NRS: CHAPTER 678A - ADMINISTRATION OF LAWS RELATING TO CANNABIS

[Rev. 6/29/2024 4:56:20 PM--2023]

TITLE 56 - REGULATION OF CANNABIS

CHAPTER 678A - ADMINISTRATION OF LAWS RELATING TO CANNABIS

GENERAL PROVISIONS

NRS 678A.005 Legislative findings and declarations.

NRS 678A.010 Definitions.

NRS 678A.020 “Administer” defined.

NRS 678A.025 “Adult-use cannabis cultivation facility” defined.

NRS 678A.030 “Adult-use cannabis distributor” defined.

NRS 678A.035 “Adult-use cannabis establishment” defined.

NRS 678A.040 “Adult-use cannabis establishment license” defined.

NRS 678A.045 “Adult-use cannabis independent testing laboratory” defined.

NRS 678A.050 “Adult-use cannabis-infused product” defined.

NRS 678A.055 “Adult-use cannabis product” defined.

NRS 678A.060 “Adult-use cannabis production facility” defined.

NRS 678A.065 “Adult-use cannabis retail store” defined.

NRS 678A.070 “Adult-use edible cannabis product” defined.

NRS 678A.075 “Adult use of cannabis” defined.

NRS 678A.080 “Board” defined.

NRS 678A.082 “Board member” defined.

NRS 678A.085 “Cannabis” defined.

NRS 678A.087 “Cannabis consumption lounge” defined.

NRS 678A.090 “Cannabis cultivation facility” defined.

NRS 678A.095 “Cannabis establishment” defined.

NRS 678A.100 “Cannabis establishment agent” defined.

NRS 678A.105 “Cannabis establishment agent registration card” defined.

NRS 678A.110 “Cannabis establishment agent registration card for a cannabis executive” defined.

NRS 678A.112 “Cannabis establishment agent registration card for a cannabis receiver” defined.

NRS 678A.115 “Cannabis independent testing laboratory” defined.

NRS 678A.120 “Cannabis product” defined.

NRS 678A.125 “Cannabis production facility” defined.

NRS 678A.130 “Cannabis sales facility” defined.

NRS 678A.135 “Commission” defined.

NRS 678A.140 “Deliver” or “delivery” defined.

NRS 678A.145 “Dual licensee” defined.

NRS 678A.150 “Electronic verification system” defined.

NRS 678A.155 “Executive Director” defined.

NRS 678A.157 “Independent cannabis consumption lounge” defined.

NRS 678A.160 “License” defined.

NRS 678A.165 “Licensee” defined.

NRS 678A.170 “Medical cannabis cultivation facility” defined.

NRS 678A.175 “Medical cannabis dispensary” defined.

NRS 678A.180 “Medical cannabis establishment” defined.

NRS 678A.185 “Medical cannabis establishment license” defined.

NRS 678A.190 “Medical cannabis independent testing laboratory” defined.

NRS 678A.195 “Medical cannabis-infused product” defined.

NRS 678A.200 “Medical cannabis product” defined.

NRS 678A.205 “Medical cannabis production facility” defined.

NRS 678A.210 “Medical edible cannabis product” defined.

NRS 678A.215 “Medical use of cannabis” defined.

NRS 678A.217 “Officer” defined.

NRS 678A.218 “Owner” defined.

NRS 678A.219 “Ownership interest” defined.

NRS 678A.220 “Paraphernalia” defined.

NRS 678A.225 “Production” defined.

NRS 678A.227 “Ready-to-consume cannabis product” defined.

NRS 678A.230 “Registrant” defined.

NRS 678A.235 “Registration card” defined.

NRS 678A.237 “Retail cannabis consumption lounge” defined.

NRS 678A.238 “Single-use cannabis product” defined.

NRS 678A.239 “Synthetic cannabinoid” defined.

NRS 678A.240 “THC” defined.

CANNABIS ADVISORY COMMISSION

NRS 678A.300 Creation; composition; terms; vacancies; salaries; meetings; staff.

NRS 678A.310 Duties; subcommittees.

CANNABIS COMPLIANCE BOARD

NRS 678A.350 Creation; number of members.

NRS 678A.360 Members: Qualifications and eligibility.

NRS 678A.370 Members: Appointment; terms; officers; removal; training.

NRS 678A.380 Members: Certain political activities and financial interests prohibited; oaths.

NRS 678A.390 Members: Salaries.

NRS 678A.400 Employment of consultants.

NRS 678A.410 Meetings; quorum.

NRS 678A.420 Executive Director: Appointment; duties; other employment prohibited; salary.

NRS 678A.430 Organization; administrative expenses; employees; plan concerning employees.

NRS 678A.440 Board: General powers.

NRS 678A.450 Board: Regulations.

NRS 678A.460 Regulations: Procedure for adoption, amendment and repeal. [Repealed.]

NRS 678A.470 Records of Board; confidentiality of certain information.

NRS 678A.480 Audits of licensees; standards for audits; annual report.

DISCIPLINARY ACTIONS

NRS 678A.500 Filing and review of complaints; authority of Executive Director to retain Attorney General to investigate complaints.

NRS 678A.510 Investigation of complaint by Attorney General; recommendation to Executive Director; action by Board.

NRS 678A.520 Contents and service of complaint; answer; effect of failure to answer or appear; notice of hearing.

NRS 678A.530 Hearings: Subpoenas; payment of fees, subsistence and transportation for witness.

NRS 678A.540 Hearings: Procedure; use of affidavit.

NRS 678A.550 Hearings: Members present; reporting of proceedings.

NRS 678A.560 Hearings: Limitations on communications. [Repealed.]

NRS 678A.570 Hearings: Amended or supplemental pleadings.

NRS 678A.580 Hearings: Contempt.

NRS 678A.590 Hearings: Written decision and order of Board; rehearings.

NRS 678A.600 Penalties; consideration of mitigating circumstances required in determining appropriate action.

NRS 678A.610 Judicial review.

NRS 678A.620 Judicial review: Record on review. [Repealed.]

NRS 678A.630 Judicial review: Additional evidence taken by Board; review confined to record; court may affirm, remand or reverse. [Repealed.]

NRS 678A.640 Judicial review: Appeal to appellate court; exclusive method of review for disciplinary hearings; certain actions not subject to judicial review. [Repealed.]

NRS 678A.645 Consent and settlement agreements: Conditions for entry; considerations for approval or modification; required disclosures by Board.

NRS 678A.647 Circumstances mitigating violation of title or regulations.

PENALTIES FOR UNLICENSED ACTIVITIES

NRS 678A.650 Civil penalties; action by district attorney or city attorney; deposit of civil penalties; injunctions.

_________

GENERAL PROVISIONS

NRS 678A.005 Legislative findings and declarations. The Legislature hereby finds, and declares to be the public policy of this State, that:

1. The cannabis industry is significant to the economy of the State of Nevada.

2. A regulated cannabis industry provides access to legal cannabis and cannabis products in a safe manner. Cannabis and cannabis products obtained from illegal sources are not tested, may be associated with violent crime and are often targeted at minors.

3. The continued growth and success of the cannabis industry is dependent upon public confidence and trust and an understanding that:

(a) Residents who suffer from chronic or debilitating medical conditions will be able to obtain medical cannabis safely and conveniently;

(b) Residents who choose to engage in the adult use of cannabis may also obtain adult-use cannabis in a safe and efficient manner;

(c) Cannabis establishments do not unduly impact the quality of life enjoyed by residents of the surrounding neighborhoods;

(d) Cannabis licenses and registration cards are issued in a fair and equitable manner with a commitment to the consideration of social equity;

(e) The holders of cannabis licenses and registration cards are representative of their communities;

(f) Nevada seeks to emulate other privileged industries that are licensed and strictly regulated insofar as those industries are similar to or the approaches used in those industries are compatible with the cannabis industry in this State; and

(g) A well regulated cannabis industry provides significant tax revenues to the State and runs contrary to the criminal and corruptive elements that exist in an unregulated and illegal market.

