REQUIRES TWO-THIRDS MAJORITY VOTE (§ 6) S.B. 435 - *SB435* SENATE BILL NO. 435–SENATORS CANNIZZARO; SCHEIBLE AND STONE MARCH 24, 2025 ____________ JOINT SPONSORS: ASSEMBLYMEMBERS YEAGER, JAUREGUI AND HARDY ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions relating to nicotine products. (BDR 32-989) FISCAL NOTE: Effect on Local Government: Increases or Newly Provides for Term of Imprisonment in County or City Jail or Detention Facility. 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 nicotine products; defining certain terms relating to vapor products containing nicotine; requiring a manufacturer of a vapor product that is sold for retail sale in this State or to a consumer in this State to execute and deliver certain information to the Attorney General; requiring the Attorney General to create, maintain and make available a directory of manufacturers of vapor products and all vapor products; prohibiting a manufacturer of a vapor product from offering for sale or selling a vapor product that is not included in the directory; requiring the Attorney General to prepare and submit to the Legislature an annual report regarding the directory; providing for the seizure of certain products containing nicotine under certain circumstances; making it unlawful to sell, give, deliver or furnish a product that contains a nicotine analogue; authorizing the sharing of certain information with federal, state, or local agencies for purposes of enforcement of certain provisions relating to products containing nicotine; providing penalties; and providing other matters properly relating thereto. – 2 – - *SB435* Legislative Counsel’s Digest: Existing law requires the Department of Taxation to regulate and collect a tax 1 on cigarettes and other tobacco products and distinguishes alternative nicotine 2 products and vapor products from other tobacco products for such purposes. 3 (Chapter 370 of NRS) Existing law also requires: (1) manufacturers of tobacco 4 products whose cigarettes are sold in this State to execute and deliver a certification 5 to the Attorney General; and (2) the Department to create and maintain a directory 6 of all manufacturers that have executed and delivered such certifications. (NRS 7 370.665, 370.675) 8 Section 6 of this bill similarly requires manufacturers of vapor products to 9 execute and deliver a certification to the Attorney General. Section 7 of this bill 10 requires such a manufacturer to notify the Attorney General not later than 30 days 11 after any material change to the certification. Section 8 of this bill requires the 12 Attorney General to create and maintain a directory of all manufacturers of vapor 13 products that have executed and delivered a certification indicating compliance 14 with federal marketing authorization requirements. Section 9 of this bill requires 15 the Attorney General to provide a manufacturer of vapor products notice and an 16 opportunity to cure any deficiency before removing the manufacturer or any vapor 17 products from the directory. Section 10 of this bill prohibits vapor products that are 18 not included in the directory, on or after the date the Attorney General first makes 19 the directory available for public inspection, from being sold in this State or to a 20 consumer in this State. Sections 11 and 12 of this bill require nonresident and 21 foreign manufacturers of vapor products to appoint an agent in this State for service 22 of process and to submit a bond payable to the State, respectively. 23 Section 13 of this bill provides for annual unannounced compliance checks on 24 each retailer, distributor and wholesaler that sells or distributes vapor products in 25 this State. Section 14 of this bill provides civil penalties for selling or offering for 26 sale any vapor product not included in the directory. Section 15 of this bill requires 27 the Attorney General to prepare and submit to the Legislature an annual report 28 regarding the directory and section 16 of this bill requires the Attorney General to 29 adopt regulations to carry out the provisions of sections 2-16 of this bill. 30 Sections 3, 4 and 5 define certain terms for purposes of implementing the 31 provisions of this bill, including “vapor product,” which is defined for such 32 purposes to mean any noncombustible product containing nicotine. 33 Section 17 of this bill authorizes the seizure of any cigarette, product 34 containing, made or derived from tobacco, vapor product, alternative nicotine 35 product or product containing, made or derived from nicotine sold by a person 36 without a license. Section 18 of this bill prohibits a person from selling, giving, 37 delivering or furnishing to a person a nicotine analogue and defines the term 38 “nicotine analogue” for such purposes. Section 19 of this bill authorizes the seizure 39 of such products if sold, distributed or offered for sale to a person under the age of 40 21 years. Section 20 of this bill authorizes the Department of Taxation to share 41 information obtained in investigations with federal, state or local agencies for 42 purposes of enforcement of corresponding laws of other states. Section 21 of this 43 bill exempts certain information provided in a certification executed and delivered 44 pursuant to section 6 from the requirement that public records and public books be 45 open to inspection. 46 – 3 – - *SB435* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 370 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 18, inclusive, of this 2 act. 3 Sec. 2. As used in sections 2 to 16, inclusive, of this act, 4 unless the context otherwise requires, the words and terms defined 5 in sections 3, 4 and 5 of this act have the meanings ascribed to 6 them in those sections. 