NRS: CHAPTER 678B - LICENSING AND CONTROL OF CANNABIS

[Rev. 6/29/2024 4:56:27 PM--2023]

CHAPTER 678B - LICENSING AND CONTROL OF CANNABIS

GENERAL PROVISIONS

NRS 678B.010 Legislative findings and declarations.

NRS 678B.020 Definitions.

NRS 678B.030 “Concentrated cannabis” defined.

NRS 678B.040 “Enclosed, locked facility” defined.

NRS 678B.050 “Excluded felony offense” defined.

NRS 678B.060 “Inventory control system” defined.

NRS 678B.065 “Social equity applicant” defined.

NRS 678B.070 “Unreasonably impracticable” defined.

PRODUCTION AND DISTRIBUTION OF CANNABIS

Licensing of Cannabis Establishments and Registration of Cannabis Establishment Agents

NRS 678B.200 General qualifications for licensure or registration; regulations.

NRS 678B.210 Licensing of medical cannabis establishments: Requirements; expiration and renewal.

NRS 678B.215 Licensing of medical cannabis establishments: Prohibition on issuing or renewing licenses on or after January 1, 2024; exception for medical cannabis establishment located in covered jurisdiction; issuance of adult-use cannabis establishment license to holder of medical cannabis establishment license if local governmental jurisdiction ceases to be covered jurisdiction.

NRS 678B.220 Licensing of medical cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction; reallocation of licenses.

NRS 678B.230 Licensing of medical cannabis establishments in larger counties: Limitation on number of medical cannabis dispensaries located in any one governmental jurisdiction within county; limitation on number of licenses issued to any one person.

NRS 678B.240 Licensing of medical cannabis establishments: Considerations in determining whether to issue license.

NRS 678B.250 Licensing of adult-use cannabis establishments: Requirements; expiration and renewal.

NRS 678B.260 Licensing of adult-use cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction.

NRS 678B.270 Licensing of adult-use cannabis establishments in larger counties: Limitation on number of licenses issued to any one person; exception.

NRS 678B.280 Licensing of adult-use cannabis establishments: Considerations in determining whether to issue license for adult-use cannabis establishment other than cannabis consumption lounge.

NRS 678B.290 Cannabis independent testing laboratories.

NRS 678B.300 Licensing of cannabis establishments: Limitation on acceptance of applications.

NRS 678B.310 Issuance of licenses to business entities.

NRS 678B.320 Licensing of cannabis establishments: Licenses deemed conditional pending compliance with local requirements.

NRS 678B.322 Licensing of cannabis consumption lounges: Requirements for retail cannabis consumption lounge.

NRS 678B.323 Licensing of cannabis consumption lounges: Regulations establishing criteria for determination of social equity applicant.

NRS 678B.324 Licensing of cannabis consumption lounges: Regulations establishing criteria of merit and scoring guidelines for evaluating applications.

NRS 678B.325 Licensing of cannabis consumption lounges: Issuance of adult-use cannabis establishment license for retail store and independent cannabis consumption lounge to one person prohibited.

NRS 678B.326 Licensing of cannabis consumption lounges: Limitation on number of licenses for independent cannabis consumption lounges permitted to be issued; exception; minimum number of licenses required to be issued to social equity applicants.

NRS 678B.327 Licensing of cannabis consumption lounges: Issuance of licenses in local governmental jurisdiction that limits number of business licenses issued to cannabis consumption lounges.

NRS 678B.328 Licensing of cannabis consumption lounges: Prohibition on issuance of multiple licenses to one person; transfer of license.

NRS 678B.330 Provision of information regarding inspection or review of cannabis establishment by local government to Board.

NRS 678B.340 Agents required to register with Board; requirements for registration.

NRS 678B.350 Owners with 5 percent or more ownership interest required to register with Board; requirements for registration.

NRS 678B.355 Receiver for cannabis establishment subject to receivership required to register with Board; requirements for registration.

NRS 678B.360 Payment of child support: Statement by applicant for license or registration card; ground for denial of license or registration card; duty of Board. [Effective until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 678B.370 Suspension of license or registration card for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license or registration card. [Effective until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 678B.380 License and registration card nontransferable; Board required to adopt regulations governing transferability of licenses, registration cards and ownership interests; authorized and required content of regulations.

NRS 678B.383 Board required to adopt regulations prescribing procedures and requirements for receiver to take action with respect to cannabis establishment subject to receivership.

NRS 678B.385 Grounds for immediate revocation of registration card.

NRS 678B.390 Fees.

Requirements Concerning Operation of Cannabis Establishments

NRS 678B.500 Location, land use and signage; change of location.

NRS 678B.510 Operating documents; entrances; requirements for cultivation; allowing consumption of cannabis on premises of establishment other than cannabis consumption lounge prohibited; inspection; video monitoring system required; vending machines prohibited.

NRS 678B.520 Requirements concerning cannabis products; exception for ready-to-consume cannabis products; additional duties of cannabis sales facility, cannabis production facility and cannabis consumption lounge; requirements and restrictions concerning advertising by cannabis establishment; local government not prohibited from adopting more restrictive regulations concerning advertising.

NRS 678B.525 Production, distribution, sale or offer for sale of synthetic cannabinoids prohibited.

NRS 678B.530 Advertising sale, selling or appearing to sell cannabis or cannabis products without license prohibited.

NRS 678B.535 Curbside pickup authorized; regulations.

NRS 678B.540 Random laboratory assurance checks.

NRS 678B.545 Requirement to verify age of consumer before sale of cannabis or cannabis product; manner of verification.

NRS 678B.550 Cannabis sales facilities: Limitation on quantity of usable cannabis and concentrated cannabis sold in one transaction.

Miscellaneous Provisions

NRS 678B.600 Employee of State Department of Agriculture exempt from state prosecution for certain acts involving cannabis.

NRS 678B.610 Enforcement of contracts.

NRS 678B.620 Training of cannabis establishment agents by independent contractor; issuance of cannabis establishment agent registration card to independent contractor.

NRS 678B.630 Petition to determine if criminal history will disqualify person from obtaining license or registration card; fee; posting of requirements for license or card and list of disqualifying crimes on Internet; report.

NRS 678B.633 Petition for exemption from prohibition on persons convicted of excluded felony offense being cannabis establishment agent or owner, officer or board member of adult-use cannabis establishment or medical cannabis establishment; grant or denial of exemption; conditions and limitations of exemption; regulations.

NRS 678B.635 Database of information relating to testing conducted on cannabis and cannabis products; maintenance of database by Board; regulations; biennial report of Board.

NRS 678B.640 Regulations of Department of Taxation regarding fair market value at wholesale of cannabis.

NRS 678B.645 Regulations regarding consumption of cannabis or cannabis products in public place; local government not prohibited from adopting more restrictive ordinance or rule governing such consumption.

NRS 678B.647 Regulations regarding charging and collecting of costs incurred in connection with certain investigations; grounds for disciplinary action.

NRS 678B.650 Regulations.

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NOTE: Section 3 of chapter 478, Statutes of Nevada 2021, at p. 2941, has been codified as NRS 679B.175.

GENERAL PROVISIONS

NRS 678B.010 Legislative findings and declarations. The Legislature hereby finds and declares that:

1. The purpose for licensing cannabis establishments and registering cannabis establishment agents is to protect the public health and safety and the general welfare of the people of this State.

2. Any:

(a) Medical cannabis establishment license issued pursuant to NRS 678B.210;

(b) Adult-use cannabis establishment license issued pursuant to NRS 678B.250;

(d) Cannabis establishment agent registration card for a cannabis executive issued pursuant to NRS 678B.350; and

(e) Cannabis establishment agent registration card for a cannabis receiver issued pursuant to NRS 678B.355,

Ê is a revocable privilege and the holder of such a license or card, as applicable, does not acquire thereby any vested right.

(Added to NRS by 2019, 3790; A 2021, 2142)

NRS 678B.020 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678B.030 to 678B.070, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2019, 3790; A 2021, 2360)

NRS 678B.030 “Concentrated cannabis” defined. “Concentrated cannabis” has the meaning ascribed to it in NRS 453.042.

(Added to NRS by 2019, 3790)

NRS 678B.040 “Enclosed, locked facility” defined. “Enclosed, locked facility” means a closet, display case, room, greenhouse or other enclosed area that meets the requirements of NRS 678C.460 and is equipped with locks or other security devices which allow access only by a registrant.

(Added to NRS by 2019, 3790)

NRS 678B.050 “Excluded felony offense” defined.

1. “Excluded felony offense” means a conviction of an offense that would constitute a category A felony if committed in this State or convictions for two or more offenses that would constitute felonies if committed in this State.

2. The term does not include:

(a) A criminal offense for which the sentence, including any term of probation, incarceration or supervised release, was completed more than 10 years ago; or

(b) An offense involving conduct that would be immune from arrest, prosecution, or penalty pursuant to this title, except that the conduct occurred before October 1, 2001, or was prosecuted by an authority other than the State of Nevada.

(Added to NRS by 2019, 3790)

NRS 678B.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.

(Added to NRS by 2019, 3790)

NRS 678B.065 “Social equity applicant” defined. “Social equity applicant” means an applicant for the issuance or renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis, as determined by the Board in accordance with the regulations adopted pursuant to NRS 678B.323. Such adverse effects may include, without limitation, adverse effects on an owner or officer of the applicant.

(Added to NRS by 2021, 2357)

NRS 678B.070 “Unreasonably impracticable” defined. “Unreasonably impracticable” means the measures necessary to comply with the law or regulation require such a high investment of risk, money, time or any other resource or asset that the operation of a cannabis establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

(Added to NRS by 2019, 3790)

PRODUCTION AND DISTRIBUTION OF CANNABIS

Licensing of Cannabis Establishments and Registration of Cannabis Establishment Agents

NRS 678B.200 General qualifications for licensure or registration; regulations.

1. Any person who the Board determines is qualified to receive a license or registration card under the provisions of this chapter, having due consideration for the proper protection of the health, safety, morals, good order and general welfare of the inhabitants of the State of Nevada and the declared policy of this State, may be issued a license or registration card. The burden of proving an applicant’s qualification to receive any license or registration card under this chapter is on the applicant.

2. When determining whether to approve an application to receive a license or registration card, the Board may consider whether the applicant is:

(a) A person of good character, honesty and integrity;

(b) A person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this State or to the effective regulation and control of cannabis, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of cannabis-related activities or in the carrying on of the business and financial arrangements incidental thereto; and

(c) In all other respects qualified to be issued a license or registration card consistently with the declared policy of the State.

3. An application to receive a license or registration card constitutes a request for a determination of the applicant’s general character, integrity and ability to participate or engage in, or be associated with a cannabis establishment. Any written or oral statement made in the course of an official proceeding of the Board by any member thereof or any witness testifying under oath which is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.

