[Rev. 12/21/2019 3:13:06 PM--2019]

CHAPTER 678B - LICENSING AND CONTROL OF CANNABIS

GENERAL PROVISIONS

NRS 678B.010        Legislative findings and declarations. [Effective July 1, 2020.]

NRS 678B.020        Definitions. [Effective July 1, 2020.]

NRS 678B.030        “Concentrated cannabis” defined. [Effective July 1, 2020.]

NRS 678B.040        “Enclosed, locked facility” defined. [Effective July 1, 2020.]

NRS 678B.050        “Excluded felony offense” defined. [Effective July 1, 2020.]

NRS 678B.060        “Inventory control system” defined. [Effective July 1, 2020.]

NRS 678B.070        “Unreasonably impracticable” defined. [Effective July 1, 2020.]

PRODUCTION AND DISTRIBUTION OF CANNABIS

Licensing of Cannabis Establishments and Registration of Cannabis Establishment Agents

NRS 678B.200        General qualifications for licensure or registration; regulations. [Effective July 1, 2020.]

NRS 678B.210        Licensing of medical cannabis establishments: Requirements; expiration and renewal. [Effective July 1, 2020.]

NRS 678B.220        Licensing of medical cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction; reallocation of licenses. [Effective July 1, 2020.]

NRS 678B.230        Licensing of medical cannabis establishments in larger counties: Limitation on number of medical cannabis dispensaries located in any one governmental jurisdiction within county; limitation on number of licenses issued to any one person. [Effective July 1, 2020.]

NRS 678B.240        Licensing of medical cannabis establishments: Considerations in determining whether to issue license. [Effective July 1, 2020.]

NRS 678B.250        Licensing of adult-use cannabis establishments: Requirements; expiration and renewal. [Effective July 1, 2020.]

NRS 678B.260        Licensing of adult-use cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction. [Effective July 1, 2020.]

NRS 678B.270        Licensing of adult-use cannabis establishments in larger counties: Limitation on number of licenses issued to any one person. [Effective July 1, 2020.]

NRS 678B.280        Licensing of adult-use cannabis establishments: Considerations in determining whether to issue license. [Effective July 1, 2020.]

NRS 678B.290        Cannabis independent testing laboratories. [Effective July 1, 2020.]

NRS 678B.300        Licensing of cannabis establishments: Limitation on acceptance of applications. [Effective July 1, 2020.]

NRS 678B.310        Issuance of licenses to business entities. [Effective July 1, 2020.]

NRS 678B.320        Licensing of cannabis establishments: Licenses deemed conditional pending compliance with local requirements. [Effective July 1, 2020.]

NRS 678B.330        Provision of information regarding inspection or review of cannabis establishment by local government to Board. [Effective July 1, 2020.]

NRS 678B.340        Agents required to register with Board; requirements for registration. [Effective July 1, 2020.]

NRS 678B.350        Owners with 5 percent or more ownership interest required to register with Board; requirements for registration. [Effective July 1, 2020.]

NRS 678B.360        Payment of child support: Statement by applicant for license or registration card; ground for denial of license or registration card; duty of Board. [Effective July 1, 2020, and until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 678B.370        Suspension of license or registration card for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license or registration card. [Effective July 1, 2020, and until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 678B.380        License and registration card nontransferable; Board required to adopt regulations governing transferability of licenses and registration cards. [Effective July 1, 2020.]

NRS 678B.390        Fees. [Effective July 1, 2020.]

 

Requirements Concerning Operation of Cannabis Establishments

NRS 678B.500        Location, land use and signage; change of location. [Effective July 1, 2020.]

NRS 678B.510        Operating documents; security measures; requirements for cultivation; allowing consumption of cannabis on premises prohibited; inspection; video monitoring system required; vending machines prohibited. [Effective July 1, 2020.]

NRS 678B.520        Requirements concerning cannabis products; additional duties of cannabis sales facility and cannabis production facility. [Effective July 1, 2020.]

NRS 678B.530        Advertising sale, selling or appearing to sell cannabis or cannabis products without license prohibited. [Effective July 1, 2020.]

NRS 678B.540        Random laboratory assurance checks. [Effective July 1, 2020.]