7 Sec. 3. “Directory” means the directory created and 8 maintained pursuant to section 8 of this act. 9 Sec. 4. “Timely filed premarket tobacco product application” 10 means an application filed pursuant to 21 U.S.C. § 387j for a 11 vapor product containing nicotine derived from tobacco marketed 12 in the United States as of August 8, 2016, that was submitted to the 13 United States Food and Drug Administration on or before 14 September 9, 2020, and accepted for filing. 15 Sec. 5. “Vapor product”: 16 1. Means any noncombustible product containing nicotine 17 that employs a heating element, power source, electronic circuit or 18 other electronic, chemical or mechanical means, regardless of the 19 shape or size thereof, that can be used to produce vapor from 20 nicotine or any other substance in a solution or other form, the 21 use or inhalation of which simulates smoking. 22 2. Includes, without limitation: 23 (a) An electronic cigarette, cigar, cigarillo, pipe, hookah or 24 vape pen, or a similar product or device; and 25 (b) The components of such a product or device, whether or 26 not sold separately, including, without limitation, a vapor 27 cartridge or other container of nicotine or any other substance in 28 a solution or other form that is intended to be used with or in an 29 electronic cigarette, cigar, cigarillo, pipe, hookah or vape pen, or a 30 similar product or device, atomizer, cartomizer, digital display, 31 clearomizer, tank system, flavor, programmable software or other 32 similar product or device. As used in this paragraph, “component” 33 means a product intended primarily or exclusively to be used with 34 or in an electronic cigarette, cigar, cigarillo, pipe, hookah or vape 35 pen, or a similar product or device. 36 3. Does not include any product: 37 (a) Regulated by the United States Food and Drug 38 Administration pursuant to subchapter V of the Federal Food, 39 Drug, and Cosmetic Act, 21 U.S.C. §§ 351 et seq. 40 (b) Subject to the excise tax on cannabis or cannabis products 41 pursuant to NRS 372A.200 to 372A.380, inclusive. 42 – 4 – - *SB435* (c) Purchased by a person who holds a current, valid medical 1 cannabis establishment license pursuant to chapter 678B of NRS. 2 Sec. 6. 1. A manufacturer of a vapor product that is sold 3 for retail sale in this State or to a consumer in this State, whether 4 directly or through an importer, wholesaler, distributor, retailer or 5 similar intermediary or intermediaries shall, not later than 6 August 1, 2025, and each year thereafter, execute and deliver to 7 the Attorney General, on a form and in a manner prescribed 8 by the Attorney General, a certification under penalty of perjury 9 that the manufacturer is compliant with the provisions of sections 10 2 to 16, inclusive, of this act and that for each vapor product sold 11 for retail sale in this State or to a consumer in this State, the 12 manufacturer: 13 (a) Received a marketing granted order for the vapor product 14 from the United States Food and Drug Administration pursuant to 15 21 U.S.C. § 387j; 16 (b) Submitted a timely filed premarket tobacco product 17 application for the vapor product to the United States Food and 18 Drug Administration pursuant to 21 U.S.C. § 387j and the 19 application either remains under review by the United States Food 20 and Drug Administration or has received a marketing denial order 21 that remains stayed by the United States Food and Drug 22 Administration or a court order, rescinded by the United States 23 Food and Drug Administration or vacated by a court; 24 (c) Is not required to submit an additional marketing granted 25 order or a premarket tobacco product application for the vapor 26 product because the vapor product merely reflects a change to the 27 name, brand style or packaging of a vapor product that is 28 described under paragraph (a) or (b); or 29 (d) Can demonstrate that the United States Food and Drug 30 Administration has issued a rule, guidance or other formal 31 statement that temporarily exempts the vapor product from any 32 requirement for a premarket tobacco product application. 33 2. The certification executed and delivered pursuant to 34 subsection 1 must: 35 (a) Separately list each brand name, product name, category 36 (e.g., disposable vapor product, power unit, device, e-liquid 37 cartridge, e-liquid pod, etc.) and flavor for each vapor product that 38 is sold in this State. 39 (b) Be accompanied by: 40 (1) A copy of: 41 (I) The marketing granted order issued by the United 42 States Food and Drug Administration pursuant to 21 U.S.C. 43 § 387j; 44 – 5 – - *SB435* (II) The acceptance letter issued by the United States 1 Food and Drug Administration pursuant to 21 U.S.C. § 387j for a 2 timely filed premarket tobacco product application; 3 (III) A document issued by United States Food and 4 Drug Administration or by a court confirming that the premarket 5 tobacco product application has received a marketing denial order 6 that has been and remains stayed by United States Food and Drug 7 Administration or court order, rescinded by United States Food 8 and Drug Administration or vacated by a court; or 9 (IV) A document issued by the United States Food and 10 Drug Administration demonstrating that the vapor product is 11 temporarily exempt from any requirement for a premarket tobacco 12 product application; and 13 (2) A payment of an initial fee of $2,000 for each type of 14 vapor product and a fee of $1,000 each time thereafter that a 15 manufacturer executes and delivers a certification for that vapor 16 product. 