[Rev. 6/2/2018 5:27:43 PM--2017]

CHAPTER 453D - REGULATION AND TAXATION OF MARIJUANA

NRS 453D.010        Short title. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.020        Findings and declarations. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.030        Definitions. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.100        Effect of chapter. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.110        Exemption from state or local prosecution for certain acts involving marijuana and marijuana paraphernalia. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.120        Additional exemption from state or local prosecution for certain acts involving marijuana and marijuana products. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.130        No crime for certain acts involving marijuana paraphernalia. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.140        Enforcement of contracts. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.200        Duties of Department relating to regulation and licensing of marijuana establishments; information about consumers. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.205        Department or marijuana establishment authorized to require person to submit fingerprints when conducting background check or determining criminal history.

NRS 453D.210        Acceptance of applications for licensing; priority in licensing; conditions for approval of application; limitations on issuance of licenses to retail marijuana stores; competing applications. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.220        Expiration and renewal of licenses. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.230        Fees. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.300        Requirements for operation of marijuana establishment; inspection of establishment. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.310        Requirements and restrictions concerning sale and advertising of marijuana products; requirements on marijuana product manufacturing facility and retail marijuana store; local government not prohibited from adopting more restrictive regulation concerning advertising. [Effective January 1, 2020.]

NRS 453D.320        Marijuana establishment prohibited from dispensing marijuana or marijuana products from vending machine. [Effective January 1, 2020.]

NRS 453D.400        Violations and penalties. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.500        Imposition of tax on wholesale sales of marijuana by marijuana cultivation facility. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.510        Use of proceeds of tax, fees and penalties. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

NRS 453D.600        Severability. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

_________

_________

 

      NRS 453D.010  Short title. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  This chapter may be cited as the Regulation and Taxation of Marijuana Act.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.020  Findings and declarations. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  In the interest of public health and public safety, and in order to better focus state and local law enforcement resources on crimes involving violence and personal property, the People of the State of Nevada find and declare that the use of marijuana should be legal for persons 21 years of age or older, and its cultivation and sale should be regulated similar to other legal businesses.

      2.  The People of the State of Nevada find and declare that the cultivation and sale of marijuana should be taken from the domain of criminals and be regulated under a controlled system, where businesses will be taxed and the revenue will be dedicated to public education and the enforcement of the regulations of this chapter.

      3.  The People of the State of Nevada proclaim that marijuana should be regulated in a manner similar to alcohol so that:

      (a) Marijuana may only be purchased from a business that is licensed by the State of Nevada;

      (b) Business owners are subject to a review by the State of Nevada to confirm that the business owners and the business location are suitable to produce or sell marijuana;

      (c) Cultivating, manufacturing, testing, transporting and selling marijuana will be strictly controlled through state licensing and regulation;

      (d) Selling or giving marijuana to persons under 21 years of age shall remain illegal;

      (e) Individuals will have to be 21 years of age or older to purchase marijuana;

      (f) Driving under the influence of marijuana will remain illegal; and

      (g) Marijuana sold in the State will be tested and labeled.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.030  Definitions. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  As used in this chapter, unless the context otherwise requires:

      1.  “Community facility” means a facility licensed to provide day care to children, a public park, a public playground, a public swimming pool, a center or facility the primary purpose of which is to provide recreational opportunities or services to children or adolescents, or a church, synagogue, or other building, structure, or place used for religious worship or other religious purpose.

      2.  “Concentrated marijuana” means the separated resin, whether crude or purified, obtained from marijuana.

      3.  “Consumer” means a person who is 21 years of age or older who purchases marijuana or marijuana products for use by persons 21 years of age or older, but not for resale to others.

      4.  “Department” means the Department of Taxation.

      5.  “Dual licensee” means a person or group of persons who possess a current, valid registration certificate to operate a medical marijuana establishment pursuant to chapter 453A of NRS and a license to operate a marijuana establishment under this chapter.

      6.  “Excluded felony offense” means a conviction of an offense that would constitute a category A felony if committed in Nevada or convictions for two or more offenses that would constitute felonies if committed in Nevada. “Excluded felony offense” does not include:

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

      (b) An offense involving conduct that would be immune from arrest, prosecution, or penalty pursuant to chapter 453A of NRS, except that the conduct occurred before the effective date of chapter 453A of NRS (October 1, 2001), or was prosecuted by an authority other than the State of Nevada.