4. Public confidence and trust can only be maintained by strict but fair and equitable regulation of all persons, locations, practices, associations and activities related to the operation of cannabis establishments.

5. All cannabis establishments and cannabis establishment agents must be licensed, controlled and assisted to protect the public health, safety, morals, good order and general welfare of the inhabitants of the State, to foster the stability and success of the cannabis industry and to preserve the competitive economy and policies of free competition of the State of Nevada.

(Added to NRS by 2019, 3769; A 2023, 2527)

NRS 678A.010 Definitions. As used in this title, unless the context otherwise requires, the words and terms defined in NRS 678A.020 to 678A.240, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2019, 3770; A 2021, 2141, 2357, 3147; 2023, 3100)

NRS 678A.020 “Administer” defined. “Administer” has the meaning ascribed to it in NRS 453.021.

(Added to NRS by 2019, 3770)

NRS 678A.025 “Adult-use cannabis cultivation facility” defined. “Adult-use cannabis cultivation facility” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250; and

2. Acquires, possesses, cultivates, delivers, transfers, supplies or sells cannabis and related supplies to:

(a) Adult-use cannabis retail stores;

(b) Adult-use cannabis production facilities; or

(Added to NRS by 2019, 3770)

NRS 678A.030 “Adult-use cannabis distributor” defined. “Adult-use cannabis distributor” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250; and

2. Transports cannabis or adult-use cannabis products from an adult-use cannabis establishment to another adult-use cannabis establishment.

(Added to NRS by 2019, 3770)

NRS 678A.035 “Adult-use cannabis establishment” defined. “Adult-use cannabis establishment” means:

1. An adult-use cannabis independent testing laboratory;

2. An adult-use cannabis cultivation facility;

3. An adult-use cannabis production facility;

4. An adult-use cannabis retail store;

5. An adult-use cannabis distributor;

6. A retail cannabis consumption lounge; or

7. An independent cannabis consumption lounge.

(Added to NRS by 2019, 3770; A 2021, 2357)

NRS 678A.040 “Adult-use cannabis establishment license” defined. “Adult-use cannabis establishment license” means a license that is issued by the Board pursuant to NRS 678B.250 to authorize the operation of an adult-use cannabis establishment.

(Added to NRS by 2019, 3770)

NRS 678A.045 “Adult-use cannabis independent testing laboratory” defined. “Adult-use cannabis independent testing laboratory” means a facility described in NRS 678B.290 that:

1. Is licensed by the Board pursuant to NRS 678B.250; and

2. Tests:

(a) Cannabis intended for the adult use of cannabis.

(b) Adult-use cannabis products.

(Added to NRS by 2019, 3770)

NRS 678A.050 “Adult-use cannabis-infused product” defined.

1. “Adult-use cannabis-infused product” means a product intended for the adult use of cannabis that:

(a) Is infused with cannabis or an extract thereof; and

(b) Is intended for use or consumption by humans through means other than inhalation or oral ingestion.

2. The term includes, without limitation, topical products, ointments, oils and tinctures.

(Added to NRS by 2019, 3770)

NRS 678A.055 “Adult-use cannabis product” defined. “Adult-use cannabis product” means:

1. An adult-use edible cannabis product; or

2. An adult-use cannabis-infused product.

(Added to NRS by 2019, 3770)

NRS 678A.060 “Adult-use cannabis production facility” defined. “Adult-use cannabis production facility” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250; and

2. Acquires, possesses, manufactures, delivers, transfers, supplies or sells adult-use cannabis products to adult-use cannabis retail stores.

(Added to NRS by 2019, 3770)

NRS 678A.065 “Adult-use cannabis retail store” defined. “Adult-use cannabis retail store” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250; and

2. Acquires, possesses, delivers, transfers, supplies, sells or dispenses cannabis or related supplies to a consumer or to another adult-use cannabis retail store.

(Added to NRS by 2019, 3771)

NRS 678A.070 “Adult-use edible cannabis product” defined. “Adult-use edible cannabis product” means a product intended for the adult use of cannabis that:

1. Contains cannabis or an extract thereof;

2. Is intended for human consumption by oral ingestion; and

3. Is presented in the form of a foodstuff, extract, oil, tincture or other similar product.

(Added to NRS by 2019, 3771)

NRS 678A.075 “Adult use of cannabis” defined. “Adult use of cannabis” means:

1. The possession, delivery, production or use of cannabis;

2. The possession, delivery or use of paraphernalia used to administer cannabis; or

3. Any combination of the acts described in subsections 1 and 2,

Ê by a person 21 years of age or older.

(Added to NRS by 2019, 3771)

NRS 678A.080 “Board” defined. “Board” means the Cannabis Compliance Board created by NRS 678A.350.

(Added to NRS by 2019, 3771)

NRS 678A.082 “Board member” defined. “Board member” means a natural person who is proposed to sit on the board of a proposed cannabis establishment and who may or may not be an owner of the cannabis establishment.

(Added to NRS by 2023, 3100)

NRS 678A.085 “Cannabis” defined. “Cannabis” has the meaning ascribed to the term “marijuana” in NRS 453.096.

(Added to NRS by 2019, 3771)

NRS 678A.087 “Cannabis consumption lounge” defined. “Cannabis consumption lounge” means:

1. A retail cannabis consumption lounge; or

2. An independent cannabis consumption lounge.

(Added to NRS by 2021, 2356)

NRS 678A.090 “Cannabis cultivation facility” defined. “Cannabis cultivation facility” means:

1. A medical cannabis cultivation facility; or

2. An adult-use cannabis cultivation facility.

(Added to NRS by 2019, 3771)

NRS 678A.095 “Cannabis establishment” defined. “Cannabis establishment” means:

1. An adult-use cannabis establishment; or

2. A medical cannabis establishment.

(Added to NRS by 2019, 3771)

NRS 678A.100 “Cannabis establishment agent” defined. “Cannabis establishment agent” means an owner, officer, board member, employee or volunteer of a cannabis establishment, an independent contractor who provides labor relating to the cultivation or processing of cannabis or the production of usable cannabis or cannabis products for a cannabis establishment or an employee of such an independent contractor.

(Added to NRS by 2019, 3771)

NRS 678A.105 “Cannabis establishment agent registration card” defined. “Cannabis establishment agent registration card” means a registration card that is issued by the Board pursuant to NRS 678B.340 to authorize a person:

1. To be an owner, officer or board member of a cannabis establishment; or

2. To volunteer or work at or contract to provide labor for a cannabis establishment.

(Added to NRS by 2019, 3771)

NRS 678A.110 “Cannabis establishment agent registration card for a cannabis executive” defined. “Cannabis establishment agent registration card for a cannabis executive” means a registration card issued by the Board pursuant to NRS 678B.350.

(Added to NRS by 2019, 3771)

NRS 678A.112 “Cannabis establishment agent registration card for a cannabis receiver” defined. “Cannabis establishment agent registration card for a cannabis receiver” means a registration card issued by the Board pursuant to NRS 678B.355.

(Added to NRS by 2021, 2140)

NRS 678A.115 “Cannabis independent testing laboratory” defined. “Cannabis independent testing laboratory” means:

1. An adult-use cannabis independent testing laboratory; or

2. A medical cannabis independent testing laboratory.

(Added to NRS by 2019, 3771)

NRS 678A.120 “Cannabis product” defined. “Cannabis product” means:

1. An adult-use cannabis product; or

2. A medical cannabis product.

(Added to NRS by 2019, 3771)

NRS 678A.125 “Cannabis production facility” defined. “Cannabis production facility” means:

1. An adult-use cannabis production facility; or

2. A medical cannabis production facility.

(Added to NRS by 2019, 3772)

NRS 678A.130 “Cannabis sales facility” defined. “Cannabis sales facility” means:

1. An adult-use cannabis retail store; or

2. A medical cannabis dispensary.

(Added to NRS by 2019, 3772)

NRS 678A.135 “Commission” defined. “Commission” means the Cannabis Advisory Commission created by NRS 678A.300.

