AB 533 — Revises provisions relating to cannabis. (BDR 60-1217)

and 2.an adult-use cannabis establishment to another adult-usets from cannabis establishment.

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

3.

An adult-use cannabis production facility;

ority;or 5.

5.

license that is issued by the Board pursuant to section 96 of this act to authorize the operation of an adult-use cannabis establishment.

9.

“Adult-use cannabis establishment license” means a license that is issued by the Board pursuant to section 96 of this act to authorize the operation of an adult-use cannabis establishment.

Sec.

(b) Adult-use cannabis products.

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

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

- *AB533_R1* – 6 – Sec.

- 80th Session (2019) – 6 – 1.

and 2.dispenses cannabis or related supplies to a consumer or to anotheror adult-use cannabis retail store.

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

1.c.Sec.

16.

“Adult use of cannabis” means:

1.

The possession, delivery or use of paraphernalia used to adm3.istAnyadminister combinationcannabis; of the acts described in subsections 1 and 2,  by a person 21 years of age or older.

or 3.

Any combination of the acts described in subsections 1 and 2,  by a person 21 years of age or older.

19.

(Deleted by amendment.) Sec.

20.

(Deleted by amendment.) Sec.

“Cannabis establishment agent” means an owner, officer, board member, employee or volunteer of a cannabis establishment, an independent contractor who provides labor - *AB533_R1* – 7 – relating to the cultivation or processing of cannabis or the production of usable cannabis or cannabis products for a cannabis establishment or an employee of such an independent contractor.

- 80th Session (2019) – 7 – Sec.

“Cannabis establishment agent registration card for a cannabis executive” means a registration card issued by the BoardBoaSec. pursuant to section 104 of this act.

Sec.

1.c.Sec.

29.

“Cannabis sales facility” means:

1.

Commission created by section 52 of this act.annabis Advisory Sec.

30.

“Commission” means the Cannabis Advisory Commission created by section 52 of this act.

Sec.

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

Sec.

“Executive Director” means the Executive Director of the Cannabis Compliance Board appointed pursuant to section 61 of this act.

- *AB533_R1* – 8 – Sec.

- 80th Session (2019) – 8 – Sec.

1.

A medical cannabis independent testing laboratory;

A medical cannabis cultivation facility;facility;aboratory;

or Sec.4.

A medical cannabis dispensary.

Sec.

“Medical cannabis establishment license” means a license that is issued by the Board pursuant to section 91 of this establishment.orizeact to authorize the operation of a medical cannabis Sec.establishment.

Sec.

or - 80th Session (2019) – 9 – 2.

- *AB533_R1* – 9 – Sec.

“Medical edible cannabis product” means a product intendedint1.dedContains forcannabis theor medicalan useextract ofthereof; cannabis that:

1.

Contains cannabis or an extract thereof;

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

Sec.

“Production” has the meaning ascribed to it in NRSSec.NRS 453.131.

49.

“Registrant” means the holder of a registration card.

49.

“Registrant” means the holder of a registration carSec.

- 80th Session (2019) – 10 – (b) The Director of the Department of Public Safety;

- *AB533_R1* – 10 – (e) Eight members appointed by the Governor as follows:

(3) One member who possesses knowledge, skill and experi(4) One member who possesses knowledge, skill and experience in laboratorythe sciencesmanufacturing andof toxicology;cannabis products;

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

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

and (8) One member who is an attorney licensed to practice in this State and experienced in providing legal services to cannabis establishments or patients who engage in the medical use of can2.biEach appointed member of the Commission serves a term of 2 years.

Each member of the Commission is entitled to receive a salary of not more than $80, as fixed by the Cannabis Compliance - 80th Session (2019) – 11 – Board, for each day or portion thereof during which the member is in attendance at a regularly called meeting of the Commission.

A majority of the members of the - *AB533_R1* – 11 – Commission constitutes a quorum, and a quorum may exercise all the powers conferred on the Commission.

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

Sec.

1.1.ion.The Commission shall:

The Commission shall:

and (e) Study the feasibility of the use of emerging technologies, including, without limitation, blockchain and systems that use a andsingle effectivelysource handlingof transactionstruth, electronicallyas toa reducemeans ortlyof collecting data or efficiently eliminate the handling of cash.cash.ctions electronically to reduce or 2.

The Chair of the Commission may appoint:

(b) A subcommittee on public safety and community mitigation to review and make recommendations on matters relating to the - 80th Session (2019) – 12 – effects of cannabis on law enforcement, property, businesses and consumers.

- *AB533_R1* – 12 – (d) A subcommittee on market participation to review and make recommendations on matters relating to the participation of women-owned businesses, minority-owned businesses, veteran- owned businesses and local agriculture in the cannabis industry in this State.

(4) Identify the extent of the unlicensed sale of cannabis and cannabis products in this State, including, without limitation, the number of operations engaging in the unlicensed sale of cannabisused andto cannabisengage productsin such sales;s and the most common methods used(5) t(5) Examine any other issues relating to the unlicensed sale of cannabis or cannabis products that the Commission determines to be (6)appropriate; Make recommendations for efficiently and effectively closing any gaps in legal authority or enforcement identified by the subcommittee.

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

- 80th Session (2019) – 13 – (1) One member recommended by the governing body of the Nevada League of Cities;

In addition to any member of the Commission appointed to a subcommittee created - *AB533_R1* – 13 – pursuant to this paragraph, the Chair of the Commission shall appoint to the subcommittee one member who serves on an shall advisory committee for laboratories established by the Board to provide recommendations regarding the testing of cannabis.

Not more than three of the five members of the Board may be of4. the same political party.

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

It5. is the intention of the Legislature that the Board be composed of the most qualified persons available.

(a)One Bemember a certified public accountant certified or licensed by this State or another state of the UnitedBoard Statesmust: or a public accountant chapter 628 of NRS, have 5 years of progressively responsibleof experience in general accounting and have a comprehensive knowledge of the principles and practices of corporate finance;

(a) Be a certified public accountant certified or licensed by this State or another state of the United States or a public accountant qualified to practice public accounting under the provisions of chapter 628 of NRS, have 5 years of progressively responsible experience in general accounting and have a comprehensive knowledge of the principles and practices of corporate finance;

- 80th Session (2019) – 14 – 6.

