AB 326 — Revises provisions governing cannabis. (BDR 56-641)

and (2) the adult-use cannabis establishment license number or other unique identifier or the medical cannabis establishment license number or other unique identifier of the cannabis establishment.

Section 2 authorizes a cannabis establishment that holds multiple licenses to satisfy such requirements by including in any advertising conducted by the cannabis establishment any one of the adult-use cannabis unique identifiers of the cannabis establishment.stablishment license numbers or - 81st Session (2021) – 3 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

1.2.

Chapter 678A of NRS is hereby amended by adding thereto the provisions set forth as sections 1.3 and 1.5 of this act.

Sec.

1.3.

“Cannabis establishment agent registration card for a cannabis receiver” means a registration card issued by the Board pursuant to section 1.69 of this act.

Sec.

Chapter 678A of NRS is hereby amended by adding thereto a new section to read as follows:

or (b) Manufacturers, delivers, transfers, supplies or sells cannabis products,products;  is liable for a civil penalty of not more than $50,000 to be recovered in an action brought by the district attorney or city attorney for the jurisdiction in which the violation occurred.

or (c) Advertises the sale of cannabis or cannabis products by the person,  is liable for a civil penalty of not more than $50,000 to be recovered in an action brought by the district attorney or city attorney for the jurisdiction in which the violation occurred.

1.6.

NRS 678A.010 is hereby amended to read as follows:

678A.010 As used in this title, unless the context otherwise requires, the words and terms defined in NRS 678A.020 to 678A.240, inclusive, and section 1.3 of this act have the meanings ascSec.

1.63.

NRS 678A.235 is hereby amended to read as follows:

678A.235 “Registration card” means:

1.

A cannabis establishment agent registration card;

[or] 2.

A cannabis establishment agent registration card for a cannabis executive [.] ;

or 3.

A cannabis establishment agent registration card for a cannabis receiver.

- 81st Session (2021) – 4 – Sec.

1.66.

Chapter 678B of NRS is hereby amended by adding thereto the provisions set forth as sections 1.69 and 1.7 of this act.

Sec.

1.69.

1.

In addition to the requirements set forth in NRS 678B.340, a person shall not act as a receiver for a cannabis secures a cannabis establishment agent registration card for at cannabis receiver issued by the Board.

A person who wishes to act as a receiver for a cannabis establishment subject to a receivership 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 receiver 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;

(e) Proof satisfactory to the Board that the applicant has:

(1) Experience in or knowledge of the cannabis industry;

(2) Experience as a receiver appointed by a court;

(3) The knowledge and skills necessary to make reasonable financial decisions with respect to the finances of a cannabis establ(4) Adequate financial capacity to fulfill the duties of a receiver;

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

and (g) 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 receiver pursuant to NRS 678B.200, the Board shall issue to the person a cannabis establishment agent registration card for a cannabis receiver.

4.

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

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

and - 81st Session (2021) – 5 – (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 receiver is issued or for whom such a registration card is renewed shall submit to the Board on 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.

Sec.

1.7.

The Board shall adopt regulations which prescribe procedures and requirements by which a receiver appointed by a court who has been issued a cannabis establishment agent registration card for a cannabis receiver may take possession of, manage the operations of and take any other action authorized by a court with respect to a cannabis establishment subject to a receivership.

Such regulations must, without limitation:

1.

Prescribe procedures and requirements for the management, liquidation, sale or transfer of a cannabis establishment subject to a receivership by such a receiver, including, without limitation, procedures and requirements for the transfer of a license by a receiver in accordance with the regulations adopted pursuant to NRS 678B.380;

and 2.

Require such a receiver to comply with all applicable provisions of this title and the regulations adopted pursuant thereto.

Sec.

1.73.

NRS 678B.010 is hereby amended to read as follows:

678B.010 The Legislature hereby finds and declares that:

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 [,] ;

and (e) Cannabis establishment agent registration card for a cannabis receiver issued pursuant to section 1.69 of this act,  is a revocable privilege and the holder of such a license or card, as applicable, does not acquire thereby any vested right.