      7.  “Locality” means a city or town, or, in reference to a location outside the boundaries of a city or town, a county.

      8.  “Marijuana” means all parts of any plant of the genus Cannabis, whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Marijuana” does not include:

      (a) The mature stems of the plant, fiber produced from the stems, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stems (except the resin extracted therefrom), fiber, oil, or cake, the sterilized seed of the plant which is incapable of germination; or

      (b) The weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.

      9.  “Marijuana cultivation facility” means an entity licensed to cultivate, process, and package marijuana, to have marijuana tested by a marijuana testing facility, and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.

      10.  “Marijuana distributor” means an entity licensed to transport marijuana from a marijuana establishment to another marijuana establishment.

      11.  “Marijuana establishment” means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, a marijuana distributor, or a retail marijuana store.

      12.  “Marijuana product manufacturing facility” means an entity licensed to purchase marijuana, manufacture, process, and package marijuana and marijuana products, and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.

      13.  “Marijuana products” means products comprised of marijuana or concentrated marijuana and other ingredients that are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.

      14.  “Marijuana paraphernalia” means any equipment, products, and materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, preparing, testing, analyzing, packaging, repacking, storing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.

      15.  “Marijuana testing facility” means an entity licensed to test marijuana and marijuana products, including for potency and contaminants.

      16.  “Process” means to harvest, dry, cure, trim, and separate parts of the marijuana plant by manual or mechanical means, such as sieving or ice water separation, but not by chemical extraction or chemical synthesis.

      17.  “Public place” means an area to which the public is invited or in which the public is permitted regardless of age. “Public place” does not include a retail marijuana store.

      18.  “Retail marijuana store” means an entity licensed to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities and retail marijuana stores, and to sell marijuana and marijuana products to consumers.

      19.  “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.100  Effect of chapter. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  The provisions of this chapter do not permit any person to engage in and do not prevent the imposition of any civil, criminal, or other penalty for:

      (a) Driving, operating, or being in actual physical control of a vehicle, aircraft, or vessel under power or sail while under the influence of marijuana or while impaired by marijuana;

      (b) Knowingly delivering, giving, selling, administering, or offering to sell, administer, give, or deliver marijuana to a person under 21 years of age, unless:

             (1) The recipient is permitted to possess marijuana pursuant to chapter 453A of NRS; or

             (2) The person demanded and was shown bona fide documentary evidence of the majority and identity of the recipient issued by a federal, state, county, or municipal government, or subdivision or agency thereof;

      (c) Possession or use of marijuana or marijuana paraphernalia on the grounds of, or within, any facility or institution under the jurisdiction of the Nevada Department of Corrections;

      (d) Possession or use of marijuana on the grounds of, or within, a school providing instruction in preschool, kindergarten, or any grades 1 through 12; or

      (e) Undertaking any task under the influence of marijuana that constitutes negligence or professional malpractice.

      2.  The provisions of this chapter do not prohibit:

      (a) A public or private employer from maintaining, enacting, and enforcing a workplace policy prohibiting or restricting actions or conduct otherwise permitted under this chapter;

      (b) A state or local government agency that occupies, owns, or controls a building from prohibiting or otherwise restricting the consumption, cultivation, processing, manufacture, sale, delivery, or transfer of marijuana in that building;

      (c) A person who occupies, owns, or controls a privately owned property from prohibiting or otherwise restricting the smoking, cultivation, processing, manufacture, sale, delivery, or transfer of marijuana on that property; or

      (d) A locality from adopting and enforcing local marijuana control measures pertaining to zoning and land use for marijuana establishments.