9.pursuant to chapter 630 or 633 of NRS and have knowledge, skill and experience in the area of public health or be a psychologist, clinical professional counselor, alcohol and drug abuse counselor or social worker with knowledge, skill and experience in the area of education and prevention of abuse relating to cannabis.

One member of the Board must be a physician licensed pursuant to chapter 630 or 633 of NRS and have knowledge, skill and experience in the area of public health or be a psychologist, clinical professional counselor, alcohol and drug abuse counselor - *AB533_R1* – 14 – or social worker with knowledge, skill and experience in the area of education and prevention of abuse relating to cannabis.

and (b) A public hearing before the Governor is held upon the charges, ifThe requestedrequest byfor thea public hearing must be made within 10 days after service upon such member charged.of the charges.

 The request for a public hearing must be made within 10 days after service upon such member of the charges.

(a) A member of any political convention.

business2. or organization holding a license under this title or doing business with any person or organization holding a license or registration card under this title.

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

- 80th Session (2019) – 15 – 3.

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

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

Sec.

- *AB533_R1* – 15 – 2.

(a) Is appointed by the Board and may be removed by the Board;

Is appointed by the Board and may be removed by the (b) Is responsible for the conduct of the administrative matters of the Board;

the3. amount specified by the Board within the limits of legislative appropriations or authorizations.

approvalThe ofExecutive the Board:Executive Director may,is subjectentitled to thean (a)annual Establish,salary andin fromthe timeamount tospecified timeby alter,the suchBoard awithin planthe limits of organizationlegislative asappropriations he or sheauthorizations. may deem expedient.

Sec.

62.

1.

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

- 80th Session (2019) – 16 – (a) Establish, and from time to time alter, such a plan of organization as he or she may deem expedient.

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

To this end, the Executive Director may establish - *AB533_R1* – 16 – such organizational units within the Board as he or she deems necessary.

Any person assigned to a station, office or location as provided in subsection 5 shall be entitled to receive a per diem allowance only when the business of the Board takes the person awayshe fromis theassigned.rticular particular station, office or location to which he or she7. is assigned.

7.

In addition to any other powers granted by this title, the1.oarEnterthe intoBoard interlocalhas agreementsthe pursuantpower toto: NRS 277.080 to 277.180, inclusive.

including,1. without limitation, organizations of divisions oroard, sections with leaders for such divisions or sections.

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

- 80th Session (2019) – 17 – 2.

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

6.bulletins and other materials as the Board deems appropriate., 7.

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

7.

- *AB533_R1* – 17 – (a) Financial requirements for licensees.

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

Such a restriction of- the80th BoardSession before(2019) using– a18 logo,– signmust ornot advertisement.approvalrequire (g)a Provisionscannabis governingestablishment to obtain the salesapproval of productsthe andBoard 557.160,before orusing containinga cannabidiollogo, bysign cannabisor establishments.advertisement.

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

(a) Owner and manager of a cannabis establishment.

and - *AB533_R1* – 18 – (c) Satisfies requirements for the number of employees and annual gross revenue established by the Board by regulation.

(1) Posted on the Internet website of the Board;

and - 80th Session (2019) – 19 – (3) Either the express terms or an informative summary of the proposed action.

(c) On the date and at the time and place designated in the notice, the Board shall afford any interested person or his or her authorized representative, or both, the opportunity to present her statements, arguments or contentions in writing, with or without relevantopportunity matter presented to itpresent beforethem adopting,orally. amending or all repealing any regulation.

(d)The AnyBoard interestedshall personconsider mayall filerelevant amatter petitionpresented withto theit Boardbefore requestingadopting, theamending adoption, amendment or repealrepealing ofany a regulation.

requesting the adoption, amendment or repeal of a regulation.

- *AB533_R1* – 19 – (1) A written finding that such action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare;

(b) The Governor endorses the written finding and written statement described in paragraph (a) by written endorsement at the end of the full text of the written statement and writtenwrittent finding;

The adoption, amendment or repeal of a regulation by the Board - 80th Session (2019) – 20 – becomes effective upon filing with the Secretary of State.

The Board shall not file a regulation with the Secretary of State until 15 days after the date on which the regulation was adopted, ame5.edUpon the request of a Legislator, the Legislative Commission may examine a regulation adopted, amended or subsectionrepealed 4by to determine whether the regulationBoard. conforms to the statutory authority pursuant to which it was adopted and whether the regulation carries out the intent of the Legislature in granting that authority.

6.5.

Upon the request of a Legislator, the Legislative Commission may examine a regulation adopted, amended or repealed by the Board that is not yet effective pursuant to subsection 4 to determine whether the regulation conforms to the statutory authority pursuant to which it was adopted and whether that authority.carries out the intent of the Legislature in granting 6.

Upon receipt of such a notice, the - *AB533_R1* – 20 – Legislative Counsel shall refer the regulation for review by the Subcommittee to Review Regulations as soon as practicable.

If the Legislative Commission, or the Subcommittee to Review Regulations if the regulation was referred to the Subcommittee, approves the regulation, the Legislative Counsel shall notify the Board that the Board may file the regulation with the Secretary of State.

If the Legislative Commission or the Subcommittee to Review Regulations has objected to a regulation, the Board shall revise the regulation to conform to the statutory authority pursuant to which it was adopted and to carry out the intent of the - 80th Session (2019) – 21 – Legislature in granting that authority and return it to the Legislative Counsel within 60 days after the Board received the written notice of the objection to the regulation pursuant to subsection 8.

Upon receipt of the revised regulation, the Legislative Counsel shall resubmit the regulation to the Legislative Commission or the Subcommittee approvesfor thereview. revised regulation, the Legislative Counsel shall notify the Board that the Board may fil10.