4. The Board may, by regulation establish such other qualifications for a license or registration card as it may, in its discretion, deem to be in the public interest and consistent with the declared policy of the State.

5. Any person granted a license or registration card by the Board must continue to meet the applicable standards and qualifications set forth in this section and any other qualifications established by the Board by regulation. The failure to continue to meet such standards and qualifications constitutes grounds for disciplinary action.

6. The Board shall, to the greatest extent practicable, ensure that persons who have been adversely affected by cannabis prohibition have equal opportunity to obtain licenses and registration cards and to participate in the cannabis industry in this State.

(Added to NRS by 2019, 3802)

NRS 678B.210 Licensing of medical cannabis establishments: Requirements; expiration and renewal.

1. A person shall not engage in the business of a medical cannabis establishment unless the person holds a medical cannabis establishment license issued by the Board pursuant to this section.

2. A person who wishes to engage in the business of a medical cannabis establishment must submit to the Board an application on a form prescribed by the Board.

3. Except as otherwise provided in NRS 678B.215 to 678B.240, inclusive, not later than 90 days after receiving an application to engage in the business of a medical cannabis establishment, the Board shall register the medical cannabis establishment and issue a medical cannabis establishment license and a random 20-digit alphanumeric identification number if:

(a) The person who wishes to operate the proposed medical cannabis establishment has submitted to the Board all of the following:

(1) The application fee, as set forth in NRS 678B.390;

(2) An application, which must include:

(I) The legal name of the proposed medical cannabis establishment;

(II) The physical address where the proposed medical cannabis establishment will be located and the physical address of any co-owned additional or otherwise associated medical cannabis establishments, the locations of which may not be on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board or, if the proposed medical cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177 and that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board;

(III) Evidence that the applicant controls not less than $250,000 in liquid assets to cover the initial expenses of opening the proposed medical cannabis establishment and complying with the provisions of this title;

(IV) Evidence that the applicant owns the property on which the proposed medical cannabis establishment will be located or has the written permission of the property owner to operate the proposed medical cannabis establishment on that property;

(V) For the applicant and each person who is proposed to be an owner, officer or board member of the proposed medical cannabis establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(VI) The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the proposed medical cannabis establishment;

(3) Operating procedures consistent with rules of the Board for oversight of the proposed medical cannabis establishment, including, without limitation:

(I) Procedures to ensure the use of adequate security measures; and

(II) The use of an electronic verification system and an inventory control system pursuant to NRS 678C.420 and 678C.430;

(4) If the proposed medical cannabis establishment will sell or deliver medical cannabis products, proposed operating procedures for handling such products which must be preapproved by the Board;

(5) If the city or county in which the proposed medical cannabis establishment will be located has enacted zoning restrictions, proof that the proposed location is in compliance with those restrictions and satisfies all applicable building requirements; and

(6) Such other information as the Board may require by regulation;

(b) Except as otherwise provided in NRS 678B.633, none of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment have been convicted of an excluded felony offense;

(c) None of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment have:

(1) Served as an owner, officer or board member for a cannabis establishment that has had its medical cannabis establishment license or adult-use cannabis establishment license revoked;

(2) Previously had a cannabis establishment agent registration card revoked;

(3) Previously had a cannabis establishment agent registration card for a cannabis executive revoked; or

(4) Previously had a cannabis establishment agent registration card for a cannabis receiver revoked; and

(d) None of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment are under 21 years of age.

4. For each person who submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of a proposed medical cannabis establishment, the Board shall submit the fingerprints of the person to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

5. Except as otherwise provided in subsection 6 and NRS 678B.215, if an application for registration as a medical cannabis establishment satisfies the requirements of this section, is qualified in the determination of the Board pursuant to NRS 678B.200 and the establishment is not disqualified from being registered as a medical cannabis establishment pursuant to this section or other applicable law, the Board shall issue to the establishment a medical cannabis establishment license. A medical cannabis establishment license expires 1 year after the date of issuance and may be renewed upon:

(a) Submission of the information required by the Board by regulation; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

6. In determining whether to issue a medical cannabis establishment license pursuant to this section, the Board shall consider the criteria of merit set forth in NRS 678B.240.

7. For the purposes of sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, the distance must be measured from the front door of the proposed medical cannabis establishment to the closest point of the property line of a school, community facility or gaming establishment.

8. As used in this section, “community facility” means:

(a) A facility that provides day care to children.

(b) A public park.

(d) A public swimming pool.

(e) A center or facility, the primary purpose of which is to provide recreational opportunities or services to children or adolescents.

(f) A church, synagogue or other building, structure or place used for religious worship or other religious purpose.

(Added to NRS by 2019, 3790; A 2021, 2143, 2360; 2023, 2558)

1. Except as otherwise provided in this section, the Board shall not, on or after January 1, 2024, issue any additional medical cannabis establishment licenses or renew a medical cannabis establishment license pursuant to NRS 678B.210.

2. The Board may, on or after January 1, 2024:

(a) Issue a medical cannabis establishment license to an applicant pursuant to NRS 678B.210 if the proposed medical cannabis establishment will be located in a local governmental jurisdiction that is a covered jurisdiction.

(b) Renew the medical cannabis establishment license of a medical cannabis establishment pursuant to NRS 678B.210 so long as the local governmental jurisdiction in which the medical cannabis establishment is located is a covered jurisdiction.

3. If a local governmental jurisdiction that is a covered jurisdiction ceases to be a covered jurisdiction, a person who holds a medical cannabis establishment license for a medical cannabis establishment located in the local governmental jurisdiction may, upon expiration of the license, submit an application to the Board for the issuance of an adult-use cannabis establishment license of the same type.

4. An application submitted pursuant to subsection 3 must:

(a) Contain the same information as required for the renewal of a medical cannabis establishment license pursuant to NRS 678B.210; and

(b) Be accompanied by a fee in an amount that is equal to the fee for the renewal of an adult-use cannabis establishment license of the same type as that of the medical cannabis establishment license which has expired, as set forth in NRS 678B.390.

5. If the Board determines that the applicant would have been eligible to renew the medical cannabis establishment license which has expired, the Board shall issue to the applicant an adult-use cannabis establishment license of the same type.

6. Except as otherwise provided in subsection 7, an adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be an adult-use cannabis establishment license issued by the Board pursuant to NRS 678B.250.

7. An adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be a medical cannabis establishment license of the same type for the purposes of NRS 678B.220, 678B.230, 678B.260 and 678B.270.

8. As used in this section:

(a) “Covered jurisdiction” means a local governmental jurisdiction that has adopted local cannabis control measures which prohibit the operation of adult-use cannabis establishments in the local governmental jurisdiction.

(b) “Local governmental jurisdiction” means a city or unincorporated area within a county.

(Added to NRS by 2023, 2557)

NRS 678B.220 Licensing of medical cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction; reallocation of licenses.

1. Except as otherwise provided in this section, NRS 678B.215 and 678B.230, the Board shall issue medical cannabis establishment licenses for medical cannabis dispensaries in the following quantities for applicants who qualify pursuant to NRS 678B.210:

(a) In a county whose population is 700,000 or more, 40 licenses;

(b) In a county whose population is 100,000 or more but less than 700,000, 10 licenses;

(d) In each other county, one license; and

(e) For each incorporated city in a county whose population is less than 100,000, one license.

2. The Board:

(a) Shall not issue medical cannabis establishment licenses for medical cannabis dispensaries in such a quantity as to cause the existence within the applicable county of more than one medical cannabis dispensary for every 10 pharmacies that have been licensed in the county pursuant to chapter 639 of NRS. The Board may issue medical cannabis establishment licenses for medical cannabis dispensaries in excess of the ratio otherwise allowed pursuant to this paragraph if doing so is necessary to ensure that the Board issues at least one medical cannabis establishment license in each county of this State and, pursuant to paragraph (e) of subsection 1, each incorporated city of this State in which the Board has approved an application for such an establishment to operate.

(b) Shall, for any county for which no applicants qualify pursuant to NRS 678B.210, within 2 months after the end of the period during which the Board accepts applications pursuant to NRS 678B.300, reallocate the licenses provided for that county pursuant to subsection 1 to the other counties specified in subsection 1 in the same proportion as provided in subsection 1.

3. With respect to medical cannabis establishments that are not medical cannabis dispensaries, the Board shall:

(a) Issue a medical cannabis establishment license to at least one medical cannabis cultivation facility and at least one medical cannabis production facility in each county; and

(b) Determine the appropriate number of additional such establishments in each county as are necessary to serve and supply the medical cannabis dispensaries to which the Board has granted medical cannabis establishment licenses and issue such a number of medical cannabis establishment licenses for such establishments in each county.

(Added to NRS by 2019, 3793; A 2023, 2560)

1. Except as otherwise provided in this subsection, in a county whose population is 100,000 or more, the Board shall ensure that not more than 25 percent of the total number of medical cannabis dispensaries that may be licensed in the county, as set forth in NRS 678B.220, are located in any one local governmental jurisdiction within the county. The Board may increase the percentage described in this subsection upon the request of the board of county commissioners of the county. The Board shall adopt regulations setting forth the requirements for granting such a request.

2. To prevent monopolistic practices, the Board shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

(a) One medical cannabis establishment license; or

(b) More than 10 percent of the medical cannabis establishment licenses otherwise allocable in the county.

3. As used in this section, “local governmental jurisdiction” means a city or unincorporated area within a county.

(Added to NRS by 2019, 3793)

NRS 678B.240 Licensing of medical cannabis establishments: Considerations in determining whether to issue license.

1. In determining whether to issue a medical cannabis establishment license pursuant to NRS 678B.210, the Board shall, in addition to the factors set forth in that section, consider criteria of merit established by regulation of the Board. Such criteria must include, without limitation:

(a) Whether the applicant controls liquid assets in an amount determined by the Board to be sufficient to cover the initial expenses of opening the proposed medical cannabis establishment and complying with the provisions of this title;

(b) The previous experience of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment at operating other businesses or nonprofit organizations;

(c) The educational and life experience of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment;

(d) Any demonstrated knowledge or expertise on the part of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment with respect to the compassionate use of cannabis to treat medical conditions;

(e) Whether the proposed location of the proposed medical cannabis establishment would be convenient to serve the needs of persons who are authorized to engage in the medical use of cannabis;

(f) The likely impact of the proposed medical cannabis establishment on the community in which it is proposed to be located;

(g) The adequacy of the size of the proposed medical cannabis establishment to serve the needs of persons who are authorized to engage in the medical use of cannabis;

(h) Whether the applicant has an integrated plan for the care, quality and safekeeping of medical cannabis from seed to sale;

(i) The diversity on the basis of race, ethnicity, gender or veteran status of the applicant or the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment, including, without limitation, the inclusion of persons of backgrounds which are disproportionately underrepresented as owners, officers or board members of medical cannabis establishments; and

(j) Any other criteria of merit that the Board determines to be relevant.