(Added to NRS by 2019, 3772)

NRS 678A.140 “Deliver” or “delivery” defined. “Deliver” or “delivery” has the meaning ascribed to it in NRS 453.051.

(Added to NRS by 2019, 3772)

NRS 678A.145 “Dual licensee” defined. “Dual licensee” means a person or group of persons who possess a current, valid medical cannabis establishment license and a current, valid adult-use cannabis establishment license of the same type.

(Added to NRS by 2019, 3772)

NRS 678A.150 “Electronic verification system” defined. “Electronic verification system” means an electronic database that:

1. Keeps track of data in real time; and

2. Is accessible by the Board and by the cannabis establishment.

(Added to NRS by 2019, 3772)

NRS 678A.155 “Executive Director” defined. “Executive Director” means the Executive Director of the Cannabis Compliance Board appointed pursuant to NRS 678A.420.

(Added to NRS by 2019, 3772)

NRS 678A.157 “Independent cannabis consumption lounge” defined. “Independent cannabis consumption lounge” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250;

2. Is not attached or immediately adjacent to an adult-use cannabis retail store; and

3. Allows single-use cannabis products or ready-to-consume cannabis products to be consumed on the premises of the business by persons 21 years of age or older.

(Added to NRS by 2021, 2356)

NRS 678A.160 “License” defined. “License” means:

1. An adult-use cannabis establishment license; or

2. A medical cannabis establishment license.

(Added to NRS by 2019, 3772)

NRS 678A.165 “Licensee” defined. “Licensee” means the holder of a license.

(Added to NRS by 2019, 3772)

NRS 678A.170 “Medical cannabis cultivation facility” defined. “Medical cannabis cultivation facility” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.210; and

2. Acquires, possesses, cultivates, delivers, transfers, transports, supplies or sells cannabis and related supplies to:

(a) Medical cannabis dispensaries;

(b) Medical cannabis production facilities; or

(Added to NRS by 2019, 3772)

NRS 678A.175 “Medical cannabis dispensary” defined. “Medical cannabis dispensary” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.210; and

2. Acquires, possesses, delivers, transfers, transports, supplies, sells or dispenses cannabis or related supplies and educational materials to the holder of a valid registry identification card, as defined in NRS 678C.080, or to another medical cannabis dispensary.

(Added to NRS by 2019, 3772)

NRS 678A.180 “Medical cannabis establishment” defined. “Medical cannabis establishment” means:

1. A medical cannabis independent testing laboratory;

2. A medical cannabis cultivation facility;

3. A medical cannabis production facility; or

4. A medical cannabis dispensary.

(Added to NRS by 2019, 3772)

NRS 678A.185 “Medical cannabis establishment license” defined. “Medical cannabis establishment license” means a license that is issued by the Board pursuant to NRS 678B.210 to authorize the operation of a medical cannabis establishment.

(Added to NRS by 2019, 3772)

NRS 678A.190 “Medical cannabis independent testing laboratory” defined. “Medical cannabis independent testing laboratory” means a facility described in NRS 678B.290 that:

1. Is licensed by the Board pursuant to NRS 678B.210; and

2. Tests:

(a) Cannabis intended for the medical use of cannabis.

(b) Medical cannabis products.

(Added to NRS by 2019, 3772)

NRS 678A.195 “Medical cannabis-infused product” defined.

1. “Medical cannabis-infused product” means a product intended for the medical use of cannabis that:

(a) Is infused with cannabis or an extract thereof; and

(b) Is intended for use or consumption by humans through means other than inhalation or oral ingestion.

2. The term includes, without limitation, topical products, ointments, oils and tinctures.

(Added to NRS by 2019, 3773)

NRS 678A.200 “Medical cannabis product” defined. “Medical cannabis product” means:

1. A medical edible-cannabis product; or

2. A medical cannabis-infused product.

(Added to NRS by 2019, 3773)

NRS 678A.205 “Medical cannabis production facility” defined. “Medical cannabis production facility” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.210; and

2. Acquires, possesses, manufactures, delivers, transfers, transports, supplies or sells medical cannabis products to medical cannabis dispensaries.

(Added to NRS by 2019, 3773)

NRS 678A.210 “Medical edible cannabis product” defined. “Medical edible cannabis product” means a product intended for the medical use of cannabis that:

1. Contains cannabis or an extract thereof;

2. Is intended for human consumption by oral ingestion; and

3. Is presented in the form of a foodstuff, extract, oil, tincture or other similar product.

(Added to NRS by 2019, 3773)

NRS 678A.215 “Medical use of cannabis” defined. “Medical use of cannabis” means:

1. The possession, delivery, production or use of cannabis;

2. The possession, delivery or use of paraphernalia used to administer cannabis; or

3. Any combination of the acts described in subsections 1 and 2,

Ê as necessary for the exclusive benefit of a person to mitigate the symptoms or effects of his or her chronic or debilitating medical condition, as defined in NRS 678C.030.

(Added to NRS by 2019, 3773)

NRS 678A.217 “Officer” defined. “Officer” means a natural person who:

1. Is proposed to hold the title of, or be designated by a proposed cannabis establishment as, a president, vice president, secretary, treasurer, manager, chief executive officer, chief operating officer or chief financial officer of the cannabis establishment; and

2. May or may not be an owner of the proposed cannabis establishment.

(Added to NRS by 2023, 3100)

NRS 678A.218 “Owner” defined. “Owner” means a natural person who is the holder of any ownership interest in a proposed cannabis establishment.

(Added to NRS by 2023, 3100)

NRS 678A.219 “Ownership interest” defined. “Ownership interest” has the meaning ascribed to “owner’s interest” in NRS 92A.080.

(Added to NRS by 2023, 3100)

NRS 678A.220 “Paraphernalia” defined. “Paraphernalia” means accessories, devices and other equipment that is necessary or useful for a person to engage in the medical use of cannabis or the adult use of cannabis.

(Added to NRS by 2019, 3773)

NRS 678A.225 “Production” defined. “Production” has the meaning ascribed to it in NRS 453.131.

(Added to NRS by 2019, 3773)

NRS 678A.227 “Ready-to-consume cannabis product” defined. “Ready-to-consume cannabis product” means an adult-use edible cannabis product that is:

1. Prepared on the premises of a cannabis consumption lounge;

2. Presented in the form of a foodstuff or beverage;

3. Sold in a heated or unheated state; and

4. Intended for immediate consumption.

(Added to NRS by 2021, 2356)

NRS 678A.230 “Registrant” defined. “Registrant” means the holder of a registration card.

(Added to NRS by 2019, 3773)

NRS 678A.235 “Registration card” defined. “Registration card” means:

1. A cannabis establishment agent registration card;

2. A cannabis establishment agent registration card for a cannabis executive; or

3. A cannabis establishment agent registration card for a cannabis receiver.

(Added to NRS by 2019, 3773; A 2021, 2141)

NRS 678A.237 “Retail cannabis consumption lounge” defined. “Retail cannabis consumption lounge” means a business that:

1. Is licensed by the Board pursuant to NRS 678B.250;

2. Is attached or immediately adjacent to an adult-use cannabis retail store; and

3. Allows single-use cannabis products or ready-to-consume cannabis products to be consumed on the premises of the business by persons 21 years of age or older.

(Added to NRS by 2021, 2356)

NRS 678A.238 “Single-use cannabis product” defined. “Single-use cannabis product” means a type of cannabis or adult-use cannabis product, other than a ready-to-consume cannabis product, that the Board has determined to be appropriate for consumption in a cannabis consumption lounge pursuant to NRS 678D.480.

(Added to NRS by 2021, 2357)

NRS 678A.239 “Synthetic cannabinoid” defined. “Synthetic cannabinoid” means a cannabinoid that is:

1. Produced artificially, whether from chemicals or from recombinant biological agents, including, without limitation, yeast and algae; and

2. Is not derived from a plant of the genus Cannabis, including, without limitation, biosynthetic cannabinoids.

(Added to NRS by 2021, 3147)

NRS 678A.240 “THC” defined. “THC” has the meaning ascribed to it in NRS 453.139.