 

Miscellaneous Provisions

NRS 678B.600        Employee of State Department of Agriculture exempt from state prosecution for certain acts involving cannabis. [Effective July 1, 2020.]

NRS 678B.610        Enforcement of contracts. [Effective July 1, 2020.]

NRS 678B.620        Training of cannabis establishment agents by independent contractor; issuance of cannabis establishment agent registration card to independent contractor. [Effective July 1, 2020.]

NRS 678B.630        Petition to determine if criminal history will disqualify person from obtaining license or registration card; fee; posting of requirements for license or card and list of disqualifying crimes on Internet; report. [Effective July 1, 2020.]

NRS 678B.640        Regulations of Department of Taxation regarding fair market value at wholesale of cannabis. [Effective July 1, 2020.]

NRS 678B.650        Regulations. [Effective July 1, 2020.]

_________

GENERAL PROVISIONS

      NRS 678B.010  Legislative findings and declarations. [Effective July 1, 2020.]  The Legislature hereby finds and declares that:

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

      2.  Any:

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

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

      (c) Cannabis establishment agent registration card issued pursuant to NRS 678B.340; and

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

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

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.020  Definitions. [Effective July 1, 2020.]  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678B.030 to 678B.070, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.030  “Concentrated cannabis” defined. [Effective July 1, 2020.]  “Concentrated cannabis” has the meaning ascribed to it in NRS 453.042.

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.040  “Enclosed, locked facility” defined. [Effective July 1, 2020.]  “Enclosed, locked facility” means a closet, display case, room, greenhouse or other enclosed area that meets the requirements of NRS 678C.460 and is equipped with locks or other security devices which allow access only by a registrant.

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.050  “Excluded felony offense” defined. [Effective July 1, 2020.]

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

      2.  The term does not include:

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

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

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.060  “Inventory control system” defined. [Effective July 1, 2020.]  “Inventory control system” means a process, device or other contrivance that may be used to monitor the chain of custody of cannabis from the point of cultivation to the end consumer.

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.070  “Unreasonably impracticable” defined. [Effective July 1, 2020.]  “Unreasonably impracticable” means the measures necessary to comply with the law or regulation require such a high investment of risk, money, time or any other resource or asset that the operation of a cannabis establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.

      (Added to NRS by 2019, 3790, effective July 1, 2020)

PRODUCTION AND DISTRIBUTION OF CANNABIS

Licensing of Cannabis Establishments and Registration of Cannabis Establishment Agents

      NRS 678B.200  General qualifications for licensure or registration; regulations. [Effective July 1, 2020.]

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 3802, effective July 1, 2020)

      NRS 678B.210  Licensing of medical cannabis establishments: Requirements; expiration and renewal. [Effective July 1, 2020.]

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

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

      3.  Except as otherwise provided in NRS 678B.220, 678B.230 and 678B.240, not later than 90 days after receiving an application to engage in the business of a medical cannabis establishment, the Board shall register the medical cannabis establishment and issue a medical cannabis establishment license and a random 20-digit alphanumeric identification number if:

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

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

             (2) An application, which must include:

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

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

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

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

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

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

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

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

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

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

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

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

      (b) None of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment have been convicted of an excluded felony offense;

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

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

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

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

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

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

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

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

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

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

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

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

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

      (b) A public park.

      (c) A playground.

      (d) A public swimming pool.

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

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

      (Added to NRS by 2019, 3790, effective July 1, 2020)

      NRS 678B.220  Licensing of medical cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction; reallocation of licenses. [Effective July 1, 2020.]

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

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

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

      (c) In a county whose population is 55,000 or more but less than 100,000, two licenses;

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

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

      2.  The Board:

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

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

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

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

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

      (Added to NRS by 2019, 3793, effective July 1, 2020)

      NRS 678B.230  Licensing of medical cannabis establishments in larger counties: Limitation on number of medical cannabis dispensaries located in any one governmental jurisdiction within county; limitation on number of licenses issued to any one person. [Effective July 1, 2020.]