2. The Board shall adopt regulations for determining the relative weight of each criteria of merit established by the Board pursuant to subsection 1.

(Added to NRS by 2019, 3794)

NRS 678B.250 Licensing of adult-use cannabis establishments: Requirements; expiration and renewal.

1. A person shall not engage in the business of an adult-use cannabis establishment unless the person holds an adult-use cannabis establishment license issued pursuant to this section.

2. A person who wishes to engage in the business of an adult-use cannabis establishment must submit to the Board an application on a form prescribed by the Board.

3. Except as otherwise provided in NRS 678B.260, 678B.270, 678B.280, 678B.322 and 678B.324 to 678B.328, inclusive, the Board shall issue an adult-use cannabis establishment license to an applicant if:

(a) The person who wishes to operate the proposed adult-use cannabis establishment has submitted to the Board all of the following:

(1) The application fee, as set forth in NRS 678B.390;

(2) An application, which must include:

(I) The legal name of the proposed adult-use cannabis establishment;

(II) The physical address where the proposed adult-use cannabis establishment will be located and the physical address of any co-owned additional or otherwise associated adult-use cannabis establishments, the locations of which may not be on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board or, if the proposed adult-use cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177 and that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board;

(III) Evidence that the applicant controls liquid assets in an amount determined by the Board to be sufficient to cover the initial expenses of opening the proposed adult-use cannabis establishment and complying with the provisions of this title;

(IV) Evidence that the applicant owns the property on which the proposed adult-use cannabis establishment will be located or has the written permission of the property owner to operate the proposed adult-use cannabis establishment on that property;

(V) For the applicant and each person who is proposed to be an owner, officer or board member of the proposed adult-use cannabis establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(VI) The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the proposed adult-use cannabis establishment;

(3) Operating procedures consistent with rules of the Board for oversight of the proposed adult-use cannabis establishment, including, without limitation:

(I) Procedures to ensure the use of adequate security measures; and

(II) The use of an inventory control system;

(4) If the proposed adult-use cannabis establishment will sell or deliver adult-use cannabis products, proposed operating procedures for handling such products which must be preapproved by the Board; and

(5) Such other information as the Board may require by regulation;

(b) Except as otherwise provided in NRS 678B.633, none of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment have been convicted of an excluded felony offense;

(c) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment have:

(1) Served as an owner, officer or board member for a cannabis establishment that has had its adult-use cannabis establishment license or medical cannabis establishment license revoked;

(2) Previously had a cannabis establishment agent registration card revoked;

(3) Previously had a cannabis establishment agent registration card for a cannabis executive revoked; or

(4) Previously had a cannabis establishment agent registration card for a cannabis receiver revoked; and

(d) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment are under 21 years of age.

4. For each person who submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of a proposed adult-use cannabis establishment, the Board shall submit the fingerprints of the person to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

5. Except as otherwise provided in subsection 6, if an applicant for licensure to operate an adult-use cannabis establishment satisfies the requirements of this section, is qualified in the determination of the Board pursuant to NRS 678B.200 and is not disqualified from being licensed pursuant to this section or other applicable law, the Board shall issue to the applicant an adult-use cannabis establishment license. An adult-use cannabis establishment license expires 1 year after the date of issuance and may be renewed upon:

(a) Submission of the information required by the Board by regulation; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

6. In determining whether to issue an adult-use cannabis license pursuant to this section, the Board shall consider the criteria of merit and scoring guidelines set forth in NRS 678B.280 or 678B.324, as applicable.

7. For the purposes of sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, the distance must be measured from the front door of the proposed adult-use cannabis establishment to the closest point of the property line of a school, community facility or gaming establishment.

8. As used in this section, “community facility” means:

(a) A facility that provides day care to children.

(b) A public park.

(d) A public swimming pool.

(e) A center or facility, the primary purpose of which is to provide recreational opportunities or services to children or adolescents.

(f) A church, synagogue or other building, structure or place used for religious worship or other religious purpose.

(Added to NRS by 2019, 3795; A 2021, 2145, 2362; 2023, 2561)

NRS 678B.260 Licensing of adult-use cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction.

1. Except as otherwise provided in this section and NRS 678B.270, the Board shall issue adult-use cannabis establishment licenses for the operation of adult-use cannabis retail stores in the following quantities for applicants who qualify pursuant to NRS 678B.250:

(a) In a county whose population is 700,000 or more, 80 licenses;

(b) In a county whose population is 100,000 or more but less than 700,000, 20 licenses;

(d) In a county whose population is less than 55,000, two licenses.

2. The Board shall, for any county for which no applicants qualify pursuant to NRS 678B.250, within 2 months after the end of the period during which the Board accepts applications pursuant to NRS 678B.300, reallocate the licenses provided for that county pursuant to subsection 1 to the other counties specified in subsection 1 in the same proportion as provided in subsection 1.

(Added to NRS by 2019, 3797)

NRS 678B.270 Licensing of adult-use cannabis establishments in larger counties: Limitation on number of licenses issued to any one person; exception.

1. Except as otherwise provided in this section, to prevent monopolistic practices, the Board shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

(a) One adult-use cannabis establishment license; or

(b) More than 10 percent of the adult-use cannabis establishment licenses otherwise allocable in the county.

2. The provisions of this section do not apply to an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge.

(Added to NRS by 2019, 3797; A 2021, 2364)

NRS 678B.280 Licensing of adult-use cannabis establishments: Considerations in determining whether to issue license for adult-use cannabis establishment other than cannabis consumption lounge.

1. In determining whether to issue an adult-use cannabis establishment license pursuant to NRS 678B.250, other than an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge, the Board shall, in addition to the factors set forth in that section, consider criteria of merit established by regulation of the Board. Such criteria must include, without limitation:

(a) Whether the applicant controls liquid assets in an amount determined by the Board to be sufficient to cover the initial expenses of opening the proposed adult-use cannabis establishment and complying with the provisions of this title;

(b) Whether the owners, officers or board members of the proposed adult-use cannabis establishment have direct experience with the operation of a cannabis establishment in this State and have demonstrated a record of operating such an establishment in compliance with the laws and regulations of this State for an adequate period of time to demonstrate success;

(c) The educational and life experience of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment;

(d) Whether the applicant has an integrated plan for the care, quality and safekeeping of cannabis from seed to sale;

(e) The experience of key personnel that the applicant intends to employ in operating the type of adult-use cannabis establishment for which the applicant seeks a license;

(f) The diversity on the basis of race, ethnicity or gender of the applicant or the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment, including, without limitation, the inclusion of persons of backgrounds which are disproportionately underrepresented as owners, officers or board members of adult-use cannabis establishments; and

(g) Any other criteria of merit that the Board determines to be relevant.

2. The Board shall adopt regulations for determining the relative weight of each criteria of merit established by the Board pursuant to subsection 1.

(Added to NRS by 2019, 3797; A 2021, 2364)

NRS 678B.290 Cannabis independent testing laboratories.

1. The Board shall establish standards for and certify one or more cannabis independent testing laboratories to:

(a) Test cannabis for adult use and adult-use cannabis products that are to be sold in this State;

(b) Test cannabis for medical use and medical cannabis products that are to be sold in this State; and

(c) In addition to the testing described in paragraph (a) or (b), test commodities or products containing hemp, as defined in NRS 557.160, or cannabidiol which are intended for human or animal consumption and sold by a cannabis establishment or a person described in NRS 446.844.

2. Such a cannabis independent testing laboratory must be able to:

(a) Determine accurately, with respect to cannabis or cannabis products that are sold or will be sold at cannabis sales facilities in this State:

(1) The concentration therein of THC and cannabidiol.

(2) The presence and identification of microbes, molds and fungi.

(3) The composition of the tested material.

(4) The presence of chemicals in the tested material, including, without limitation, pesticides, heavy metals, herbicides or growth regulators.

(b) Demonstrate the validity and accuracy of the methods used by the cannabis independent testing laboratory to test cannabis and cannabis products.

3. To obtain a license to operate a cannabis independent testing laboratory, an applicant must:

(a) Apply successfully as required pursuant to NRS 678B.210 or 678B.250, as applicable.

(b) Pay the fees required pursuant to NRS 678B.390.

(c) Agree to become accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization within 1 year after licensure by an impartial organization that operates in accordance with standard ISO/IEC 17011 of the International Organization for Standardization and is a signatory to the Mutual Recognition Arrangement of the International Laboratory Accreditation Cooperation.

(Added to NRS by 2019, 3809; A 2021, 730, 3604)

NRS 678B.300 Licensing of cannabis establishments: Limitation on acceptance of applications. Except as otherwise provided in this section and subsection 3 of NRS 678B.220, the Board shall not, for more than a total of 10 business days in any 1 calendar year, accept applications to operate a cannabis establishment. The Board may by regulation prescribe longer periods in which it will accept applications to operate a cannabis establishment.

(Added to NRS by 2019, 3798)

NRS 678B.310 Issuance of licenses to business entities.

1. The policy of the State of Nevada with respect to the issuance of licenses to business entities is:

(a) To broaden the opportunity for investment in the cannabis industry through the pooling of capital in the form of a business entity.

(b) To maintain effective control over cannabis establishments operated by licensees that are business entities.

2. The Board may adopt regulations prescribing requirements for the issuances of licenses to business entities and standards for licensees that are business entities which are more stringent than the requirements and standards otherwise set forth in this chapter. Such regulations must be consistent with:

(a) The policy of this State set forth in subsection 1 and NRS 678A.005.

(b) The provisions of this chapter which provide for more stringent requirements and standards for a registrant that holds an ownership interest of 5 percent or more in a cannabis establishment.

(Added to NRS by 2019, 3803)

NRS 678B.320 Licensing of cannabis establishments: Licenses deemed conditional pending compliance with local requirements.

1. In a local governmental jurisdiction that issues business licenses, the issuance by the Board of license shall be deemed to be conditional until such time as:

(a) The cannabis establishment is in compliance with all applicable local governmental ordinances or rules; and

(b) The local government has issued a business license for the operation of the establishment.

2. The Board shall adopt regulations:

(a) Requiring the surrender of a conditional license if a cannabis establishment does not satisfy the requirements of subsection 1 within a period of time determined by the Board; and

(b) Authorizing a cannabis establishment to request an extension of the period of time established pursuant to paragraph (a) as a result of factors outside of the control of the cannabis establishment that cause a delay in satisfying the requirements of subsection 1.