If the Legislative Commission or the Subcommittee toapproves Review Regulations objects to the revised regulation, the Legislative Counsel shall attachnotify to the revisedBoard regulationthat a written notice of the objection,Board including,may iffile practicable, a statement of the reasons for the objection, and shall promptly return the revised regulation towith the Board.Secretary of State.

Review Regulations objects to the revised regulation, theto Legislative Counsel shall attach to the revised regulation a written notice of the objection, including, if practicable, a statement of the reasons for the objection, and shall promptly return the revised regulation to the Board.

Any and all information and data prepared or obtained by the Board or by an agent or employee of the Board relating to a holder of or an applicant for a medical cannabis establishment license pursuant to section 91 of this act, other than the name of a licensee and each owner, officer and board member of the licensee and information relating to the scoring and ranking of - *AB533_R1* – 21 – applications and the imposition of disciplinary action, are confidential and may be revealed in whole or in part only in the course of the necessary administration of this title or upon the lawful order of a court of competent jurisdiction.

Except as otherwise provided in this subsection, any information and data included in an application for an adult-use cannabis establishment license or a registration card is confidential and may be revealed in whole or in part only in the course of the necessary administration of this title or upon the - 80th Session (2019) – 22 – lawful order of a court of competent jurisdiction.

The Board may reveal such information and data to an authorized agent of any agency of the United States Government, any state or any political subdivision of a state or the government of any foreign country.

Notwithstanding any other provision of state law, suchspecific informationauthorization and data may not be otherwise revealed without the Board.uthorization by the Board pursuant to the regulations of 4.the Board.

4.

As often as the Board deems necessary, the Board shall conduct a financial or operational audit of the accounts, funds, programs, activities and functions of all -Department *AB533_R1*of –Taxation 22shall –conduct a tax audit of all licensees.

As often as the Department deems necessary, the Department of Taxation shall conduct a tax audit of all licensees.

- 80th Session (2019) – 23 – 4.

On or before April 1 of each year, the Board and the Department of Taxation shall submit to the Director of the Legislativeconducted Counselpursuant Bureauto athis reportsection concerningfor the audits report must include, without limitation:he preceding year.

The (a)report Themust numberinclude, ofwithout auditslimitation: performed pursuant to this section in the(b) A summary of the findings of the audits;

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

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

The Executive Director shall review each such complaint and, if the Executive Director finds the complaint not to be frivolous, may transmit the details of the suspected violation, along with any - *AB533_R1* – 23 – further facts or information derived from the review of the complaint to the Attorney General.

If the Executive Director transmits the details of a suspected violation to the Attorney General pursuant to section 68 of this act, the Attorney General shall conduct an investigation of the suspected violation to determine whether it warrants proceedings for disciplinary action of the licensee or registrant.

If the Attorney General determines that further proceedings are - 80th Session (2019) – 24 – warranted, he or she shall report the results of the investigation together with a recommendation to the Executive Director in a manner which does not violate the right of the person charged in the complaint to due process in any later hearing on the complaint.

The Board shall promptly make a determination with respect to each complaint resulting in an investigation by the AttorneyAtt(a) General.Dismiss the complaint;

Theorl: Board shall:

(a)(b) DismissProceed with appropriate disciplinary action in accordance with sections 70 to 78, inclusive, of this act and the complaint;regulations adopted by the Board.

orSec. with sections 70 to 78, inclusive, of this act and the regulations adopted by the Board.

pursuant70. to section 69 of this act, the Board shall serve aon complaint upon the respondent either personally, or by registered or certified mail at the address of the respondent that is on file with the Board.

1.

If the Board proceeds with disciplinary action pursuant to section 69 of this act, the Board shall serve a complaint upon the respondent either personally, or by registered or certified mail at the address of the respondent that is on file with the Board.

In the answer the respondent:res(a) Must state in short and plain terms the defenses to each claim asserted.

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

- *AB533_R1* – 24 – (c) Must state which allegations the respondent is without knowledge or information to form a belief as to their truth.

- 80th Session (2019) – 25 – 3.

The Board shall determine the time and place of the hearing as soon as is reasonably practical after receiving the respondent’sor answer.certified mail a notice of hearing to all parties at least 10 days before the hearing.

The Boardhearing shallmust deliverbe orheld sendwithin by45 registereddays orafter certifiedreceiving mailthe arespondent’s noticeanswer ofunless an expedited hearing is determined to allbe partiesappropriate atby leastthe 10Board, daysin beforewhich event the hearing.hearing must be held as soon as practicable.

TheSec. hearing must be held within 45 days after receiving the respondent’s answer unless an expedited hearing is determined to be appropriate by the Board, in which event the heaSec.

1.e1. heBefore a hearing before the Board, and during a hearing upon reasonable cause shown, the Board shall issue All witnesses appearing pursuant to subpoena, other than parties, officers or employees of the State of Nevada or any political subdivision thereof, are entitled to receive fees and mileage in the same amounts and under the same circumstances as provided by law for witnesses in civil actions in the district courts.

WitnessesBefore entitleda tohearing feesbefore orthe mileageBoard, whoand attendduring hearingsa athearing pointsupon soreasonable farcause removedshown, fromthe theirBoard residencesshall asissue tosubpoenas prohibit return thereto from day to day are entitled, in addition to witness fees and insubpoenas lieuduces oftecum mileage,at to the perrequest diem compensation for subsistence and transportation authorized for state officers and employees for each day of actuala attendanceparty. and for each day necessarily occupied in traveling to and from the hearings.

Fees,All subsistencewitnesses andappearing transportationpursuant expensesto mustsubpoena, beother paidthan byparties, officers or employees of the partyState atof whoseNevada requestor any political subdivision thereof, are entitled to receive fees and mileage in the witnesssame isamounts subpoenaed.and under the same circumstances as provided by law for witnesses in civil actions in the district courts.

