21 Executive Director shall serve [a complaint] upon the respondent 22 [either personally,] : 23 (a) A complaint; or [by] 24 (b) If the alleged violation at issue is a violation that the Board 25 has determined to be appropriate for the issuance of a notice of 26 violation pursuant to the regulations adopted pursuant to NRS 27 678A.450, a notice of violation. 28 The fact that an alleged violation is a violation that the Board 29 has determined to be appropriate for the issuance of a notice of 30 violation does not prohibit the Executive Director from issuing a 31 complaint concerning the alleged violation rather than a notice of 32 violation. 33 2. A complaint or notice of violation served pursuant to 34 subsection 1 must be served upon the respondent: 35 (a) Personally; 36 (b) By registered or certified mail at the address of the 37 respondent that is on file with the Board [. Such] ; or 38 (c) If the respondent has expressly agreed to service by 39 electronic means, by electronic means. 40 3. A complaint or notice of violation served pursuant to 41 subsection 1 must: 42 (a) [Be a written statement of charges; 43 (b) Set forth in ordinary and concise language the acts or 44 omissions with which the respondent is charged; 45 – 15 – - *AB76* (c)] Specify the statutes and regulations which the respondent is 1 alleged to have violated . [; 2 (d) Not consist merely of charges raised in the language of the 3 statutes or regulations which the respondent is alleged to have 4 violated; 5 (e)] (b) Set forth a short and plain statement of the matters 6 asserted, including, without limitation, the acts or omissions with 7 which the respondent is charged. If the Executive Director is 8 unable to state the matters in detail at the time the complaint or 9 notice of violation is served, the complaint or notice of violation 10 may be limited to a statement of the issues involved. Thereafter, 11 upon application, a more definite and detailed statement must be 12 furnished. 13 (c) If the respondent is alleged to have committed multiple 14 violations consisting of the same or a similar act, omission or course 15 of conduct, charge those violations as a single alleged violation if 16 the violations: 17 (1) Are closely related in time, place and circumstance; and 18 (2) Were all discovered in the course of a single audit, 19 inspection or investigation . [; 20 (f)] (d) Specify the penalty being sought against the respondent 21 . [; and 22 (g)] If the Executive Director serves a notice of violation, the 23 Executive Director may seek only the imposition of a civil penalty 24 in the notice of violation. 25 (e) Provide notice of the right of the respondent to request a 26 hearing. 27 [2.] 4. The [Chair of the Board] Executive Director may grant 28 an extension to respond to the complaint or notice of violation for 29 good cause. Unless granted such an extension, the respondent must , 30 [answer] within [20] 21 days after the service of the complaint [.] or 31 notice of violation: 32 (a) Answer the complaint or notice of violation in accordance 33 with subsection 5; or 34 (b) For a notice of violation, pay to the Board the civil penalty 35 being sought. If the respondent pays the civil penalty, the 36 respondent shall be deemed to not have committed the alleged 37 violation at issue for the purpose of any system of progressive 38 discipline adopted by the Board. 39 5. In the answer to a complaint or notice of violation, the 40 respondent: 41 (a) Must state in short and plain terms the defenses to each claim 42 asserted. 43 (b) Must admit or deny the facts alleged in the complaint [.] or 44 notice of violation. 45 – 16 – - *AB76* (c) Must state which allegations the respondent is without 1 knowledge or information to form a belief as to their truth. Such 2 allegations shall be deemed denied. 3 (d) Must affirmatively set forth any matter which constitutes an 4 avoidance or affirmative defense. 5 (e) May demand a hearing. Failure to demand a hearing 6 constitutes a waiver of the right to a hearing [and] , the right to 7 [judicial] request a review of [any] the decision or order of the 8 hearing officer by the Board [, but] and the right to judicial review 9 of any decision of the Board . [may order a hearing even if the 10 respondent so waives his or her right. 11 3.] 6. Upon receipt of an answer demanding a hearing or the 12 expiration of the time to answer the complaint or notice of 13 violation, the Executive Director shall assign the matter to a 14 hearing officer. 15 7. Failure to [answer] comply with subsection 4 or , if the 16 respondent has demanded a hearing pursuant to subsection 5, to 17 appear at the hearing constitutes an admission by the respondent of 18 all facts alleged in the complaint [.] or notice of violation. The 19 [Board] hearing officer may take action based on such an admission 20 and on other evidence without further notice to the respondent. If 21 the [Board] hearing officer takes action based on such an 22 admission, the [Board] hearing officer shall include in the record 23 which evidence was the basis for the action. 24 [4.] 8. The [Board] hearing officer shall determine the time 25 and place of the hearing as soon as is reasonably practical after 26 receiving the respondent’s answer. The [Board] hearing officer 27 shall deliver or send by registered [or] mail, certified mail or, if the 28 parties have expressly agreed to service by electronic means, by 29 electronic means a notice of hearing that complies with NRS 30 233B.121 to all parties at least 10 days before the hearing. The 31 hearing must be held within [45] 120 days after receiving the 32 respondent’s answer unless an expedited hearing is determined to be 33 appropriate by the Executive Director or the Board, in which event 34 the hearing must be held as soon as practicable. The [Chair of the 35 Board] hearing officer may grant one or more extensions to the [45-36 day] 120-day requirement pursuant to a request of a party or an 37 agreement by both parties. 38 Sec. 16. NRS 678A.530 is hereby amended to read as follows: 39 678A.530 Before a hearing , [before the Board,] and during a 40 hearing upon reasonable cause shown, the [Board] hearing officer 41 shall issue subpoenas and subpoenas duces tecum at the request of a 42 party. All witnesses appearing pursuant to subpoena, other than 43 parties, officers or employees of the State of Nevada or any political 44 subdivision thereof, are entitled to receive fees and mileage in the 45 – 17 – - *AB76* same amounts and under the same circumstances as provided by law 1 for witnesses in civil actions in the district courts. Witnesses entitled 2 to fees or mileage who attend hearings at points so far removed 3 from their residences as to prohibit return thereto from day to day 4 are entitled, in addition to witness fees and in lieu of mileage, to the 5 per diem compensation for subsistence and transportation authorized 6 for state officers and employees for each day of actual attendance 7 and for each day necessarily occupied in traveling to and from the 8 hearings. Fees, subsistence and transportation expenses must be paid 9 by the party at whose request the witness is subpoenaed. [The Board 10 may award as costs the amount of all such expenses to the 11 prevailing party.] 12 Sec. 17. NRS 678A.540 is hereby amended to read as follows: 13 678A.540 1. At all hearings before [the Board:] a hearing 14 officer: 15 (a) Oral evidence may be taken only upon oath or affirmation 16 administered by the [Board.] hearing officer. 17 (b) Every party has the right to: 18 (1) Call and examine witnesses; 19 (2) Introduce exhibits relevant to the issues of the case; 20 (3) Cross-examine opposing witnesses on any matters 21 relevant to the issues of the case, even though the matter was not 22 covered in a direct examination; 23 (4) Impeach any witness regardless of which party first 24 called the witness to testify; and 25 (5) Offer rebuttal evidence. 26 (c) If the respondent does not testify in his or her own behalf, 27 the respondent may be called and examined as if under cross-28 examination. 29 (d) The hearing need not be conducted according to technical 30 rules relating to evidence and witnesses, except that those prescribed 31 in NRS 233B.123 apply. Any relevant evidence that is not 32 immaterial or unduly repetitious may be admitted and is sufficient in 33 itself to support a finding if it is the sort of evidence on which 34 responsible persons are accustomed to rely in the conduct of serious 35 affairs, regardless of the existence of any common law or statutory 36 rule which might make improper the admission of such evidence 37 over objection in a civil action. 38 (e) The parties or their counsel may by written stipulation agree 39 that certain specified evidence may be admitted even though such 40 evidence might otherwise be subject to objection. 41 2. The [Board] hearing officer may take official notice of any 42 generally accepted information or technical or scientific matter 43 within the field of cannabis, and of any other fact which may be 44 judicially noticed by the courts of this State. The parties must be 45 – 18 – - *AB76* informed of any information, matters or facts so noticed, and must 1 be given a reasonable opportunity, on request, to refute such 2 information, matters or facts by evidence or by written or oral 3 presentation of authorities, the manner of such refutation to be 4 determined by the [Board.] hearing officer. 5 3. Affidavits may be received in evidence at any hearing [of 6 the Board] before a hearing officer in accordance with the 7 following: 8 (a) The party wishing to use an affidavit must, not less than 10 9 days before the day set for hearing, serve upon the opposing party or 10 counsel, either personally or by registered or certified mail, a copy 11 of the affidavit which the party proposes to introduce in evidence 12 together with a notice as provided in paragraph (c). 13 (b) Unless the opposing party, within 7 days after such service, 14 mails or delivers to the proponent a request to cross-examine the 15 affiant, the opposing party’s right to cross-examine the affiant is 16 waived and the affidavit, if introduced in evidence, must be given 17 the same effect as if the affiant had testified orally. If an opportunity 18 to cross-examine an affiant is not afforded after request therefor is 19 made in accordance with this paragraph, the affidavit may be 20 introduced in evidence, but must be given only the same effect as 21 other hearsay evidence. 22 (c) The notice referred to in paragraph (a) must be substantially 23 in the following form: 24 25 The accompanying affidavit of (here insert name of 26 affiant) will be introduced as evidence at the hearing set for 27 the ........ day of the month of ………. of the year …… (Here 28 insert name of affiant) will not be called to testify orally and 29 you will not be entitled to question (here insert name of 30 affiant) unless you notify the undersigned that you wish to 31 cross-examine (here insert name of affiant). To be effective 32 your request must be mailed or delivered to the undersigned 33 on or before 7 days from the date this notice and the enclosed 34 affidavit are served upon you. 35 36 ................................................................ 37 (Party or Counsel) 38 ................................................................ 39 (Address) 40 Sec. 18. NRS 678A.550 is hereby amended to read as follows: 41 678A.550 [The following procedures apply at] At all hearings 42 [of the Board: 43 1. At least three members of the Board shall be present at every 44 hearing, and they shall exercise all powers relating to the conduct 45 – 19 – - *AB76* of] before a hearing officer, the hearing [and shall enforce all 1 decisions with respect thereto. 2 2. The proceedings] officer shall cause an audio recording to 3 be made of all oral proceedings at the hearing . The audio 4 recording must be [reported either stenographically or by a 5 phonographic reporter.] transcribed upon the request of any party. 6 The party making the request shall pay all the costs for the 7 transcription. 8 Sec. 19. NRS 678A.570 is hereby amended to read as follows: 9 678A.570 [The Board] A hearing officer may, before 10 submission of the case for decision, permit the filing of amended or 11 supplemental pleadings and shall notify all parties thereof, and 12 provide a reasonable opportunity for objections thereto. 13 Sec. 20. NRS 678A.580 is hereby amended to read as follows: 14 678A.580 If any person in proceedings before [the Board] a 15 hearing officer disobeys or resists any lawful order or refuses to 16 respond to a subpoena, or refuses to take the oath or affirmation as a 17 witness or thereafter refuses to be examined, or is guilty of 18 misconduct during the hearing or so near the place thereof as to 19 obstruct the proceeding, the hearing officer or the Board may 20 certify the facts to the district court in and for the county where the 21 proceedings are held. The court shall thereupon issue an order 22 directing the person to appear before the court and show cause why 23 the person should not be punished as for contempt. The court order 24 and a copy of the statement of the hearing officer or the Board must 25 be served on the person cited to appear. Thereafter the court has 26 jurisdiction of the matter, and the same proceedings must be had, the 27 same penalties may be imposed and the person charged may purge 28 himself or herself of the contempt in the same way as in the case of 29 a person who has committed a contempt in the trial of a civil action 30 before a district court. 