3. As used in this section, “local governmental jurisdiction” means a city or unincorporated area within a county.

(Added to NRS by 2019, 3798)

NRS 678B.322 Licensing of cannabis consumption lounges: Requirements for retail cannabis consumption lounge.

1. The Board shall not issue an adult-use cannabis establishment license for a retail cannabis consumption lounge pursuant to NRS 678B.250 unless:

(a) The applicant holds an adult-use cannabis establishment license for an adult-use cannabis retail store;

(b) The adult-use cannabis retail store for which the applicant holds an adult-use cannabis establishment license is operational; and

(c) The location of the proposed retail cannabis consumption lounge is attached or immediately adjacent to the adult-use cannabis retail store for which the applicant holds an adult-use cannabis establishment license.

2. The location of a proposed retail cannabis consumption lounge:

(a) Except as otherwise provided in paragraph (b), is not subject to the restrictions set forth in sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3 of NRS 678B.250 so long as the adult-use cannabis retail store to which the proposed retail cannabis consumption lounge is to be attached or immediately adjacent was in compliance with such requirements at the time it was issued an adult-use cannabis establishment license; and

(b) Must not be on the property of an airport.

(Added to NRS by 2021, 2357)

NRS 678B.323 Licensing of cannabis consumption lounges: Regulations establishing criteria for determination of social equity applicant.

1. The Board shall adopt regulations establishing criteria to be used by the Board for determining whether an applicant for the issuance or renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge qualifies as a social equity applicant for the purposes of this chapter.

2. The regulations adopted pursuant to subsection 1 must establish the minimum percentage of ownership in a proposed independent cannabis consumption lounge which will be held by a person or group of persons who have been adversely affected by provisions of previous laws which criminalized activity relating to cannabis for the applicant to qualify as a social equity applicant.

(Added to NRS by 2021, 2358)

NRS 678B.324 Licensing of cannabis consumption lounges: Regulations establishing criteria of merit and scoring guidelines for evaluating applications.

1. The Board shall adopt regulations establishing criteria of merit and scoring guidelines to be used by the Board in evaluating applications for the issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge pursuant to NRS 678B.250.

2. In determining whether to issue an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge pursuant to NRS 678B.250, the Board shall, in addition to the factors set forth in that section, consider the criteria of merit and scoring guidelines established pursuant to subsection 1.

3. The scoring guidelines established pursuant to subsection 1 must establish a minimum required score for the issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge.

4. The criteria of merit established pursuant to subsection 1 must include, without limitation:

(a) For a proposed independent cannabis consumption lounge:

(1) The diversity on the basis of race, ethnicity or gender of the applicant or the persons who are proposed to be owners or officers of the proposed independent cannabis consumption lounge; and

(2) Whether the applicant qualifies as a social equity applicant; and

(b) Any other criteria of merit that the Board determines to be relevant.

(Added to NRS by 2021, 2358)

NRS 678B.325 Licensing of cannabis consumption lounges: Issuance of adult-use cannabis establishment license for retail store and independent cannabis consumption lounge to one person prohibited. The Board shall not issue to any one person both an adult-use cannabis establishment license for an adult-use cannabis retail store and an adult-use cannabis establishment license for an independent cannabis consumption lounge.

(Added to NRS by 2021, 2358)

1. Except as otherwise provided in subsection 2, the Board shall not issue more than 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge.

2. If, on or before June 30, 2022, the Board issues 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge, the Board may thereafter issue adult-use cannabis establishment licenses for independent cannabis consumption lounges in amounts that exceed the limit set forth in subsection 1, so long as the total number of such licenses issued by the Board does not, at any time, exceed the total number of adult-use cannabis establishment licenses for a retail cannabis consumption lounge issued by the Board.

3. At least 10 of the first 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge issued by the Board must be issued to social equity applicants.

(Added to NRS by 2021, 2358)

NRS 678B.327 Licensing of cannabis consumption lounges: Issuance of licenses in local governmental jurisdiction that limits number of business licenses issued to cannabis consumption lounges.

1. The Board shall, for each local governmental jurisdiction that limits the number of business licenses which may be issued to cannabis consumption lounges, determine the number of licenses allocated to the jurisdiction for retail cannabis consumption lounges and independent cannabis consumption lounges.

2. Not more than 50 percent of the licenses allocated by the Board pursuant to subsection 1 may be issued to retail cannabis consumption lounges.

3. Except as otherwise provided in this subsection, at least 50 percent of the licenses allocated to a local governmental jurisdiction pursuant to subsection 1 must be issued to independent cannabis consumption lounges. At least 50 percent of the licenses issued to independent cannabis consumption lounges must be issued to social equity applicants. If there are an insufficient number of social equity applicants to distribute licenses in that manner, the local governmental jurisdiction shall issue business licenses to all qualified social equity applicants and hold the remaining business licenses in reserve for future issuance to social equity applicants.

4. If the number of qualified applicants in a local governmental jurisdiction exceeds the number of licenses allocated to that jurisdiction pursuant to subsection 1, the Board shall issue adult-use cannabis establishment licenses for retail cannabis consumption lounges and independent cannabis consumption lounges in the local governmental jurisdiction to qualified applicants who are not social equity applicants using a separate lottery system for each type of license.

5. As used in this section, “local governmental jurisdiction” means a city or unincorporated area within a county.

(Added to NRS by 2021, 2359)

NRS 678B.328 Licensing of cannabis consumption lounges: Prohibition on issuance of multiple licenses to one person; transfer of license.

1. Except as otherwise provided in subsection 2, the Board shall not issue:

(a) More than one adult-use cannabis establishment license for an independent cannabis consumption lounge to any one person;

(b) More than one adult-use cannabis establishment license for a retail cannabis consumption lounge to any one person; or

(c) Both an adult-use cannabis establishment license for a retail cannabis consumption lounge and an adult-use cannabis establishment license for an independent cannabis consumption lounge to any one person.

2. The Board may approve a transfer of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge to a person that acquires a 100 percent ownership interest in a cannabis consumption lounge in a county in which the person holds another such license if the transfer:

(a) Complies with all requirements for the transfer of a license established by the Board pursuant to NRS 678B.380; and

(b) Will not result in the person holding more than two adult-use cannabis establishment licenses for a retail cannabis consumption lounge, adult-use cannabis establishment licenses for an independent cannabis lounge or any combination of the two.

(Added to NRS by 2021, 2359)

NRS 678B.330 Provision of information regarding inspection or review of cannabis establishment by local government to Board. The Board may request information from a local government regarding any inspection or review of a cannabis establishment by the local government. A local government that receives a reasonable request from the Board pursuant to this section shall comply with the request as soon as is reasonably practicable after receiving the request.

(Added to NRS by 2019, 3795)

NRS 678B.340 Agents required to register with Board; requirements for registration.

1. A person shall not volunteer or work at, contract to provide labor to or be employed by an independent contractor to provide labor to a cannabis establishment as a cannabis establishment agent unless the person is registered with the Board pursuant to this section.

2. A person who wishes to volunteer or work at a cannabis establishment shall submit to the Board an application on a form prescribed by the Board. The application must be accompanied by:

(a) The name, address and date of birth of the prospective cannabis establishment agent;

(b) A statement signed by the prospective cannabis establishment agent pledging not to dispense or otherwise divert cannabis to any person who is not authorized to possess cannabis in accordance with the provisions of this title;

(c) A statement signed by the prospective cannabis establishment agent asserting that he or she has not previously had a cannabis establishment agent registration card revoked;

(d) The application fee, as set forth in NRS 678B.390; and

(e) Such other information as the Board may require by regulation.

3. A person who wishes to contract to provide labor to or be employed by an independent contractor to provide labor to a cannabis establishment shall submit to the Board an application on a form prescribed by the Board for the registration of the independent contractor and each employee of the independent contractor who will provide labor as a cannabis establishment agent. The application must be accompanied by:

(a) The name, address and, if the prospective cannabis establishment agent has a state business license, the business identification number assigned by the Secretary of State upon compliance with the provisions of chapter 76 of NRS;

(b) The name, address and date of birth of each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent;

(c) A statement signed by the prospective cannabis establishment agent pledging not to dispense or otherwise divert cannabis to, or allow any of its employees to dispense or otherwise divert cannabis to, any person who is not authorized to possess cannabis in accordance with the provisions of this title;

(d) A statement signed by the prospective cannabis establishment agent asserting that it has not previously had a cannabis establishment agent registration card revoked and that none of its employees who will provide labor as a cannabis establishment agent have previously had a cannabis establishment agent registration card revoked;

(e) The application fee, as set forth in NRS 678B.390; and

(f) Such other information as the Board may require by regulation.

4. The Board may conduct any investigation of a prospective cannabis establishment agent and, for an independent contractor, each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent, that the Board deems appropriate. In connection with such an investigation, the Board may:

(a) Conduct or accept any background check the Board determines to be reliable and expedient to determine the criminal history of the prospective cannabis establishment agent or the employee;

(b) Require a prospective cannabis establishment agent, if a natural person, and each employee of a prospective cannabis establishment agent who will provide labor as a cannabis establishment agent to submit to the Board a complete set of fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(c) If the Board imposes the requirement described in paragraph (b), submit the fingerprints of the prospective cannabis establishment agent and each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

5. A cannabis establishment shall notify the Board within 10 business days after a cannabis establishment agent ceases to be employed by, volunteer at or provide labor as a cannabis establishment agent to the cannabis establishment.

6. Except as otherwise provided in NRS 678B.633, a person who:

(a) Has been convicted of an excluded felony offense;

(b) Is less than 21 years of age; or

Ê shall not serve as a cannabis establishment agent.

7. The provisions of this section do not require a person who is an owner, officer or board member of a cannabis establishment to resubmit information already furnished to the Board at the time the establishment was licensed with the Board.

8. If an applicant for registration as a cannabis establishment agent satisfies the requirements of this section, is found to be qualified by the Board pursuant to NRS 678B.200 and is not disqualified from serving as such an agent pursuant to this section or any other applicable law, the Board shall issue to the person and, for an independent contractor, to each person identified in the independent contractor’s application for registration as an employee who will provide labor as a cannabis establishment agent, a cannabis establishment agent registration card. If the Board does not act upon an application for a cannabis establishment agent registration card within 45 days after the date on which the application is received, the application shall be deemed conditionally approved until such time as the Board acts upon the application. A cannabis establishment agent registration card expires 2 years after the date of issuance and may be renewed upon:

(a) Resubmission of the information set forth in this section; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

9. A person to whom a cannabis establishment agent registration card is issued or for whom such a registration card is renewed shall submit to the Board on the date of the first anniversary of the issuance or renewal an affidavit attesting that in the preceding year there has been no change in the information previously provided to the Board which would subject the person to disciplinary action by the Board.