(Added to NRS by 2019, 3773)

CANNABIS ADVISORY COMMISSION

NRS 678A.300 Creation; composition; terms; vacancies; salaries; meetings; staff.

1. The Cannabis Advisory Commission is hereby created for the purposes of studying issues related to, and making recommendations to the Cannabis Compliance Board regarding the regulation of, cannabis and any activity related to cannabis. The Commission consists of:

(a) The Executive Director of the Board, who shall serve as Chair of the Commission;

(b) The Director of the Department of Public Safety;

(d) The Executive Director of the Department of Taxation;

(e) Eight members appointed by the Governor as follows:

(1) One member who possesses knowledge, skill and experience in the cultivation of cannabis;

(2) One member who possesses knowledge, skill and experience in the business of retailing cannabis;

(3) One member who possesses knowledge, skill and experience in laboratory sciences and toxicology;

(4) One member who possesses knowledge, skill and experience in the manufacturing of cannabis products;

(5) One member who:

(I) Is a physician licensed pursuant to chapter 630 or 633 of NRS and has knowledge, skill and experience in the medical use of cannabis through clinical practice or medical research; or

(II) Has knowledge, skill and experience in public health or food safety;

(6) One member who is a representative of an organization that advocates on behalf of patients who engage in the medical use of cannabis;

(7) One member who possesses knowledge, skill and experience in the field of criminal justice reform dealing specifically with the mitigation of the disproportionate impact of drug prosecutions on communities of color; and

(8) One member who is an attorney licensed to practice in this State and experienced in providing legal services to cannabis establishments or patients who engage in the medical use of cannabis in this State or another jurisdiction.

2. Each appointed member of the Commission serves a term of 2 years.

3. An appointed member of the Commission:

(a) May be reappointed.

(b) Shall not serve more than 8 years.

4. Any vacancy occurring in the appointed membership of the Commission must be filled by the Governor not later than 90 days after the vacancy. A member appointed to fill a vacancy shall serve as a member of the Commission for the remainder of the original term of appointment.

5. Each member of the Commission is entitled to receive a salary of not more than $80, as fixed by the Cannabis Compliance Board, for each day or portion thereof during which the member is in attendance at a regularly called meeting of the Commission.

6. The members of the Commission may meet throughout each year at the times and places specified by a call of the Chair or a majority of its members. A majority of the members of the Commission constitutes a quorum, and a quorum may exercise all the powers conferred on the Commission.

7. The Cannabis Compliance Board shall provide the Commission with such staff as is necessary to carry out the duties of the Commission.

(Added to NRS by 2019, 3773)

NRS 678A.310 Duties; subcommittees.

1. The Commission shall:

(a) Consider all matters submitted to it by the Board, the Governor or the Legislature;

(b) On its own initiative, recommend to the Board any guidelines, rules or regulations or any changes to existing guidelines, rules or regulations that the Commission considers important or necessary for the review and consideration of the Board;

(d) Study the distribution of licenses, including, without limitation, the number of licenses authorized to be issued to cannabis establishments within the territory of each local government in this State, and recommend to the Board any statutory changes that the Commission determines to be appropriate; and

(e) Study the feasibility of the use of emerging technologies, including, without limitation, blockchain and systems that use a single source of truth, as a means of collecting data or efficiently and effectively handling transactions electronically to reduce or eliminate the handling of cash.

2. The Chair of the Commission may appoint:

(a) A subcommittee on public health to review and make recommendations on matters related to the labeling, packaging, marketing and advertising of cannabis and cannabis products, the potency of cannabis and cannabis products and any other issue related to the effect of cannabis and cannabis products on public health. Such recommendations may include, without limitation, maximum limits for individual servings of cannabis and cannabis products.

(b) A subcommittee on public safety and community mitigation to review and make recommendations on matters relating to the effects of cannabis on law enforcement, property, businesses and consumers.

(c) A subcommittee on the cannabis industry to review and make recommendations on matters relating to the stability of the market for and the cultivation, processing, manufacturing, transportation, distribution and seed-to-sale tracking of cannabis and cannabis products.

(d) A subcommittee on market participation to review and make recommendations on matters relating to the participation of women-owned businesses, minority-owned businesses, veteran-owned businesses, LGBTQ-owned businesses and local agriculture in the cannabis industry in this State.

(e) A subcommittee on the prevention of unlicensed cannabis sales in this State to:

(1) Review the legal authority of state agencies and local governments to curtail the unlicensed sale of cannabis and cannabis products, including, without limitation, by use of Internet websites, sales centers or other buildings to evade the laws of this State relating to the licensing of cannabis establishments;

(2) Review the resources available to state agencies and local governments to prevent the unlicensed sale of cannabis and cannabis products;

(3) Examine gaps in the enforcement of the laws of this State, including, without limitation, the importation of cannabis and cannabis products from other states;

(4) Identify the extent of the unlicensed sale of cannabis and cannabis products in this State, including, without limitation, the number of operations engaging in the unlicensed sale of cannabis and cannabis products and the most common methods used to engage in such sales;

(5) Examine any other issues relating to the unlicensed sale of cannabis or cannabis products that the Commission determines to be appropriate; and

(6) Make recommendations for efficiently and effectively closing any gaps in legal authority or enforcement identified by the subcommittee.

(f) A subcommittee on local governments to review and make recommendations on matters relating to the role of local governments in the regulation of the cannabis industry. In addition to any member of the Commission appointed to a subcommittee created pursuant to this paragraph, the Chair of the Commission shall appoint to the subcommittee:

(1) One member recommended by the governing body of the Nevada League of Cities; and

(2) One member recommended by the Nevada Association of Counties.

(g) A subcommittee on testing and laboratories to review and make recommendations on matters relating to the testing of cannabis and cannabis products and the efficient and effective operations of independent testing laboratories. In addition to any member of the Commission appointed to a subcommittee created pursuant to this paragraph, the Chair of the Commission shall appoint to the subcommittee one member who serves on an advisory committee for laboratories established by the Board to provide recommendations regarding the testing of cannabis.

(h) Any other subcommittee the Chair deems necessary to expedite the work of the Board.

3. If the Chair appoints a subcommittee pursuant to subsection 2, the subcommittee must:

(a) Contain not more than five members, who serve at the pleasure of the Chair; and

(b) Be chaired by the person selected as chair of the subcommittee by the Chair.

4. As used in this section:

(a) “LGBTQ” means lesbian, gay, bisexual, transgender, queer or intersex or of any other nonheterosexual or noncisgender orientation or gender identity or expression.

(b) “LGBTQ-owned business” means a business that:

(1) Is owned by a natural person who identifies as LGBTQ; or

(2) Has at least 51 percent of its ownership interest held by one or more natural persons who identify as LGBTQ.

(Added to NRS by 2019, 3774; A 2021, 3176)

CANNABIS COMPLIANCE BOARD

NRS 678A.350 Creation; number of members. The Cannabis Compliance Board, consisting of five members appointed by the Governor, is hereby created.

(Added to NRS by 2019, 3776)

NRS 678A.360 Members: Qualifications and eligibility.

1. Each member of the Board must be a resident of the State of Nevada.

2. No member of the Legislature, no person holding any elective office in the State Government, nor any officer or official of any political party is eligible for appointment to the Board.

3. Not more than three of the five members of the Board may be of the same political party.

4. It is the intention of the Legislature that the Board be composed of the most qualified persons available.

5. One member of the Board must possess the qualifications of an expert in the fields of corporate finance and auditing, inventory, general finance or economics and be selected with special reference to his or her knowledge, skill and experience in representing businesses engaging in manufacturing, distribution, retail or agriculture.

6. One member of the Board must be selected with special reference to his or her training and experience in the fields of investigation or law enforcement, including, without limitation, in the area of illegal or unlicensed cannabis activities.

7. One member of the Board must be an attorney licensed to practice in this State and selected with special reference to his or her knowledge, skill and experience in representing businesses in licensing matters or regulatory compliance.