31 Sec. 21. NRS 678A.590 is hereby amended to read as follows: 32 678A.590 1. Within 60 days after the hearing of a contested 33 matter, the [Board] hearing officer shall render a written decision 34 on the merits. Except as otherwise provided in subsection 5 of NRS 35 233B.121, the written decision must contain findings of fact and 36 conclusions of law which are separately stated, a determination of 37 the issues presented and the penalty to be imposed, if any. If the 38 [Board] hearing officer determines that the licensee or registrant 39 has violated any provision of this title or any regulation adopted 40 pursuant thereto, the written decision must set forth the 41 determination of the [Board] hearing officer as to whether any of 42 the mitigating circumstances required to be considered by the 43 [Board] hearing officer pursuant to NRS 678A.600 exist and, if so, 44 the weight given to each mitigating circumstance in determining the 45 – 20 – - *AB76* appropriate action to be taken pursuant to that section. The [Board] 1 hearing officer shall thereafter make and enter [its] a written order 2 in conformity to [its] the decision. [No member of the Board who 3 did not hear the evidence may vote on the decision. The affirmative 4 votes of a majority of the whole Board are required to impose any 5 penalty.] Copies of the decision and order must be served on the 6 parties personally or sent to them by [registered or] certified mail. 7 The decision is effective upon such service . [, unless the Board 8 orders otherwise.] 9 2. The [Board] hearing officer may, upon motion made within 10 15 days after service of a decision and order, order a rehearing 11 before the [Board] hearing officer upon such terms and conditions 12 as it may deem just and proper if a [petition for judicial] review of 13 the decision [and order] has not been [filed.] initiated pursuant to 14 section 6 of this act. The motion must not be granted except upon a 15 showing that there is additional evidence which is material and 16 necessary and reasonably calculated to change the decision of the 17 [Board,] hearing officer, and that sufficient reason existed for 18 failure to present the evidence at the hearing [of] before the [Board.] 19 hearing officer. The motion must be supported by an affidavit of 20 the moving party or his or her counsel showing with particularity the 21 materiality and necessity of the additional evidence and the reason 22 why it was not introduced at the hearing. Upon rehearing, rebuttal 23 evidence to the additional evidence must be permitted. After 24 rehearing, the [Board] hearing officer may modify [its] his or her 25 decision and order as the additional evidence may warrant. 26 Sec. 22. NRS 678A.600 is hereby amended to read as follows: 27 678A.600 1. If the [Board] hearing officer finds that a 28 licensee or registrant has violated a provision of this title or any 29 regulation adopted pursuant thereto, the [Board] hearing officer 30 may: 31 (a) Limit, condition, suspend or revoke the license or 32 registration card of the licensee or registrant; 33 (b) Impose a civil penalty in an amount established by 34 regulation, not to exceed $20,000 for a single violation; 35 (c) Take any combination of the actions authorized by 36 paragraphs (a) and (b); 37 (d) Issue a warning to the licensee or registrant; or 38 (e) Take no action against the licensee or registrant. 39 2. In determining the appropriate action to be taken against a 40 licensee or registrant pursuant to this section, including, without 41 limitation, the amount of any civil penalty imposed, the [Board] 42 hearing officer shall consider whether any of the mitigating 43 circumstances set forth in NRS 678A.647 exist. 44 – 21 – - *AB76* Sec. 23. NRS 678A.610 is hereby amended to read as follows: 1 678A.610 Any person aggrieved by a final decision or order of 2 the Board made [after hearing or rehearing by the Board pursuant to 3 NRS 678A.520 to 678A.600, inclusive, and whether or not a motion 4 for rehearing was filed,] pursuant to section 6 of this act is entitled 5 to judicial review of the decision or order in the manner provided by 6 chapter 233B of NRS. 7 Sec. 24. NRS 678A.647 is hereby amended to read as follows: 8 678A.647 1. A violation of any provision of this title or any 9 regulation adopted pursuant thereto may be mitigated by any of the 10 following circumstances: 11 (a) The licensee or registrant self-reported the violation to the 12 Board or an agent of the Board. 13 (b) For a violation committed by a licensee, the licensee has: 14 (1) Submitted to the Board a plan to correct the violation 15 which has been approved by the Board or deemed approved 16 pursuant to subsection 2; and 17 (2) Taken action to correct the violation. 18 (c) The licensee or registrant has made a good faith effort to 19 prevent violations from occurring, including, without limitation, by: 20 (1) Providing regular training to the employees of the 21 licensee or registrant which has been documented and which was 22 provided before the commencement of an investigation by the 23 [Board] Executive Director concerning the violation [;] pursuant to 24 NRS 678A.500; or 25 (2) Establishing, before the commencement of an 26 investigation by the [Board] Executive Director concerning the 27 violation [,] pursuant to NRS 678A.500, standard operating 28 procedures that include procedures which directly address the 29 conduct constituting the violation. 30 (d) The licensee or registrant has cooperated in the investigation 31 of the violation in such a manner as to demonstrate that the licensee 32 or registrant accepts responsibility for the violation. 33 (e) Any other mitigating circumstance established by the Board 34 by regulation exists. 35 2. For the purposes of subparagraph (1) of paragraph (b) of 36 subsection 1, if a licensee has submitted a plan to correct a violation 37 and the Board does not take action to approve or reject the plan 38 within 30 days after the date on which the plan was submitted, the 39 plan shall be deemed to be approved by the appropriate agent of the 40 Board. 41 – 22 – - *AB76* Sec. 25. Chapter 678B of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 26 to 30, inclusive, of this 2 act. 3 Sec. 26. 1. If the Board, the Executive Director or a 4 designee of the Executive Director has reason to believe that a 5 licensee or registrant has violated or is violating any provision of 6 this title or the regulations adopted pursuant thereto, the Board, 7 Executive Director or designee may issue to the person a letter of 8 warning, a letter of concern or a nonpunitive admonishment at 9 any time before the Executive Director has initiated any 10 disciplinary proceedings against the person. 11 2. The issuance of such a letter or admonishment: 12 (a) Does not preclude the Executive Director from initiating 13 any disciplinary proceedings against the person or taking any 14 disciplinary action against the person based on any conduct 15 alleged or described in the letter or admonishment or any other 16 conduct; and 17 (b) Does not constitute a final decision of the Board and is not 18 subject to judicial review. 19 Sec. 27. 1. Each cannabis establishment, in consultation 20 with the Board, shall maintain an inventory control system. 21 2. The inventory control system required pursuant to 22 subsection 1 must be able to monitor and report information, 23 including, without limitation: 24 (a) Insofar as is practicable, the chain of custody and current 25 whereabouts, in real time, of cannabis from the point of 26 acquisition at a cannabis cultivation facility until it is sold at a 27 cannabis establishment; 28 (b) The name of each person or cannabis establishment, or 29 both, to which the cannabis establishment sold cannabis; 30 (c) The date on which the cannabis was sold and the quantity 31 of any cannabis products sold, measured both by weight and 32 potency; and 33 (d) Such other information as the Board may require. 34 3. Nothing in this section prohibits more than one cannabis 35 establishment from co-owning an inventory control system in 36 cooperation with other cannabis establishments or sharing the 37 information obtained therefrom. 38 4. A cannabis establishment shall exercise reasonable care to 39 ensure that the personal identifying information of persons which 40 is contained in an inventory control system is encrypted, protected 41 and not divulged for any purpose not specifically authorized by 42 law. 43 Sec. 28. 1. Except as otherwise provided in this section, a 44 cannabis establishment shall not transport cannabis or cannabis 45 – 23 – - *AB76* products to another cannabis establishment or between the 1 buildings of a cannabis establishment unless the cannabis 2 establishment holds an adult-use cannabis establishment license 3 for an adult-use cannabis distributor. 4 2. An adult-use cannabis establishment that holds an adult-5 use cannabis establishment license for an adult-use cannabis 6 retail store and an adult-use cannabis establishment license for a 7 retail cannabis consumption lounge that is attached or 8 immediately adjacent to the adult-use cannabis retail store may 9 transport cannabis and cannabis products between the adult-use 10 cannabis retail store and the retail cannabis consumption lounge. 11 Sec. 29. 1. The Board shall adopt regulations establishing: 12 (a) Procedures pursuant to which a cannabis establishment 13 must immediately discontinue operations and notify the Board 14 upon becoming aware that a condition constituting a substantial 15 hazard to the public health exists at the cannabis establishment. 16 Such procedures must not require a cannabis establishment at 17 which a substantial hazard to the public health exists to 18 discontinue operations if the hazard affects a discrete area of the 19 cannabis establishment and the Board has approved a plan to 20 allow the cannabis establishment to continue operations in the 21 areas of the cannabis establishment unaffected by the hazard. 22 (b) Procedures and requirements for a cannabis establishment 23 to resume operations after a substantial hazard to the public 24 health has been found to exist at the cannabis establishment. 25 2. As used in this section, “substantial hazard to the public 26 health” means any of the following: 27 (a) A fire or flood. 28 (b) Interruption of electrical or water service. 29 (c) Sewage backup. 30 (d) The misuse of poisonous or toxic materials. 31 (e) The onset of an apparent food-borne illness outbreak. 32 (f) A gross insanitary occurrence or condition. 33 (g) Any other occurrence or condition that may endanger the 34 public health. 35 Sec. 30. 1. Whenever an agent of the Board finds a 36 condition in the operation of a cannabis establishment which 37 constitutes a substantial hazard to the public health as defined in 38 section 29 of this act, the agent may, without warning, notice or 39 hearing, issue a written order to the licensee citing the condition, 40 specifying the corrective action to be taken and specifying the time 41 within which the action must be taken. Except as otherwise 42 provided in subsection 3, the order may state that the license of the 43 cannabis establishment is immediately suspended and all 44 operations must be immediately discontinued. Any person to 45 – 24 – - *AB76* whom such an order is issued shall comply with it immediately. 1 Upon written petition to the Board, the person must be afforded a 2 hearing as soon as possible, but not later than 45 days after the 3 date on which the order was issued unless the Board and the 4 licensee agree in writing to a longer period. 5 2. Any licensee whose license has been suspended pursuant 6 to subsection 1 may, at any time, make an application for a 7 reinspection for reinstatement of the license. Within 10 days 8 following receipt of a written request, including a statement signed 9 by the applicant that in the opinion of the applicant the conditions 10 causing the suspension of the license have been corrected, the 11 Board shall make a reinspection. If the applicant is complying 12 with all applicable requirements of this title and the regulations 13 adopted pursuant thereto, the license must be reinstated. 14 3. An order issued by an agent of the Board pursuant to 15 subsection 1 must not order the immediate suspension of the 16 license for the cannabis establishment and the immediate 17 discontinuance of the operations of the cannabis establishment if 18 the Board has approved the continued operation of the cannabis 19 establishment or, while the agent of the Board is on the premises 20 of the cannabis establishment: 21 (a) The condition is immediately corrected; or 22 (b) The licensee presents to the agent of the Board a plan for 23 the continued operation of the cannabis establishment and the 24 agent of the Board approves the plan. 25 Sec. 31. NRS 678B.060 is hereby amended to read as follows: 26 678B.060 “Inventory control system” means a process, device 27 or other contrivance that may be used to monitor the chain of 28 custody of cannabis from the point of [cultivation] acquisition to the 29 end consumer. 30 Sec. 32. NRS 678B.210 is hereby amended to read as follows: 31 678B.210 1. A person shall not engage in the business of a 32 medical cannabis establishment unless the person holds a medical 33 cannabis establishment license issued by the Board pursuant to this 34 section. 35 2. A person who wishes to engage in the business of a medical 36 cannabis establishment must submit to the Board an application on a 37 form prescribed by the Board. 