- 81st Session (2021) – 6 – Sec.

1.76.

NRS 678B.210 is hereby amended to read as follows:

678B.210 1.

A person shall not engage in the business of a medical cannabis establishment unless the person holds a medical section.

establishment license issued by the Board pursuant to this 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 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;

- 81st Session (2021) – 7 – (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;

be an owner, officer or board member of the proposed medicalsed to 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 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;

- 81st Session (2021) – 8 – (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] or registration card for a cannabis receiver revoked;

andment agent (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 6.) In determining whether to issue a medical cannabis90.

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.

- 81st Session (2021) – 9 – (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 useSec.

1.79.

NRS 678B.250 is hereby amended to read as follows:

678B.250 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 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 - 81st Session (2021) – 10 – 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 proposed adult-use cannabis establishment on that property;ate the (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 reg(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] or - 81st Session (2021) – 11 – (4) Previously had a cannabis establishment agent registration card for a cannabis receiver revoked;

and (d) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment are4.ndeFor 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 from the front door of the proposed adult-use cannabist be measured 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.

- 81st Session (2021) – 12 – Sec.

1.9.

NRS 678B.380 is hereby amended to read as follows:

678B.380 1.

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

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

(c) A cannabis establishment agent registration card for a cannabis receiver.

(d) A medical cannabis establishment license.

[(d)] (e) 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.

Such regulations may give priority in the processing of transfers of licenses to a transfer in which the transferor is:

(a) Subject to a receivership;

(b) Involved in a recapitalization;

or (c) A party to a court proceeding involving financial distress.

Sec.

2.

(1) As cannabis or medical cannabis with the words “THIS IS A MEDICAL CANNABIS PRODUCT” or “THIS IS A CANNABISCANNABI(2) PRODUCT,”As asrequired applicable,by inthe boldprovisions type;of this chapter and chapters 678C and 678D of NRS.

and(b) (2)Are Asnot requiredpresented byin thepackaging provisionsthat contains an image of thisa chaptercartoon andcharacter, chaptersmascot, 678Caction andfigure, 678Dballoon or toy, except that such an item may appear in the logo of NRS.the cannabis production facility which produced the product.

(b) Are not presented in packaging that contains an image of a cartoon character, mascot, action figure, balloon or toy, except that - *AB326_R1* – 3 – such an item may appear in the logo of the cannabis production facility which produced the product.

(f) Are labeled in a manner which indicates the amount of THC in the product, measured in milligrams, and includes a statement - 81st Session (2021) – 13 – that the product contains cannabis and its potency was tested with an allowable variance of the amount determined by the Board by regulation.

2.products in any form that:ion facility shall not produce cannabis (a) Is or appears to be a lollipop.

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

(a) Is or appears to be a lollipop.

(c) Maintain a hand washing area with hot water, soap and disposable towels which is located away from any area in which can(d) Require each person who handles cannabis products areto cookedrestrain his or otherwiseher prepared.hair, wear clean clothing and keep his or her fingernails neatly trimmed.

(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.

- *AB326_R1* – 4 – 4.

- 81st Session (2021) – 14 – (a) Include a written notification with each sale of cannabis or cannabis products which advises the purchaser:

(2)children;) 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;

(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;

and (8) That ingestion of any amount of cannabis or cannabis products before driving mayunder resultthe influence.result in criminal prosecution for driving(b) underEnclose theall influence.cannabis and cannabis products in opaque, child- resistant packaging upon sale.

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

If the health authority, as defined in NRS 446.050, where a cannabis production facility or cannabis sales facility which sells - *AB326_R1* – 5 – 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.

- 81st Session (2021) – 15 – 10.

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

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

(1) Within 1,000 feet of a public or private school, playground, public park or library, but may maintain such an advertisement if it was initially placed before the school, playground, public park or library was located within 1,000 feet of the location of the advertisement;

or - *AB326_R1* – 6 – (4) At an entertainment event if it is reasonably estimated that 30 percent or more of the persons who will attend that event are less than 21 years of age.