8. One member of the Board must be selected with special reference to his or her knowledge, skill and experience in the cannabis industry. The person selected pursuant to this subsection is not subject to paragraph (b) of subsection 1 of NRS 281A.410 or subsection 3 of NRS 281A.550.

9. One member of the Board must be a physician licensed pursuant to chapter 630 or 633 of NRS and have knowledge, skill and experience in the area of public health or be a psychologist, clinical professional counselor, alcohol and drug counselor, social worker or a person with expertise in laboratory sciences and must be selected with special reference to his or her knowledge, skill and experience in the area of cannabis.

10. In addition to any other requirements imposed by this section, the member who is designated as Chair of the Board must have at least 5 years of leadership experience in his or her field.

(Added to NRS by 2019, 3776; A 2023, 2528)

NRS 678A.370 Members: Appointment; terms; officers; removal; training.

1. The Governor shall appoint the members of the Board and designate one member to serve as Chair, who shall preside over all official activities of the Board, and one member as Vice Chair, who shall perform duties established by the Board.

2. The term of the Chair is 2 years. Upon expiration of the term of the Chair, if the Governor has not designated the member to serve as Chair for another term or designated another member to serve as Chair, the Vice Chair becomes the Chair.

3. In appointing members to the Board, the Governor shall consider whether the members appointed to the Board reflect the ethnic and geographical diversity of this State.

4. Each member of the Board serves a term of 4 years.

5. The Governor may remove any member for neglect of duty, misfeasance, malfeasance or nonfeasance in office. Removal may be made after:

(a) The member has been served with a copy of the charges against the member; and

(b) A public hearing before the Governor is held upon the charges, if requested by the member charged.

Ê The request for a public hearing must be made within 10 days after service upon such member of the charges. If a hearing is not requested, a member is removed effective 10 days after service of charges upon the member. A record of the proceedings at the public hearing must be filed with the Secretary of State.

6. Before entering upon the duties of office, each person appointed to the Board must receive training that is the same or substantially similar to any training that is required by the Board by regulation to be completed by a cannabis establishment agent before he or she may be employed by, volunteer at or provide labor to a cannabis establishment.

(Added to NRS by 2019, 3777; A 2023, 2529)

NRS 678A.380 Members: Certain political activities and financial interests prohibited; oaths.

1. A member of the Board must not be:

(a) A member of any political convention.

(b) A member of any committee of any political party, or engage in any party activities.

2. A member shall not be pecuniarily interested in any business or organization holding a license under this title or doing business with any person or organization holding a license or registration card under this title.

3. Before entering upon the duties of office, each member shall subscribe to the constitutional oath of office and, in addition, swear that the member is not pecuniarily interested in any person, business or organization holding a license or registration card under this title or doing business with any such person, business or organization. The oath of office must be filed in the Office of the Secretary of State.

(Added to NRS by 2019, 3777)

NRS 678A.390 Members: Salaries.

1. The Chair of the Board is entitled to receive an annual salary of $27,500.

2. Each of the other members of the Board is entitled to receive an annual salary of $20,000.

(Added to NRS by 2019, 3777)

NRS 678A.400 Employment of consultants.

1. The Board may employ the services of such persons as it considers necessary for the purposes of consultation or investigation.

2. The Board may consult with the State Department of Agriculture on any matters relating to hemp, as defined in NRS 557.160.

(Added to NRS by 2019, 3777)

NRS 678A.410 Meetings; quorum.

1. The Board may hold regular and special meetings at such times and places as it may deem convenient, and it may hold at least one regular meeting each month.

2. All meetings of the Board are open to the public and must be conducted in accordance with the provisions of chapter 241 of NRS.

3. A majority of the members constitutes a quorum of the Board, and a majority of members present at any meeting determines the action of the Board.

(Added to NRS by 2019, 3778)

NRS 678A.420 Executive Director: Appointment; duties; other employment prohibited; salary.

1. The position of Executive Director of the Cannabis Compliance Board is hereby created.

2. The Executive Director:

(a) Is appointed by the Governor, with consideration given to the skill or experience of the appointee in regulated industries, and may be removed by the Governor;

(b) Is responsible for the conduct of the administrative matters of the Board; and

(c) Shall, except as otherwise provided in NRS 284.143, devote his or her entire time and attention to the business of the office of Executive Director and shall not pursue any other business or occupation or hold any other office for profit.

3. The Executive Director is entitled to an annual salary in the amount specified by the Board within the limits of legislative appropriations or authorizations.

(Added to NRS by 2019, 3778; A 2023, 2529)

NRS 678A.430 Organization; administrative expenses; employees; plan concerning employees.

1. The Executive Director may, subject to the approval of the Board:

(a) Establish, and from time to time alter, such a plan of organization as he or she may deem expedient.

(b) Acquire such furnishings, equipment, supplies, stationery, books, motor vehicles and other things as he or she may deem necessary or desirable in carrying out his or her functions and the functions of the Board.

2. Except as otherwise provided in this title, all costs of administration incurred by the Board must be paid out on claims from the State General Fund in the same manner as other claims against the State are paid.

3. The Executive Director shall organize the work of the Board in such a way as to secure maximum efficiency in the conduct of the Board and make possible a definite placing of responsibility. To this end, the Executive Director may establish such organizational units within the Board as he or she deems necessary.

4. The Executive Director may employ such clerical or expert assistance as may be required.

5. Persons employed by the Board may be assigned to stations, offices or locations selected by the Executive Director both within this State and outside this State where, in the judgment of the Executive Director, it is necessary to maintain personnel to protect, investigate and ensure the safe and lawful conduct of the cannabis industry in this State.

6. Any person assigned to a station, office or location as provided in subsection 5 shall be entitled to receive a per diem allowance only when the business of the Board takes the person away from the particular station, office or location to which he or she is assigned.

7. The members of the Board and the Executive Director are exempt from the provisions of chapter 284 of NRS. The Executive Director is entitled to such leaves of absence as the Board prescribes, but such leaves must not be of lesser duration than those provided for other state employees pursuant to chapter 284 of NRS. Employees described in NRS 284.148 are subject to the limitations specified in that section.

(Added to NRS by 2019, 3778)

NRS 678A.440 Board: General powers. In addition to any other powers granted by this title, the Board has the power to:

1. Enter into interlocal agreements pursuant to NRS 277.080 to 277.180, inclusive.

2. Establish and amend a plan of organization for the Board, including, without limitation, organizations of divisions or sections with leaders for such divisions or sections.

3. Appear on its own behalf before governmental agencies of the State or any of its political subdivisions.

4. Apply for and accept any gift, donation, bequest, grant or other source of money to carry out the provisions of this title.

5. Execute all instruments necessary or convenient for carrying out the provisions of this title.

6. Prepare, publish and distribute such studies, reports, bulletins and other materials as the Board deems appropriate.

7. Refer cases to the Attorney General for criminal prosecution.

8. Maintain an official Internet website for the Board.

9. Monitor federal activity regarding cannabis and report its findings to the Legislature.

10. Employ the services of such persons the Board considers necessary for the purposes of hearing disciplinary proceedings.

11. In accordance with NRS 179.1156 to 179.121, inclusive, seize and destroy cannabis and cannabis products involved in unlicensed cannabis activities.

12. Commit resources and take action to address unlicensed cannabis activities, including, without limitation:

(a) Investigating and referring matters involving unlicensed cannabis activities to the appropriate state or local law enforcement agency, including, without limitation, the Investigation Division of the Department of Public Safety and the Attorney General, for further investigation and possible criminal prosecution;

(b) Educating the public through various types of media and communication and other forms of public outreach on the dangers and illegality of unlicensed cannabis activities and the importance of having cannabis establishments which are licensed and regulated;

(c) Creating a system through which the public, licensees and registrants may file confidential reports of unlicensed cannabis activities; and

(d) Imposing penalties against persons who engage in unlicensed cannabis activities in accordance with the regulations adopted by the Board pursuant to NRS 678A.450.