38 3. Except as otherwise provided in NRS 678B.215 to 39 678B.240, inclusive, not later than 90 days after receiving an 40 application to engage in the business of a medical cannabis 41 establishment, the Board shall register the medical cannabis 42 establishment and issue a medical cannabis establishment license 43 and a random 20-digit alphanumeric identification number if: 44 – 25 – - *AB76* (a) The person who wishes to operate the proposed medical 1 cannabis establishment has submitted to the Board all of the 2 following: 3 (1) The application fee, as set forth in NRS 678B.390; 4 (2) An application, which must include: 5 (I) The legal name of the proposed medical cannabis 6 establishment; 7 (II) The physical address where the proposed medical 8 cannabis establishment will be located and the physical address of 9 any co-owned additional or otherwise associated medical cannabis 10 establishments, the locations of which may not be on the property of 11 an airport, within 1,000 feet of a public or private school that 12 provides formal education traditionally associated with preschool or 13 kindergarten through grade 12 and that existed on the date on which 14 the application for the proposed medical cannabis establishment was 15 submitted to the Board, within 300 feet of a community facility that 16 existed on the date on which the application for the proposed 17 medical cannabis establishment was submitted to the Board or, if the 18 proposed medical cannabis establishment will be located in a county 19 whose population is 100,000 or more, within 1,500 feet of an 20 establishment that holds a nonrestricted gaming license described in 21 subsection 1 or 2 of NRS 463.0177 and that existed on the date on 22 which the application for the proposed medical cannabis 23 establishment was submitted to the Board; 24 (III) Evidence that the applicant controls not less than 25 $250,000 in liquid assets to cover the initial expenses of opening the 26 proposed medical cannabis establishment and complying with the 27 provisions of this title; 28 (IV) Evidence that the applicant owns the property on 29 which the proposed medical cannabis establishment will be located 30 or has the written permission of the property owner to operate the 31 proposed medical cannabis establishment on that property; 32 (V) For the applicant and each person who is proposed to 33 be an owner, officer or board member of the proposed medical 34 cannabis establishment, a complete set of the person’s fingerprints 35 and written permission of the person authorizing the Board to 36 forward the fingerprints to the Central Repository for Nevada 37 Records of Criminal History for submission to the Federal Bureau 38 of Investigation for its report; and 39 (VI) The name, address and date of birth of each person 40 who is proposed to be an owner, officer or board member of the 41 proposed medical cannabis establishment; 42 (3) Operating procedures consistent with rules of the Board 43 for oversight of the proposed medical cannabis establishment, 44 including, without limitation: 45 – 26 – - *AB76* (I) Procedures to ensure the use of adequate security 1 measures; and 2 (II) The use of an electronic verification and 3 authentication system and an inventory control system pursuant to 4 NRS 678C.420 and [678C.430;] section 27 of this act; 5 (4) If the proposed medical cannabis establishment will sell 6 or deliver medical cannabis products, proposed operating 7 procedures for handling such products which must be preapproved 8 by the Board; 9 (5) If the city or county in which the proposed medical 10 cannabis establishment will be located has enacted zoning 11 restrictions, proof that the proposed location is in compliance with 12 those restrictions and satisfies all applicable building requirements; 13 and 14 (6) Such other information as the Board may require by 15 regulation; 16 (b) Except as otherwise provided in NRS 678B.633, none of the 17 persons who are proposed to be owners, officers or board members 18 of the proposed medical cannabis establishment have been 19 convicted of an excluded felony offense; 20 (c) None of the persons who are proposed to be owners, officers 21 or board members of the proposed medical cannabis establishment 22 have: 23 (1) Served as an owner, officer or board member for a 24 cannabis establishment that has had its medical cannabis 25 establishment license or adult-use cannabis establishment license 26 revoked; 27 (2) Previously had a cannabis establishment agent 28 registration card revoked; 29 (3) Previously had a cannabis establishment agent 30 registration card for a cannabis executive revoked; or 31 (4) Previously had a cannabis establishment agent 32 registration card for a cannabis receiver revoked; and 33 (d) None of the persons who are proposed to be owners, officers 34 or board members of the proposed medical cannabis establishment 35 are under 21 years of age. 36 4. For each person who submits an application pursuant to this 37 section, and each person who is proposed to be an owner, officer or 38 board member of a proposed medical cannabis establishment, the 39 Board shall submit the fingerprints of the person to the Central 40 Repository for Nevada Records of Criminal History for submission 41 to the Federal Bureau of Investigation to determine the criminal 42 history of that person. 43 5. Except as otherwise provided in subsection 6 and NRS 44 678B.215, if an application for registration as a medical cannabis 45 – 27 – - *AB76* establishment satisfies the requirements of this section, is qualified 1 in the determination of the Board pursuant to NRS 678B.200 and 2 the establishment is not disqualified from being registered as a 3 medical cannabis establishment pursuant to this section or other 4 applicable law, the Board shall issue to the establishment a medical 5 cannabis establishment license. A medical cannabis establishment 6 license expires 1 year after the date of issuance and may be renewed 7 upon: 8 (a) Submission of the information required by the Board by 9 regulation; and 10 (b) Payment of the renewal fee set forth in NRS 678B.390. 11 6. In determining whether to issue a medical cannabis 12 establishment license pursuant to this section, the Board shall 13 consider the criteria of merit set forth in NRS 678B.240. 14 7. For the purposes of sub-subparagraph (II) of subparagraph 15 (2) of paragraph (a) of subsection 3, the distance must be measured 16 from the front door of the proposed medical cannabis establishment 17 to the closest point of the property line of a school, community 18 facility or gaming establishment. 19 8. As used in this section [, “community] : 20 (a) “Community facility” means: 21 [(a)] (1) A [facility that provides day care to children.] 22 licensed child care facility, as defined in NRS 432A.024. 23 [(b)] (2) A public park. 24 [(c)] (3) A playground [.] , as defined in NRS 453.3345. 25 [(d)] (4) A public swimming pool [.] , as defined in 26 NRS 444.065. 27 [(e)] (5) A [center or facility, the primary purpose of which 28 is to provide] recreational [opportunities or services to children or 29 adolescents.] center for youths. 30 [(f)] (6) A [church, synagogue or other building, structure or 31 place used for] video arcade, as defined in NRS 453.3345. 32 (7) A place of religious worship . [or other religious 33 purpose.] 34 (b) “Place of religious worship” means a church, synagogue 35 or other building or structure that is owned and operated by a 36 church, an integrated auxiliary of a church or a convention or 37 association of churches that is exempt for taxation pursuant to 38 section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 39 501(c)(3), and exempt from filing an annual return pursuant to 40 section 6033 of the Internal Revenue Code, 26 U.S.C. § 6033. The 41 term does not include any building, structure or other place that is 42 owned and operated by an organization that is listed on the most 43 recent version of the Automatic Revocation of Exemption List 44 published by the Internal Revenue Service, regardless of whether 45 – 28 – - *AB76* the organization identifies as a church, an integrated auxiliary of 1 a church or a convention or association of churches. 2 (c) “Private school” has the meaning ascribed to it in 3 NRS 394.103. 4 (d) “Public school” has the meaning ascribed to it in 5 NRS 385.007. 6 (e) “Recreational center for youths” means a recreational 7 facility or gymnasium which regularly provides athletic, civic or 8 cultural activities in which more than 75 percent of the 9 participants are persons who are less than 18 years of age. 10 Sec. 33. NRS 678B.215 is hereby amended to read as follows: 11 678B.215 1. Except as otherwise provided in this section, the 12 Board shall not, on or after January 1, 2024, issue any additional 13 medical cannabis establishment licenses or renew a medical 14 cannabis establishment license pursuant to NRS 678B.210. 15 2. The Board may, on or after January 1, 2024: 16 (a) Issue a medical cannabis establishment license to an 17 applicant pursuant to NRS 678B.210 if the proposed medical 18 cannabis establishment will be located in a local governmental 19 jurisdiction that is a covered jurisdiction. 20 (b) Renew the medical cannabis establishment license of a 21 medical cannabis establishment pursuant to NRS 678B.210 so long 22 as the local governmental jurisdiction in which the medical cannabis 23 establishment is located is a covered jurisdiction. 24 3. If a local governmental jurisdiction that is a covered 25 jurisdiction ceases to be a covered jurisdiction, a person who holds a 26 medical cannabis establishment license for a medical cannabis 27 establishment located in the local governmental jurisdiction may, 28 upon expiration of the license, submit an application to the Board 29 for the issuance of an adult-use cannabis establishment license of 30 the same type. 31 4. An application submitted pursuant to subsection 3 must: 32 (a) Contain the same information as required for the renewal of 33 a medical cannabis establishment license pursuant to NRS 34 678B.210; and 35 (b) Be accompanied by a fee in an amount that is equal to the 36 fee for the renewal of an adult-use cannabis establishment license of 37 the same type as that of the medical cannabis establishment license 38 which has expired, as set forth in NRS 678B.390. 39 5. If the Board determines that the applicant would have been 40 eligible to renew the medical cannabis establishment license which 41 has expired, the Board shall issue to the applicant an adult-use 42 cannabis establishment license of the same type. 43 6. Except as otherwise provided in subsection 7, an adult-use 44 cannabis establishment license issued by the Board pursuant to this 45 – 29 – - *AB76* section shall be deemed to be an adult-use cannabis establishment 1 license issued by the Board pursuant to NRS 678B.250. 2 7. An adult-use cannabis establishment license issued by the 3 Board pursuant to this section shall be deemed to be a medical 4 cannabis establishment license of the same type for the purposes of 5 NRS 678B.220, 678B.230, 678B.260 and 678B.270. 6 8. As used in this section [: 7 (a) “Covered] , “covered jurisdiction” means a local 8 governmental jurisdiction that has adopted local cannabis control 9 measures which prohibit the operation of adult-use cannabis 10 establishments in the local governmental jurisdiction. 11 [(b) “Local governmental jurisdiction” means a city or 12 unincorporated area within a county.] 13 Sec. 34. NRS 678B.230 is hereby amended to read as follows: 14 678B.230 1. Except as otherwise provided in this subsection, 15 in a county whose population is 100,000 or more, the Board shall 16 ensure that not more than 25 percent of the total number of medical 17 cannabis dispensaries that may be licensed in the county, as set forth 18 in NRS 678B.220, are located in any one local governmental 19 jurisdiction within the county. The Board may increase the 20 percentage described in this subsection upon the request of the 21 board of county commissioners of the county. The Board shall adopt 22 regulations setting forth the requirements for granting such a 23 request. 24 2. To prevent monopolistic practices, the Board shall ensure, in 25 a county whose population is 100,000 or more, that it does not issue, 26 to any one person, group of persons or entity, the greater of: 27 (a) One medical cannabis establishment license; or 28 (b) More than 10 percent of the medical cannabis establishment 29 licenses otherwise allocable in the county. 30 [3. As used in this section, “local governmental jurisdiction” 31 means a city or unincorporated area within a county.] 32 Sec. 35. NRS 678B.250 is hereby amended to read as follows: 33 678B.250 1. A person shall not engage in the business of an 34 adult-use cannabis establishment unless the person holds an adult-35 use cannabis establishment license issued pursuant to this section. 36 2. A person who wishes to engage in the business of an adult-37 use cannabis establishment must submit to the Board an application 38 on a form prescribed by the Board. 39 3. Except as otherwise provided in NRS 678B.260, 678B.270, 40 678B.280, 678B.322 and 678B.324 to 678B.328, inclusive, the 41 Board shall issue an adult-use cannabis establishment license to an 42 applicant if: 43 – 30 – - *AB76* (a) The person who wishes to operate the proposed adult-use 1 cannabis establishment has submitted to the Board all of the 2 following: 3 (1) The application fee, as set forth in NRS 678B.390; 4 (2) An application, which must include: 5 (I) The legal name of the proposed adult-use cannabis 6 establishment; 7 (II) The physical address where the proposed adult-use 8 cannabis establishment will be located and the physical address of 9 any co-owned additional or otherwise associated adult-use cannabis 10 establishments, the locations of which may not be on the property of 11 an airport, within 1,000 feet of a public or private school that 12 provides formal education traditionally associated with preschool or 13 kindergarten through grade 12 and that existed on the date on which 14 the application for the proposed adult-use cannabis establishment 15 was submitted to the Board, within 300 feet of a community facility 16 that existed on the date on which the application for the proposed 17 adult-use cannabis establishment was submitted to the Board or, if 18 the proposed adult-use cannabis establishment will be located in a 19 county whose population is 100,000 or more, within 1,500 feet of an 20 establishment that holds a nonrestricted gaming license described in 21 subsection 1 or 2 of NRS 463.0177 and that existed on the date on 22 which the application for the proposed adult-use cannabis 23 establishment was submitted to the Board; 24 (III) Evidence that the applicant controls liquid assets in 25 an amount determined by the Board to be sufficient to cover the 26 initial expenses of opening the proposed adult-use cannabis 27 establishment and complying with the provisions of this title; 28 (IV) Evidence that the applicant owns the property on 29 which the proposed adult-use cannabis establishment will be located 30 or has the written permission of the property owner to operate the 31 proposed adult-use cannabis establishment on that property; 32 (V) For the applicant and each person who is proposed to 33 be an owner, officer or board member