10. A cannabis establishment agent registration card issued pursuant to this section to an independent contractor or an employee of an independent contractor authorizes the independent contractor or employee to provide labor to any cannabis establishment in this State.

11. A cannabis establishment agent registration card issued pursuant to this section to a person who wishes to volunteer or work at a cannabis establishment authorizes the person to volunteer or work at any cannabis establishment in this State for which the category of the cannabis establishment agent registration card authorizes the person to volunteer or work.

12. Except as otherwise prescribed by regulation of the Board, an applicant for registration or renewal of registration as a cannabis establishment agent is deemed temporarily registered as a cannabis establishment agent on the date on which a complete application for registration or renewal of registration is submitted to the Board. A temporary registration as a cannabis establishment agent expires 45 days after the date upon which the application is received.

13. A person who holds an ownership interest of less than 5 percent in a cannabis establishment is not required to obtain a cannabis establishment agent registration card pursuant to this section. The Board may, in connection with the issuance or renewal of a license pursuant to NRS 678B.210 or 678B.250, conduct such investigations of such a person as the Board determines to be necessary.

(Added to NRS by 2019, 2335, 3798; A 2021, 3149; 2023, 2563)

NRS 678B.350 Owners with 5 percent or more ownership interest required to register with Board; requirements for registration.

1. In addition to the requirements set forth in NRS 678B.340, a person shall not hold an ownership interest in a cannabis establishment of 5 percent or more unless the person first secures a cannabis establishment agent registration card for a cannabis executive issued by the Board.

2. A person who wishes to hold an ownership interest in a cannabis establishment of 5 percent or more shall submit to the Board an application on a form prescribed by the Board. The application must be accompanied by:

(a) The name, address and date of birth of the applicant;

(b) A statement signed by the applicant asserting that he or she has not previously had a cannabis establishment agent registration card for a cannabis executive revoked;

(c) A complete set of the fingerprints and written permission of the applicant authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

(d) Any information required by the Board to complete an investigation into the background of the applicant, including, without limitation, financial records and other information relating to the business affairs of the applicant;

(e) The application fee, as set forth in NRS 678B.390; and

(f) Such other information as the Board may require by regulation.

3. If the Board determines the applicant is qualified to receive a cannabis establishment agent registration card for a cannabis executive pursuant to NRS 678B.200, the Board shall issue to the person a cannabis establishment agent registration card for a cannabis executive.

4. A cannabis establishment agent registration card for a cannabis executive expires 2 years after the date of issuance and may be renewed upon:

(a) Resubmission of the information set forth in this section; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

5. A person to whom a cannabis establishment agent registration card for a cannabis executive is issued or for whom such a registration card is renewed shall submit to the Board on the date of the first anniversary of the issuance or renewal an affidavit attesting that in the preceding year there has been no change in the information previously provided to the Board which would subject the person to disciplinary action by the Board.

(Added to NRS by 2019, 3801)

NRS 678B.355 Receiver for cannabis establishment subject to receivership required to register with Board; requirements for registration.

1. In addition to the requirements set forth in NRS 678B.340, a person shall not act as a receiver for a cannabis establishment subject to a receivership unless the person first secures a cannabis establishment agent registration card for a cannabis receiver issued by the Board.

2. A person who wishes to act as a receiver for a cannabis establishment subject to a receivership shall submit to the Board an application on a form prescribed by the Board. The application must be accompanied by:

(a) The name, address and date of birth of the applicant;

(b) A statement signed by the applicant asserting that he or she has not previously had a cannabis establishment agent registration card for a cannabis receiver revoked;

(d) Any information required by the Board to complete an investigation into the background of the applicant;

(e) Proof satisfactory to the Board that the applicant has:

(1) Experience in or knowledge of the cannabis industry;

(2) Experience as a receiver appointed by a court;

(3) The knowledge and skills necessary to make reasonable financial decisions with respect to the finances of a cannabis establishment subject to a receivership; and

(4) Adequate financial capacity to fulfill the duties of a receiver;

(f) The application fee, as set forth in NRS 678B.390; and

(g) Such other information as the Board may require by regulation.

3. If the Board determines the applicant is qualified to receive a cannabis establishment agent registration card for a cannabis receiver pursuant to NRS 678B.200, the Board shall issue to the person a cannabis establishment agent registration card for a cannabis receiver.

4. A cannabis establishment agent registration card for a cannabis receiver expires 2 years after the date of issuance and may be renewed upon:

(a) Resubmission of the information set forth in this section; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

5. A person to whom a cannabis establishment agent registration card for a cannabis receiver is issued or for whom such a registration card is renewed shall submit to the Board on the date of the first anniversary of the issuance or renewal an affidavit attesting that in the preceding year there has been no change in the information previously provided to the Board which would subject the person to disciplinary action by the Board.

(Added to NRS by 2021, 2141)

1. In addition to any other requirements set forth in this chapter, an applicant for the issuance or renewal of a license or registration card who is a natural person shall:

(a) Include the social security number of the applicant in the application submitted to the Board.

(b) Submit to the Board the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

2. The Board shall include the statement required pursuant to subsection 1 in:

(a) The application or any other forms that must be submitted for the issuance or renewal of the license or registration card; or

(b) A separate form prescribed by the Board.

3. A license or registration card may not be issued or renewed by the Board if the applicant:

(a) Fails to submit the statement required pursuant to subsection 1; or

(b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

4. If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

(Added to NRS by 2019, 2338, 3804)—(Substituted in revision for NRS 453D.224)

1. If the Board receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license or registration card, the Board shall deem the license or registration card issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Board receives a letter issued to the holder of the license or registration card by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license or registration card has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

2. The Board shall reinstate a license or registration card that has been suspended by a district court pursuant to NRS 425.540 if the Board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license or registration card was suspended stating that the person whose license or registration card was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 2019, 2338, 3805)—(Substituted in revision for NRS 453D.226)

1. Except as otherwise provided by regulations adopted by the Board pursuant to subsection 2, the following are nontransferable:

(a) A cannabis establishment agent registration card.

(b) A cannabis establishment agent registration card for a cannabis executive.

(d) A medical cannabis establishment license.

(e) An adult-use cannabis establishment license.

2. The Board shall adopt regulations which prescribe procedures and requirements by which a holder of:

(a) A license may transfer the license to another party who is qualified to hold such a license pursuant to the provisions of this chapter.

(b) An ownership interest in a cannabis establishment may transfer all or any portion of the ownership interest to another party who is qualified to hold an ownership interest in a cannabis establishment pursuant to the provisions of this chapter.

3. The regulations adopted pursuant to subsection 2 may give priority in the processing of transfers of licenses to a transfer in which the transferor is:

(a) Subject to a receivership;

(b) Involved in a recapitalization; or

4. The regulations adopted pursuant to subsection 2 must:

(a) Prohibit the holder of an adult-use cannabis establishment license for an independent cannabis consumption lounge from transferring the license until at least 2 years from the date on which the independent cannabis consumption lounge for which the license was issued became operational;

(b) Require the holder of an adult-use cannabis establishment license for an independent cannabis consumption lounge who wishes to cease operations before the independent cannabis consumption lounge for which the license was issued has been operational for at least 2 years to surrender the license to the Board; and

(c) Require the Board to hold a license surrendered pursuant to paragraph (b) in reserve for issuance to an applicant for such a license in the future.

(Added to NRS by 2019, 3805; A 2021, 2147, 2365; 2023, 2717)

NRS 678B.383 Board required to adopt regulations prescribing procedures and requirements for receiver to take action with respect to cannabis establishment subject to receivership. The Board shall adopt regulations which prescribe procedures and requirements by which a receiver appointed by a court who has been issued a cannabis establishment agent registration card for a cannabis receiver may take possession of, manage the operations of and take any other action authorized by a court with respect to a cannabis establishment subject to a receivership. Such regulations must, without limitation:

1. Prescribe procedures and requirements for the management, liquidation, sale or transfer of a cannabis establishment subject to a receivership by such a receiver, including, without limitation, procedures and requirements for the transfer of a license by a receiver in accordance with the regulations adopted pursuant to NRS 678B.380; and

2. Require such a receiver to comply with all applicable provisions of this title and the regulations adopted pursuant thereto.

(Added to NRS by 2021, 2142)

NRS 678B.385 Grounds for immediate revocation of registration card. The following acts constitute grounds for the immediate revocation of the cannabis establishment agent registration card of a cannabis establishment agent:

1. Having committed or committing any excluded felony offense.

2. Dispensing, delivering or otherwise transferring cannabis to a person who is not authorized by law to possess cannabis in accordance with the provisions of this title.

3. Having been electronically recorded by a video monitoring system stealing cannabis or cannabis products.

4. Having been convicted of any crime involving the theft of cannabis or cannabis products.

5. Having been electronically recorded by a video monitoring system smoking or otherwise consuming cannabis on the premises of a cannabis establishment.

6. Intentionally submitting to the Board or a local government any document required under the provisions of this title which is false or contains any material misstatement of fact.

7. Violating a regulation of the Board, the violation of which is stated to be grounds for immediate revocation of a cannabis establishment agent registration card.

(Added to NRS by 2019, 2339)—(Substituted in revision for NRS 453A.342, 453D.228 and 678D.450)

NRS 678B.390 Fees.

1. Except as otherwise provided in subsection 3, the Board shall collect not more than the following maximum fees:

For the initial issuance of a medical cannabis establishment license for a medical cannabis dispensary..................................................................................................................... $30,000

For the renewal of a medical cannabis establishment license for a medical cannabis dispensary 5,000

For the initial issuance of a medical cannabis establishment license for a medical cannabis cultivation facility......................................................................................................................... 3,000

For the renewal of a medical cannabis establishment license for a medical cannabis cultivation facility......................................................................................................................... 1,000

For the initial issuance of a medical cannabis establishment license for a medical cannabis production facility......................................................................................................................... 3,000

For the renewal of a medical cannabis establishment license for a medical cannabis production facility......................................................................................................................... 1,000

For the initial issuance of a medical cannabis establishment license for a medical cannabis independent testing laboratory....................................................................................................... 5,000

For the renewal of a medical cannabis establishment license for a medical cannabis independent testing laboratory......................................................................................................................... 3,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis retail store....................................................................................................................... 20,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis retail store 5,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility......................................................................................................................... 3,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility......................................................................................................................... 1,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis production facility............................................................................................................. 3,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis production facility......................................................................................................................... 1,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory.......................................................................................... 5,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory....................................................................................................... 3,000

For the initial issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge....................................................................................................................... 10,000

For the renewal of an adult-use cannabis establishment license for a retail cannabis consumption lounge....................................................................................................................... 10,000

For the initial issuance of an adult-use cannabis establishment license for an independent cannabis consumption lounge........................................................................................................... 10,000

For the renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge....................................................................................................................... 10,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis distributor....................................................................................................................... 15,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis distributor 5,000

For each person identified in an application for the initial issuance of a cannabis establishment agent registration card..................................................................................................................... 150

For each person identified in an application for the renewal of a cannabis establishment agent registration card............................................................................................................................. 150

2. The Board may by regulation establish reduced fees for:

(a) The initial issuance and renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge; and

(b) The application fee set forth in subsection 3,

Ê for a social equity applicant. Such a reduction must not reduce the fee paid by a social equity applicant by more than 75 percent of the fee paid by an applicant who is not a social equity applicant.

