[Rev. 1/21/2019 2:12:20 PM]

[NAC-453D Revised Date: 1-19]

CHAPTER 453D - REGULATION AND TAXATION OF MARIJUANA

GENERAL PROVISIONS

453D.001           Definitions.

453D.005           “Analyte” defined.

453D.010           “Batch” defined.

453D.012           “Batch number” defined.

453D.015           “CBD” defined.

453D.018           “Combined marijuana establishment” defined.

453D.021           “Component marijuana establishment” defined.

453D.025           “Designated primary caregiver” defined.

453D.028           “Division” defined.

453D.033           “Edible marijuana products” defined.

453D.036           “Enclosed, locked facility” defined.

453D.039           “Excise tax on marijuana” defined.

453D.041           “Extraction” defined.

453D.045           “Fair market value” defined.

453D.048           “Foreign matter” defined.

453D.053           “Growing unit” defined.

453D.058           “Imminent health hazard” defined.

453D.061           “Inventory control system” defined.

453D.065           “Label” defined.

453D.068           “Letter of approval” defined.

453D.071           “Lot” defined.

453D.075           “Marijuana establishment agent” defined.

453D.077           “Marijuana establishment agent registration card” defined.

453D.080           “Medical marijuana establishment” defined.

453D.082           “Medical marijuana establishment agent registration card” defined.

453D.084           “Medical marijuana establishment registration certificate” defined.

453D.086           “Medical use of marijuana” defined.

453D.089           “Multiple-serving edible marijuana product” defined.

453D.094           “Packaging” defined.

453D.097           “Pesticide” defined.

453D.100           “Potential total THC” defined.

453D.102           “Potentially hazardous marijuana products and ingredients” defined.

453D.105           “Premises” defined.

453D.108           “Production run” defined.

453D.110           “Production run number” defined.

453D.113           “Proficiency testing” defined.

453D.115           “Proficiency testing program” defined.

453D.117           “Proficiency testing provider” defined.

453D.119           “Proficiency testing sample” defined.

453D.122           “Public transportation” defined.

453D.126           “Registry identification card” defined.

453D.130           “Sampling protocols” defined.

453D.133           “Security equipment” defined.

453D.136           “Seed-to-sale tracking system” defined.

453D.138           “Separate operations” defined.

453D.141           “Single-serving edible marijuana product” defined.

453D.144           “Surveillance” defined.

453D.148           “Taxpayer” defined.

453D.151           “THC” defined.

453D.155           “Usable marijuana” defined.

453D.160           “Marijuana” interpreted to exclude industrial hemp.

453D.165           Establishment of maximum allowable quantity of marijuana for purposes of exemption from state or local prosecution.

453D.175           State employees responsible for implementing or enforcing chapter prohibited from having interest in marijuana establishment or from being employed by or volunteering at establishment.

453D.178           Investigative authority of Department relating to violations of chapter, enforcement and adoption of regulations and recommending legislation.

453D.180           Confidentiality of information received by Department relating to security of marijuana establishment.

453D.185           Confidentiality of name and any other identifying information of persons who facilitate or deliver services pursuant to chapter; exceptions.

453D.190           Applicability of chapter to extent specified in agreement with tribal government.

FEES

453D.200           Initial issuance of license and renewal; collection of assessment for oversight by Department.

453D.205           Initial licensing fee; revocation of license for failure to pay.

453D.210           Department authorized to collect fee for costs of investigating complaint if substantiated; hourly rate.

EXCISE TAX ON MARIJUANA

453D.230           Provisions governing payment, collection, administration and enforcement of marijuana taxes also applicable to excise tax on marijuana and marijuana cultivation facilities.

453D.233           Marijuana and marijuana products sold at retail marijuana store subject to sales tax; submission of returns and payments.

453D.236           Monthly filing of returns; payment of tax; maintenance of documentation and verification of payment; submission of financial statement upon request; calculation of fair market value at wholesale.

453D.239           Annual reimbursement of costs to local governments.

MARIJUANA ESTABLISHMENTS

Licensing

453D.250           Designation of persons responsible for providing information, signing documents and ensuring certain actions are taken.

453D.255           Applicability of chapter to persons owning 5 percent interest or more in marijuana establishment; exception if public interest will be served.

453D.258           Measurement of distance of proposed marijuana establishment from school or community facility.

453D.260           Request for applications to operate establishment: Notice by Department; required provisions; time period for submission of applications.

453D.265           Submission of application by person who holds medical marijuana establishment registration certificate for marijuana establishment of same type; issuance of license; refund of fee if application not approved.

453D.268           Submission of application by person who holds medical marijuana establishment registration certificate for marijuana establishment of same type or different type; submission of application by person in response to request for applications.

453D.272           Ranking of applications for retail marijuana store; proportional allocation of licenses for retail marijuana stores within each county; notification to locality of acceptance of applicants; prevention of monopolistic practices; revision or disqualification of application for criminal history of applicant or other person named in application.

453D.274           Request by applicant for ranked application score; request to review scoring information; designation of Department employee to respond to request; maintenance of information in application file.

453D.278           Issuance of license if Department receives only one application in response to request for applications; notification to locality.

453D.282           Issuance of license is conditional until certain requirements for approval to begin operations are satisfied.

453D.285           Written notice of denial of application.

453D.288           Inspections.

453D.292           Authority of Department, Tax Commission and Executive Director relating to inspections and investigations, summoning of witnesses and issuance of subpoenas, administration of oaths and administration of provisions of chapter.

453D.295           Surrender of license if marijuana establishment has not received final inspection; extension of time for final inspection; fee not refundable.

453D.300           Notification to Department if marijuana establishment is closing; immediate surrender of license upon closing.

453D.305           Renewal of license: Application and fee; submission of fingerprints; proof of accreditation required for marijuana testing facility.

453D.308           Suspension of license for deficiencies in operation or services; submission of plan of correction; resubmission of plan by marijuana establishment or development of directed plan of correction by Department.

453D.312           Grounds for denial of issuance or renewal of license; grounds for revocation of license; notice; opportunity to correct situation.

453D.315           Requirements for transfer of all or a portion of ownership interest; reimbursement of costs to Department; notice to Department; disclosure of facts pertaining to representative capacity of certain persons to Department; permission of Department required for registering certain information in the books and records of the marijuana establishment; investigation.

Component Marijuana Establishments

453D.330           Legal status as separate entity; issuance of certificate of approval by Department; shared secured storage area; requirements for buildings and location; inspection and other requirements to commence operations; expansion of operations; powers and duties in operation; request for exception from inspection.

Marijuana Establishment Agent Registration Cards

453D.340           Submission of information by marijuana establishment to obtain or renew registration card for person employed by or contracted with establishment or for volunteer; fingerprinting and application fee; issuance of registration card; temporary registration; registration card required for officer, board member and person holding more than 5 percent ownership interest in marijuana establishment.

453D.345           Submission of applications electronically.

453D.348           Categories of registration cards.

453D.352           Training and instruction required before agent may begin work or service as volunteer.

453D.355           Request for change to name or address on registration card.

453D.358           Request for replacement of registration card.

453D.362           Expiration date on registration card that is changed or replaced.

453D.365           Grounds for denial of issuance or renewal of registration card; grounds for revocation of registration card; notice of denial or revocation.

Requirements and Procedures for Operation

453D.400           Posting of licenses and other authorization to conduct business in conspicuous place.

453D.405           Requirements of dual licensee.

453D.410           Operation in accordance with plans and specifications included in application; deviation from plans and specifications; documentation of change to facilities; inspection or audit of change to facilities.

453D.413           Written request for move to new location; issuance of new amended license upon approval of request.

453D.418           Persons authorized on premises; visitor identification badge and other requirements for other persons; maintenance and availability of visitor log.

453D.422           Development, documentation and implementation of certain policies and procedures; maintenance and availability.

453D.426           Inventory control system; authorized sources for acquisition of marijuana and marijuana products; duties of establishment if loss incurred; maintenance and availability of documentation.

453D.430           Use of seed-to-sale tracking system; payment of fees.

453D.434           Required security measures, equipment and personnel; location of outdoor cultivation facility must allow for response by local law enforcement.

453D.438           Duties relating to marijuana establishment agents.

453D.442           Cleanliness and health of marijuana establishment agents.

453D.446           Requirements for building used as marijuana establishment or by dual licensee; use of commercial weighing and measuring equipment.

453D.450           Quality assurance testing required before sale or transfer of products.

453D.454           Requirements for preparation or sale of edible marijuana products; marijuana product manufacturing facility exempt from provisions governing food establishments.

453D.458           Prohibition on dispensing or selling marijuana or marijuana products from vending machine.

453D.462           Prohibition on treating or adulterating usable marijuana with chemical or other compound.

453D.466           Promotional and marketing activities; applicability of labeling and testing provisions to all marijuana and marijuana products.

453D.470           Restrictions on advertising; required posting of signs in retail marijuana store.

453D.473           Use of name, logo, sign, advertisement or packaging: Required approval by Department.

453D.477           Responsibility for costs relating to clean-up, mitigation or remedy of environmental damage.

453D.480           Documentation and reporting of loss or theft; maintenance of documentation.

453D.485           Quarterly reporting concerning production, purchases and sales of marijuana and marijuana products.

RETAIL MARIJUANA STORES

453D.550           Requirements for operation; posting of hours of operation.

453D.555           Duties of marijuana establishment agent before sale to consumer.

453D.558           Valid proof of identification of age of consumer required.

453D.562           Prohibition on sale that exceeds maximum usable quantity of marijuana.

453D.565           Products required to be offered for sale; restrictions on sale of other products; restrictions on advertising.

453D.568           Storage and location of products; disclosure of marijuana testing facility performing quality assurance tests upon request of consumer; approved sources of products for sale; maintenance and availability of certificate of analysis; exemption for industrial hemp.

453D.572           Delivery to consumer: General requirements.

453D.575           Delivery to consumer: Duties of retail marijuana store.

453D.578           Delivery to consumer: Restrictions; duties of marijuana establishment agent making delivery.

453D.582           Delivery to consumer: Requirements for motor vehicles used to make deliveries; adequate temperature control of products required; inspection of motor vehicles authorized.

MARIJUANA CULTIVATION FACILITIES

453D.600           Department authorized to limit marijuana cultivation within State.

453D.605           Required written disclosure with each lot of usable marijuana; provision of free samples to retail marijuana store; applicability of provisions governing excise tax on marijuana to free samples.

453D.608           Restrictions on access to facility and persons authorized on premises; location of marijuana growing at facility.

453D.615           Requirements for outdoor cultivation; verification of adequate isolation.

PRODUCTION OF MARIJUANA PRODUCTS

Duties of Marijuana Establishment Agents while Engaged in Production

453D.640           Cleanliness of hands and arms: Cleaning procedure.

453D.642           Cleanliness of hands and arms: Frequency of and activities requiring cleaning procedure.

453D.646           Hand and arm contact while engaged in extraction of concentrated marijuana or production of marijuana products.

Marijuana Product Manufacturing Facilities

453D.650           Qualifications and duties of persons responsible for managing facility.

453D.654           Creation of marijuana extracts; development of standard operating procedures, good manufacturing practices and training plan.

453D.658           Requirements and restrictions on use of nonmarijuana ingredients.

453D.662           Protection of products and ingredients from cross-contamination.

453D.664           Use of pasteurized eggs and egg products; cleanliness of equipment, utensils and articles; requirements for temperature controls.

453D.668           Clear marking of potentially hazardous marijuana products; determination of expiration date and shelf life of perishable products.

453D.672           Edible marijuana products: Testing to ensure homogeneity of potency; requirements for sale; approval of Department required for certain changes.

453D.676           Requirements for sinks and running water.

453D.680           Requirements for sanitizers.

453D.682           Requirements for materials used in construction of utensils and contact surfaces.

453D.684           Requirements for lighting.

453D.686           Requirements for filters for liquid filtration; prohibition on asbestos-containing filter.

453D.688           Sufficiency of ventilation hood systems and devices.

453D.690           Sufficiency of mechanical ventilation.

453D.692           Surfaces of equipment and utensils: Cleanliness.

453D.694           Surfaces of equipment and utensils: Frequency of and activities requiring cleaning.

453D.696           Surfaces and utensils: Sanitation.

453D.698           Surfaces of cooking and baking equipment and door seals of microwave ovens: Cleanliness.

MINIMUM GOOD MANUFACTURING PRACTICES FOR CULTIVATION AND PREPARATION OF MARIJUANA AND MARIJUANA PRODUCTS FOR ADMINISTRATION TO HUMANS

453D.700           Establishment of minimum good manufacturing practices.

453D.705           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Requirement to have quality control unit.

453D.708           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Adequate ventilation, filtration systems and related equipment required for building.

453D.712           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for labeling and packaging materials.

453D.715           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for production and process control to assure quality of marijuana and marijuana products; review and approval of procedures; recording and justification of deviation from procedures.

453D.718           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for components, product containers and closures.

453D.720           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Appropriateness, cleanliness and maintenance of equipment, utensils and substances; maintenance of records.

453D.725           Marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store: Requirement to ensure cleanliness of employees and volunteers.

453D.728           Marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store: Restrictions on salvaging marijuana and marijuana products; maintenance of records.

453D.732           Marijuana establishment: Requirements for building used to manufacture, process, package or hold marijuana.

453D.734           Marijuana establishment: Requirement to maintain building used to manufacture, process, package or hold marijuana in good state of repair.

453D.736           Marijuana establishment: Requirements for water, plumbing and drains in building used to manufacture, process, package or hold marijuana.

453D.738           Marijuana establishment: Adequate lighting.

453D.740           Marijuana establishment: Establishment of and adherence to written procedures for sanitation; requirement to retain person who is certified applicator of pesticides.

453D.745           Marijuana establishment: Storage, management and disposal of waste.

MARIJUANA TESTING FACILITIES

453D.755           Employment, qualifications and duties of scientific director; inspection of testing facility upon appointment of new director.

453D.758           Requirements for testing facility to handle, test or analyze marijuana.

453D.760           Agreement to become accredited within 1 year after licensure; provision of annual inspection report to Department; inspection by accrediting organization is not substitute for inspection by Department.

453D.764           Adherence to general laboratory standards, practices, procedures and programs; inspection by Department or authorized third party; adoption of publications by reference.

453D.766           Establishment of policies for adequate chain of custody and requirements for samples of products provided to testing facility.

453D.768           No limitation on amount of usable marijuana and marijuana products on premises of testing facility; maintenance of records to prove amount on premises is for testing purposes only.

453D.772           Proficiency testing program: Establishment by Department; required participation by testing facilities; conditions for successful participation; unsuccessful participation grounds for limitation, suspension or revocation of license; request for retest of proficiency testing sample; effect of denial of request for retest or failure of retest.

453D.776           Limited testing for research and development purposes.

453D.780           Required quality assurance tests; submission of wet marijuana for testing.

453D.782           Performance of potency analysis or terpene analysis.

453D.784           Performance of testing to verify homogeneity of potency of edible marijuana products.

453D.786           Use of approved pesticides by marijuana establishment; performance of pesticide residue analysis by testing facility.

453D.788           Testing: Selection of representative samples and random samples; segregation period for entire lot; duties of testing facility; disposal of lot if sample fails test; release of lot if sample passes test; filing of electronic copy of certificate of analysis for tests performed by testing facility; grounds for disciplinary action for failure to comply.

453D.790           Testing: Authorized use of marijuana upon failure of microbial screening; automatic failure to pass; request for retest; retest for pesticide residue must be performed by State Department of Agriculture; effect of passing or failing retest.

453D.794           Audit or certification of testing facility by State Department of Agriculture.

453D.796           Collection and testing of random samples from marijuana establishments for comparison with results reported by testing facilities.

453D.798           Random quality assurance compliance checks; costs for screening or testing.

PACKAGING AND LABELING OF MARIJUANA PRODUCTS

453D.800           Requirements for single packages.

453D.805           Requirements for edible marijuana products, products in solid or liquid form, usable marijuana and concentrated marijuana or marijuana products.

453D.808           Stamp or mold required for edible marijuana products; exception.

453D.812           Requirements for labeling products “organic.”

453D.816           Marijuana cultivation facility: Required labeling before sale of marijuana to retail marijuana store.

453D.820           Marijuana product manufacturing facility: Required labeling of edible marijuana products before sale to retail store.

453D.824           Retail marijuana store: Required labeling of usable marijuana.

453D.828           Retail marijuana store: Required labeling of edible marijuana products.

453D.832           Retail marijuana store: Required disclosures and warnings.

453D.836           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Required labeling.

453D.838           Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Examination of products during finishing operations; collection of representative sample of units; recording of results.

MARIJUANA DISTRIBUTORS

453D.860           Requirements for transportation of marijuana and marijuana products.

453D.864           Duties of distributor delivering marijuana or marijuana products; transportation manifest; duties of originating marijuana establishment and receiving marijuana establishment; maintenance of records.

453D.868           Storage area for marijuana and marijuana products; verification of inventory; inspection by Department.

453D.870           Amount that may be transported by distributor; transportation by marijuana establishment agent; restrictions on transportation by vehicle.

453D.874           Transportation between marijuana establishments owned by distributor; use of motor vehicles for transportation; adequate care for perishable marijuana products.

453D.876           Transportation between multiple marijuana establishments; requirements for drivers used by distributor; hours and locations of transportation; reporting of irregularities, motor vehicle crash or break-down of motor vehicle; use of seed-to-sale tracking system.

453D.878           Transportation by marijuana cultivation facility, marijuana product manufacturing facility, marijuana testing facility or retail marijuana store; applicability of provisions relating to distributors.

453D.880           Transportation by marijuana establishment to retail marijuana store.

DISCIPLINARY ACTION; PRACTICE BEFORE THE DEPARTMENT OF TAXATION

Disciplinary Action

453D.900           Grounds for disciplinary action.

453D.905           Imposition of civil penalty; revocation or suspension of license or marijuana establishment agent registration card; corrective action; categories of violations; imminent health hazard requiring immediate correction or cessation of operations.

453D.908           Notice of disciplinary action or civil penalty; rescission of action or penalty by Department; request for hearing.

453D.912           Reinstatement of license or marijuana establishment agent registration card: Application; conditions, limitations or restrictions upon reinstatement; denial.

Summary Suspension of License of Marijuana Establishment or Marijuana Establishment Agent Registration Card

453D.920           Grounds for summary suspension; notice; request for hearing.

453D.925           Authority of party to file answer; amendment of notice or order; request for continuance of hearing; inclusion of documentation in record at hearing.

453D.930           Written discovery request; contents and discovery of investigative file; party barred from serving interrogatories or taking depositions.

Hearings

453D.940           Contents and service of notice; scheduling; service of findings of fact, conclusions of law and decision; authority of hearing officer to impose disciplinary action or civil penalty.

453D.944           Representation of party; duties of attorney; withdrawal of attorney; bar of attorney from participation or imposition of sanctions; responsibility for costs.

453D.948           Authorized communications to hearing officer.

453D.952           Prehearing conference; conference before taking testimony.

453D.956           Continuances and recesses.

453D.960           Failure to appear.

453D.964           Burden and standard of proof; order of evidence; request and costs for transcription.

453D.968           Subpoenas.

453D.972           Rules of evidence.

453D.976           Official notice.

453D.980           Filing of briefs.

453D.984           Order of proceedings; deviation from order.

453D.988           Preparation and service of findings of fact, conclusions of law and final decision by hearing officer.

453D.990           Motion to request rehearing or reconsideration; response in opposition; order ruling on motion; scope of rehearing.

453D.994           Notice of appeal with Nevada Tax Commission; oral argument; final written decision on appeal; disciplinary action or civil penalty effective until reversed on appeal; authorized judicial review.

453D.996           Judicial review.

 

GENERAL PROVISIONS

     NAC 453D.001  Definitions. (NRS 453D.200)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 453D.005 to 453D.155, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.005  “Analyte” defined. (NRS 453D.200)  “Analyte” means any compound, element, contaminant organism, species or other substance for which a marijuana sample is tested by a marijuana testing facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.010  “Batch” defined. (NRS 453D.200)  “Batch” means the usable flower and trim contained within one or more specific lots of marijuana grown by a marijuana cultivation facility from one or more seeds or cuttings of the same strain of marijuana and harvested on or before a specified final date of harvest.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.012  “Batch number” defined. (NRS 453D.200)  “Batch number” means a unique numeric or alphanumeric identifier assigned to a batch by a marijuana establishment when the batch is planted.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.015  “CBD” defined. (NRS 453D.200)  “CBD” means cannabidiol, which is a primary phytocannabinoid compound found in marijuana.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.018  “Combined marijuana establishment” defined. (NRS 453D.200)  “Combined marijuana establishment” means a group of marijuana establishments or medical marijuana establishments which:

     1.  Each share identical ownership; and

     2.  Are located on the same parcel of real estate.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.021  “Component marijuana establishment” defined. (NRS 453D.200)  “Component marijuana establishment” means an individual marijuana establishment or medical marijuana establishment which is part of a combined marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.025  “Designated primary caregiver” defined. (NRS 453D.200)  “Designated primary caregiver” has the meaning ascribed to it in NRS 453A.080.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.028  “Division” defined. (NRS 453D.200)  “Division” means the Division of Public and Behavioral Health of the Department of Health and Human Services.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.033  “Edible marijuana products” defined. (NRS 453D.200)  “Edible marijuana products” has the meaning ascribed to it in NRS 453A.101.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.036  “Enclosed, locked facility” defined. (NRS 453D.200)  “Enclosed, locked facility” has the meaning ascribed to it in NRS 453A.103.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.039  “Excise tax on marijuana” defined. (NRS 453D.200)  “Excise tax on marijuana” means any excise tax imposed by chapter 372A or 453D of NRS.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.041  “Extraction” defined. (NRS 453D.200)  “Extraction” has the meaning ascribed to it in NRS 453.0825.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.045  “Fair market value” defined. (NRS 453D.200)  “Fair market value” means the value established by the Department based on the price that a buyer would pay to a seller in an arm’s length transaction for marijuana in the wholesale market.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.048  “Foreign matter” defined. (NRS 453D.200)  “Foreign matter” means:

     1.  Any plant matter, other than the marijuana product itself, which is more than 2 millimeters in size and constitutes more than 5 percent of the marijuana product; or

     2.  Any physical contaminant,

Ê which is included in the marijuana product.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.053  “Growing unit” defined. (NRS 453D.200)  “Growing unit” means an area within a marijuana cultivation facility in which growing operations are performed at all stages of growth. The term includes, without limitation, multiple rooms or areas that collectively are used to perform growing operations at all stages of growth regardless of whether each individual room or area has the capability to perform growing operations at all stages of growth.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.058  “Imminent health hazard” defined. (NRS 453D.200)  “Imminent health hazard” means a situation that requires immediate correction or cessation of operations to prevent injury as determined by the Department pursuant to subsection 5 of NAC 453D.905.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.061  “Inventory control system” defined. (NRS 453D.200)  “Inventory control system” means a process, device or other contrivance that may be used to monitor the chain of custody of marijuana from the point of cultivation to the end consumer.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.065  “Label” defined. (NRS 453D.200)  “Label” means written or printed material affixed to or included with marijuana or a marijuana product to provide identification or other information.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.068  “Letter of approval” defined. (NRS 453D.200)  “Letter of approval” has the meaning ascribed to it in NRS 453A.109.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.071  “Lot” defined. (NRS 453D.200)  “Lot” means:

     1.  The flowers from one or more marijuana plants of the same batch, in a quantity that weighs 5 pounds or less;

     2.  The leaves or other plant matter from one or more marijuana plants of the same batch, other than full female flowers, in a quantity that weighs 15 pounds or less; or

     3.  The wet leaves or other plant matter from one or more marijuana plants of the same batch used only for extraction, in a quantity that weighs 125 pounds or less within 2 hours of harvest.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.075  “Marijuana establishment agent” defined. (NRS 453D.200)  “Marijuana establishment agent” means an owner, officer, board member, employee or volunteer of a marijuana establishment, an independent contractor who provides labor relating to the cultivation, processing or distribution of marijuana or the production of marijuana or marijuana products for a marijuana establishment or an employee of such an independent contractor.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.077  “Marijuana establishment agent registration card” defined. (NRS 453D.200)  “Marijuana establishment agent registration card” means a registration card that is issued by the Department to authorize a person to volunteer or work at a marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.080  “Medical marijuana establishment” defined. (NRS 453D.200)  “Medical marijuana establishment” has the meaning ascribed to it in NRS 453A.116.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.082  “Medical marijuana establishment agent registration card” defined. (NRS 453D.200)  “Medical marijuana establishment agent registration card” has the meaning ascribed to it in NRS 453A.118.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.084  “Medical marijuana establishment registration certificate” defined. (NRS 453D.200)  “Medical marijuana establishment registration certificate” has the meaning ascribed to it in NRS 453A.119.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.086  “Medical use of marijuana” defined. (NRS 453D.200)  “Medical use of marijuana” has the meaning ascribed to it in NRS 453A.120.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.089  “Multiple-serving edible marijuana product” defined. (NRS 453D.200)  “Multiple-serving edible marijuana product” means an edible marijuana product which is offered for sale to a consumer and contains, within a variance of 15 percent, more than 10 milligrams and not more than 100 milligrams of THC. The term includes an edible marijuana product which contains multiple pieces, each of which contains 10 milligrams or less of THC, if the edible marijuana product offered for sale contains a total of more than 10 milligrams of THC.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.094  “Packaging” defined. (NRS 453D.200)  “Packaging” means the materials used to wrap or protect goods.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.097  “Pesticide” defined. (NRS 453D.200)  “Pesticide” has the meaning ascribed to it in NRS 586.195.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.100  “Potential total THC” defined. (NRS 453D.200)  “Potential total THC” means the sum of the percentage by weight of tetrahydrocannabinolic acid multiplied by 0.877 plus the percentage by weight of THC.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.102  “Potentially hazardous marijuana products and ingredients” defined. (NRS 453D.200)

     1.  “Potentially hazardous marijuana products and ingredients” means an edible item that is natural or synthetic and that requires temperature control because the item is in a form capable of supporting:

     (a) The rapid and progressive growth of infectious or toxigenic microorganisms;

     (b) The growth and toxin production of Clostridium botulinum; or

     (c) In raw shell eggs, the growth of Salmonella enteritidis.

     2.  The term includes, without limitation:

     (a) An animal item that is raw or heat-treated;

     (b) An item of plant origin that is heat-treated or consists of raw seed sprouts;

     (c) Cut melons and tomatoes;

     (d) Garlic-in-oil mixtures that are not modified in a way that results in mixtures which prohibit growth; and

     (e) Whipped butter.

     3.  The term does not include:

     (a) An ingredient with a value of water activity of not more than 0.85;

     (b) An ingredient with a pH level of not more than 4.6 when measured at 75°F (24°C); or

     (c) An ingredient, in a hermetically sealed and unopened container, that is commercially processed to achieve and maintain commercial sterility under conditions of nonrefrigerated storage and distribution.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.105  “Premises” defined. (NRS 453D.200)  “Premises” means:

     1.  Any temporary or permanent structure, including, without limitation, any building, house, room, apartment, tenement, shed, carport, garage, shop, warehouse, store, mill, barn, stable, outhouse or tent; or

     2.  Any conveyance, including, without limitation, any vessel, boat, vehicle, airplane, glider, house trailer, travel trailer, motor home or railroad car,

Ê whether located aboveground or underground and whether inhabited or not.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.108  “Production run” defined. (NRS 453D.200)  “Production run” means:

     1.  For the extraction of concentrated marijuana by a marijuana establishment, the combination of one or more lots used to make the same product in one homogenous mixture produced using the same method which results in not more than 2.2 pounds of concentrated marijuana.

     2.  For the production of marijuana products by a marijuana product manufacturing facility, one homogenous mixture produced at the same time using the same method and which may include a combination of concentrated marijuana and other materials for the production of marijuana products.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.110  “Production run number” defined. (NRS 453D.200)  “Production run number” means a unique numeric or alphanumeric identifier assigned to a production run by a marijuana product manufacturing facility which accounts for each batch or lot or any concentrated marijuana used in the production run.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.113  “Proficiency testing” defined. (NRS 453D.200)  “Proficiency testing” means the evaluation, relative to a given set of criteria, of the performance, under controlled conditions, of a marijuana testing facility in analyzing unknown samples provided by an external source.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.115  “Proficiency testing program” defined. (NRS 453D.200)  “Proficiency testing program” means the program established by the Department pursuant to NAC 453D.772 to evaluate the proficiency of all marijuana testing facilities in this State.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.117  “Proficiency testing provider” defined. (NRS 453D.200)  “Proficiency testing provider” means a person accredited to operate a proficiency testing program by an organization which is accredited pursuant to standard ISO/IEC 17011 of the International Organization for Standardization to perform such accreditation.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.119  “Proficiency testing sample” defined. (NRS 453D.200)  “Proficiency testing sample” means a sample, the composition of which is unknown to the marijuana testing facility, provided to a marijuana testing facility to test whether the marijuana testing facility can produce analytical results within certain criteria.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.122  “Public transportation” defined. (NRS 453D.200)  “Public transportation” means:

     1.  Buses;

     2.  Trains;

     3.  Subways; and

     4.  Other forms of transportation which charge a fare and are available to the public.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.126  “Registry identification card” defined. (NRS 453D.200)  “Registry identification card” has the meaning ascribed to it in NRS 453A.140.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.130  “Sampling protocols” defined. (NRS 453D.200)  “Sampling protocols” means the procedures specified by the Department which are required to be used to obtain samples of marijuana for quality assurance testing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.133  “Security equipment” defined. (NRS 453D.200)  “Security equipment” means a system of video cameras, monitors, recorders, video printers, motion detectors, exterior lighting, electronic monitoring and other ancillary equipment used for surveillance of a marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.136  “Seed-to-sale tracking system” defined. (NRS 453D.200)  “Seed-to-sale tracking system” means an electronic database which is used to monitor in real time the chain of custody of marijuana from the point of acquisition or planting to the end consumer and which is accessible by the Department and by marijuana establishments.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.138  “Separate operations” defined. (NRS 453D.200)  “Separate operations” means any area in which a component marijuana establishment must maintain legal and operational separation from all other component marijuana establishments within a combined marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.141  “Single-serving edible marijuana product” defined. (NRS 453D.200)  “Single-serving edible marijuana product” means an edible marijuana product which is offered for sale to a consumer and contains not more than 10 milligrams of THC.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.144  “Surveillance” defined. (NRS 453D.200)  “Surveillance” means the capability to observe and record activities being conducted outside and inside a marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.148  “Taxpayer” defined. (NRS 453D.200)  “Taxpayer” means a:

     1.  Marijuana cultivation facility; or

     2.  Retail marijuana store.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.151  “THC” defined. (NRS 453D.200)  “THC” has the meaning ascribed to it in NRS 453.139.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.155  “Usable marijuana” defined. (NRS 453D.200)  “Usable marijuana” has the meaning ascribed to it in NRS 453A.160.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.160  “Marijuana” interpreted to exclude industrial hemp. (NRS 453D.200)  As used in chapter 453D of NRS, the Department will interpret “marijuana” to exclude industrial hemp, as defined in NRS 557.040, which is grown or cultivated pursuant to chapter 557 of NRS.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.165  Establishment of maximum allowable quantity of marijuana for purposes of exemption from state or local prosecution. (NRS 453D.200)  For the purposes of subsection 1 of NRS 453D.110, the maximum allowable quantity of marijuana is an amount that is:

     1.  Equivalent to 1 ounce of usable marijuana other than concentrated marijuana;

     2.  One-eighth ounce of concentrated marijuana containing not more than 3,500 milligrams of THC; and

     3.  One-eighth ounce of concentrated marijuana or 3,500 milligrams of THC contained within one or more edible marijuana products.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.175  State employees responsible for implementing or enforcing chapter prohibited from having interest in marijuana establishment or from being employed by or volunteering at establishment. (NRS 453D.200)  No employee of this State who is responsible for implementing or enforcing the provisions of this chapter or chapter 453D of NRS may have a direct or indirect financial interest in a marijuana establishment or be employed by or volunteer at a marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.178  Investigative authority of Department relating to violations of chapter, enforcement and adoption of regulations and recommending legislation. (NRS 453D.200)  The Department will make appropriate investigations:

     1.  To determine whether there has been any violation of this chapter or chapter 453D of NRS.

     2.  To determine any facts, conditions, practices or matters which it may deem necessary or proper to aid in the enforcement of any such law or regulation.

     3.  To aid in adopting regulations.

     4.  To secure information as a basis for recommending legislation relating to chapter 453D of NRS.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.180  Confidentiality of information received by Department relating to security of marijuana establishment. (NRS 453D.200)  Except as otherwise provided in NRS 239.0115 and NAC 453D.185, any information received by the Department related to the security of a marijuana establishment is confidential and must not be disclosed by the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.185  Confidentiality of name and any other identifying information of persons who facilitate or deliver services pursuant to chapter; exceptions. (NRS 453D.200)

     1.  Except as otherwise provided in this section and NRS 239.0115, the Department will and any designee of the Department shall maintain the confidentiality of and shall not disclose the name or any other identifying information of any person who facilitates or delivers services pursuant to this chapter or chapter 453D of NRS. Except as otherwise provided in NRS 239.0115, the name and any other identifying information of any person who facilitates or delivers services pursuant to this chapter or chapter 453D of NRS are confidential, not subject to subpoena or discovery and not subject to inspection by the general public.

     2.  Notwithstanding the provisions of subsection 1, the Department or its designee may release the name and other identifying information of a person who facilitates or delivers services pursuant to this chapter or chapter 453D of NRS to:

     (a) Authorized employees of the Department or its designee as necessary to perform official duties of the Department; and

     (b) Authorized employees of state and local law enforcement agencies only as necessary to verify that a person is lawfully facilitating or delivering services pursuant to this chapter or chapter 453D of NRS.

     3.  Nothing in this section prohibits the Department from providing a local government with a copy of all information and documentation provided as part of an application to operate a marijuana establishment upon the request of the local government and with the prior consent of the applicant.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.190  Applicability of chapter to extent specified in agreement with tribal government. (NRS 453D.200)  The provisions of this chapter shall be deemed to apply to the extent specified in any agreement with a tribal government in this State entered into pursuant to NRS 223.250.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

FEES

     NAC 453D.200  Initial issuance of license and renewal; collection of assessment for oversight by Department. (NRS 453D.200, 453D.230)

     1.  Except as otherwise provided in subsection 1 of NRS 453D.230, the Department will charge and collect the following fees:

 

For the initial issuance of a license for a retail marijuana store..................

                $20,000

For the renewal of a license for a retail marijuana store............................

                    6,600

For the initial issuance of a license for a marijuana cultivation facility.....

                  30,000

For the renewal of a license for a marijuana cultivation facility................

                  10,000

For the initial issuance of a license for a marijuana product manufacturing facility...........................................................................

                  10,000

For the renewal of a license for a marijuana product manufacturing facility...................................................................................................

                    3,300

For the initial issuance of a license for a marijuana testing facility...........

                  15,000

For the renewal of a license for a marijuana testing facility......................

                    5,000

For the initial issuance of a license for a marijuana distributor..................

                  15,000

For the renewal of a license for a marijuana distributor............................

                    5,000

 

     2.  Each marijuana establishment shall submit the fee required by subsection 1 to the Department annually.

     3.  For the ongoing activities of the Department relating to the oversight of marijuana establishments, not related to processing an application by a marijuana establishment, the Department will collect an assessment from each marijuana establishment for the time and effort attributed to the oversight of the marijuana establishment that is based upon the hourly rate established by the Department.

     4.  As used in this section, “license” includes a conditional license.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.205  Initial licensing fee; revocation of license for failure to pay. (NRS 453D.200, 453D.230)

     1.  Within 10 days after the issuance of a license pursuant to NAC 453D.272 or 453D.278, the applicant shall pay the initial licensing fee of:

     (a) For a marijuana cultivation facility, $30,000.

     (b) For a marijuana distributor, $15,000.

     (c) For a marijuana product manufacturing facility, $10,000.