(Added to NRS by 2019, 3779; A 2021, 3147; 2023, 2530)

NRS 678A.450 Board: Regulations.

1. The Board may adopt regulations necessary or convenient to carry out the provisions of this title. Such regulations may include, without limitation:

(a) Financial requirements for licensees.

(b) Establishing such education, outreach, investigative and enforcement mechanisms as the Board deems necessary to ensure the compliance of a licensee or registrant with the provisions of this title. Such mechanisms must include, without limitation:

(1) A system to educate, train and certify employees of the Board which:

(I) Each employee must complete before he or she may engage in inspections, investigations or audits; and

(II) At a minimum, includes training that is the same or substantially similar to any training that is required by the Board by regulation to be completed by a cannabis establishment agent before he or she may be employed by, volunteer at or provide labor to a cannabis establishment;

(2) A system to educate and advise licensees and registrants on compliance with the provisions of this title which may serve as an alternative to disciplinary action; and

(3) Establishing specific grounds for disciplinary action against a licensee or registrant who knowingly violates the law or engages in grossly negligent, unlawful or criminal conduct or an act or omission that poses an imminent threat to the health or safety of the public.

(c) Requirements for licensees or registrants relating to the cultivation, processing, manufacture, transport, distribution, testing, study, advertising and sale of cannabis and cannabis products.

(d) Policies and procedures to ensure that the cannabis industry in this State is economically competitive, inclusive of racial minorities, women and persons and communities that have been adversely affected by cannabis prohibition and accessible to persons of low-income seeking to start a business.

(e) Policies and procedures relating to the disclosure of the identities of the shareholders and the annual report of a cannabis establishment that is a publicly traded company.

(f) Reasonable restrictions on the signage, marketing, display and advertising of cannabis establishments. Such a restriction must not require a cannabis establishment to obtain the approval of the Board before using a logo, sign or advertisement.

(g) Provisions governing the sales of products and commodities made from hemp, as defined in NRS 557.160, or containing cannabidiol by cannabis establishments.

(h) Requirements relating to the packaging and labeling of cannabis and cannabis products.

2. The Board shall adopt regulations providing for the gathering and maintenance of comprehensive demographic information, including, without limitation, information regarding race, ethnicity, age and gender, concerning each:

(a) Owner and manager of a cannabis establishment.

(b) Holder of a cannabis establishment agent registration card.

3. The Board shall adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. Such regulations must, without limitation:

(a) Establish penalties to be imposed for unlicensed cannabis activities, which may include, without limitation, the issuance of a cease and desist order or citation, the imposition of an administrative fine or civil penalty and other similar penalties.

(b) Set forth the procedures by which the Board may impose a penalty against a person for engaging in unlicensed cannabis activities.

(c) Set forth the circumstances under which the Board is required to refer matters concerning unlicensed cannabis activities to an appropriate state or local law enforcement agency.

4. The Board shall transmit the information gathered and maintained pursuant to subsection 2 to the Director of the Legislative Counsel Bureau for transmission to the Legislature on or before January 1 of each odd-numbered year.

5. The Board shall, by regulation, establish a pilot program for identifying opportunities for an emerging small cannabis business to participate in the cannabis industry. As used in this subsection, “emerging small cannabis business” means a cannabis-related business that:

(a) Is in existence, operational and operated for a profit;

(b) Maintains its principal place of business in this State; and

(Added to NRS by 2019, 3779; A 2021, 742; 2023, 2531, 2554)

NRS 678A.460 Regulations: Procedure for adoption, amendment and repeal. Repealed. (See chapter 420, Statutes of Nevada 2023, at page 2540.)

NRS 678A.470 Records of Board; confidentiality of certain information.

1. The Board shall cause to be made and kept a record of all proceedings at regular and special meetings of the Board. These records are open to public inspection.

2. Any and all information and data prepared or obtained by the Board or by an agent or employee of the Board relating to a holder of or an applicant for a medical cannabis establishment license pursuant to NRS 678B.210, other than the name of a licensee and each owner, officer and board member of the licensee and information relating to the scoring and ranking of applications and the imposition of disciplinary action, are confidential and may be revealed in whole or in part only in the course of the necessary administration of this title or upon the lawful order of a court of competent jurisdiction. The Board may reveal such information and data to an authorized agent of any agency of the United States Government, any state or any political subdivision of a state or the government of any foreign country. Notwithstanding any other provision of state law, such information and data may not be otherwise revealed without specific authorization by the Board pursuant to the regulations of the Board.

3. Except as otherwise provided in this subsection, any information and data included in an application for an adult-use cannabis establishment license or a registration card is confidential and may be revealed in whole or in part only in the course of the necessary administration of this title or upon the lawful order of a court of competent jurisdiction. The name of the holder of an adult-use cannabis establishment license and each owner, officer and board member of the licensee and information relating to the scoring and ranking of applications and the imposition of disciplinary action are not confidential. The Board may reveal such information and data to an authorized agent of any agency of the United States Government, any state or any political subdivision of a state or the government of any foreign country. Notwithstanding any other provision of state law, such information and data may not be otherwise revealed without specific authorization by the Board pursuant to the regulations of the Board.

4. All files, records, reports and other information and data pertaining to matters related to cannabis in the possession of the Nevada Tax Commission or the Department of Taxation must be made available to the Board as is necessary to the administration of this title.

5. As used in this section, “information and data” means all information and data in any form, including, without limitation, any oral, written, audio, visual, digital or electronic form, and the term includes, without limitation, any account, book, correspondence, file, message, paper, record, report or other type of document, including, without limitation, any document containing self-evaluative assessments, self-critical analysis or self-appraisals of an applicant’s or licensee’s compliance with statutory or regulatory requirements.

(Added to NRS by 2019, 3782)

NRS 678A.480 Audits of licensees; standards for audits; annual report.

1. As often as the Board deems necessary, the Board shall conduct a financial or operational audit of the accounts, funds, programs, activities and functions of all licensees. As often as the Department deems necessary, the Department of Taxation shall conduct a tax audit of all licensees.

2. A licensee shall make available to the Board or Department of Taxation, as applicable, all books, accounts, claims, reports, vouchers and other records requested by the Board or Department in connection with an audit conducted pursuant to subsection 1.

3. If a licensee refuses to produce any of the records described in subsection 2, the Board or Department of Taxation, as applicable, may petition the district court to order the licensee to produce the requested records. The court shall order the production of all such records upon a finding that the requested records are within the scope of the audit.

4. If any audit report of the accounts, funds, programs, activities and functions of a licensee contains adverse or critical audit results, the Board or Department of Taxation, as applicable, may require the licensee subject to the audit to respond, in writing, to the results of the audit. A licensee shall provide such response to the Board or Department not more than 15 days after receiving a request from the Board or Department.

5. On or before April 1 of each year, the Board and the Department of Taxation shall submit to the Director of the Legislative Counsel Bureau a report concerning the audits conducted pursuant to this section for the preceding year. The report must include, without limitation:

(a) The number of audits performed pursuant to this section in the preceding year;

(b) A summary of the findings of the audits; and

(Added to NRS by 2019, 3783)

DISCIPLINARY ACTIONS

NRS 678A.500 Filing and review of complaints; authority of Executive Director to retain Attorney General to investigate complaints.

1. If the Executive Director becomes aware that a licensee or registrant has violated, is violating or is about to violate any provision of this title or any regulation adopted pursuant thereto, the Executive Director may transmit the details of the suspected violation, along with any further facts or information related to the violation which are known to the Executive Director, to the Attorney General.

2. If any person other than the Executive Director becomes aware that a licensee or registrant has violated, is violating or is about to violate any provision of this title or any regulation adopted pursuant thereto, the person may file a written complaint with the Executive Director specifying the relevant facts. The Executive Director shall review each such complaint and, if the Executive Director finds the complaint not to be frivolous, may transmit the details of the suspected violation, along with any further facts or information derived from the review of the complaint to the Attorney General.