3. Except as otherwise provided in subsection 2, in addition to the fees described in subsection 1, each applicant for a medical cannabis establishment license pursuant to NRS 678B.210 or adult-use cannabis establishment license pursuant to NRS 678B.250 must pay to the Board:

(a) For an application for a license other than an adult-use cannabis establishment license for a retail cannabis consumption lounge or independent cannabis consumption lounge, a one-time, nonrefundable application fee of $5,000;

(b) For an application for an adult-use cannabis establishment license for a retail cannabis consumption lounge, a one-time, nonrefundable application fee of $100,000;

(c) For an application for an adult-use cannabis establishment license for an independent cannabis consumption lounge, a one-time, nonrefundable application fee of $10,000; and

(d) The actual costs paid by the Board to a law enforcement agency or other person who is not an employee of the Board to conduct any background checks in connection with the application.

4. The Board may charge a cannabis establishment for the actual costs paid by the Board to a law enforcement agency or other person who is not an employee of the Board to conduct any background checks in connection with a transfer of ownership interest in the cannabis establishment pursuant to the regulations adopted by the Board pursuant to NRS 678B.380.

5. In addition to any other applicable fees described in subsections 1, 3 and 4, the Board may charge a licensee or an applicant for a license the amounts specified in subsection 6 for the costs incurred by the Board and its staff for an investigation conducted in connection with:

(a) A transfer of ownership interest in a cannabis establishment pursuant to the regulations adopted by the Board pursuant to NRS 678B.380;

(b) An application for the initial issuance of a license;

(c) A request to obtain any approval that may be required by the Board to enter into an agreement to provide management services to a cannabis establishment; or

(d) A waiver that is requested pursuant to the provisions of this title or the regulations adopted pursuant thereto.

6. The charges authorized by subsection 5 must be limited to:

(a) A reasonable hourly fee at a rate established by the Board by regulation for each hour spent by agents of the Board in conducting the investigation; and

(b) Costs for the travel expenses and per diem allowances of the agents of the Board conducting the investigation. The per diem allowances and travel expenses must be assessed at the rate established by the State Board of Examiners for state officers and employees generally.

7. Any revenue generated from the fees imposed pursuant to this section:

(a) Must be expended first to pay the costs of the Board in carrying out the provisions of this title; and

(b) If any excess revenue remains after paying the costs described in paragraph (a), such excess revenue must be paid over to the State Treasurer to be deposited to the credit of the State Education Fund.

8. The Board shall not charge a licensee, registrant or applicant for a license or registration card any fee, cost, fine or other charge that is not expressly authorized by the provisions of this title. Such prohibited charges include, without limitation, any charge for the costs of ongoing activities of the Board relating to the oversight of a cannabis establishment, including, without limitation, any charge for costs relating to:

(a) Except as otherwise provided in subsection 5, travel or lodging for an agent of the Board;

(b) Any routine inspection or audit;

(d) An investigation of a complaint submitted to the Board by a person who is not associated with the Board; or

(e) Except as otherwise provided in subsections 3, 4 and 5, any other type of inspection, audit or investigation.

(Added to NRS by 2019, 3803; A 2021, 2365; 2023, 2566, 2718)

Requirements Concerning Operation of Cannabis Establishments

NRS 678B.500 Location, land use and signage; change of location.

1. Each cannabis establishment must comply with all local ordinances and rules pertaining to zoning, land use and signage.

2. A cannabis establishment may move to a new location under the jurisdiction of the same local government as its original location and regardless of the distance from its original location if the operation of the cannabis establishment at the new location has been approved by the local government. A local government may approve a new location pursuant to this subsection only in a public hearing for which written notice is given at least 7 working days before the hearing.

(Added to NRS by 2019, 3806)

1. The operating documents of a cannabis establishment must include procedures:

(a) For the oversight of the cannabis establishment; and

(b) To ensure accurate recordkeeping.

2. Except as otherwise provided in this subsection, a cannabis establishment may have more than one entrance so long as each entrance is secure and shall implement strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis. The provisions of this subsection do not supersede any state or local requirements relating to minimum numbers of points of entry or exit, or any state or local requirements relating to fire safety.

3. Except as otherwise provided in NRS 678D.400, all cultivation or production of cannabis that a cannabis cultivation facility carries out or causes to be carried out must take place in an enclosed, locked facility at the physical address provided to the Board during the licensing process for the cannabis cultivation facility. Such an enclosed, locked facility must be accessible only by cannabis establishment agents who are lawfully associated with the cannabis cultivation facility, except that limited access by persons necessary to perform construction or repairs or provide other labor is permissible if such persons are supervised by a cannabis establishment agent.

4. A cannabis establishment that is not a cannabis consumption lounge shall not allow any person to consume cannabis on the property or premises of the establishment.

5. Cannabis establishments are subject to reasonable inspection by the Board at any time, and a person who holds a license must make himself or herself, or a designee thereof, available and present for any inspection by the Board of the cannabis establishment.

6. Each cannabis establishment shall install a video monitoring system which must, at a minimum:

(a) Allow for the transmission and storage, by digital or analog means, of a video feed which displays the interior and exterior of the cannabis establishment; and

(b) Be capable of being accessed remotely by a law enforcement agency in real-time upon request.

7. A cannabis establishment shall not dispense or otherwise sell cannabis or cannabis products from a vending machine or allow such a vending machine to be installed at the interior or exterior of the premises of the cannabis establishment. As used in this subsection, “vending machine” has the meaning ascribed to it in NRS 209.229.

(Added to NRS by 2019, 3806; A 2021, 2367; 2023, 2568)

1. Each cannabis establishment shall, in consultation with the Board, cooperate to ensure that all cannabis products offered for sale:

(a) Are labeled clearly and unambiguously:

(1) As cannabis with the words “THIS PRODUCT CONTAINS CANNABIS” in bold type; and

(2) As required by the provisions of this chapter and chapters 678C and 678D of NRS.

(b) Are not presented in packaging that contains an image of a cartoon character, mascot, action figure, balloon or toy, except that such an item may appear in the logo of the cannabis production facility which produced the product.

(d) Are packaged and labeled in such a manner as to allow tracking by way of an inventory control system.

(e) Are not packaged and labeled in a manner which is modeled after a brand of products primarily consumed by or marketed to children.

(f) Are labeled in a manner which indicates the amount of THC in the product, measured in milligrams, and includes a statement that the product contains cannabis and its potency was tested with an allowable variance of the amount determined by the Board by regulation.

(g) Are not labeled or marketed as candy.

(h) Are labeled with:

(1) The words “Keep out of reach of children”;

(2) A list of all ingredients used in the cannabis product;

(3) A list of all major food allergens in the cannabis product; and

(4) Any other information the Board may require by regulation.

2. A cannabis production facility shall not produce cannabis products in any form that:

(a) Is or appears to be a lollipop.

(b) Bears the likeness or contains characteristics of a real or fictional person, animal or fruit, including, without limitation, a caricature, cartoon or artistic rendering.

(d) Is made by applying concentrated cannabis, as defined in NRS 453.042, to a commercially available candy or snack food item other than dried fruit, nuts or granola.

3. A cannabis production facility shall:

(a) Seal any cannabis product that consists of cookies or brownies in a bag or other container which is not transparent.

(b) Maintain a hand washing area with hot water, soap and disposable towels which is located away from any area in which cannabis products are cooked or otherwise prepared.

(c) Require each person who handles cannabis products to restrain his or her hair, wear clean clothing and keep his or her fingernails neatly trimmed.

(d) Package all cannabis products produced by the cannabis production facility on the premises of the cannabis production facility.

4. A cannabis establishment shall not engage in advertising that in any way makes cannabis or cannabis products appeal to children, including, without limitation, advertising which uses an image of a cartoon character, mascot, action figure, balloon, fruit or toy.

5. Each cannabis sales facility shall offer for sale containers for the storage of cannabis and cannabis products which lock and are designed to prohibit children from unlocking and opening the container.

6. A cannabis sales facility shall:

(a) Convey to each purchaser of cannabis or cannabis products the following information in a manner prescribed by the Board:

(1) To keep cannabis and cannabis products out of the reach of children;

(2) That cannabis products can cause severe illness in children;

(3) That allowing children to ingest cannabis or cannabis products or storing cannabis or cannabis products in a location which is accessible to children may result in an investigation by an agency which provides child welfare services or criminal prosecution for child abuse or neglect;

(4) That the intoxicating effects of edible cannabis products may be delayed by 2 hours or more and users of edible cannabis products should initially ingest a small amount of the product, then wait at least 120 minutes before ingesting any additional amount of the product;

(5) That pregnant women should consult with a physician before ingesting cannabis or cannabis products;

(6) That ingesting cannabis or cannabis products with alcohol or other drugs, including prescription medication, may result in unpredictable levels of impairment and that a person should consult with a physician before doing so;

(7) That cannabis or cannabis products can impair concentration, coordination and judgment and a person should not operate a motor vehicle while under the influence of cannabis or cannabis products; and

(8) That ingestion of any amount of cannabis or cannabis products before driving may result in criminal prosecution for driving under the influence.

(b) Enclose all cannabis and cannabis products in opaque, child-resistant packaging upon sale.

7. A cannabis sales facility shall allow any person who is at least 21 years of age to enter the premises of the cannabis sales facility.

8. If the health authority, as defined in NRS 446.050, where a cannabis production facility, cannabis sales facility or cannabis consumption lounge which sells edible cannabis products is located requires persons who handle food at a food establishment to obtain certification, the cannabis production facility, cannabis sales facility or cannabis consumption lounge shall ensure that at least one employee maintains such certification.

9. A cannabis production facility may sell a commodity or product made using hemp, as defined in NRS 557.160, or containing cannabidiol to a cannabis sales facility.