     (d) For a marijuana testing facility, $15,000.

     (e) For a retail marijuana store, $20,000.

     2.  If an applicant fails to pay the initial licensing fee required by subsection 1 within the 10-day period, the Department will revoke the license.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.210  Department authorized to collect fee for costs of investigating complaint if substantiated; hourly rate. (NRS 453D.200)

     1.  The Department may charge and collect a fee from any marijuana establishment that is involved in a complaint submitted to the Department by a consumer to recover the costs of investigating the complaint after the investigation is completed if the complaint is substantiated. The fee will be based upon the hourly rate established for each investigator of marijuana establishments as determined by the budget of the Department.

     2.  As used in this section, “substantiated” means supported or established by evidence or proof.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

EXCISE TAX ON MARIJUANA

     NAC 453D.230  Provisions governing payment, collection, administration and enforcement of marijuana taxes also applicable to excise tax on marijuana and marijuana cultivation facilities. (NRS 453D.200)  The provisions of NRS 372A.200 to 372A.380, inclusive, which apply to:

     1.  The excise tax on marijuana, as defined in NRS 372A.220, also apply to the excise tax on marijuana imposed pursuant to NRS 453D.500.

     2.  A taxpayer, as defined in NRS 372A.250, also apply to a marijuana cultivation facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.233  Marijuana and marijuana products sold at retail marijuana store subject to sales tax; submission of returns and payments. (NRS 453D.200)  Marijuana and marijuana products sold pursuant to chapter 453D of NRS are subject to sales tax when sold at a retail marijuana store. Returns and payments must be submitted as provided in NRS 372.354 to 372.395, inclusive.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.236  Monthly filing of returns; payment of tax; maintenance of documentation and verification of payment; submission of financial statement upon request; calculation of fair market value at wholesale. (NRS 453D.200)

     1.  Each taxpayer shall, on or before the last day of the month immediately following each month for which the taxpayer is subject to the imposition of the excise tax on marijuana, file with the Department a return on a form prescribed by the Department and remit to the Department any tax due for the month covered by the return. Each such taxpayer shall file a return even if the taxpayer has no liability for the tax.

     2.  Each taxpayer shall pay the excise tax on marijuana to the Department upon the first sale of marijuana or marijuana products to a marijuana cultivation facility, marijuana product manufacturing facility, retail marijuana store or a consumer.

     3.  If a marijuana cultivation facility sells marijuana to another marijuana cultivation facility and pays to the Department the excise tax imposed by NRS 453D.500 on the sale, the excise tax imposed by NRS 453D.500 is not required for any subsequent wholesale sale of that marijuana.

     4.  Each marijuana cultivation facility and retail marijuana store shall keep all supporting documentation for verification that the excise tax imposed by NRS 453D.500 was paid on the first wholesale sale of marijuana.

     5.  The Department may require a marijuana establishment to submit a financial statement as determined to be necessary by the Department to ensure the collection of any taxes which may be owed by the marijuana establishment.

     6.  The Department will calculate the fair market value at wholesale using the reported sales or transfer of marijuana in each category of marijuana described in this subsection using the methodology described in paragraphs (a) to (f), inclusive. The fair market value at wholesale of:

     (a) Marijuana bud must be calculated on the basis of the total weight of all marijuana bud that is sold, excluding the inadvertent inclusion of an inconsequential amount of marijuana bud in a sale of marijuana trim.

     (b) Marijuana trim must be calculated on the basis of the total weight of all marijuana trim that is sold, including the total weight of an inconsequential amount of marijuana bud which is inadvertently included.

     (c) Immature marijuana plants must be calculated on the basis of the total number of immature marijuana plants sold.

     (d) Whole wet marijuana plants must be calculated on the basis of the total weight of the entire whole wet marijuana plant. A marijuana cultivation facility shall maintain records of the time each batch containing whole wet marijuana plants is harvested and weighed which contain the weight of each plant, are in writing and are created contemporaneously with the harvesting and weighing. To determine the total weight of the whole wet marijuana plant:

          (1) The plant must not undergo any further processing, including, without limitation, drying the plant and subsequently selling separately the marijuana bud and marijuana trim from the plant, before being weighed; and

          (2) The plant must be weighed within 2 hours after the harvesting of the batch containing the plant and without any further processing of the plant, including, without limitation, increasing the ambient temperature of the room in which the plant is held or drying, curing or trimming the plant. If the whole wet marijuana plant is not weighed within 2 hours after the harvest of the batch containing the plant or is subjected to further processing, the fair market value at wholesale of the plant must not be calculated using this paragraph and must be calculated using paragraph (a) or (b).

     (e) Marijuana seeds must be calculated on the basis of the total number of seeds sold.

     (f) Any other category of marijuana must be determined by the Department on a case-by-case basis.

     7.  As used in this section:

     (a) “Excise tax on marijuana” has the meaning ascribed to it in NRS 372A.220.

     (b) “Taxpayer” has the meaning ascribed to it in NRS 372A.250.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.239  Annual reimbursement of costs to local governments. (NRS 372A.290, 453D.200)  Within 30 days after February 27, 2018, and on November 1 of each year thereafter, the Department will reimburse the costs of each local government of carrying out the provisions of chapters 453A and 453D of NRS as follows:

     1.  By distributing a total amount of $1,500,000, divided equally, to each county; and

     2.  By distributing a total amount of $3,500,000 to each locality, divided on the basis of the population of each locality, to each locality in which a marijuana establishment or a medical marijuana establishment is located on:

     (a) February 16, 2018, for the initial distribution pursuant to this subsection; and

     (b) September 1 of each year for each subsequent distribution pursuant to this subsection.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

MARIJUANA ESTABLISHMENTS

Licensing

     NAC 453D.250  Designation of persons responsible for providing information, signing documents and ensuring certain actions are taken. (NRS 453D.200)

     1.  When a marijuana establishment is required pursuant to this chapter or chapter 453D of NRS to provide information, sign documents or ensure actions are taken, a person identified in this subsection shall comply with the requirement on behalf of the marijuana establishment:

     (a) If a natural person is applying for a license for a marijuana establishment, the natural person;

     (b) If a corporation is applying for a license for a marijuana establishment, a natural person who is an officer of the corporation;

     (c) If a partnership is applying for a license for a marijuana establishment, a natural person who is a partner;

     (d) If a limited-liability company is applying for a license for a marijuana establishment, a manager or, if the limited-liability company does not have a manager, a natural person who is a member of the limited-liability company;

     (e) If an association or cooperative is applying for a license for a marijuana establishment, a natural person who is a member of the governing board of the association or cooperative;

     (f) If a joint venture is applying for a license for a marijuana establishment, a natural person who signed the joint venture agreement; and

     (g) If a business organization other than those described in paragraphs (b) to (f), inclusive, is applying for a license for a marijuana establishment, a natural person who is a member of the business organization.

     2.  For the purposes of this chapter and chapter 453D of NRS, the following persons must comply with the provisions governing owners, officers and board members of a marijuana establishment:

     (a) If a corporation is applying for a license for a marijuana establishment, the officers of the corporation;

     (b) If a partnership is applying for a license for a marijuana establishment, the partners;

     (c) If a limited-liability company is applying for a license for a marijuana establishment, the members of the limited-liability company;

     (d) If an association or cooperative is applying for a license for a marijuana establishment, the members of the association or cooperative;

     (e) If a joint venture is applying for a license for a marijuana establishment, the natural persons who signed the joint venture agreement; and

     (f) If a business organization other than those described in paragraphs (a) to (e), inclusive, is applying for a license for a marijuana establishment, the members of the business organization.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.255  Applicability of chapter to persons owning 5 percent interest or more in marijuana establishment; exception if public interest will be served. (NRS 453D.200)

     1.  Except as otherwise required in subsection 2, the requirements of this chapter concerning owners of marijuana establishments only apply to a person with an aggregate ownership interest of 5 percent or more in a marijuana establishment.

     2.  If, in the judgment of the Department, the public interest will be served by requiring any owner with an ownership interest of less than 5 percent in a marijuana establishment to comply with any provisions of this chapter concerning owners of marijuana establishments, the Department will notify that owner and he or she must comply with those provisions.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.258  Measurement of distance of proposed marijuana establishment from school or community facility. (NRS 453D.200)  For the purposes of paragraph (c) of subsection 5 of NRS 453D.210, the distance must be measured from the front door of the proposed marijuana establishment to the closest point of the property line of a school or community facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.260  Request for applications to operate establishment: Notice by Department; required provisions; time period for submission of applications. (NRS 453D.200)

     1.  At least once each year, the Department will determine whether a sufficient number of marijuana establishments exist to serve the people of this State and, if the Department determines that additional marijuana establishments are necessary, the Department will issue a request for applications to operate a marijuana establishment. The Department will provide notice of a request for applications to operate a marijuana establishment by:

     (a) Posting on the Internet website of the Department that the Department is requesting applicants to submit applications;

     (b) Posting a copy of the request for applications at the principal office of the Department, at the Legislative Building and at not less than three other separate, prominent places within this State; and

     (c) Making notification of the posting locations using the electronic mailing list maintained by the Department for marijuana establishment information.

     2.  When the Department issues a request for applications pursuant to this section, the Department will include in the request the point values that will be allocated to each applicable portion of the application.

     3.  The Department will accept applications in response to a request for applications issued pursuant to this section for 10 business days beginning on the date which is 45 business days after the date on which the Department issued the request for applications.

     4.  If the Department receives an application in response to a request for applications issued pursuant to this section on a date other than the dates set forth in subsection 3, the Department will not consider the application and must return the application to the entity that submitted the application.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.265  Submission of application by person who holds medical marijuana establishment registration certificate for marijuana establishment of same type; issuance of license; refund of fee if application not approved. (NRS 453D.200, 453D.230)

     1.  On or before November 15, 2018, a person who holds a medical marijuana establishment registration certificate may apply for not more than one license for a marijuana establishment of the same type by submitting:

     (a) A one-time, nonrefundable application fee of $5,000 and, for an application for a license for a:

          (1) Marijuana cultivation facility, an initial licensing fee of $30,000.

          (2) Marijuana distributor, an initial licensing fee of $15,000.

          (3) Marijuana product manufacturing facility, an initial licensing fee of $10,000.

          (4) Marijuana testing facility, an initial licensing fee of $15,000.

          (5) Retail marijuana store, an initial licensing fee of $20,000.

     (b) An application on a form prescribed by the Department which includes, without limitation:

          (1) Whether the applicant is applying for a license for a marijuana establishment for a marijuana cultivation facility, a marijuana distributor, a marijuana product manufacturing facility, a marijuana testing facility or a retail marijuana store;

          (2) The name of the proposed marijuana establishment, as reflected in both the medical marijuana establishment registration certificate held by the applicant and the articles of incorporation or other documents filed with the Secretary of State;

          (3) The physical address where the proposed marijuana establishment will be located and the physical address of any co-owned or otherwise affiliated marijuana establishments;

          (4) The mailing address of the applicant;

          (5) The telephone number of the applicant;

          (6) The electronic mail address of the applicant;

          (7) A signed copy of the Request and Consent to Release Application Form for Marijuana Establishment License prescribed by the Department;

          (8) An attestation that the information provided to the Department to apply for the license for a marijuana establishment is true and correct according to the information known by the affiant at the time of signing;

          (9) The signature of a natural person for the proposed marijuana establishment as described in subsection 1 of NAC 453D.250 and the date on which the person signed the application; and

          (10) Any other information that the Department may require.

     2.  Upon receipt of an application submitted pursuant to subsection 1, the Department will issue a license for a marijuana establishment to the applicant if the applicant:

     (a) Holds a medical marijuana establishment registration certificate issued pursuant to chapter 453A of NRS of the same type as the license for a marijuana establishment for which the applicant has applied; and

     (b) Satisfies the requirements of subsection 5 of NRS 453D.210.

     3.  If an application submitted pursuant to subsection 1 is not approved, the Department will refund the initial licensing fee included in the application to the applicant.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.268  Submission of application by person who holds medical marijuana establishment registration certificate for marijuana establishment of same type or different type; submission of application by person in response to request for applications. (NRS 453D.200, 453D.230)  On or before November 15, 2018, a person who holds a medical marijuana establishment registration certificate may apply for one or more licenses, in addition to a license issued pursuant to NAC 453D.265, for a marijuana establishment of the same type or for one or more licenses for a marijuana establishment of a different type, and on or after November 16, 2018, a person may apply for one or more licenses for a marijuana establishment by submitting an application in response to a request for applications issued pursuant to NAC 453D.260 which must include:

     1.  A one-time, nonrefundable application fee of $5,000.

     2.  An application on a form prescribed by the Department. The application must include, without limitation:

     (a) Whether the applicant is applying for a license for a marijuana establishment for a marijuana cultivation facility, a marijuana distributor, a marijuana product manufacturing facility, a marijuana testing facility or a retail marijuana store;

     (b) The name of the proposed marijuana establishment, as reflected in both the medical marijuana establishment registration certificate held by the applicant, if applicable, and the articles of incorporation or other documents filed with the Secretary of State;

     (c) The type of business organization of the applicant, such as individual, corporation, partnership, limited-liability company, association or cooperative, joint venture or any other business organization;

     (d) Confirmation that the applicant has registered with the Secretary of State as the appropriate type of business, and the articles of incorporation, articles of organization or partnership or joint venture documents of the applicant;

     (e) The physical address where the proposed marijuana establishment will be located and the physical address of any co-owned or otherwise affiliated marijuana establishments;

     (f) The mailing address of the applicant;

     (g) The telephone number of the applicant;

     (h) The electronic mail address of the applicant;

     (i) A signed copy of the Request and Consent to Release Application Form for Marijuana Establishment License prescribed by the Department;

     (j) If the applicant is applying for a license for a retail marijuana store, the proposed hours of operation during which the retail marijuana store plans to be available to sell marijuana to consumers;

     (k) An attestation that the information provided to the Department to apply for the license for a marijuana establishment is true and correct according to the information known by the affiant at the time of signing; and

     (l) The signature of a natural person for the proposed marijuana establishment as described in subsection 1 of NAC 453D.250 and the date on which the person signed the application.

     3.  Evidence of the amount of taxes paid, or other beneficial financial contributions made, to this State or its political subdivisions within the last 5 years by the applicant or the persons who are proposed to be owners, officers or board members of the proposed marijuana establishment.

     4.  A description of the proposed organizational structure of the proposed marijuana establishment, including, without limitation:

     (a) An organizational chart showing all owners, officers and board members of the proposed marijuana establishment;

     (b) A list of all owners, officers and board members of the proposed marijuana establishment that contains the following information for each person:

          (1) The title of the person;

          (2) The race, ethnicity and gender of the person;

          (3) A short description of the role in which the person will serve for the organization and his or her responsibilities;

          (4) Whether the person will be designated by the proposed marijuana establishment to provide written notice to the Department when a marijuana establishment agent is employed by, volunteers at or provides labor as a marijuana establishment agent at the proposed marijuana establishment;

          (5) Whether the person has served or is currently serving as an owner, officer or board member for another medical marijuana establishment or marijuana establishment;

          (6) Whether the person has served as an owner, officer or board member for a medical marijuana establishment or marijuana establishment that has had its medical marijuana establishment registration certificate or license, as applicable, revoked;

          (7) Whether the person has previously had a medical marijuana establishment agent registration card or marijuana establishment agent registration card revoked;

          (8) Whether the person is an attending provider of health care currently providing written documentation for the issuance of registry identification cards or letters of approval;

          (9) Whether the person is a law enforcement officer;

          (10) Whether the person is currently an employee or contractor of the Department; and

          (11) Whether the person has an ownership or financial investment interest in any other medical marijuana establishment or marijuana establishment.

     5.  For each owner, officer and board member of the proposed marijuana establishment:

     (a) An attestation signed and dated by the owner, officer or board member that he or she has not been convicted of an excluded felony offense, and that the information provided to support the application for a license for a marijuana establishment is true and correct;

     (b) A narrative description, not to exceed 750 words, demonstrating:

          (1) Past experience working with governmental agencies and highlighting past experience in giving back to the community through civic or philanthropic involvement;

          (2) Any previous experience at operating other businesses or nonprofit organizations; and

          (3) Any demonstrated knowledge, business experience or expertise with respect to marijuana; and

     (c) A resume.

     6.  Documentation concerning the size of the proposed marijuana establishment, including, without limitation, building and general floor plans with supporting details.

     7.  The integrated plan of the proposed marijuana establishment for the care, quality and safekeeping of marijuana from seed to sale, including, without limitation, a plan for testing and verifying marijuana, a transportation or delivery plan and procedures to ensure adequate security measures, including, without limitation, building security and product security.

     8.  A plan for the business which includes, without limitation, a description of the inventory control system of the proposed marijuana establishment to satisfy the requirements of NRS 453D.300 and NAC 453D.426.

     9.  A financial plan which includes, without limitation:

     (a) Financial statements showing the resources of the applicant;

     (b) If the applicant is relying on money from an owner, officer or board member, evidence that the person has unconditionally committed such money to the use of the applicant in the event the Department awards a license to the applicant and the applicant obtains the necessary approvals from the locality to operate the proposed marijuana establishment; and

     (c) Proof that the applicant has adequate money to cover all expenses and costs of the first year of operation.

     10.  Evidence that the applicant has a plan to staff, educate and manage the proposed marijuana establishment on a daily basis, which must include, without limitation:

     (a) A detailed budget for the proposed marijuana establishment, including pre-opening, construction and first-year operating expenses;

     (b) An operations manual that demonstrates compliance with this chapter;

     (c) An education plan which must include, without limitation, providing educational materials to the staff of the proposed marijuana establishment; and

     (d) A plan to minimize the environmental impact of the proposed marijuana establishment.

     11.  If the application is submitted on or before November 15, 2018, for a license for a marijuana distributor, proof that the applicant holds a wholesale dealer license issued pursuant to chapter 369 of NRS, unless the Department determines that an insufficient number of marijuana distributors will result from this limitation.

     12.  A response to and information which supports any other criteria the Department determines to be relevant, which will be specified and requested by the Department at the time the Department issues a request for applications which includes the point values that will be allocated to the applicable portions of the application pursuant to subsection 2 of NAC 453D.260.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.272  Ranking of applications for retail marijuana store; proportional allocation of licenses for retail marijuana stores within each county; notification to locality of acceptance of applicants; prevention of monopolistic practices; revision or disqualification of application for criminal history of applicant or other person named in application. (NRS 453D.200)

     1.  If the Department receives more than one application for a license for a retail marijuana store in response to a request for applications made pursuant to NAC 453D.260 and the Department determines that more than one of the applications is complete and in compliance with this chapter and chapter 453D of NRS, the Department will rank the applications, within each applicable locality for any applicants which are in a jurisdiction that limits the number of retail marijuana stores, in order from first to last based on compliance with the provisions of this chapter and chapter 453D of NRS and on the content of the applications relating to:

     (a) Whether the owners, officers or board members have experience operating another kind of business that has given them experience which is applicable to the operation of a marijuana establishment;

     (b) The diversity of the owners, officers or board members of the proposed marijuana establishment;

     (c) The educational achievements of the owners, officers or board members of the proposed marijuana establishment;

     (d) The financial plan and resources of the applicant, both liquid and illiquid;

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

     (f) The amount of taxes paid and other beneficial financial contributions, including, without limitation, civic or philanthropic involvement with this State or its political subdivisions, by the applicant or the owners, officers or board members of the proposed marijuana establishment;

     (g) Whether the owners, officers or board members of the proposed marijuana establishment have direct experience with the operation of a medical marijuana establishment or marijuana 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;

     (h) The experience of key personnel that the applicant intends to employ in operating the type of marijuana establishment for which the applicant seeks a license; and

     (i) Any other criteria that the Department determines to be relevant.

     2.  The Department will not require proof of zoning or land use approval to be submitted with an application for a license for a marijuana establishment and will not consider such approval when ranking applicants pursuant to subsection 1.

     3.  The Department will allocate the licenses for retail marijuana stores described in paragraph (d) of subsection 5 of NRS 453D.210 to jurisdictions within each county and to the unincorporated area of the county proportionally based on the population of each jurisdiction and of the unincorporated area of the county. Within each such jurisdiction or area, the Department will issue licenses for retail marijuana stores to the highest-ranked applicants until the Department has issued the number of licenses authorized for issuance. If two or more applicants have the same total number of points for the last application being awarded a license, the Department will select the applicant which has scored the highest number of points as related to the proposed organizational structure of the proposed marijuana establishment and the information concerning each owner, officer and board member of the proposed marijuana establishment, including, without limitation, the information provided pursuant to NAC 453D.265 or 453D.268. Notwithstanding the allocation of licenses pursuant to this subsection, upon the request of a county government, the Department may issue a license to a retail marijuana store located anywhere within that county if issuing such a license would not exceed the number of licenses authorized for issuance in the county pursuant to paragraph (d) of subsection 5 of NRS 453D.210.

     4.  After ranking applicants pursuant to subsection 1 and selecting applicants for the issuance of a license pursuant to subsection 3, the Department will notify each locality of the applicants selected to be issued a license within that locality.

     5.  To prevent monopolistic practices, the Department will ensure, in a county whose population is 100,000 or more, that the Department does not issue, to any person, group of persons or entity, the greater of:

     (a) One license to operate a retail marijuana store; or

     (b) More than 10 percent of the licenses for retail marijuana stores allocable in the county.

     6.  If the Department receives any findings from a report concerning the criminal history of an applicant or person who is proposed to be an owner, officer or board member of a proposed marijuana establishment that disqualify that person from being qualified to serve in that capacity, the Department will provide notice to the applicant and give the applicant an opportunity to revise its application. If a person who is disqualified from serving as an owner, officer or board member remains on the application as a proposed owner, officer or board member 90 days after the date on which the Department initially received the application, the Department may disqualify the application.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.274  Request by applicant for ranked application score; request to review scoring information; designation of Department employee to respond to request; maintenance of information in application file. (NRS 453D.200)

     1.  If an applicant for a license for a retail marijuana store wishes to know the score assigned to its application after review by the Department to establish a ranking pursuant to subsection 1 of NAC 453D.272, the applicant may submit a request for its application score in writing to the Department. Upon receipt of such a request, the Department will provide the score to the applicant in a timely manner.

     2.  If an applicant who receives an application score from the Department pursuant to subsection 1 wishes to review the scores assigned to each criterion in the application to generate the application score, the applicant may submit to the Department a request to review scoring information. Such a request must include the name of the owner, operator or board member of the applicant who will review scoring information on behalf of the applicant.

     3.  Upon receipt of a request to review scoring information pursuant to subsection 2, the Department will designate an employee of the Department to respond to the request and schedule and conduct the review of scoring information. Before conducting the review, the employee designated by the Department shall confirm that the identity of the person attending the review matches the person named in the request and make a copy of a document confirming the identity of the person. During the review, the employee designated by the Department shall allow the person attending the review to review the scores assigned to each criterion in the application of the applicant and a copy of the application for a license for a retail marijuana store submitted by the applicant for a period of not more than 30 minutes. The person attending the review may take notes on the information provided, but shall not photocopy, scan, record, photograph or otherwise duplicate the information. The employee designated by the Department to conduct the review shall not discuss or comment on the scores, the review of the application by the Department or any other application submitted to the Department.

     4.  Upon completion of a review of scoring information pursuant to subsection 3, the Department will maintain in the file of the applicant a copy of:

     (a) The scoring information provided during the review;

     (b) The documentation of identity provided to the employee designated by the Department to conduct the review; and

     (c) Information establishing the date and time of the review.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.278  Issuance of license if Department receives only one application in response to request for applications; notification to locality. (NRS 453D.200)  If, within 10 business days after the date on which the Department begins accepting applications in response to a request for applications issued pursuant to NAC 453D.260, the Department receives only one application from an applicant:

     1.  In a specific locality which limits the number of a type of marijuana establishment to one; or

     2.  Statewide, if the applicant is in a locality which does not limit the number of a type of marijuana establishment,

Ê and the Department determines that the application is complete and in compliance with this chapter and chapter 453D of NRS, the Department will issue a license for a marijuana establishment to that applicant in accordance with NRS 453D.210 and NAC 453D.282 and notify the locality in which the marijuana establishment will be located.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.282  Issuance of license is conditional until certain requirements for approval to begin operations are satisfied. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 2, the issuance of a license pursuant to NAC 453D.272 or 453D.278 is conditional and not an approval to begin operations as a marijuana establishment until such time as:

     (a) The marijuana establishment is in compliance with the zoning and land use rules adopted by the locality in which the marijuana establishment will operate or, after notice of the issuance of a license to the marijuana establishment pursuant to NAC 453D.272 or 453D.278, the locality does not affirm to the Department within a reasonable time that the proposed marijuana establishment will be in violation of zoning or land use rules adopted by the locality;

     (b) The locality has issued a business license for the operation of the marijuana establishment, or otherwise approved the applicant, for the operation of the marijuana establishment; and

     (c) The Department completes an inspection of the marijuana establishment.

     2.  If the locality in which a marijuana establishment is located does not issue business licenses and does not approve or disapprove marijuana establishments in its jurisdiction, a license for a marijuana establishment becomes an approval to begin operations as a marijuana establishment when:

     (a) The marijuana establishment is in compliance with the zoning and land use rules adopted by the locality; and

     (b) The Department completes an inspection of the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.285  Written notice of denial of application. (NRS 453D.200)  If the Department does not issue to an applicant a license for a marijuana establishment, the Department must provide written notice to the applicant stating that the Department did not issue a license to the applicant as a result of the provisions of NAC 453D.272 and 453D.278.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.288  Inspections. (NRS 453D.200)

     1.  The Department may, at any time it determines an inspection is needed, conduct an investigation into the premises, facilities, qualifications of personnel, methods of operation, policies and purposes of any marijuana establishment and of any person proposing to engage in the operation of a marijuana establishment. An inspection of a facility may include, without limitation, investigation of standards for safety from fire on behalf of the Department by the local fire protection agency. If a local fire protection agency is not available, the State Fire Marshal may conduct the inspection after the marijuana establishment pays the appropriate fee to the State Fire Marshal for such inspection.

     2.  The Department will not issue a license for a marijuana establishment until the Department completes an inspection of the marijuana establishment. Such an inspection may require more than one visit to the marijuana establishment.

     3.  The Department may conduct a preliminary walk-through of a marijuana establishment, upon request and subject to the availability of inspectors, to assist with questions and identify issues for correction before the inspection of the marijuana establishment. Before requesting a preliminary walk-through, a marijuana establishment must complete all construction and be near completion of all other requirements of the laws and regulations of this State. If the Department conducts a preliminary walk-through at the request of a marijuana establishment, the Department will issue an invoice to the marijuana establishment for the costs of the preliminary walk-through, including, without limitation, travel and inspection activities.

     4.  In addition to complying with the provisions of chapters 372A and 453D of NRS and chapter 372A of NAC governing the imposition of an excise tax on marijuana establishments, a marijuana establishment may not operate until it has been issued a license from the Department.

     5.  The Department will not issue a license for a marijuana establishment until the Department has received a satisfactory report of full compliance with and completion of all applicable public safety inspections required by state and local jurisdictions, including, without limitation, fire, building, health and air quality inspections, except as otherwise provided in NAC 453D.292.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.292  Authority of Department, Tax Commission and Executive Director relating to inspections and investigations, summoning of witnesses and issuance of subpoenas, administration of oaths and administration of provisions of chapter. (NRS 453D.200)

     1.  Submission of an application for a license for a marijuana establishment constitutes permission for entry to and reasonable inspection of the marijuana establishment by the Department, with or without notice. An inspector conducting an inspection pursuant to this section does not need to be accompanied during the inspection.

     2.  The Department may, upon receipt of a complaint against a marijuana establishment, except for a complaint concerning the cost of services, a complaint concerning the efficacy of marijuana or a complaint related to consumer service issues, conduct an investigation during the operating hours of the marijuana establishment, with or without notice, into the premises, facilities, qualifications of personnel, methods of operation, policies, procedures and records of that marijuana establishment or any other marijuana establishment which may have information pertinent to the complaint.

     3.  The Department may enter and inspect any building or premises at any time, with or without notice, to:

     (a) Secure compliance with any provision of this chapter or chapter 453D of NRS;

     (b) Prevent a violation of any provision of this chapter or chapter 453D of NRS; or

     (c) Conduct an unannounced inspection of a marijuana establishment in response to an allegation of noncompliance with this chapter or chapter 453D of NRS.

     4.  The Department may:

     (a) Summon witnesses to appear and testify on any subject material to its responsibilities under this chapter or chapter 453D of NRS. No property owner and no officer, director, superintendent, manager or agent of any company or corporation, whose property is wholly in one county, shall be required to appear, without his or her consent, at a place other than the county seat or at the nearest town to his or her place of residence or the principal place of business of such company or corporation. Such summons may be served by personal service by the Executive Director or his or her agent or by the sheriff of the county.

     (b) Except as otherwise provided in this paragraph, issue subpoenas to compel the attendance of witnesses and the production of books and papers and may seek to enforce the subpoenas by petition to any court of competent jurisdiction in the manner provided by law. The Department will not issue a subpoena to compel the production of books and papers that contain individually identifiable health information.

     5.  Any member of the Nevada Tax Commission, the Executive Director or any officer of the Department designated by the Commission or Executive Director may administer oaths to witnesses.

     6.  The Department and its agents may:

     (a) Inspect and examine all premises wherein marijuana is manufactured, sold or distributed;

     (b) Inspect all equipment and supplies in, upon or about such premises;

     (c) Summarily seize and remove from such premises any marijuana or marijuana products and impound any equipment, supplies, documents or records for the purpose of examination and inspection;

     (d) Demand access to and inspect, examine, photocopy and audit all papers, books and records of any applicant or licensee, on his or her premises, or elsewhere as practicable, and in the presence of the applicant or licensee, or his or her agent, respecting the gross income produced by any marijuana establishment, and require verification of income, and all other matters affecting the enforcement of the policy or any of the provisions of this chapter or chapter 453D of NRS; and

     (e) Demand access to and inspect, examine, photocopy and audit all papers, books and records of any affiliate of a licensee whom the Department knows or reasonably suspects is involved in the financing, operation or management of the licensee. The inspection, examination, photocopying and audit may take place on the premises of the affiliate or another location, as practicable, and in the presence of the affiliate or its agent.

     7.  The Department will enter and inspect at least annually, with or without notice, each building or the premises of a marijuana establishment to ensure compliance with the provisions of this chapter and chapter 453D of NRS. Nothing in this subsection shall be construed to prohibit an appropriate local administrative authority from conducting an inspection of the facilities or operations of a marijuana establishment as provided by the ordinance of a local government.

     8.  The Department will enter and inspect, with or without notice, any building or premises operated by a marijuana establishment within 72 hours after the Department is notified that the marijuana establishment is operating without a license for the marijuana establishment.

     9.  The Department will inspect the medical marijuana establishment and the marijuana establishment of a dual licensee at the same time using the same inspection team to ensure consistency and efficiency. The Department will conduct such an inspection in a manner which is not unduly burdensome for the dual licensee.

     10.  The Department will administer the provisions of this chapter and chapter 453D of NRS for the protection of the public and in the public interest in accordance with the policy of this State.

     11.  As used in this section, “individually identifiable health information” means information which identifies a natural person, or from which the identity of a natural person may reasonably be ascertained, and which relates to:

     (a) The past, present or future physical or mental health or condition of the person; or

     (b) The provision of health care to the person.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.295  Surrender of license if marijuana establishment has not received final inspection; extension of time for final inspection; fee not refundable. (NRS 453D.200)

     1.  If a marijuana establishment has not received a final inspection within 12 months after the date on which the Department issued a license to the marijuana establishment, the marijuana establishment must surrender the license to the Department. The Department may extend the period specified in this subsection if the Department, in its discretion, determines that extenuating circumstances prevented the marijuana establishment from receiving a final inspection within the period specified in this subsection.

     2.  If a marijuana establishment surrenders a license to the Department pursuant to this section, the applicable licensing fee paid by the marijuana establishment is not refundable.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.300  Notification to Department if marijuana establishment is closing; immediate surrender of license upon closing. (NRS 453D.200)  If a marijuana establishment is closing, the person identified in subsection 1 of NAC 453D.250 for the marijuana establishment must notify the Department of the closing at least 15 days before the marijuana establishment is closed, and the marijuana establishment must surrender its license to the Department immediately upon closing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.305  Renewal of license: Application and fee; submission of fingerprints; proof of accreditation required for marijuana testing facility. (NRS 453D.200)  A person or entity that wishes to renew a license for a marijuana establishment must annually submit to the Department:

     1.  Payment of the annual licensing fee for the renewal of the license;

     2.  An application in the format prescribed by the Department that includes:

     (a) The identification number of the marijuana establishment;

     (b) The name of the entity applying to renew the license, as reflected in the articles of incorporation or other documents filed with the Secretary of State;

     (c) The name of the person designated by the marijuana establishment to provide written notice to the Department when a marijuana establishment agent is employed by, volunteers at or provides labor as a marijuana establishment agent at the marijuana establishment;

     (d) A list and description of each of the following which has not been previously reported to the Department:

          (1) A conviction of an owner, officer or board member of the marijuana establishment of an excluded felony offense;

          (2) A civil penalty or judgment entered against an owner, officer or board member of the marijuana establishment; and

          (3) The initiation by a federal, state or local government of an investigation or proceeding against an owner, officer or board member of the marijuana establishment;

     (e) If the marijuana establishment is a retail marijuana store, the proposed hours of operation during which the retail marijuana store plans to be available to sell marijuana to consumers;

     (f) The number of the marijuana establishment agent registration card issued to each owner, officer or board member of the marijuana establishment;

     (g) For each owner, officer and board member of the marijuana establishment, whether the owner, officer or board member:

          (1) Has served as an owner, officer or board member for a medical marijuana establishment or marijuana establishment that has had its medical marijuana establishment registration certificate or license, as applicable, revoked;

          (2) Is an attending provider of health care currently providing written documentation for the issuance of registry identification cards or letters of approval;

          (3) Is a law enforcement officer;

          (4) Is an employee or contractor of the Department; or

          (5) Has an ownership or financial investment interest in any other medical marijuana establishment or marijuana establishment;

     (h) An attestation that the information provided to the Department to renew the license for the marijuana establishment is true and correct according to the information known by the affiant at the time of signing; and

     (i) The signature of a natural person for the marijuana establishment as described in subsection 1 of NAC 453D.250 and the date on which he or she signed the application;

     3.  For each person who is an owner, officer or board member of the marijuana establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Department 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:

     (a) If such a person holds 5 percent or less of the ownership interest in any one marijuana establishment or an ownership interest in more than one marijuana establishment of the same kind that, when added together, equals 5 percent or less, once in any 5-year period; and

     (b) If such a person holds more than 5 percent of the ownership interest in any one marijuana establishment or an ownership interest in more than one marijuana establishment of the same kind that, when added together, equals more than 5 percent, or is an officer or board member of a marijuana establishment, once in any 3-year period; and

     4.  If the marijuana establishment is a marijuana testing facility, proof that the marijuana testing facility is accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.308  Suspension of license for deficiencies in operation or services; submission of plan of correction; resubmission of plan by marijuana establishment or development of directed plan of correction by Department. (NRS 453D.200)

     1.  If the Department determines that there are any deficiencies in the operation of a marijuana establishment or in the provision of services by a marijuana establishment, the Department may suspend the license of the marijuana establishment and request a written plan of correction from the marijuana establishment.

     2.  A marijuana establishment whose license has been suspended pursuant to subsection 1 shall develop a plan of correction for each deficiency and submit the plan to the Department for approval within 10 business days after receipt of the statement of deficiencies. The plan of correction must include specific requirements for corrective action, which must include times within which the deficiencies are to be corrected.