      3.  Nothing in the provisions of this chapter shall be construed as in any manner affecting the provisions of chapter 453A of NRS relating to the medical use of marijuana.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.110  Exemption from state or local prosecution for certain acts involving marijuana and marijuana paraphernalia. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, except as otherwise provided in this chapter, it is lawful, in this State, and must not be used as the basis for prosecution or penalty by this State or a political subdivision of this State, and must not, in this State, be a basis for seizure or forfeiture of assets for persons 21 years of age or older to:

      1.  Possess, use, consume, purchase, obtain, process, or transport marijuana paraphernalia, one ounce or less of marijuana other than concentrated marijuana, or one-eighth of an ounce or less of concentrated marijuana;

      2.  Possess, cultivate, process, or transport not more than six marijuana plants for personal use and possess the marijuana produced by the plants on the premises where the plants were grown, provided that:

      (a) Cultivation takes place within a closet, room, greenhouse, or other enclosed area that is equipped with a lock or other security device that allows access only to persons authorized to access the area; and

      (b) No more than 12 plants are possessed, cultivated, or processed at a single residence, or upon the grounds of that residence, at one time;

      3.  Give or otherwise deliver one ounce or less of marijuana, other than concentrated marijuana, or one-eighth of an ounce or less of concentrated marijuana without remuneration to a person provided that the transaction is not advertised or promoted to the public; or

      4.  Assist another person who is 21 years of age or older in any of the acts described in this section.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.120  Additional exemption from state or local prosecution for certain acts involving marijuana and marijuana products. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, except as otherwise provided in this chapter or the regulations adopted pursuant to NRS 453D.200, it is lawful and must not, in this State, be used as the basis for prosecution or penalty by this State or a political subdivision of this State, and must not, in this State, be a basis for seizure or forfeiture of assets for persons 21 years of age or older to:

      1.  Possess marijuana and marijuana products, purchase marijuana from a marijuana cultivation facility, purchase marijuana and marijuana products from a marijuana product manufacturing facility, return marijuana or marijuana products to a facility from which they were purchased, transport marijuana and marijuana products to or from a marijuana testing facility, use the services of a marijuana distributor to transport marijuana or marijuana products to or from marijuana establishments, or sell marijuana and marijuana products to consumers, if the person conducting the activities described in this subsection has a current, valid license to operate a retail marijuana store or is acting in the person’s capacity as an agent of a retail marijuana store.

      2.  Cultivate, harvest, process, package, or possess marijuana, sell marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store, transport marijuana to or from a marijuana cultivation facility, a marijuana product manufacturing facility, or a marijuana testing facility, use the services of a marijuana distributor to transport marijuana to or from marijuana establishments, or purchase marijuana from a marijuana cultivation facility, if the person conducting the activities described in this subsection has a current, valid license to operate a marijuana cultivation facility or is acting in his or her capacity as an agent of a marijuana cultivation facility.

      3.  Package, process, manufacture, or possess marijuana and marijuana products, transport marijuana and marijuana products to or from a marijuana testing facility, a marijuana cultivation facility, or a marijuana product manufacturing facility, use the services of a marijuana distributor to transport marijuana or marijuana products to or from marijuana establishments, sell marijuana and marijuana products to a retail marijuana store or a marijuana product manufacturing facility, purchase marijuana from a marijuana cultivation facility, or purchase marijuana and marijuana products from a marijuana product manufacturing facility, if the person conducting the activities described in this subsection has a current, valid license to operate a marijuana product manufacturing facility or is acting in his or her capacity as an agent of a marijuana product manufacturing facility.

      4.  Possess marijuana and marijuana products and transfer and transport marijuana and marijuana products between marijuana establishments, if the person transporting the marijuana and marijuana products has a current, valid license to operate as a marijuana distributor or is acting in his or her capacity as an agent of a marijuana distributor.

      5.  Possess, process, repackage, transport, or test marijuana and marijuana products if the person has a current, valid license to operate a marijuana testing facility or is acting in his or her capacity as an agent of a marijuana testing facility.

      6.  Lease or otherwise allow property owned, occupied, or controlled by any person, corporation, or other entity to be used for any of the activities conducted lawfully in accordance with this section.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.130  No crime for certain acts involving marijuana paraphernalia. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, it is not unlawful and shall not be an offense or be a basis for seizure or forfeiture of assets for persons 21 years of age or older to manufacture, possess, use, transport, or purchase marijuana paraphernalia, or to distribute or sell marijuana paraphernalia to a person who is 21 years of age or older.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.140  Enforcement of contracts. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  It is the public policy of the People of the State of Nevada that contracts related to the operation of marijuana establishments under this chapter should be enforceable, and no contract entered into by a licensee, its employees, or its agents as permitted pursuant to a valid license issued by the Department, or by those who allow property to be used by a licensee, its employees, or its agents as permitted pursuant to a valid license issued by the Department, shall be deemed unenforceable on the basis that the actions or conduct permitted pursuant to the license are prohibited by federal law.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.200  Duties of Department relating to regulation and licensing of marijuana establishments; information about consumers. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  Not later than January 1, 2018, the Department shall adopt all regulations necessary or convenient to carry out the provisions of this chapter. The regulations must not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. The regulations shall include:

      (a) Procedures for the issuance, renewal, suspension, and revocation of a license to operate a marijuana establishment;

      (b) Qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment;

      (c) Requirements for the security of marijuana establishments;

      (d) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under 21 years of age;

      (e) Requirements for the packaging of marijuana and marijuana products, including requirements for child-resistant packaging;

      (f) Requirements for the testing and labeling of marijuana and marijuana products sold by marijuana establishments including a numerical indication of potency based on the ratio of THC to the weight of a product intended for oral consumption;

      (g) Requirements for record keeping by marijuana establishments;

      (h) Reasonable restrictions on signage, marketing, display, and advertising;

      (i) Procedures for the collection of taxes, fees, and penalties imposed by this chapter;

      (j) Procedures and requirements to enable the transfer of a license for a marijuana establishment to another qualified person and to enable a licensee to move the location of its establishment to another suitable location;

      (k) Procedures and requirements to enable a dual licensee to operate medical marijuana establishments and marijuana establishments at the same location;

      (l) Procedures to establish the fair market value at wholesale of marijuana; and

      (m) Civil penalties for the failure to comply with any regulation adopted pursuant to this section or for any violation of the provisions of NRS 453D.300.

      2.  The Department shall approve or deny applications for licenses pursuant to NRS 453D.210.

      3.  The Department may by motion or on complaint, after investigation, notice of the specific violation, and an opportunity for a hearing, pursuant to the provisions of chapter 233B of NRS, suspend, revoke, or fine a licensee for the violation of this chapter or for a violation of a regulation adopted by the Department pursuant to this section.

      4.  The Department may immediately suspend the license of any marijuana establishment if the marijuana establishment knowingly sells, delivers, or otherwise transfers marijuana in violation of this chapter or knowingly purchases marijuana from any person not licensed pursuant to this chapter or to chapter 453A of NRS. The Department must provide an opportunity for a hearing pursuant to the provisions of NRS 233B.121 within a reasonable time from a suspension pursuant to this subsection.

      5.  To ensure that individual privacy is protected:

      (a) The Department shall not require a consumer to provide a retail marijuana store with identifying information other than government-issued identification to determine the consumer’s age; and

      (b) A retail marijuana store must not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.

      6.  The Department shall conduct a background check of each prospective owner, officer, and board member of a marijuana establishment license applicant.

      7.  The Department shall inspect marijuana establishments as necessary to enforce this chapter or the regulations adopted pursuant to this section.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.205  Department or marijuana establishment authorized to require person to submit fingerprints when conducting background check or determining criminal history.

      1.  When conducting a background check pursuant to subsection 6 of NRS 453D.200, the Department may require each prospective owner, officer and board member of a marijuana establishment license applicant to submit a complete set of fingerprints and written permission 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.

      2.  When determining the criminal history of a person pursuant to paragraph (c) of subsection 1 of NRS 453D.300, a marijuana establishment may require the person to submit to the Department a complete set of fingerprints and written permission 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.

      (Added to NRS by 2017, 3711)

      NRS 453D.210  Acceptance of applications for licensing; priority in licensing; conditions for approval of application; limitations on issuance of licenses to retail marijuana stores; competing applications. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  No later than 12 months after January 1, 2017, the Department shall begin receiving applications for marijuana establishments.

      2.  For 18 months after the Department begins to receive applications for marijuana establishments, the Department shall only accept applications for licenses for retail marijuana stores, marijuana product manufacturing facilities, and marijuana cultivation facilities pursuant to this chapter from persons holding a medical marijuana establishment registration certificate pursuant to chapter 453A of NRS.

      3.  For 18 months after the Department begins to receive applications for marijuana establishments, the Department shall issue licenses for marijuana distributors pursuant to this chapter only to persons holding a wholesale dealer license pursuant to chapter 369 of NRS, unless the Department determines that an insufficient number of marijuana distributors will result from this limitation.

      4.  Upon receipt of a complete marijuana establishment license application, the Department shall, within 90 days:

      (a) Issue the appropriate license if the license application is approved; or

      (b) Send a notice of rejection setting forth the reasons why the Department did not approve the license application.

      5.  The Department shall approve a license application if:

      (a) The prospective marijuana establishment has submitted an application in compliance with regulations adopted by the Department and the application fee required pursuant to NRS 453D.230;

      (b) The physical address where the proposed marijuana establishment will operate is owned by the applicant or the applicant has the written permission of the property owner to operate the proposed marijuana establishment on that property;

      (c) The property is not located within:

             (1) One thousand feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed marijuana establishment was submitted to the Department; or

             (2) Three hundred feet of a community facility that existed on the date on which the application for the proposed marijuana establishment was submitted to the Department;

      (d) The proposed marijuana establishment is a proposed retail marijuana store and there are not more than:

             (1) Eighty licenses already issued in a county with a population greater than 700,000;

             (2) Twenty licenses already issued in a county with a population that is less than 700,000 but more than 100,000;

             (3) Four licenses already issued in a county with a population that is less than 100,000 but more than 55,000;

             (4) Two licenses already issued in a county with a population that is less than 55,000;

             (5) Upon request of a county government, the Department may issue retail marijuana store licenses in that county in addition to the number otherwise allowed pursuant to this paragraph;

      (e) The locality in which the proposed marijuana establishment will be located does not affirm to the Department that the proposed marijuana establishment will be in violation of zoning or land use rules adopted by the locality; and

      (f) The persons who are proposed to be owners, officers, or board members of the proposed marijuana establishment:

             (1) Have not been convicted of an excluded felony offense; and

             (2) Have not served as an owner, officer, or board member for a medical marijuana establishment or a marijuana establishment that has had its registration certificate or license revoked.

      6.  When competing applications are submitted for a proposed retail marijuana store within a single county, the Department shall use an impartial and numerically scored competitive bidding process to determine which application or applications among those competing will be approved.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.220  Expiration and renewal of licenses. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  All licenses expire one year after the date of issue.

      2.  The Department shall issue a renewal license within 10 days of receipt of the prescribed renewal application and renewal fee from a marijuana establishment if its license is not under suspension or has not been revoked.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.230  Fees. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  The Department shall require each applicant for a marijuana establishment license to pay a one-time application fee of $5,000.

      2.  The Department may require payment of an annual licensing fee not to exceed:

 

For the initial issuance of a license for a retail marijuana store.................. $20,000

For a renewal license for a retail marijuana store............................................ $6,600

For the initial issuance of a license for a marijuana cultivation facility.... $30,000

For a renewal license for a marijuana cultivation facility............................ $10,000

For the initial issuance of a license for a marijuana product manufacturing facility     $10,000

For a renewal license for a marijuana product manufacturing facility......... $3,300

For the initial issuance of a license for a marijuana distributor.................. $15,000

For a renewal license for a marijuana distributor............................................ $5,000

For the initial issuance of a license for a marijuana testing facility........... $15,000

For a renewal license for a marijuana testing facility..................................... $5,000

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.300  Requirements for operation of marijuana establishment; inspection of establishment. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  In addition to requirements established by rule pursuant to NRS 453D.200:

      1.  Marijuana establishments shall:

      (a) Secure every entrance to the establishment so that access to areas containing marijuana is restricted to persons authorized to possess marijuana;

      (b) Secure the inventory and equipment of the marijuana establishment during and after operating hours to deter and prevent theft of marijuana;

      (c) Determine the criminal history of any person before the person works or volunteers at the marijuana establishment and prevent any person who has been convicted of an excluded felony offense or who is not 21 years of age or older from working or volunteering for the marijuana establishment.

      2.  All cultivation, processing, and manufacture of marijuana must take place at a physical address approved by the Department and within an area that is enclosed and locked in a manner that restricts access only to persons authorized to access the area. The area may be uncovered only if it is enclosed with security fencing that is designed to prevent unauthorized entry and that is at least 8 feet high.

      3.  All cultivation, processing, and manufacture of marijuana must not be visible from a public place by normal unaided vision.

      4.  All cultivation, processing, and manufacture of marijuana must take place on property in the marijuana establishment’s lawful possession or with the consent of the person in lawful physical possession of the property.

      5.  A marijuana establishment is subject to reasonable inspection by the Department, and a person who holds a marijuana establishment license must make himself or herself, or an agent thereof, available and present for any inspection required by the Department. The Department shall make reasonable accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.310  Requirements and restrictions concerning sale and advertising of marijuana products; requirements on marijuana product manufacturing facility and retail marijuana store; local government not prohibited from adopting more restrictive regulation concerning advertising. [Effective January 1, 2020.]

      1.  Each retail marijuana store and marijuana product manufacturing facility shall, in consultation with the Department, cooperate to ensure that all marijuana products offered for sale:

      (a) Are labeled clearly and unambiguously:

             (1) As marijuana with the words “THIS IS A MARIJUANA PRODUCT” in bold type; and

             (2) As required by this chapter and any regulations adopted pursuant thereto.

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

      (c) Are regulated and sold on the basis of the concentration of THC in the products and not by weight.

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

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

      (f) Are labeled in a manner which indicates the number of servings of THC in the product, measured in servings of a maximum of 10 milligrams per serving, and includes a statement that the product contains marijuana and its potency was tested with an allowable variance of the amount determined by the Department by regulation.

      (g) Are not labeled or marketed as candy.

      2.  A marijuana product must be sold in a single package. A single package must not contain:

      (a) 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.

      (b) For a marijuana product sold as a tincture, more than 800 milligrams of THC.

      (c) For a marijuana product sold as a food product, more than 100 milligrams of THC.

      (d) 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.

      (e) 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.

      (f) For any other marijuana product, more than 800 milligrams of THC.

      3.  A marijuana product manufacturing facility shall not produce marijuana products in any form that:

      (a) Is or appears to be a lollipop or ice cream.

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

      (c) Is modeled after a brand of products primarily consumed by or marketed to children.

      (d) Is made by applying concentrated marijuana to a commercially available candy or snack food item other than dried fruit, nuts or granola.

      4.  A marijuana product manufacturing facility shall:

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

      (b) Affix a label to each marijuana product intended for human consumption by oral ingestion which includes, without limitation, in a manner which must not mislead consumers, the following information:

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

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

             (3) A list of all allergens in the marijuana product; and

             (4) The total weight of marijuana contained in the marijuana product or an equivalent measure of THC concentration.

      (c) Maintain a washing area with hot water, soap and a hand dryer or disposable towels which is located away from any area in which marijuana products intended for human consumption by oral ingestion are cooked or otherwise prepared.

      (d) Require each person who handles marijuana products intended for human consumption by oral ingestion to wear a hair net and clean clothing and keep his or her fingernails neatly trimmed.

      (e) Package all marijuana products produced by the marijuana product manufacturing facility on the premises of the marijuana product manufacturing facility.

      5.  A retail marijuana store or marijuana product manufacturing facility shall not engage in advertising that in any way makes marijuana or marijuana products appeal to children, including, without limitation, advertising which uses an image of a cartoon character, mascot, action figure, balloon, fruit or toy.

      6.  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.

      7.  A retail marijuana store shall:

      (a) Include a written notification with each sale of marijuana or marijuana products which advises the purchaser:

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

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

             (3) 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;

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

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

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

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

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

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

      8.  If the health authority, as defined in NRS 446.050, where a marijuana product manufacturing facility or retail marijuana store which sells marijuana products intended for human consumption by oral ingestion is located requires persons who handle food at a food establishment to obtain certification, the marijuana product manufacturing facility or retail marijuana store shall ensure that at least one employee maintains such certification.

      9.  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; or

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

      (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.”

      10.  Nothing in subsection 9 shall be construed to prohibit a local government, pursuant to chapter 244, 268 or 278 of NRS, from adopting an ordinance for the regulation of advertising relating to marijuana which is more restrictive than the provisions of subsection 9 relating to:

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

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

      (c) Any stationary or moving display that is located on or near the premises of a marijuana establishment.

      (Added to NRS by 2017, 3665, effective January 1, 2020)

      NRS 453D.320  Marijuana establishment prohibited from dispensing marijuana or marijuana products from vending machine. [Effective January 1, 2020.]  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 NRS by 2017, 3711, effective January 1, 2020)

      NRS 453D.400  Violations and penalties. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]

      1.  Restrictions on personal cultivation.

      (a) Except as otherwise provided in chapter 453A of NRS, any person who:

             (1) Cultivates marijuana within 25 miles of a retail marijuana store licensed pursuant to this chapter, unless the person is a marijuana cultivation facility or a person acting in his or her capacity as an agent of a marijuana cultivation facility;

             (2) Cultivates marijuana plants where they are visible from a public place by normal unaided vision; or

             (3) Cultivates marijuana on property not in the cultivator’s lawful possession or without the consent of the person in lawful physical possession of the property;

      (b) Is guilty of:

             (1) For a first violation, a misdemeanor punished by a fine of not more than $600.

             (2) For a second violation, a misdemeanor punished by a fine of not more than $1,000.

             (3) For a third violation, a gross misdemeanor.

             (4) For a fourth or subsequent violation, a category E felony.

      2.  A person who smokes or otherwise consumes marijuana in a public place, in a retail marijuana store, or in a moving vehicle is guilty of a misdemeanor punished by a fine of not more than $600.

      3.  A person under 21 years of age who falsely represents himself or herself to be 21 years of age or older to obtain marijuana is guilty of a misdemeanor.

      4.  A person under 21 years of age who knowingly enters, loiters, or remains on the premises of a marijuana establishment shall be punished by a fine of not more than $500 unless the person is authorized to possess marijuana pursuant to chapter 453A of NRS and the marijuana establishment is a dual licensee.

      5.  A person who manufactures marijuana by chemical extraction or chemical synthesis, unless done pursuant to a marijuana product manufacturing license issued by the Department or authorized by chapter 453A of NRS, is guilty of a category E felony.

      6.  A person who knowingly gives marijuana to any person under 21 years of age, or who knowingly leaves or deposits any marijuana in any place with the intent that it will be procured by any person under 21 years of age is guilty of a misdemeanor.

      7.  A person who knowingly gives marijuana to any person under 18 years of age, or who knowingly leaves or deposits any marijuana in any place with the intent that it will be procured by any person under 18 years of age is guilty of a gross misdemeanor.

      8.  Notwithstanding the provisions of this chapter, after January 1, 2017, the Legislature may amend provisions of this act to provide for the conditions in which a locality may permit consumption of marijuana in a retail marijuana store.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.500  Imposition of tax on wholesale sales of marijuana by marijuana cultivation facility. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  An excise tax is hereby imposed and must be collected by the State respecting wholesale sales of marijuana in this State by a marijuana cultivation facility at a rate of 15 percent of the fair market value at wholesale of the marijuana. The tax imposed pursuant to this section:

      1.  Is the obligation of the marijuana cultivation facility; and

      2.  Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.510  Use of proceeds of tax, fees and penalties. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  Any tax revenues, fees, or penalties collected pursuant to this chapter first must be expended to pay the costs of the Department and of each locality in carrying out this chapter and the regulations adopted pursuant thereto. The Department shall remit any remaining money to the State Treasurer to be deposited to the credit of the State Distributive School Account in the State General Fund.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)

      NRS 453D.600  Severability. [This section was proposed by an initiative petition and approved by the voters at the 2016 General Election and therefore is not subject to legislative amendment or repeal until after November 22, 2019.]  If any provision of this chapter, or the application thereof to any person, thing or circumstance is held invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of this chapter as a whole or any provision or application of this chapter which can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this chapter are declared to be severable.

      (Added to NRS by 2016 initiative petition, Ballot Question No. 2)