of the proposed adult-use 34 cannabis establishment, a complete set of the person’s fingerprints 35 and written permission of the person authorizing the Board to 36 forward the fingerprints to the Central Repository for Nevada 37 Records of Criminal History for submission to the Federal Bureau 38 of Investigation for its report; and 39 (VI) The name, address and date of birth of each person 40 who is proposed to be an owner, officer or board member of the 41 proposed adult-use cannabis establishment; 42 (3) Operating procedures consistent with rules of the Board 43 for oversight of the proposed adult-use cannabis establishment, 44 including, without limitation: 45 – 31 – - *AB76* (I) Procedures to ensure the use of adequate security 1 measures; and 2 (II) The use of an inventory control system [;] pursuant 3 to section 27 of this act; 4 (4) If the proposed adult-use cannabis establishment will sell 5 or deliver adult-use cannabis products, proposed operating 6 procedures for handling such products which must be preapproved 7 by the Board; and 8 (5) Such other information as the Board may require by 9 regulation; 10 (b) Except as otherwise provided in NRS 678B.633, none of the 11 persons who are proposed to be owners, officers or board members 12 of the proposed adult-use cannabis establishment have been 13 convicted of an excluded felony offense; 14 (c) None of the persons who are proposed to be owners, officers 15 or board members of the proposed adult-use cannabis establishment 16 have: 17 (1) Served as an owner, officer or board member for a 18 cannabis establishment that has had its adult-use cannabis 19 establishment license or medical cannabis establishment license 20 revoked; 21 (2) Previously had a cannabis establishment agent 22 registration card revoked; 23 (3) Previously had a cannabis establishment agent 24 registration card for a cannabis executive revoked; or 25 (4) Previously had a cannabis establishment agent 26 registration card for a cannabis receiver revoked; and 27 (d) None of the persons who are proposed to be owners, officers 28 or board members of the proposed adult-use cannabis establishment 29 are under 21 years of age. 30 4. For each person who submits an application pursuant to this 31 section, and each person who is proposed to be an owner, officer or 32 board member of a proposed adult-use cannabis establishment, the 33 Board shall submit the fingerprints of the person to the Central 34 Repository for Nevada Records of Criminal History for submission 35 to the Federal Bureau of Investigation to determine the criminal 36 history of that person. 37 5. Except as otherwise provided in subsection 6, if an applicant 38 for licensure to operate an adult-use cannabis establishment satisfies 39 the requirements of this section, is qualified in the determination of 40 the Board pursuant to NRS 678B.200 and is not disqualified from 41 being licensed pursuant to this section or other applicable law, the 42 Board shall issue to the applicant an adult-use cannabis 43 establishment license. An adult-use cannabis establishment license 44 expires 1 year after the date of issuance and may be renewed upon: 45 – 32 – - *AB76* (a) Submission of the information required by the Board by 1 regulation; and 2 (b) Payment of the renewal fee set forth in NRS 678B.390. 3 6. In determining whether to issue an adult-use cannabis 4 license pursuant to this section, the Board shall consider the criteria 5 of merit and scoring guidelines set forth in NRS 678B.280 or 6 678B.324, as applicable. 7 7. For the purposes of sub-subparagraph (II) of subparagraph 8 (2) of paragraph (a) of subsection 3, the distance must be measured 9 from the front door of the proposed adult-use cannabis 10 establishment to the closest point of the property line of a school, 11 community facility or gaming establishment. 12 8. As used in this section [, “community] : 13 (a) “Community facility” [means: 14 (a) A facility that provides day care to children. 15 (b) A public park. 16 (c) A playground. 17 (d) A public swimming pool. 18 (e) A center or facility, the primary purpose of which is to 19 provide recreational opportunities or services to children or 20 adolescents. 21 (f) A church, synagogue or other building, structure or place 22 used for religious worship or other religious purpose.] has the 23 meaning ascribed to it in NRS 678B.210. 24 (b) “Private school” has the meaning ascribed to it in 25 NRS 394.103. 26 (c) “Public school” has the meaning ascribed to it in 27 NRS 385.007. 28 Sec. 36. NRS 678B.290 is hereby amended to read as follows: 29 678B.290 1. The Board shall establish standards for [and 30 certify one or more] cannabis independent testing laboratories to: 31 (a) Test cannabis for adult use and adult-use cannabis products 32 that are to be sold in this State; 33 (b) Test cannabis for medical use and medical cannabis products 34 that are to be sold in this State; and 35 (c) In addition to the testing described in paragraph (a) or (b), 36 test commodities or products containing hemp, as defined in NRS 37 557.160, or cannabidiol which are intended for human or animal 38 consumption and sold by a cannabis establishment or a person 39 described in NRS 446.844. 40 2. Such a cannabis independent testing laboratory must be able 41 to: 42 (a) Determine accurately, with respect to cannabis or cannabis 43 products that are sold or will be sold at cannabis sales facilities in 44 this State: 45 – 33 – - *AB76* (1) The concentration therein of THC and cannabidiol. 1 (2) The presence and identification of microbes, molds and 2 fungi. 3 (3) The composition of the tested material. 4 (4) The presence of chemicals in the tested material, 5 including, without limitation, pesticides, heavy metals, herbicides or 6 growth regulators. 7 (5) The presence of any other substance, chemical, material 8 or organism required by the Board by regulation. 9 (b) Demonstrate the validity and accuracy of the methods used 10 by the cannabis independent testing laboratory to test cannabis and 11 cannabis products. 12 3. To obtain a license to operate a cannabis independent testing 13 laboratory, an applicant must: 14 (a) Apply successfully as required pursuant to NRS 678B.210 or 15 678B.250, as applicable. 16 (b) Pay the fees required pursuant to NRS 678B.390. 17 (c) [Agree to] Satisfy any other requirements established by the 18 Board by regulation. 19 4. A cannabis independent testing laboratory shall, not more 20 than 1 year after the date on which the cannabis independent 21 testing laboratory is issued a license by the Board pursuant to 22 NRS 678B.210 or 678B.250, become accredited pursuant to 23 standard ISO/IEC 17025 of the International Organization for 24 Standardization [within 1 year after licensure] by an impartial 25 organization that operates in accordance with standard ISO/IEC 26 17011 of the International Organization for Standardization and is a 27 signatory to the Mutual Recognition Arrangement of the 28 International Laboratory Accreditation Cooperation. 29 5. The Board may adopt regulations establishing standards 30 and procedures for the operation of a cannabis independent 31 testing laboratory, including, without limitation, regulations 32 setting forth requirements concerning: 33 (a) The construction or layout of a building used for testing 34 cannabis and cannabis products; 35 (b) The procedures, process, equipment, instruments, materials 36 or supplies used for testing cannabis and cannabis products; 37 (c) Safety procedures to ensure that cannabis and cannabis 38 products are protected from contamination from physical, 39 chemical or biological hazardous materials; and 40 (d) The creation and retention of records by a cannabis 41 independent testing laboratory, including, without limitation, 42 records related to the finances of the cannabis independent testing 43 laboratory and testing performed by the cannabis independent 44 testing laboratory. 45 – 34 – - *AB76* Sec. 37. NRS 678B.320 is hereby amended to read as follows: 1 678B.320 1. In a local governmental jurisdiction that issues 2 business licenses, the issuance by the Board of a license shall be 3 deemed to be conditional until such time as: 4 (a) The cannabis establishment is in compliance with all 5 applicable local governmental ordinances or rules; [and] 6 (b) The local government has issued a business license for the 7 operation of the cannabis establishment [.] ; and 8 (c) The cannabis establishment satisfies an inspection 9 conducted by the Board. 10 2. The Board shall adopt regulations: 11 (a) Requiring the surrender of a conditional license if a cannabis 12 establishment does not satisfy the requirements of subsection 1 13 within a period of time determined by the Board; and 14 (b) Authorizing a cannabis establishment to request an extension 15 of the period of time established pursuant to paragraph (a) as a result 16 of factors outside of the control of the cannabis establishment that 17 cause a delay in satisfying the requirements of subsection 1. 18 [3. As used in this section, “local governmental jurisdiction” 19 means a city or unincorporated area within a county.] 20 Sec. 38. NRS 678B.327 is hereby amended to read as follows: 21 678B.327 1. The Board shall, for each local governmental 22 jurisdiction that limits the number of business licenses which may 23 be issued to cannabis consumption lounges, determine the number 24 of licenses allocated to the jurisdiction for retail cannabis 25 consumption lounges and independent cannabis consumption 26 lounges. 27 2. Not more than 50 percent of the licenses allocated by the 28 Board pursuant to subsection 1 may be issued to retail cannabis 29 consumption lounges. 30 3. Except as otherwise provided in this subsection, at least 50 31 percent of the licenses allocated to a local governmental jurisdiction 32 pursuant to subsection 1 must be issued to independent cannabis 33 consumption lounges. At least 50 percent of the licenses issued to 34 independent cannabis consumption lounges must be issued to social 35 equity applicants. If there are an insufficient number of social equity 36 applicants to distribute licenses in that manner, the local 37 governmental jurisdiction shall issue business licenses to all 38 qualified social equity applicants and hold the remaining business 39 licenses in reserve for future issuance to social equity applicants. 40 4. If the number of qualified applicants in a local governmental 41 jurisdiction exceeds the number of licenses allocated to that 42 jurisdiction pursuant to subsection 1, the Board shall issue adult-use 43 cannabis establishment licenses for retail cannabis consumption 44 lounges and independent cannabis consumption lounges in the local 45 – 35 – - *AB76* governmental jurisdiction to qualified applicants who are not social 1 equity applicants using a separate lottery system for each type of 2 license. 3 [5. As used in this section, “local governmental jurisdiction” 4 means a city or unincorporated area within a county.] 5 Sec. 39. NRS 678B.510 is hereby amended to read as follows: 6 678B.510 1. The operating documents of a cannabis 7 establishment must include procedures: 8 (a) For the oversight of the cannabis establishment; [and] 9 (b) To ensure accurate recordkeeping [.] ; 10 (c) For the training of the cannabis establishment agents who 11 volunteer or work at, contract to provide labor to or are employed 12 by an independent contractor to provide labor to the cannabis 13 establishment; and 14 (d) Any other procedures for the operation of the cannabis 15 establishment established by the Board by regulation. 16 2. Except as otherwise provided in this subsection, a cannabis 17 establishment may have more than one entrance so long as each 18 entrance is secure and shall implement strict security measures to 19 deter and prevent the theft of cannabis and unauthorized entrance 20 into areas containing cannabis. The provisions of this subsection do 21 not supersede any state or local requirements relating to minimum 22 numbers of points of entry or exit, or any state or local requirements 23 relating to fire safety. 24 3. Except as otherwise provided in NRS 678D.400, all 25 cultivation or production of cannabis that a cannabis cultivation 26 facility carries out or causes to be carried out must take place in an 27 enclosed, locked facility at the physical address provided to the 28 Board during the licensing process for the cannabis cultivation 29 facility. Such an enclosed, locked facility must be accessible only by 30 cannabis establishment agents who are lawfully associated with the 31 cannabis cultivation facility, except that limited access by persons 32 necessary to perform construction or repairs or provide other labor 33 is permissible if such persons are supervised by a cannabis 34 establishment agent. 35 4. A cannabis establishment that is not a cannabis consumption 36 lounge shall not allow any person to consume cannabis on the 37 property or premises of the establishment. 38 5. Cannabis establishments are subject to [reasonable] 39 inspection by the Board at any time, and a person who holds a 40 license must make himself or herself, or a designee thereof, 41 available and present for any inspection by the Board of the 42 cannabis establishment. 43 6. Each cannabis establishment shall install a video monitoring 44 system which must, at a minimum: 45 – 36 – - *AB76* (a) Allow for the transmission and storage, by digital or analog 1 means, of a video feed which displays the interior and exterior of the 2 cannabis establishment; [and] 3 (b) Be capable of being accessed remotely by a law enforcement 4 agency in real-time upon request [.] ; and 5 (c) Satisfy any other requirements established by the Board by 6 regulation. 7 7. A cannabis establishment [shall not] may, upon approval of 8 the Board, dispense or otherwise sell cannabis or cannabis products 9 from a vending machine or allow such a vending machine to be 10 installed at the interior or exterior of the premises of the cannabis 11 establishment. As used in this subsection, “vending machine” has 12 the meaning ascribed to it in NRS 209.229. 