     3.  If the plan submitted pursuant to subsection 2 is not acceptable to the Department, the Department may direct the marijuana establishment to resubmit a plan of correction or the Department may develop a directed plan of correction with which the marijuana establishment must comply.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.312  Grounds for denial of issuance or renewal of license; grounds for revocation of license; notice; opportunity to correct situation. (NRS 453D.200)

     1.  The Department will deny an application for the issuance or renewal of a license for a marijuana establishment if:

     (a) The application or the marijuana establishment is not in compliance with any provision of this chapter or chapter 453D of NRS; or

     (b) An owner, officer or board member of the marijuana establishment:

          (1) Is an employee or contractor of the Department;

          (2) Has an ownership or financial investment interest in a marijuana testing facility and also is an owner, officer or board member of a marijuana cultivation facility, marijuana distributor, marijuana product manufacturing facility or retail marijuana store; or

          (3) Provides false or misleading information to the Department.

     2.  The Department may revoke a license for a marijuana establishment if:

     (a) The marijuana establishment engages in a category I violation pursuant to NAC 453D.905;

     (b) An owner, officer or board member of the marijuana establishment has been convicted of an excluded felony offense; or

     (c) The Department receives formal notice from the applicable locality that the marijuana establishment has had its authorization to operate terminated.

     3.  The Department may deny an application for the issuance or renewal of a license for a marijuana establishment or may suspend or revoke any license issued under the provisions of this chapter and chapter 453D of NRS upon any of the following grounds:

     (a) Violation by the applicant or the marijuana establishment of any of the provisions of this chapter or chapter 453D of NRS.

     (b) The failure or refusal of an applicant or marijuana establishment to comply with any of the provisions of this chapter or chapter 453D of NRS.

     (c) The failure or refusal of a marijuana establishment to carry out the policies and procedures or comply with the statements provided to the Department in the application of the marijuana establishment.

     (d) Operating a marijuana establishment without a license.

     (e) The failure or refusal to return an adequate plan of correction to the Department within 10 days after receipt of a statement of deficiencies pursuant to NAC 453D.308.

     (f) The failure or refusal to correct any deficiency specified by the Department within the period specified in a plan of correction developed pursuant to NAC 453D.308.

     (g) The failure or refusal to cooperate fully with an investigation or inspection by the Department or its agent.

     (h) The failure to comply with the provisions of chapters 372A and 453D of NRS and chapter 372A of NAC governing the imposition of an excise tax on marijuana establishments.

     4.  If the Department denies an application for issuance or renewal of a license for a marijuana establishment or revokes such a license, the Department will provide notice to the applicant or marijuana establishment that includes, without limitation, the specific reasons for the denial or revocation.

     5.  Before denying an application for issuance or renewal of a license for a marijuana establishment or revoking such a license as a result of the actions of an owner, officer or board member of the marijuana establishment pursuant to paragraph (b) of subsection 1 or paragraph (b) of subsection 2, the Department may provide the marijuana establishment with an opportunity to correct the situation.

     6.  The Department will not deny an application to renew a license for a marijuana establishment or revoke a license based on a change in ownership of the marijuana establishment if the marijuana establishment is in compliance with the provisions of this chapter and chapter 453D of NRS.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.315  Requirements for transfer of all or a portion of ownership interest; reimbursement of costs to Department; notice to Department; disclosure of facts pertaining to representative capacity of certain persons to Department; permission of Department required for registering certain information in the books and records of the marijuana establishment; investigation. (NRS 453D.200)

     1.  A marijuana establishment may, in accordance with this section and upon submission of a statement signed by a person authorized to submit such a statement by the governing documents of the marijuana establishment, transfer all or any portion of its ownership to another party, and the Department shall transfer the license issued to the marijuana establishment to the party acquiring ownership, if the party who will acquire the ownership of the marijuana establishment submits:

     (a) If the party will acquire the entirety of the ownership interest in the marijuana establishment, evidence satisfactory to the Department that the party has complied with the provisions of NRS 453D.300 for the purpose of operating the marijuana establishment;

     (b) For the party and each person who is proposed to be an owner, officer or board member of the marijuana establishment, the name, address and date of birth of the person, a complete set of the person’s fingerprints and written permission of the person authorizing the Department 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) Proof satisfactory to the Department that, as a result of the transfer of ownership, no person, group of persons or entity will, in a county whose population is 100,000 or more, hold more than one license for a marijuana establishment or more than 10 percent of the licenses for marijuana establishments allocated to the county, whichever is greater.

     2.  A marijuana establishment shall reimburse the Department for all costs incurred by the Department to determine whether any change in ownership or other change was made to circumvent the provisions of this section which prohibit the transfer of a license for a marijuana establishment or to otherwise review or investigate a change in ownership.

     3.  A person shall not sell, purchase, assign, lease, grant or foreclose a security interest or otherwise transfer, convey or acquire in any manner whatsoever any interest of any sort whatsoever in or to any marijuana establishment or any portion thereof, whether the license for the marijuana establishment is conditional or not, or enter into or create a voting trust agreement or any other agreement of any sort in connection with any marijuana establishment or any portion thereof, except in accordance with this chapter and chapter 453D of NRS.

     4.  The owners, officers or board members of a marijuana establishment shall notify the Department on a form prescribed by the Department each time an ownership interest in any amount in the marijuana establishment is transferred.

     5.  A transfer of an ownership interest in any amount in a marijuana establishment is not effective until the Department has been notified on a form prescribed by the Department of the intent to transfer an ownership interest in the marijuana establishment and the Department has found that each person to whom an ownership interest is proposed to be transferred is individually qualified to be an owner of the marijuana establishment.

     6.  A person shall not transfer or convey in any manner whatsoever any interest in or to a marijuana establishment, or any portion thereof, to, or permit any investment therein or participation in the profits thereof by, any person acting as agent or trustee or in any other representative capacity for or on behalf of another person without first disclosing all facts pertaining to such representation to the Department, including, without limitation, a description of the reason for the transfer and any contract or other agreement describing the transaction.

     7.  A marijuana establishment, or an owner, officer or board member thereof, shall not cause or permit any stock certificate or other evidence of beneficial interest in the marijuana establishment to be registered in the books or records of the marijuana establishment in the name of any person other than the true and lawful owner of the beneficial interest without the written permission of the Department.

     8.  An ownership interest in a marijuana establishment may only be transferred to a natural person or, if the person receiving an ownership interest is not a natural person, the recipient must disclose the percentage of the ownership interest in the marijuana establishment received by each person who has an ownership interest in the recipient.

     9.  A request to transfer an ownership interest in a marijuana establishment which holds a conditional license must be accompanied by a notarized attestation, signed by a person authorized to submit such an attestation by the governing documents of the marijuana establishment, declaring that the prospective owner will build and operate the marijuana establishment at standards that meet or exceed the criteria contained in the original application for the marijuana establishment.

     10.  The owners of a marijuana establishment may request the transfer of any portion or the entirety of the ownership interest in the marijuana establishment to any existing owner or combination of existing owners of the marijuana establishment by submitting to the Department:

     (a) A completed Transfer of Interest Form prescribed by the Department;

     (b) All contracts or other agreements which describe the ownership transaction; and

     (c) Proof satisfactory to the Department that no monopoly will be created.

     11.  The owners of a marijuana establishment may request the transfer of any portion or the entirety of the ownership interest in the marijuana establishment to any natural person who holds an ownership interest in another marijuana establishment or any person whose ownership interest is entirely held by natural persons who hold an ownership interest in another marijuana establishment by submitting to the Department:

     (a) A completed Transfer of Interest Form prescribed by the Department;

     (b) All contracts or other agreements which describe the ownership transaction;

     (c) Identification of each marijuana establishment in which any person who is proposed to receive an ownership interest in the marijuana establishment which is the subject of the request holds an ownership interest;

     (d) A proposed organizational chart for the marijuana establishment which is the subject of the request;

     (e) A copy of any document required to be filed with the Secretary of State, if applicable;

     (f) A copy of any document required to be revised as a result of the proposed transfer relating to a fictitious name, if applicable;

     (g) An updated description of all shares issued in the marijuana establishment and the shares issued per owner as a result of the proposed transfer, if applicable;

     (h) A copy of a business license issued to the marijuana establishment by a locality which is revised to reflect the proposed transfer, if applicable; and

     (i) Proof satisfactory to the Department that no monopoly will be created.

     12.  The owners of a marijuana establishment may request the transfer of any portion or the entirety of the ownership interest in the marijuana establishment to any natural person, regardless of whether the natural person holds an ownership interest in another marijuana establishment, or any person whose ownership interest is not entirely held by natural persons who hold an ownership interest in another marijuana establishment by submitting to the Department:

     (a) A completed Transfer of Interest Form prescribed by the Department;

     (b) All contracts or other agreements which describe the ownership transaction;

     (c) A complete set of the fingerprints of each natural person who will receive an ownership interest and written permission of each such person authorizing the Department 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) Proof that a completed application for a marijuana establishment agent registration card has been submitted for each person who will receive an ownership interest;

     (e) A proposed organizational chart for the marijuana establishment;

     (f) A copy of any document required to be filed with the Secretary of State, if applicable;

     (g) A copy of any document required to be revised as a result of the proposed transfer relating to a fictitious name, if applicable;

     (h) An updated description of all shares issued in the marijuana establishment and the shares issued per owner as a result of the proposed transfer, if applicable;

     (i) A copy of a business license issued to the marijuana establishment by a locality which is revised to reflect the proposed transfer, if applicable; and

     (j) Proof satisfactory to the Department that no monopoly will be created.

     13.  The Department will conduct such investigation of a request submitted pursuant to subsection 10, 11 or 12 and of each person proposed to receive an ownership interest in a marijuana establishment as a result of such a request as the Department determines is necessary. If the Department, as a result of such an investigation, determines additional information is necessary to complete the investigation, the marijuana establishment shall submit such information to the Department in a timely fashion. Upon completion of the investigation, the Department will:

     (a) If the requested change in ownership does not violate any provision of this chapter or chapter 453D of NRS or any other relevant law or regulation:

          (1) Notify the marijuana establishment in writing that the request has been approved;

          (2) Update its records to reflect the new ownership of the marijuana establishment; and

          (3) Notify the locality in which the marijuana establishment is located of the change in ownership of the marijuana establishment.

     (b) If the requested change in ownership violates any provision of this chapter, chapter 453D of NRS or any other relevant law or regulation, notify the marijuana establishment in writing that the request has been denied and state the reason for denial.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Component Marijuana Establishments

     NAC 453D.330  Legal status as separate entity; issuance of certificate of approval by Department; shared secured storage area; requirements for buildings and location; inspection and other requirements to commence operations; expansion of operations; powers and duties in operation; request for exception from inspection. (NRS 453D.200)

     1.  Each component marijuana establishment retains its individual legal status as a separate entity from the combined marijuana establishment of which it is a part and each other component marijuana establishment which is a part of the same combined marijuana establishment.

     2.  The Department will not issue to a combined marijuana establishment a license for a marijuana establishment, but the combined marijuana establishment will instead be deemed to exist for the efficient operation and regulation of the component marijuana establishments which are a part of the combined marijuana establishment and will be issued a certificate of approval by the Department upon a determination by the Department that the combined marijuana establishment has complied with the provisions of this section.

     3.  The component marijuana establishments of a combined marijuana establishment may share a single, secured storage area if the inventory from each component marijuana establishment is securely segregated within the secured storage area apart from the inventory of all other component marijuana establishments.

     4.  The building infrastructure, security systems and other facilities, including, without limitation, common entrances, exits, break rooms, locker rooms, loading docks and other areas determined by the Department to be expedient for business and appropriate for the site, may be combined and shared among the component marijuana establishments of a combined marijuana establishment.

     5.  Each component marijuana establishment must be located in a commercial or industrial zone or overlay as approved by the locality and comply with all local ordinances and rules pertaining to zoning, land use and signage.

     6.  Except as otherwise provided in subsection 13, each component marijuana establishment within a combined marijuana establishment must be inspected before commencing operations and be ready to commence operations before any component marijuana establishment within the combined marijuana establishment may commence operations. A component marijuana establishment need not actually commence or intend to immediately commence operations to satisfy the requirements of this subsection.

     7.  For the purposes of subsection 6, a component marijuana establishment is ready to commence operations if the component marijuana establishment:

     (a) Is a cultivation facility, as defined in NRS 453A.056 or marijuana cultivation facility and has demonstrated the successful installation and operation of lights, plumbing, heating, ventilation and air-conditioning systems, humidity control systems, carbon dioxide control systems and all other growing technical facilities, including all related control systems, for at least one growing unit. A growing unit must:

          (1) Be serviced by all building facilities and technology and have all other features described to perform growing operations at all stages of growth in the application for a medical marijuana establishment registration certificate or license for the cultivation facility or marijuana cultivation facility;

          (2) Have the capacity to nourish clones, germinate seedlings, attain vegetative growth, flower plants to maturity, dry and cure cut plants, trim and package finished plants and store finished marijuana product in compliance with this chapter, chapters 453A and 453D of NRS and chapter 453A of NAC, as applicable; and

          (3) Consist of one or more growing tables, enclosed pods or rooms.

     (b) Is a facility for the production of edible marijuana products or marijuana-infused products, as defined in NRS 453A.105 or marijuana product manufacturing facility and has demonstrated the proper, safe installation of all extraction, cooking or other equipment and all plumbing, ventilation, solvent lines, electricity, electrical lines, refrigerators and all other production equipment.

     8.  A component marijuana establishment which has demonstrated that it is ready to commence operations pursuant to subsection 7 may expand operations within a previously inspected and approved space to the level described in its application for a license for a marijuana establishment without further inspection or approval. The Department may inspect such a component marijuana establishment as often as it determines to be necessary.

     9.  Before the Department will issue a certificate of approval for a combined marijuana establishment, all walls, ceilings, floors, electrical cabling, plumbing, general lighting for purposes other than cultivation and ducting for heating, ventilation or air-conditioning systems for each component marijuana establishment must be completed as specified in the floorplan submitted to the Department as part of the application for a license for a marijuana establishment for the component marijuana establishment at a level sufficient to obtain a certificate of occupancy issued by the locality.

     10.  Each certificate of approval issued by the Department to a combined marijuana establishment must specify which types of marijuana establishments are approved to operate at the location of the combined marijuana establishment.

     11.  A combined marijuana establishment may:

     (a) Allow the marijuana establishment agents or medical marijuana establishment agents of each component marijuana establishment to move between the component marijuana establishments of the combined marijuana establishment if each such marijuana establishment agent or medical marijuana establishment agent holds and carries on his or her person a marijuana establishment agent registration card or medical marijuana establishment agent registration card, as applicable, for each kind of marijuana establishment or medical marijuana establishment to be entered.

     (b) Allow a marijuana establishment agent or medical marijuana establishment agent of any component marijuana establishment to perform work functions for any component marijuana establishment if each such marijuana establishment agent or medical marijuana establishment agent holds and carries on his or her person a marijuana establishment agent registration card or medical marijuana establishment agent registration card, as applicable, for each kind of marijuana establishment or medical marijuana establishment at which work functions are performed.

     (c) Share equipment which is not specific to the operation of a component marijuana establishment, including, without limitation, motor vehicles, among all component marijuana establishments.

     (d) Not allow a component marijuana establishment to share equipment which is specific to the operation of the component marijuana establishment, including, without limitation, extraction devices which are specifically used by a marijuana product manufacturing facility or cultivation lights which are specifically used by a marijuana cultivation facility, with another component marijuana establishment.

     12.  Each component marijuana establishment shall maintain separate operations from other component marijuana establishments and the combined marijuana establishment of which the component marijuana establishment is a part by:

     (a) Holding a license for a marijuana establishment or a medical marijuana establishment registration certificate and being individually approved, separate from all other marijuana establishments or medical marijuana establishments operating on the same parcel of real estate, to operate as a business by all relevant jurisdictions and authorities, as applicable.

     (b) Maintaining separately from all other component marijuana establishments and being able to present financial records which comply with generally accepted accounting principles.

     (c) Filing all financial disclosures and tax documents separately from all other component marijuana establishments.

     13.  A component marijuana establishment may submit a written request for an exception from the requirements of subsection 6. Such a written request must include a detailed justification of the necessity of the request. The Department may grant such a request for good cause shown, but will not consider any issues relating to financial outlays or difficulties with a vendor or supplier in preparing all component marijuana establishments for inspection to be good cause. If the Department grants such a request and the inspection of the component marijuana establishment which submitted the request is successful, the Department may permit the component marijuana establishment to operate for a period of time approved by the Department. Any certificate of approval issued to the combined marijuana establishment must be temporary and indicate that not all component marijuana establishments have been approved to operate. A final certificate of approval may only be issued to the combined marijuana establishment after each component marijuana establishment has satisfied the requirements of this section, paid all applicable fees and satisfied all applicable requirements of state or local law, regulation or ordinance.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Marijuana Establishment Agent Registration Cards

     NAC 453D.340  Submission of information by marijuana establishment to obtain or renew registration card for person employed by or contracted with establishment or for volunteer; fingerprinting and application fee; issuance of registration card; temporary registration; registration card required for officer, board member and person holding more than 5 percent ownership interest in marijuana establishment. (NRS 453D.200)

     1.  To obtain or renew a marijuana establishment agent registration card, for a person employed by or contracted with a marijuana establishment or a person who volunteers at a marijuana establishment other than a consultant who performs professional services for the marijuana establishment, the marijuana establishment shall submit to the Department:

     (a) A copy of any valid government-issued identification card of the person which includes a photograph, the current address and the date of birth of the person.

     (b) A statement signed by the person pledging not to dispense or otherwise divert marijuana to any person who is not authorized to possess marijuana in accordance with the provisions of this chapter and chapter 453D of NRS.

     (c) A statement signed by the person asserting that he or she has not previously had a medical marijuana establishment agent registration card or marijuana establishment agent registration card revoked.

     (d) An attestation signed and dated by the person that the person has not been convicted of an excluded felony offense.

     (e) A complete set of the person’s fingerprints and written permission of the person authorizing the Department 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.

     (f) Authorization for the Department to obtain any other information necessary to complete a background check of the person.

     (g) An application fee of $75.

     (h) Such other information as the Department may require.

     2.  A person who:

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

     (b) Is less than 21 years of age,

Ê shall not serve as a marijuana establishment agent.

     3.  If an applicant for registration as a marijuana establishment agent satisfies the requirements of this section and is not disqualified from serving as such an agent pursuant to this section or any other applicable law or regulation, the Department will issue to the person a marijuana establishment agent registration card.

     4.  An applicant for registration or renewal of registration as a marijuana establishment agent is deemed temporarily registered as a marijuana establishment agent on the date on which a complete application for registration or renewal of registration is submitted to the Department. A temporary registration as a marijuana establishment agent expires 30 days after the date upon which the application is received. The Department will provide verification of temporary registration to an applicant at the time the Department receives the application.

     5.  Each officer or board member of a marijuana establishment, and each person who holds more than 5 percent of the ownership interest in a marijuana establishment, shall obtain a marijuana establishment agent registration card.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.345  Submission of applications electronically. (NRS 453D.200)  An applicant submitting an application for a marijuana establishment agent registration card pursuant to NAC 453D.340 or renewing, amending, changing or replacing a marijuana establishment agent registration card shall submit the application electronically in the format prescribed by the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.348  Categories of registration cards. (NRS 453D.200)

     1.  The Department will issue marijuana establishment agent registration cards for each of the following categories:

     (a) A marijuana cultivation facility;

     (b) A marijuana distributor;

     (c) A marijuana product manufacturing facility;

     (d) A marijuana testing facility;

     (e) A retail marijuana store; or

     (f) An independent contractor who provides labor to a marijuana establishment or an employee of such an independent contractor.

     2.  Each marijuana establishment agent registration card issued pursuant to NAC 453D.340 must indicate the applicable category. A person who is employed by or volunteers at a marijuana establishment and to whom a marijuana establishment agent registration card is issued may only be employed by or volunteer at the type of marijuana establishment for which he or she is registered. Such a person may hold more than one category of marijuana establishment agent registration card and may volunteer or work at any marijuana establishment in this State for which the category of the marijuana establishment agent registration card authorizes the person to volunteer or work.

     3.  A marijuana establishment agent registration card issued pursuant to NAC 453D.340 to an independent contractor or an employee of an independent contractor authorizes the independent contractor or employee to provide labor to any marijuana establishment in this State.

     4.  If a marijuana establishment agent also holds a valid medical marijuana establishment agent registration card, the marijuana establishment agent is authorized to work in any marijuana establishment or dual licensee for which the category of the marijuana establishment agent registration card and medical marijuana establishment agent registration card authorizes the person to volunteer or work.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.352  Training and instruction required before agent may begin work or service as volunteer. (NRS 453D.200)

     1.  A marijuana establishment shall ensure that training is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent at the marijuana establishment. Such training must include, without limitation:

     (a) The proper use of security measures and controls that have been adopted by the marijuana establishment for the prevention of diversion, theft or loss of marijuana;

     (b) Procedures and instructions for responding to an emergency; and

     (c) State and federal statutes and regulations related to the use of marijuana.

     2.  In addition to the training set forth in subsection 1, a retail marijuana store shall ensure that instruction is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent to the retail marijuana store. Such instruction must include, without limitation:

     (a) The different strains of marijuana;

     (b) The different methods of using marijuana and marijuana products;

     (c) Learning to recognize signs of marijuana abuse, impairment or instability in the use of marijuana by a consumer;

     (d) Clinical effects of marijuana on the human body and how THC affects the consumer;

     (e) Required warnings and literature which must be supplied to the consumer;

     (f) Methods of refusing entry or sales to prohibited persons, including, without limitation:

          (1) Verifying identification and using age verification devices;

          (2) Education on the effects of marijuana on persons under 21 years of age; and

          (3) Recognition of false or altered identification;

     (g) Understanding the role of law enforcement in confirming compliance with laws and regulations relating to marijuana;

     (h) Applicable state and local laws and regulations regarding marijuana;

     (i) Preventing unlawful consumption of marijuana, including, without limitation, information regarding laws which prohibit open or public consumption of marijuana;

     (j) Preventing the use of marijuana by persons under the age of 21 years, including, without limitation, laws which prohibit such use and the penalties for the violation of such laws;

     (k) How to prevent and address disturbances; and

     (l) The responsibility of the marijuana establishment agent to put into effect strategies adopted by the marijuana establishment to prevent the diversion of marijuana.

     3.  In addition to the training set forth in subsection 1, a marijuana testing facility shall ensure that instruction is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent to the marijuana testing facility. Such instruction must include, without limitation:

     (a) The good laboratory practices adopted by the marijuana testing facility; and

     (b) The standard operating procedures and the quality control and quality assurance programs of the marijuana testing facility.

     4.  In addition to the training set forth in subsection 1, a marijuana cultivation facility shall ensure that instruction is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent to the marijuana cultivation facility. Such instruction must include, without limitation:

     (a) The methods of cultivation used by the marijuana cultivation facility;

     (b) The methods of fertilization used by the marijuana cultivation facility;

     (c) Methods for recognizing the signs of insect infestation, pathogens and disease in marijuana plants, and the procedures for eradication and the safe disposal of plants so affected;

     (d) The nutritional requirements of marijuana plants at various growth stages, including, without limitation, proper mixing and dispersal of fertilizer, flushing procedures and procedures for postharvest trimming, drying and curing; and

     (e) The safe handling of equipment, including, without limitation, high-intensity discharge lamps, electrical ballasts, pumps, fans, cutting implements and other equipment for cultivation.

     5.  In addition to the training set forth in subsection 1, a marijuana product manufacturing facility shall ensure that instruction is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent to the marijuana product manufacturing facility. Such instruction must include, without limitation:

     (a) Understanding the difference between concentrated marijuana, topical products and marijuana products, as applicable to the operations of the marijuana product manufacturing facility;

     (b) The procedures used by the marijuana product manufacturing facility to create concentrated marijuana and marijuana products; and

     (c) The proper procedures for handling concentrated marijuana and marijuana products, including, without limitation, the procedures used to prepare, produce, package and store such products as required by the provisions of this chapter and chapter 453D of NRS.

     6.  In addition to the training set forth in subsection 1, a marijuana distributor shall ensure that instruction is provided to a marijuana establishment agent before that person begins to work or volunteer at or provide labor as a marijuana establishment agent to the marijuana distributor. Such instruction must include, without limitation:

     (a) Procedures for the proper handling of marijuana plants, usable marijuana, concentrated marijuana and marijuana products;

     (b) Procedures for the proper transportation and storage of marijuana plants, usable marijuana, concentrated marijuana and marijuana products; and

     (c) Information regarding the type of driver’s license which must be maintained for the loads expected to be transported.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.355  Request for change to name or address on registration card. (NRS 453D.200)  To make a change to the name or address on a marijuana establishment agent registration card, the marijuana establishment agent must submit to the Department a request for the change, which must include:

     1.  The name on and the number of the current marijuana establishment agent registration card of the cardholder;

     2.  The new name or address of the cardholder;

     3.  The effective date of the new name or address of the cardholder;

     4.  For a change of the address of the cardholder, the county and state in which the new address is located; and

     5.  For a change of the name of the cardholder, a copy of any valid government-issued identification card of the cardholder which includes a photograph of the person and the new name and address of the cardholder and documentation of the reason for the change.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.358  Request for replacement of registration card. (NRS 453D.200)  To request a replacement marijuana establishment agent registration card that has been lost, stolen or destroyed, the marijuana establishment agent must submit to the Department, within 3 working days after the card was lost, stolen or destroyed, a request for a replacement card which must include:

     1.  The name and date of birth of the cardholder;

     2.  If known, the number of the lost, stolen or destroyed marijuana establishment agent registration card; and

     3.  If the cardholder cannot provide the number of the lost, stolen or destroyed marijuana establishment agent registration card, a copy of:

     (a) Any valid government-issued identification card of the cardholder which includes a photograph of the person; or

     (b) A marijuana establishment agent registration card previously issued to the person.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.362  Expiration date on registration card that is changed or replaced. (NRS 453D.200)  If the Department issues a marijuana establishment agent registration card based on a request pursuant to NAC 453D.355 or 453D.358, the new marijuana establishment agent registration card must have the same expiration date as the marijuana establishment registration agent card being changed or replaced.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.365  Grounds for denial of issuance or renewal of registration card; grounds for revocation of registration card; notice of denial or revocation. (NRS 453D.200)

     1.  The Department will deny an application for or an application to renew a marijuana establishment agent registration card if the applicant:

     (a) Does not meet the requirements set forth in NAC 453D.340; or

     (b) Previously has had a marijuana establishment agent registration card or a medical marijuana establishment agent registration card revoked.

     2.  The Department may deny an application for or an application to renew a marijuana establishment agent registration card if the applicant provides false or misleading information to the Department.

     3.  The Department may revoke a marijuana establishment agent registration card if the marijuana establishment agent:

     (a) Sells or otherwise diverts marijuana to a person who is not authorized by law to possess marijuana in accordance with the provisions of this chapter and chapter 453D of NRS;

     (b) Has been convicted of an excluded felony offense; or

     (c) Engages in a category I violation pursuant to NAC 453D.905.

     4.  The Department may revoke a marijuana establishment agent registration card if the marijuana establishment agent knowingly violates any provision of this chapter or chapter 453D of NRS.

     5.  If the Department denies an application for or an application to renew a marijuana establishment agent registration card or revokes a marijuana establishment agent registration card, the Department will provide notice to the applicant or marijuana establishment agent that includes, without limitation, the specific reasons for the denial or revocation.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Requirements and Procedures for Operation

     NAC 453D.400  Posting of licenses and other authorization to conduct business in conspicuous place. (NRS 453D.200)  A marijuana establishment shall post its license for a marijuana establishment, business license and any other authorization to conduct business in a conspicuous place within the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.405  Requirements of dual licensee. (NRS 453D.200)  A dual licensee shall:

     1.  Comply with the provisions of chapter 453A of NAC with respect to the medical marijuana establishment operated by the dual licensee; and

     2.  Combine the location and operations of the medical marijuana establishment and marijuana establishment operated by the dual licensee as provided in NAC 453D.330.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.410  Operation in accordance with plans and specifications included in application; deviation from plans and specifications; documentation of change to facilities; inspection or audit of change to facilities. (NRS 453D.200)

     1.  Except as otherwise provided in this section, a marijuana establishment shall operate according to the plans and specifications included within the application for a license for the marijuana establishment submitted pursuant to NAC 453D.265 or 453D.268.

     2.  A marijuana establishment may operate in a manner that deviates from the plans or specifications included within its application for a license if the change would comply with state and local laws, regulations and ordinances and the marijuana establishment provides the Department with a written notification of its intent to make the change which includes, without limitation:

     (a) The name, physical address and license number of the marijuana establishment; and

     (b) A description of the proposed change.

     3.  Upon receipt of a written notification pursuant to subsection 2, the Department will add the information to the file that the Department maintains on the marijuana establishment.

     4.  A marijuana establishment which has completed a change to its facilities shall submit documentation of the change to the Department as soon as practicable, but in no event later than the date of the next scheduled inspection of the marijuana establishment by the Department.

     5.  The Department will inspect or audit any change to the facilities of a marijuana establishment that the Department deems necessary of inspection or auditing at the next inspection of the marijuana establishment by the Department or at such other time as the Department determines to be appropriate after the date that the marijuana establishment projects for completion of the change or notifies the Department of the completion of the change, whichever is earlier.

     6.  A marijuana establishment shall not commence the operation of any material change to the facilities or operations of the marijuana establishment until the Department completes an inspection or audit of the change or notifies the marijuana establishment that an inspection or audit is not necessary. Material changes include, without limitation, modifications to:

     (a) The infrastructure of the facilities of the marijuana establishment, including, without limitation, modifications requiring demolition or new construction of walls, plumbing, electrical infrastructure, heating, ventilation or air conditioning; and

     (b) The operating capability of the marijuana establishment, including, without limitation, the implementation of a new extraction device or removal of an existing extraction device, a change to the growing method from the method previously used and inspected or a change to the lighting technology, hydroponic system, pod or other contained growing system. The addition of one or more new pods which are identical to a pod that has already been inspected is not a material change.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.413  Written request for move to new location; issuance of new amended license upon approval of request. (NRS 453D.200)

     1.  A marijuana establishment may move to a new location under the jurisdiction of the same locality as its original location and regardless of the distance from its original location if the operation of the marijuana establishment at the new location has been approved by the locality. A locality 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.

     2.  Except as otherwise provided in subsection 1, a marijuana establishment that wishes to move to a new location or commence operations at a location other than the location contained in the application of the marijuana establishment must submit a written request for relocation to the Department. The written request for relocation must include, without limitation:

     (a) The name, current physical address, proposed new physical address and license or application number of the marijuana establishment;

     (b) Documentation of a public meeting in which the locality of the proposed new location considered the relocation request;

     (c) Documentation of land use approval for the new location by the locality;

     (d) A professional survey demonstrating that the proposed location meets the distance requirements set forth in paragraph (c) of subsection 5 of NRS 453D.210; and

     (e) A signed, written attestation that the operation of the marijuana establishment at the new address will meet or exceed the merits of the location specified in the application submitted by the marijuana establishment.

     3.  The Department will consider each request received pursuant to subsection 2 and, after reviewing the documentation contained in the request, determine whether the request should be approved. Upon approval, the Department will issue to the marijuana establishment a new license which is amended to reflect the new address.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.418  Persons authorized on premises; visitor identification badge and other requirements for other persons; maintenance and availability of visitor log. (NRS 453D.200)

     1.  Except as otherwise provided in this section, the only persons who may be on the premises of a retail marijuana store are:

     (a) A marijuana establishment agent;

     (b) A patient who holds a valid registry identification card or letter of approval;

     (c) The designated primary caregiver of a patient who holds a valid registry identification card or letter of approval;

     (d) A person who is not a resident of this State but is deemed to hold a valid registry identification card pursuant to NRS 453A.364;

     (e) A person inspecting the marijuana establishment, including, without limitation, a local government authority, pursuant to this chapter or chapter 453D of NRS; or

     (f) Any person not listed in paragraph (a) to (e), inclusive, who is at least 21 years of age.

     2.  The only persons who may be on the premises of a marijuana establishment other than a retail marijuana store are:

     (a) A marijuana establishment agent; or

     (b) A person inspecting the marijuana establishment, including, without limitation, a local government authority, pursuant to this chapter or chapter 453D of NRS.

     3.  Any person other than a person authorized to be on the premises of a marijuana establishment pursuant to subsection 1 or 2 must obtain a visitor identification badge from a marijuana establishment agent before entering the premises of the marijuana establishment.

     4.  A person who obtains a visitor identification badge pursuant to subsection 3, including, without limitation, an outside vendor or contractor:

     (a) Must be escorted and monitored by a marijuana establishment agent at all times he or she is on the premises of the marijuana establishment;

     (b) Must visibly display his or her visitor identification badge at all times he or she is on the premises of the marijuana establishment;

     (c) Must not handle any marijuana or money whatsoever; and

     (d) Must return the visitor identification badge to a marijuana establishment agent upon leaving the premises of the marijuana establishment.

     5.  Each marijuana establishment shall maintain a visitor log which includes the name of the visitor and the date, time and purpose of each visit by a person other than a person authorized to be on the premises of the marijuana establishment pursuant to subsection 1 or 2. The marijuana establishment shall make its visitor log available to the Department upon request.

     6.  Each regular, seasonal or temporary employee of or volunteer or person who provides labor as a marijuana establishment agent at a marijuana establishment must obtain a marijuana establishment agent registration card pursuant to the provisions of this chapter and may not be authorized to be on the premises of the marijuana establishment by obtaining a visitor identification badge pursuant to the provisions of this section.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.422  Development, documentation and implementation of certain policies and procedures; maintenance and availability. (NRS 453D.200)  A marijuana establishment shall:

     1.  Develop, document and implement policies and procedures regarding:

     (a) Job descriptions and employment contracts, including, without limitation:

          (1) The duties, authority, responsibilities and qualifications of personnel;

          (2) Supervision of personnel;

          (3) Training in and adherence to confidentiality requirements;

          (4) Periodic performance evaluations; and

          (5) Disciplinary actions.

     (b) Business records, such as manual or computerized records of assets and liabilities, monetary transactions, journals, ledgers and supporting documents, including, without limitation, agreements, checks, invoices and vouchers.

     (c) Inventory control, including, without limitation:

          (1) Tracking;

          (2) Packaging;

          (3) Acquiring marijuana from other marijuana establishments;

          (4) Disposing of unusable marijuana; and

          (5) Returning for a refund marijuana or marijuana products to the marijuana establishment from which the marijuana or marijuana products were acquired.

     (d) Consumer education and support, including, without limitation:

          (1) The availability of different strains of marijuana and the purported effects of the different strains;

          (2) Information about the purported effectiveness of various methods, forms and routes of administering marijuana;

          (3) The prohibition on the smoking of marijuana in public places, places open to the public and places exposed to public view and on federal lands;

          (4) Education on how marijuana impairs a person’s ability to operate a moving vehicle and that driving, operating or being in actual physical control of a vehicle while under the influence of marijuana or while impaired by marijuana is unlawful; and

          (5) That possession of marijuana exceeding a certain quantity remains a felony with various legal consequences.

     2.  Maintain copies of the policies and procedures developed pursuant to subsection 1 at the marijuana establishment and provide copies to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.426  Inventory control system; authorized sources for acquisition of marijuana and marijuana products; duties of establishment if loss incurred; maintenance and availability of documentation. (NRS 453D.200)

     1.  Each marijuana establishment shall designate in writing a marijuana establishment agent who has oversight of the inventory control system of the marijuana establishment.

     2.  Except as otherwise provided in subsection 3, a marijuana establishment shall only acquire marijuana or marijuana products from:

     (a) Another marijuana establishment, including, without limitation, a marijuana cultivation facility, a marijuana product manufacturing facility or a retail marijuana store; or

     (b) A medical marijuana establishment which is registered pursuant to chapter 453A of NRS.

     3.  A marijuana cultivation facility may acquire seeds for the cultivation of marijuana from any person if the acquisition of the seeds does not violate the provisions of chapter 453D of NRS.

     4.  A marijuana establishment shall not acquire concentrated marijuana or products containing concentrated marijuana from another marijuana establishment, except that a retail marijuana store or a marijuana product manufacturing facility may acquire concentrated marijuana or products containing concentrated marijuana from a marijuana product manufacturing facility. A marijuana cultivation facility may sell crude collected resins to a retail marijuana store if the crude collected resins are:

     (a) From a single batch;

     (b) Unprocessed; and

     (c) Not combined.