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

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

      (a) One medical cannabis establishment license; or

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

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

      (Added to NRS by 2019, 3793, effective July 1, 2020)

      NRS 678B.240  Licensing of medical cannabis establishments: Considerations in determining whether to issue license. [Effective July 1, 2020.]

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

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

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

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 3794, effective July 1, 2020)

      NRS 678B.250  Licensing of adult-use cannabis establishments: Requirements; expiration and renewal. [Effective July 1, 2020.]

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

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

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

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

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

             (2) An application, which must include:

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

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

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

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

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

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

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

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

                   (II) The use of an inventory control system;

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

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

      (b) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment have been convicted of an excluded felony offense;

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

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

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

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

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

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

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

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

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

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

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

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

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

      (b) A public park.

      (c) A playground.

      (d) A public swimming pool.

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

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

      (Added to NRS by 2019, 3795, effective July 1, 2020)

      NRS 678B.260  Licensing of adult-use cannabis establishments: Limitation on total number of licenses that can be issued in each jurisdiction. [Effective July 1, 2020.]

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

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

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

      (c) In a county whose population is 55,000 or more but less than 100,000, four licenses; and

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

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

      (Added to NRS by 2019, 3797, effective July 1, 2020)

      NRS 678B.270  Licensing of adult-use cannabis establishments in larger counties: Limitation on number of licenses issued to any one person. [Effective July 1, 2020.]  Except as otherwise provided in subsection 2, to prevent monopolistic practices, the Board shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

      1.  One adult-use cannabis establishment license; or

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

      (Added to NRS by 2019, 3797, effective July 1, 2020)

      NRS 678B.280  Licensing of adult-use cannabis establishments: Considerations in determining whether to issue license. [Effective July 1, 2020.]

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 3797, effective July 1, 2020)

      NRS 678B.290  Cannabis independent testing laboratories. [Effective July 1, 2020.]

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

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

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

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

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

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

             (1) The concentration therein of THC and cannabidiol.

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

             (3) The composition of the tested material.

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

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

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

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

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

      (c) Agree to become accredited pursuant to standard ISO/IEC 17025 of the International Organization for Standardization within 1 year after licensure.

      (Added to NRS by 2019, 3809, effective July 1, 2020)

      NRS 678B.300  Licensing of cannabis establishments: Limitation on acceptance of applications. [Effective July 1, 2020.]  Except as otherwise provided in this section and subsection 3 of NRS 678B.220, the Board shall not, for more than a total of 10 business days in any 1 calendar year, accept applications to operate a cannabis establishment. The Board may by regulation prescribe longer periods in which it will accept applications to operate a cannabis establishment.

      (Added to NRS by 2019, 3798, effective July 1, 2020)

      NRS 678B.310  Issuance of licenses to business entities. [Effective July 1, 2020.]

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

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

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

      (c) To restrain any speculative promotion of the stock, securities or other interests in cannabis establishments.

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

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

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

      (Added to NRS by 2019, 3803, effective July 1, 2020)

      NRS 678B.320  Licensing of cannabis establishments: Licenses deemed conditional pending compliance with local requirements. [Effective July 1, 2020.]

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

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

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

      2.  The Board shall adopt regulations:

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

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

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

      (Added to NRS by 2019, 3798, effective July 1, 2020)

      NRS 678B.330  Provision of information regarding inspection or review of cannabis establishment by local government to Board. [Effective July 1, 2020.]  The Board may request information from a local government regarding any inspection or review of a cannabis establishment by the local government. A local government that receives a reasonable request from the Board pursuant to this section shall comply with the request as soon as is reasonably practicable after receiving the request.

      (Added to NRS by 2019, 3795, effective July 1, 2020)

      NRS 678B.340  Agents required to register with Board; requirements for registration. [Effective July 1, 2020.]

      1.  Except as otherwise provided in this section, a person shall not hold an ownership interest in a cannabis establishment of less than 5 percent, volunteer or work at, contract to provide labor to or be employed by an independent contractor to provide labor to a cannabis establishment as a cannabis establishment agent unless the person is registered with the Board pursuant to this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (e) Any information required by the Board to complete an investigation into the background of the prospective cannabis establishment agent, including, without limitation, financial records and other information relating to the business affairs of the prospective cannabis establishment agent;

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

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

      5.  A cannabis establishment shall notify the Board within 10 business days after a cannabis establishment agent ceases to hold an ownership interest in the cannabis establishment of less than 5 percent, be employed by, volunteer at or provide labor as a cannabis establishment agent to the cannabis establishment.