3. The employees of the Board who are certified by the Peace Officers’ Standards and Training Commission created pursuant to NRS 289.500 shall cooperate with the Attorney General in the performance of any criminal investigation.

(Added to NRS by 2019, 3784)

NRS 678A.510 Investigation of complaint by Attorney General; recommendation to Executive Director; action by Board.

1. If the Executive Director transmits the details of a suspected violation to the Attorney General pursuant to NRS 678A.500, the Attorney General shall conduct an investigation of the suspected violation to determine whether it warrants proceedings for disciplinary action of the licensee or registrant. If the Attorney General determines that further proceedings are warranted, he or she shall report the results of the investigation together with a recommendation to the Executive Director in a manner which does not violate the right of the person charged in the complaint to due process in any later hearing on the complaint. The Executive Director shall transmit the recommendation and other information received from the Attorney General to the Board.

2. The Board shall promptly make a determination with respect to each complaint resulting in an investigation by the Attorney General. The Board shall:

(a) Dismiss the complaint;

(b) Enter into a consent or settlement agreement with the licensee or registrant pursuant to NRS 678A.645; or

(c) Proceed with appropriate disciplinary action in accordance with NRS 678A.520 to 678A.600, inclusive, chapter 233B of NRS and the regulations adopted by the Board. In determining the disciplinary action to impose the Board shall consider mitigating factors pursuant to NRS 678A.647.

(Added to NRS by 2019, 3784; A 2023, 2532, 2714)

NRS 678A.520 Contents and service of complaint; answer; effect of failure to answer or appear; notice of hearing.

1. If the Board proceeds with disciplinary action pursuant to NRS 678A.510, the Board or the Executive Director shall serve a complaint upon the respondent either personally, or by registered or certified mail at the address of the respondent that is on file with the Board. Such complaint must:

(a) Be a written statement of charges;

(b) Set forth in ordinary and concise language the acts or omissions with which the respondent is charged;

(d) Not consist merely of charges raised in the language of the statutes or regulations which the respondent is alleged to have violated;

(e) If the respondent is alleged to have committed multiple violations consisting of the same or a similar act, omission or course of conduct, charge those violations as a single alleged violation if the violations:

(1) Are closely related in time, place and circumstance; and

(2) Were all discovered in the course of a single audit, inspection or investigation;

(f) Specify the penalty being sought against the respondent; and

(g) Provide notice of the right of the respondent to request a hearing.

2. The Chair of the Board may grant an extension to respond to the complaint for good cause. Unless granted such an extension, the respondent must answer within 20 days after the service of the complaint. In the answer the respondent:

(a) Must state in short and plain terms the defenses to each claim asserted.

(b) Must admit or deny the facts alleged in the complaint.

(c) Must state which allegations the respondent is without knowledge or information to form a belief as to their truth. Such allegations shall be deemed denied.

(d) Must affirmatively set forth any matter which constitutes an avoidance or affirmative defense.

(e) May demand a hearing. Failure to demand a hearing constitutes a waiver of the right to a hearing and to judicial review of any decision or order of the Board, but the Board may order a hearing even if the respondent so waives his or her right.

3. Failure to answer or to appear at the hearing constitutes an admission by the respondent of all facts alleged in the complaint. The Board may take action based on such an admission and on other evidence without further notice to the respondent. If the Board takes action based on such an admission, the Board shall include in the record which evidence was the basis for the action.

4. The Board shall determine the time and place of the hearing as soon as is reasonably practical after receiving the respondent’s answer. The Board shall deliver or send by registered or certified mail a notice of hearing to all parties at least 10 days before the hearing. The hearing must be held within 45 days after receiving the respondent’s answer unless an expedited hearing is determined to be appropriate by the Board, in which event the hearing must be held as soon as practicable. The Chair of the Board may grant one or more extensions to the 45-day requirement pursuant to a request of a party or an agreement by both parties.

(Added to NRS by 2019, 3784; A 2021, 3148; 2023, 2715)

NRS 678A.530 Hearings: Subpoenas; payment of fees, subsistence and transportation for witness. Before a hearing before the Board, and during a hearing upon reasonable cause shown, the Board shall issue subpoenas and subpoenas duces tecum at the request of a party. All witnesses appearing pursuant to subpoena, other than parties, officers or employees of the State of Nevada or any political subdivision thereof, are entitled to receive fees and mileage in the same amounts and under the same circumstances as provided by law for witnesses in civil actions in the district courts. Witnesses entitled to fees or mileage who attend hearings at points so far removed from their residences as to prohibit return thereto from day to day are entitled, in addition to witness fees and in lieu of mileage, to the per diem compensation for subsistence and transportation authorized for state officers and employees for each day of actual attendance and for each day necessarily occupied in traveling to and from the hearings. Fees, subsistence and transportation expenses must be paid by the party at whose request the witness is subpoenaed. The Board may award as costs the amount of all such expenses to the prevailing party.

(Added to NRS by 2019, 3785; A 2021, 3148)

NRS 678A.540 Hearings: Procedure; use of affidavit.

1. At all hearings before the Board:

(a) Oral evidence may be taken only upon oath or affirmation administered by the Board.

(b) Every party has the right to:

(1) Call and examine witnesses;

(2) Introduce exhibits relevant to the issues of the case;

(3) Cross-examine opposing witnesses on any matters relevant to the issues of the case, even though the matter was not covered in a direct examination;

(4) Impeach any witness regardless of which party first called the witness to testify; and

(5) Offer rebuttal evidence.

(c) If the respondent does not testify in his or her own behalf, the respondent may be called and examined as if under cross-examination.

(d) The hearing need not be conducted according to technical rules relating to evidence and witnesses, except that those prescribed in NRS 233B.123 apply. Any relevant evidence that is not immaterial or unduly repetitious may be admitted and is sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action.

(e) The parties or their counsel may by written stipulation agree that certain specified evidence may be admitted even though such evidence might otherwise be subject to objection.

2. The Board may take official notice of any generally accepted information or technical or scientific matter within the field of cannabis, and of any other fact which may be judicially noticed by the courts of this State. The parties must be informed of any information, matters or facts so noticed, and must be given a reasonable opportunity, on request, to refute such information, matters or facts by evidence or by written or oral presentation of authorities, the manner of such refutation to be determined by the Board.

3. Affidavits may be received in evidence at any hearing of the Board in accordance with the following:

(a) The party wishing to use an affidavit must, not less than 10 days before the day set for hearing, serve upon the opposing party or counsel, either personally or by registered or certified mail, a copy of the affidavit which the party proposes to introduce in evidence together with a notice as provided in paragraph (c).

(b) Unless the opposing party, within 7 days after such service, mails or delivers to the proponent a request to cross-examine the affiant, the opposing party’s right to cross-examine the affiant is waived and the affidavit, if introduced in evidence, must be given the same effect as if the affiant had testified orally. If an opportunity to cross-examine an affiant is not afforded after request therefor is made in accordance with this paragraph, the affidavit may be introduced in evidence, but must be given only the same effect as other hearsay evidence.

The accompanying affidavit of (here insert name of affiant) will be introduced as evidence at the hearing set for the ........ day of the month of ………. of the year …… (Here insert name of affiant) will not be called to testify orally and you will not be entitled to question (here insert name of affiant) unless you notify the undersigned that you wish to cross-examine (here insert name of affiant). To be effective your request must be mailed or delivered to the undersigned on or before 7 days from the date this notice and the enclosed affidavit are served upon you.

.......................................................................

(Party or Counsel)

.......................................................................

(Address)

(Added to NRS by 2019, 3785; A 2023, 2533)

NRS 678A.550 Hearings: Members present; reporting of proceedings. The following procedures apply at all hearings of the Board:

1. At least three members of the Board shall be present at every hearing, and they shall exercise all powers relating to the conduct of the hearing and shall enforce all decisions with respect thereto.

2. The proceedings at the hearing must be reported either stenographically or by a phonographic reporter.

(Added to NRS by 2019, 3787)

NRS 678A.560 Hearings: Limitations on communications. Repealed. (See chapter 420, Statutes of Nevada 2023, at page 2540.)