10. In addition to any other product authorized by the provisions of this title, a cannabis sales facility may sell:

(a) Any commodity or product made using hemp, as defined in NRS 557.160;

(b) Any commodity or product containing cannabidiol with a THC concentration of not more than 0.3 percent; and

11. A cannabis establishment:

(a) Shall not engage in advertising which contains any statement or illustration that:

(1) Is false or misleading;

(2) Promotes overconsumption of cannabis or cannabis products;

(3) Depicts the actual consumption of cannabis or cannabis products; or

(4) Depicts a child or other person who is less than 21 years of age consuming cannabis or cannabis products or objects suggesting the presence of a child, including, without limitation, toys, characters or cartoons, or contains any other depiction which is designed in any manner to be appealing to or encourage consumption of cannabis or cannabis products by a person who is less than 21 years of age.

(b) Shall not advertise in any publication or on radio, television or any other medium if 30 percent or more of the audience of that medium is reasonably expected to be persons who are less than 21 years of age.

(1) Within 1,000 feet of a public or private school, playground, public park or library, but may maintain such an advertisement if it was initially placed before the school, playground, public park or library was located within 1,000 feet of the location of the advertisement;

(2) On or inside of a motor vehicle used for public transportation or any shelter for public transportation;

(3) At a sports event to which persons who are less than 21 years of age are allowed entry; or

(4) At an entertainment event if it is reasonably estimated that 30 percent or more of the persons who will attend that event are less than 21 years of age.

(d) Shall not advertise or offer any cannabis or cannabis product as “free” or “donated” without a purchase.

(e) Shall ensure that all advertising by the cannabis establishment contains such warnings as may be prescribed by the Board, which must include, without limitation, the following words:

(1) “Keep out of reach of children”; and

(2) “For use only by adults 21 years of age and older.”

(f) Shall ensure that all advertising by the cannabis establishment contains:

(1) The name of the cannabis establishment; and

(2) Except as otherwise provided in subsection 12, the adult-use cannabis establishment license number or medical cannabis establishment license number of the cannabis establishment or any other unique identifier assigned to the cannabis establishment by the Board.

12. A cannabis establishment that holds more than one license may satisfy the requirement set forth in subparagraph (2) of paragraph (f) of subsection 11 if the cannabis establishment includes in all advertising conducted by the cannabis establishment:

(a) Any one of the adult-use cannabis establishment license numbers or medical cannabis establishment license numbers of the cannabis establishment; or

(b) Any one unique identifier assigned to the cannabis establishment by the Board.

13. Nothing in subsection 11 shall be construed to prohibit a local government, pursuant to chapter 244, 268 or 278 of NRS, from adopting an ordinance for the regulation of advertising relating to cannabis which is more restrictive than the provisions of subsection 11 relating to:

(a) The number, location and size of signs, including, without limitation, any signs carried or displayed by a natural person;

(b) Handbills, pamphlets, cards or other types of advertisements that are distributed, excluding an advertisement placed in a newspaper of general circulation, trade publication or other form of print media;

(d) The content of any advertisement used by a cannabis establishment if the ordinance sets forth specific prohibited content for such an advertisement.

14. If a cannabis establishment engages in advertising for which it is required to determine the percentage of persons who are less than 21 years of age and who may reasonably be expected to view or hear the advertisement, the cannabis establishment shall maintain documentation for not less than 5 years after the date on which the advertisement is first broadcasted, published or otherwise displayed that demonstrates the manner in which the cannabis establishment determined the reasonably expected age of the audience for that advertisement.

15. To the extent that they are inconsistent or otherwise conflict with the regulations adopted by the Board pursuant to NRS 678D.480, the requirements of this section pertaining to cannabis products do not apply to ready-to-consume cannabis products prepared and sold by a cannabis consumption lounge.

16. In addition to any other penalties provided for by law, the Board may impose a civil penalty upon a cannabis establishment that violates the provisions of subsection 11 or 14 as follows:

(a) For the first violation in the immediately preceding 2 years, a civil penalty not to exceed $1,250.

(b) For the second violation in the immediately preceding 2 years, a civil penalty not to exceed $2,500.

(d) For the fourth violation in the immediately preceding 2 years, a civil penalty not to exceed $10,000.

17. As used in this section, “motor vehicle used for public transportation” does not include a taxicab, as defined in NRS 706.124.

(Added to NRS by 2019, 3807; A 2021, 743, 2147, 2368, 3152)

NRS 678B.525 Production, distribution, sale or offer for sale of synthetic cannabinoids prohibited. The holder of a license or registration card issued pursuant to this chapter shall not produce, distribute, sell or offer to sell in this State any synthetic cannabinoid.

(Added to NRS by 2021, 3149)

NRS 678B.530 Advertising sale, selling or appearing to sell cannabis or cannabis products without license prohibited.

1. A person shall not:

(a) Advertise the sale of cannabis or cannabis products by the person; or

(b) Sell, offer to sell or appear to sell cannabis or cannabis products or allow the submission of an order for cannabis or cannabis products,

Ê unless the person holds an adult-use cannabis establishment license or a medical cannabis establishment license.

2. A local government shall not regulate the content of an advertisement for the sale of cannabis or cannabis products unless the local government adopts an ordinance setting forth such regulations.

(Added to NRS by 2019, 3809)

NRS 678B.535 Curbside pickup authorized; regulations.

1. A cannabis sales facility may engage in curbside pickup in accordance with the regulations adopted by the Board pursuant to this section.

2. The Board shall adopt regulations setting forth procedures and requirements for the conducting of curbside pickup by a cannabis sales facility and any other regulations governing curbside pickup that the Board determines are necessary.

3. Nothing in this section shall be construed as prohibiting a local government from adopting and enforcing an ordinance or rule that prohibits a cannabis sales facility from engaging in curbside pickup based on the characteristics of the location of the cannabis sales facility or any other considerations.

4. As used in this section, “curbside pickup” means the delivery of cannabis or cannabis products by a cannabis sales facility to a consumer in a motor vehicle located on the premises of the cannabis sales facility.

(Added to NRS by 2021, 743)

NRS 678B.540 Random laboratory assurance checks.

1. The Board may establish a program to ensure the integrity of all testing performed by a cannabis independent testing laboratory by subjecting each such laboratory to random laboratory assurance checks.

2. If the Board establishes a program pursuant to subsection 1, each cannabis independent testing laboratory shall participate in the program.

3. If the Board establishes a program pursuant to subsection 1, as part of the program, the Board shall:

(a) Collect samples of cannabis or cannabis products from cannabis establishments that have already been tested by cannabis independent testing laboratories in amounts deemed sufficient by the Board;

(b) Remove identifying characteristics from and randomize such samples; and

4. A cannabis independent laboratory that receives a sample from the Board shall perform such quality assurance tests upon the sample as the Board may require. Such tests may include, without limitation:

(a) Screening the sample for pesticides, heavy metals, chemical residues, herbicides, growth regulators and microbial analysis;

(b) A potency analysis to test for and quantify the presence of the following cannabinoids:

(1) THC;

(2) Tetrahydrocannabinolic acid;

(3) Cannabidiol;

(4) Cannabidiolic acid; and

(5) Cannabinol; and

5. If the Board establishes a program pursuant to subsection 1, the Board shall adopt regulations necessary to carry out the program. Such regulations:

(a) Must require each cannabis independent testing laboratory to perform a random laboratory assurance check at least once every 6 months but not more frequently than once every 3 months.

(b) May modify the procedures and requirements set forth in this section if the Board determines that advances in science necessitate such a modification.

6. As used in this section, “random laboratory assurance check” means the evaluation of the performance of a cannabis independent testing laboratory in conducting quality assurance tests upon a sample if required by the Board under the program established pursuant to subsection 1.

(Added to NRS by 2019, 3810)

NRS 678B.545 Requirement to verify age of consumer before sale of cannabis or cannabis product; manner of verification. Before a cannabis establishment agent sells cannabis or a cannabis product to a consumer, the cannabis establishment agent shall verify the age of the consumer by checking a government-issued identification that contains a photograph of the consumer using an identification scanner which has been approved by an appropriate agent of the Board to determine the validity of any government-issued identification.

(Added to NRS by 2023, 835)

NRS 678B.550 Cannabis sales facilities: Limitation on quantity of usable cannabis and concentrated cannabis sold in one transaction. A cannabis sales facility shall not sell to a person, in any one transaction, more than 2.5 ounces of usable cannabis or more than one-fourth of an ounce of concentrated cannabis.

(Added to NRS by 2023, 2558)

Miscellaneous Provisions

NRS 678B.600 Employee of State Department of Agriculture exempt from state prosecution for certain acts involving cannabis.

1. An employee of the State Department of Agriculture who, in the course of his or her duties:

(a) Possesses, delivers or produces cannabis;

(b) Aids and abets another in the possession, delivery or production of cannabis;

(d) Performs any other criminal offense in which the possession, delivery or production of cannabis is an element,

Ê is exempt from state prosecution for the offense. The persons described in this subsection must ensure that the cannabis described in this subsection is safeguarded in an enclosed, secure location.

2. In addition to the provisions of subsection 1, no person may be subject to state prosecution for constructive possession, conspiracy or any other criminal offense solely for being in the presence or vicinity of the cannabis in accordance with the provisions of this title.

3. As used in this section, “cannabis” includes, without limitation, cannabis products.

(Added to NRS by 2019, 3806)

NRS 678B.610 Enforcement of contracts. It is the public policy of this State that contracts related to the operation of cannabis establishments under this title should be enforceable, and no contract entered into by the licensee or registrant as permitted pursuant to such a license or registration card, or by those who allow property to be used by a licensee or registrant as permitted pursuant to such a license or registration card, shall be deemed unenforceable on the basis that the actions or conduct permitted pursuant to the license or registration card are prohibited by federal law.

(Added to NRS by 2019, 3811)

NRS 678B.620 Training of cannabis establishment agents by independent contractor; issuance of cannabis establishment agent registration card to independent contractor.

1. An independent contractor, including, without limitation, an educational institution, nonprofit organization or labor organization, may enter into a contract with a cannabis establishment to provide training to the cannabis establishment agents who volunteer or work at, contract to provide labor to or are employed by an independent contractor to provide labor to the cannabis establishment.

2. The Board shall issue to an independent contractor who wishes to provide training as described in subsection 1 a cannabis establishment agent registration card if:

(a) The independent contractor submits to the Board an organized, written plan describing the manner in which the independent contractor will conduct the training which has been agreed to by the independent contractor and the cannabis establishment; and

(b) The independent contractor satisfies the requirements of NRS 678B.340.

(Added to NRS by 2019, 2478, 2480)—(Substituted in revision for NRS 453A.365 and 453D.305)

1. The Board shall develop and implement a process by which a person with a criminal history may petition the Board to review the criminal history of the person to determine if the person’s criminal history will disqualify the person from obtaining a license or cannabis establishment agent registration card pursuant to this title.