     5.  Each marijuana establishment shall establish and implement an inventory control system that documents:

     (a) Each day’s beginning inventory, acquisitions, harvests, sales, disbursements, disposal of unusable marijuana and ending inventory, including, without limitation, the:

          (1) Number of plants and cuttings;

          (2) Weight of flowers, measured in grams;

          (3) Weight of trim, measured in grams;

          (4) Quantity of THC, measured in milligrams; and

          (5) Weight of seeds, measured in grams.

     (b) When acquiring marijuana from another marijuana establishment:

          (1) A description of the marijuana acquired, including the amount, strain and batch number, lot number and production run number, or any combination thereof;

          (2) The name and identification number of the license of the marijuana establishment providing the marijuana;

          (3) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent providing the marijuana;

          (4) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent receiving the marijuana on behalf of the marijuana establishment; and

          (5) The date of acquisition.

     (c) When acquiring marijuana from a medical marijuana establishment registered pursuant to chapter 453A of NRS:

          (1) A description of the marijuana acquired, including the amount, strain and batch number, lot number and production run number, or any combination thereof;

          (2) The name and identification number of the medical marijuana establishment registration certificate of the medical marijuana establishment providing the marijuana;

          (3) The name and the number of the medical marijuana establishment agent registration card of the medical marijuana establishment agent providing the marijuana;

          (4) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent receiving the marijuana on behalf of the marijuana establishment; and

          (5) The date of acquisition.

     (d) For each batch of marijuana cultivated:

          (1) The batch number, lot number and production run number, as applicable.

          (2) Whether the batch originated from marijuana seeds or marijuana cuttings.

          (3) The strain of the marijuana seeds or marijuana cuttings planted.

          (4) The number of marijuana seeds or marijuana cuttings planted.

          (5) The date on which the marijuana seeds or cuttings were planted.

          (6) A list of all chemical additives used in the cultivation, including, without limitation, nonorganic pesticides, herbicides and fertilizers.

          (7) The number of marijuana plants grown to maturity.

          (8) Harvest information, including, without limitation:

               (I) The date of harvest;

               (II) The final yield weight of processed usable marijuana, in grams; and

               (III) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent responsible for the harvest.

          (9) The disposal of marijuana that is not usable marijuana, including:

               (I) A description of and reason for the marijuana being disposed of, including, if applicable, the number of failed or other unusable marijuana plants;

               (II) The date of disposal;

               (III) Confirmation that the marijuana was rendered unusable before disposal;

               (IV) The method of disposal; and

               (V) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent responsible for the disposal.

     (e) When providing marijuana to another marijuana establishment:

          (1) The amount, strain, batch number, lot number and production run number, as applicable, of marijuana provided to the marijuana establishment;

          (2) The name and license number of the other marijuana establishment;

          (3) The name and the number of the marijuana establishment agent registration card of the marijuana establishment agent who received the marijuana on behalf of the other marijuana establishment; and

          (4) The date on which the marijuana was provided to the marijuana establishment.

     (f) When receiving edible marijuana products from another marijuana establishment:

          (1) A description of the edible marijuana products received from the marijuana establishment, including the total weight of each edible marijuana product and the amount of THC, measured in milligrams, and the production run number of the marijuana in each edible marijuana product.

          (2) The total amount and production run number of marijuana in the edible marijuana products.

          (3) The name and:

               (I) License number of the marijuana establishment providing the edible marijuana products to the receiving marijuana establishment;

               (II) The number of the marijuana establishment agent registration card of the marijuana establishment agent providing the edible marijuana products to the receiving marijuana establishment; and

               (III) The number of the marijuana establishment agent registration card of the marijuana establishment agent receiving the edible marijuana products on behalf of the receiving marijuana establishment.

          (4) The date on which the edible marijuana products were provided to the marijuana establishment.

     (g) When receiving marijuana products from another marijuana establishment:

          (1) A description of the marijuana products received from the marijuana establishment, including the total weight of each marijuana product and the amount of THC, measured in milligrams, and production run number of the marijuana in each marijuana product.

          (2) The total amount and production run number of marijuana in the marijuana products.

          (3) The name and:

               (I) License number of the marijuana establishment providing the marijuana products to the receiving marijuana establishment;

               (II) The number of the marijuana establishment agent registration card of the marijuana establishment agent providing the marijuana products to the receiving marijuana establishment; and

               (III) The number of the marijuana establishment agent registration card of the marijuana establishment agent receiving the marijuana products on behalf of the receiving marijuana establishment.

          (4) The date on which the marijuana products were provided to the marijuana establishment.

     (h) When receiving concentrated marijuana or products containing concentrated marijuana from a marijuana product manufacturing facility:

          (1) A description of the concentrated marijuana or products containing concentrated marijuana received from the marijuana product manufacturing facility, including the total weight of each product, the amount of THC, measured in milligrams, and the production run number for each product;

          (2) The name and:

               (I) License number of the marijuana establishment providing the concentrated marijuana or products containing concentrated marijuana to the receiving marijuana establishment;

               (II) The number of the marijuana establishment agent registration card of the marijuana establishment agent providing the concentrated marijuana or products containing concentrated marijuana to the receiving marijuana establishment; and

               (III) The number of the marijuana establishment agent registration card of the marijuana establishment agent receiving the concentrated marijuana or products containing concentrated marijuana on behalf of the receiving marijuana establishment.

          (3) The date on which the concentrated marijuana or products containing concentrated marijuana were provided to the marijuana establishment.

     6.  Each marijuana establishment shall:

     (a) Establish and maintain a seed-to-sale inventory system which adequately documents the flow of materials through the manufacturing process.

     (b) Establish procedures which reconcile the raw material used to the finished product on the basis of each job. Significant variances must be documented, investigated by management personnel and immediately reported to the Department and to the marijuana establishment that ordered the concentrated marijuana or marijuana product.

     (c) Provide for quarterly physical inventory counts to be performed by persons independent of the manufacturing process which are reconciled to the perpetual inventory records. Significant variances must be documented, investigated by management personnel and immediately reported to the Department.

     7.  If a marijuana establishment identifies a reduction in the amount of marijuana in the inventory of the marijuana establishment which is not due to documented causes, the marijuana establishment shall determine where the loss has occurred and take and document corrective action. If the reduction in the amount of marijuana in the inventory of the marijuana establishment is due to suspected criminal activity by a marijuana establishment agent, the marijuana establishment shall report the marijuana establishment agent to the Department and to the appropriate law enforcement agencies within 24 hours. The Department may require the marijuana establishment to provide additional information as it determines necessary to conduct an investigation.

     8.  A marijuana establishment shall:

     (a) Maintain the documentation required by subsections 5, 6 and 7 at the marijuana establishment for at least 5 years after the date on the document; and

     (b) Provide the documentation required by subsections 5, 6 and 7 to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.430  Use of seed-to-sale tracking system; payment of fees. (NRS 453D.200)  A marijuana establishment shall:

     1.  Use the seed-to-sale tracking system managed by the independent contractor selected by the Department;

     2.  Connect to the seed-to-sale tracking system using the independent contractor’s application programming interface; and

     3.  Pay any fees assessed by the independent contractor for using the seed-to-sale tracking system, including, without limitation, user fees or application programming interface fees.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.434  Required security measures, equipment and personnel; location of outdoor cultivation facility must allow for response by local law enforcement. (NRS 453D.200)

     1.  To prevent unauthorized access to marijuana at a marijuana establishment, the marijuana establishment must have:

     (a) Security equipment to deter and prevent unauthorized entrance into limited access areas that includes, without limitation:

          (1) Devices or a series of devices to detect unauthorized intrusion, which may include a signal system interconnected with a radio frequency method, such as cellular or private radio signals, or other mechanical or electronic device, and which, for a marijuana cultivation facility which engages in outdoor cultivation, covers the entirety of the cultivation area and the perimeter and exterior area of the marijuana cultivation facility;

          (2) Exterior lighting to facilitate surveillance which, for a marijuana cultivation facility which engages in outdoor cultivation:

               (I) When the lighting would not interfere with the growing cycle of a crop, covers the entirety of the cultivation area and the perimeter and exterior area of the marijuana cultivation facility; and

               (II) When the lighting would interfere with the growing cycle of a crop, covers the perimeter and exterior area of the marijuana cultivation facility;

          (3) Electronic monitoring, including, without limitation, each of the following:

               (I) At least one call-up monitor that is 19 inches or more;

               (II) A video printer capable of immediately producing a clear still photo from any video camera image, which photo must be provided to the Department for review upon request;

               (III) Video cameras with a recording resolution of at least 1920 x 1080, or the equivalent, at a rate of at least 15 frames per second which provide coverage of all entrances and exits of the building, any room or area that holds a vault and any point-of-sale location, which record 24 hours per day, which are capable of being accessed remotely by a law enforcement agency in real time upon request and which may record motion only. A video camera providing coverage of a point-of-sale location must allow for the identification of any person purchasing marijuana;

               (IV) Video cameras with a recording resolution of at least 720 x 480, or the equivalent, at a rate of at least 15 frames per second which provide coverage of all limited access areas not described in sub-subparagraph (III) and any activity in or adjacent to the establishment, which record 24 hours per day, which are capable of being accessed remotely by a law enforcement agency in real time upon request, which may record motion only and which, for a marijuana cultivation facility which engages in outdoor cultivation, cover the entirety of the cultivation area and the perimeter and exterior area of the marijuana cultivation facility;

               (V) A video camera which is capable of identifying any activity occurring within the marijuana establishment in low light conditions 24 hours per day;

               (VI) A method for storing video recordings from the video cameras for at least 30 calendar days in a secure on-site or off-site location or through a service or network that provides on-demand access to the recordings and providing copies of the recordings to the Department for review upon request and at the expense of the marijuana establishment;

               (VII) A failure notification system that provides an audible and visual notification of any failure in the electronic monitoring system; and

               (VIII) Sufficient battery backup for video cameras and recording equipment to support at least 5 minutes of recording in the event of a power outage;

          (4) Immediate automatic or electronic notification to alert local law enforcement agencies of an unauthorized breach of security at the marijuana establishment in the interior of each building of the marijuana establishment; and

          (5) For a marijuana cultivation facility which engages in outdoor cultivation:

               (I) An alarm system and video cameras which are monitored 24 hours per day;

               (II) An exterior barrier, determined to be appropriate by local law enforcement, which is located around the perimeter of the marijuana cultivation facility and which consists of a solid block wall or chain link fence with a height of at least 8 feet and an additional fence with a height of at least 8 feet located at least 10 feet and not more than 20 feet inside of the solid block wall or chain link fence; and

               (III) A secure block building which is approved by the Department as suitable to dry and store marijuana and which meets the security and sanitation requirements for a marijuana cultivation facility which engages in indoor cultivation of marijuana.

     (b) Policies and procedures:

          (1) That restrict access to the areas of the marijuana establishment that contain marijuana to persons authorized to be in those areas only;

          (2) That provide for the identification of persons authorized to be in the areas of the marijuana establishment that contain marijuana;

          (3) That prevent loitering;

          (4) For conducting electronic monitoring;

          (5) For the use of the automatic or electronic notification to alert local law enforcement agencies of an unauthorized breach of security at the marijuana establishment;

          (6) For limiting the amount of money available in any retail areas of the marijuana establishment and for training employees on this practice;

          (7) For notifying the public of the minimal amount of money available, which may include, without limitation, the posting of a sign;

          (8) For maintaining communication with law enforcement agencies; and

          (9) For providing and receiving notifications regarding burglary, attempted burglary, robbery, attempted robbery and other suspicious activity.

     2.  Each video camera used pursuant to subparagraph (3) of paragraph (a) of subsection 1 must:

     (a) Include a date and time generator which possesses the capability to display the date and time of recorded events on the recording in a manner that does not significantly obstruct the recorded view; and

     (b) Be installed in a manner that will prevent the video camera from being readily obstructed, tampered with or disabled.

     3.  A marijuana establishment shall make a reasonable effort to repair any malfunction of security equipment within 72 hours after the malfunction is discovered. A marijuana establishment shall notify the Department and local law enforcement within 24 hours after a malfunction is discovered and provide a plan of correction. Failure to correct a malfunction within 72 hours after the malfunction is discovered is a violation of this section.

     4.  If a video camera used pursuant to subparagraph (3) of paragraph (a) of subsection 1 malfunctions, the marijuana establishment shall immediately provide alternative video camera coverage or use other security measures, such as assigning additional supervisory or security personnel, to provide for the security of the marijuana establishment. If the marijuana establishment uses other security measures, the marijuana establishment must immediately notify the Department, and the Department will determine whether the other security measures are adequate.

     5.  Each marijuana establishment shall maintain a log that documents each malfunction and repair of the security equipment of the marijuana establishment pursuant to subsections 3 and 4. The log must state the date, time and nature of each malfunction, the efforts taken to repair the malfunction and the date of each effort, the reason for any delay in repairing the malfunction, the date the malfunction is repaired and, if applicable, any alternative security measures that were taken. The log must also list, by date and time, all communications with the Department concerning each malfunction and corrective action. The marijuana establishment shall maintain the log for at least 1 year after the date of last entry in the log.

     6.  Each marijuana establishment must employ a security manager or director who must be responsible for:

     (a) Conducting a semiannual audit of security measures to ensure compliance with the state procedures of the marijuana establishment and identify potential security issues;

     (b) Training employees on security measures, emergency response and robbery prevention and response before hiring and on an annual basis; and

     (c) Evaluating the credentials of any third party who intends to provide security to the marijuana establishment before the third party is hired by or enters into a contract with the marijuana establishment.

     7.  Each marijuana establishment shall ensure that the security manager or director of the marijuana establishment, at least one employee of the marijuana establishment or the employees of any third party who provides security to the marijuana establishment has completed, or will complete within a period determined by the Department to be reasonable, the following training:

     (a) Training in theft prevention or a related subject;

     (b) Training in emergency response or a related subject;

     (c) Training in the appropriate use of force or a related subject that covers when the use of force is and is not necessary;

     (d) Training in the use and administration of first aid, including cardiopulmonary resuscitation;

     (e) Training in the protection of a crime scene or a related subject;

     (f) Training in the control of access to protected areas of a marijuana establishment or a related subject;

     (g) Not less than 8 hours of on-site training in providing security services; and

     (h) Not less than 8 hours of classroom training in providing security services.

     8.  A marijuana cultivation facility which engages in the outdoor cultivation of marijuana must be located in such a manner as to allow local law enforcement to respond to the marijuana cultivation facility within 15 minutes after being contacted unless the local law enforcement agency determines some other response time is acceptable.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.438  Duties relating to marijuana establishment agents. (NRS 453D.200)  A marijuana establishment shall:

     1.  Ensure that each marijuana establishment agent has his or her marijuana establishment agent registration card or temporary authorization in his or her immediate possession when the marijuana establishment agent:

     (a) Is employed by or volunteering at or providing labor as a marijuana establishment agent at the marijuana establishment;

     (b) Is transporting marijuana or marijuana products for the marijuana establishment, regardless of the type of license held by the marijuana establishment; or

     (c) Is delivering marijuana or marijuana products for a retail marijuana store.

     2.  Not allow a person who does not possess a marijuana establishment agent registration card which is valid at the marijuana establishment to:

     (a) Serve as an officer or board member for the marijuana establishment or hold an ownership interest of more than 5 percent in the marijuana establishment;

     (b) Be employed by or have a contract to provide services for the marijuana establishment;

     (c) Volunteer at or on behalf of the marijuana establishment; or

     (d) Contract to provide labor at or be employed by an independent contractor to provide labor at the marijuana establishment.

     3.  Provide written notice to the Department, including the date of the event, within 10 working days after the date on which a marijuana establishment agent begins:

     (a) Service as an officer or board member for the marijuana establishment;

     (b) Employment by the marijuana establishment or providing services for the marijuana establishment pursuant to a contract;

     (c) Volunteering at or on behalf of the marijuana establishment; or

     (d) Providing labor at or beginning employment by an independent contractor to provide labor at a marijuana establishment pursuant to a contract.

     4.  Provide written notice to the Department, including the date of and reason for the event, within 10 working days after the date on which a marijuana establishment agent no longer:

     (a) Serves as an officer or board member for the marijuana establishment;

     (b) Is employed by or has a contract to provide services for the marijuana establishment;

     (c) Volunteers at or on behalf of the marijuana establishment; or

     (d) Contracts to provide labor at or is employed by an independent contractor to provide labor at a marijuana establishment.

     5.  Provide written notice to the Department, including the date of the event, within 10 working days after the date on which the person designated by the marijuana establishment to provide written notice to the Department relating to marijuana establishment agents ceases to serve in that capacity at the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.442  Cleanliness and health of marijuana establishment agents. (NRS 453D.200)

     1.  Each marijuana establishment must ensure that each marijuana establishment agent who is employed by, volunteers at or provides labor as a marijuana establishment agent at the marijuana establishment:

     (a) Cleans his or her hands and exposed portions of his or her arms in a hand-washing sink:

          (1) Immediately upon entrance to the marijuana establishment;

          (2) Immediately before working with marijuana plants;

          (3) Immediately before preparing concentrated marijuana or marijuana products, including, without limitation, working with exposed marijuana products, clean equipment and utensils or unwrapped single-service and single-use articles;

          (4) After touching any bare human body parts other than his or her clean hands and exposed portions of arms, including, without limitation, surrogate prosthetic devices for hands and arms;

          (5) After using the toilet facilities;

          (6) After coughing, sneezing, using a handkerchief or disposable tissue, using tobacco, eating or drinking;

          (7) After handling soiled equipment or utensils;

          (8) During preparation or extraction of concentrated marijuana or marijuana products, as often as necessary to remove soil and contamination and to prevent cross-contamination when changing tasks;

          (9) When switching between working with unprocessed marijuana products or uncooked food products and working with finished concentrated marijuana or marijuana products;

          (10) Before donning gloves for working with marijuana products; and

          (11) After engaging in other activities that contaminate the hands.

     (b) If working directly in the preparation of concentrated marijuana or marijuana products:

          (1) Keeps his or her fingernails trimmed, filed and maintained so that the edges and surfaces are cleanable;

          (2) Unless wearing intact gloves in good repair, does not have fingernail polish or artificial fingernails on his or her fingernails; and

          (3) Wears a hair net.

     (c) Wears clean clothing appropriate to the tasks assigned to him or her.

     2.  If the person designated by a marijuana establishment to address health conditions at the marijuana establishment determines that a marijuana establishment agent who is employed by or volunteers at or provides labor as a marijuana establishment agent at the marijuana establishment has a health condition that may adversely affect the safety or quality of the concentrated marijuana or marijuana products at the marijuana establishment, that marijuana establishment agent is prohibited from having direct contact with any marijuana or equipment or materials for processing concentrated marijuana or marijuana products until the designated person determines that the health condition of the marijuana establishment agent will not adversely affect the concentrated marijuana or marijuana products.

     3.  A marijuana establishment agent shall not work directly with concentrated marijuana or marijuana products if the marijuana establishment agent has:

     (a) A symptom of gastrointestinal infection, including, without limitation, diarrhea, vomiting or jaundice;

     (b) A sore throat with fever; or

     (c) A lesion that appears inflamed or contains pus, including, without limitation, a boil or infected wound that is not covered with:

          (1) An impermeable cover and a single-use glove if the lesion is on a hand or wrist, both of which must be changed at any time that hand washing is required;

          (2) An impermeable cover if the lesion is on an arm; or

          (3) A dry, durable, tight-fitting bandage if the lesion is on another part of the body.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.446  Requirements for building used as marijuana establishment or by dual licensee; use of commercial weighing and measuring equipment. (NRS 453D.200)

     1.  A building used as a marijuana establishment or by a dual licensee must have:

     (a) At least one toilet facility which must contain:

          (1) A flushable toilet;

          (2) Mounted toilet tissue;

          (3) A hand sink with running water which is capable of delivering hot water at a minimum temperature of 100°F (37.8°C);

          (4) Soap contained in a dispenser;

          (5) Disposable, single-use paper towels in a mounted dispenser; and

          (6) A conveniently located trash can.

     (b) Except for a marijuana distributor, at least one hand-washing sink not located in a toilet facility and located away from any area in which edible marijuana products are cooked or otherwise prepared to prevent splash contamination.

     (c) Designated storage areas for concentrated marijuana and marijuana products or materials used in direct contact with such items separate from storage areas for toxic or flammable materials.

     (d) If preparation or packaging of concentrated marijuana or marijuana products is done in the building, a designated area for the preparation or packaging that:

          (1) Includes work space that can be sanitized; and

          (2) Is only used for the preparation or packaging of concentrated marijuana or marijuana products.

     2.  For any commercial weighing and measuring equipment used at a marijuana establishment, the marijuana establishment must:

     (a) Ensure that the commercial device is licensed pursuant to chapter 581 of NRS;

     (b) Maintain documentation of the license of the commercial device; and

     (c) Provide a copy of the license of the commercial device to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.450  Quality assurance testing required before sale or transfer of products. (NRS 453D.200)  A marijuana establishment shall not sell or transfer a lot of usable marijuana, concentrated marijuana or marijuana products until all required quality assurance testing has been completed.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.454  Requirements for preparation or sale of edible marijuana products; marijuana product manufacturing facility exempt from provisions governing food establishments. (NRS 453D.200)

     1.  A marijuana establishment that prepares or sells edible marijuana products must:

     (a) Before preparing an edible marijuana product, obtain written authorization from the Department to prepare edible marijuana products;

     (b) If the marijuana establishment prepares edible marijuana products, ensure that the edible marijuana products are prepared according to the applicable requirements set forth in this chapter and chapter 453D of NRS and the operating procedures included in its application pursuant to NAC 453D.265 or 453D.268;

     (c) If the edible marijuana products are not prepared at the marijuana establishment, obtain and maintain at the marijuana establishment a copy of the current written authorization to prepare edible marijuana products from the marijuana establishment that prepares the edible marijuana products;

     (d) If the marijuana establishment is a marijuana product manufacturing facility, package all edible marijuana products produced by the marijuana establishment on the premises of the marijuana establishment; and

     (e) If the marijuana establishment sells edible marijuana products, ensure that the edible marijuana products are sold according to the applicable requirements set forth in this chapter and chapter 453D of NRS.

     2.  A marijuana establishment is responsible for the content and quality of any edible marijuana product sold by the marijuana establishment.

     3.  A marijuana product manufacturing facility is not subject to the provisions of chapter 446 of NRS or chapter 446 of NAC.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.458  Prohibition on dispensing or selling marijuana or marijuana products from vending machine. (NRS 453D.200)  A marijuana establishment shall not dispense or otherwise sell marijuana or marijuana products from a vending machine or allow such a vending machine to be installed at the interior or exterior of the premises of the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.462  Prohibition on treating or adulterating usable marijuana with chemical or other compound. (NRS 453D.200)  A marijuana establishment may not treat or otherwise adulterate usable marijuana with any organic or nonorganic chemical or other compound whatsoever to alter the color, appearance, weight or smell of the usable marijuana.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.466  Promotional and marketing activities; applicability of labeling and testing provisions to all marijuana and marijuana products. (NRS 453D.200)

     1.  A marijuana establishment:

     (a) May only promote marijuana or a marijuana product through marketing the marijuana testing facility results on the label of the marijuana or marijuana product; and

     (b) Must not use a marijuana testing facility or other laboratory to promote any other attributes of marijuana or a marijuana product.

     2.  The provisions of this chapter governing labeling and testing of marijuana and marijuana products apply to all marijuana and marijuana products, including, without limitation, pre-rolls.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.470  Restrictions on advertising; required posting of signs in retail marijuana store. (NRS 453D.200)

     1.  A marijuana establishment:

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

          (1) Is false or misleading;

          (2) Promotes overconsumption of marijuana or marijuana products;

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

          (4) Depicts a child or other person who is less than 21 years of age consuming marijuana or marijuana 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 marijuana or marijuana 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.

     (c) Shall not place an advertisement:

          (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 or entertainment event to which persons who are less than 21 years of age are allowed entry;

          (4) On or inside of a motor vehicle used by a marijuana establishment for private transportation;

          (5) On signs carried by a natural person, including, without limitation, handbills, pamphlets, cards or other types of advertisements that are distributed to the general public, but excluding an advertisement placed in a newspaper of general circulation, trade publication or other form of print media; and

          (6) Where prohibited by local ordinance.

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

     (e) Shall ensure that all advertising by the marijuana establishment contains such warnings as may be prescribed by the Department, 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.”

     2.  A retail marijuana store shall post signs in prominent locations inside the retail marijuana store which state activities that are strictly prohibited and punishable by law, including, without limitation, the following statements:

     (a) “No minors permitted on the premises unless the minor holds a letter of approval and is accompanied by a designated primary caregiver”;

     (b) “No on-site consumption of any marijuana or marijuana products”;

     (c) “Distribution to persons under the age of 21 is prohibited”;

     (d) “Except for medical marijuana patients, possession of over 1 ounce of usable marijuana, one-eighth ounce of concentrated marijuana, an edible marijuana product containing more than 3,500 milligrams of THC or a combination of the three which exceeds the legal limit is prohibited”; and

     (e) “Transportation of marijuana or marijuana products across state lines is prohibited.”

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.473  Use of name, logo, sign, advertisement or packaging: Required approval by Department. (NRS 453D.200)  A marijuana establishment shall not use a name, logo, sign, advertisement or packaging unless the name, logo, sign, advertisement or packaging has been approved by the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.477  Responsibility for costs relating to clean-up, mitigation or remedy of environmental damage. (NRS 453D.200)  A marijuana establishment is responsible to the State or a locality for all costs incurred by the State or locality in cleaning up, mitigating or remedying any environmental damage caused by the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.480  Documentation and reporting of loss or theft; maintenance of documentation. (NRS 453D.200)  A marijuana establishment shall:

     1.  Document and report any loss or theft of marijuana from the marijuana establishment to the appropriate law enforcement agency and to the Department within 24 hours after discovery of the loss or theft; and

     2.  Maintain copies of any documentation required pursuant to this chapter and chapter 453D of NRS for at least 5 years after the date on the documentation and provide copies of the documentation to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.485  Quarterly reporting concerning production, purchases and sales of marijuana and marijuana products. (NRS 372A.285, 453D.200)  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall submit the report required pursuant to NRS 372A.285 to the Department on or before the 15th day of each January, April, July and October containing information concerning the 3 months immediately preceding the date of the report. Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall submit such a report regardless of whether any purchases or sales have occurred.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

RETAIL MARIJUANA STORES

     NAC 453D.550  Requirements for operation; posting of hours of operation. (NRS 453D.200)  Each retail marijuana store shall:

     1.  Ensure that the retail marijuana store is operating and available to sell marijuana or marijuana products to consumers during, and only during, the designated hours of operation of the retail marijuana store as provided to the Department in the application for a license submitted by the retail marijuana store and the hours authorized by the locality in which the retail marijuana store is located; and

     2.  Post, in a place that can be viewed by persons entering the retail marijuana store, the hours of operation during which the retail marijuana store will sell marijuana or marijuana products to consumers.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.555  Duties of marijuana establishment agent before sale to consumer. (NRS 453D.200)  Before a marijuana establishment agent sells marijuana or marijuana products to a consumer, the marijuana establishment agent shall:

     1.  Verify the age of the consumer by checking a government-issued identification card containing a photograph of the consumer using an identification scanner approved by the Department to determine the validity of any government-issued identification card;

     2.  Offer any appropriate consumer education or support materials; and

     3.  Enter the following information into the inventory control system:

     (a) The amount of marijuana or marijuana product sold;

     (b) The date and time at which the marijuana or marijuana product was sold;

     (c) The number of the marijuana establishment agent registration card of the marijuana establishment agent; and

     (d) The number of the license of the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.558  Valid proof of identification of age of consumer required. (NRS 453D.200)

     1.  Except as otherwise provided in this subsection, a retail marijuana store shall refuse to sell marijuana or marijuana products to any person unless the person produces a form of valid identification showing that the person is 21 years of age or older. A dual licensee may sell marijuana or marijuana products to a person who is less than 21 years of age if the sale complies with the provisions of chapter 453A of NRS or 453A of NAC.

     2.  Identification presented to satisfy subsection 1 must contain a photograph and the date of birth of the person.

     3.  Identification presented to satisfy subsection 1 must be a valid and unexpired:

     (a) Driver’s license or instruction permit issued by this State or any other state or territory of the United States;

     (b) Identification card issued by this State or any other state or territory of the United States for the purpose of proof of age of the holder of the card;

     (c) United States military identification card;

     (d) A Merchant Mariner Credential or other similar document issued by the United States Coast Guard;

     (e) A passport issued by the United States Government or a permanent resident card issued by the United States Citizenship and Immigration Services of the Department of Homeland Security; or

     (f) A tribal identification card issued by a tribal government, as defined in NRS 239C.105, which requires proof of the age of the holder of the card for issuance.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.562  Prohibition on sale that exceeds maximum usable quantity of marijuana. (NRS 453D.200)  A retail marijuana store shall not sell to any consumer an amount of marijuana or marijuana products which exceeds:

     1.  One ounce of usable marijuana other than concentrated marijuana;

     2.  One-eighth ounce of concentrated marijuana containing not more than 3,500 milligrams of THC; and

     3.  One-eighth ounce of concentrated marijuana or 3,500 milligrams of THC contained within one or more edible marijuana products.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.565  Products required to be offered for sale; restrictions on sale of other products; restrictions on advertising. (NRS 453D.200)

     1.  A retail marijuana store shall only offer for sale marijuana, marijuana products, marijuana paraphernalia, marijuana-related accessories, products containing CBD and products containing industrial hemp which are related to marijuana.

     2.  Each retail marijuana store shall offer for sale containers for the storage of marijuana and marijuana products which lock and are designed to prohibit children from unlocking and opening the container.

     3.  A retail marijuana store shall not sell any food, beverage or personal care item that does not contain marijuana.

     4.  A retail marijuana store shall not sell any product that contains nicotine.

     5.  A retail marijuana store shall not sell any product that contains alcohol if the product would require the retail marijuana store to hold a license issued pursuant to chapter 369 of NRS.

     6.  A retail marijuana store shall not sell marijuana or marijuana products to a consumer through the use of, or accept a sale of marijuana or marijuana products from, a third party, intermediary business, broker or any other business that does not hold a license for a retail marijuana store.

     7.  A retail marijuana store shall not contract with a third party or intermediary business to advertise delivery to consumers.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.568  Storage and location of products; disclosure of marijuana testing facility performing quality assurance tests upon request of consumer; approved sources of products for sale; maintenance and availability of certificate of analysis; exemption for industrial hemp. (NRS 453D.200)

     1.  A retail marijuana store must store all usable marijuana, concentrated marijuana and marijuana products behind a counter or other barrier to ensure a consumer does not have direct access to the marijuana, concentrated marijuana or marijuana products.

     2.  Upon the request of a consumer, a retail marijuana store must disclose the name of the marijuana testing facility which performed the required quality assurance tests for the retail marijuana store and the corresponding certificate of analysis.

     3.  A retail marijuana store may only sell usable marijuana obtained from a marijuana cultivation facility.

     4.  Except as otherwise provided in subsection 6, a retail marijuana store may only sell concentrated marijuana and marijuana products obtained from a marijuana product manufacturing facility.

     5.  Except as otherwise provided in subsection 6, a retail marijuana store may not sell a product other than usable marijuana, concentrated marijuana or marijuana products which contain any level of THC or CBD without the approval of the Department. Each retail marijuana store shall maintain a file which contains a certificate of analysis for any such approved product at the retail marijuana store and shall make the file available for review upon request.

     6.  The provisions of subsections 4 and 5 do not apply to industrial hemp, as defined in NRS 557.040, which is certified and registered with the State Department of Agriculture.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.572  Delivery to consumer: General requirements. (NRS 453D.200)  Except for a delivery made pursuant to subsection 3 of NRS 453D.110, a marijuana establishment or a third party shall not deliver marijuana or marijuana products to a consumer unless:

     1.  The delivery is made by a marijuana establishment agent who holds a marijuana establishment agent registration card in the category of retail marijuana store;

     2.  The delivery is made by a marijuana establishment agent employed by a retail marijuana store or by an independent contractor:

     (a) Which has entered into a service agreement with a retail marijuana store to perform deliveries to consumers using only marijuana establishment agents who hold a marijuana establishment agent registration card in the category of retail marijuana store; and

     (b) Whose name has been disclosed to the Department before any deliveries are made;

     3.  The name of the retail marijuana store and all independent contractors who perform deliveries on behalf of the retail marijuana store has been published on the Internet website of the Department;

     4.  The Department has received confirmation from the retail marijuana store, before a person engages in the delivery process, including, without limitation, accepting an order or physically delivering marijuana or marijuana products, that the person is employed by, volunteers at or provides labor as a marijuana establishment agent at the retail marijuana store and holds a valid marijuana establishment agent registration card in the appropriate category;

     5.  The marijuana establishment agent who delivers marijuana or marijuana products to a consumer obtains verification of the identity and age of the consumer by scanning a document described in NAC 453D.558 before providing the marijuana or marijuana products to the consumer;

     6.  The marijuana establishment agent who delivers marijuana or marijuana products to a consumer does not also deliver any other item to the consumer unless the item is marijuana paraphernalia or merchandise, packaging or a promotional item directly related to the marijuana or marijuana product;

     7.  The delivery is conducted only during the hours that the retail marijuana store is open for business;

     8.  The delivery is conducted only within the borders of this State;

     9.  The marijuana establishment agent who delivers marijuana or marijuana products only travels to and from the retail marijuana store and the delivery destination and does not make any unnecessary stops that are not disclosed in the trip plan and delivery manifest. If the marijuana establishment agent makes a stop for fuel, the stop must be documented in the trip plan and maintained for review by the Department; and

     10.  If the retail marijuana store contracts with a service that provides a digital or other platform used in conjunction with an agreement to facilitate deliveries to consumers, the digital or other platform is approved by the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.575  Delivery to consumer: Duties of retail marijuana store. (NRS 453D.200)

     1.  A retail marijuana store delivering marijuana or marijuana products to a consumer pursuant to NAC 453D.572 shall:

     (a) Ensure that all marijuana and marijuana products are secured at all times during delivery; and

     (b) Maintain a physical or electronic copy of a delivery manifest generated using the seed-to-sale tracking system that contains all the information required by this section in a format approved by the Department.

     2.  A retail marijuana store may deliver marijuana or marijuana products to more than one consumer in a single trip if the delivery manifest correctly reflects the specific inventory destined for each specific consumer and location.

     3.  Before delivering marijuana or marijuana products to a consumer, the retail marijuana store shall enter the information required to indicate that the marijuana or marijuana products will be delivered to a consumer into the seed-to-sale tracking system.

     4.  A retail marijuana store shall not alter the information which has been entered into the seed-to-sale tracking system pursuant to subsection 3.

     5.  If a marijuana establishment agent is not able to deliver marijuana or marijuana products directly to the consumer who ordered the marijuana or marijuana products, the marijuana establishment agent shall return the marijuana or marijuana products to the retail marijuana store.

     6.  A retail marijuana store shall provide a copy of the delivery manifest generated using the seed-to-sale tracking system to each consumer who receives a delivery of marijuana or marijuana products. The copy of a delivery manifest provided to a consumer pursuant to this subsection must be generated separately for each consumer and not contain the information of any other consumer.

     7.  The delivery manifest generated using the seed-to-sale tracking system must include, without limitation:

     (a) The date and approximate time of the delivery;

     (b) The name, location, address and license number of the retail marijuana store;

     (c) The name, location and address of each consumer;

     (d) The name and quantity, by weight and unit, of each item to be delivered to each consumer;

     (e) The make, model, license plate number and number of the identification card issued pursuant to NAC 453D.582 of the vehicle used for delivery; and

     (f) The name, number of the marijuana establishment agent registration card and signature of each marijuana establishment agent performing or accompanying the delivery of the marijuana or marijuana products.