13 Sec. 40. NRS 678B.520 is hereby amended to read as follows: 14 678B.520 1. Each cannabis establishment shall, in 15 consultation with the Board, cooperate to ensure that all cannabis 16 products offered for sale: 17 (a) Are labeled clearly and unambiguously: 18 (1) As cannabis with the words “THIS PRODUCT 19 CONTAINS CANNABIS” in bold type; and 20 (2) As required by the provisions of this chapter , [and] 21 chapters 678C and 678D of NRS [.] and the regulations adopted by 22 the Board. 23 (b) Are not presented in packaging that contains an image of a 24 cartoon character, mascot, action figure, balloon or toy, except that 25 such an item may appear in the logo of the cannabis production 26 facility which produced the product. 27 (c) Are regulated and sold on the basis of the concentration of 28 THC in the products and not by weight. 29 (d) Are packaged and labeled in such a manner as to allow 30 tracking by way of an inventory control system. 31 (e) Are not packaged and labeled in a manner which is modeled 32 after a brand of products primarily consumed by or marketed to 33 children. 34 (f) Are labeled in a manner which indicates the amount of THC 35 in the product, measured in milligrams, and includes a statement 36 that the product contains cannabis and its potency was tested with an 37 allowable variance of the amount determined by the Board by 38 regulation. 39 (g) Are not labeled or marketed as candy. 40 (h) Are labeled with: 41 (1) The words “Keep out of reach of children”; 42 (2) A list of all ingredients used in the cannabis product; 43 (3) A list of all major food allergens in the cannabis product; 44 and 45 – 37 – - *AB76* (4) Any other information the Board may require by 1 regulation. 2 2. A cannabis production facility shall not produce cannabis 3 products in any form that: 4 (a) Is or appears to be a lollipop. 5 (b) Bears the likeness or contains characteristics of a real or 6 fictional person, animal or fruit, including, without limitation, a 7 caricature, cartoon or artistic rendering. 8 (c) Contains an anthropomorphic image. 9 (d) Is modeled after a brand of products primarily consumed by 10 or marketed to children. 11 [(d)] (e) Is made by applying concentrated cannabis, as defined 12 in NRS 453.042, to a commercially available candy or snack food 13 item other than dried fruit, nuts or granola. 14 3. A cannabis production facility shall: 15 (a) Seal any cannabis product that consists of cookies or 16 brownies in a bag or other container which is not transparent. 17 (b) Maintain a hand washing area with hot water, soap and 18 disposable towels which is located away from any area in which 19 cannabis products are cooked or otherwise prepared. 20 (c) Require each person who handles cannabis products to 21 restrain his or her hair, wear clean clothing and keep his or her 22 fingernails neatly trimmed. 23 (d) Package all cannabis products produced by the cannabis 24 production facility on the premises of the cannabis production 25 facility. 26 4. A cannabis establishment shall not engage in advertising or 27 use packaging for cannabis or cannabis products that in any way 28 makes cannabis or cannabis products appeal to children, including, 29 without limitation, advertising or packaging which uses an 30 anthropomorphic image or an image of a cartoon character, 31 mascot, action figure, balloon, fruit or toy. 32 5. Each cannabis sales facility shall offer for sale containers for 33 the storage of cannabis and cannabis products which lock and are 34 designed to prohibit children from unlocking and opening the 35 container. 36 6. A cannabis sales facility shall: 37 (a) Convey to each purchaser of cannabis or cannabis products 38 the following information in a manner prescribed by the Board: 39 (1) To keep cannabis and cannabis products out of the reach 40 of children; 41 (2) That cannabis products can cause severe illness in 42 children; 43 (3) That allowing children to ingest cannabis or cannabis 44 products or storing cannabis or cannabis products in a location 45 – 38 – - *AB76* which is accessible to children may result in an investigation by an 1 agency which provides child welfare services or criminal 2 prosecution for child abuse or neglect; 3 (4) That the intoxicating effects of edible cannabis products 4 may be delayed by 2 hours or more and users of edible cannabis 5 products should initially ingest a small amount of the product, then 6 wait at least 120 minutes before ingesting any additional amount of 7 the product; 8 (5) That pregnant women should consult with a physician 9 before ingesting cannabis or cannabis products; 10 (6) That ingesting cannabis or cannabis products with 11 alcohol or other drugs, including prescription medication, may result 12 in unpredictable levels of impairment and that a person should 13 consult with a physician before doing so; 14 (7) That cannabis or cannabis products can impair 15 concentration, coordination and judgment and a person should not 16 operate a motor vehicle while under the influence of cannabis or 17 cannabis products; and 18 (8) That ingestion of any amount of cannabis or cannabis 19 products before driving may result in criminal prosecution for 20 driving under the influence. 21 (b) Enclose all cannabis and cannabis products in opaque, child-22 resistant packaging upon sale. 23 7. A cannabis sales facility shall allow any person who is at 24 least 21 years of age to enter the premises of the cannabis sales 25 facility. 26 8. If the health authority, as defined in NRS 446.050, where a 27 cannabis production facility, cannabis sales facility or cannabis 28 consumption lounge which sells edible cannabis products is located 29 requires persons who handle food at a food establishment to obtain 30 certification, the cannabis production facility, cannabis sales facility 31 or cannabis consumption lounge shall ensure that at least one 32 employee maintains such certification. 33 9. A cannabis production facility may [sell] acquire hemp, and 34 a cannabis sales facility may acquire hemp or a commodity or 35 product made using hemp, [as defined in NRS 557.160, or 36 containing cannabidiol] from any source approved by the Board. 37 10. A cannabis production facility may: 38 (a) Use hemp to manufacture cannabis products; and 39 (b) Sell to a cannabis sales facility [. 40 10.] a cannabis product that contains hemp. 41 11. In addition to any other product authorized by the 42 provisions of this title, a cannabis sales facility may sell: 43 – 39 – - *AB76* (a) [Any] Hemp, any commodity or product made using hemp [, 1 as defined in NRS 557.160;] or any cannabis product that contains 2 hemp; 3 (b) Any commodity or product containing cannabidiol with a 4 THC concentration of not more than 0.3 percent; and 5 (c) Any other product specified by regulation of the Board. 6 [11.] 12. A cannabis establishment: 7 (a) Shall not engage in advertising which contains any statement 8 or illustration that: 9 (1) Is false or misleading; 10 (2) Promotes overconsumption of cannabis or cannabis 11 products; 12 (3) Depicts the actual consumption of cannabis or cannabis 13 products; or 14 (4) Depicts a child or other person who is less than 21 years 15 of age consuming cannabis or cannabis products or objects 16 suggesting the presence of a child, including, without limitation, 17 toys, characters or cartoons, or contains any other depiction which is 18 designed in any manner to be appealing to or encourage 19 consumption of cannabis or cannabis products by a person who is 20 less than 21 years of age. 21 (b) Shall not advertise in any publication or on radio, television 22 or any other medium if 30 percent or more of the audience of that 23 medium is reasonably expected to be persons who are less than 21 24 years of age. 25 (c) Shall not place an advertisement: 26 (1) Within 1,000 feet of a public or private school, 27 playground, public park or library, but may maintain such an 28 advertisement if it was initially placed before the school, 29 playground, public park or library was located within 1,000 feet of 30 the location of the advertisement; 31 (2) On or inside of a motor vehicle used for public 32 transportation or any shelter for public transportation; 33 (3) At a sports event to which persons who are less than 21 34 years of age are allowed entry; or 35 (4) At an entertainment event if it is reasonably estimated 36 that 30 percent or more of the persons who will attend that event are 37 less than 21 years of age. 38 (d) Shall not advertise or offer any cannabis or cannabis product 39 as “free” or “donated” without a purchase. 40 (e) Shall ensure that all advertising by the cannabis 41 establishment contains such warnings as may be prescribed by the 42 Board, which must include, without limitation, the following words: 43 (1) “Keep out of reach of children”; and 44 (2) “For use only by adults 21 years of age and older.” 45 – 40 – - *AB76* (f) Shall ensure that all advertising by the cannabis 1 establishment contains: 2 (1) The name of the cannabis establishment; and 3 (2) Except as otherwise provided in subsection [12,] 13, the 4 adult-use cannabis establishment license number or medical 5 cannabis establishment license number of the cannabis 6 establishment or any other unique identifier assigned to the cannabis 7 establishment by the Board. 8 [12.] 13. A cannabis establishment that holds more than one 9 license may satisfy the requirement set forth in subparagraph (2) of 10 paragraph (f) of subsection [11] 12 if the cannabis establishment 11 includes in all advertising conducted by the cannabis establishment: 12 (a) Any one of the adult-use cannabis establishment license 13 numbers or medical cannabis establishment license numbers of the 14 cannabis establishment; or 15 (b) Any one unique identifier assigned to the cannabis 16 establishment by the Board. 17 [13.] 14. Nothing in subsection [11] 12 shall be construed to 18 prohibit a local government, pursuant to chapter 244, 268 or 278 of 19 NRS, from adopting an ordinance for the regulation of advertising 20 relating to cannabis which is more restrictive than the provisions of 21 subsection [11] 12 relating to: 22 (a) The number, location and size of signs, including, without 23 limitation, any signs carried or displayed by a natural person; 24 (b) Handbills, pamphlets, cards or other types of advertisements 25 that are distributed [,] to the general public, excluding an 26 advertisement placed in a newspaper of general circulation, trade 27 publication or other form of print media; 28 (c) Any stationary or moving display that is located on or near 29 the premises of a cannabis establishment; and 30 (d) The content of any advertisement used by a cannabis 31 establishment if the ordinance sets forth specific prohibited content 32 for such an advertisement. 33 [14.] 15. If a cannabis establishment engages in advertising for 34 which it is required to determine the percentage of persons who are 35 less than 21 years of age and who may reasonably be expected to 36 view or hear the advertisement, the cannabis establishment shall 37 maintain documentation for not less than 5 years after the date on 38 which the advertisement is first broadcasted, published or otherwise 39 displayed that demonstrates the manner in which the cannabis 40 establishment determined the reasonably expected age of the 41 audience for that advertisement. 42 [15.] 16. To the extent that they are inconsistent or otherwise 43 conflict with the regulations adopted by the Board pursuant to NRS 44 678D.480, the requirements of this section pertaining to cannabis 45 – 41 – - *AB76* products do not apply to ready-to-consume cannabis products 1 prepared and sold by a cannabis consumption lounge. 2 [16.] 17. In addition to any other penalties provided for by 3 law, the Board may impose a civil penalty upon a cannabis 4 establishment that violates the provisions of subsection [11] 12 or 5 [14] 15 as follows: 6 (a) For the first violation in the immediately preceding 2 years, a 7 civil penalty not to exceed $1,250. 8 (b) For the second violation in the immediately preceding 2 9 years, a civil penalty not to exceed $2,500. 10 (c) For the third violation in the immediately preceding 2 years, 11 a civil penalty not to exceed $5,000. 12 (d) For the fourth violation in the immediately preceding 2 13 years, a civil penalty not to exceed $10,000. 14 [17.] 18. As used in this section [, “motor] : 15 (a) “Anthropomorphic image” means any image, including, 16 without limitation, a caricature, cartoon or artistic rendering, in 17 which human characteristics are attributed to an animal, plant or 18 other object or which uses similar anthropomorphic techniques. 19 (b) “Hemp” has the meaning ascribed to it in NRS 557.160. 20 (c) “Motor vehicle used for public transportation” does not 21 include a taxicab, as defined in NRS 706.124. 22 Sec. 41. NRS 678B.530 is hereby amended to read as follows: 23 678B.530 1. A person shall not: 24 (a) Advertise the sale of cannabis or cannabis products by the 25 person; [or] 26 (b) Sell, offer to sell or appear to sell cannabis or cannabis 27 products or allow the submission of an order for cannabis or 28 cannabis products [,] ; or 29 (c) Advertise as a cannabis sales facility or cannabis 30 consumption lounge, 31 unless the person holds [an adult-use cannabis establishment 32 license or a medical cannabis establishment] the appropriate type of 33 license [.] which authorizes the person to sell cannabis or 34 cannabis products or engage in the business of a cannabis sales 35 facility or cannabis consumption lounge, as applicable. 36 2. A local government shall not regulate the content of an 37 advertisement for the sale of cannabis or cannabis products unless 38 the local government adopts an ordinance setting forth such 39 regulations. 40 Sec. 42. NRS 678B.600 is hereby amended to read as follows: 41 678B.600 1. An employee of the State Department of 42 Agriculture or the Board or an attorney who represents the 43 Department or Board who, in the course of his or her duties: 44 (a) Possesses, delivers or produces cannabis; 45 – 42 – - *AB76* (b) Aids and abets another in the possession, delivery or 1 production of cannabis; 2 (c) Performs any combination of the acts described in 3 paragraphs (a) and (b); or 4 (d) Performs any other criminal offense in which the possession, 5 delivery or production of cannabis is an element, 6 is exempt from state prosecution for the offense. The persons 7 described in this subsection must ensure that the cannabis described 8 in this subsection is safeguarded in an enclosed, secure location. 