17 3. The information submitted by the manufacturer pursuant 18 to subparagraph (1) of paragraph (b) of subsection 2 is 19 confidential and not a public book or record within the meaning 20 of NRS 239.010 and the manufacturer may redact such 21 confidential information. 22 Sec. 7. A manufacturer of a vapor product required to 23 execute and deliver a certification pursuant to section 6 of this act 24 shall notify the Attorney General not later than 30 days after any 25 material change to the certification, including the issuance or 26 denial of a marketing authorization or other order by the United 27 States Food and Drug Administration pursuant to 21 U.S.C. § 28 387j or any other order or action by the United States Food and 29 Drug Administration or any court that affects the ability of the 30 vapor product to be introduced or delivered into interstate 31 commerce for commercial distribution in the United States. 32 Sec. 8. 1. On or before October 1, 2025, the Attorney 33 General shall create, maintain and make publicly available on the 34 Internet website of the Attorney General a directory that lists all 35 manufacturers of vapor products and all vapor products, 36 including brand names, product names, categories (e.g., 37 disposable vapor product, e-liquid, e-liquid cartridge, e-liquid pod, 38 power unit, etc.) and flavors for which certifications have been 39 executed and delivered pursuant to section 6 of this act to the 40 Attorney General. 41 2. The Attorney General shall: 42 (a) Update the directory described in subsection 1 at least 43 monthly to ensure the accuracy of the directory; and 44 – 6 – - *SB435* (b) Establish a process to provide licensed retailers, 1 distributors and other relevant parties notice of the initial 2 publication of the directory and any changes made to the directory 3 in the immediately preceding month. 4 3. The name of a manufacturer or the vapor products of a 5 manufacturer must not be included or retained in the directory if 6 the Attorney General determines that any of the following apply: 7 (a) The manufacturer failed to provide a complete and 8 accurate certification pursuant to section 6 of this act; 9 (b) The manufacturer executed and delivered a certification 10 that does not comply with the requirements of section 6 of this act; 11 (c) The manufacturer failed to include payment of the fee 12 required by section 6 of this act; 13 (d) The manufacturer sold vapor products in this State during 14 a period when either the manufacturer or the vapor product sold 15 was not certified and listed on the directory; or 16 (e) The information provided by the manufacturer pursuant to 17 section 6 of this act is determined by the Attorney General to 18 contain false information, material misrepresentations or 19 omissions. 20 Sec. 9. 1. The Attorney General shall provide a 21 manufacturer of vapor products notice and an opportunity to cure 22 any deficiency before removing the manufacturer or any vapor 23 products from the directory. 24 2. The Attorney General may not remove a manufacturer of 25 vapor products or any vapor products from the directory until at 26 least 30 days after the manufacturer has been given notice of an 27 intended action setting forth the reasons for removal. Notice shall 28 be deemed sufficient and immediately received by a manufacturer 29 if the notice is sent to an electronic mail address or facsimile 30 number provided by the manufacturer in the most recent 31 certification executed and delivered pursuant to section 6 of this 32 act. 33 3. A manufacturer of vapor products shall have 15 days from 34 the date of service of the notice provided pursuant to subsection 2 35 to cure any deficiency or otherwise establish that the 36 manufacturer or vapor products should be included in the 37 directory. 38 4. Any retailer of vapor products must be given 30 days after 39 the removal of a manufacturer of vapor products or any vapor 40 products from the directory to sell such vapor products that were 41 in the inventory of the retailer as of the date of removal. 42 5. Not less than 30 days following removal from the directory, 43 the vapor products of a manufacturer identified in the notice of 44 removal and intended for sale in this State are subject to seizure 45 – 7 – - *SB435* from distributors and retailers, forfeiture from distributors and 1 retailers, destruction or disposal and such products must not be 2 purchased or sold for retail sale in this State or to a consumer in 3 this State. The cost of any seizure, forfeiture, destruction or 4 disposal must be borne by the person from whom the vapor 5 products are confiscated. 6 Sec. 10. 1. Beginning on January 1, 2026, or on the date 7 that the Attorney General first makes the directory available for 8 public inspection on the Internet website of the Attorney General, 9 whichever is later, vapor products that are not included in the 10 directory may not be sold for retail sale in this State or to a 11 consumer in this State, either directly or through an importer, 12 distributor, wholesaler, retailer or similar intermediary or 13 intermediaries. 14 2. Each retailer shall have 60 days after the date that the 15 Attorney General first makes the directory available for inspection 16 on the Internet website of the Attorney General to sell vapor 17 products that were in the inventory of the retailer, and not 18 included in the directory, or to remove such vapor products from 19 the inventory of the retailer. 20 3. Each distributor or wholesaler shall have 60 days from the 21 date that the Attorney General first makes the directory available 22 for inspection on the Internet website of the Attorney General to 23 remove those vapor products intended for sale in this State or to a 24 consumer in this State from the inventory of the retailer. 25 4. Not less than 60 days following publication of the 26 directory, vapor products not listed in the directory and intended 27 for sale in this State or to a consumer in this State are subject to 28 seizure, forfeiture and destruction or disposal. Such vapor 29 products may not be purchased or sold for retail sale in this State 30 or to a consumer in this State except as otherwise provided in this 31 section or section 9 of this act. The cost of any seizure, forfeiture 32 and destruction or disposal must be borne by the person from 33 whom the vapor products are confiscated. 34 Sec. 11. 1. Any nonresident or foreign manufacturer of 35 vapor products that has not registered to do business in this State, 36 as a condition precedent to having its name or its vapor products 37 listed and retained in the directory, shall appoint and continually 38 engage without interruption the services of an agent in this State 39 to act as its agent for the service of process on whom all process, 40 in any action or proceeding against it concerning or arising out of 41 the enforcement of sections 2 to 16, inclusive, of this act, may be 42 served in any manner authorized by law. 43 2. Service upon an agent pursuant to this section constitutes 44 legal and valid service of process on the manufacturer. The 45 – 8 – - *SB435* manufacturer shall provide the name, address, phone number and 1 proof of the appointment and availability of such agent to, and to 2 the satisfaction of, the Attorney General. 3 3. The manufacturer shall provide notice to the Attorney 4 General at least 30 calendar days before the termination of the 5 authority of an agent appointed pursuant to this section and shall 6 provide proof to the satisfaction of the Attorney General of the 7 appointment of a new agent not less than 5 calendar days before 8 the termination of the appointment of an existing agent. If an 9 agent terminates his or her appointment as an agent, the 10 manufacturer shall notify the Attorney General of that 11 termination at least 5 calendar days before the termination and 12 include with that notification proof to the satisfaction of the 13 Attorney General of the appointment of a new agent. 14 4. A manufacturer whose vapor products are sold in this 15 State or to a consumer in this State, without appointing or 16 designating an agent as required by this section, shall be deemed 17 to have appointed the Secretary of State as the agent and the 18 manufacturer may be proceeded against in courts of this State by 19 service of process upon the Secretary of State, except that the 20 appointment of the Secretary of State as the agent does not satisfy 21 the condition precedent to having the vapor products of the 22 manufacturer listed or retained in the directory. 23 Sec. 12. 1. Any nonresident or foreign manufacturer of 24 vapor products that has not registered to do business in this State 25 as a foreign corporation or business entity shall, as a condition 26 precedent to having its name or its vapor products listed and 27 retained in the directory, submit to the Attorney General a surety 28 bond or other cash security payable to the State of Nevada in the 29 amount of $25,000. The bond must be posted by a corporate surety 30 located within the United States. 31 2. The bond must be conditioned on the performance by the 32 manufacturer of all requirements and obligations imposed by 33 sections 2 to 16, inclusive, of this act. A surety on a 34 manufacturer’s bond is liable up to the amount of the bond, and 35 the State may execute on the surety bond, for the payment of fines 36 and penalties imposed on the manufacturer under section 14 of 37 this act and for the costs of seizure and destruction of vapor 38 products sold in violation of sections 2 to 16, inclusive, of this act. 39 If the State executes on the surety bond, it may require the 40 manufacturer to provide an additional bond as a condition 41 precedent for retaining the manufacturer or its vapor products in 42 the directory. 43 3. A surety on a bond furnished by a manufacturer as 44 provided in this section must be released and discharged from 45 – 9 – - *SB435* liability to the State accruing on the bond 60 days after the date on 1 which the surety lodges with the Attorney General a written 2 request to be released and discharged. This provision does not 3 operate to relieve, release or discharge the surety from liability 4 already accrued or which accrues before the expiration of the 60-5 day period. The Attorney General shall, upon receiving any such 6 request, notify the manufacturer who furnished the bond. Unless 7 the manufacturer, on or before the expiration of the 60-day 8 period, files with the Attorney General a new bond, with the surety 9 approved by and acceptable to the Attorney General, the Attorney 10 General shall remove the manufacturer and its vapor products 11 from the directory. 12 Sec. 13. Each retailer, distributor and wholesaler that sells 13 or distributes vapor products in this State is subject to at least two 14 unannounced compliance checks annually for purposes of 15 enforcing the provisions of sections 2 to 16, inclusive, of this act. 16 Unannounced follow-up compliance checks of all noncompliant 17 retailers, distributors and wholesalers must be conducted not later 18 than 30 days after any violation of sections 2 to 16, inclusive, of 19 this act. The Attorney General shall publish the results of all 20 compliance checks at least annually and shall make the results 21 available to the public on request. 22 Sec. 14. 