- 81st Session (2021) – 16 – (e) Shall ensure that all advertising by the cannabis establishment contains such warnings as may be prescribed by the Board, which must include, without limitation, the following words:

and (2) “For use only by adults 21 years of age and older.” (f) Shall ensure that all advertising by the cannabiscannabisder.” establishment contain:contains:

and (2) TheExcept as otherwise provided in subsection 12, the adult-use cannabis establishment license number or medical cannabis establishment license number of the cannabis establishment or any other unique identifier assigned to the cannabis establishment by the Board.

NothingA incannabis subsectionestablishment 11that shallholds bemore construedthan toone prohibitlicense amay localsatisfy government,the pursuantrequirement toset chapterforth 244,in 268subparagraph or(2) 278 of NRS,paragraph from(f) adoptingof ansubsection ordinance11 forif the regulationcannabis ofestablishment advertisingincludes relatingin toall cannabisadvertising whichconducted isby more restrictive than the provisionscannabis ofestablishment: subsection 11 relating to:

(a) TheAny number,one locationof andthe sizeadult-use ofcannabis signs,establishment including,license withoutnumbers limitation,or anymedical signscannabis carriedestablishment orlicense displayednumbers byof athe naturalcannabis person;establishment;

or (b) Any one unique identifier assigned to the cannabis establishment by the Board.

13.

Nothing in subsection 11 shall be construed to prohibit a local government, pursuant to chapter 244, 268 or 278 of NRS, from adopting an ordinance for the regulation of advertising relating to cannabis which is more restrictive than the provisions of subsection (a) The number, location and size of signs, including, without limitation, any signs carried or displayed by a natural person;

13.[13.] 14.

If a cannabis establishment engages in advertising for which it is required to determine the percentage of persons who are less than 21 years of age and who may reasonably be expected to view or hear the advertisement, the cannabis establishment shall - 81st Session (2021) – 17 – maintain documentation for not less than 5 years after the date on which the advertisement is first broadcasted, published or otherwise displayed that demonstrates the manner in which the cannabis establishment determined the reasonably expected age of the audienceaud[14.] for15. that advertisement.

14.thIn addition to any other penalties provided for by law, the Board may impose a civil penalty upon a cannabis establishment that violates the provisions of subsection 11 or [13] as follows:

In(a) additionFor tothe anyfirst otherviolation penaltiesin provided for by law, the Boardimmediately maypreceding impose2 years, a civil penalty uponnot ato cannabisexceed establishment$1,250. that violates the provisions of subsection 11 or 13 as follows:

- *AB326_R1* – 7 – (a) For the first violation in the immediately preceding 2 years, a civil penalty not to exceed $1,250.

15.[15.] 16.

2.2.

NRS 678B.650 is hereby amended to read as follows:

678B.650 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 cha2.er;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;

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;

- 81st Session (2021) – 18 – (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 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 a cannabis establishment agent registration card for a cannabis receiver 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 use cannabis establishment at the same location;ment and an adult- 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.

Sec.

2.4.

NRS 678C.200 is hereby amended to read as follows:

678C.200 1.

Except as otherwise provided in this section and NRS 678C.300, a person who holds a valid registry identification card issued to the person pursuant to NRS 678C.230 or 678C.270 is exempt from state prosecution for:

(a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(c) Aiding and abetting another in the possession, delivery or production of cannabis;

- 81st Session (2021) – 19 – (d) Aiding and abetting another in the possession or delivery of paraphernalia;

(e) Any combination of the acts described in paragraphs (a) to (d), inclusive;

and or production of cannabis or the possession or delivery of delivery paraphernalia is an element.

2.

In addition to the provisions of subsections 1 and 5, 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 medical use of cannabis in accordance with the provisions of this title.

3.