Witnesses entitled to fees or mileage who attend hearings at points so far removed from their residences as to prohibit return thereto from day to day are entitled, in addition to witness fees and in lieu of mileage, to the per diem compensation for subsistence and transportation authorized for state officers and employees for each day of actual attendance and for each day necessarily occupied in transportation expenses must be paid by the party at whose request the witness is subpoenaed.

- *AB533_R1* – 25 – Sec.

- 80th Session (2019) – 26 – (3) Cross-examine opposing witnesses on any matters relevant to the issues of the case, even though the matter was not covered in a direct examination;

(d) The hearing need not be conducted according to technical rules relating to evidence and witnesses.

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

accepted2. information or technical or scientific matter within the field of cannabis, and of any other fact which may be judicially noticed by the courts of this State.

The Board may take official notice of any generally accepted information or technical or scientific matter within the field of cannabis, and of any other fact which may be judicially noticed by the courts of this State.

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

Affidavits(b) mayUnless bethe receivedopposing inparty, evidencewithin at7 anydays hearingafter ofsuch service, mails or delivers to the Boardproponent a request to cross-examine the affiant, the opposing party’s right to cross-examine the affiant is waived and the affidavit, if introduced in accordanceevidence, withmust be given the following:same effect as if the affiant had testified orally.

(a)If Thean partyopportunity wishing to usecross-examine an affidavitaffiant must,is not lessafforded thanafter 10request daystherefor beforeis themade dayin setaccordance forwith hearing,this serveparagraph, upon the opposing- party80th orSession counsel,(2019) either– personally27 or– byaffidavit registeredmay orbe certifiedintroduced mail,in aevidence, copybut ofmust thebe affidavitgiven whichonly the partysame proposeseffect to introduce in evidence together with a notice as providedother inhearsay paragraphevidence. (c).

(b) Unless the opposing party, within 7 days after such service, mails or delivers to the proponent a request to cross-examine the affiant, the opposing party’s right to cross-examine the affiant is - *AB533_R1* – 26 – waived and the affidavit, if introduced in evidence, must be given the same effect as if the affiant had testified orally.

If an opportunity to cross-examine an affiant is not afforded after request therefor is made in accordance with this paragraph, the affidavit may be introduced in evidence, but must be given only the same effect as other hearsay evidence.

of the year …… (Here insert name of affiant) will not be called to testify orally and you will not be entitled to question (here insert name of affiant) unless you notify the undersigned that you wish to cross-examine (here insert name of affiant).

(Address) Sec.

every1. hearing, and they shall exercise all powers relating to the conduct of the hearing and shall enforce all decisions with respect thereto.

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

After the Board has initiated a hearing pursuant to section 70 of this act, the members of the Board shall not communicate, directly or indirectly, in connection with any issue of fact, with any person or party, nor, in connection with any issue of law, with any party or the party’s representative, except upon notice and opportunity to all parties to participate.

If any person in proceedings before the Board disobeys or resists any lawful order or refuses to respond to a subpoena, or refuses to take the oath or affirmation as a witness - *AB533_R1* – 27 – or thereafter refuses to be examined, or is guilty of misconduct during the hearing or so near the place thereof as to obstruct the - 80th Session (2019) – 28 – proceeding, the Board may certify the facts to the district court in and for the county where the proceedings are held.

Thereafter the court has jurisdiction of the matter, and the same proceedings must be had, the same penalties may be imposed and the person charged may purge himself or herself of the contempt in the same way as in the case of a person who has committed a contempt in the trial of a civil action before a district court.court.ontempt in Sec.

Sec.

The decision is effective upo2.sucThe Board may, upon motionsuch madeservice, withinunless 10 days after service of a decision and order, order a rehearing before the properBoard iforders aotherwise. petition for judicial review of the decision and order has not been filed.

The2. motion must not be granted except upon a showing that there is additional evidence which is material and necessary and reasonably calculated to change the decision of the Board, and that sufficient reason existed for failure to present the evidence at the hearing of the Board.

The Board may, upon motion mustmade bewithin supported10 bydays anafter affidavitservice of thea movingdecision partyand ororder, hisorder ora herrehearing counselbefore showingthe withBoard particularityupon thesuch materialityterms and necessityconditions ofas theit additionalmay evidencedeem just and theproper reasonif whya itpetition wasfor notjudicial introducedreview atof the hearing.decision and order has not been filed.

The motion must not be granted except upon a showing that there is additional evidence which is material and necessary and reasonably calculated to change the decision of the evidence at the hearing of the Board.

The motion must be present the supported by an affidavit of the moving party or his or her counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced at the hearing.

- *AB533_R1*80th Session (2019) – 2829 – 1.

Any person aggrieved by a final decision or order of the Board made after hearing or rehearing by the Board pursuant to sections 70 to 78, inclusive, of this act and whether or not a motion for rehearing was filed, may obtain a judicial review thereof in the district court of the county in which the petitioner residesres2.es orThe hasjudicial his,review hermust orbe itsinstituted principalby placefiling a petition within 20 days after the effective date of business.the final decision or order.

2.

The judicial review must be instituted by filing a petition within 20 days after the effective date of the final decision or order.

decision5. or order of the Board, but the Board itself may grant athe stay upon such terms and conditions as it deems proper.

completeThe recordfiling onof review,the orpetition suchdoes partsnot thereofstay asenforcement areof designatedthe bydecision theor petitioner,order mustof bethe preparedBoard, bybut the Board.Board itself may grant a stay upon such terms and conditions as it deems proper.

2.Sec.

The80. complete record on review must include copies of:

(a)1. All pleadings in the case;

Upon written request of the petitioner, the complete record on review, or such parts thereof as are designated by the petitioner, must be prepared by the Board.

(a) All pleadings in the case;view must include copies of:

- 80th Session (2019) – 30 – 3.

The record on review must be filed with the reviewing court within 30 days after service of the petition for review, but the - *AB533_R1* – 29 – court may allow the Board additional time to prepare and transmit the record on review.

The motion must not be granted except upon a showing that the additional evidence is material and necessary and that sufficient reason existed for failure to present the evidence at the hearing of the Board.