2. Not later than 90 days after a petition is submitted to the Board pursuant to subsection 1, the Board shall inform the person of the determination of the Board of whether the person’s criminal history will disqualify the person from obtaining a license or cannabis establishment agent registration card. The Board is not bound by its determination of disqualification or qualification and may rescind such a determination at any time.

3. The Board may provide instructions to a person who receives a determination of disqualification to remedy the determination of disqualification. A person may resubmit a petition pursuant to subsection 1 not earlier than 6 months after receiving instructions pursuant to this subsection if the person remedies the determination of disqualification.

4. A person with a criminal history may petition the Board at any time, including, without limitation, before obtaining any education or paying any fee required to obtain a license or cannabis establishment agent registration card from the Board.

5. A person may submit a new petition to the Board not earlier than 2 years after the final determination of the initial petition submitted to the Board.

6. The Board may impose a fee of up to $50 upon the person to fund the administrative costs in complying with the provisions of this section. The Board may waive such fees or allow such fees to be covered by funds from a scholarship or grant.

7. The Board may post on its Internet website:

(a) The requirements to obtain a license and a cannabis establishment agent registration card from the Board; and

(b) A list of crimes, if any, that would disqualify a person from obtaining a license or a cannabis establishment agent registration card from the Board.

8. The Board may request the criminal history record of a person who petitions the Board for a determination pursuant to subsection 1. To the extent consistent with federal law, if the Board makes such a request of a person, the Board shall require the person to submit his or her criminal history record which includes a report from:

(a) The Central Repository for Nevada Records of Criminal History; and

(b) The Federal Bureau of Investigation.

9. A person who petitions the Board for a determination pursuant to subsection 1 shall not submit false or misleading information to the Board.

10. The Board shall, on or before the 20th day of January, April, July and October, submit to the Director of the Legislative Counsel Bureau in an electronic format prescribed by the Director, a report that includes:

(a) The number of petitions submitted to the Board pursuant to subsection 1;

(b) The number of determinations of disqualification made by the Board pursuant to subsection 1;

(d) Any other information that is requested by the Director or which the Board determines would be helpful.

11. The Director shall transmit a compilation of the information received pursuant to subsection 10 to the Legislative Commission quarterly, unless otherwise directed by the Commission.

(Added to NRS by 2019, 2925)—(Substituted in revision for NRS 453A.367)

1. The Board shall develop and implement a process by which a person who has been convicted of an excluded felony offense may submit to the Board a petition for an exemption from the provisions of:

(a) Paragraph (b) of subsection 3 of NRS 678B.210.

(b) Paragraph (b) of subsection 3 of NRS 678B.250.

2. The Board shall, in accordance with procedures established by the Board by regulation, review and evaluate each petition submitted pursuant to subsection 1 and grant or deny the exemption. The Board shall provide written notice to the petitioner of its decision to grant or deny the exemption.

3. The Board may grant an exemption pursuant to this section only if the Board determines that granting the exemption would not:

(a) Pose a threat to the public health or safety; or

(b) Negatively impact the cannabis industry in this State.

4. The Board may impose any conditions and limitations on the granting of an exemption pursuant to this section as the Board determines necessary to preserve the public health and safety or mitigate the impact of the granting of the exemption on the cannabis industry in this State. Such conditions and limitations may include, without limitation, conditions and limitations on the conduct of the petitioner in the cannabis industry in this State and the cannabis-related activities in which the petitioner is authorized to engage.

5. The Board shall adopt regulations to carry out the provisions of this section.

(Added to NRS by 2023, 2558)

NRS 678B.635 Database of information relating to testing conducted on cannabis and cannabis products; maintenance of database by Board; regulations; biennial report of Board.

1. The Board shall develop, implement and maintain an electronic database whereby the public may obtain information relating to testing conducted on cannabis and cannabis products by cannabis independent testing laboratories which has been collected through computer software used for the seed-to-sale tracking of cannabis and cannabis products. Such a database must:

(a) Contain the final results of all testing performed on cannabis or a cannabis product by a cannabis independent testing laboratory which have been collected through computer software used for the seed-to-sale tracking of cannabis and cannabis products;

(b) Be electronically secure and accessible to the public; and

2. The Board shall adopt regulations as it determines are necessary for the administration of the database required by subsection 1. Such regulations must ensure that:

(a) The information required to be contained in the database pursuant to paragraph (a) of subsection 1 is uploaded to the database and made available to the public in a timely manner after it has been collected through computer software used for the seed-to-sale tracking of cannabis and cannabis products; and

(b) The information contained in the database is presented in a format that is easily accessible to the public.

3. The Board shall, on or before January 1 of each odd-numbered year, submit a report to the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature which details the amount of data uploaded to the database required by subsection 1 and the statistical relevance of such data as it pertains to cannabis independent testing laboratories in this State.

(Added to NRS by 2021, 1883)

NRS 678B.640 Regulations of Department of Taxation regarding fair market value at wholesale of cannabis.

1. The Department of Taxation shall adopt regulations to establish procedures to determine the fair market value at wholesale of cannabis. The regulations shall:

(a) Provide that the fair market value of cannabis:

(1) Will be calculated and published by the Department on a quarterly basis not more than 30 days after the end of each calendar quarter; and

(2) Is the median sales price for wholesale sales between cannabis cultivation facilities and cannabis establishments that are not affiliates, per pound or each, during the period specified in subparagraph (1).

(b) Prescribe any information required by the Department to determine the fair market value at wholesale of cannabis.

2. The Board shall ensure that any computer software used for the seed-to-sale tracking of cannabis adopted by the Board includes a method to denote transfers of cannabis between affiliates.

3. The Board shall furnish the Department with such information as the Department determines to be necessary to adopt the regulations required by this section.

4. As used in this section, “affiliate” has the meaning ascribed to it in NRS 372A.290.

(Added to NRS by 2019, 3811; A 2023, 2753)

1. The Board may adopt regulations setting forth circumstances under which a person is authorized to consume cannabis or cannabis products in a public place.

2. Nothing in this section shall be construed as prohibiting a local government from adopting and enforcing an ordinance or rule governing the consumption of cannabis or cannabis products in a public place in the jurisdiction of the local government which is more restrictive than the regulations adopted by the Board pursuant to subsection 1.

(Added to NRS by 2021, 2360)

NRS 678B.647 Regulations regarding charging and collecting of costs incurred in connection with certain investigations; grounds for disciplinary action.

1. The Board shall adopt regulations governing the charging and collecting of costs incurred in connection with a specified investigation pursuant to subsection 5 of NRS 678B.390. The regulations must:

(a) Require the Board, before the commencement of the investigation, to provide a licensee or an applicant an estimate of the anticipated costs of the investigation;

(b) Require the Board to provide to a licensee or an applicant an itemized list of the costs incurred in the investigation and set forth timelines for the provision of such an itemized list;

(c) Establish procedures by which a licensee or an applicant may request from the Board documentation prepared by any agent of the Board conducting the investigation relating to the costs of the investigation; and

(d) Establish a process by which a licensee or an applicant may appeal to the Board and request a reduction of the total amount charged for the investigation if the total amount charged exceeds the estimate of the anticipated costs provided to the licensee or applicant by 25 percent or more.

2. Failure of a licensee or an applicant to pay the costs charged by the Board pursuant to subsection 5 of NRS 678B.390 when due is grounds for disciplinary action, except that the Board may not refuse to issue or renew a license or deny a request for a transfer of interest, approval or waiver for the failure to pay such costs.

(Added to NRS by 2023, 2717)

NRS 678B.650 Regulations. The Board shall adopt such regulations as it determines to be necessary or advisable to carry out the provisions of this chapter. Such regulations are in addition to any requirements set forth in statute and must, without limitation:

1. Prescribe the form and any additional required content of applications for licenses or registration cards issued pursuant to this chapter;

2. Establish procedures for the suspension or revocation of a license or registration card or other disciplinary action to be taken against a licensee or registrant;

3. Set forth rules pertaining to the safe and healthful operation of cannabis establishments, including, without limitation:

(a) The manner of protecting against diversion and theft without imposing an undue burden on cannabis establishments or compromising the confidentiality of consumers and holders of registry identification cards and letters of approval, as those terms are defined in NRS 678C.080 and 678C.070, respectively;

(b) Minimum requirements for the oversight of cannabis establishments;

(d) Provisions for the security of cannabis establishments, including without limitation, requirements for the protection by a fully operational security alarm system of each cannabis establishment; and

(e) Procedures pursuant to which cannabis establishments must use the services of cannabis independent testing laboratories to ensure that any cannabis or cannabis product or commodity or product made from hemp, as defined in NRS 557.160, sold by a cannabis sales facility to an end user is tested for content, quality and potency in accordance with standards established by the Board;

4. Establish circumstances and procedures pursuant to which the maximum fees set forth in NRS 678B.390 may be reduced over time to ensure that the fees imposed pursuant to NRS 678B.390 are, insofar as may be practicable, revenue neutral;

5. Establish different categories of cannabis establishment agent registration cards, including, without limitation, criteria for issuance of a cannabis establishment agent registration card for a cannabis executive and a cannabis establishment agent registration card for a cannabis receiver and criteria for training and certification, for each of the different types of cannabis establishments at which such an agent may be employed or volunteer or provide labor as a cannabis establishment agent;

6. As far as possible while maintaining accountability, protect the identity and personal identifying information of each person who receives, facilitates or delivers services in accordance with this chapter;

7. Establish procedures and requirements to enable a dual licensee to operate a medical cannabis establishment and an adult-use cannabis establishment at the same location;

8. Determine whether any provision of this chapter or chapter 678C or 678D of NRS would make the operation of a cannabis establishment by a dual licensee unreasonably impracticable;

9. Allow for any record relating to the delivery of cannabis or cannabis products that is required to be kept by a cannabis establishment to be created and maintained in an electronic format;

10. Prescribe the manner in which the Board will determine whether a person who holds an adult-use cannabis establishment license is ineligible to hold additional licenses pursuant to NRS 678B.325 and 678B.328;

11. Set forth rules pertaining to the safe and healthful operation of cannabis consumption lounges, including, without limitation:

(a) Standards for the air quality in a cannabis consumption lounge;

(b) Procedures and requirements for the collection and disposal of cannabis and cannabis products which are left at a cannabis consumption lounge; and

(c) Requirements for the training of employees of a cannabis consumption lounge in the sale and safe consumption of single-use cannabis products and ready-to-consume cannabis products; and

12. Address such other matters as the Board deems necessary to carry out the provisions of this title.

(Added to NRS by 2019, 3811; A 2021, 746, 2151, 2372)