The exemption from state prosecution set forth in subsection applies only to the extent that a person who holds a registry identification card issued to the person pursuant to paragraph (a) of subsection 1 of NRS 678C.230 and the designated primary caregiver, if any, of such a person:

(a) Engage in or assist in, as applicable, the medical use of cannabis in accordance with the provisions of this title as justified to mitigate the symptoms or effects of a person’s chronic or debilitating medical condition;

and (b) Do not, at any one time, collectively possess with another who is authorized to possess, deliver or produce more than:

(1) Two and one-half ounces of usable cannabis;

(2) Twelve cannabis plants, irrespective of whether the cannabis plants are mature or immature;

and (3) A maximum allowable quantity of cannabis products as  The persons described in this subsection must ensure that the usable cannabis and cannabis plants described in this subsection are safeguarded in an enclosed, secure location.

4.

If the persons described in subsection 3 possess, deliver or produce cannabis in an amount which exceeds the amount described in paragraph (b) of that subsection, those persons:

(a) Are not exempt from state prosecution for the possession, delivery or production of cannabis.

(b) May establish an affirmative defense to charges of the possession, delivery or production of cannabis, or any combination of those acts, in the manner set forth in NRS 678C.310.

5.

A person who holds a valid medical cannabis establishment license issued to the person pursuant to NRS 678B.210 , [or] a valid cannabis establishment agent registration card issued to the person pursuant to NRS 678B.340 , [or] a valid cannabis establishment - 81st Session (2021) – 20 – agent registration card for a cannabis executive issued pursuant to NRS 678B.350 or a valid cannabis establishment agent registration card for a cannabis receiver issued pursuant to section 1.69 of this act and who confines his or her activities to Board pursuant thereto, is exempt from state prosecution for:y the (a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(c) Aiding and abetting another in the possession, delivery or production of cannabis;

(d) Aiding and abetting another in the possession or delivery of paraphernalia;

(e) Any combination of the acts described in paragraphs (a) to (d), inclusive;

and (f) Any other criminal offense in which the possession, delivery or production of cannabis or the possession or delivery of paraphernalia is an element.

6.

Notwithstanding any other provision of law and except as otherwise provided in this subsection, after a medical cannabis dispensary opens in the county of residence of a person who holds a registry identification card, including, without limitation, a designated primary caregiver, such a person is not authorized to cultivate, grow or produce cannabis.

The provisions of this subsection do not apply if:

(a) The person who holds the registry identification card was cultivating, growing or producing cannabis in accordance with state law on or before July 1, 2013;

residence of the person who holds the registry identification card close or are unable to supply the quantity or strain of cannabis necessary for the medical use of the person to treat his or her specific medical condition;

(c) Because of illness or lack of transportation, the person who holds the registry identification card is unable reasonably to travel to a medical cannabis dispensary;

or (d) No medical cannabis dispensary was operating within 25 miles of the residence of the person who holds the registry identification card at the time the person first applied for his or her registry identification card.

7.

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

- 81st Session (2021) – 21 – Sec.

2.6.

NRS 678C.600 is hereby amended to read as follows:

678C.600 1.

The fact that a person possesses a registry identification card or letter of approval issued to the person by the Division or its designee pursuant to NRS 678C.230 or 678C.270, a Board or its designee pursuant to NRS 678B.210, a cannabisn by the establishment agent registration card issued to the person by the Board or its designee pursuant to NRS 678B.340 , [or] a cannabis establishment agent registration card for a cannabis executive issued to the person by the Board or its designee pursuant to NRS 678B.350 or a cannabis establishment agent registration card for a cannabis receiver issued to the person by the Board pursuant to section 1.69 of this act does not, alone:

(a) Constitute probable cause to search the person or the person’s property;

or (b) Subject the person or the person’s property to inspection by any governmental agency.

2.

Except as otherwise provided in this subsection, if officers of a state or local law enforcement agency seize cannabis, paraphernalia or other related property from a person engaged in, facilitating or assisting in the medical use of cannabis:

(a) The law enforcement agency shall ensure that the cannabis, paraphernalia or other related property is not destroyed while in the possession of the law enforcement agency.

(b) Any property interest of the person from whom the cannabis, paraphernalia or other related property was seized must not be forfeited pursuant to any provision of law providing for the conviction of a criminal offense.

part of a sentence imposed after (c) Upon:

(1) A decision not to prosecute;

(2) The dismissal of charges;

or (3) Acquittal,  the law enforcement agency shall, to the extent permitted by law, return to that person any usable cannabis, cannabis plants, paraphernalia or other related property that was seized.

The provisions of this subsection do not require a law enforcement agency to care for live cannabis plants.

Sec.

2.8.

NRS 678D.200 is hereby amended to read as follows:

678D.200 1.

Except as otherwise provided in NRS 678D.300, a person who is 21 years of age or older is exempt from state prosecution for:

- 81st Session (2021) – 22 – (a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(c) Aiding and abetting another in the possession, delivery or production of cannabis;

paraphernalia;and abetting another in the possession or delivery of (e) Any combination of the acts described in paragraphs (a) to (d), inclusive;

and (f) Any other criminal offense in which the possession, delivery or production of cannabis or the possession or delivery of paraphernalia is an element.

2.

In addition to the provisions of subsections 1 and 5, 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 adult use of cannabis in accordance with the provisions of this title.

3.

The exemption from state prosecution set forth in subsection applies only to the extent that a person:

(a) Is 21 years of age or older;

(b) Is not employed by any agency or political subdivision of this State in a position which requires the person to be certified by the Peace Officers’ Standards and Training Commission;

(c) Engages in the adult use of cannabis in accordance with the provisions of this title;

(d) Does not, at any one time, possess, deliver or produce more than:

(1) One ounce of usable cannabis;

(3) Six cannabis plants, irrespective of whether the cannabis plants are mature or immature;

and (4) A maximum allowable quantity of adult-use cannabis products as established by regulation of the Board;

(e) Cultivates, grows or produces not more than six cannabis plants:

(1) Within an enclosed area that is not exposed to public view that is equipped with locks or other security devices which allow access only by an authorized person;

and (2) At a residence or upon the grounds of a residence in which not more than 12 cannabis plants are cultivated, grown or produced;

(f) Delivers 1 ounce or less of usable cannabis or one-eighth of an ounce or less of concentrated cannabis without remuneration to a - 81st Session (2021) – 23 – person who is 21 years of age or older so long as such delivery is not advertised or promoted to the public;

and (g) Assists another person who is 21 years of age or older in carrying out any of the acts described in paragraphs (a) to (f), inclusive.

4.

If a person possesses, uses or produces cannabis in an amount which exceeds the amount set forth in paragraph (d) of subsection 3 or in any manner other than that set forth in subsection 3, the person is not exempt from state prosecution for the possession, delivery or production of cannabis.

5.

A person who holds an adult-use cannabis establishment establishment agent registration card issued to the person pursuant to NRS 678B.340 , [or] a cannabis establishment agent registration card for a cannabis executive issued to the person pursuant to NRS 678B.350 [,] or a cannabis establishment agent registration card for a cannabis receiver issued to the person pursuant to section 1.69 of this act, and confines his or her activities to those authorized by this title, and the regulations adopted by the Board pursuant thereto, is exempt from state prosecution for:

(a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(c) Aiding and abetting another in the possession, delivery or production of cannabis;

(d) Aiding and abetting another in the possession or delivery of paraphernalia;

(e) Any combination of the acts described in paragraphs (a) to (d), inclusive;

and (f) Any other criminal offense in which the possession, delivery or production of cannabis or the possession or delivery of paraphernalia is an element.

6.

The commission of any act by a person for which the person is exempt from state prosecution pursuant to this section must not be used as the basis for the seizure or forfeiture of any property of the person or for the imposition of a civil penalty.

Sec.

3.

H~~~~~ 21 - *AB326_R1*81st Session (2021)