     8.  In addition to the requirements of this section, the retail marijuana store shall ensure that each delivery satisfies the requirements of NAC 453D.426 and 453D.430.

     9.  Before marijuana or marijuana products leave the retail marijuana store for delivery, the retail marijuana store shall adjust its records to reflect the removal of the marijuana or marijuana products in a manner that reflects the information included in the delivery manifest generated using the seed-to-sale tracking system and that can be easily reconciled, by the name and quantity of the marijuana or marijuana products, with the delivery manifest.

     10.  After delivery of marijuana or marijuana products, the retail marijuana store shall ensure that the trip plan, including any changes to the trip plan made pursuant to subsection 9 of NAC 453D.572, is accurate.

     11.  Any marijuana or marijuana product which is damaged, undeliverable to the consumer or refused by the consumer must be delivered back to the retail marijuana store and reconciled by the retail marijuana store in the seed-to-sale tracking system.

     12.  A retail marijuana store shall not deliver any marijuana or marijuana products unless the retail marijuana store can reconcile the delivery of marijuana or marijuana products with the seed-to-sale tracking system and all associated transaction history and order receipts.

     13.  A retail marijuana store must reconcile all transactions to the seed-to-sale tracking system at the close of business each day.

     14.  A retail marijuana store shall ensure that all information contained in a delivery manifest generated using the seed-to-sale tracking system is accurate for each delivery that is completed.

     15.  A retail marijuana store shall maintain all documents required by this section and provide a copy of any such document to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.578  Delivery to consumer: Restrictions; duties of marijuana establishment agent making delivery. (NRS 453D.200)

     1.  A retail marijuana store shall not deliver more than 5 ounces of marijuana or an equivalent amount of marijuana products to any combination of consumers within a single trip.

     2.  A retail marijuana store shall not deliver marijuana or marijuana products to a consumer at any location that has been issued a gaming license, as defined in NRS 463.0159.

     3.  A retail marijuana store may only deliver marijuana or marijuana products to a private residence and shall not deliver more than 1 ounce of marijuana or an equivalent amount of marijuana products to any consumer.

     4.  A retail marijuana store shall not deliver marijuana or marijuana products to any person other than the consumer who ordered the marijuana or marijuana products. Before delivering marijuana or marijuana products to a consumer, the marijuana establishment agent delivering the marijuana or marijuana products for a retail marijuana store shall:

     (a) Confirm by telephone that the consumer ordered the marijuana or marijuana products and verify the identity of the consumer; and

     (b) Enter the details of such a confirmation in a log which must be made available for inspection by an appropriate law enforcement agency and the Department.

     5.  A retail marijuana store shall not allow a marijuana establishment agent to deliver marijuana or marijuana products unless the marijuana or marijuana products are:

     (a) Stored in a lockbox or locked cargo area within the vehicle being used for delivery;

     (b) Not visible from outside the vehicle; and

     (c) Contained in sealed packages and containers which remain unopened during delivery.

Ê For the purpose of this subsection, the trunk of a vehicle is not considered to be a lockbox or locked cargo area unless the trunk cannot be accessed from within the vehicle and can only be accessed using a key which is different from the key used to access and operate the vehicle.

     6.  A retail marijuana store shall ensure that a marijuana establishment agent delivering marijuana or marijuana products for the retail marijuana store has a means of communicating with the retail marijuana store while he or she provides delivery.

     7.  A person shall not be present within any vehicle while it is being used for the delivery of marijuana or marijuana products unless the person is a marijuana establishment agent for the retail marijuana store providing delivery of the marijuana or marijuana products or an independent contractor retained by the retail marijuana store to provide delivery.

     8.  Each marijuana establishment agent delivering marijuana or marijuana products must:

     (a) Report to a person designated by the marijuana establishment to receive such reports any motor vehicle crash that occurs during the delivery within 2 hours after the crash occurs;

     (b) Report to the Department any unauthorized stop that lasts longer than 2 hours; and

     (c) Report to a person designated by the marijuana establishment to receive such reports any loss or theft of marijuana or marijuana products that occurs during the delivery immediately after the marijuana establishment agent becomes aware of the loss or theft. A retail marijuana store that receives a report of loss or theft pursuant to this paragraph must immediately report the loss or theft to the appropriate law enforcement agency and to the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.582  Delivery to consumer: Requirements for motor vehicles used to make deliveries; adequate temperature control of products required; inspection of motor vehicles authorized. (NRS 453D.200)

     1.  A retail marijuana store may use any motor vehicle that can legally be operated on the highways of this State and that meets the requirements of this section to deliver marijuana and marijuana products.

     2.  Before using a motor vehicle to deliver marijuana or marijuana products, a retail marijuana store must obtain the approval of the Department for the use of the motor vehicle. Upon approving a motor vehicle for use to deliver marijuana or marijuana products, the Department will issue an identification card containing such information as the Department determines to be necessary, which must be kept inside the motor vehicle at all times.

     3.  A retail marijuana store shall ensure that each motor vehicle used to deliver marijuana or marijuana products:

     (a) Has no advertising, signage or other markings relating to marijuana; and

     (b) Is equipped with an audible car alarm.

     4.  A retail marijuana store shall provide adequate care for perishable marijuana products including, without limitation, refrigeration during delivery, if required. Any method for temperature control used during delivery must be approved by the Department before use. If a potentially hazardous marijuana product is being delivered, the potentially hazardous marijuana product must be maintained at a temperature of less than 41°F (5°C) throughout delivery.

     5.  The Department may inspect each motor vehicle used for delivery of marijuana or marijuana products by a retail marijuana store pursuant to NAC 453D.288 or 453D.292.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

MARIJUANA CULTIVATION FACILITIES

     NAC 453D.600  Department authorized to limit marijuana cultivation within State. (NRS 453D.200)  The Department may, upon findings made following a public hearing that the public interest will be supported by limiting the cultivation of marijuana in this State, limit the amount of marijuana cultivated within this State.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.605  Required written disclosure with each lot of usable marijuana; provision of free samples to retail marijuana store; applicability of provisions governing excise tax on marijuana to free samples. (NRS 453D.200)

     1.  A marijuana cultivation facility must disclose in writing with each lot of usable marijuana provided to a retail marijuana store:

     (a) All soil amendments, fertilizers and other crop production aids applied to the growing medium or marijuana plant included in the lot; and

     (b) The name of the marijuana testing facility which performed the required quality assurance tests and the certificate of analysis for the lot.

     2.  A marijuana cultivation facility may provide a retail marijuana store free samples of usable marijuana packaged in a sample jar protected by a plastic or metal mesh screen to allow consumers to smell the product before purchase. A sample jar may not contain more than 3 1/2 grams of usable marijuana. The sample jar must not be left unattended and must be sealed shut. The sample jar and the usable marijuana within may not be sold to a consumer and must be either returned to the marijuana cultivation facility which provided the usable marijuana and sample jar or destroyed by the retail marijuana store after use and documented by the retail marijuana store using its inventory control system pursuant to NAC 453D.426.

     3.  The provisions of chapters 372A and 453D of NRS and chapter 372A of NAC regarding the excise tax on marijuana apply to free samples of usable marijuana provided pursuant to subsection 2.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.608  Restrictions on access to facility and persons authorized on premises; location of marijuana growing at facility. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 2, a marijuana cultivation facility must ensure that access to the enclosed, locked facility where marijuana is cultivated is limited to the officers, board members and authorized marijuana establishment agents of the marijuana cultivation facility.

     2.  Each marijuana cultivation facility shall ensure that an authorized marijuana establishment agent accompanies any person other than another marijuana establishment agent associated with the marijuana establishment when the person is present in the enclosed, locked facility where marijuana is cultivated or produced by the marijuana cultivation facility.

     3.  Each marijuana cultivation facility shall ensure that any marijuana growing at the marijuana cultivation facility:

     (a) Cannot be observed from outside the marijuana cultivation facility and is not visible from a public place by normal, unaided vision; and

     (b) Unless the marijuana cultivation facility cultivates marijuana outdoors, does not emit an odor that is detectable from outside the marijuana cultivation facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.615  Requirements for outdoor cultivation; verification of adequate isolation. (NRS 453D.200)

     1.  If an applicant for a license for a marijuana cultivation facility wishes to engage in the cultivation of marijuana outdoors or if a marijuana cultivation facility wishes to begin to cultivate marijuana outdoors, the applicant or marijuana cultivation facility must, before engaging in any outdoor cultivation, submit a verification issued by the State Department of Agriculture that the outdoor cultivation will be adequately isolated from all other outdoor marijuana and industrial hemp cultivation locations to prevent the cross-pollination of cannabis crops.

     2.  A request for verification of adequate isolation described in subsection 1 must be submitted to the State Department of Agriculture and:

     (a) Be on a form prescribed by the State Department of Agriculture;

     (b) Include documentation that verifies that the applicant or marijuana cultivation facility has obtained:

          (1) Appropriate licensing;

          (2) Approved zoning; and

          (3) Any other approvals required by the locality;

     (c) Include a map or GPS coordinates that demonstrate the proposed location of outdoor cultivation by the applicant or marijuana cultivation facility; and

     (d) Include any other information that the State Department of Agriculture determines to be necessary.

     3.  The applicant or marijuana cultivation facility shall not begin outdoor cultivation until the State Department of Agriculture provides verification of adequate isolation described in subsection 1, the applicant or marijuana cultivation facility transmits the verification of adequate isolation to the Department of Taxation and the Department of Taxation issues a license for a marijuana cultivation facility to the applicant or approves the modification of operations of the marijuana cultivation facility to begin outdoor cultivation.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

PRODUCTION OF MARIJUANA PRODUCTS

Duties of Marijuana Establishment Agents while Engaged in Production

     NAC 453D.640  Cleanliness of hands and arms: Cleaning procedure. (NRS 453D.200)

     1.  Each marijuana establishment agent shall, when required pursuant to NAC 453D.642, clean his or her hands and the exposed portions of his or her arms for at least 20 seconds, using a cleaning compound in a hand-washing sink that is appropriately equipped.

     2.  Each marijuana establishment agent shall use the following cleaning procedure in the order stated to clean his or her hands and the exposed portions of his or her arms, including, without limitation, surrogate prosthetic devices for hands and arms:

     (a) Rinse under clean, running warm water at a minimum temperature of 100°F (37.8°C).

     (b) Apply an amount of cleaning compound recommended by the manufacturer of the cleaning compound.

     (c) Rub together vigorously for at least 15 seconds while:

          (1) Paying particular attention to removing soil from underneath the fingernails during the cleaning procedure; and

          (2) Creating friction on the surfaces of the hands and arms, fingertips and areas between the fingers.

     (d) Thoroughly rinse under clean, running warm water at a minimum temperature of 100°F (37.8°C).

     (e) Immediately follow the cleaning procedure with thorough drying using a clean paper towel.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.642  Cleanliness of hands and arms: Frequency of and activities requiring cleaning procedure. (NRS 453D.200)  Each marijuana establishment agent shall clean his or her hands and exposed portions of his or her arms in the manner set forth in NAC 453D.640:

     1.  Immediately upon entrance to any area containing marijuana or marijuana products;

     2.  Immediately before working with marijuana plants;

     3.  Immediately before engaging in preparation for the extraction of concentrated marijuana or production of marijuana products, including, without limitation, working with exposed marijuana products, clean equipment and utensils and unwrapped single-service and single-use articles;

     4.  After touching bare human body parts other than clean hands and exposed portions of arms, including, without limitation, surrogate prosthetic devices for hands and arms;

     5.  After using the toilet room;

     6.  After coughing, sneezing, using a handkerchief or disposable tissue, using tobacco, eating or drinking;

     7.  After handling soiled equipment or utensils;

     8.  During preparation for the extraction of concentrated marijuana or production of marijuana products, as often as necessary to remove soil and contamination and to prevent cross-contamination when changing tasks;

     9.  When switching between working with unprocessed marijuana products or uncooked food products and working with finished concentrated marijuana or marijuana products;

     10.  Before donning gloves for working with marijuana products; and

     11.  After engaging in other activities that contaminate the hands.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.646  Hand and arm contact while engaged in extraction of concentrated marijuana or production of marijuana products. (NRS 453D.200)

     1.  Each marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products shall keep his or her hands and the exposed portions of his or her arms clean.

     2.  A marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products shall not have contact with exposed, finished marijuana products with his or her bare hands and shall use suitable utensils, including, without limitation, deli tissue, spatulas, tongs, single-use gloves or dispensing equipment when handling exposed, finished concentrated marijuana or marijuana products.

     3.  A marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products shall minimize bare hand and arm contact with exposed marijuana products that are not in a finished form.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Marijuana Product Manufacturing Facilities

     NAC 453D.650  Qualifications and duties of persons responsible for managing facility. (NRS 453D.200)  Based on the risks inherent to the operation of a marijuana product manufacturing facility, the persons responsible for managing each such facility shall demonstrate to the Department knowledge of disease prevention, and the requirements of this chapter and chapter 453D of NRS, by:

     1.  Complying with the provisions of this chapter and chapter 453D of NRS and having no category I, II, II(b) or III violations pursuant to NAC 453D.905 during inspections.

     2.  Ensuring that at least one employee of the marijuana product manufacturing facility is a certified food protection manager who has shown proficiency in the required information through passing a test that is part of a program which certifies a person to be a food protection manager and which:

     (a) Has been evaluated and listed by an accrediting agency as conforming to national standards for organizations that certify persons as food protection managers; or

     (b) Provides to such persons other training acceptable to the Department.

     3.  Responding correctly to the questions of an inspector of marijuana establishments regarding:

     (a) The relationship between the prevention of disease and the personal hygiene of a marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products.

     (b) The prevention of the transmission of disease by a marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products who has a disease or medical condition that may transmit disease.

     (c) The symptoms associated with the diseases that are transmissible through marijuana products and ingredients.

     (d) The significance of the relationship between maintaining the temperature for a certain amount of time for potentially hazardous marijuana products and ingredients and the prevention of illness transmission.

     (e) The hazards involved in the consumption of raw or undercooked meat, poultry and eggs.

     (f) The required temperatures and times for safe cooking of potentially hazardous marijuana products and ingredients, including, without limitation, meat, poultry and eggs.

     (g) The required temperatures and times for the safe refrigerated storage, hot holding, cooling and reheating of potentially hazardous marijuana products and ingredients.

     (h) The relationship between the prevention of illness transmission and the management and control of:

          (1) Cross contamination;

          (2) Hand contact with finished marijuana products and ingredients;

          (3) Hand washing; and

          (4) Maintaining the establishment in a clean condition and in good repair.

     (i) The correct procedures for cleaning and sanitizing utensils and the surfaces of equipment that have direct contact with marijuana products and ingredients.

     (j) The identification of poisonous or toxic materials in the facility and the procedures necessary to ensure that those materials are safely stored, dispensed, used and disposed of according to applicable state and federal laws and regulations.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.654  Creation of marijuana extracts; development of standard operating procedures, good manufacturing practices and training plan. (NRS 453D.200)

     1.  A marijuana product manufacturing facility may only use the methods, equipment, solvents, gases and mediums set forth in this section when creating marijuana extracts.

     2.  A marijuana product manufacturing facility may use the hydrocarbons N-butane, isobutane, propane, heptane or other solvents or gases exhibiting low to minimal potential human health-related toxicity approved by the Department. These solvents must be of at least 99 percent purity and a marijuana product manufacturing facility must, when using such solvents:

     (a) Use the solvents in a professional grade, closed-loop extraction system designed to recover the solvents;

     (b) Work in a spark-free environment with proper ventilation; and

     (c) Follow all applicable local fire, safety and building codes in the processing and storage of the solvents.

     3.  A marijuana product manufacturing facility may use a professional grade, closed-loop CO2 gas extraction system where every vessel is rated to a minimum of 900 pounds per square inch and it follows all applicable local fire, safety and building codes in the processing and the storage of the solvents. The CO2 must be of at least 99 percent purity.

     4.  A marijuana product manufacturing facility may use heat, screens, presses, steam distillation, ice water and other methods without employing solvents or gases to create kief, hashish, bubble hash, infused dairy butter, or oils or fats derived from natural sources, and other extracts.

     5.  A marijuana product manufacturing facility may use food grade glycerin, ethanol and propylene glycol solvents to create marijuana extracts.

     6.  A marijuana product manufacturing facility which creates marijuana extracts must develop standard operating procedures, good manufacturing practices and a training plan before producing marijuana extracts for the marketplace. Any person using solvents or gases in a closed-looped system to create marijuana extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and safely handle and store the solvents and gases.

     7.  The acceptable parts per million for 1 gram of finished extract of residual solvent or gas will be determined by the Independent Laboratory Advisory Committee established pursuant to NAC 453A.666.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.658  Requirements and restrictions on use of nonmarijuana ingredients. (NRS 453D.200)

     1.  Each marijuana product manufacturing facility shall ensure that it obtains nonmarijuana ingredients for marijuana products from sources that comply with the requirements of federal and state law and regulations and are approved by the Department, including, without limitation, commercial and retail businesses.

     2.  A marijuana product manufacturing facility shall not use or prepare nonmarijuana ingredients prepared or stored in a private home.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.662  Protection of products and ingredients from cross-contamination. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 2, each marijuana product manufacturing facility shall ensure that marijuana products and ingredients are protected from cross-contamination by:

     (a) Separating raw animal ingredients during storage, preparation, holding and display from raw marijuana products, or other raw finished ingredients such as fruits and vegetables, and from concentrated marijuana and cooked or baked and finished marijuana products which are ready to eat or otherwise use.

     (b) Except when combined as ingredients, separating types of raw animal ingredients from each, including, without limitation, meat, poultry and eggs, during storage, preparation, holding and display by preparing each type of raw animal ingredient at a different time or in a different area and:

          (1) Using separate equipment for each type of raw animal ingredient; or

          (2) Arranging each type of raw animal ingredient in equipment so that cross-contamination of one type of raw animal ingredient with another is prevented.

     (c) Preparing each type of raw animal ingredient at different times or in separate areas.

     2.  The provisions of subsection 1 do not apply to items stored frozen in a freezer.

     3.  Marijuana products must be protected from contamination by storing the product in a clean, dry location:

     (a) Where the products are not exposed to splashes, dust or other contamination; and

     (b) Fifteen centimeters or more above the floor.

     4.  Marijuana products and direct contact surfaces of equipment and utensils must be stored and handled in a manner that prevents any biological, chemical or physical contamination at all times.

     5.  Chemical sanitizer must be available for immediate use at the proper concentration during all hours of operation in a location other than a three-compartment sink.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.664  Use of pasteurized eggs and egg products; cleanliness of equipment, utensils and articles; requirements for temperature controls. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  Pasteurized eggs or egg products are substituted for raw eggs in the preparation of marijuana products.

     2.  Marijuana products and ingredients only have contact with the surfaces of:

     (a) Equipment and utensils that are cleaned and sanitized; or

     (b) Single-service and single-use articles that have not previously been used.

     3.  Ingredients such as eggs, meat, poultry and marijuana containing these raw animal ingredients are cooked to heat all parts of the marijuana product to a temperature and for a time that complies with one of the following methods based on the product that is being cooked:

     (a) At 145°F (63°C) or above for 15 seconds for meat, including, without limitation, commercially raised game animals.

     (b) At 155°F (68°C) or above for 15 seconds for:

          (1) Mechanically tenderized and injected meats; and

          (2) Meat and commercially raised game animals if it is comminuted.

     (c) At 165°F (74°C) or above for 15 seconds for poultry, stuffed meat, stuffed pasta, stuffed poultry or stuffing containing meat or poultry.

     4.  Except during preparation, cooking or cooling, potentially hazardous marijuana products and ingredients are maintained:

     (a) At 135°F (57°C) or above; or

     (b) At 41°F (5°C) or less.

     5.  During the thawing process, potentially hazardous marijuana products and ingredients are:

     (a) Maintained at 41°F (5°C) or less; and

     (b) Thawed:

          (1) Under refrigeration;

          (2) Under cool running water;

          (3) As part of the cooking process; or

          (4) In a microwave only if the potentially hazardous marijuana products and ingredients will be cooked immediately thereafter.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.668  Clear marking of potentially hazardous marijuana products; determination of expiration date and shelf life of perishable products. (NRS 453D.200)

     1.  Each marijuana product manufacturing facility shall ensure that:

     (a) Potentially hazardous marijuana products and ingredients prepared and held by the facility for more than 24 hours are clearly marked to indicate the date or day by which the item must be consumed on the premises, sold or discarded when held at a temperature of 41ºF (5ºC) or less for a maximum of 7 days or, if the item is frozen, when the item is subsequently thawed and held at a temperature of 41ºF (5ºC) or less for a maximum of 7 days; and

     (b) Potentially hazardous marijuana products and ingredients that are prepared and packaged by a commercial processing plant are clearly marked at the time that the original container is opened and, if the item is held for more than 24 hours, indicate the date or day by which the item must be consumed, sold or discarded, based on the temperature and time combination set forth in paragraph (a). The day on which the original container is opened in the marijuana establishment must be counted as “day 1.” The day or date marked by the marijuana product manufacturing facility may not exceed a use-by date of the manufacturer if the manufacturer determined the use-by date.

     2.  If a marijuana product manufacturing facility produces a marijuana product which is perishable, the expiration date for the marijuana product must:

     (a) Be determined as a result of shelf-life testing pursuant to subsection 3; or

     (b) Not exceed 7 days, including the date of preparation of the marijuana product, if the marijuana product is refrigerated.

     3.  A marijuana product manufacturing facility shall perform testing, as specified by the Department, to determine the shelf life of each marijuana product which is perishable for the first production run of each such marijuana product. The Department will determine which marijuana products require testing to determine shelf life during the review and approval of each marijuana product. New testing pursuant to this subsection must be performed for any change in the recipe, production run size or equipment used to produce a marijuana product.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.672  Edible marijuana products: Testing to ensure homogeneity of potency; requirements for sale; approval of Department required for certain changes. (NRS 453D.200)

     1.  Each marijuana product manufacturing facility shall contract with a marijuana testing facility to perform testing to ensure the homogeneity of the potency of the product on each edible marijuana product produced by the facility. A marijuana product manufacturing facility shall not sell an edible marijuana product unless the Department has preapproved the production of the edible marijuana product and a marijuana testing facility has verified the homogeneity of the potency of the product as described in NAC 453D.784.

     2.  A marijuana product manufacturing facility shall not sell an edible marijuana product other than a multiple-serving edible marijuana product or a single-serving edible marijuana product. An edible marijuana product sold as a multiple-serving edible marijuana product must not contain more than 100 milligrams of THC. An edible marijuana product sold as a single-serving edible marijuana product must not contain more than 10 milligrams of THC.

     3.  A marijuana product manufacturing facility shall not sell an edible marijuana product unless the Department has approved that:

     (a) The recipe and production procedures for the edible marijuana product will ensure consistent concentration of THC for the edible marijuana product; and

     (b) The marijuana product manufacturing facility has demonstrated that its process for producing the edible marijuana product produces a homogenous product.

     4.  Any change in the recipe, production run size or equipment used to produce an edible marijuana product must be approved by the Department. The Department may require new approval or testing pursuant to this section for such a change.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.676  Requirements for sinks and running water. (NRS 453D.200)

     1.  Each marijuana product manufacturing facility shall ensure that it provides:

     (a) A sink with at least three compartments for manually washing, rinsing and sanitizing equipment and utensils;

     (b) Sink compartments that are large enough to accommodate immersion of the largest equipment and utensils; and

     (c) Running water that reaches a minimum temperature of 120°F (49°C).

     2.  If equipment or utensils are too large for the warewashing sink, a marijuana product manufacturing facility must use a warewashing machine or alternative equipment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.680  Requirements for sanitizers. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  In a mechanical operation, the temperature of the fresh hot water sanitizing rinse as it enters the manifold is not more than 194°F (90°C) or less than 180°F (82°C).

     2.  A chemical sanitizer used in a sanitizing solution for a manual or mechanical operation at contact times is used in accordance with the manufacturer’s label use instructions that are approved by the Environmental Protection Agency, and as follows:

     (a) A chlorine solution must have a concentration between 50 parts per million and 100 parts per million or be otherwise prepared in accordance with the manufacturer’s label.

     (b) An iodine solution must have a concentration between 12.5 parts per million and 25 parts per million or be otherwise prepared in accordance with the manufacturer’s label.

     (c) A quaternary ammonium compound solution must have a concentration between 150 parts per million and 400 parts per million or be otherwise prepared in accordance with the manufacturer’s label.

     3.  If a chemical sanitizer other than chlorine, iodine or a quaternary ammonium compound is used, it is applied in accordance with the manufacturer’s label use instructions that are approved by the Environmental Protection Agency and the use of the chemical sanitizer is approved by the Department.

     4.  A sanitizer bucket or spray bottle is readily available during all hours of operation and kept at the proper concentration.

     5.  Test strips which are appropriate for the type of chemical sanitizer in use are available and used properly.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.682  Requirements for materials used in construction of utensils and contact surfaces. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that the materials that are used in the construction of utensils and the contact surfaces of equipment:

     1.  Do not allow the migration of deleterious substances or impart colors, odors or tastes to marijuana products; and

     2.  Under normal use conditions are:

     (a) Safe;

     (b) Durable, corrosion-resistant and nonabsorbent;

     (c) Sufficient in weight and thickness to withstand repeated warewashing;

     (d) Finished to have a smooth, easily cleanable surface; and

     (e) Resistant to pitting, chipping, crazing, scratching, scoring, distortion and decomposition.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.684  Requirements for lighting. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that the light intensity in the facility is:

     1.  At least 20 foot candles (215 lux):

     (a) At a distance of 30 inches (75 cm) above the floor in walk-in refrigeration units and areas for storage of dry marijuana products and in other areas and rooms during periods of cleaning;

     (b) Inside equipment such as reach-in and under-counter refrigerators; and

     (c) At a distance of 30 inches (75 cm) above the floor in areas used for hand washing, warewashing and equipment and utensil storage and in toilet rooms.

     2.  At least 50 foot candles (540 lux) at a surface where a marijuana establishment agent engaged in the extraction of concentrated marijuana or production of marijuana products is working with marijuana products or working with utensils or equipment, including, without limitation, knives, slicers, grinders or saws where employee safety is a factor.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.686  Requirements for filters for liquid filtration; prohibition on asbestos-containing filter. (NRS 453D.200)

     1.  Each marijuana product manufacturing facility shall ensure that filters for liquid filtration used in the extraction of concentrated marijuana or manufacture, processing or packaging of marijuana products intended for human use do not release fibers into such products.

     2.  A marijuana product manufacturing facility shall not use an asbestos-containing filter.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.688  Sufficiency of ventilation hood systems and devices. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that its ventilation hood systems and devices are sufficient in number and capacity to prevent grease or condensation from collecting on walls and ceilings.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.690  Sufficiency of mechanical ventilation. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that it provides mechanical ventilation of sufficient capacity as necessary to keep rooms free of excessive heat, steam, condensation, vapors, obnoxious odors, smoke and fumes.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.692  Surfaces of equipment and utensils: Cleanliness. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  The surfaces of equipment and utensils that have direct contact with marijuana products are clean to sight and touch;

     2.  The surfaces of cooking equipment and pans that have direct contact with marijuana products are kept free of encrusted grease deposits and other soil accumulations; and

     3.  The surfaces of equipment that do not have direct contact with marijuana products are kept free of an accumulation of dust, dirt, residue and other debris.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.694  Surfaces of equipment and utensils: Frequency of and activities requiring cleaning. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  The surfaces of equipment and utensils that have direct contact with marijuana products are cleaned:

     (a) Before each use with a different type of raw animal ingredient, including, without limitation, beef, pork or poultry;

     (b) Each time there is a change from working with raw marijuana products to working with finished marijuana products;

     (c) Between uses with raw fruits and vegetables and with potentially hazardous marijuana products and ingredients, using the appropriate time and temperature controls to ensure the safety of the marijuana products; and

     (d) At any time during operation when contamination may have occurred.

     2.  If the surfaces of equipment or utensils come into contact with potentially hazardous marijuana products and ingredients, the surfaces and utensils are cleaned throughout the day at least once every 4 hours.

     3.  The surfaces of utensils and equipment that have direct contact with marijuana products and ingredients that are not potentially hazardous are cleaned:

     (a) At any time when contamination may have occurred; and

     (b) In equipment, including, without limitation, ice bins and beverage dispensing nozzles, and enclosed components of equipment, such as ice makers, cooking oil storage tanks and distribution lines, beverage and syrup dispensing lines or tubes, coffee bean grinders and water vending equipment:

          (1) At a frequency specified by the manufacturer; or

          (2) If the manufacturer does not specify a frequency, at a frequency necessary to prevent the accumulation of soil or mold.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.696  Surfaces and utensils: Sanitation. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  The surfaces and utensils that have direct contact with marijuana products are adequately washed, rinsed and sanitized.

     2.  After being cleaned, surfaces of equipment and utensils that have direct contact with marijuana products are sanitized in:

     (a) Hot water manual operations by immersion for at least 30 seconds with a temperature of 170°F (77°C) or above;

     (b) Hot water mechanical operations by being cycled through equipment that is set up and achieving a utensil surface temperature of 160°F (71°C) as measured by an irreversible registering temperature indicator; or

     (c) Chemical manual or mechanical operations, including, without limitation, the application of sanitizing chemicals by immersion, manual swabbing, brushing or pressure spraying methods using a solution as specified on the manufacturer’s label use instructions that are approved by the Environmental Protection Agency, by providing an exposure time of at least 30 seconds unless the manufacturer’s label use instructions provide otherwise.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.698  Surfaces of cooking and baking equipment and door seals of microwave ovens: Cleanliness. (NRS 453D.200)  Each marijuana product manufacturing facility shall ensure that:

     1.  The surfaces of cooking and baking equipment that have direct contact with marijuana products are cleaned at least once every 24 hours; and

     2.  The cavities and door seals of microwave ovens are cleaned at least once every 24 hours by using the recommended cleaning procedure of the manufacturer.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

MINIMUM GOOD MANUFACTURING PRACTICES FOR CULTIVATION AND PREPARATION OF MARIJUANA AND MARIJUANA PRODUCTS FOR ADMINISTRATION TO HUMANS

     NAC 453D.700  Establishment of minimum good manufacturing practices. (NRS 453D.200)  NAC 453D.700 to 453D.745, inclusive, set forth the minimum good manufacturing practices for the cultivation and preparation of marijuana and marijuana products for administration to humans.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.705  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Requirement to have quality control unit. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall have a quality control unit that:

     (a) Has the responsibility and authority to approve or reject all components, product containers, closures, in-process materials, packaging materials, labeling and marijuana or marijuana products;

     (b) Has the authority to review production records to assure that no errors have occurred or, if errors have occurred, that the errors have been fully investigated and resolved;

     (c) Is responsible for approving or rejecting marijuana or marijuana products manufactured, processed, packaged or held under contract by another marijuana establishment; and

     (d) Is responsible for approving or rejecting all procedures or specifications which may impact the identity, strength, quality and purity of the marijuana or marijuana products.

     2.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall:

     (a) Set forth the responsibilities and procedures applicable to the quality control unit in writing; and

     (b) Follow the written responsibilities and procedures set forth pursuant to paragraph (a).

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.708  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Adequate ventilation, filtration systems and related equipment required for building. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall ensure that any building used to manufacture, process, package or hold marijuana or marijuana products:

     (a) Has adequate ventilation; and

     (b) Contains equipment for adequate control over air pressure, microorganisms, dust, humidity and temperature when appropriate for the manufacture, processing, packaging or holding of marijuana or marijuana products.

     2.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store must use filtration systems, including, without limitation, prefilters and particulate matter air filters, when appropriate on air supplies to production areas. If air is recirculated to production areas, the marijuana establishment must take measures to control recirculation of dust from production. In areas where air contamination occurs during production, the marijuana establishment must ensure that there are adequate exhaust systems or other systems adequate to control contaminants.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.712  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for labeling and packaging materials. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall establish and follow written procedures describing in sufficient detail the receipt, identification, storage, handling, sampling, examination and testing of labeling and packaging materials.

     2.  Any labeling or packaging materials that meet the appropriate written specifications established pursuant to subsection 1 may be approved and released for use. Any labeling or packaging materials that do not meet the specifications established pursuant to subsection 1 must be rejected to prevent their use in operations for which they are unsuitable.

     3.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall:

     (a) Store separately with suitable identification the labels and other labeling materials for each type of marijuana or marijuana product, and the different strength, dosage form or quantity of contents;

     (b) Limit access to the storage area described in paragraph (a) to authorized personnel of the marijuana establishment; and

     (c) Destroy obsolete and outdated labels, labeling and other packaging materials.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.715  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for production and process control to assure quality of marijuana and marijuana products; review and approval of procedures; recording and justification of deviation from procedures. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall have written procedures for production and process control that are designed to assure that the marijuana or marijuana products have the identity, strength, quality and purity they purport or are represented to possess.

     2.  The written procedures required pursuant to subsection 1 and any changes to those procedures must be drafted, reviewed and approved by the appropriate organizational units of the marijuana establishment and reviewed and approved by the quality control unit of the marijuana establishment.

     3.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall follow written production and process control procedures in executing various production and process control functions and shall document these procedures at the time of performance. Any deviation from the written procedures must be recorded and justified by the marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.718  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Establishment of and adherence to written procedures for components, product containers and closures. (NRS 453D.200)  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall ensure that:

     1.  It has written procedures describing in sufficient detail the receipt, identification, storage, handling, sampling, testing and approval or rejection of components, product containers and closures and that it follows those procedures;

     2.  Components, product containers and closures are at all times handled and stored in a manner so as to prevent contamination; and

     3.  Bagged or boxed components, product containers or closures are stored at least 6 inches off the floor and are suitably spaced to permit cleaning and inspection.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.720  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Appropriateness, cleanliness and maintenance of equipment, utensils and substances; maintenance of records. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall ensure that any equipment used to manufacture, process, package or hold marijuana or marijuana products:

     (a) Is of appropriate design and adequate size and is suitably located to facilitate operations for its intended use and for its cleaning and maintenance; and

     (b) Is constructed so that surfaces which have direct contact with components, in-process materials, marijuana or marijuana products are not reactive, additive or absorptive so as to alter the safety, identity, strength, quality or purity of the marijuana or marijuana products beyond the official or other established requirements.

     2.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall ensure that:

     (a) Any substances required for its operation, such as lubricants or coolants, do not come into contact with components, product containers, in-process materials, marijuana or marijuana products so as to alter the safety, identity, strength, quality or purity of the marijuana or marijuana products beyond the official or other established requirements;

     (b) Equipment and utensils are cleaned, maintained and, as appropriate for the nature of the marijuana or marijuana products, sanitized and sterilized at appropriate intervals to prevent malfunctions or contamination that would alter the safety, identity, strength, quality or purity of the marijuana or marijuana products beyond the official or other established requirements; and

     (c) Written procedures are established and followed for the cleaning and maintenance of equipment and utensils used to manufacture, process, package or hold marijuana or marijuana products. These procedures must include, without limitation:

          (1) Assignment of responsibility for cleaning and maintaining equipment;

          (2) Maintenance and cleaning schedules, including, where appropriate, sanitizing schedules;

          (3) A description in sufficient detail of the methods, equipment and materials used in cleaning and maintenance operations and the methods of disassembling and reassembling equipment as necessary to assure proper cleaning and maintenance;

          (4) Protection of clean equipment from contamination before use; and

          (5) Inspection of equipment for cleanliness immediately before use.