1. In addition to any other penalty authorized by 23 law, the Attorney General may impose the following civil penalty 24 on a retailer, distributor, wholesaler or importer who sells or 25 offers for sale a vapor product for retail sale in this State or to a 26 consumer in this State that is not included in the directory: 27 (a) For a first violation, $500. 28 (b) For a second violation within a 12-month period, at least 29 $750 but not more than $1,000. 30 (c) For a third or subsequent violation within a 12-month 31 period, at least $1,000 but not more than $1,500. 32 2. A manufacturer whose vapor products are not listed in the 33 directory and who causes the products that are not listed to be sold 34 for retail sale in this State, whether directly or through an 35 importer, distributor, wholesaler, retailer or similar intermediary 36 or intermediaries is subject to a civil penalty of $10,000 for each 37 individual vapor product offered for sale in violation of this 38 section. In addition, any manufacturer that falsely represents any 39 information required by a certification pursuant to section 6 of 40 this act is guilty of a misdemeanor for each false representation. 41 3. In an action to enforce the provisions of sections 2 to 16, 42 inclusive, of this act, the State is entitled to recover costs, 43 including the costs of investigation, expert witness fees and 44 reasonable attorney’s fees. 45 – 10 – - *SB435* 4. A second or subsequent violation of this section constitutes 1 a deceptive trade practice for the purposes of NRS 598.0903 to 2 598.0999, inclusive. 3 5. All fees and penalties collected by the Attorney General 4 pursuant to this section and sections 2 to 16, inclusive, of this act, 5 must be used for the administration and enforcement of sections 2 6 to 16, inclusive, of this act, including, without limitation, 7 contracting with a facility that has been issued a permit to treat, 8 store or dispose of hazardous waste. 9 Sec. 15. 1. On or before January 31 of each year, the 10 Attorney General shall prepare and submit a report to the Director 11 of the Legislative Counsel Bureau for transmittal to the 12 Legislature. 13 2. The report required pursuant to subsection 1 must include, 14 without limitation: 15 (a) An update on the status of the directory, including, without 16 limitation, a discussion of the date of initial publication, dates of 17 updated versions and issues the Attorney General has encountered 18 relating to making updates to the directory; 19 (b) Any revenue and expenditures related to the administration 20 of sections 2 to 16, inclusive, of this act; 21 (c) Any enforcement activities undertaken pursuant to sections 22 2 to 16, inclusive, of this act; and 23 (d) A copy of the most recent version of the directory. 24 Sec. 16. The Attorney General shall adopt regulations to 25 carry out the provisions of sections 2 to 16, inclusive, of this act. 26 Sec. 17. Any cigarette, product containing, made or derived 27 from tobacco, vapor product, alternative nicotine product or 28 product containing, made or derived from nicotine sold by a 29 person without a license required by this chapter is subject to 30 seizure. A sheriff or other peace officer shall provide written 31 notification of any such seizure to the Department not later than 5 32 working days after the seizure. The notification must include the 33 reason for the seizure. 34 Sec. 18. 1. It is unlawful for any person to sell, give, deliver 35 or furnish to a person in this State a product that contains a 36 nicotine analogue. 37 2. A person who violates the provisions of this section is 38 guilty of a misdemeanor. 39 3. In addition to any criminal penalty imposed pursuant to 40 subsection 2, a person who violates the provisions of this section is 41 subject to: 42 (a) A civil penalty in an amount not to exceed $1,000 for each 43 violation; and 44 – 11 – - *SB435* (b) For a second or subsequent violation, the suspension or 1 revocation of the license of the person by the Department of 2 Taxation, if the person is licensed pursuant to this chapter. 3 4. As used in this section, “nicotine analogue” means a 4 substance, the chemical structure of which is substantially similar 5 to the chemical structure of nicotine or which has, purports to 6 have or is represented to have an effect on the central nervous 7 system that is similar to or greater than the effect on the central 8 nervous system of nicotine. Factors relevant to determining 9 whether a substance is a nicotine analogue include, without 10 limitation, the marketing, advertising and labeling of the 11 substance, and whether the substance has been manufactured, 12 formulated, sold, distributed or marketed with the intent to avoid 13 the provisions of this chapter or other any applicable provision of 14 law. 15 Sec. 19. NRS 370.521 is hereby amended to read as follows: 16 370.521 1. Except as otherwise provided in subsections 2, 4 17 and 5, a person shall not sell, distribute or offer to sell cigarettes, 18 cigarette paper, any product containing, made or derived from 19 tobacco, any vapor product, any alternative nicotine product or any 20 product containing, made or derived from nicotine to any person 21 under the age of 21 years. 22 2. A person shall be deemed to be in compliance with the 23 provisions of subsection 1 if, before the person sells, distributes or 24 offers to sell to another any item described in subsection 1, the 25 person: 26 (a) Demands that the other person present a valid driver’s 27 license, permanent resident card, tribal identification card or other 28 written or documentary evidence which shows that the other person 29 is 21 years of age or older; 30 (b) Is presented a valid driver’s license, permanent resident card, 31 tribal identification card or other written or documentary evidence 32 which shows that the other person is 21 years of age or older; and 33 (c) Reasonably relies upon the driver’s license, permanent 34 resident card, tribal identification card or other written or 35 documentary evidence presented by the other person. 