      6.  A person who:

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

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

      (c) Is not qualified, in the determination of the Board pursuant to NRS 678B.200,

Ê shall not serve as a cannabis establishment agent.

      7.  The Board shall submit the fingerprints of an applicant for registration as a cannabis establishment agent to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of the applicant.

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 2335, 3798, effective July 1, 2020) — (Substituted in revision for NRS 453D.222)

      NRS 678B.350  Owners with 5 percent or more ownership interest required to register with Board; requirements for registration. [Effective July 1, 2020.]

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

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

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

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

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

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 3801, effective July 1, 2020)

      NRS 678B.360  Payment of child support: Statement by applicant for license or registration card; ground for denial of license or registration card; duty of Board. [Effective July 1, 2020, and until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

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

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

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

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

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

      (b) A separate form prescribed by the Board.

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

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

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

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

      (Added to NRS by 2019, 2338, 3804, effective July 1, 2020) — (Substituted in revision for NRS 453D.224)

      NRS 678B.370  Suspension of license or registration card for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license or registration card. [Effective July 1, 2020, and until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

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

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

      (Added to NRS by 2019, 2338, 3805, effective July 1, 2020) — (Substituted in revision for NRS 453D.226)

      NRS 678B.380  License and registration card nontransferable; Board required to adopt regulations governing transferability of licenses and registration cards. [Effective July 1, 2020.]

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

      (a) A cannabis establishment agent registration card.

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

      (c) A medical cannabis establishment license.

      (d) An adult-use cannabis establishment license.

      2.  The Board shall adopt regulations which prescribe procedures and requirements by which a holder of a license may transfer the license to another party who is qualified to hold such a license pursuant to the provisions of this chapter.

      (Added to NRS by 2019, 3805, effective July 1, 2020)

      NRS 678B.390  Fees. [Effective July 1, 2020.]

      1.  Except as otherwise provided in subsection 2, the Board shall collect not more than the following maximum fees:

 

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

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

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

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

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

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

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

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

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

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis retail store   6,600

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility......................................................................................................................... 30,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility     10,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis production facility......................................................................................................................... 10,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis production facility     3,300

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

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

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

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

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

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

 

      2.  In addition to the fees described in subsection 1, each applicant for a medical cannabis establishment license or adult-use cannabis establishment license must pay to the Board:

      (a) A one-time, nonrefundable application fee of $5,000; and

      (b) The actual costs incurred by the Board in processing the application, including, without limitation, conducting background checks.

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

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

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

      (Added to NRS by 2019, 3803, effective July 1, 2020)

Requirements Concerning Operation of Cannabis Establishments

      NRS 678B.500  Location, land use and signage; change of location. [Effective July 1, 2020.]

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

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

      (Added to NRS by 2019, 3806, effective July 1, 2020)

      NRS 678B.510  Operating documents; security measures; requirements for cultivation; allowing consumption of cannabis on premises prohibited; inspection; video monitoring system required; vending machines prohibited. [Effective July 1, 2020.]

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

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

      (b) To ensure accurate recordkeeping.

      2.  Except as otherwise provided in this subsection, a cannabis establishment:

      (a) That is a cannabis sales facility must have a single entrance for patrons, which must be secure, and shall implement strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

      (b) That is not a cannabis sales facility must have a single secure entrance and shall implement strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

Ê The provisions of this subsection do not supersede any state or local requirements relating to minimum numbers of points of entry or exit, or any state or local requirements relating to fire safety.

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

      4.  A cannabis establishment shall not allow any person to consume cannabis on the property or premises of the establishment.

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

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

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

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

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

      (Added to NRS by 2019, 3806, effective July 1, 2020)

      NRS 678B.520  Requirements concerning cannabis products; additional duties of cannabis sales facility and cannabis production facility. [Effective July 1, 2020.]