     3.  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store must maintain records of any maintenance, cleaning, sanitizing and inspection carried out pursuant to this section.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.725  Marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store: Requirement to ensure cleanliness of employees and volunteers. (NRS 453D.200)  Each marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store shall ensure that:

     1.  Each marijuana establishment agent who is employed by or volunteers at the marijuana establishment and who is engaged in cultivating, manufacturing, processing, packaging or holding marijuana or marijuana products wears clean clothing appropriate for the duties he or she performs;

     2.  Protective apparel, such as head, face, hand and arm coverings, are worn as necessary to protect marijuana or marijuana products from contamination; and

     3.  Each marijuana establishment agent who is employed by or volunteers at the marijuana establishment practices good sanitation and health habits.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.728  Marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store: Restrictions on salvaging marijuana and marijuana products; maintenance of records. (NRS 453D.200)

     1.  Each marijuana cultivation facility, marijuana product manufacturing facility, marijuana distributor and retail marijuana store shall ensure that marijuana or marijuana products that have been subjected to improper storage conditions, including, without limitation, extremes in temperature, humidity, smoke, fumes, pressure, age or radiation due to natural disasters, fires, accidents or equipment failures, are not salvaged and returned to the marketplace.

     2.  Whenever it is unclear whether marijuana or marijuana products have been subjected to the conditions described in subsection 1, a marijuana cultivation facility, marijuana product manufacturing facility or retail marijuana store may conduct salvaging operations only if:

     (a) The marijuana or marijuana products are salvaged for use only for the purpose of extraction;

     (b) Evidence from tests and assays performed by a marijuana testing facility indicates that the marijuana or marijuana products meet all applicable standards of quality and purity; and

     (c) Evidence from inspection of the premises indicates that the marijuana or marijuana products and their associated packaging were not subjected to improper storage conditions as a result of the disaster or accident, if any.

     3.  A marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store must maintain records, including, without limitation, the name, lot number, production run number and disposition for marijuana or marijuana products salvaged pursuant to subsection 2.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.732  Marijuana establishment: Requirements for building used to manufacture, process, package or hold marijuana. (NRS 453D.200)

     1.  Each marijuana establishment shall ensure that any building used to manufacture, process, package or hold marijuana or marijuana products:

     (a) Is of suitable size, construction and location to facilitate cleaning, maintenance and proper operations;

     (b) Has adequate space for the orderly placement of equipment and materials to prevent miscalculation or misuse of any component in any step of the manufacture, control, packaging, labeling or distribution of marijuana or marijuana products between different components, product containers, closures, labels, in-process materials and marijuana or marijuana products and to prevent contamination; and

     (c) Contains interior surfaces which are not constructed of bare, painted or coated wood or wood product unless:

          (1) The bare, painted or coated wood is within a building used only as a retail marijuana store and all marijuana or marijuana products are packaged or protected at all times; or

          (2) The wood is sealed and coated with an epoxy paint which renders the surface:

               (I) Safe;

               (II) Durable, corrosion-resistant, nonporous and nonabsorbent;

               (III) Finished to have a smooth, easily cleanable surface; and

               (IV) Resistant to pitting, chipping, crazing, scratching, scoring, distortion and decomposition.

     2.  Each marijuana establishment shall ensure that:

     (a) The flow of components, product containers, closures, labels, in-process materials and marijuana and marijuana products through any building used to manufacture, process, package or hold marijuana or marijuana products is designed to prevent contamination;

     (b) The operations of the marijuana establishment are performed within specifically defined areas of adequate size;

     (c) All items are stored at least 6 inches (15 cm) off the floor;

     (d) All access points to outside areas are sealed, including, without limitation, by use of door sweeps; and

     (e) There are separate or defined areas or such other control systems for the operations of the marijuana establishment as are necessary to prevent contamination or miscalculation or misuse of any component in any step of the manufacture, control, packaging, labeling or distribution of marijuana or marijuana products during the course of the following procedures:

          (1) Receipt, identification, storage and withholding from use of components, product containers, closures and labels, pending the appropriate sampling, testing or examination by the quality control unit before release for manufacturing, processing or packaging;

          (2) Holding rejected components, product containers, closures and labels before disposition;

          (3) Storage of released components, product containers, closures and labels;

          (4) Storage of in-process materials;

          (5) Processing operations;

          (6) Packaging and labeling operations;

          (7) Quarantine storage before the release of marijuana or marijuana products;

          (8) Storage of marijuana or marijuana products after release;

          (9) Control and marijuana testing facility operations; and

          (10) Sanitary processing, which includes as appropriate:

               (I) Floors, walls and ceilings made of smooth, hard surfaces that are easily cleanable;

               (II) Temperature and humidity controls;

               (III) An air supply filtered through high-efficiency particulate air filters under positive pressure;

               (IV) A system for monitoring environmental conditions;

               (V) A system for cleaning and sanitizing rooms and equipment; and

               (VI) A system for maintaining any equipment used to control sanitary conditions.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.734  Marijuana establishment: Requirement to maintain building used to manufacture, process, package or hold marijuana in good state of repair. (NRS 453D.200)  Each marijuana establishment shall ensure that any building used to manufacture, process, package or hold marijuana or marijuana products is maintained in a good state of repair.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.736  Marijuana establishment: Requirements for water, plumbing and drains in building used to manufacture, process, package or hold marijuana. (NRS 453D.200)  Each marijuana establishment shall ensure that:

     1.  Any building used to manufacture, process, package or hold marijuana or marijuana products supplies potable water under continuous positive pressure in a plumbing system free of defects that could contribute to the contamination of any marijuana or marijuana products. Potable water must meet the standards prescribed in the Primary Drinking Water Regulations, 40 C.F.R. Part 141. Water not meeting such standards is not permitted in the potable water system.

     2.  Drains are of adequate size and, where connected directly to a sewer, are provided with an air break or other mechanical device to prevent back-siphonage.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.738  Marijuana establishment: Adequate lighting. (NRS 453D.200)

     1.  Each marijuana establishment shall ensure that adequate lighting is provided in all areas of the marijuana establishment.

     2.  If it is necessary for a marijuana establishment to have dim or no lighting in a certain area of the marijuana establishment for a specific reason, the marijuana establishment must have a written policy which specifies:

     (a) The area needing dim or no lighting; and

     (b) The reason the area needs dim or no lighting.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.740  Marijuana establishment: Establishment of and adherence to written procedures for sanitation; requirement to retain person who is certified applicator of pesticides. (NRS 453D.200)

     1.  Each marijuana establishment shall ensure that it has written procedures:

     (a) Assigning responsibility for sanitation and describing in sufficient detail the cleaning schedules, methods, equipment and materials to be used in cleaning the buildings and facilities of the marijuana establishment; and

     (b) For the use of appropriate rodenticides, insecticides, fungicides, fumigating agents and cleaning and sanitizing agents by the marijuana establishment.

     2.  Each marijuana establishment shall ensure that the written procedures described in subsection 1 are followed.

     3.  All sanitation procedures of a marijuana establishment apply to work performed by contractors or temporary marijuana establishment agents for the marijuana establishment as well as work performed by full-time marijuana establishment agents during the ordinary course of operations.

     4.  Each marijuana cultivation facility shall retain at least one person who is a certified applicator, as defined in NRS 555.2618, who is authorized to use pesticides for:

     (a) If the marijuana cultivation facility engages in the cultivation of marijuana indoors, greenhouse and nursery pest control pursuant to subparagraph (2) of paragraph (c) of subsection 1 of NAC 555.640; and

     (b) If the marijuana cultivation facility engages in the cultivation of marijuana outdoors, agricultural pest control of animals or plants pursuant to paragraph (a) or (b) of subsection 1 of NAC 555.640.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.745  Marijuana establishment: Storage, management and disposal of waste. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 2, a marijuana establishment shall:

     (a) Store, manage and dispose of all solid and liquid waste and wastewater generated during the processing of marijuana or production of marijuana products in accordance with all applicable state and local laws and regulations; and

     (b) Render waste containing marijuana unusable before the waste leaves the marijuana establishment. Such waste includes, without limitation:

          (1) Waste from marijuana plants, including, without limitation, roots, stalks, leaves, stems, flower, trim or solid plant material and any plant material used to create an extract;

          (2) Solvents used in the processing of marijuana or extraction of concentrated marijuana;

          (3) Any plant material or solvents discarded as a result of quality assurance testing or any other testing performed by a marijuana testing facility; and

          (4) Any other waste as determined by the Department.

     2.  A marijuana distributor or retail marijuana store may return a marijuana product to a marijuana cultivation facility or marijuana product manufacturing facility to be rendered unusable.

     3.  Unless another method approved by the Department is used, waste containing marijuana must be rendered unusable by grinding and incorporating the waste with:

     (a) For disposal using an organic method other than composting, the following kinds of compostable mixed waste:

          (1) Food waste;

          (2) Yard waste;

          (3) Soil; or

          (4) Other waste as approved by the Department; or

     (b) For disposal in a landfill or other method not described in paragraph (a), the following kinds of noncompostable mixed waste:

          (1) Paper waste;

          (2) Cardboard waste;

          (3) Plastic waste; or

          (4) Other waste as approved by the Department.

Ê The amount of waste containing marijuana in the resulting mixture must be less than 50 percent by volume. Such waste must not be disposed of by composting.

     4.  A marijuana establishment shall provide notice to the Department using the seed-to-sale tracking system before rendering unusable and disposing of marijuana or marijuana products.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

MARIJUANA TESTING FACILITIES

     NAC 453D.755  Employment, qualifications and duties of scientific director; inspection of testing facility upon appointment of new director. (NRS 453D.200)

     1.  Each marijuana testing facility must employ a scientific director who must be responsible for:

     (a) Ensuring that the marijuana testing facility achieves and maintains quality standards of practice; and

     (b) Supervising all staff of the marijuana testing facility.

     2.  The scientific director of a marijuana testing facility must have earned:

     (a) A doctorate degree in science from an accredited college or university and have at least 2 years of post-degree laboratory experience;

     (b) A master’s degree in science from an accredited college or university and have at least 4 years of post-degree laboratory experience; or

     (c) A bachelor’s degree in science from an accredited college or university and have at least 6 years of post-degree laboratory experience.

     3.  If a scientific director is no longer employed by a marijuana testing facility, the marijuana testing facility shall not be permitted to conduct any testing.

     4.  Upon the appointment of a new scientific director by a marijuana testing facility, the marijuana testing facility shall not resume any testing until the Department conducts an inspection of the marijuana testing facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.758  Requirements for testing facility to handle, test or analyze marijuana. (NRS 453D.200)

     1.  A marijuana testing facility shall not handle, test or analyze marijuana unless:

     (a) The marijuana testing facility has been issued a license;

     (b) The marijuana testing facility is independent from all other persons involved in the marijuana industry in Nevada; and

     (c) No person with a direct or indirect interest in the marijuana testing facility has a direct or indirect financial interest in:

          (1) A retail marijuana store;

          (2) A marijuana product manufacturing facility;

          (3) A marijuana cultivation facility;

          (4) A marijuana distributor;

          (5) A provider of health care who provides or has provided written documentation for the issuance of registry identification cards or letters of approval; or

          (6) Any other entity that may benefit from the cultivation, manufacture, dispensing, sale, purchase or use of marijuana or marijuana products.

     2.  A marijuana testing facility is not required to use a marijuana distributor to collect or move samples for testing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.760  Agreement to become accredited within 1 year after licensure; provision of annual inspection report to Department; inspection by accrediting organization is not substitute for inspection by Department. (NRS 453D.200)

     1.  Each marijuana testing facility must agree to become accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization within 1 year after licensure.

     2.  Each marijuana testing facility that claims to be accredited must provide the Department with copies of each annual inspection report from the accrediting organization, including, without limitation, any deficiencies identified in and any corrections made in response to the report.

     3.  Inspection by an accrediting organization is not a substitute for inspection by the Department.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.764  Adherence to general laboratory standards, practices, procedures and programs; inspection by Department or authorized third party; adoption of publications by reference. (NRS 453D.200)

     1.  Each marijuana testing facility must:

     (a) Follow the most current version of the Cannabis Inflorescence: Standards of Identity, Analysis, and Quality Control monograph published by the American Herbal Pharmacopoeia.

     (b) Follow the Recommendations for Regulators — Cannabis Operations published by the American Herbal Products Association.

     (c) Be accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization by an impartial organization that operates in conformance 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.

     (d) Follow the Guidelines for Laboratories Performing Microbiological and Chemical Analyses of Food, Dietary Supplements, and Pharmaceuticals — An Aid to the Interpretation of ISO/IEC 17025:2005 (2015) published by AOAC International.

     2.  Each marijuana testing facility shall become proficient in testing samples using the analytical methods approved by the Department within 6 months after the date upon which the marijuana testing facility is issued a license.

     3.  The Department may require a marijuana testing facility to have the basic proficiency of the marijuana testing facility to execute correctly the analytical testing methodologies used by the marijuana testing facility validated and monitored on an ongoing basis by an independent third party.

     4.  Each marijuana testing facility shall:

     (a) Adopt and follow minimum good laboratory practices which must, at a minimum, satisfy the OECD Series on Principles of Good Laboratory Practice (GLP) and Compliance Monitoring published by the Organisation for Economic Co-operation and Development.

     (b) Become certified by the International Organization for Standardization and agree to have the inspections and reports of the International Organization for Standardization made available to the Department.

     (c) Maintain internal standard operating procedures.

     (d) Maintain a quality control and quality assurance program.

     5.  The Department or an independent third party authorized by the Department may conduct an inspection of the practices, procedures and programs adopted, followed and maintained pursuant to subsection 4 and inspect all records of the marijuana testing facility that are related to the inspection.

     6.  A marijuana testing facility must use, when available, testing methods that have undergone validation by the Official Methods of Analysis of AOAC International, the Performance Tested Methods Program of the Research Institute of AOAC International, the Bacteriological Analytical Manual of the Food and Drug Administration, the International Organization for Standardization, the United States Pharmacopeia, the Microbiology Laboratory Guidebook of the Food Safety and Inspection Service of the United States Department of Agriculture or an equivalent third-party validation study approved by the Department of Taxation. If no such testing method is available, a marijuana testing facility may use an alternative testing method or a testing method developed by the marijuana testing facility upon demonstrating the validity of the testing method to and receiving the approval of the Department.

     7.  The Department hereby adopts by reference:

     (a) The Cannabis Inflorescence: Standards of Identity, Analysis, and Quality Control monograph published by the American Herbal Pharmacopoeia. A copy of that publication may be obtained from the American Herbal Pharmacopoeia, P.O. Box 66809, Scotts Valley, California 95067, or at the Internet address http://www.herbal-ahp.org/, for the price of $44.95.

     (b) The OECD Series on Principles of Good Laboratory Practice (GLP) and Compliance Monitoring published by the Organisation for Economic Co-operation and Development. A copy of that publication may be obtained free of charge from the Organisation for Economic Co-operation and Development at the Internet address http://www.oecd.org/env/ehs/testing/oecdseriesonprinciplesofgoodlaboratorypracticeglpandcompliancemonitoring.htm.

     (c) Standard ISO/IEC 17025 published by the International Organization for Standardization. A copy of that publication may be obtained from the American National Standards Institute at the Internet address https://webstore.ansi.org/RecordDetail.aspx?sku=ISO%2fIEC+17025%3a2005 for the price of $162.

     (d) The Guidelines for Laboratories Performing Microbiological and Chemical Analyses of Food, Dietary Supplements, and Pharmaceuticals — An Aid to the Interpretation of ISO/IEC 17025:2005 (2015) published by AOAC International. A copy of that publication may be obtained from AOAC International at the Internet address http://www.aoac.org/aoac_prod_imis/AOAC/AOAC_Member/PUBSCF/ALACCCF/ALACC_M.aspx for the price of $190.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.766  Establishment of policies for adequate chain of custody and requirements for samples of products provided to testing facility. (NRS 453D.200)  Each marijuana testing facility must establish policies for an adequate chain of custody and requirements for samples of products provided to the marijuana testing facility for testing or research purposes, including, without limitation, policies and requirements for:

     1.  Issuing instructions for the minimum sample and storage requirements;

     2.  Documenting the condition of the external package and integrity seals utilized to prevent contamination of, or tampering with, the sample;

     3.  Documenting the condition and amount of the sample provided at the time of receipt;

     4.  Documenting all persons handling the original samples, aliquots and extracts;

     5.  Documenting all transfers of samples, aliquots and extracts referred to another marijuana testing facility for additional testing or whenever requested by a client;

     6.  Maintaining a current list of authorized marijuana establishment agents and restricting entry to the laboratory to only those authorized;

     7.  Securing the marijuana testing facility during nonworking hours;

     8.  Securing short- and long-term storage areas when not in use;

     9.  Utilizing a secured area to log-in and aliquot samples;

     10.  Ensuring samples are stored appropriately; and

     11.  Documenting the disposal of samples, aliquots and extracts.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.768  No limitation on amount of usable marijuana and marijuana products on premises of testing facility; maintenance of records to prove amount on premises is for testing purposes only. (NRS 453D.200)  A marijuana testing facility is not limited in the amount of usable marijuana and marijuana products it may have on the premises of the marijuana testing facility at any given time, but the marijuana testing facility must maintain records to prove that all usable marijuana and marijuana products on the premises are there for testing purposes only.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.772  Proficiency testing program: Establishment by Department; required participation by testing facilities; conditions for successful participation; unsuccessful participation grounds for limitation, suspension or revocation of license; request for retest of proficiency testing sample; effect of denial of request for retest or failure of retest. (NRS 453D.200)

     1.  The Department will establish a proficiency testing program for marijuana testing facilities. A proficiency testing program must include, without limitation, providing rigorously controlled and standardized proficiency testing samples to marijuana testing facilities for analysis, reporting the results of such analysis and performing a statistical evaluation of the collective demographics and results of all marijuana testing facilities.

     2.  Each marijuana testing facility must participate in the proficiency testing program established pursuant to this section.

     3.  If required by the Department as part of being issued or renewing a license, the marijuana testing facility must have successfully participated in the proficiency testing program within the preceding 12 months.

     4.  To maintain continued licensure as a marijuana testing facility, a marijuana testing facility must participate in the designated proficiency testing program with continued satisfactory performance as determined by the Department.

     5.  A marijuana testing facility must analyze proficiency testing samples using the same procedures with the same number of replicate analyses, standards, testing analysts and equipment as used for product testing.

     6.  The scientific director of the marijuana testing facility and all testing analysts that participated in proficiency testing must sign corresponding attestation statements.

     7.  The scientific director of the marijuana testing facility must review and evaluate all proficiency testing results.

     8.  Successful participation includes the positive identification of 80 percent of the target analytes that the marijuana testing facility reports to include quantitative results when applicable. Any false positive results reported will be considered an unsatisfactory score for the proficiency testing.

     9.  Unsuccessful participation in proficiency testing may result in limitation, suspension or revocation of the license of the marijuana testing facility.

     10.  The Department will select a proficiency testing provider to conduct the proficiency testing program and determine the schedule that the proficiency testing provider will follow when sending proficiency testing samples to marijuana testing facilities for analysis.

     11.  In addition to achieving the standard required pursuant to subsection 8, a marijuana testing facility successfully participates in the proficiency testing program only if the marijuana testing facility:

     (a) Obtains single-blind proficiency testing samples from the proficiency testing provider;

     (b) Analyzes the proficiency testing sample for all analytes listed in NAC 453D.780 to 453D.786, inclusive;

     (c) Reports the results of its analysis to the proficiency testing provider;

     (d) Analyzes a proficiency testing sample pursuant to the proficiency testing program not less frequently than once each 12 months;

     (e) Pays the costs of subscribing to the proficiency testing program; and

     (f) Authorizes the proficiency testing provider to submit to the Department the results of any test performed pursuant to this section.

     12.  The performance of a marijuana testing facility is satisfactory pursuant to subsection 4 if the results of the testing performed pursuant to this section are within the limits of the acceptance range established by the proficiency testing provider. A marijuana testing facility that fails to meet this standard may request that the Department allow the marijuana testing facility to retest a proficiency testing sample once to establish satisfactory performance. If the Department denies the request or if the marijuana testing facility fails to meet the standard on retesting, the Department may limit, suspend or revoke the license of the marijuana testing facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.776  Limited testing for research and development purposes. (NRS 453D.200)

     1.  A marijuana cultivation facility or a marijuana product manufacturing facility may conduct operations and request limited laboratory testing by a marijuana testing facility for research and development purposes.

     2.  A marijuana cultivation facility or marijuana product manufacturing facility described in subsection 1 shall:

     (a) Notify the Department of its intent to conduct research and development on a form prescribed by the Department by electronic mail before sending a sample to a marijuana testing facility;

     (b) Quarantine each batch, lot or production run in a separate quarantine area and label each batch, lot or production run with a distinctive label containing “R&D QUARANTINE” as a header and footer in 20-point white font and a red background;

     (c) Account for all marijuana subject to quarantine pursuant to paragraph (b) in its inventory control system;

     (d) Limit all research and development operations to clearly segregated and designated areas or rooms marked “R&D CULTIVATION AREA” or “R&D PRODUCTION AREA” on 8 1/2 by 11 inch signs with a red background and white lettering, posted at the entrance to the area or room and along the walls of the area or room, with a minimum of one sign for every 300 square feet of the area or room; and

     (e) Perform research and development operations in a grow room only if the plants used for such operations are designated and separated from other plants.

     3.  A marijuana cultivation facility or marijuana product manufacturing facility operating as described in subsection 1 may request limited testing protocols from a marijuana testing facility for research and development purposes.

     4.  A marijuana testing facility that performs testing for a marijuana cultivation facility or marijuana product manufacturing facility described in subsection 1 shall report the results of the testing to the marijuana establishment and to the Department by electronic mail. The marijuana testing facility shall clearly mark the test results with “R&D TESTING ONLY -- NOT FOR RESALE” on the header and footer of the report in 20-point white font and a red background.

     5.  A batch, lot or production run produced for research and development purposes pursuant to this section which fails quality assurance testing need not be destroyed.

     6.  A batch, lot or production run originally produced for research and development purposes pursuant to this section may not be sold to a retail marijuana store until the batch, lot or production run has undergone and passed all testing required by NAC 453D.450.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.780  Required quality assurance tests; submission of wet marijuana for testing. (NRS 453D.200)

     1.  Each marijuana testing facility must use the sampling protocols and the general body of required quality assurance tests for usable marijuana, as received, concentrated marijuana and marijuana products set forth in this section. Such tests may include moisture content, potency analysis, foreign matter inspection, microbial screening, pesticide and other chemical residue and metals screening and residual solvents levels. A marijuana testing facility may request additional sample material for the purposes of completing required quality assurance tests but may not use such material for the purposes of resampling or repeating quality assurance tests. A marijuana testing facility may retrieve samples from the premises of another marijuana establishment and transport the samples directly to the marijuana testing facility. A marijuana testing facility transporting samples may make multiple stops if:

     (a) Each stop is for the sole purpose of retrieving a sample from a marijuana establishment; and

     (b) All samples remain secured at all times.

     2.  The tests required pursuant to subsection 1 by a marijuana testing facility are as follows:

 

Product

Tests Required

Tolerance Limit

 

 

 

Usable marijuana and crude collected resins, as received, excluding wet marijuana

1. Moisture content

2. Potency analysis

3. Terpene analysis

4. Foreign matter inspection

5. Mycotoxin screening

6. Heavy metal screening

7. Pesticide residue analysis

8. Herbicide screening

9. Growth regulator screening

10. Total yeast and mold

11. Total Enterobacteriaceae

12. Salmonella

13. Pathogenic E. coli

14. Aspergillus fumigatus

15. Aspergillus flavus

16. Aspergillus terreus

17. Aspergillus niger

18. Total coliform

 

1. < 15%

2. N/A

3. N/A

4. None detected

5. < 20 μg/kg for the total of Aflatoxins B1, B2, G1 and G2 combined and < 20 μg/kg for Ochratoxin A

6. Arsenic: < 2 ppm

Cadmium: < 0.82 ppm

Lead: < 1.2 ppm

Mercury: < 0.4 ppm

7. See NAC 453D.786

8. See NAC 453D.786

9. See NAC 453D.786

10. < 10,000 colony forming units per gram

11. < 1,000 colony forming units per gram

12. None detected per gram

13. None detected per gram

14. None detected per gram

15. None detected per gram

16. None detected per gram

17. None detected per gram

18. < 1,000 colony forming units per gram

Wet marijuana, as received, which is destined for extraction

1. Potency analysis

2. Terpene analysis

3. Foreign matter inspection

4. Mycotoxin screening

5. Heavy metal screening

6. Pesticide residue analysis

7. Herbicide screening

8. Growth regulator screening

9. Total yeast and mold

10. Total Enterobacteriaceae

11. Salmonella

12. Pathogenic E. coli

13. Aspergillus fumigatus

14. Aspergillus flavus

15. Aspergillus terreus

16. Aspergillus niger

17. Total coliform

1. N/A

2. N/A

3. None detected

4. < 20 μg/kg for the total of Aflatoxins B1, B2, G1 and G2 combined and < 20 μg/kg for Ochratoxin A

5. Arsenic: < 2 ppm

Cadmium: < 0.82 ppm

Lead: < 1.2 ppm

Mercury: < 0.4 ppm

6. See NAC 453D.786

7. See NAC 453D.786

8. See NAC 453D.786

9. < 10,000 colony forming units per gram

10. < 1,000 colony forming units per gram

11. None detected per gram

12. None detected per gram

13. None detected per gram

14. None detected per gram

15. None detected per gram

16. None detected per gram

17. < 1,000 colony forming units per gram

Extract of marijuana (nonsolvent) like hashish, bubble hash, infused dairy butter, mixtures of extracted products or oils or fats derived from natural sources, including concentrated marijuana extracted with CO2

1. Potency analysis

2. Foreign matter inspection

3. Terpene analysis

4. Mycotoxin screening

5. Heavy metal screening

6. Pesticide residue analysis

7. Total yeast and mold

8. Total Enterobacteriaceae

9. Salmonella

10. Pathogenic E. coli

11. Aspergillus fumigatus

12. Aspergillus flavus

13. Aspergillus terreus

14. Aspergillus niger

1. N/A

2. None detected

3. N/A

4. < 20 μg/kg for the total of Aflatoxins B1, B2, G1 and G2 combined and < 20 μg/kg for Ochratoxin A

5. Arsenic: < 2 ppm

Cadmium: < 0.82 ppm

Lead: < 1.2 ppm

Mercury: < 0.4 ppm

6. See NAC 453D.786

7. < 1,000 colony forming units per gram

8. < 100 colony forming units per gram

9. None detected per gram

10. None detected per gram

11. None detected per gram

12. None detected per gram

13. None detected per gram

14. None detected per gram

Extract of marijuana (solvent-based) made with any approved solvent, including concentrated marijuana extracted by means other than with CO2

1. Potency analysis

2. Terpene analysis

3. Foreign matter inspection

4. Residual solvent test

5. Mycotoxin screening

6. Heavy metal screening

7. Pesticide residue analysis

8. Total yeast and mold

9. Total Enterobacteriaceae

10. Salmonella

11. Pathogenic E. coli

12. Aspergillus fumigatus

13. Aspergillus flavus

14. Aspergillus terreus

15. Aspergillus niger

1. N/A

2. N/A

3. None detected

4. < 500 ppm

5. < 20 μg/kg for the total of Aflatoxins B1, B2, G1 and G2 combined and < 20 μg/kg for Ochratoxin A

6. Arsenic: < 2 ppm

Cadmium: < 0.82 ppm

Lead: < 1.2 ppm

Mercury: < 0.4 ppm

7. See NAC 453D.786

8. < 1,000 colony forming units per gram

9. < 100 colony forming units per gram

10. None detected per gram

11. None detected per gram

12. None detected per gram

13. None detected per gram

14. None detected per gram

15. None detected per gram

Edible marijuana product, including a product which contains concentrated marijuana

1. Potency analysis

2. Terpene analysis

3. Foreign matter inspection

4. Total Enterobacteriaceae

5. Salmonella

6. Pathogenic E. coli

7. Total aerobic count

8. Water activity or pH

1. N/A

2. N/A

3. None detected

4. < 1,000 colony forming units per gram

5. None detected per gram

6. None detected per gram

7. < 100,000 colony forming units per gram

8. Water activity < 0.86 or pH < 4.6

Liquid marijuana product, including, without limitation, soda or tonic, including a product which contains concentrated marijuana

1. Potency analysis

2. Terpene analysis

3. Foreign matter inspection

4. Total Enterobacteriaceae

5. Salmonella

6. Pathogenic E. coli

7. Total aerobic count

8. Water activity or pH

1. N/A

2. N/A

3. None detected

4. < 1,000 colony forming units per gram

5. None detected per gram

6. None detected per gram

7. < 100,000 colony forming units per gram

8. Water activity < 0.86 or pH < 4.6

Topical marijuana product, including a product which contains concentrated marijuana

1. Potency analysis

2. Terpene analysis

1. N/A

2. N/A

 

     3.  A sample of usable marijuana must be at least 10 grams. A sample of a production run must be the lesser of 1 percent of the total product weight of the production run or 25 units of product. All samples must be homogenized before testing.

     4.  A marijuana establishment shall not submit wet marijuana to a marijuana testing facility for testing unless the wet marijuana is destined for extraction and weighed within 2 hours after harvest.

     5.  As used in this section, “as received” means the unaltered state in which a sample was collected, without any processing or conditioning, which accounts for all mass, including moisture content.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.782  Performance of potency analysis or terpene analysis. (NRS 453D.200)

     1.  When performing potency analysis or terpene analysis pursuant to NAC 453D.780, a marijuana testing facility shall test for and quantify the presence of the following:

     (a) Cannabinoids:

          (1) THC;

          (2) Tetrahydrocannabinolic acid;

          (3) CBD;

          (4) Cannabidiolic acid; and

          (5) Cannabinol; and

     (b) Terpenoids:

          (1) Alpha-bisabolol;

          (2) Alpha-humulene;

          (3) Alpha-pinene;

          (4) Alpha-terpinolene;

          (5) Beta-caryophyllene;

          (6) Beta-myrcene;

          (7) Beta-pinene;

          (8) Caryophyllene oxide;

          (9) Limonene; and

          (10) Linalool.

     2.  A marijuana testing facility shall provide the final certificate of analysis containing the results of testing pursuant to this section to the marijuana establishment which provided the sample within 2 business days after obtaining the results.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.784  Performance of testing to verify homogeneity of potency of edible marijuana products. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 2, a marijuana testing facility shall perform testing to verify the homogeneity of the potency of an edible marijuana product by testing multiple samples from a single production run.

     2.  A marijuana testing facility that tests an edible marijuana product which has previously had the homogeneity of the potency of the edible marijuana product verified by a marijuana testing facility and which has not undergone a change in recipe may verify the homogeneity of the edible marijuana product by testing one or more single units or servings from a production run of the edible marijuana product.

     3.  The marijuana testing facility will verify the homogeneity of the potency of the edible marijuana product only if:

     (a) The concentration of THC and weight of each sample is within 15 percent above or below the intended concentration of THC and weight; and

     (b) No combination of samples which comprise 10 percent or less of the marijuana product contain 20 percent or more of the total THC in the marijuana product.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.786  Use of approved pesticides by marijuana establishment; performance of pesticide residue analysis by testing facility. (NRS 453D.200)

     1.  A marijuana establishment shall only use a pesticide in the cultivation or production of marijuana or marijuana products if the pesticide appears on the list of pesticides published by the State Department of Agriculture pursuant to NRS 586.550.

     2.  When performing pesticide residue analysis pursuant to NAC 453D.780, a marijuana testing facility shall analyze for the pesticides which occur on the list of pesticides published by the State Department of Agriculture pursuant to NRS 586.550 at the detection levels specified by the State Department of Agriculture and for any other substances required by the Department of Taxation. If:

     (a) A pesticide which occurs on the list of pesticides published by the State Department of Agriculture pursuant to NRS 586.550 is detected at a level which exceeds the level specified by the State Department of Agriculture; or

     (b) A pesticide which does not occur on the list of pesticides published by the State Department of Agriculture pursuant to NRS 586.550 is detected in any amount which is positively verified,

Ê the pesticide residue analysis is failed.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.788  Testing: Selection of representative samples and random samples; segregation period for entire lot; duties of testing facility; disposal of lot if sample fails test; release of lot if sample passes test; filing of electronic copy of certificate of analysis for tests performed by testing facility; grounds for disciplinary action for failure to comply. (NRS 453D.200)

     1.  Immediately before packaging:

     (a) Usable marijuana for sale to a retail marijuana store, marijuana product manufacturing facility or another marijuana cultivation facility, a marijuana cultivation facility shall segregate all harvested marijuana into homogenized lots of flower and trim, respectively, and allow a marijuana testing facility to select a representative sample for testing from each lot the marijuana cultivation facility has segregated. The marijuana testing facility which performs the test must collect the samples. If the marijuana cultivation facility has segregated the lot of harvested marijuana into packages or container sizes smaller than the entire lot, the marijuana testing facility must sample and test each package containing harvested marijuana from the lot.

     (b) Concentrated marijuana or marijuana products, a marijuana product manufacturing facility shall allow a marijuana testing facility to select a random sample from each lot or production run for testing by the marijuana testing facility. The marijuana testing facility performing the testing must collect the samples.

     (c) The marijuana testing facility selecting a sample shall, using tamper-resistant products, record the batch, lot or production run number and the weight or quantity of the sample and seal the sample into a container.

     2.  A marijuana testing facility that receives a sample pursuant to this section shall test the sample as provided in NAC 453D.780.

     3.  From the time that a lot or production run has been homogenized for sample testing and eventual packaging and sale to a retail marijuana store, marijuana product manufacturing facility or, if applicable, another marijuana cultivation facility until the marijuana testing facility provides the certificate of analysis from its tests and analysis, the marijuana establishment which provided the sample shall segregate and withhold from use the entire lot or production run, except the samples that have been removed by the marijuana testing facility for testing. During this period of segregation, the marijuana establishment which provided the sample shall maintain the lot or production run in a secure, cool and dry location so as to prevent the marijuana from becoming contaminated or losing its efficacy. Under no circumstances shall the marijuana establishment which provided the sample sell the marijuana or marijuana products, as applicable, to a retail marijuana store, marijuana product manufacturing facility or, if applicable, another marijuana cultivation facility before the time that the marijuana testing facility has completed its testing and analysis and provided the certificate of analysis to the marijuana establishment which provided the sample.

     4.  Except as otherwise provided in subsection 5, a marijuana testing facility shall immediately return or dispose of any sample received pursuant to this section upon the completion of any testing, use or research. If a marijuana testing facility disposes of a sample received pursuant to this section, the marijuana testing facility shall document the disposal of the sample using its inventory control system pursuant to NAC 453D.426 and 453D.430.

     5.  A marijuana testing facility shall keep any sample which fails testing or which is collected by the State Department of Agriculture for confirmation testing for 30 days after failure or collection. A sample which is kept pursuant to this subsection must be stored in a manner approved by the Department of Taxation. A marijuana testing facility shall dispose of a sample kept pursuant to this subsection after 30 days have elapsed after failure or collection.

     6.  Except as otherwise provided in NAC 453D.790, if a sample provided to a marijuana testing facility pursuant to this section does not pass the testing required by NAC 453D.780, the marijuana establishment which provided the sample shall dispose of the entire lot or production run from which the sample was taken and document the disposal of the sample using its inventory control system pursuant to NAC 453D.426 and 453D.430.

     7.  If a sample provided to a marijuana testing facility pursuant to this section passes the testing required by NAC 453D.780, the marijuana testing facility shall release the entire lot or production run for immediate manufacturing, packaging and labeling for sale to a retail marijuana store, a marijuana product manufacturing facility or, if applicable, another marijuana cultivation facility.

     8.  A marijuana establishment shall not use more than one marijuana testing facility to test the same lot or production run of marijuana without the approval of the Department.

     9.  A marijuana testing facility shall file with the Department, in a manner prescribed by the Department, an electronic copy of the certificate of analysis for all tests performed by the marijuana testing facility, regardless of the outcome of the test, including all testing required by NAC 453D.780 to 453D.786, inclusive, at the same time that it transmits those results to the facility which provided the sample. The marijuana testing facility shall transmit an electronic copy of the certificate of analysis for each test to the Department by electronic mail at:

     (a) If the test was passed, mmelabpass@tax.state.nv.us; or

     (b) If the test was failed, mmelabfail@tax.state.nv.us.

     10.  An electronic mail message transmitted pursuant to subsection 9 must be formatted as follows:

     (a) The subject line of the electronic mail message must be the name of the marijuana establishment from which the sample was collected.