36 3. Except as otherwise provided in this subsection, a person 37 shall not sell, distribute or offer to sell cigarettes, cigarette paper or 38 other tobacco products to any person under 40 years of age without 39 first performing age verification through enhanced controls that 40 utilize a scanning technology or other automated, software-based 41 system to verify that the person is 21 years of age or older. A person 42 who violates this subsection is liable for a civil penalty of $100 for 43 each offense. The provisions of this subsection do not apply to a 44 person selling, distributing or offering to sell cigarettes, cigarette 45 – 12 – - *SB435* paper or other tobacco products in a face-to-face transaction that 1 occurs in an area within a casino where loitering by persons who are 2 under 21 years of age is already prohibited pursuant to NRS 3 463.350. As used in this subsection, “casino” means an 4 establishment which holds a nonrestricted license as defined in NRS 5 463.0177 and which is operating 16 or more slot machines together 6 with any other game, race book or sports pool. 7 4. The employer of a person who is under 21 years of age may, 8 for the purpose of allowing the person to handle or transport any 9 item described in subsection 1 in the course of the person’s lawful 10 employment, provide an item described in subsection 1 to the person 11 under 21 years of age. 12 5. The provisions of this section do not apply to any product 13 regulated by the United States Food and Drug Administration under 14 Subchapter V of the Federal Food, Drug, and Cosmetic Act, 21 15 U.S.C. §§ 351 et seq. 16 6. A person who violates subsection 1 is liable for a civil 17 penalty of: 18 (a) For the first violation within a 24-month period, $100. 19 (b) For the second violation within a 24-month period, $250. 20 (c) For the third and any subsequent violation within a 24-month 21 period, $500 [.] , and any cigarette, cigarette paper, product 22 containing, made or derived from tobacco, vapor product, 23 alternative nicotine product or product containing, made or 24 derived from nicotine offered for sale in violation of subsection 1 25 may be seized. A sheriff or other peace officer shall provide 26 written notification of any such seizure to the Department not later 27 than 5 working days after the seizure. The notification must 28 include the reason for the seizure. 29 7. If an employee or agent of a licensee has violated 30 subsection 1: 31 (a) For the first violation within a 24-month period at the same 32 premises, the licensee is liable for a civil penalty of $2,500. 33 (b) For the second violation within a 24-month period at the 34 same premises, the licensee is liable for a civil penalty of $5,000. 35 (c) For the third violation within a 24-month period at the same 36 premises, the licensee is liable for a civil penalty of $7,500. 37 (d) For the fourth and any subsequent violation within a 24-38 month period at the same premises, the licensee is liable for a civil 39 penalty of $10,000 [.] , and any cigarette, cigarette paper, product 40 containing, made or derived from tobacco, vapor product, 41 alternative nicotine product or product containing, made or 42 derived from nicotine offered for sale in violation of subsection 1 43 may be seized. A sheriff or other peace officer shall provide 44 written notification of any such seizure to the Department not later 45 – 13 – - *SB435* than 5 working days after the seizure. The notification must 1 include the reason for the seizure. 2 8. A peace officer or any person performing an inspection 3 pursuant to NRS 202.2496 may issue a notice of infraction for a 4 violation of this section. A notice of infraction must be issued on a 5 form prescribed by the Department and must contain: 6 (a) The location at which the violation occurred; 7 (b) The date and time of the violation; 8 (c) The name of the establishment at which the violation 9 occurred; 10 (d) The signature of the person who issued the notice of 11 infraction; 12 (e) A copy of the section which allegedly is being violated; 13 (f) Information advising the person to whom the notice of 14 infraction is issued of the manner in which, and the time within 15 which, the person must submit an answer to the notice of infraction; 16 and 17 (g) Such other pertinent information as the peace officer or 18 person performing the inspection pursuant to NRS 202.2496 19 determines is necessary. 20 9. A notice of infraction issued pursuant to subsection 8 or a 21 facsimile thereof must be filed with the Department and retained by 22 the Department and is deemed to be a public record of matters 23 which are observed pursuant to a duty imposed by law and is prima 24 facie evidence of the facts alleged in the notice. 25 10. A person to whom a notice of infraction is issued pursuant 26 to subsection 8 shall respond to the notice by: 27 (a) Admitting the violation stated in the notice and paying to the 28 State of Nevada the applicable civil penalty set forth in subsection 3, 29 6 or 7. 30 (b) Denying liability for the infraction by notifying the 31 Department and requesting a hearing in the manner indicated on the 32 notice of infraction. Upon receipt of a request for a hearing pursuant 33 to this paragraph, the Department shall provide the person 34 submitting the request an opportunity for a hearing pursuant to 35 chapter 233B of NRS. 36 11. Any money collected by the State of Nevada from a civil 37 penalty pursuant to this section must be deposited in a separate 38 account in the State General Fund to be used for the enforcement of 39 this section and NRS 202.2493 and 202.2494. 