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

      (a) Are labeled clearly and unambiguously:

             (1) As cannabis or medical cannabis with the words “THIS IS A MEDICAL CANNABIS PRODUCT” or “THIS IS A CANNABIS PRODUCT,” as applicable, in bold type; and

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

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

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

      (g) Are not labeled or marketed as candy.

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

      (a) Is or appears to be a lollipop.

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

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

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

      3.  A cannabis production facility shall:

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

      (b) Affix a label to each cannabis product 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 cannabis product;

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

             (4) The total content of THC measured in milligrams.

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

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

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

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

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

      6.  A cannabis sales facility shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (c) Any other product specified by regulation of the Board.

      (Added to NRS by 2019, 3807, effective July 1, 2020)

      NRS 678B.530  Advertising sale, selling or appearing to sell cannabis or cannabis products without license prohibited. [Effective July 1, 2020.]

      1.  A person shall not:

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

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

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

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

      (Added to NRS by 2019, 3809, effective July 1, 2020)

      NRS 678B.540  Random laboratory assurance checks. [Effective July 1, 2020.]

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

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

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

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

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

      (c) Provide each cannabis independent testing laboratory with a sample for analysis.

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

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

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

             (1) THC;

             (2) Tetrahydrocannabinolic acid;

             (3) Cannabidiol;

             (4) Cannabidiolic acid; and

             (5) Cannabinol; and

      (c) Such other quality assurance tests that the Board may require.

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

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

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

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

      (Added to NRS by 2019, 3810, effective July 1, 2020)

Miscellaneous Provisions

      NRS 678B.600  Employee of State Department of Agriculture exempt from state prosecution for certain acts involving cannabis. [Effective July 1, 2020.]

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

      (a) Possesses, delivers or produces cannabis;

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

      (c) Performs any combination of the acts described in paragraphs (a) and (b); or

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

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

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

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

      (Added to NRS by 2019, 3806, effective July 1, 2020)

      NRS 678B.610  Enforcement of contracts. [Effective July 1, 2020.]  It is the public policy of this State that contracts related to the operation of cannabis establishments under this title should be enforceable, and no contract entered into by the licensee or registrant as permitted pursuant to such a license or registration card, or by those who allow property to be used by a licensee or registrant as permitted pursuant to such a license or registration card, shall be deemed unenforceable on the basis that the actions or conduct permitted pursuant to the license or registration card are prohibited by federal law.

      (Added to NRS by 2019, 3811, effective July 1, 2020)

      NRS 678B.620  Training of cannabis establishment agents by independent contractor; issuance of cannabis establishment agent registration card to independent contractor. [Effective July 1, 2020.]

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

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

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

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

      (Added to NRS by 2019, 2478, 2480, effective July 1, 2020) — (Substituted in revision for NRS 453A.365 and 453D.305)

      NRS 678B.630  Petition to determine if criminal history will disqualify person from obtaining license or registration card; fee; posting of requirements for license or card and list of disqualifying crimes on Internet; report. [Effective July 1, 2020.]

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

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

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

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

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

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

      7.  The Board may post on its Internet website:

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

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

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

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

      (b) The Federal Bureau of Investigation.

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

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

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

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

      (c) The reasons for such determinations; and

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

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

      (Added to NRS by 2019, 2925, effective July 1, 2020) — (Substituted in revision for NRS 453A.367)

      NRS 678B.640  Regulations of Department of Taxation regarding fair market value at wholesale of cannabis. [Effective July 1, 2020.]  The Department of Taxation shall adopt regulations to establish procedures to determine the fair market value at wholesale of cannabis. The Board shall furnish the Department with such information as the Department determines to be necessary to adopt the regulations required by this section.

      (Added to NRS by 2019, 3811, effective July 1, 2020)

      NRS 678B.650  Regulations. [Effective July 1, 2020.]  The Board shall adopt such regulations as it determines to be necessary or advisable to carry out the provisions of this chapter. Such regulations are in addition to any requirements set forth in statute and must, without limitation:

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

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

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

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

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

      (c) Minimum requirements for the keeping of records by cannabis establishments;

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

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

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

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

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

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

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

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

      (Added to NRS by 2019, 3811, effective July 1, 2020)