The motion must be supported by anandence at the affidavit of the moving party or his or her counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced in the administrative hearing.

The filing of briefs and oral argument must be made in accordance with the rules governing appeals in civil cases unless differentthe procedure.racticelocal rules of practice adopted in the judicial district provide a 3.different procedure.

The3. reviewing court may affirm the decision and order of reverse the decision if the substantial rights of the petitioner have been prejudiced because the decision is:

The reviewing court may affirm the decision and order of the Board, or it may remand the case for further proceedings or been prejudiced because the decision is:rights of the petitioner have (a) In violation of constitutional provisions;

Any party aggrieved by the final decision in the district court after a review of the decision and order of the Board may appeal to the appellate court of competent jurisdiction pursuant to the rules fixed by the Supreme Court pursuant to Section 4 of Article 6 of the Nevada Constitution in the manner - 80th Session (2019) – 31 – and within the time provided by law for appeals in civil cases.

- *AB533_R1* – 30 – 2.

Judicial review is not available for actions, decisions and orders of the Board relating to the denial of a license or registration card.

ExtraordinaryExtraordinarylating to common-law writs or equitable proceedings are available except where statutory judicial review is made exclusive or is precluded, or the use of those writs or proceedings is precluded by specific statute.

“Enclosed, locked facility” means a closet, display case, room, greenhouse or other enclosed area that meets the requirements of section 153 of this act and is equipped with locks or Sec.other security devices which allow access only by a registrant.

Sec.

1.ity1. “Excluded felony offense” means a convictionant.

of“Excluded anfelony offenseoffense” thatmeans woulda constituteconviction acommitted categoryin Athis felonyState ifor convictions for two or more offenses that would constitute felonies if committed in this State.ensesState. 2.

2.

“Inventory control system” means a process, device or other contrivance that may be used to monitor the chain of - 80th Session (2019) – 32 – custody of cannabis from the point of cultivation to the end consumer.

- *AB533_R1* – 31 – Sec.

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 thisthislic State.

A person who wishes to engage in the business of a medical cannabis establishment must submit to the Board an app3.caExcept as otherwise provided in sections 92, 93 and 94 of this act, not later than 90 days after receiving an application onto engage in the business of a formmedical prescribedcannabis byestablishment, the Board.Board shall register the medical cannabis establishment and issue a medical cannabis establishment license and a random 20-digit alphanumeric identification number if:

this act, not later than 90 days after receiving an application to engage in the business of a medical cannabis establishment, the a medical cannabis establishment license and a random 20-digitsue alphanumeric identification number if:

- 80th Session (2019) – 33 – (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 - *AB533_R1* – 32 – 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;

(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 totoprints forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Invest(VI)Investigation The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the propos(3) Operating procedures consistent with rules of the Board for oversightits ofreport; the proposed medical cannabis establishment, including, without limitation:

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:

and - 80th Session (2019) – 34 – (II) The use of an electronic verification system and an inventory control system pursuant to sections 149 and 150 of this act;

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

and - *AB533_R1* – 33 – (6) Such other information as the Board may require by regulation;

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.age.d medical cannabis 4.

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.

For5. 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 History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

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 section 105 of this act and the establishment is not disqualified from being registered as a - 80th Session (2019) – 35 – medical cannabis establishment pursuant to this section or other applicable law, the Board shall issue to the establishment a medical cannabis establishment license.

6.establishment license pursuant to this section, the Board shall consider the criteria of merit set forth in section 94 of this act.

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 section 94 of this act.

For the purposes of sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, the distance - *AB533_R1* – 34 – 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.

Except as otherwise provided in this section and section 93 of this act, the Board shall issue medical cannabis establishment licenses for medical cannabis dispensaries in the following quantities for applicants who qualify pursuant to section 91 of this act:

(c) In a county whose population is 55,000 or more but less tha(d)than In100,000, eachtwo otherlicenses; county, one license;

and(d) (e)In For each incorporatedother citycounty, inone alicense; county whose population is les2.thaThe Board:

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

(a)2. 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 BoardBoard: 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,80th forSession any(2019) county– for36 which– no(a) applicantsShall qualifynot pursuantissue tomedical sectioncannabis 91establishment oflicenses thisfor act,medical withincannabis 2dispensaries monthsin aftersuch thea endquantity ofas theto periodcause during which the Boardexistence acceptswithin applicationsthe pursuantapplicable tocounty section 101 of thismore act,than reallocateone themedical licensescannabis provideddispensary for thatevery -10 *AB533_R1*pharmacies –that 35have –been countylicensed pursuant to subsection 1 to the other counties specified in subsection 1 in the samecounty proportionpursuant asto providedchapter in639 subsectionof 1.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 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 section 91 of this act, within 2 months after the end of the period during which the Board accepts applications pursuant to section 101 of this act, 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.

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 establishmentsestSec. in each county.

Sec.

Exceptin eExcept 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 section 92 of this act, are located in any one local governmental jurisdiction within the county.

in2. 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:

(b)To Moremedithancan10bipercentlisofentheicemedicalprevent cannabismonopolistic establishmentpractices, licensesthe otherwiseBoard allocableshall 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 county.greater of:

- 80th Session (2019) – 37 – (a) One medical cannabis establishment license;

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

SuchSuc(a) criteriaWhether mustthe include,applicant withoutcontrols limitation: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;

(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;

- *AB533_R1* – 36 – (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;

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

(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 - 80th Session (2019) – 38 – underrepresented as owners, officers or board members of medical cannabis establishments;

and relevant.y(j) Any other criteria of merit that the Board determines to be 2.relevant.

2.

The Board may request information from a local government regarding any inspection or review of a cannabis establishment by the local government.

- *AB533_R1* – 37 – 3.