NRS 678A.570 Hearings: Amended or supplemental pleadings. The Board may, before submission of the case for decision, permit the filing of amended or supplemental pleadings and shall notify all parties thereof, and provide a reasonable opportunity for objections thereto.

(Added to NRS by 2019, 3787)

NRS 678A.580 Hearings: Contempt. If any person in proceedings before the Board disobeys or resists any lawful order or refuses to respond to a subpoena, or refuses to take the oath or affirmation as a witness or thereafter refuses to be examined, or is guilty of misconduct during the hearing or so near the place thereof as to obstruct the proceeding, the Board may certify the facts to the district court in and for the county where the proceedings are held. The court shall thereupon issue an order directing the person to appear before the court and show cause why the person should not be punished as for contempt. The court order and a copy of the statement of the Board must be served on the person cited to appear. Thereafter the court has jurisdiction of the matter, and the same proceedings must be had, the same penalties may be imposed and the person charged may purge himself or herself of the contempt in the same way as in the case of a person who has committed a contempt in the trial of a civil action before a district court.

(Added to NRS by 2019, 3787)

NRS 678A.590 Hearings: Written decision and order of Board; rehearings.

1. Within 60 days after the hearing of a contested matter, the Board shall render a written decision on the merits. Except as otherwise provided in subsection 5 of NRS 233B.121, the written decision must contain findings of fact and conclusions of law which are separately stated, a determination of the issues presented and the penalty to be imposed, if any. If the Board determines that the licensee or registrant has violated any provision of this title or any regulation adopted pursuant thereto, the written decision must set forth the determination of the Board as to whether any of the mitigating circumstances required to be considered by the Board pursuant to NRS 678A.600 exist and, if so, the weight given to each mitigating circumstance in determining the appropriate action to be taken pursuant to that section. The Board shall thereafter make and enter its written order in conformity to its decision. No member of the Board who did not hear the evidence may vote on the decision. The affirmative votes of a majority of the whole Board are required to impose any penalty. Copies of the decision and order must be served on the parties personally or sent to them by registered or certified mail. The decision is effective upon such service, unless the Board orders otherwise.

2. The Board may, upon motion made within 15 days after service of a decision and order, order a rehearing before the Board upon such terms and conditions as it may deem just and proper if a petition for judicial review of the decision and order has not been filed. The motion must not be granted except upon a showing that there is additional evidence which is material and necessary and reasonably calculated to change the decision of the Board, and that sufficient reason existed for failure to present the evidence at the hearing of the Board. The motion must be supported by an affidavit of the moving party or his or her counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced at the hearing. Upon rehearing, rebuttal evidence to the additional evidence must be permitted. After rehearing, the Board may modify its decision and order as the additional evidence may warrant.

(Added to NRS by 2019, 3787; A 2023, 2534, 2716)

NRS 678A.600 Penalties; consideration of mitigating circumstances required in determining appropriate action.

1. If the Board finds that a licensee or registrant has violated a provision of this title or any regulation adopted pursuant thereto, the Board may:

(a) Limit, condition, suspend or revoke the license or registration card of the licensee or registrant;

(b) Impose a civil penalty in an amount established by regulation, not to exceed $20,000 for a single violation;

(d) Issue a warning to the licensee or registrant; or

(e) Take no action against the licensee or registrant.

2. In determining the appropriate action to be taken against a licensee or registrant pursuant to this section, including, without limitation, the amount of any civil penalty imposed, the Board shall consider whether any of the mitigating circumstances set forth in NRS 678A.647 exist.

(Added to NRS by 2019, 3788; A 2023, 2717)

NRS 678A.610 Judicial review. Any person aggrieved by a final decision or order of the Board made after hearing or rehearing by the Board pursuant to NRS 678A.520 to 678A.600, inclusive, and whether or not a motion for rehearing was filed, is entitled to judicial review of the decision or order in the manner provided by chapter 233B of NRS.

(Added to NRS by 2019, 3788; A 2023, 2534)

NRS 678A.620 Judicial review: Record on review. Repealed. (See chapter 420, Statutes of Nevada 2023, at page 2540.)

NRS 678A.630 Judicial review: Additional evidence taken by Board; review confined to record; court may affirm, remand or reverse. Repealed. (See chapter 420, Statutes of Nevada 2023, at page 2540.)

NRS 678A.640 Judicial review: Appeal to appellate court; exclusive method of review for disciplinary hearings; certain actions not subject to judicial review. Repealed. (See chapter 420, Statutes of Nevada 2023, at page 2540.)

NRS 678A.645 Consent and settlement agreements: Conditions for entry; considerations for approval or modification; required disclosures by Board.

1. The Board may, at any time, resolve a matter involving a licensee or registrant who has allegedly violated a provision of this title or any regulation adopted pursuant thereto by entering into a consent or settlement agreement with the licensee or registrant so long as the terms of the agreement, and any modification of those terms, are discussed and approved at a meeting of the Board.

2. In determining whether to approve or modify the terms of a consent or settlement agreement pursuant to subsection 1, the Board shall consider whether any of the mitigating circumstances set forth in NRS 678A.647 exist.

3. The Board shall state on the record in any meeting in which the terms of a consent or settlement agreement are approved or modified pursuant to subsection 1:

(a) The determination of the Board as to whether any of the mitigating circumstances set forth in NRS 678A.647 exist; and

(b) If the Board determines that any of the mitigating circumstances exist, the weight given by the Board to each mitigating circumstance in determining whether to approve or modify the terms of the agreement.

4. If the terms of a consent or settlement agreement impose a civil penalty, the statement required by paragraph (b) of subsection 3 must specify the weight given by the Board to each mitigating circumstance in determining whether to approve or modify the amount of the civil penalty.

(Added to NRS by 2023, 2713)

NRS 678A.647 Circumstances mitigating violation of title or regulations.

1. A violation of any provision of this title or any regulation adopted pursuant thereto may be mitigated by any of the following circumstances:

(a) The licensee or registrant self-reported the violation to the Board or an agent of the Board.

(b) For a violation committed by a licensee, the licensee has:

(1) Submitted to the Board a plan to correct the violation which has been approved by the Board or deemed approved pursuant to subsection 2; and

(2) Taken action to correct the violation.

(c) The licensee or registrant has made a good faith effort to prevent violations from occurring, including, without limitation, by:

(1) Providing regular training to the employees of the licensee or registrant which has been documented and which was provided before the commencement of an investigation by the Board concerning the violation; or

(2) Establishing, before the commencement of an investigation by the Board concerning the violation, standard operating procedures that include procedures which directly address the conduct constituting the violation.

(d) The licensee or registrant has cooperated in the investigation of the violation in such a manner as to demonstrate that the licensee or registrant accepts responsibility for the violation.

(e) Any other mitigating circumstance established by the Board by regulation exists.

2. For the purposes of subparagraph (1) of paragraph (b) of subsection 1, if a licensee has submitted a plan to correct a violation and the Board does not take action to approve or reject the plan within 30 days after the date on which the plan was submitted, the plan shall be deemed to be approved by the appropriate agent of the Board.

(Added to NRS by 2023, 2714)

PENALTIES FOR UNLICENSED ACTIVITIES

NRS 678A.650 Civil penalties; action by district attorney or city attorney; deposit of civil penalties; injunctions.

1. A person who does not hold a license and who, in violation of the provisions of this title:

(a) Cultivates, delivers, transfers, supplies or sells cannabis;

(b) Manufactures, delivers, transfers, supplies or sells cannabis products; or

Ê is liable for a civil penalty of not more than $50,000 to be recovered in an action brought by the district attorney or city attorney for the jurisdiction in which the violation occurred. Any civil penalty collected by a district attorney or city attorney pursuant to this section must be deposited in the county or city treasury, as applicable.

2. The district attorney or city attorney of any county or city, respectively, in which a person engages in any of the conduct described in subsection 1 in violation of the provisions of this title may bring an action to enjoin the violation.

(Added to NRS by 2021, 2140)