     (b) The name of the electronic file containing the certificate of analysis must be:

          (1) Except as otherwise provided in subparagraph (2) or (3), the four digit identifier assigned by the Department to the marijuana testing facility, followed by an underscore, followed by the four digit identifier assigned by the Department to the marijuana establishment from which the sample was collected, followed by an underscore, followed by:

               (I) If the sample was from a production run, the production run number; or

               (II) If the sample was not from a production run, the batch number, followed by an underscore, followed by the lot number.

          (2) If the certificate of analysis is from a retesting of a previously failed sample, an underscore followed by the word “Retest” must be appended to the end of the name of the electronic file.

          (3) If the certificate of analysis has been amended, an underscore followed by the word “Amended” must be appended to the end of the name of the electronic file.

     (c) If the certificate of analysis has been amended, the electronic copy of the certificate of analysis must state “Amended” in bold red font at the center of the top of the first page of the report and must contain a statement of the reason for the amendment.

     11.  The Department will take immediate disciplinary action against any marijuana establishment which fails to comply with the provisions of this section or falsifies records related to this section, including, without limitation, revoking the license of the marijuana establishment.

     12.  A marijuana testing facility may subcontract its testing of marijuana or marijuana products only to another marijuana testing facility.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.790  Testing: Authorized use of marijuana upon failure of microbial screening; automatic failure to pass; request for retest; retest for pesticide residue must be performed by State Department of Agriculture; effect of passing or failing retest. (NRS 453D.200)

     1.  Upon approval of the Department, a lot of marijuana that fails a microbial screening test may be used to make an extract. After processing, the extract must pass all required quality assurance tests.

     2.  If a sample from a marijuana product manufacturing facility fails a quality assurance test, the entire production run from which the sample was taken automatically fails the quality assurance test.

     3.  At the request of a marijuana cultivation facility or a marijuana product manufacturing facility, the Department may, on a case-by-case basis, authorize a retest to validate the results of a failed test. The marijuana cultivation facility or marijuana product manufacturing facility is responsible for all costs involved in a retest performed pursuant to this section.

     4.  A marijuana cultivation facility or a marijuana product manufacturing facility may not request a retest pursuant to this section unless, at the time samples are initially taken for testing, two samples are collected at the same time by a marijuana testing facility using tamper-resistant bags. One of the samples must be taken by the marijuana testing facility for testing and the facility must place the other sample in a secure quarantine storage area at the facility for further retesting by a secondary marijuana testing facility or the State Department of Agriculture.

     5.  A marijuana cultivation facility or a marijuana product manufacturing facility shall submit a request for retesting to the Department in writing and on a form designated by the Department.

     6.  If the Department grants a request for retesting, the Department will select the marijuana testing facility that will perform the retest.

     7.  Except as otherwise provided in this subsection, a marijuana cultivation facility or a marijuana product manufacturing facility may submit a request for retesting of not more than 50 lots each calendar year. For any subsequent failure of a quality assurance test in a calendar year, the facility shall destroy the lot or the entire production run, as applicable. A lot which only fails a quality assurance test for moisture content must not be counted for the purpose of this subsection.

     8.  A failed quality assurance test for pesticide residue must be retested by the State Department of Agriculture.

     9.  If a sample passes the same quality assurance test upon retesting, the marijuana cultivation facility or marijuana product manufacturing facility need not destroy the lot or production run and may sell the lot or production run to a marijuana cultivation facility, retail marijuana store or marijuana product manufacturing facility, as applicable.

     10.  If a sample fails the same quality assurance test upon retesting, the Department denies a request for retesting or a marijuana cultivation facility or a marijuana product manufacturing facility does not request retesting after a sample fails a quality assurance test, the facility shall destroy the entire lot or production run from which the sample was taken.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.794  Audit or certification of testing facility by State Department of Agriculture. (NRS 453D.200)

     1.  At the request of the Department of Taxation, a marijuana testing facility may be audited or certified by the State Department of Agriculture.

     2.  If the State Department of Agriculture audits or certifies marijuana testing facilities, the State Department of Agriculture will perform such technical inspections of the premises and operations of a marijuana testing facility as the State Department of Agriculture determines is appropriate.

     3.  If the State Department of Agriculture audits or certifies marijuana testing facilities, each marijuana testing facility shall comply with the requirements established by the State Department of Agriculture.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.796  Collection and testing of random samples from marijuana establishments for comparison with results reported by testing facilities. (NRS 453D.200)

     1.  At the request of the Department of Taxation, the State Department of Agriculture may collect and test random samples from marijuana establishments and compare the results of its testing to the results reported by marijuana testing facilities.

     2.  A marijuana establishment shall provide samples to the State Department of Agriculture upon request if the State Department of Agriculture conducts testing pursuant to subsection 1.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.798  Random quality assurance compliance checks; costs for screening or testing. (NRS 453D.200)

     1.  Upon the request of the Department, a marijuana cultivation facility and a marijuana product manufacturing facility must provide a marijuana testing facility designated by the Department with a sample of marijuana or a marijuana product in an amount determined by the marijuana testing facility to be sufficient for random quality assurance compliance checks in a secure manner such that the marijuana testing facility can confirm that it has received and is testing the correct sample.

     2.  The marijuana testing facility that receives a sample pursuant to subsection 1 shall, as directed by the Department:

     (a) Screen the sample for pesticides, chemical residues, herbicides, growth regulators and unsafe levels of metals;

     (b) Perform any other quality assurance test deemed necessary by the Department; and

     (c) Report its results to the Department.

     3.  The marijuana cultivation facility or marijuana product manufacturing facility is responsible for all costs involved in screening or testing performed pursuant to this section.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

PACKAGING AND LABELING OF MARIJUANA PRODUCTS

     NAC 453D.800  Requirements for single packages. (NRS 453D.200)

     1.  Unless preparing bulk packages only for delivery to another marijuana establishment and not for sale to a consumer, a marijuana establishment that packages marijuana or marijuana products must individually package, label and seal the marijuana or marijuana products in a single package for sale. A retail marijuana store shall only sell marijuana or marijuana products in a single package which must not contain:

     (a) More than 1 ounce of usable marijuana or one-eighth of an ounce of concentrated marijuana.

     (b) For a marijuana product sold as a capsule, more than 100 milligrams of THC per capsule or more than 800 milligrams of THC per package.

     (c) For a marijuana product sold as a tincture, more than 800 milligrams of THC.

     (d) For a marijuana product sold as an edible marijuana product, more than 100 milligrams of THC.

     (e) For a marijuana product sold as a topical product, a concentration of more than 6 percent THC or more than 800 milligrams of THC per package.

     (f) For a marijuana product sold as a suppository or transdermal patch, more than 100 milligrams of THC per suppository or transdermal patch or more than 800 milligrams of THC per package.

     (g) For any other marijuana product, more than 800 milligrams of THC.

     2.  An edible marijuana product must be packaged in a manner which indicates the number of servings of THC in the product, measured in servings of a maximum of 10 milligrams of THC per serving, and include a statement that the edible marijuana product contains marijuana and its potency was tested with an allowable variance of plus or minus 15 percent.

     3.  For marijuana or marijuana products that are intended to be sold to a consumer, the text used on all labeling must be printed in at least 8-point font and may not be in italics.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.805  Requirements for edible marijuana products, products in solid or liquid form, usable marijuana and concentrated marijuana or marijuana products. (NRS 453D.200)

     1.  Any edible product containing marijuana must:

     (a) Be clearly and unambiguously packaged as marijuana with the words “THIS IS A MARIJUANA PRODUCT” in bold type that clearly identifies that the product contains marijuana;

     (b) Be packaged in a manner which is not modeled after a brand of products primarily consumed by or marketed to children;

     (c) Be presented in packaging which does not contain an image of a cartoon character, mascot, action figure, balloon or toy, except that such an item may appear in the logo of the marijuana product manufacturing facility which produced the product; and

     (d) Not be packaged or marketed as candy.

     2.  When sold at a retail marijuana store, any edible product containing marijuana must be packaged in opaque, child-resistant packaging in accordance with 16 C.F.R. Part 1700 and the standards specified in subsection 3 or 4. The child-resistant packaging must maintain its effectiveness for multiple openings before leaving the retail marijuana store with the consumer.

     3.  Except as otherwise provided in subsection 4, marijuana products in solid or liquid form must be packaged in:

     (a) Plastic which is 4 mils or more in thickness; or

     (b) If the product is in liquid form, a food-grade bottle.

     4.  Marijuana products in liquid form and concentrated marijuana must be packaged using a resealable cap in a container that:

     (a) Clearly demarks each serving of marijuana in a way that enables a reasonable person to intuitively determine how much of the product constitutes a single serving of THC; and

     (b) Includes a device that allows a reasonable person to intuitively measure and serve a single serving of THC.

Ê The portion of such a container that demarks each serving of marijuana need not be opaque.

     5.  Any container or packaging containing usable marijuana, concentrated marijuana or marijuana products must protect the contents from contamination and must be of a food grade material.

     6.  An edible marijuana product must be sealed in a container which is not transparent and sold in packaging which is opaque.

     7.  Each single serving in a multiple-serving edible marijuana product must be physically demarked in a way that enables a reasonable person to intuitively determine how much of the edible marijuana product constitutes a single serving. Each demarked serving must be easily separable in a manner that allows an average person who is 21 years of age or over to physically separate, with minimal effort, an individual serving of the edible marijuana product.

     8.  If an edible marijuana product is of a kind that is impracticable to clearly demark each serving of marijuana or to make each serving easily separable, the edible marijuana product must:

     (a) Contain not more than 10 milligrams of THC per unit of sale; or

     (b) Be sold in a package that contains more than one individually wrapped single-serving edible marijuana product.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.808  Stamp or mold required for edible marijuana products; exception. (NRS 453D.200)

     1.  Except as otherwise provided in subsection 3, on or before January 1, 2019, each single-serving edible marijuana product and each individual serving containing not more than 10 milligrams of THC of a multiple-serving edible marijuana product must be stamped or molded with a symbol developed by the Department to indicate that the product contains marijuana.

     2.  An edible marijuana product that is impractical to stamp or mold with a symbol, including, without limitation, bulk goods or powders, must be packaged in a child-resistant container in individual servings containing not more than 10 milligrams of THC.

     3.  An edible marijuana product in liquid form which is packaged as required by NAC 453D.805 need not be stamped or molded as described in this section.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.812  Requirements for labeling products “organic.” (NRS 453D.200)  A marijuana cultivation facility or marijuana product manufacturing facility shall not label usable marijuana, concentrated marijuana or marijuana products as “organic” unless the marijuana plants and all ingredients used are produced, processed and certified in a manner that is consistent with the national organic standards established by the United States Department of Agriculture in accordance with the Organic Foods Production Act of 1990, 7 U.S.C. §§ 6501 et seq.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.816  Marijuana cultivation facility: Required labeling before sale of marijuana to retail marijuana store. (NRS 453D.200)

     1.  A marijuana cultivation facility shall label all marijuana before it sells the marijuana to a retail marijuana store and shall securely affix to the package a label that includes, without limitation, in legible English:

     (a) The name of the marijuana establishment and its license number;

     (b) If the marijuana establishment is operated by a dual licensee, the number of the medical marijuana establishment registration certificate of the cultivation facility operated by the dual licensee;

     (c) The batch number;

     (d) The lot number;

     (e) The date of final harvest;

     (f) The date of final testing;

     (g) The date on which the product was packaged;

     (h) The cannabinoid profile and potency levels and terpenoid profile of the top three terpenes as determined by the marijuana testing facility, which may include the potential total THC but must not include any other calculated level of THC;

     (i) If the product is perishable, the expiration date;

     (j) The quantity of marijuana being sold; and

     (k) A warning that states: “THIS IS A MARIJUANA PRODUCT.”

     2.  The label required by subsection 1 for a container or package containing usable marijuana sold by a marijuana cultivation facility must be in substantially the following form:

 

SG’S NURSERY

License Number: 123 456 789 001 0001

Registration Certificate Number: 543 210789 000 0100

(if applicable)

 

THIS IS A MARIJUANA PRODUCT

 

Batch Number:

1234

Lot Number:

1234

 

Final Harvest Date:

01/01/2017

 

Final Testing Date: 01/15/2017

Packaged on: 01/17/2017

Best if used by: 03/17/2017

 

16.7% THC   1.5% CBD   0.3% CBN

Myrcene 5.6 mg/g   Limonene 5.1 mg/g   Valencene 3.5 mg/g

 

Net Weight: 2 lbs.

 

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.820  Marijuana product manufacturing facility: Required labeling of edible marijuana products before sale to retail store. (NRS 453D.200)

     1.  A marijuana product manufacturing facility shall label all edible marijuana products before it sells the edible marijuana products to a retail marijuana store and shall include on the packaging or securely affix to the package a label that includes, without limitation, in legible English and in a manner which must not mislead consumers:

     (a) The name of the marijuana establishment and its license number;

     (b) If the marijuana establishment is operated by a dual licensee, the number of the medical marijuana establishment registration certificate of the facility for the production of edible marijuana products or marijuana-infused products, as defined in NRS 453A.105, operated by the dual licensee;

     (c) The production run number;

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

     (e) The date of production;

     (f) The date of final testing;

     (g) The date on which the product was packaged;

     (h) The cannabinoid profile and potency levels and terpenoid profile of the top three terpenes as determined by the marijuana testing facility, which may include the potential total THC but must not include any other calculated level of THC;

     (i) If the product is perishable, the expiration date;

     (j) The total amount of THC in the edible marijuana product, measured in milligrams;

     (k) The total amount of THC in each serving of the edible marijuana product and a notice that the actual amount of THC may be within 15 percent of the stated amount;

     (l) A list of all ingredients and all major food allergens as identified in 21 U.S.C. § 343;

     (m) The net weight of the product;

     (n) If concentrated marijuana was added to the product or if the product consists solely of concentrated marijuana, a disclosure of the type of extraction process used and any solvent, gas or other chemical used in the extraction process or any other compound added to the concentrated marijuana; and

     (o) A warning that states: “THIS IS A MARIJUANA PRODUCT.”

     2.  The label required by subsection 1 for a container or package containing concentrated marijuana or edible marijuana products sold by a marijuana product manufacturing facility must be in substantially the following form:

 

DC’s Marijuana Products

License Number: 123 456 789 001 0001

Registration Certificate Number: 543 210789 000 0010

(if applicable)

 

Production Run Number: 1234

 

THIS IS A MARIJUANA PRODUCT

 

Keep out of reach of children

 

Produced on: 01/01/2017

Final Testing Date: 01/15/2017

Packaged on: 01/17/2017

Best if used by: 03/17/2017

Cannabinoid profile:

Terpenoid profile:

 

Total THC content:

THC content per serving +/- 15%:

This product contains concentrated marijuana produced with butane.

 

Ingredients: Wheat, Sugar, Milk Chocolate

Allergy Warning: Peanuts, Tree Nuts, Eggs, Wheat, Soy

Net Weight: 100mg

 

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.824  Retail marijuana store: Required labeling of usable marijuana. (NRS 453D.200)

     1.  A retail marijuana store must affix to each container or package containing usable marijuana sold at retail, if not already included on the container or package, a label which must include, without limitation:

     (a) The business or trade name and the license number of the marijuana cultivation facility that cultivated and sold the usable marijuana.

     (b) If the marijuana cultivation facility is operated by a dual licensee, the number of the medical marijuana establishment registration certificate of the cultivation facility operated by the dual licensee.

     (c) The batch number.

     (d) The lot number.

     (e) The date and quantity sold, including the net weight measured in ounces and grams or by volume, as appropriate.

     (f) The name and address of the retail marijuana store.

     (g) The cannabinoid profile and potency levels and terpenoid profile as determined by the marijuana testing facility, which may include the potential total THC but must not include any other calculated level of THC.

     (h) A warning that states: “This product may have intoxicating effects and may be habit forming.”

     (i) The statement: “This product may be unlawful outside of the State of Nevada.”

     (j) The date on which the marijuana was harvested.

     (k) A warning that states: “THIS IS A MARIJUANA PRODUCT.”

     2.  The label required by subsection 1 for a container or package containing usable marijuana sold at retail must be in substantially the following form:

 

JP’s Plant Emporium

License Number: 123 456 789 001 0001

Registration Certificate Number: 543 210789 000 0010

(if applicable)

 

THIS IS A MARIJUANA PRODUCT

 

Batch #: 1234

Lot #: 1234

Final harvest: 01/01/2017

 

by

We Care Retail Marijuana Store

123 Main Street, Carson City, NV 89701

 

WARNING:

This product may have intoxicating effects and may be habit forming.

 

16.7% THC   1.5% CBD   0.3% CBN

Myrcene 5.6 mg/g   Limonene 5.1 mg/g   Valencene 3.5 mg/g

 

Net Weight: .25 ounces (7 grams)

 

This product may be unlawful outside the State of Nevada.

 

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.828  Retail marijuana store: Required labeling of edible marijuana products. (NRS 453D.200)

     1.  A retail marijuana store must affix to each container or package containing edible marijuana products sold at retail and affix to or include with each container or package containing concentrated marijuana or marijuana products sold at retail a label which must not mislead consumers and must include, without limitation:

     (a) The business or trade name and the license number of the marijuana product manufacturing facility that extracted and sold the concentrated marijuana or manufactured and sold the product.

     (b) If the marijuana product manufacturing facility is operated by a dual licensee, the number of the medical marijuana establishment registration certificate of the facility for the production of edible marijuana products or marijuana-infused products operated by the dual licensee.

     (c) The production run number that accounts for all lot numbers of all marijuana used to extract the concentrated marijuana or create the product, as recorded in the inventory control system of the marijuana product manufacturing facility that sold the concentrated marijuana or product.

     (d) The name and address of the retail marijuana store.

     (e) The date on which the concentrated marijuana was extracted or the product was manufactured.

     (f) The date on which the concentrated marijuana or product was packaged.

     (g) If the product is perishable, a suggested use-by date.

     (h) The cannabinoid profile and potency levels and terpenoid profile of the product, as determined by the marijuana testing facility that tested the product, which, except as otherwise provided in paragraph (i), may include the potential total THC but must not include any other calculated level of THC.

     (i) If the product is an edible marijuana product, the measurements of THC included on the label must include only the delta-9-tetrahydrocannabinol in the edible marijuana product.

     (j) The total amount of THC in each serving of the product and a notice that the actual amount of THC may be within 15 percent of the stated amount.

     (k) A list of all ingredients and all major food allergens as identified in 21 U.S.C. § 343.

     (l) The concentration of THC in the product, if applicable.

     (m) The net weight of the marijuana or marijuana product.

     (n) A warning that states: “Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by 2 or more hours.”

     (o) If concentrated marijuana or a marijuana extract was added to the product, a disclosure of the type of extraction process and any solvent, gas or other chemical used in the extraction process, or any other compound added to the concentrated marijuana or the marijuana extract.

     (p) A warning that states: “This product may have intoxicating effects and may be habit forming.”

     (q) A warning that states: “Keep out of reach of children.” 

     (r) A statement that: “This product may be unlawful outside of the State of Nevada.”

     (s) A warning that states: “THIS IS A MARIJUANA PRODUCT.”

     2.  The label required by subsection 1 for a container or package containing concentrated marijuana or marijuana products sold at retail must be in substantially the following form:

 

We Care Retail Marijuana Store

123 Main Street, Carson City, NV 89701

 

THIS IS A MARIJUANA PRODUCT

 

Date Sold: 3/27/2017

 

Cookie

Net Weight: 2 ounces (56 grams)

Produced on: 1/1/2017

Final Testing Date: 1/15/2017

Packaged on: 1/17/2017

Best if used by: 6/3/2017

Cannabinoid profile:

Terpenoid profile:

THC content per serving +/- 15%:

 

CAUTION: When eaten or swallowed the intoxicating effects of this product can be delayed by 2 or more hours.

Keep out of reach of children

 

This product may be unlawful outside the State of Nevada.

 

Manufactured at: KC’s Kitchen

License Number: 321654987101 0401

Registration Certificate Number: 543 210789 000 0010

(if applicable)

 

Production Run #5463

 

INGREDIENTS: Flour, Butter, Canola Oil, Sugar, Chocolate, Marijuana, Strawberries

 

CONTAINS ALLERGENS: Milk, Wheat

 

Contains marijuana extract processed with butane.

Contains concentrated marijuana produced with CO2.

 

WARNING:This product may have intoxicating effects and may be habit forming.

 

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.832  Retail marijuana store: Required disclosures and warnings. (NRS 453D.200)

     1.  A retail marijuana store must provide with all usable marijuana sold at retail accompanying material that discloses any pesticides applied to the marijuana plants and growing medium during production and processing.

     2.  A retail marijuana store must provide with all usable marijuana and marijuana products sold at retail a written notification which contains the following warnings:

     (a) That marijuana and marijuana products must be kept out of the reach of children.

     (b) That marijuana and marijuana products can cause severe illness in children.

     (c) That allowing children to ingest marijuana or marijuana products or storing marijuana or marijuana 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.

     (d) “THE INTOXICATING EFFECTS OF MARIJUANA MAY BE DELAYED BY 2 HOURS OR MORE AND USERS OF MARIJUANA PRODUCTS SHOULD INITIALLY INGEST A SMALL AMOUNT OF THE PRODUCT CONTAINING NO MORE THAN 10 MILLIGRAMS OF THC, THEN WAIT AT LEAST 2 HOURS BEFORE INGESTING ANY ADDITIONAL AMOUNT OF THE PRODUCT.”

     (e) “This product may have intoxicating effects and may be habit forming. Smoking is hazardous to your health.”

     (f) “Ingesting marijuana or marijuana products with alcohol or other drugs, including prescription medication, may result in unpredictable levels of impairment and a person should consult with a physician before doing so.”

     (g) “There may be health risks associated with consumption of this product.”

     (h) “Pregnant women should consult with a physician before ingesting marijuana or marijuana products.”

     (i) “Marijuana or marijuana products can impair concentration, coordination and judgment. Do not operate a vehicle or machinery under the influence of marijuana or marijuana products.”

     (j) “Ingestion of any amount of marijuana or marijuana products before driving may result in criminal prosecution for driving under the influence.”

     3.  The text used on all accompanying material and warnings must be printed in at least 12-point font and may not be in italics.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.836  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Required labeling. (NRS 453D.200)  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall:

     1.  Use for labeling all marijuana and marijuana products the standard label described in NAC 453D.800 and 453D.816 to 453D.828, inclusive;

     2.  Exercise strict control over labeling materials issued for use in labeling operations for marijuana and marijuana products;

     3.  Carefully examine labeling materials issued for a batch for identity and conformity to the labeling specified in the applicable production or control records; and

     4.  Have and follow written procedures describing in sufficient detail the control procedures employed for the issuance of labeling.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.838  Marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store: Examination of products during finishing operations; collection of representative sample of units; recording of results. (NRS 453D.200)  Each marijuana cultivation facility, marijuana product manufacturing facility and retail marijuana store shall:

     1.  Examine packaged and labeled products during finishing operations to provide assurance that the containers and packages have the correct labels;

     2.  Collect a representative sample of units at the completion of finishing operations and ensure that the samples are visually examined for correct labeling; and

     3.  Record the results of the examinations performed pursuant to subsections 1 and 2 in the applicable production or control records.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

MARIJUANA DISTRIBUTORS

     NAC 453D.860  Requirements for transportation of marijuana and marijuana products. (NRS 453D.200)

     1.  A marijuana distributor may transport marijuana and marijuana products between a marijuana establishment and another marijuana establishment or between the buildings of a marijuana establishment.

     2.  A marijuana establishment shall not transport marijuana or marijuana products to a retail marijuana store unless the marijuana establishment holds a license for a marijuana distributor.

     3.  A marijuana distributor shall not purchase or sell marijuana or marijuana products unless the marijuana distributor holds a license for a type of marijuana establishment authorized by law to purchase or sell marijuana or marijuana products.

     4.  A marijuana distributor may enter into an agreement or contract with a marijuana establishment for the transport of marijuana or marijuana products. Such an agreement or contract may include, without limitation, provisions relating to insurance coverage, climate control and theft by a third party or an employee.

     5.  A marijuana distributor, and each marijuana establishment agent employed by the marijuana distributor who is involved in the transportation, is responsible for marijuana and marijuana products once the marijuana distributor takes control of the marijuana or marijuana products and leaves the premises of a marijuana establishment.

     6.  A marijuana distributor shall not allow a marijuana establishment agent to transport marijuana or marijuana products unless:

     (a) The marijuana establishment agent carries a copy, for the duration of the transportation, of the transportation manifest generated using the seed-to-sale tracking system pursuant to NAC 453D.864 for the transportation;

     (b) Each marijuana establishment agent involved in the transportation has, in his or her immediate possession, his or her marijuana establishment agent registration card or verification of temporary authorization;

     (c) The marijuana or marijuana products are stored in a sanitary and secure manner in a lockbox or locked cargo area within the vehicle being used for delivery and not visible from outside the vehicle;

     (d) The vehicle being used for delivery has no advertising, signage or other markings relating to marijuana; and

     (e) The marijuana establishment agent transporting marijuana or marijuana products for the marijuana distributor on behalf of a marijuana establishment has a means of communicating with the marijuana establishment.

     7.  Each marijuana establishment agent transporting marijuana or marijuana products for a marijuana distributor must:

     (a) Report to a person designated by the marijuana distributor to receive such reports any motor vehicle crash that occurs during the transportation within 2 hours after the crash occurs;

     (b) Report to the Department any unauthorized stop that lasts longer than 2 hours; and

     (c) Report to a person designated by the marijuana distributor to receive such reports any loss or theft of marijuana or marijuana products that occurs during the transportation immediately after the marijuana establishment agent becomes aware of the loss or theft. A marijuana distributor that receives a report of loss or theft pursuant to this paragraph must immediately report the loss or theft to the appropriate law enforcement agency and to the Department.

     8.  Each marijuana distributor shall maintain a log of all reports received pursuant to subsection 7 for review by the Department upon request.

     9.  Any marijuana or marijuana product which is damaged or refused by the receiving marijuana establishment must be transported back to the originating marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.864  Duties of distributor delivering marijuana or marijuana products; transportation manifest; duties of originating marijuana establishment and receiving marijuana establishment; maintenance of records. (NRS 453D.200)

     1.  Before transporting marijuana or marijuana products pursuant to NAC 453D.860, a marijuana distributor shall:

     (a) Ensure that all marijuana and marijuana products are secured at all times during delivery; and

     (b) Maintain a physical or electronic copy of a transportation manifest generated using the seed-to-sale tracking system that contains all the information required by this section in a format approved by the Department.

     2.  A marijuana distributor may deliver marijuana or marijuana products to more than one marijuana establishment in a single trip if the transportation manifest correctly reflects the specific inventory destined for each specific marijuana establishment and location.

     3.  Before transferring marijuana or marijuana products to a marijuana distributor, the originating marijuana establishment shall enter the information required to indicate that the marijuana or marijuana products will be transported to the receiving marijuana establishment into the seed-to-sale tracking system. A marijuana establishment shall not list a marijuana distributor as the receiving marijuana establishment.

     4.  A marijuana distributor shall not alter the information which has been entered into the seed-to-sale tracking system pursuant to subsection 3.

     5.  If a marijuana distributor is not able to deliver marijuana or marijuana products directly to the receiving marijuana establishment due to normal business operations, the marijuana distributor shall notify the Department and the originating marijuana establishment of the premises where the marijuana or marijuana products will be stored and the anticipated date and time of delivery.

     6.  A marijuana distributor shall provide a copy of the transportation manifest generated using the seed-to-sale tracking system to the marijuana establishment receiving marijuana or marijuana products. The copy of a transportation manifest provided to a marijuana establishment pursuant to this subsection must be generated separately for each marijuana establishment and must not contain the information of any other marijuana establishment.

     7.  The transportation manifest generated using the seed-to-sale tracking system must include, without limitation:

     (a) The date and approximate time of the departure;

     (b) The name, location, address and license number of the originating marijuana establishment;

     (c) The name, location, address and license number of the receiving marijuana establishment;

     (d) The name, location, address and license number of the marijuana distributor;

     (e) The name and quantity, by weight and unit, of each product to be delivered to each marijuana establishment;

     (f) The estimated date and time of arrival;

     (g) The make, model, license plate number and number of the identification card issued pursuant to NAC 453D.874 of the vehicle used for delivery; and

     (h) The name, number of the marijuana establishment agent registration card and signature of each marijuana establishment agent performing or accompanying the transportation of the marijuana or marijuana products.

     8.  In addition to the requirements of this section, the originating and the receiving marijuana establishment shall each ensure that each delivery satisfies the requirements of NAC 453D.426 and 453D.430.

     9.  Before marijuana or marijuana products leave the originating marijuana establishment, the originating marijuana establishment shall adjust its records to reflect the removal of the marijuana or marijuana products in a manner that reflects the information included in the transportation manifest generated using the seed-to-sale tracking system and that can be easily reconciled, by the name and quantity of the marijuana or marijuana products, with the transportation manifest.

     10.  After receipt of marijuana or marijuana products, the receiving marijuana establishment shall:

     (a) Confirm that the marijuana or marijuana products are as described in the transportation manifest;

     (b) Adjust its records to reflect the receipt of the marijuana or marijuana products in a manner that reflects the information included in the transportation manifest generated using the seed-to-sale tracking system and that can be easily reconciled, by the name and quantity of the marijuana or marijuana products, with the transportation manifest; and

     (c) Separately document, in the seed-to-sale tracking system and any other relevant business records, any differences between the quantity of marijuana or marijuana products specified in the transportation manifest and the quantities actually received.

     11.  After transferring marijuana or marijuana products to the receiving marijuana establishment, the marijuana distributor shall enter the end time of the trip in the trip plan and ensure that the trip plan, including any changes to the trip plan made pursuant to subsection 5, is accurate.

     12.  Each retail marijuana store and marijuana distributor shall maintain all documents required by this section and provide a copy of any such document to the Department for review upon request.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.868  Storage area for marijuana and marijuana products; verification of inventory; inspection by Department. (NRS 453D.200)

     1.  Each marijuana distributor shall maintain a storage area for marijuana and marijuana products which includes at least one area which is temperature controlled. The area which is temperature controlled shall be maintained in a commercial food grade unit which is kept at a temperature of less than 41°F (5°C) while storing potentially hazardous marijuana products.

     2.  The storage area for marijuana and marijuana products maintained pursuant to subsection 1 must be a separate, enclosed, locked facility. Products unrelated to the business of the marijuana distributor, including, without limitation, products containing alcohol, must not be stored with marijuana or marijuana products. Within the storage area, marijuana or marijuana products may only be stored in a secure, locked device, cabinet, room or motor vehicle within the storage area which is protected by a lock or locking mechanism that meets at least the security rating established by Underwriters Laboratories for key locks.

     3.  If a marijuana distributor experiences an unusual or extraordinary circumstance beyond its control as part of its normal business operations in providing transportation of marijuana or marijuana products and the marijuana distributor determines that it is necessary to use its storage area for the temporary storage of marijuana or marijuana products, the marijuana distributor shall submit to the Department a notice of temporary storage of marijuana or marijuana products.

     4.  A marijuana distributor shall not store marijuana or marijuana products for more than 3 days without written consent from the Department.

     5.  A marijuana distributor shall verify the inventory of a motor vehicle after the inventory is off-loaded into storage and before the inventory is on-loaded onto a motor vehicle from storage.

     6.  A marijuana distributor shall make its premises, including, without limitation, its storage area, available to the Department for inspection during normal business hours without notice.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.870  Amount that may be transported by distributor; transportation by marijuana establishment agent; restrictions on transportation by vehicle. (NRS 453D.200)

     1.  A marijuana distributor may transport any amount of marijuana or marijuana products that does not violate the laws or regulations of this State or the limits established by the insurer who provides coverage for the marijuana distributor.

     2.  A marijuana distributor shall not allow a marijuana establishment agent to transport marijuana or marijuana products unless the marijuana or marijuana products are:

     (a) Except as otherwise provided in subsection 3, stored in a lockbox or locked cargo area within the vehicle being used for delivery;

     (b) Not visible from outside the vehicle;

     (c) Contained in sealed packages and containers which remain unopened during delivery; and

     (d) Tagged for the purpose of inventory tracking with a unique identifying label prescribed by the Department for the duration of transport.

Ê For the purpose of this subsection, the trunk of a vehicle is not considered to be a lockbox or locked cargo area unless the trunk cannot be accessed from within the vehicle and can only be accessed using a key which is different from the key used to access and operate the vehicle.

     3.  A marijuana distributor may allow a marijuana establishment agent to transport live marijuana plants in a fully enclosed, windowless, locked trailer or in a secured area inside the body of a locked van or truck if the plants are not visible from the outside.

     4.  A person shall not be present within any vehicle while it is being used for the transportation of marijuana or marijuana products unless the person is a marijuana establishment agent for the marijuana distributor providing transportation of the marijuana or marijuana products.

     5.  If the value of the marijuana and marijuana products being transported by a marijuana distributor in a vehicle, as reported on the transportation manifest as the insured fair market wholesale value, exceeds $25,000, the marijuana distributor shall ensure not fewer than two marijuana establishment agents of the marijuana distributor accompany the vehicle.

     6.  Each marijuana establishment agent who loads or unloads a vehicle for the transportation of marijuana or marijuana products shall perform the loading or unloading within view of the video surveillance system of a marijuana establishment.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.874  Transportation between marijuana establishments owned by distributor; use of motor vehicles for transportation; adequate care for perishable marijuana products. (NRS 453D.200)

     1.  A marijuana distributor that also holds a license for a marijuana establishment of another type and that is transporting marijuana or marijuana products between its own marijuana establishments located within the same building, within contiguous buildings or between buildings located within 500 feet of each other is not required to use a vehicle to perform the transportation.

     2.  A marijuana distributor may use any motor vehicle that can legally be operated on the highways of this State and that meets the requirements of this section to transport marijuana and marijuana products.

     3.  Before using a motor vehicle to transport marijuana or marijuana products, a marijuana distributor must obtain the approval of the Department for the use of the motor vehicle. Upon approving a motor vehicle for use to transport marijuana or marijuana products, the Department will issue an identification card containing such information as the Department determines to be necessary which must be kept inside the motor vehicle at all times.

     4.  A marijuana distributor shall ensure that each motor vehicle used to transport marijuana or marijuana products:

     (a) Has no advertising, signage or other markings relating to marijuana; and

     (b) Is equipped with an audible car alarm.

     5.  A marijuana distributor shall provide adequate care for perishable marijuana products including, without limitation, refrigeration during transportation, if required. Any method for temperature control used during transportation must be approved by the Department before use. If a potentially hazardous marijuana product is being transported, the potentially hazardous marijuana product must be maintained at a temperature of less than 41°F (5°C) throughout transportation.

     6.  Each marijuana distributor shall maintain at least one motor vehicle using a method approved by the Department for temperature control during transportation.

     7.  The Department or its agent may inspect each motor vehicle used for transportation of marijuana or marijuana products by a marijuana distributor pursuant to NAC 453D.288 and 453D.292.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.876  Transportation between multiple marijuana establishments; requirements for drivers used by distributor; hours and locations of transportation; reporting of irregularities, motor vehicle crash or break-down of motor vehicle; use of seed-to-sale tracking system. (NRS 453D.200)

     1.  A marijuana distributor may transport marijuana or marijuana products between multiple marijuana establishments, but shall not simultaneously transport any other item unless the item is marijuana paraphernalia or merchandise, packaging or a promotional item directly related to the marijuana or marijuana product.

     2.  A marijuana distributor shall not transport marijuana or marijuana products unless:

     (a) During the transportation of marijuana or marijuana products, the driver of a motor vehicle for a marijuana distributor carries in the motor vehicle:

          (1) Proof of valid insurance coverage in an amount required by the laws of this State;

          (2) A copy of the license of the marijuana distributor;

          (3) The marijuana establishment agent registration card or verification of temporary authorization of the driver;

          (4) The valid driver’s license of the driver; and

          (5) The valid registration for the motor vehicle.

     (b) All drivers used by the marijuana distributor are bonded in an amount sufficient to cover any claim that could be brought against the driver or the marijuana distributor discloses to all parties that such drivers are not bonded.

     (c) The hours in which the marijuana distributor provides transportation are reasonable to allow for the delivery of marijuana and marijuana products to marijuana establishments during the operating hours of the marijuana establishments.

     (d) The transportation is conducted only within the borders of this State.

     (e) The marijuana establishment agent who transports marijuana or marijuana products only travels to and from marijuana establishments and does not make any unnecessary stops that are not disclosed in the trip plan and transportation manifest. The marijuana establishment agent may make a stop for fuel as necessary and keep a list of designated fuel stops along the route for submission to the Department upon request.

     3.  A marijuana distributor shall notify the Department using means determined by the Department if a motor vehicle being used for the transportation of marijuana or marijuana products by the marijuana distributor is stopped at a location other than a marijuana establishment or designated fuel stop, is involved in a motor vehicle crash or breaks down resulting in scheduled travel being interrupted for more than 2 hours.

     4.  A marijuana distributor shall use the seed-to-sale tracking system approved by the Department for any transportation of marijuana or marijuana products between marijuana establishments that are not co-located.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.878  Transportation by marijuana cultivation facility, marijuana product manufacturing facility, marijuana testing facility or retail marijuana store; applicability of provisions relating to distributors. (NRS 453D.200)

     1.  A marijuana cultivation facility or a marijuana product manufacturing facility may transport marijuana or marijuana products to or from a marijuana cultivation facility, a marijuana product manufacturing facility or a marijuana testing facility.

     2.  A marijuana testing facility or a retail marijuana store may transport marijuana or marijuana products to or from a marijuana testing facility for testing.

     3.  The requirements of NAC 453D.860 for a marijuana distributor apply to a marijuana establishment that transports marijuana or marijuana products pursuant to this section without using a marijuana distributor.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.880  Transportation by marijuana establishment to retail marijuana store. (NRS 453D.200)  A marijuana establishment shall not transport marijuana or marijuana products to a retail marijuana store unless the marijuana establishment:

     1.  Holds a license for a marijuana distributor;

     2.  Holds a medical marijuana establishment registration certificate and is only transporting marijuana or marijuana products for the medical use of marijuana;

     3.  Is a marijuana testing facility transporting samples for testing; or

     4.  Is a dual licensee and is only transporting marijuana or marijuana products for the medical use of marijuana to a medical marijuana dispensary or a dual licensee.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

DISCIPLINARY ACTION; PRACTICE BEFORE THE DEPARTMENT OF TAXATION

Disciplinary Action

     NAC 453D.900  Grounds for disciplinary action. (NRS 453D.200)

     1.  A violation of any of the provisions of this chapter is grounds for disciplinary action by the Department, including, without limitation, immediate revocation of a license for a marijuana establishment pursuant to NRS 453D.200.

     2.  A violation of any of the provisions of this chapter is grounds for disciplinary action by the Department, including, without limitation, immediate revocation of a marijuana establishment agent registration card.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.905  Imposition of civil penalty; revocation or suspension of license or marijuana establishment agent registration card; corrective action; categories of violations; imminent health hazard requiring immediate correction or cessation of operations. (NRS 453D.200)

     1.  The Department may:

     (a) Subject to the provisions of subsection 4, impose a civil penalty of not more than $35,000 on any person who fails to comply with or violates any provision of this chapter or NRS 453D.300;

     (b) Except as otherwise provided in paragraph (c), revoke or suspend for not less than 3 days and not more than 30 days the license of any marijuana establishment or the marijuana establishment agent registration card of any person who fails to comply with or violates the provisions of this chapter or chapter 453D of NRS; and

     (c) If corrective action approved by the Department will cure the noncompliance or violation but will not be completed within 30 days after issuance of the order, suspend for more than 30 days the license of a marijuana establishment or the marijuana establishment agent registration card of a person who fails to comply with or violates the provisions of this chapter or chapter 453D of NRS.

     2.  To determine the amount of a civil penalty assessed pursuant to this section, the Department will consider the gravity of the violation, the economic benefit or savings, if any, resulting from the violation, the size of the business of the violator, the history of compliance with this chapter and chapter 453D of NRS by the violator, action taken to remedy the violation, the effect of the penalty on the ability of the violator to continue in business and any other matter as justice may require.

     3.  The Department will determine the category of a violation of this chapter or chapter 453D of NRS as follows:

     (a) Category I violations are violations of a severity that make a person ineligible to receive a license, including, without limitation:

          (1) Conviction of an excluded felony offense;

          (2) Operating without all required permits, certificates and licenses;

          (3) Making an intentionally false statement to the Department;

          (4) Intentionally destroying or concealing evidence;

          (5) Intentionally failing to pay taxes to the Department;

          (6) Allowing noisy, disorderly or unlawful activity that results in death or serious physical injury, that involves the unlawful use or attempted use of a deadly weapon against another person or that results in a sexual offense which is a category A felony;

          (7) Operating a marijuana establishment while the license for the marijuana establishment is suspended or revoked; or

          (8) Transporting marijuana outside of the boundaries of this State, except where authorized by an agreement between the Governor of this State and a participating tribal government.

     (b) Category II violations are violations that create a present threat to public health or safety, including, without limitation:

          (1) Making an unintentional false statement or representation of fact to the Department;

          (2) Failing to promptly admit regulatory or law enforcement personnel into the premises of a marijuana establishment;

          (3) Unintentionally destroying or concealing evidence;

          (4) Failing to notify the Department of a change of ownership;

          (5) Denying access by law enforcement or regulatory personnel to the premises of the marijuana establishment during regular business hours;

          (6) Allowing noisy, disorderly or unlawful activity that involves use of a dangerous weapon against another person with intent to cause death or serious physical injury;

          (7) Allowing a person who is less than 21 years of age to work or volunteer at the marijuana establishment;

          (8) Refusing to allow an inspection or obstructing a law enforcement officer from performing his or her official duties;

          (9) Failing to cease operation and notify the Department during an imminent health hazard;

          (10) Purchasing marijuana from an unapproved source;

          (11) Purchasing or selling marijuana that has not passed the analysis required by a marijuana testing facility without written approval from the Department;

          (12) Operating an unapproved extraction unit;

          (13) Selling an amount of marijuana in excess of transaction limits; or

          (14) Failing to maintain required security alarm and surveillance systems pursuant to NAC 453D.434.

     (c) Category II(b) violations are violations for failing to verify the age of, or selling or otherwise providing marijuana or marijuana paraphernalia to, a person who is less than 21 years of age.

     (d) Category III violations are violations that create a potential threat to public health or safety, including, without limitation:

          (1) Allowing a person who is less than 21 years of age to enter or remain in a marijuana establishment or transport vehicle unless the person holds a registry identification card or letter of approval;

          (2) Permitting sales by a person without a marijuana establishment agent registration card unless that person is deemed to be temporarily registered pursuant to NAC 453D.340;

          (3) Allowing consumption by any person of alcohol, marijuana or other intoxicants on the premises of the marijuana establishment or in areas adjacent to the premises of the marijuana establishment which are under the licensee’s control, including, without limitation, a parking lot;

          (4) Failing to keep any required records, including seed-to-sale tracking requirements;

          (5) Failing to tag all plants as required;

          (6) Failing to follow an approved security plan;

          (7) Allowing disorderly activity;

          (8) Allowing any activity which violates the laws of this State;

          (9) Failing to notify the Department within 24 hours after discovery of a serious incident or criminal activity on the premises of the marijuana establishment;

          (10) Unintentionally failing to pay taxes to the Department;

          (11) Selling unauthorized products;

          (12) Failing to notify the Department of a modification or expansion of the facilities of the marijuana establishment or a change in equipment or menu of the marijuana establishment;

          (13) Violating packaging or labeling requirements;

          (14) Storing or delivering an unapproved marijuana product;

          (15) Failing to meet requirements for the disposal of marijuana waste;

          (16) Using unauthorized pesticides, soil amendments, fertilizers or other crop production aids;

          (17) Exceeding the maximum serving requirements for marijuana products;

          (18) Exceeding a reasonable time frame for delivery without approval from the Department;

          (19) Transporting or storing marijuana from an unlicensed source or diversion of marijuana or marijuana products;

          (20) Picking up, unloading or delivering marijuana at an unauthorized location;

          (21) Failing to comply with requirements for hand washing and employee hygiene, including, without limitation, using a bare hand on a marijuana product;

          (22) Failing to maintain proper temperature of potentially hazardous food or marijuana products;

          (23) Failing to comply with requirements for water temperature;

          (24) Failing to prevent backflow of plumbing; or

          (25) Selling or failing to dispose of marijuana, marijuana products or food items that are spoiled or contaminated.

     (e) Category IV violations are violations that create a climate which is conducive to abuses associated with the sale or production of marijuana or marijuana products, including, without limitation:

          (1) Failing to display or have in the immediate possession of each marijuana establishment agent a marijuana establishment agent registration card or proof of temporary registration;

          (2) Removing, altering or covering a notice of suspension of a license or any other required notice or sign;

          (3) Violating advertising requirements;

          (4) Displaying products in a manner visible to the general public from a public right of way;

          (5) Failing to respond to an administrative notice of a violation or failing to pay fines;

          (6) Violating restrictions on sampling;

          (7) Failing to maintain a standardized scale as required;

          (8) Transporting marijuana in an unauthorized vehicle;

          (9) Improper storing of marijuana, marijuana products or other foods;

          (10) Failing to properly wash, rinse and sanitize product contact surfaces as required;

          (11) Failing to maintain hand-washing facilities that are stocked, accessible and limited to hand washing only;

          (12) Infestation by pests that are not multigenerational or on contact surfaces;

          (13) Failing to properly use sanitizer as required; or

          (14) Violating any transportation or delivery requirements not described in another category of violations.

     (f) Category V violations are violations that are inconsistent with the orderly regulation of the sale or production of marijuana or marijuana products, including, without limitation:

          (1) Failing to submit monthly tax or sales reports or payments;

          (2) Failing to notify the Department of a temporary closure of the marijuana establishment;

          (3) Failing to post any required signs;

          (4) Failing to notify the Department of a change in the name of the marijuana establishment;

          (5) Making a payment with a check returned for insufficient funds; or

          (6) Failing to comply with any other requirements not described in another category of violations.

     4.  Before consideration of the factors described in subsection 2, the Department will presume that the following are appropriate penalties for violations of this chapter or chapter 453D of NRS:

     (a) For a category I violation which is the:

          (1) First violation in the immediately preceding 2 years, a civil penalty of not more than $35,000 and a suspension for not more than 30 days or revocation of a license or marijuana establishment agent registration card.

          (2) Second or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

     (b) For a category II violation which is the:

          (1) First violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 and a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

          (2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $20,000 and a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

          (3) Third or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

     (c) For a category II(b) violation which is the:

          (1) First violation in the immediately preceding 2 years, a civil penalty of not more than $5,000.

          (2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

          (3) Third violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

          (4) Fourth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

     (d) For a category III violation which is the:

          (1) First violation in the immediately preceding 2 years, a civil penalty of not more than $2,500.

          (2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

          (3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

          (4) Fourth violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

          (5) Fifth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

     (e) For a category IV violation which is the:

          (1) First violation in the immediately preceding 2 years, a civil penalty of not more than $1,250.

          (2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $2,500 or a suspension for not more than 7 days of a license or marijuana establishment agent registration card.

          (3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

          (4) Fourth violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

          (5) Fifth violation in the immediately preceding 2 years, a suspension for not more than 30 days of a license or marijuana establishment agent registration card.

          (6) Sixth or subsequent violation in the immediately preceding 2 years, revocation of a license or marijuana establishment agent registration card.

     (f) For a category V violation which is the:

          (1) First violation in the immediately preceding 2 years, a warning.

          (2) Second violation in the immediately preceding 2 years, a civil penalty of not more than $750.

          (3) Third violation in the immediately preceding 2 years, a civil penalty of not more than $1,250 or a suspension for not more than 3 days of a license or marijuana establishment agent registration card.

          (4) Fourth violation in the immediately preceding 2 years, a civil penalty of not more than $2,500 or a suspension for not more than 7 days of a license or marijuana establishment agent registration card.

          (5) Fifth violation in the immediately preceding 2 years, a civil penalty of not more than $5,000 or a suspension for not more than 10 days of a license or marijuana establishment agent registration card.

          (6) Sixth or subsequent violation in the immediately preceding 2 years, a civil penalty of not more than $10,000 or a suspension for not more than 20 days of a license or marijuana establishment agent registration card.

     5.  The Department will determine whether an event is an imminent health hazard that requires immediate correction or cessation of operations to prevent injury based on the nature, severity and duration of any anticipated injury, illness or disease and the number of injuries or illnesses to members of the public which may occur. Events that are presumed to be imminent health hazards include, without limitation:

     (a) Interruption of electrical service;

     (b) Lack of potable water or hot water;

     (c) Grossly unsanitary occurrences or conditions including, without limitation, pest infestation or sewage or liquid waste not being disposed of in an approved manner;

     (d) Lack of adequate refrigeration;

     (e) Lack of adequate toilet and hand-washing facilities for employees;

     (f) Misuse of poisonous or toxic materials;

     (g) A suspected outbreak of foodborne illness;

     (h) A fire or flood; or

     (i) Any other condition or circumstance which endangers public health.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.908  Notice of disciplinary action or civil penalty; rescission of action or penalty by Department; request for hearing. (NRS 453D.200)

     1.  The Department will notify a person on whom disciplinary action or a civil penalty is imposed pursuant to NAC 453D.905. The notice must contain the following information:

     (a) The date of the violation or, if the date of the violation is unknown, the date that the violation was identified;

     (b) The address or description of the location where the violation occurred;

     (c) The section of this chapter or chapter 453D of NRS that was violated and a description of the violation;

     (d) The amount of the civil penalty or a description of the action taken for the violation;

     (e) A description of the payment process, including a description of the time within which and the place to which any civil penalty must be paid;

     (f) An order prohibiting the continuation or repeated occurrence of the violation described in the notice;

     (g) A description of the appeals process, including, without limitation, the time within which the disciplinary action or civil penalty may be contested and the place to which an appeal must be made; and

     (h) The name and signature of the enforcement officer who issued the citation for the violation.

     2.  If the Department determines that a disciplinary action or civil penalty has been inappropriately issued, the Department may rescind the disciplinary action or civil penalty.

     3.  A person that receives a notice pursuant to subsection 1 may request a hearing within 30 days after the notice is issued.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.912  Reinstatement of license or marijuana establishment agent registration card: Application; conditions, limitations or restrictions upon reinstatement; denial. (NRS 453D.200)

     1.  If a person applies for reinstatement of a license or marijuana establishment agent registration card that has been revoked pursuant to this chapter, the person shall:

     (a) Submit an application on a form supplied by the Department.

     (b) Satisfy all the current requirements for the issuance of an initial license or marijuana establishment agent registration card.

     (c) Attest that, in this State or any other jurisdiction:

          (1) The person has not, during the period of revocation, violated any state or federal law relating to marijuana, and no criminal or civil action involving such a violation is pending against the person; and

          (2) No other regulatory body has, during the period of revocation, taken disciplinary action against the person, and no such disciplinary action is pending against the person.

     (d) Satisfy any additional requirements for reinstatement of the license or marijuana establishment agent registration card prescribed by the Department.

     2.  The Department will consider each application for reinstatement of a license or marijuana establishment agent registration card submitted pursuant to this section. In determining whether to reinstate the license or marijuana establishment agent registration card, the Department will consider the following criteria:

     (a) The severity of the act resulting in the revocation of the license or marijuana establishment agent registration card.

     (b) The conduct of the person after the revocation of the license or marijuana establishment agent registration card.

     (c) The amount of time elapsed since the revocation of the license or marijuana establishment agent registration card.

     (d) The veracity of the attestations made by the person pursuant to subsection 1.

     (e) The degree of compliance by the person with any additional requirements for reinstatement of the license or marijuana establishment agent registration card prescribed by the Department.

     (f) The degree of rehabilitation demonstrated by the person.

     3.  If the Department reinstates the license or marijuana establishment agent registration card, the Department may place any conditions, limitations or restrictions on the license or marijuana establishment agent registration card as it deems necessary.

     4.  The Department may deny reinstatement of the license or marijuana establishment agent registration card if the person fails to comply with any provisions of this section.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Summary Suspension of License of Marijuana Establishment or Marijuana Establishment Agent Registration Card

     NAC 453D.920  Grounds for summary suspension; notice; request for hearing. (NRS 453D.200)

     1.  Pursuant to subsection 3 of NRS 233B.127, if the Department finds that the public health, safety or welfare imperatively requires emergency action, the Department may issue an order of summary suspension of the license of a marijuana establishment or a marijuana establishment agent registration card pending proceedings for revocation or other action. An order of summary suspension issued by the Department must contain findings of the exigent circumstances which warrant the issuance of the order of summary suspension, and a suspension under such an order is effective immediately.

     2.  The Department will give notice to a person that is subject to an order of summary suspension of the facts or conduct that warrant the order and the deficiencies that must be corrected to lift the order. A person that is subject to an order of summary suspension shall not operate until the Department has confirmed that the deficiencies identified in the order have been corrected.

     3.  A person that is subject to an order of summary suspension may request a hearing regarding the order within 10 business days after the order is issued.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.925  Authority of party to file answer; amendment of notice or order; request for continuance of hearing; inclusion of documentation in record at hearing. (NRS 453D.200)

     1.  After being served with a notice or order of summary suspension, a person may, but is not required to, file an answer to the notice or order of summary suspension. The person may file such an answer not later than 10 days after the date of service of the notice or order of summary suspension.

     2.  The Department may amend the notice or order of summary suspension at any time before the hearing. If the Department amends the notice or order of summary suspension before the hearing, the Department will:

     (a) File the amended notice or order of summary suspension with the hearing officer; and

     (b) Serve the person with the amended notice or order of summary suspension.

     3.  After being served with an amended notice or order of summary suspension, the person may do any or all of the following:

     (a) File an answer to the amended notice or order of summary suspension. The person may file such an answer not later than 10 days after the date of service of the amended notice or order of summary suspension or not later than the date of the hearing, whichever date is earlier.

     (b) Move for a continuance of the hearing. The hearing officer shall grant the continuance if the person demonstrates that:

          (1) The amendment materially alters the allegations in the notice or order of summary suspension; and

          (2) The person does not have a reasonable opportunity to prepare a defense against the amended notice or order of summary suspension before the date of the hearing.

     4.  The Department may amend the notice or order of summary suspension at the time of the hearing if the amendment is not considered material and the substantial rights of the person would not be prejudiced by the amendment.

     5.  The notice or order of summary suspension, any amended notice or order of summary suspension and any answer filed by the person must be made part of the record at the hearing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.930  Written discovery request; contents and discovery of investigative file; party barred from serving interrogatories or taking depositions. (NRS 453D.200)

     1.  At any time after being served with a notice or order of summary suspension, the person may file with the hearing officer a written discovery request for a copy of all documents and other evidence intended to be presented by the Department in support of the case and a list of proposed witnesses.

     2.  The investigative file for a case is not discoverable unless the Department intends to present materials from the investigative file as evidence in support of the case. The investigative file for the case includes all communications, records, affidavits or reports acquired or created as part of the investigation of the case, whether or not acquired through a subpoena related to the investigation of the person.

     3.  A party may not serve any interrogatories on another party or take any depositions relating to the case.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

Hearings

     NAC 453D.940  Contents and service of notice; scheduling; service of findings of fact, conclusions of law and decision; authority of hearing officer to impose disciplinary action or civil penalty. (NRS 453D.200)

     1.  The hearing officer shall send a notice to set a hearing to the last known mailing address of a person who requests a hearing.

     2.  The hearing officer shall conduct an administrative hearing pursuant to NAC 453D.908 or 453D.920 within 15 days after receiving a request for a hearing. The hearing officer may continue such a hearing for good cause shown.

     3.  Notice of an administrative hearing conducted pursuant to this section must be served by mail at least 10 days before the date of the hearing to any person who requests a hearing.

     4.  Notice of a hearing served pursuant to subsection 3 must specify:

     (a) The purpose of the hearing; and

     (b) The date, time and location of the hearing.

     5.  Hearings must be held at the offices of the Department in Carson City or at such other place in the State as may be designated in the notice of hearing.

     6.  A hearing date may be scheduled with less than 10 days’ notice if all parties to the hearing agree in writing.

     7.  After a hearing held pursuant to this section, the hearing officer shall prepare written findings of fact, conclusions of law and his or her decision on the issues presented at the hearing. The hearing officer shall serve a copy of his or her findings of fact, conclusions of law and decision upon all parties to the hearing within 20 days after the date of the hearing.

     8.  In his or her written decision, the hearing officer may:

     (a) Suspend or revoke a license or marijuana establishment agent registration card. If the hearing officer orders the suspension of a license or marijuana establishment agent registration card, the hearing officer shall prescribe the time period of the suspension in the written decision. If the hearing officer orders the revocation of a license or marijuana establishment agent registration card, the hearing officer shall prescribe a period of not less than 1 year and not more than 10 years during which the person may not apply for reinstatement of the license or marijuana establishment agent registration card.

     (b) Impose a civil penalty upon a person who holds a license or marijuana establishment agent registration card issued pursuant to this chapter and chapter 453D of NRS not more than $35,000 for each separate violation of this chapter or chapter 453D of NRS which is the subject of the hearing. Such a civil penalty must be paid to the State Treasurer for deposit in the State General Fund and used for the purposes set forth in NRS 453D.510.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.944  Representation of party; duties of attorney; withdrawal of attorney; bar of attorney from participation or imposition of sanctions; responsibility for costs. (NRS 453D.200)

     1.  In any hearing against a person pursuant to this chapter, the person may appear on his or her own behalf or the person may be represented by:

     (a) An attorney licensed to practice law in this State; or

     (b) An attorney licensed to practice law in another state who is properly associated with an attorney licensed to practice law in this State and who provides a certificate of good standing from the licensing authority of the other state.

     2.  An attorney representing a person shall:

     (a) Ensure that his or her conduct complies with the Nevada Rules of Professional Conduct; and

     (b) Conform to all standards of ethical and courteous behavior required in the courts of this State.

     3.  An attorney may withdraw from representing a person upon notice to the person, the Department and the hearing officer. The notice must include the reason for the requested withdrawal. The hearing officer may deny the request if there may be an unreasonable delay in the case or the substantial rights of the person may be prejudiced.

     4.  If the hearing officer finds that an attorney has violated any provision of this section, the hearing officer may bar the attorney from participating in the case or may impose such other sanctions as the hearing officer deems appropriate.

     5.  A person subject to a hearing pursuant to this chapter is responsible for all costs related to the presentation of his or her defense.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.948  Authorized communications to hearing officer. (NRS 453D.200)  A party to a hearing shall not communicate either directly or indirectly with the hearing officer about any issue of fact or law related to the case unless the communication:

     1.  Is part of a pleading, motion or other document that is properly filed and served on all parties; or

     2.  Occurs while all parties are present or occurs during a meeting or hearing for which all parties have been given proper notice, whether or not all parties are present at that meeting or hearing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.952  Prehearing conference; conference before taking testimony. (NRS 453D.200)

     1.  The hearing officer may, upon his or her own motion or the motion of a party, hold a prehearing conference for the purpose of formulating or simplifying the issues, obtaining admissions of fact or documents which will avoid unnecessary proof, arranging for the exchange of proposed exhibits or prepared expert testimony, limiting the number of witnesses, any procedure for the hearing and any other matters which may expedite orderly conduct and the disposition of the proceedings or settlements thereof.

     2.  The action taken at a prehearing conference and the agreements, admissions or stipulations made by the parties concerned must be made a part of the record and must be approved by the parties. When approved, such an action will control the course of subsequent proceedings, unless otherwise stipulated to by all the parties of record with the consent of the hearing officer.

     3.  In any proceeding the hearing officer may, in his or her discretion, call all of the parties together for a conference before the taking of testimony. The hearing officer shall state on the record the results of the conference.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.956  Continuances and recesses. (NRS 453D.200)  The hearing officer may, in his or her discretion, either before or during a hearing, grant continuances or recesses.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.960  Failure to appear. (NRS 453D.200)  At the time and place set for the hearing, if a party fails to appear, the hearing officer may, in his or her discretion, dismiss the proceeding with or without prejudice or may recess the hearing for a period of time to be set by the hearing officer to enable the party to attend. If the hearing officer finds that all parties received proper notice, the hearing officer may accept testimony and exhibits from the parties who appear and, thereafter, issue a decision.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.964  Burden and standard of proof; order of evidence; request and costs for transcription. (NRS 453D.200)

     1.  The Department has the burden of proof, and the standard of proof is a preponderance of the evidence as defined in NRS 233B.0375.

     2.  Evidence may be received in any manner ordered by the hearing officer, but will ordinarily be received from the parties in the order described in NAC 453D.984.

     3.  If requested by any party, the hearing or any portion of the hearing must be transcribed. The party making the request shall pay all costs for the transcription.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.968  Subpoenas. (NRS 453D.200)

     1.  Except as otherwise provided in this subsection, the Department may issue a subpoena requiring the production of books and papers or the attendance of a witness from any place in the State to the place designated for a hearing for the purpose of taking testimony before the hearing officer. Such a subpoena must not compel the production of books or papers that contain individually identifiable health information.

     2.  A party desiring the Department to issue a subpoena must submit an application in writing to the hearing officer stating the reasons why a subpoena is requested.

     3.  The hearing officer may require that a subpoena requested by a party for the production of books, waybills, papers, accounts or other documents be issued only after the submission of an application in writing, which specifies as clearly as may be, the books, waybills, papers, accounts or other documents desired.

     4.  The hearing officer, upon receipt of an application for a subpoena, shall:

     (a) Grant the application and issue the subpoena;

     (b) Deny the application; or

     (c) Schedule a hearing to decide whether to grant or deny the application.

     5.  All costs incident to a subpoena issued at the request of a person that was served a notice or order of summary suspension must be paid by the person, and the hearing officer may demand payment of the costs before the issuance of a subpoena.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.972  Rules of evidence. (NRS 453D.200)

     1.  The hearing will not be conducted according to the technical rules of evidence. Any relevant evidence may be admitted, except where precluded by law, if it is of a type commonly relied upon by reasonable and prudent persons in the conduct of their affairs, even though the evidence might be subject to objection in civil actions.

     2.  Hearsay evidence, as that term is used in civil actions, may be admitted for the purpose of supplementing or explaining other evidence, but it is not sufficient to support findings of fact unless it would be admissible over objection in civil actions.

     3.  The rules of privilege will be applied as they are applied in civil actions.

     4.  Irrelevant, cumulative and unduly repetitious evidence is not admissible, nor is incompetent evidence, as that term is used in civil trials, with the exception of hearsay evidence as above provided.

     5.  The parties or their counsel may, by written stipulation, agree that certain specified evidence may be admitted, even though the evidence would otherwise be subject to objection.

     6.  The hearing officer or any party to any proceeding may cause the depositions of witnesses to be taken in the manner prescribed by law and the rules of the court for depositions in civil actions.

     7.  The affidavit of any person may be admitted in evidence if all the parties stipulate and consent to its admission.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.976  Official notice. (NRS 453D.200)  The hearing officer may take official notice of the following matters:

     1.  Rules, regulations, official reports, decisions and orders of the Department and any regulatory agency of the State.

     2.  Contents of decisions, orders, certificates and permits issued by the Department.

     3.  Matters of common knowledge and technical or scientific facts of established character.

     4.  Official documents, if pertinent, when properly introduced into the record of formal proceedings by reference if proper and definite reference to the document is made by the party offering it and it is published and generally circulated so that all of the parties of interest at the hearing have an opportunity to examine it and present rebuttal evidence.

     5.  Matters which may be judicially noticed by the courts of the State.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.980  Filing of briefs. (NRS 453D.200)

     1.  In any hearing, the hearing officer may order briefs filed within such time as he or she allows.

     2.  Briefs must be filed with the hearing officer and be accompanied by an acknowledgment of or an affidavit showing service on all other parties of record.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.984  Order of proceedings; deviation from order. (NRS 453D.200)

     1.  Except as otherwise provided in this section, in any hearing pursuant to this chapter, the hearing must proceed as follows:

     (a) The hearing officer shall call the hearing to order.

     (b) The parties and their representatives and the hearing officer must be introduced.

     (c) The hearing officer shall consider any preliminary motions, stipulations or orders and shall address any administrative details regarding the hearing.

     (d) The hearing officer:

          (1) Shall ask the parties if they want any witness excluded from the hearing;

          (2) Shall instruct any witness who is excluded from the hearing not to discuss the case during the course of the hearing;

          (3) Shall allow the person who was served a notice or order of summary suspension to remain in the hearing;

          (4) Shall allow any person who acts as both a representative of the Department and a witness in the hearing to remain in the hearing; and

          (5) May, on its own motion, exclude any witness from the hearing.

     (e) The Department may make an opening statement. After the Department has had the opportunity to make an opening statement, the person that was served a notice or order of summary suspension may make an opening statement. The hearing officer may limit equally the time of the opening statement of each party.

     (f) The Department may present its case by presenting evidence and calling witnesses in the following manner:

          (1) The witness must be sworn in.

          (2) The Department may directly examine the witness.

          (3) The person that was served a notice or order of summary suspension may cross-examine the witness.

          (4) If requested, the Department may question the witness on redirect examination.

          (5) If requested, the person that was served a notice or order of summary suspension may question the witness on recross-examination.

     (g) After the Department has had the opportunity to present its case, the person that was served a notice or order of summary suspension may present his or her case by presenting evidence and calling witnesses in the following manner:

          (1) The witness must be sworn in.

          (2) The person that was served a notice or order of summary suspension may directly examine the witness.

          (3) The Department may cross-examine the witness.

          (4) If requested, the person that was served a notice or order of summary suspension may question the witness on redirect examination.

          (5) If requested, the Department may question the witness on recross-examination.

     (h) The hearing officer may question a witness at any time during the hearing. If a witness is questioned by the hearing officer, the party that called the witness may request permission to ask further questions, limited to the area addressed by the hearing officer. When that party has asked those questions, the other party may request permission to ask further questions, limited to the area addressed by the hearing officer.

     (i) After the Department and person that was served a notice or order of summary suspension have presented their cases, the hearing officer may allow the Department and person that was served a notice or order of summary suspension to call rebuttal witnesses. If the Department or person that was served a notice or order of summary suspension, or both, call one or more rebuttal witnesses, each rebuttal witness must be sworn in and questioned in the same manner as provided in paragraph (f) or (g), as appropriate.

     (j) The Department may make a closing argument. After the Department has had the opportunity to make a closing argument, the person that was served a notice or order of summary suspension may make a closing argument. The hearing officer may limit equally the time of the closing argument of each party. If the person that was served a notice or order of summary suspension makes a closing argument, the Department may make a final closing argument. The hearing officer may limit the time of the final closing argument.

     (k) If allowed by the hearing officer, either party may recommend specific disciplinary action to the hearing officer at the appropriate time.

     (l) After the close of the hearing, the hearing officer shall deliberate, reach a decision and prepare and serve findings of fact, conclusions of law and his or her final decision in accordance with NAC 453D.988. Not later than 60 days after the close of the hearing, the hearing officer shall prepare written findings and recommendations and serve the findings and recommendations on the parties for review.

     2.  The hearing officer may deviate from the order of the hearing set forth in subsection 1 if the hearing officer:

     (a) Upon a showing of good cause, deems it appropriate; or

     (b) Deems it necessary to expedite or ensure the fairness of the hearing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.988  Preparation and service of findings of fact, conclusions of law and final decision by hearing officer. (NRS 453D.200)

     1.  After the hearing of a contested case, the hearing officer shall prepare findings of fact, conclusions of law and his or her final decision on the issues presented in the hearing.

     2.  The hearing officer shall serve a copy of his or her findings of fact, conclusions of law and decision upon all the parties of record within 60 days after the date of the hearing.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.990  Motion to request rehearing or reconsideration; response in opposition; order ruling on motion; scope of rehearing. (NRS 453D.200)

     1.  After the close of the hearing, a party may file only the following motions:

     (a) A motion requesting a rehearing.

     (b) A motion requesting reconsideration of the findings of fact, conclusions of law and final decision of the hearing officer.

     (c) With leave of the hearing officer, any other motion requesting appropriate action or relief after the close of the hearing.

     2.  A motion requesting a rehearing or reconsideration must be filed with the hearing officer not later than 15 days after the date of service of the findings of fact, conclusions of law and final decision of the hearing officer.

     3.  A party that opposes the motion may file a response to the motion not later than 7 days after the date of service of the motion.

     4.  A motion requesting a rehearing or reconsideration may be based only on one of the following grounds:

     (a) Newly discovered or available evidence.

     (b) Error in the hearing or in the findings of fact, conclusions of law or final decision that would be grounds for reversal of the findings, conclusions or decision.

     (c) The need in the public interest for further consideration of the issues or evidence, or both.

     5.  The hearing officer shall enter an order ruling on the motion requesting a rehearing or reconsideration not later than 25 days after the date on which the motion is filed. A copy of the order must be served on each party. The hearing officer may:

     (a) Deny the motion;

     (b) Order a rehearing or partial rehearing;

     (c) Order reconsideration of the findings of fact, conclusions of law or final decision of the hearing officer; or

     (d) Direct other proceedings as the hearing officer deems appropriate.

     6.  If the hearing officer orders a rehearing, the rehearing must be confined to the issues upon which the rehearing was ordered.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.994  Notice of appeal with Nevada Tax Commission; oral argument; final written decision on appeal; disciplinary action or civil penalty effective until reversed on appeal; authorized judicial review. (NRS 453D.200)

     1.  The Department, any party to a hearing or a designated representative may, within 30 days after service of the copy of the findings of fact, conclusions of law and final decision of the hearing officer, file a notice of appeal with the Nevada Tax Commission.

     2.  Within 30 days after filing a notice of appeal, the appellant shall file with the Nevada Tax Commission a:

     (a) Brief setting forth the points relied upon in the appeal and authorities in support thereof; and

     (b) Designation of the parts of the record before the hearing officer that the appellant deems relevant to the appeal.

     3.  An appeal from the decision of the hearing officer to the Nevada Tax Commission must be based upon one or more of the grounds set forth in subsection 3 of NRS 233B.135.

     4.  The filing of a notice of appeal does not excuse compliance with the decision of the hearing officer nor suspend the effectiveness of a decision unless otherwise ordered by the hearing officer.

     5.  After receipt of a notice of appeal, filed in compliance with subsection 1, and the documentation required by subsection 2, the Department will schedule a time for oral argument before the Nevada Tax Commission at its next meeting. The oral argument will be limited to a period of time not to exceed 20 minutes unless extended by the Nevada Tax Commission. The Nevada Tax Commission will not review evidence which was not submitted to the hearing officer unless it determines that good cause exists for a failure to submit the evidence to the hearing officer.

     6.  The Nevada Tax Commission will modify, reverse or affirm the decision of the hearing officer or remand the case to the hearing officer. The Director of the Department shall issue a final written decision on behalf of the Nevada Tax Commission.

     7.  Any revocation, suspension or civil penalty affirmed by the Nevada Tax Commission is effective until reversed upon judicial review, except that the Nevada Tax Commission may stay its order pending a rehearing or judicial review upon such terms and conditions as it deems proper.

     8.  Judicial review of any such order or decision of the Nevada Tax Commission may be had in accordance with NAC 453D.996.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)

     NAC 453D.996  Judicial review. (NRS 453D.200)

     1.  Except as otherwise provided in the Nevada Constitution, a party may not seek any type of judicial intervention or review of a hearing until after the hearing results in a final decision of the Nevada Tax Commission.

     2.  Except as otherwise provided in this section, a party may seek judicial review of a final decision of the Nevada Tax Commission in accordance with the provisions of chapter 233B of NRS that apply to a contested case.

     (Added to NAC by Dep’t of Taxation by R092-17, eff. 2-27-2018)