40 12. As used in this section, “licensee” means a person who 41 holds a license issued by the Department pursuant to this chapter. 42 Sec. 20. NRS 370.593 is hereby amended to read as follows: 43 370.593 1. Except as otherwise provided in subsection 2, a 44 licensee shall retain for not less than 5 years all receipts, invoices, 45 – 14 – - *SB435* records, inventory records and financial statements necessary to 1 substantiate information submitted by the licensee to the 2 Department in any report or return required pursuant to this chapter. 3 2. If a licensee fails to submit a return or report which is 4 required by this chapter, the licensee shall retain for not less than 8 5 years all receipts, invoices, records, inventory records and financial 6 statements necessary to substantiate any information which the 7 licensee was required to include in the report or return which the 8 licensee failed to submit. 9 3. Upon request, a licensee shall provide access to and permit 10 the Department to inspect, examine, photocopy and audit all 11 receipts, invoices, records, inventory records and financial 12 statements retained by the licensee pursuant to subsections 1 and 2 13 and all records and financial statements relating to the gross income 14 of the licensee. 15 4. Upon request, a licensee shall provide verification of his or 16 her gross income and any other matters affecting the enforcement of 17 the provisions of this chapter. 18 5. The Department may demand access to and inspect, 19 examine, photocopy and audit all receipts, invoices, records, 20 inventory records and financial statements of any affiliate of a 21 licensee who the Department knows or reasonably believes is 22 involved in the financing, operation or management of the licensee. 23 The inspection, examination, photocopying or audit may take place 24 on the premises of the affiliate or another location, as practicable. 25 6. The Executive Director or any person authorized in writing 26 by the Executive Director may issue a subpoena to compel the 27 attendance of witnesses at a hearing held by the Department or to 28 compel the production of records. 29 7. The Department may share information obtained pursuant 30 to this section with other federal, state or local agencies only for 31 purposes of enforcement of the corresponding laws of other states. 32 Sec. 21. NRS 239.010 is hereby amended to read as follows: 33 239.010 1. Except as otherwise provided in this section and 34 NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.0397, 41.071, 49.095, 35 49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 36 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 37 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 38 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 39 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 40 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 41 119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.640, 42 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 43 127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 44 130.712, 136.050, 159.044, 159A.044, 164.041, 172.075, 172.245, 45 – 15 – - *SB435* 176.01334, 176.01385, 176.015, 176.0625, 176.09129, 176.156, 1 176A.630, 178.39801, 178.4715, 178.5691, 178.5717, 179.495, 2 179A.070, 179A.165, 179D.160, 180.600, 200.3771, 200.3772, 3 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 4 209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 5 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 6 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 218G.615, 7 224.240, 226.462, 226.796, 228.270, 228.450, 228.495, 228.570, 8 231.069, 231.1285, 231.1473, 232.1369, 233.190, 237.300, 9 239.0105, 239.0113, 239.014, 239B.026, 239B.030, 239B.040, 10 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 11 239C.420, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 12 244.335, 247.540, 247.545, 247.550, 247.560, 250.087, 250.130, 13 250.140, 250.145, 250.150, 268.095, 268.0978, 268.490, 268.910, 14 269.174, 271A.105, 281.195, 281.805, 281A.350, 281A.680, 15 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 284.4086, 16 286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 289.830, 17 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 293.870, 18 293.906, 293.908, 293.909, 293.910, 293B.135, 293D.510, 331.110, 19 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.1593, 20 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 21 353A.049, 353A.085, 353A.100, 353C.240, 353D.250, 360.240, 22 360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 23 366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 24 379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 25 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 26 388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 27 391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 28 392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 29 394.1698, 394.447, 394.460, 394.465, 396.1415, 396.1425, 396.143, 30 396.159, 396.3295, 396.405, 396.525, 396.535, 396.9685, 31 398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 32 414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 33 425.400, 427A.1236, 427A.872, 427A.940, 432.028, 432.205, 34 432B.175, 432B.280, 432B.290, 432B.4018, 432B.407, 432B.430, 35 432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 36 439.4941, 439.4988, 439.5282, 439.840, 439.914, 439A.116, 37 439A.124, 439B.420, 439B.754, 439B.760, 439B.845, 440.170, 38 441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 39 442.774, 445A.665, 445B.570, 445B.7773, 449.209, 449.245, 40 449.4315, 449A.112, 450.140, 450B.188, 450B.805, 453.164, 41 453.720, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 42 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 43 463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 44 481.091, 481.093, 482.170, 482.368, 482.5536, 483.340, 483.363, 45 – 16 – - *SB435* 483.575, 483.659, 483.800, 484A.469, 484B.830, 484B.833, 1 484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 2 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 3 598A.420, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 4 604D.500, 604D.600, 612.265, 616B.012, 616B.015, 616B.315, 5 616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 6 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 7 628B.760, 629.043, 629.047, 629.069, 630.133, 630.2671, 8 630.2672, 630.2673, 630.2687, 630.30665, 630.336, 630A.327, 9 630A.555, 631.332, 631.368, 632.121, 632.125, 632.3415, 10 632.3423, 632.405, 633.283, 633.301, 633.427, 633.4715, 633.4716, 11 633.4717, 633.524, 634.055, 634.1303, 634.214, 634A.169, 12 634A.185, 634B.730, 635.111, 635.158, 636.262, 636.342, 637.085, 13 637.145, 637B.192, 637B.288, 638.087, 638.089, 639.183, 14 639.2485, 639.570, 640.075, 640.152, 640A.185, 640A.220, 15 640B.405, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 16 640C.760, 640D.135, 640D.190, 640E.225, 640E.340, 641.090, 17 641.221, 641.2215, 641A.191, 641A.217, 641A.262, 641B.170, 18 641B.281, 641B.282, 641C.455, 641C.760, 641D.260, 641D.320, 19 642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 20 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 21 645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 22 648.033, 648.197, 649.065, 649.067, 652.126, 652.228, 653.900, 23 654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 24 669.285, 669A.310, 670B.680, 671.365, 671.415, 673.450, 673.480, 25 675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 26 678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 27 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 28 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 29 687A.060, 687A.115, 687B.404, 687C.010, 688C.230, 688C.480, 30 688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 31 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 32 696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 33 711.600, and section 6 of this act, sections 35, 38 and 41 of chapter 34 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes 35 of Nevada 2013 and unless otherwise declared by law to be 36 confidential, all public books and public records of a governmental 37 entity must be open at all times during office hours to inspection by 38 any person, and may be fully copied or an abstract or memorandum 39 may be prepared from those public books and public records. Any 40 such copies, abstracts or memoranda may be used to supply the 41 general public with copies, abstracts or memoranda of the records or 42 may be used in any other way to the advantage of the governmental 43 entity or of the general public. This section does not supersede or in 44 any manner affect the federal laws governing copyrights or enlarge, 45 – 17 – - *SB435* diminish or affect in any other manner the rights of a person in any 1 written book or record which is copyrighted pursuant to federal law. 2 2. A governmental entity may not reject a book or record 3 which is copyrighted solely because it is copyrighted. 4 3. A governmental entity that has legal custody or control of a 5 public book or record shall not deny a request made pursuant to 6 subsection 1 to inspect or copy or receive a copy of a public book or 7 record on the basis that the requested public book or record contains 8 information that is confidential if the governmental entity can 9 redact, delete, conceal or separate, including, without limitation, 10 electronically, the confidential information from the information 11 included in the public book or record that is not otherwise 12 confidential. 13 4. If requested, a governmental entity shall provide a copy of a 14 public record in an electronic format by means of an electronic 15 medium. Nothing in this subsection requires a governmental entity 16 to provide a copy of a public record in an electronic format or by 17 means of an electronic medium if: 18 (a) The public record: 19 (1) Was not created or prepared in an electronic format; and 20 (2) Is not available in an electronic format; or 21 (b) Providing the public record in an electronic format or by 22 means of an electronic medium would: 23 (1) Give access to proprietary software; or 24 (2) Require the production of information that is confidential 25 and that cannot be redacted, deleted, concealed or separated from 26 information that is not otherwise confidential. 27 5. An officer, employee or agent of a governmental entity who 28 has legal custody or control of a public record: 29 (a) Shall not refuse to provide a copy of that public record in the 30 medium that is requested because the officer, employee or agent has 31 already prepared or would prefer to provide the copy in a different 32 medium. 33 (b) Except as otherwise provided in NRS 239.030, shall, upon 34 request, prepare the copy of the public record and shall not require 35 the person who has requested the copy to prepare the copy himself 36 or herself. 37 Sec. 22. The provisions of subsection 1 of NRS 218D.380 do 38 not apply to any provision of this act which adds or revises a 39 requirement to submit a report to the Legislature. 40 Sec. 23. This act becomes effective upon passage and 41 approval. 42 H