9 2. In addition to the provisions of subsection 1, no person may 10 be subject to state prosecution for constructive possession, 11 conspiracy or any other criminal offense solely for being in the 12 presence or vicinity of the cannabis in accordance with the 13 provisions of this title. 14 3. As used in this section, “cannabis” includes, without 15 limitation, cannabis products. 16 Sec. 43. NRS 678C.410 is hereby amended to read as follows: 17 678C.410 1. A medical cannabis establishment is prohibited 18 from acquiring, possessing, cultivating, manufacturing, delivering, 19 transferring, transporting, supplying or dispensing cannabis for any 20 purpose except to: 21 (a) Directly or indirectly assist patients who possess valid 22 registry identification cards; 23 (b) Assist patients who possess valid registry identification cards 24 or letters of approval by way of those patients’ designated primary 25 caregivers; and 26 (c) Return for a refund cannabis, medical edible cannabis 27 products or medical cannabis-infused products to the medical 28 cannabis establishment from which the cannabis, medical edible 29 cannabis products or medical cannabis-infused products were 30 acquired. 31 For the purposes of this subsection, a person shall be deemed to 32 be a patient who possesses a valid registry identification card or 33 letter of approval if he or she qualifies for nonresident reciprocity 34 pursuant to NRS 678C.470. 35 2. A medical cannabis dispensary and a medical cultivation 36 facility may acquire usable cannabis or cannabis plants from a 37 person who holds a valid registry identification card, including, 38 without limitation, a designated primary caregiver. Except as 39 otherwise provided in this subsection, the patient or caregiver, as 40 applicable, must receive no compensation for the cannabis. A 41 patient who holds a valid registry identification card, and the 42 designated primary caregiver of such a patient, or the designated 43 primary caregiver of a person who holds a letter of approval may 44 – 43 – - *AB76* sell usable cannabis to a medical cannabis dispensary one time and 1 may sell cannabis plants to a cultivation facility one time. 2 3. [A medical cannabis production facility and a medical 3 cannabis dispensary may acquire hemp, as defined in NRS 557.160, 4 or a commodity or product made using such hemp from a grower or 5 handler registered by the State Department of Agriculture pursuant 6 to chapter 557 of NRS. A medical cannabis production facility may 7 use hemp or a commodity or product made using such hemp to 8 manufacture medical cannabis products. A medical cannabis 9 dispensary may dispense hemp or a commodity or product made 10 using such hemp and medical edible cannabis products and medical 11 cannabis-infused products manufactured using hemp or a 12 commodity or product made using such hemp. 13 4.] A dual licensee: 14 (a) Shall comply with the regulations adopted by the Board 15 pursuant to subsection 7 of NRS 678B.650 with respect to the 16 medical cannabis establishment operated by the dual licensee; and 17 (b) May, to the extent authorized by such regulations, combine 18 the location or operations of the medical cannabis establishment 19 operated by the dual licensee with the adult-use cannabis 20 establishment operated by the dual licensee. 21 [5.] 4. If a medical cannabis establishment is operated by a 22 dual licensee, any provision of this section which is determined by 23 the Board to be unreasonably impracticable pursuant to subsection 8 24 of NRS 678B.650 does not apply to the medical cannabis 25 establishment. 26 Sec. 44. NRS 678C.420 is hereby amended to read as follows: 27 678C.420 1. Each medical cannabis establishment, in 28 consultation with the Board, shall maintain an electronic verification 29 and authentication system. 30 2. The electronic verification and authentication system 31 required pursuant to subsection 1 must be able to monitor and report 32 information, including, without limitation: 33 (a) In the case of a medical cannabis dispensary, for each person 34 who holds a valid registry identification card and who purchased 35 cannabis from the dispensary in the immediately preceding [60-day] 36 120-day period: 37 (1) The number of the card; 38 (2) The date on which the card was issued; and 39 (3) The date on which the card will expire. 40 (b) For each cannabis establishment agent who is employed by 41 or volunteers at the medical cannabis establishment, the number of 42 the person’s cannabis establishment agent registration card. 43 (c) In the case of a medical cannabis dispensary, such 44 information as may be required by the Board by regulation 45 – 44 – - *AB76* regarding persons who are not residents of this State and who have 1 purchased cannabis from the dispensary. Such information may 2 include, without limitation, any information relating to any 3 document issued to a person who is not a resident of this State by 4 the state in which the person is a resident which identifies the 5 person as exempt from state prosecution for engaging in the 6 medical use of cannabis in that state. 7 (d) Verification of the identity of a person to whom cannabis or 8 medical cannabis products are sold or otherwise distributed. 9 (e) Such other information as the Board may require. 10 3. Nothing in this section prohibits more than one medical 11 cannabis establishment from co-owning an electronic verification 12 and authentication system in cooperation with other medical 13 cannabis establishments, or sharing the information obtained 14 therefrom. 15 4. A medical cannabis establishment must exercise reasonable 16 care to ensure that the personal identifying information of persons 17 who hold registry identification cards which is contained in an 18 electronic verification and authentication system is encrypted, 19 protected and not divulged for any purpose not specifically 20 authorized by law. 21 Sec. 45. NRS 678C.430 is hereby amended to read as follows: 22 678C.430 1. [Each medical cannabis establishment, in 23 consultation with the Board, shall maintain an inventory control 24 system. 25 2. The inventory control system required pursuant to 26 subsection 1 must be able to monitor and report information, 27 including, without limitation: 28 (a) Insofar as is practicable, the chain of custody and current 29 whereabouts, in real time, of cannabis from the point that it is 30 harvested at a cannabis cultivation facility until it is sold at a 31 medical cannabis dispensary and, if applicable, medical cannabis 32 production facility; 33 (b) The name of each person or other medical cannabis 34 establishment, or both, to which the establishment sold cannabis; 35 (c) In the case of a medical cannabis dispensary, the date on 36 which it sold cannabis to a person who holds a registry identification 37 card and, if any, the quantity of medical cannabis products sold, 38 measured both by weight and potency; and 39 (d) Such other information as the Board may require. 40 3. Nothing in this section prohibits more than one medical 41 cannabis establishment from co-owning an inventory control system 42 in cooperation with other medical cannabis establishments, or 43 sharing the information obtained therefrom. 44 – 45 – - *AB76* 4. A medical cannabis establishment must exercise reasonable 1 care to ensure that the personal identifying information of persons 2 who hold registry identification cards which is contained in an 3 inventory control system is encrypted, protected and not divulged 4 for any purpose not specifically authorized by law. 5 5.] If a medical cannabis establishment is operated by a dual 6 licensee, the medical cannabis establishment may: 7 (a) For the purpose of tracking cannabis for medical use, 8 maintain a combined inventory with an adult-use cannabis 9 establishment operated by the dual licensee; and 10 (b) For the purpose of reporting on the inventory of the medical 11 cannabis establishment operated by the dual licensee, maintain a 12 combined inventory with an adult-use cannabis establishment 13 operated by the dual licensee and report the combined inventory 14 under [a single medical cannabis establishment license or] the adult-15 use cannabis establishment license. 16 [6.] 2. If a medical cannabis establishment is operated by a 17 dual licensee, the medical cannabis establishment shall: 18 (a) For the purpose of reporting on the sales of any medical 19 cannabis establishment or adult-use cannabis establishment operated 20 by the dual licensee, designate each sale as a sale pursuant to the 21 provisions of this chapter or chapter 678D of NRS in its inventory 22 control system at the point of sale; and 23 (b) Verify that each person who purchases cannabis or cannabis 24 products in a sale designated as a sale pursuant to the provisions of 25 this chapter holds a valid registry identification card. 26 Sec. 46. NRS 678C.460 is hereby amended to read as follows: 27 678C.460 1. At each medical cannabis establishment, 28 medical cannabis must be stored only in an enclosed, locked facility. 29 2. Except as otherwise provided in subsection 3, at each 30 medical cannabis dispensary, medical cannabis must be stored in a 31 secure, locked device, display case, cabinet or room within the 32 enclosed, locked facility. The secure, locked device, display case, 33 cabinet or room must be protected by a lock or locking mechanism 34 that meets at least the security rating established by the 35 Underwriters Laboratories for key locks. 36 3. At a medical cannabis dispensary, medical cannabis may be 37 removed from the secure setting described in subsection 2: 38 (a) Only for the purpose of dispensing the cannabis; 39 (b) Only immediately before the cannabis is dispensed; and 40 (c) Only by a cannabis establishment agent who is employed by 41 or volunteers at the dispensary. 42 [4. A medical cannabis establishment may: 43 – 46 – - *AB76* (a) Transport medical cannabis to another medical cannabis 1 establishment or between the buildings of the medical cannabis 2 establishment; and 3 (b) Enter into a contract with a third party to transport cannabis 4 to another medical cannabis establishment or between the buildings 5 of the medical cannabis establishment.] 6 Sec. 47. NRS 678D.005 is hereby amended to read as follows: 7 678D.005 As used in this chapter, unless the context otherwise 8 requires, the words and terms defined in NRS 678D.010 [to 9 678D.040, inclusive,] , 678D.020 and 678D.030 have the meanings 10 ascribed to them in those sections. 11 Sec. 48. NRS 678D.420 is hereby amended to read as follows: 12 678D.420 1. An adult-use edible cannabis product or an 13 adult-use cannabis-infused product must be labeled in a manner 14 which indicates the number of servings of THC in the product, 15 measured in servings of a maximum of 10 milligrams per serving. 16 2. An adult-use cannabis product must be sold in a single 17 package. A single package must not contain: 18 (a) More than [1 ounce] 2.5 ounces of usable cannabis . [or one-19 eighth of an ounce of concentrated cannabis.] 20 (b) For an adult-use cannabis product sold as a capsule, more 21 than 100 milligrams of THC per capsule or more than [800] 1,000 22 milligrams of THC per package. 23 (c) For an adult-use cannabis product sold as a tincture, more 24 than [800] 1,000 milligrams of THC. 25 (d) For an adult-use edible cannabis product, more than 100 26 milligrams of THC. 27 (e) For an adult-use cannabis product sold as a topical product, a 28 concentration of more than 6 percent THC or more than [800] 1,000 29 milligrams of THC per package. 30 (f) For an adult-use cannabis product sold as a suppository or 31 transdermal patch, more than 100 milligrams of THC per 32 suppository or transdermal patch or more than [800] 1,000 33 milligrams of THC per package. 34 (g) For any other adult-use cannabis product, more than [800] 35 1,000 milligrams of THC. 36 3. To the extent that they are inconsistent or otherwise conflict 37 with the regulations adopted by the Board pursuant to NRS 38 678D.480, the requirements of this section do not apply to a ready-39 to-consume cannabis product prepared and sold by a cannabis 40 consumption lounge. 41 Sec. 49. NRS 678D.430 is hereby amended to read as follows: 42 678D.430 1. If an adult-use cannabis establishment is 43 operated by a dual licensee, the adult-use cannabis establishment 44 may: 45 – 47 – - *AB76* (a) For the purpose of tracking cannabis, maintain a combined 1 inventory with a medical cannabis establishment operated by the 2 dual licensee; and 3 (b) For the purpose of reporting on the inventory of the adult-4 use cannabis establishment, maintain a combined inventory with a 5 medical cannabis establishment operated by the dual licensee and 6 report the combined inventory under [a single medical cannabis 7 license or] the adult-use cannabis license. 8 2. If a cannabis establishment is operated by a dual licensee, 9 the cannabis establishment shall: 10 (a) For the purpose of reporting on the sales of any adult-use 11 cannabis establishment or medical cannabis establishment operated 12 by the dual licensee, designate each sale as a sale pursuant to the 13 provisions of this chapter or chapter 678C of NRS; and 14 (b) Verify that each person who purchases cannabis or cannabis 15 products in a sale designated as a sale pursuant to the provisions of 16 chapter 678C of NRS holds a valid registry identification card. 17 3. An adult-use cannabis retail store shall not sell cannabis or 18 cannabis products through the use of, or accept a sale of cannabis or 19 cannabis products from, a third party, intermediary business, broker 20 or any other business that does not hold an adult-use cannabis 21 establishment license. 