(2) An(I) application,The whichlegal mustname include:of the proposed adult-use cannabis establishment;

(I)(II) The legalphysical nameaddress 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;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 - 80th Session (2019) – 39 – 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;

(II)(III) TheEvidence physicalthat address where the proposedapplicant adult-usecontrols cannabisliquid establishmentassets willin bean locatedamount anddetermined theby physical address of any co-owned additional or otherwise associated adult-use cannabis establishments, the locationsBoard ofto which may not be withinsufficient 1,000to feetcover of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the dateinitial onexpenses whichof theopening application for the proposed adult-use cannabis establishmentestablish(IV) wasEvidence submittedthat to the Board,applicant withinowns 300 feet of a community facility that existed on the dateproperty 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 an establishment that holds a nonrestricted gaming licenseeet of described in subsection 1 or 2has of NRS 463.0177 and that existed cannabis establishment was submitted to the Board;sedwritten adult-usepermission (III)of Evidence that the applicantproperty controlsowner liquid assets in an amount determined by the Board to beoperate sufficient to cover the initial expenses of opening the proposed adult-use cannabis establishment andon complyingthat withproperty; 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;

and - *AB533_R1* – 38 – (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;

(I) Procedures to ensure the use of adequate security measures;measures;(II) The use of an inventory control system;

and (II) The use of an inventory control system;

- 80th Session (2019) – 40 – (1) Served as an owner, officer or board member for a cannabis establishment that has had its adult-use cannabis revoked;hmentestablishment license or medical cannabis establishment license (2)revoked; Previously had a cannabis establishment agent regist(3) Previouslyvohad;

oa(2) 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(3) membersPreviously ofhad thea proposed adult-use cannabis establishment areagent underregistration 21card yearsfor ofa age.cannabis executive revoked;

and (d) None of the persons who are proposed to be owners, establishment are under 21 years of age.d adult-use cannabis 4.

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 section 105 of this act and is not disqualified from being licensed pursuant to this section or other applicable law, the Board shall issue to the - *AB533_R1* – 39 – applicant an adult-use cannabis establishment license.

and (b)act.b) Payment of the renewal fee set forth in section 107 of this act.6.

6.

- 80th Session (2019) – 41 – (d) A public swimming pool.

used(f) forA religiouschurch, worshipsynagogue or other religiousbuilding, purpose.estructure or place Sec.used for religious worship or other religious purpose.

Sec.

Except as otherwise provided in this section and section 98 of this act, the Board shall issue adult-use cannabis establishment licenses for the operation of adult-use cannabisiscannabis retailpursuant storesto insection the96 followingof quantitiesthis act:tities for applicants who qualify pursuant(a) toIn sectiona 96county ofwhose thispopulation act:is 700,000 or more, 80 licenses;

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

- *AB533_R1* – 40 – Sec.

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 oneone1.ersOne person,adult-use groupcannabis ofestablishment personslicense; or entity, the greater of:

1.

One adult-use cannabis establishment license;

- 80th Session (2019) – 42 – (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 adult-use cannabis establishment;r board members of the proposed (d)to Whetherbe theowners, applicantofficers hasor anboard integratedmembers plan for the care, qua(e) The experience of key personnel that the applicantproposed intends to employ in operating the type of adult-use cannabis establishmentestablishment; for which the applicant seeks a license;

quality and safekeeping of cannabis from seed to sale;r the care, (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;

Except as otherwise provided in this section and subsection 3 of section 92 of this act, the Board shall not, for more - *AB533_R1* – 41 – than a total of 10 business days in any 1 calendar year, accept applications to operate a cannabis establishment.

- 80th Session (2019) – 43 – (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;

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

Sec.

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.

(c) A statement signed by the prospective cannabis had a cannabis establishment agent assertingregistration thatcard herevoked;ly or(d) sheA hascomplete notset previouslyof hadthe afingerprints and written permission of the prospective cannabis establishment agent registrationauthorizing cardthe revoked;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) A complete set of the fingerprints and written permission of the prospective cannabis establishment agent authorizing the - *AB533_R1* – 42 – 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;

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 - 80th Session (2019) – 44 – 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.

(b) The name, address and date of birth of each employee of the prospective cannabis establishment agent who will provideprovidef 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 can(d) A instatementce signedhe byovtheonsprospectivetlcannabis establishment agent asserting that it has not previously had a cannabis establishmentin agentaccordance registrationwith cardthe revokedprovisions and that none of itsthis employeestitle; who will provide labor as a cannabis establishment agent have previously had a cannabis establishment agent registration card revoked;

(e)(d) A completestatement setsigned ofby the fingerprints of each employee of the prospective cannabis establishment agent whoasserting willthat provideit laborhas asnot previously had a cannabis establishment agent andregistration writtencard permissionrevoked ofand thethat prospectivenone cannabisof establishmentits agentemployees andwho eachwill employeeprovide oflabor theas prospectivea cannabis establishment agent authorizinghave thepreviously Boardhad toa forwardcannabis theestablishment fingerprintsagent toregistration thecard Centralrevoked; Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

(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 Bureau of Investigation for its report;submission to the Federal (f) The application fee, as set forth in section 107 of this act;

- *AB533_R1* – 43 – 4.

(b) A statement signed by the prospective cannabis establishment agent pledging not to dispense or otherwise divert - 80th Session (2019) – 45 – cannabis to any person who is not authorized to possess cannabis in accordance with the provisions of this title;

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

(e)(f) AnyThe informationapplication requiredfee, byas theset Boardforth toin completesection an107 investigation into the background of thethis prospectiveact; cannabis establishment agent, including, without limitation, financial records and other information relating to the business affairs of the prospective cannabis establishment agent;

and(f)and The(g) applicationSuch fee,other information as setthe forthBoard inmay sectionrequire 107by ofregulation. this act;

(g)5. Such other information as the Board may require by reg5.atiA 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.

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.

or (c) Is not qualified, in the determination of the Board pursuant to section 105 of this act,  s7.ll The Board shall notsubmit servethe fingerprints of an applicant for registration as a cannabis establishment agent.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.

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.

The provisions of this section do not require a person who is an owner, officer or board member of a cannabis establishment - *AB533_R1* – 44 – to resubmit information already furnished to the Board at the time the establishment was licensed with the Board.

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 section 105 of this act and is not disqualified from serving as such an agent pursuant to this - 80th Session (2019) – 46 – 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 uponcard expires 2 years after the application.date of issuance and may be renewed upon:

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

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 firstnfirst card is 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 persononperson to disciplinary action by the Board.

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.

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 - *AB533_R1* – 45 – to the Board.

A temporary registration as a cannabis establishment agent expires 3045 days after the date upon which the application is received.

- 80th Session (2019) – 47 – Sec.

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

(d) Any information required by the Board to complete an investigation into the background of the applicant, including, relatingwithout tolimitation, thefinancial businessrecords affairsand ofother theinformation applicant;formationrelating (e)to Thethe applicationbusiness fee,affairs as set forth in section 107 of thisthe act;applicant;

and(f)(e) SuchThe otherapplication informationfee, as theset Boardforth mayin requiresection by107 regulation.of this act;

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

If the Board determines the applicant is qualified to receive a cannabis establishment agent registration card for a cannabis executive pursuant to section 105 of this act, the Board shall issue to the person a cannabis executive.bis establishment agent registration card for a4. cannabis executive.

4.

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 - *AB533_R1* – 46 – affidavit attesting that in the preceding year there has been no - 80th Session (2019) – 48 – change in the information previously provided to the Board which would subject the person to disciplinary action by the Board.

The burden of proving an applicant’s qualification to receive any licenselic2.se orWhen registrationdetermining cardwhether underto thisapprove chapteran isapplication ontolicant. the applicant.

2.receive a license or registration card, the Board may consider whether the applicant is:

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

and (c) In all other respects qualified to be issued a license or reg3.traAnregistration applicationcard toconsistently receivewith athe licensedeclared orpolicy registrationof cardtate.the State.

constitutes3. a request for a determination of the applicant’s general associated with a cannabis establishment.

AnyAn writtenapplication orto oralreceive ora belicense statement made in the course of an official proceeding of the Board by any member thereof or anyregistration witnesscard testifyingconstitutes undera oathrequest whichfor isa relevantdetermination to the purpose of the proceedingapplicant’s isgeneral absolutelycharacter, privilegedintegrity and doesability notto imposeparticipate liabilityor forengage defamationin, or constitutebe aassociated groundwith fora recoverycannabis inestablishment. any civil action.

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 privileged and does not impose liability for defamation orlutely constitute a ground for recovery in any civil action.

- 80th Session (2019) – 49 – 6.

The Board shall, to the greatest extent practicable, ensure that persons who have been adversely affected by cannabis - *AB533_R1* – 47 – prohibition have equal opportunity to obtain licenses and registration cards and to participate in the cannabis industry in this State.

(a) To broaden the opportunity for investment in the cannabis industry through the pooling of capital in the form of a business entity.ent(b) To maintain effective control over cannabis establishments operated by licensees that are business entities.

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

(a) The policy of this State set forth in subsection 1 and section 3 of this act.

theSec. Board shall collect not more than the following maximum2, fees:

For107. 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 - *AB533_R1* – 48 – 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 cannabis production facility......................................3,300 For the initial issuance of an adult-use 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 - *AB533_R1* – 49 – 2.

1.

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

For 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 - 80th Session (2019) – 50 – 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 For the renewal of a medical cannabis...........................................5,000 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 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 - 80th Session (2019) – 51 – 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.

(a) Include the social security number of the applicant in the applicationapp(b) submittedSubmit to the Board.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.

(b)The Submit to the Board the statement prescribedmust bybe thecompleted Division of Welfare and Supportivesigned Servicesby of the Departmentapplicant. of Health and Human Services pursuant to NRS 425.520.

The2. sta2.menThe Board shall include the statement required pursuant to subsection 1 in:

forThe theBoard issuanceshall orinclude renewalthe ofstatement therequired licensepursuant orto registrationsubsection card;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 - 80th Session (2019) – 52 – (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.

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 owedowedic pursuant to the order, the Board shall advise the applicant to - *AB533_R1* – 50 – contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

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 whosewhoseey or other 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.

adoptedSec. by the Board pursuant to subsection 2, the following are nontransferable:

110.

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.

- 80th Session (2019) – 53 – 2.

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

ororation of the acts described in (d) Performs any other criminal offense in which the possession, delivery or production of cannabis is an element, - *AB533_R1* – 51 –  is exempt from state prosecution for the offense.

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 locationlocationion if has been approved by the local government.

The operating documents of a cannabis est(a)establishment Formust theinclude oversightprocedures: of the cannabis establishment;

(a) For the oversight of the cannabis establishment;

establishment:2.

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

(a) That is a cannabis sales facility must have a single entrance for patrons, which must be secure, and shall implement - 80th Session (2019) – 54 – strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

 The provisions of this subsection do not supersede any state or local requirements relating to minimum numbers of points of entry or exit, or any state or local requirements relating to fire safety.saf3.y.Except as otherwise provided in section 182 of this act, 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.

3.

Except as otherwise provided in section 182 of this act, 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 - *AB533_R1* – 52 – facility.

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

Each medical cannabis establishment and adult-use cannabis establishment shall install a video monitoring system which must, at a minimum:

sell7. cannabis or cannabis products from a vending machine orise allow such a vending machine to be installed at the interior or this subsection, “vending machine” has the meaning ascribed to itn in NRS 209.229.

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 - 80th Session (2019) – 55 – this subsection, “vending machine” has the meaning ascribed to it in NRS 209.229.

(1) As cannabis or medical cannabis with the words “THIS IS A MEDICAL CANNABIS PRODUCT” or “THIS IS A CANNABISCANNAB(2) PRODUCT,”As asrequired applicable,by inthe boldprovisions type;of this chapter, the chapter consisting of sections 125 to 171, inclusive, of this act and the chapter consisting of sections 173 to 187, inclusive, of this act.

and (2) As required by the provisions of this chapter, the chapter consisting of sections 125 to 171, inclusive, of this act and the chapter consisting of sections 173 to 187, inclusive, of this act.