22 4. An adult-use cannabis retail store may contract with a third 23 party or intermediary business to deliver cannabis or cannabis 24 products only if: 25 (a) Every sale of cannabis or cannabis products which is 26 delivered by the third party or intermediary business is made 27 directly from the adult-use cannabis retail store or an Internet 28 website, digital network or software application service of the adult-29 use cannabis retail store; 30 (b) The third party or intermediary business does not advertise 31 that it sells, offers to sell or appears to sell cannabis or cannabis 32 products or allows the submission of an order for cannabis or 33 cannabis products; 34 (c) In addition to any other requirements imposed by the Board 35 by regulation, the name of the adult-use cannabis retail store and all 36 independent contractors who perform deliveries on behalf of the 37 adult-use cannabis retail store has been published on the Internet 38 website of the Board; and 39 (d) The delivery is made by a cannabis establishment agent who 40 is authorized to make the delivery by the adult-use cannabis retail 41 store by which he or she is employed. 42 Sec. 50. NRS 678D.440 is hereby amended to read as follows: 43 678D.440 1. An adult-use cannabis distributor may transport 44 cannabis and cannabis products between [an adult-use] a cannabis 45 – 48 – - *AB76* establishment and another [adult-use] cannabis establishment or 1 between the buildings of [an adult-use] a cannabis establishment. 2 2. [An adult-use cannabis establishment shall not transport 3 cannabis or cannabis products to an adult-use cannabis retail store 4 unless the adult-use cannabis establishment holds an adult-use 5 cannabis establishment license for an adult-use cannabis distributor. 6 3.] An adult-use cannabis distributor shall not purchase or sell 7 cannabis or cannabis products unless the adult-use cannabis 8 distributor also holds [an adult-use cannabis establishment] a license 9 for a type of [adult-use] cannabis establishment authorized by law to 10 purchase or sell cannabis or cannabis products. 11 [4.] 3. An adult-use cannabis distributor may enter into an 12 agreement or contract with [an adult-use] a cannabis establishment 13 for the transport of cannabis or cannabis products. Such an 14 agreement or contract may include, without limitation, provisions 15 relating to insurance coverage, climate control and theft by a third 16 party or an employee. 17 [5.] 4. An adult-use cannabis distributor, and each cannabis 18 establishment agent employed by the adult-use cannabis distributor 19 who is involved in the transportation, is responsible for cannabis and 20 cannabis products once the adult-use cannabis distributor takes 21 control of the cannabis or cannabis products and leaves the premises 22 of [an adult-use] a cannabis establishment. 23 [6.] 5. The Board may adopt regulations establishing 24 additional requirements for the operations of an adult-use cannabis 25 distributor. 26 Sec. 51. NRS 202.2483 is hereby amended to read as follows: 27 202.2483 1. Except as otherwise provided in [subsection] 28 subsections 3 [,] and 4, smoking in any form is prohibited within 29 indoor places of employment including, but not limited to, the 30 following: 31 (a) Child care facilities; 32 (b) Movie theatres; 33 (c) Video arcades; 34 (d) Government buildings and public places; 35 (e) Malls and retail establishments; 36 (f) All areas of grocery stores; and 37 (g) All indoor areas within restaurants. 38 2. Without exception, smoking in any form is prohibited within 39 school buildings and on school property. 40 3. Smoking is not prohibited in: 41 (a) Areas within casinos where loitering by minors is already 42 prohibited by state law pursuant to NRS 463.350; 43 – 49 – - *AB76* (b) Completely enclosed areas with stand-alone bars, taverns 1 and saloons in which patrons under 21 years of age are prohibited 2 from entering; 3 (c) Age-restricted stand-alone bars, taverns and saloons; 4 (d) Strip clubs or brothels; 5 (e) Retail tobacco stores; 6 (f) The area of a convention facility in which a meeting or trade 7 show is being held, during the time the meeting or trade show is 8 occurring, if the meeting or trade show: 9 (1) Is not open to the public; 10 (2) Is being produced or organized by a business relating to 11 tobacco or a professional association for convenience stores; and 12 (3) Involves the display of tobacco products; and 13 (g) Private residences, including private residences which may 14 serve as an office workplace, except if used as a child care, an adult 15 day care or a health care facility. 16 4. The smoking of cannabis in accordance with the 17 provisions of title 56 of NRS and the regulations adopted pursuant 18 thereto is not prohibited in a cannabis consumption lounge. 19 5. A supervisor on duty or employee of an age-restricted stand-20 alone bar, tavern or saloon or a stand-alone bar, tavern or saloon 21 shall not allow a person who is under 21 years of age to loiter in an 22 age-restricted stand-alone bar, tavern or saloon or an area of a stand-23 alone bar, tavern or saloon where smoking is allowed pursuant to 24 this section. A person who violates the provisions of this subsection 25 is guilty of a misdemeanor. 26 [5.] 6. If a supervisor on duty or employee of an age-restricted 27 stand-alone bar, tavern or saloon or a stand-alone bar, tavern or 28 saloon violates the provisions of subsection [4,] 5, the age-restricted 29 stand-alone bar, tavern or saloon or stand-alone bar, tavern or saloon 30 is liable for a civil penalty of: 31 (a) For the first offense, $1,000. 32 (b) For a second or subsequent offense, $2,000. 33 [6.] 7. In any prosecution or other proceeding for a violation of 34 the provisions of subsection [4 or] 5 [,] or 6, it is no excuse for a 35 supervisor, employee, age-restricted bar, tavern or saloon, or stand-36 alone bar, tavern or saloon alleged to have committed the violation 37 to plead that a supervisor or employee believed that the person who 38 was permitted to loiter was 21 years of age or older. 39 [7.] 8. In areas or establishments where smoking is not 40 prohibited by this section, nothing in state law shall be construed to 41 prohibit the owners of said establishments from voluntarily creating 42 nonsmoking sections or designating the entire establishment as 43 smoke free. 44 – 50 – - *AB76* [8.] 9. Nothing in state law shall be construed to restrict local 1 control or otherwise prohibit a county, city or town from adopting 2 and enforcing local smoking control measures that meet or exceed 3 the minimum applicable standards set forth in this section. 4 [9.] 10. “No Smoking” signs or the international “No 5 Smoking” symbol shall be clearly and conspicuously posted in 6 every public place and place of employment where smoking is 7 prohibited by this section. Each public place and place of 8 employment where smoking is prohibited shall post, at every 9 entrance, a conspicuous sign clearly stating that smoking is 10 prohibited. All ashtrays and other smoking paraphernalia shall be 11 removed from any area where smoking is prohibited. 12 [10.] 11. Health authorities, police officers of cities or towns, 13 sheriffs and their deputies shall, within their respective jurisdictions, 14 enforce the provisions of this section and shall issue citations for 15 violations of this section pursuant to NRS 202.2492 and 202.24925. 16 [11.] 12. No person or employer shall retaliate against an 17 employee, applicant or customer for exercising any rights afforded 18 by, or attempts to prosecute a violation of, this section. 19 [12.] 13. For the purposes of this section, the following terms 20 have the following definitions: 21 (a) “Age-restricted stand-alone bar, tavern or saloon” means an 22 establishment: 23 (1) Devoted primarily to the sale of alcoholic beverages to be 24 consumed on the premises; 25 (2) In which food service or sales may or may not be 26 incidental food service or sales, in the discretion of the operator of 27 the establishment; 28 (3) In which patrons under 21 years of age are prohibited at 29 all times from entering the premises; and 30 (4) That must be located within: 31 (I) A physically independent building that does not share 32 a common entryway or indoor area with a restaurant, public place or 33 any other indoor workplace where smoking is prohibited by this 34 section; or 35 (II) A completely enclosed area of a larger structure, 36 which may include, without limitation, a strip mall or an airport, 37 provided that indoor windows must remain closed at all times and 38 doors must remain closed when not actively in use. 39 (b) “Cannabis” has the meaning ascribed to it in 40 NRS 678A.085. 41 (c) “Cannabis consumption lounge” has the meaning ascribed 42 to it in NRS 678A.087. 43 (d) “Casino” means an entity that contains a building or large 44 room devoted to gambling games or wagering on a variety of 45 – 51 – - *AB76* events. A casino must possess a nonrestricted gaming license as 1 described in NRS 463.0177 and typically uses the word ‘casino’ as 2 part of its proper name. 3 [(c)] (e) “Child care facility” has the meaning ascribed to it in 4 NRS 441A.030. 5 [(d)] (f) “Completely enclosed area” means an area that is 6 enclosed on all sides by any combination of solid walls, windows or 7 doors that extend from the floor to the ceiling. 8 [(e)] (g) “Government building” means any building or office 9 space owned or occupied by: 10 (1) Any component of the Nevada System of Higher 11 Education and used for any purpose related to the System; 12 (2) The State of Nevada and used for any public purpose; or 13 (3) Any county, city, school district or other political 14 subdivision of the State and used for any public purpose. 15 [(f)] (h) “Health authority” has the meaning ascribed to it in 16 NRS 202.2485. 17 [(g)] (i) “Incidental food service or sales” means the service of 18 prepackaged food items including, but not limited to, peanuts, 19 popcorn, chips, pretzels or any other incidental food items that are 20 exempt from food licensing requirements pursuant to subsection 2 21 of NRS 446.870. 22 [(h)] (j) “Place of employment” means any enclosed area under 23 the control of a public or private employer which employees 24 frequent during the course of employment including, but not limited 25 to, work areas, restrooms, hallways, employee lounges, cafeterias, 26 conference and meeting rooms, lobbies and reception areas. 27 [(i)] (k) “Public places” means any enclosed areas to which the 28 public is invited or in which the public is permitted. 29 [(j)] (l) “Restaurant” means a business which gives or offers for 30 sale food, with or without alcoholic beverages, to the public, guests 31 or employees, as well as kitchens and catering facilities in which 32 food is prepared on the premises for serving elsewhere. 33 [(k)] (m) “Retail tobacco store” means a retail store utilized 34 primarily for the sale of tobacco products and accessories and in 35 which the sale of other products is merely incidental. 36 [(l)] (n) “School building” means all buildings on the grounds 37 of any public school described in NRS 388.020 and any private 38 school as defined in NRS 394.103. 39 [(m)] (o) “School property” means the grounds of any public 40 school described in NRS 388.020 and any private school as defined 41 in NRS 394.103. 42 [(n)] (p) “Smoking” means inhaling, exhaling, burning or 43 carrying any liquid or heated cigar, cigarette or pipe or any other 44 lighted or heated tobacco or plant product intended for inhalation, in 45 – 52 – - *AB76* any manner or in any form. The term includes the use of an 1 electronic smoking device that creates an aerosol or vapor, in any 2 manner or in any form, and the use of any oral smoking device. As 3 used in this paragraph, “electronic smoking device”: 4 (1) Means any product containing or delivering nicotine, a 5 product made or derived from tobacco or any other substance 6 intended for human consumption that can be used by a person to 7 simulate smoking in the delivery of nicotine or any other substance 8 through inhalation of vapor or aerosol from the product. 9 (2) Includes any component part of a product described in 10 subparagraph (1), regardless of whether the component part is sold 11 separately. 12 (3) Does not include any product regulated by the United 13 States Food and Drug Administration pursuant to Subchapter V of 14 the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §§ 352 et seq. 15 [(o)] (q) “Stand-alone bar, tavern or saloon” means an 16 establishment: 17 (1) Devoted primarily to the sale of alcoholic beverages to be 18 consumed on the premises; 19 (2) In which food service or sales may or may not be 20 incidental food service or sales, in the discretion of the operator of 21 the establishment; 22 (3) In which smoke from such establishments does not 23 infiltrate into areas where smoking is prohibited under the 24 provisions of this section; and 25 (4) That must be housed in either: 26 (I) A physically independent building that does not share 27 a common entryway or indoor area with a restaurant, public place or 28 any other indoor workplaces where smoking is prohibited by this 29 section; or 30 (II) A completely enclosed area of a larger structure, such 31 as a strip mall or an airport, provided that indoor windows must 32 remain shut at all times and doors must remain closed when not 33 actively in use. 34 [(p)] (r) “Video arcade” has the meaning ascribed to it in 35 paragraph (d) of subsection 3 of NRS 453.3345. 36 [13.] 14. Any statute or regulation inconsistent with this 37 section is null and void. 38 [14.] 15. The provisions of this section are severable. If any 39 provision of this section or the application thereof is declared by a 40 court of competent jurisdiction to be invalid or unconstitutional, 41 such declaration shall not affect the validity of the section as a 42 whole or any provision thereof other than the part declared to be 43 invalid or unconstitutional. 44 – 53 – - *AB76* Sec. 52. NRS 223.250 is hereby amended to read as follows: 1 223.250 1. The Governor or his or her designee may enter 2 into one or more agreements with tribal governments in this State to 3 efficiently coordinate the cross-jurisdictional administration of the 4 laws of this State and the laws of tribal governments relating to the 5 use of cannabis. Such an agreement may include, without limitation, 6 provisions relating to: 7 (a) Criminal and civil law enforcement; 8 (b) Regulatory issues relating to the possession, delivery, 9 production, processing or use of cannabis or cannabis products; 10 (c) Medical and pharmaceutical research involving cannabis; 11 (d) The administration of laws relating to taxation; 12 (e) Any immunity, preemption or conflict of law relating to the 13 possession, delivery, production, processing, transportation or use of 14 cannabis or cannabis products; and 15 (f) The resolution of any disputes between a tribal government 16 and this State, which may include, without limitation, the use of 17 mediation or other nonjudicial processes. 18 2. An agreement entered into pursuant to this section must: 19 (a) Provide for the preservation of public health and safety; 20 (b) Ensure the security of cannabis establishments and the 21 corresponding facilities on tribal land; and 22 (c) Establish provisions regulating business involving cannabis 23 which passes between tribal land and non-tribal land in this State. 24 3. Any information received pursuant to the terms of an 25 agreement entered into pursuant to this section by a governmental 26 entity from a tribal government or a facility engaged in cannabis 27 activities operating on tribal land which relates to cannabis or a 28 cannabis product that is not sold or transferred to a cannabis 29 establishment is not a public record within the meaning of NRS 30 239.010 and is confidential. 31 4. As used in this section: 32 (a) “Cannabis” has the meaning ascribed to it in NRS 678A.085. 33 (b) “Cannabis establishment” has the meaning ascribed to it in 34 NRS 678A.095. 35 (c) “Cannabis products” has the meaning ascribed to it in 36 NRS 678A.120. 37 (d) “Governmental entity” has the meaning ascribed to it in 38 NRS 239.005. 39 (e) “Tribal government” means a federally recognized American 40 Indian tribe pursuant to 25 C.F.R. §§ 83.1 to [83.13,] 83.12, 41 inclusive. 42 Sec. 53. NRS 239.010 is hereby amended to read as follows: 43 239.010 1. Except as otherwise provided in this section and 44 NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.0397, 41.071, 49.095, 45 – 54 – - *AB76* 49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 1 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 2 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 3 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 4 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 5 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 6 119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.640, 7 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 8 127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 9 130.712, 136.050, 159.044, 159A.044, 164.041, 172.075, 172.245, 10 176.01334, 176.01385, 176.015, 176.0625, 176.09129, 176.156, 11 176A.630, 178.39801, 178.4715, 178.5691, 178.5717, 179.495, 12 179A.070, 179A.165, 179D.160, 180.600, 200.3771, 200.3772, 13 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 14 209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 15 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 16 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 218G.615, 17 223.250, 224.240, 226.462, 226.796, 228.270, 228.450, 228.495, 18 228.570, 231.069, 231.1285, 231.1473, 232.1369, 233.190, 237.300, 19 239.0105, 239.0113, 239.014, 239B.026, 239B.030, 239B.040, 20 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 21 239C.420, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 22 244.335, 247.540, 247.545, 247.550, 247.560, 250.087, 250.130, 23 250.140, 250.145, 250.150, 268.095, 268.0978, 268.490, 268.910, 24 269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 25 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 284.4086, 26 286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 289.830, 27 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 28 293.906, 293.908, 293.909, 293.910, 293B.135, 293D.510, 331.110, 29 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 30 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 31 353A.049, 353A.085, 353A.100, 353C.240, 353D.250, 360.240, 32 360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 33 366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 34 379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 35 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 36 388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 37 391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 38 392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 39 394.1698, 394.447, 394.460, 394.465, 396.1415, 396.1425, 396.143, 40 396.159, 396.3295, 396.405, 396.525, 396.535, 396.9685, 41 398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 42 414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 43 425.400, 427A.1236, 427A.872, 427A.940, 432.028, 432.205, 44 432B.175, 432B.280, 432B.290, 432B.4018, 432B.407, 432B.430, 45 – 55 – - *AB76* 432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 1 439.4941, 439.4988, 439.5282, 439.840, 439.914, 439A.116, 2 439A.124, 439B.420, 439B.754, 439B.760, 439B.845, 440.170, 3 441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 4 442.774, 445A.665, 445B.570, 445B.7773, 449.209, 449.245, 5 449.4315, 449A.112, 450.140, 450B.188, 450B.805, 453.164, 6 453.720, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 7 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 8 463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 9 481.091, 481.093, 482.170, 482.368, 482.5536, 483.340, 483.363, 10 483.575, 483.659, 483.800, 484A.469, 484B.830, 484B.833, 11 484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 12 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 13 598A.420, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 14 604D.500, 604D.600, 612.265, 616B.012, 616B.015, 616B.315, 15 616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 16 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 17 628B.760, 629.043, 629.047, 629.069, 630.133, 630.2671, 18 630.2672, 630.2673, 630.2687, 630.30665, 630.336, 630A.327, 19 630A.555, 631.332, 631.368, 632.121, 632.125, 632.3415, 20 632.3423, 632.405, 633.283, 633.301, 633.427, 633.4715, 633.4716, 21 633.4717, 633.524, 634.055, 634.1303, 634.214, 634A.169, 22 634A.185, 634B.730, 635.111, 635.158, 636.262, 636.342, 637.085, 23 637.145, 637B.192, 637B.288, 638.087, 638.089, 639.183, 24 639.2485, 639.570, 640.075, 640.152, 640A.185, 640A.220, 25 640B.405, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 26 640C.760, 640D.135, 640D.190, 640E.225, 640E.340, 641.090, 27 641.221, 641.2215, 641A.191, 641A.217, 641A.262, 641B.170, 28 641B.281, 641B.282, 641C.455, 641C.760, 641D.260, 641D.320, 29 642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 30 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 31 645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 32 648.033, 648.197, 649.065, 649.067, 652.126, 652.228, 653.900, 33 654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 34 669.285, 669A.310, 670B.680, 671.365, 671.415, 673.450, 673.480, 35 675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 36 678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 37 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 38 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 39 687A.060, 687A.115, 687B.404, 687C.010, 688C.230, 688C.480, 40 688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 41 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 42 696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 43 711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 44 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and 45 – 56 – - *AB76* unless otherwise declared by law to be confidential, all public books 1 and public records of a governmental entity must be open at all 2 times during office hours to inspection by any person, and may be 3 fully copied or an abstract or memorandum may be prepared from 4 those public books and public records. Any such copies, abstracts or 5 memoranda may be used to supply the general public with copies, 6 abstracts or memoranda of the records or may be used in any other 7 way to the advantage of the governmental entity or of the general 8 public. This section does not supersede or in any manner affect the 9 federal laws governing copyrights or enlarge, diminish or affect in 10 any other manner the rights of a person in any written book or 11 record which is copyrighted pursuant to federal law. 12 2. A governmental entity may not reject a book or record 13 which is copyrighted solely because it is copyrighted. 14 3. A governmental entity that has legal custody or control of a 15 public book or record shall not deny a request made pursuant to 16 subsection 1 to inspect or copy or receive a copy of a public book or 17 record on the basis that the requested public book or record contains 18 information that is confidential if the governmental entity can 19 redact, delete, conceal or separate, including, without limitation, 20 electronically, the confidential information from the information 21 included in the public book or record that is not otherwise 22 confidential. 23 4. If requested, a governmental entity shall provide a copy of a 24 public record in an electronic format by means of an electronic 25 medium. Nothing in this subsection requires a governmental entity 26 to provide a copy of a public record in an electronic format or by 27 means of an electronic medium if: 28 (a) The public record: 29 (1) Was not created or prepared in an electronic format; and 30 (2) Is not available in an electronic format; or 31 (b) Providing the public record in an electronic format or by 32 means of an electronic medium would: 33 (1) Give access to proprietary software; or 34 (2) Require the production of information that is confidential 35 and that cannot be redacted, deleted, concealed or separated from 36 information that is not otherwise confidential. 37 5. An officer, employee or agent of a governmental entity who 38 has legal custody or control of a public record: 39 (a) Shall not refuse to provide a copy of that public record in the 40 medium that is requested because the officer, employee or agent has 41 already prepared or would prefer to provide the copy in a different 42 medium. 43 (b) Except as otherwise provided in NRS 239.030, shall, upon 44 request, prepare the copy of the public record and shall not require 45 – 57 – - *AB76* the person who has requested the copy to prepare the copy himself 1 or herself. 2 Sec. 54. NRS 239.0115 is hereby amended to read as follows: 3 239.0115 1. Except as otherwise provided in this subsection 4 and subsection 3, notwithstanding any provision of law that has 5 declared a public book or record, or a part thereof, to be 6 confidential, if a public book or record has been in the legal custody 7 or control of one or more governmental entities for at least 30 years, 8 a person may apply to the district court of the county in which the 9 governmental entity that currently has legal custody or control of the 10 public book or record is located for an order directing that 11 governmental entity to allow the person to inspect or copy the public 12 book or record, or a part thereof. If the public book or record 13 pertains to a natural person, a person may not apply for an order 14 pursuant to this subsection until the public book or record has been 15 in the legal custody or control of one or more governmental entities 16 for at least 30 years or until the death of the person to whom the 17 public book or record pertains, whichever is later. 18 2. There is a rebuttable presumption that a person who applies 19 for an order as described in subsection 1 is entitled to inspect or 20 copy the public book or record, or a part thereof, that the person 21 seeks to inspect or copy. 22 3. The provisions of subsection 1 do not apply to any book or 23 record: 24 (a) Declared confidential pursuant to NRS 463.120 [.] or 25 678A.470. 26 (b) Containing personal information pertaining to a victim of 27 crime that has been declared by law to be confidential. 28 Sec. 55. The amendatory provisions of sections 5, 6 and 13 to 29 23, inclusive, of this act apply to any judicial or administrative 30 proceedings commenced on or after the effective date of this act. 31 Sec. 56. NRS 678C.060, 678C.100, 678D.040 and 678D.410 32 are hereby repealed. 33 Sec. 57. This act becomes effective upon passage and 34 approval. 35 TEXT OF REPEALED SECTIONS 678C.060 “Inventory control system” defined. “Inventory control system” means a process, device or other contrivance that may be used to monitor the chain of custody of cannabis from the point of cultivation to the end consumer. – 58 – - *AB76* 678C.100 “Usable cannabis” defined. 1. “Usable cannabis” means: (a) The dried leaves and flowers of a plant of the genus Cannabis, and any mixture or preparation thereof, that are appropriate for the medical use of cannabis or the adult use of cannabis; and (b) The seeds of a plant of the genus Cannabis. 2. The term does not include the stalks and roots of the plant. 678D.040 “Usable cannabis” defined. “Usable cannabis” has the meaning ascribed to it in NRS 678C.100. 678D.410 License required for transportation of cannabis for adult use and adult-use cannabis products; exceptions. An adult-use cannabis establishment shall not transport cannabis or adult-use edible cannabis products or adult-use cannabis-infused products to an adult-use cannabis retail store unless the adult-use cannabis establishment: 1. Holds a license for an adult-use cannabis distributor; 2. Holds a medical cannabis establishment license and is only transporting cannabis or medical edible cannabis products or medical cannabis-infused products for the medical use of cannabis; 3. Is an adult-use cannabis independent testing laboratory transporting samples for testing; or 4. Is a dual licensee and is only transporting cannabis or medical edible cannabis products or medical cannabis-infused products for the medical use of cannabis to a medical cannabis dispensary or a dual licensee. H