- *AB533_R1* – 53 – (c) Are regulated and sold on the basis of the concentration of THC in the products and not by weight.

(g)2.) AreAA cannabis production facility shall not labeledproduce orcannabis marketedproducts asin candy.any form that:

2.

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

(d) Is made by applying concentrated cannabis, as defined in NRS 453.042, to a commercially available candy or snack food ite3.otAitem cannabisother productionthan facilitydried shall:.fruit, nuts or granola.

(a)3. Seal any cannabis product that consists of cookies or bro(b) Affix a label to each cannabis product which includest.

withoutA limitation,cannabis inproduction afacility mannershall: which must not mislead consumers, the following information:

- 80th Session (2019) – 56 – (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:

(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.

A cannabis establishment shall not engage in advertising that in any way makes cannabis or cannabis products appeal to - *AB533_R1* – 54 – children, including without limitation, advertising which uses an image of a cartoon character, mascot, action figure, balloon, fruit or toy.

(a) Include a written notification with each sale of cannabis or cannab(1) To keep cannabis and cannabis products whichout advisesof the purchaser:reach of children;

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

(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, - 80th Session (2019) – 57 – then wait at least 120 minutes before ingesting any additional amount(5)amount Thatof pregnantthe womenproduct; should consult with a physician before ingesting cannabis or cannabis products;

alcohol(5) orThat otherpregnant drugs,women including prescription medication, may result in unpredictable levels of impairment and that a person should consult with a physician before doingingesting so;cannabis or cannabis products;

(7)(6) That ingesting cannabis or cannabis products canwith impairalcohol concentration,or coordinationother anddrugs, judgmentincluding andprescription amedication, personmay shouldresult notin operateunpredictable alevels motorof vehicleimpairment whileand underthat thea influenceperson ofshould cannabisconsult orwith cannabisa products;physician before doing so;

(7) That cannabis or cannabis products can impair not operate a motor vehicle while under the influence of cannabis or cannabis products;

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 - *AB533_R1* – 55 – 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.

10.provisions of this title, a cannabis sales facility may sell:

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

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, - 80th Session (2019) – 58 –  unless the person holds an adult-use cannabis establishment license or a medical cannabis establishment license.

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

Sec.

The Board shall establish standards for and cer(a)certify Testone cannabisor formore adultcannabis useindependent andtesting adult-uselaboratories cannabisries to:

(a) Test cannabis for adult use and adult-use cannabis pro(b) Test cannabis for medical use and medical 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;

- *AB533_R1* – 56 – (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 cannabiscannabisd and cannabis products.

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

The Board may establish a program to ensure the integrity of all testing performed by a cannabis independent - 80th Session (2019) – 59 – testing laboratory by subjecting each such laboratory to random laboratory assurance checks.

(a) Collect samples of cannabis or cannabis products from cannabis establishments that have already been tested by cannabis independentthe Board;t testing laboratories in amounts deemed sufficient by the(b)(b) Remove identifying characteristics from and randomize such samples;

and - *AB533_R1* – 57 – (c) Such other quality assurance tests that the Board may require.req5.reIf the Board establishes a program pursuant to subsection 1, the Board shall adopt regulations necessary to carry out the program.

5.

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

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 - 80th Session (2019) – 60 – tests upon a sample if required by the Board under the program established pursuant to subsection 1.

Sec.Secs.

119.119-121.

120.

(Deleted by amendment.) Sec.

121.

(Deleted by amendment.) Sec.

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 registrationthe card,actions shallor beconduct deemedpermitted unenforceablepursuant onto the basislicense oris that registration card are prohibited by federal law.

license or Sec.

- *AB533_R1* – 58 – 3.

Set forth rules pertaining to the safe and healthful operation of cannabis establishments, including, without limitation:lim(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 sections 133 and 132 of this act, respectively;

(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 sections 133 and 132 of this act, respectively;

and - 80th Session (2019) – 61 – (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 industrial 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;

the4. maximum fees set forth in section 107 of this act may behich reduced over time to ensure that the fees imposed pursuant to neutral;107 of this act are, insofar as may be practicable, revenue 5.

Establish circumstances and procedures pursuant to which the maximum fees set forth in section 107 of this act may be section 107 of this act are, insofar as may be practicable, revenue neutral;

5.

Determine whether any provision of this chapter, the chapter consisting of sections 125 to 171, inclusive, of this act or the chapter consisting of sections 173 to 187, inclusive, of this act - *AB533_R1* – 59 – would make the operation of a cannabis establishment by a dual licensee unreasonably impracticable;

andandstablishment by a dual 9.

- 80th Session (2019) – 62 – 1.

1.2.

AcquiredAn immuneanxiety deficiencydisorder;ciency syndrome;

5.

Anorexia nervosa;

Cancer;aCancer; nervosa;

A neuropathic condition, whether or not such condition causescau12. seizures;

or 12.

- *AB533_R1* – 60 – (a) Classified as a chronic or debilitating medical condition by regulation of the Division;

and - 80th Session (2019) – 63 – (c) Is designated as such in the manner required pursuant to section 144 of this act.

“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 endendf consumer.

the Division to an applicant who is under 10 years of age pursuant to section 140 of this act which provides that the applicant is cannabis.om state prosecution for engaging in the medical use of Sec.

132.

“Letter of approval” means a document issued by the Division to an applicant who is under 10 years of age pursuant to section 140 of this act which provides that the applicant is exempt from state prosecution for engaging in the medical use of cannabis.

Sec.

(a) The dried leaves and flowers of a plant of the genus Cannabis, and any mixture or preparation thereof, that are appropriate for the medical use of cannabis or the adult use of cannabis;

andandor the medical use of cannabis or the adult use of (b) The seeds of a plant of the genus Cannabis.

- *AB533_R1* – 61 – 1.

Except as otherwise provided in this section and section 145 of this act, a person who holds a valid registry identification card issued to the person pursuant to section 140 or 144 of this act is exempt from state prosecution for: