Section 4 of this bill defines “ready-to-consume cannabis product” to mean an adult-use edible cannabis consumption.

Section 28 of this bill requires the Board to adopt regulations designating types of cannabis and cannabis products as single-use cannabis products and establishing requirements for the preparation and sale of ready-to-consume cannabis products.

Existing law prohibits a person from engaging in the business of an adult-use cannabis establishment unless the person has been issued an adult-use cannabis obtainestablishment suchlicense aby license.the Board.

(NRSExisting 678B.250)law Sectionsets 7forth ofcertain thisrequirements bill includes a retailts to cannabisobtain consumption lounge and an independent cannabis consumption lounge within the definition of “adult-use cannabis establishment” provided under existing law, thereby requiring persons who wish to operate such establishmentsa tolicense. obtain an adult-use cannabis establishment license in the manner provided in existing law.

(NRS 678A.035)678B.250) SectionsSection 13.57 and 14 of this a bill prohibitincludes a retail cannabis establishment,consumption includinglounge aand an independent cannabis consumption lounge,lounge fromwithin beingthe locateddefinition onof the“adult-use propertycannabis ofestablishment” anprovided airport.under existing law, thereby requiring persons who wish to operate provided in existing law.

(NRS 678A.035)se cannabis establishment license in the manner Sections 13.5 and 14 of this a bill prohibit a cannabis establishment, including a cannabis consumption lounge, from being located on the property of an airport.

(1) the applicant holds an adult-use cannabis establishment license for an adult-use cannabis retail storestore; which is operational;

Sections 10 and 14 of this bill exempt a proposed retail cannabis consumption lounge from certain restrictions relating to the location of an adult-use cannabis establishment.establishment .

[under certain circumstances.] Section 11 of this bill requires the Board to adopt regulations establishing criteria to determine whether an applicant for the issuance or renewal of an adult-adult-use use cannabis establishment license for an[a independentretail cannabis consumption lounge qualifiesor] asan aindependent socialcannabis equity applicant, which is defined by section 9 of this bill generally as an applicant that has been adversely affected by previous laws thatthatf criminalized activity relating to cannabis.

Section 12 of this bill requires the Board to adopt regulations establishing criteria of merit and scoring guidelines to be used in evaluating applications for [such licenses and requires the Board to give an additional positive weight to social equity applicants.] an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge.

Section 17 of this bill [requires the Board to establish] establishes fees for the issuance and renewal of such licenses.licenses .

[and] Section 17 authorizes the Board to [establish reduced] reduce certain fees [for] associated with an adult-use cannabis establishment license for an independent cannabis consumption lounge for social equity applicants.

Section 12.412.5 of this bill prohibitssets forth certain requirements for the Board,issuance withof certainadult-use exceptions,cannabis fromestablishment issuinglicenses morefor thanretail 20cannabis consumption lounges and limits the number of business licenses issued to cannabis consumption lounges, which include, among other requirements, that a certain number of adult-use cannabis establishment licenses for an independent cannabis consumption lounge.lounges be issued to social equity applicants.

However,Existing iflaw onprohibits or before June 30, 2022, the Board issuesfrom 20issuing suchmore licenses,than sectiona 12.4certain authorizes the Board to issue additional for an independent cannabis consumption lounge does not, at any time, exceed thees number of adult-use cannabis establishment licenses forto aany retailone cannabisperson, consumptiongroup loungeor issuedentity byin thecertain Board.counties.

(NRS 678B.270) Section 12.415 alsoof requiresthis thatbill atprovides leastthat 10this ofprohibition thedoes firstnot 20apply to adult-use cannabis establishment licenses for anretail independent cannabis consumption loungelounges issuedor byindependent thecannabis Boardconsumption belounges. issued to social equity applicants.

SectionInstead, 12.5section 12.7 of this bill setsgenerally forthprohibits certain requirements for the issuanceBoard offrom adult-useissuing cannabismore establishmentthan licensesone forsuch retaillicense cannabis consumption lounges and independent cannabis consumption lounges in a local governmental jurisdiction that limits the number of business licenses issued to cannabisany consumptionperson, lounges,group which include, among other requirements, that a certain - 81st Session (2021) – 3 – number of adult-usepersons cannabisor establishmententity licensesAssembly forAmendment independentNo. cannabis consumption lounges be issued to social equity applicants.

Existing322 law prohibits the Board from issuing more than a certain number of adult-use cannabis establishment licenses to anyAssembly oneBill person,No. group of persons or entity in certain counties.

(NRS341 678B.270)Page Section5 15in of this bill provides that this prohibition does not apply to adult-use cannabis establishment licenses for retail Instead, section 12.7 of this bill generally prohibits the Board from issuing more than one such license to any onecounty. person.

Section 12.3 of this bill prohibits the Board from issuing to any one person both an adult-use cannabis establishment license for an adult-use cannabis retail store and an adult-use cannabis establishment license for an independent cannabis consumption lounge.

Section 20 of this bill requires the Board to adopt regulations prescribing the manner in which it will determine whether a person who holds an adult-use cannabis establishment license is ineligible to hold additional licenses pursuant to sections 12.3 and 12.7.

(NRS 678B.380) Section 16.5 of this bill requires those regulations to impose certain requirements and restrictions on the transfer an adult-use cannabis establishment license for an independent cannabis consumption lounge for a holdSections 22 and 24 of this bill set forth certain requirements and restrictions relating to the operation of a cannabis consumption lounge.

SectionsSection 2224 andprohibits, 24among other things, the consumption of thisany billcannabis setor forthcannabis certainproduct requirementsat anda restrictionscannabis relatingconsumption tolounge thethat operationis ofnot a single-use cannabis consumptionproduct lounge.or ready-to-consume cannabis product.

Section 24 prohibits, cannabis consumption lounge that is not a single-use cannabis product or ready-to- consume cannabis product.

Section 20 of this bill requires the Board to adopt certain regulations concerning the operation of cannabis consumption lounges.

Section 25 of this bill authorizes a retail cannabis consumption lounge to obtain single-usesingle- use cannabis [or cannabis] products from the adult-use cannabis retail store to which the lounge is attached or adjacent and sell such products to customers of the lounge.

[ Section 274 of this bill requiresdefines an“ready-to-consume independent cannabis consumptionproduct” lounge to entermean intoan a contract with one or more adult-use cannabisimmediate retailconsumption. stores to obtain single-use cannabis products for resale and cannabis or cannabis products for use in the preparation of ready-to-consume cannabis products.

Section 2728 authorizesof anthis independentbill cannabisrequires consumptionthe loungeBoard thatto hasadopt enteredregulationsor intoestablishing suchrequirements afor contractthe to:preparation and sale of such products.

(1)Sections sell19 single-useand 30 of this bill provide that certain requirements for cannabis products established under existing law do not apply to customersready-to-consume cannabis products to the extent that such requirements are inconsistent with the regulations adopted by the Board.] Section 26 of this bill requires an independent cannabis consumption lounge to allow single-use cannabis [or cannabis] products to be delivered to a customer in the lounge;lounge.

andSection (2)26 preparealso andprohibits, sellwith ready-to-consumecertain exceptions, an independent cannabis productsconsumption tolounge customersfrom ofacquiring theor lounge.selling cannabis or cannabis products.

anSection incorporated27 cityof orthis abill townauthorizes boardan fromindependent licensingcannabis orconsumption otherwiselounge allowingto submit a personrequest to operatethe aBoard businessfor thatan allowsendorsement cannabisto orsell cannabissingle-use productsand toready-to-consume becannabis consumed[or oncannabis] theproducts premisesto customers of the business.lounge.

(NRSIf 244.335,the 268.095,Board 269.170)approves Existingsuch lawa eliminatesrequest, thissection prohibition27 effectiveauthorizes Julythe 1,independent 2021.cannabis consumption lounge to:

(Section(1) 246enter ofinto chaptera 595,contract Statuteswith ofone Nevadaor 2019,more atadult- pagecannabis 3896)products Sectionsfor 36.7[resale;] andfor 36.9use ofin this bill remove the prospectivepreparation elimination of thisready-to-consume prohibition.cannabisis or products;

Instead,(2) sectionssell 30.6-30.9single-use of this bill prohibit, with certain exceptions, such a local government from licensing or otherwise allowing the operation of a business that allows cannabis or[or cannabiscannabis] products to becustomers consumed on the premises of the business,lounge; other than a cannabis consumption lounge, in accordance with the provisions of this bill.

-and 81st(3) Sessionprepare (2021)and –sell 4ready-to-consume – Section 30.5 of this bill establishes provisions relating to the civil liability of a person who serves, sells or furnishes cannabis orproducts a cannabis product to anothercustomers person for damages caused as a result of the consumptionlounge. of the cannabis or alcoholic beverages.

(NRSSection 41.1305)on30.5 similarof this bill establishes provisions relating to the civil liability of existinga lawperson concerningwho Existingserves, lawsells imposesor anfurnishes excisecannabis taxor ona eachcannabis retailproduct saleto another person for damages caused as a result of the consumption of the cannabis or cannabis productsproduct, bywhich anare adult-usebased cannabison retailsimilar store.provisions of existing law concerning alcoholic beverages.

(NRS 41.1305) Existing law imposes an excise tax on each retail sale of cannabis or cannabis products by an adult-use cannabis retail store.

Section 18 of this bill revises provisions of existing law prohibiting the consumption of cannabis and cannabis products in a cannabispublic place or in a cannabisg the establishment for the purpose of authorizing a person to engage in such activities in a cannabis consumption lounge.

(NRS 678B.510)678B.510, 678D.310) Existing law prohibits,prohibits ina general,person from opening or maintaining a place for the consumptionpurpose of cannabisunlawfully orselling, cannabisgiving productsaway inor ausing publicany place.controlled substance.

(NRS 678C.300,453.316) 678D.300, 678D.310) Section 12.936 of this bill authorizesexempts thea Boardcannabis toconsumption adoptlounge regulationswhose settingactivities forthare circumstancesconfined to those authorized under place.the provisions of this bill from the application of this provision.

SectionsSection 20.5,36.5 28.5 and 29 of this bill reviserequires provisionsthe ofBoard, existingon lawc prohibiting a person from consuming cannabis or cannabisbefore productsJanuary in1, a2023, publicto placesubmit forto the purposeLegislature of authorizing a personreport tocontaining engagecertain ininformation suchregarding activities in a public place in accordance with the regulationseffect adoptedof bycertain theAssembly BoardAmendment pursuantNo. to section 12.9.

However,322 sectionto 12.9Assembly alsoBill providesNo. that the provisions of section 12.9 do not prohibit a local government from adopting and enforcing an ordinance or rule governing the consumption of cannabis or cannabis products in a public place which is more restrictive than the regulations adopted by the Board.

Existing341 lawPage prohibits6 aconsumption personlounges.vada fromUnfair openingTrade orPractice maintainingAct aon placeindependent forcannabis theSections purpose[2-5] 2-5.5 and 9 of unlawfullythis selling,bill givingdefine awaywords orand usingterms anyapplicable controlledto substance.the provisions of this bill.

(NRSSections 453.316)6 Sectionand 3632 of this bill exemptsmake fromconforming thechanges applicationto ofproperly thisplace provision:new language in the Nevada Revised Statutes.

(1)Section a35 cannabisof consumptionthis loungebill whosemakes activitiesa areconforming confinedchange to thosereflect authorizedthe underaddition of the provisions of thissection bill;17.

and (2) any person who opens or maintains a products pursuant to regulations adopted by the Board pursuant to section 12.9 and whose activities are confined to those authorized by such regulations.

Section 36.3 of this bill requires the Board to provide each person who, on July 1, 2021, holds an adult-use cannabis establishment license for an adult-use cannabis retail store a written notification informing the person that the person may be eligible to hold an adult-use cannabis establishment license for a retail cannabis consumption lounge.

Section 36.5 of this bill requires the Board, on or before January 1, 2023, to submit to the Legislature a report containing certain information regarding the effect of certain violations of the Nevada Unfair Trade Practice Act on independent cannabis consumption lounges.

Sections 2-5.5 and 9 of this bill define words and terms applicable to the provisions of this bill.

Sections 6 and 32 of this bill make conforming changes to makes a conforming change to reflect the addition of the provisions of section 17.l - 81st Session (2021) – 5 – EXPLANATION – Matter in bolded italics is new;

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

Chapter 678A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to [5,] 5.5, inclusive, of this act.

and cannabis3. products to be consumed on the premises of the business by persons 21 years of age or older.

Allows single-use cannabis products or ready-to-consume cannabis products to be consumed on the premises of the business by persons 21 years of age or older.

“Single-use cannabis product” means a type of cannabis or adult-useadult- use cannabis product, other than a ready-to-ready-to-consume consume cannabis product, that the Board has determined to be appropriate for consumption in a cannabis consumption lounge pursuant to section 28 of this act.

678A.010 NRSAs used in this title, unless the context otherwise requires, the words and terms defined in NRS 678A.020 - 81st Session (2021) – 6 – to 678A.240, inclusive, and sections 2 to 5.5, inclusive, of this act have the meanings ascribed to them in those sections.

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 sections 2 to [5,] 5.5, inclusive, of this act have the meanings ascribed to them in those sections.

Sec.

1.

An adult-use cannabis independent testing laboratory;

An adult-use cannabis cultivation facility;aboratory;facility;

6.Assembly Amendment No.

322 to Assembly Bill No.

341 Page 7 6.

Chapter 678B of NRS is hereby amended by adding thereto the provisions set forth as sections 9 to 12.9,12, inclusive, of this act.

“Social equity applicant” means an applicant for the issuance or renewal of an adult-use cannabis establishment license for [a retail cannabis consumption lounge or] an independent cannabis consumption lounge who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis, [including,] as determined by the Board in accordance with the regulations adopted pursuant to section 11 of this act.

Such adverse effects may include, without limitation, adverse effects on an owner [,] or officer [or board member] of the applicant.applicant .

[or on the geographic area in which the applicant will operate.] Sec.

holds an adult-use cannabis establishment license is operational;t and (c)(b) The location of the proposed retail cannabis consumption lounge is attached or immediately adjacent to the adult-use cannabis retail store for which the applicant holds an adult-use cannabis establishment license.

The location of a proposed retail cannabis consumption lounge:lounge is not subject to the restrictions set forth in sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3 of NRS 678B.250 [so long as the adult-use cannabis retail store to which the proposed retail cannabis consumption lounge is to be attached or immediately adjacent was in compliance with such requirements at the time it was issued an adult-use cannabis establishment license.] and must not be on the property of an airport.

(a) Except as otherwise provided in paragraph (b), is not subject to the restrictions set forth in sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3 of NRS 678B.250 so long as the adult-use cannabis retail store to which the proposed retail cannabis consumption lounge is to be attached or immediately adjacent was in compliance with such - 81st Session (2021) – 7 – requirements at the time it was issued an adult-use cannabis establishment license;

and (b) Must not be on the property of an airport.

The Board shall adopt regulations establishing criteria to be used by the Board for determining whether an applicant for the issuance or renewal of an adult-use cannabis establishment license for [a retail cannabis consumption lounge or] an independent cannabis consumption lounge qualifies as a social equity applicant for the purposes of [NRS 678B.390 and sections 12] this chapter.chapter and section 27 of this act.

must3. establish a minimum required score for the issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge.

4.The [criteria of merit and] scoring guidelines established pursuant to subsection 1 must [, without limitation:

Assembly Amendment No.

322 to Assembly Bill No.

341 Page 8 (a) Establish] establish a minimum required score for the issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge .

[;

and (b) Provide an additional positive weight to] 4.

(a) ForThe adiversity on the basis of race, ethnicity or gender of the applicant or the persons who are proposed to be owners or officers of the proposed retail cannabis consumption lounge or independent cannabis consumption lounge:lounge;

(1)(b) TheWhether diversity on the basis of race, ethnicity or gender of the applicant orqualifies theas personsa whosocial areequity proposed[applicants.] toapplicant, beif ownersapplicable; or officers of the proposed independent cannabis consumption lounge;

and (2)(c) WhetherAny theother applicantcriteria qualifiesof asmerit athat socialthe equityBoard applicant;determines to be relevant.

and - 81st Session (2021) – 8 – (b) Any other criteria of merit that the Board determines to be relevant.

The Board shall notgive issuepriority to anya onesocial personequity bothapplicant anwhen adult-useprocessing cannabisapplications establishment license for an adult-use cannabis establishment license for an independent cannabis consumption lounge.shmentlounge Sec.and in the issuance of such a license.

12.4.

1.

Except as otherwise provided in subsection 2, the Board shall not issue more than 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge.

2.

If, on or before June 30, 2022, the Board issues 20 adult- use cannabis establishment licenses for an independent cannabis consumption lounge, the Board may thereafter issue adult-use cannabis establishment licenses for independent cannabis consumption lounges in amounts that exceed the limit set forth in subsection 1, so long as the total number of such licenses issued by the Board does not, at any time, exceed the total number of adult-use cannabis establishment licenses for a retail cannabis consumption lounge issued by the Board.

3.

At least 10 of the first 20 adult-use cannabis establishment licenses for an independent cannabis consumption lounge issued by the Board must be issued to social equity applicants.

The Boardboard shall, for each local governmental jurisdiction that limits the number of business licenses which may be issued to cannabis consumption lounges, determine the number of licenses allocated to the jurisdiction for retail cannabis consumption lounges and independent cannabis consumption lou2.esNot more than 50 percent of the licenses allocated by the Board pursuant to subsection 1 may be issued to retail cannabis consumption lounges.

2.

Not more than 50 percent of the licenses allocated by the Board pursuant to subsection 1 may be issued to retail cannabis consumption lounges.

Except as otherwise provided in this subsection, at least 50 percent of the licenses allocated to a local governmental jurisdiction pursuant to subsection 1 must be issued to independentsocial cannabisequity consumptionapplicants. lounges.

At least 50 percent of the licenses issued to independent cannabis consumption lounges must be issued to social equity applicants.

- 81st Session (2021) – 9 – 4.

If the number of qualified applicants in a local governmental jurisdiction exceeds the number of licenses allocated to that jurisdiction pursuant to subsection 1, the Board shall issue adult-use cannabis establishment licenses for retail cannabis consumption lounges and independent cannabis consumption lounges in the local governmental jurisdiction to qualified applicants who are not social equity applicants using a separate lottery system for each type of license.

(a) More than one adult-use cannabis establishment license for an independent cannabis consumption lounge to anya oneperson, person;group or entity;

(b) More than one adult-use cannabis establishment license for a retail cannabis consumption lounge to anya oneperson, person;group or entity;

or (c) Both an adult-use cannabis establishment license for a retail cannabis consumption lounge and an adult-use cannabis establishment license for an independent cannabis consumption lounge to anya oneperson, person.group or entity.

The Board may approve a transfer of an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge to a personperson, group of persons or entity that acquires a 100 percent ownership interest in a cannabis consumption lounge in a county in which the personperson, group or entity holds another such license, if the transfer:

establishedAssembly byAmendment theNo. Board pursuant to NRS 678B.380;

and322 ofto aAssembly licenseBill (b)No. Will not result in the person holding more than two adult- use cannabis establishment licenses for a retail cannabis consumption lounge, adult-use cannabis establishment licenses for an independent cannabis lounge or any combination of the two.

341 Page 9 (a) Complies with all requirements for the transfer of a license established by the Board pursuant to NRS 678B.380;

and (b) Will not result in the person, group or entity holding:

(1) Two or more adult-use cannabis establishment licenses for a retail cannabis consumption lounge;

(2) Two or more adult-use cannabis establishment licenses for an independent cannabis lounge;

or (3) Both:

(I) An adult-use cannabis establishment license for a retail cannabis consumption lounge and an adult-use cannabis establishment license for an independent cannabis consumption lounge;

and (II) Any additional adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge.

3.

A person, group of persons or entity that sells a 100 percent ownership interest in a cannabis consumption lounge may not subsequently apply for an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge for the county in which the ownership interest was sold.

12.9.

1.

The Board may adopt regulations setting forth circumstances under which a person is authorized to consume cannabis or cannabis products in a public place.

2.

Nothing in this section shall be construed as prohibiting a local government from adopting and enforcing an ordinance or rule governing the consumption of cannabis or cannabis products in a public place in the jurisdiction of the local government which is more restrictive than the regulations adopted by the Board pursuant to subsection 1.

- 81st Session (2021) – 10 – Sec.

678B.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 678B.030 to 678B.070, inclusive, and section 9 of this act have the meanings ascSec.ascribed to them in those sections.

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

13.5.

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

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-digit20- digit alphanumeric identification number if:

(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 on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board or, if the proposed medical cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177Assembly andAmendment thatNo. existed on the date on - 81st Session (2021) – 11 – which the application for the proposed medical cannabis establishment was submitted to the Board;

(III)322 Evidence that the applicant controls not less than $250,000 in liquid assets to coverAssembly theBill initialNo. expenses of opening the provisions of this title;

establishment341 andPage complying10 with463.0177 theand (IV) Evidence that theexisted applicanton owns the propertydate on which the proposedapplication medicalfor cannabis establishment will be located or has the written permission of the property owner to operate the proposed medical cannabis establishment onwas thatsubmitted property;to the Board;

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

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

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

- 81st Session (2021) – 12 – (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;

Except as otherwise provided in subsection 6, if an application for registration as a medical cannabis establishment satisfies the requirements of this section,Assembly isAmendment qualifiedNo. 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 establishment license.

A322 medicalto cannabisAssembly establishmentBill licensebisNo. expires 1 year after the date of issuance and may be renewed upon:

341 Page 11 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:

-(b) 81st Session (2021) – 13 – (c) A playground..public park.

(c) A playground.

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

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

Except as otherwise provided in NRS 678B.260, 678B.270 and 678B.280, and sections 10 and, [and] 12 to, 12.7,12.5 inclusive,and 12.7 of this act, anthe applicantBoard if:issueshall issue an adult-use cannabis establishment license to (a)an Theapplicant personif: who wishes to operate the proposed adult-use cannabis establishment has submitted to the Board all of the following:

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

(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 , [except as otherwise provided in section 10 of this act,] be on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board or, if the proposed adult-use cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177 and thatAssembly existedAmendment onNo. the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board;

-322 81st Session (2021) – 14 – (III) Evidence that the applicant controls liquid assets in an amount determined by the Board to beAssembly sufficientBill toNo. cover the initial expenses of opening the proposed adult-use cannabis establishment and complying with the provisions of this title;

which341 thePage proposed12 adult-usethat cannabisexisted establishmenton will be located or has the writtendate permissionon ofwhich the propertyapplication ownerfor to operate the proposed adult-use cannabis establishment onwas thatsubmitted property;to the Board;

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

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

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

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

or - 81st Session (2021) – 15 – (3) Previously had a cannabis establishment agent registration card for a cannabis executive revoked;

and (d) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment are4.ndeForare eachunder person21 whoyears submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of aage. 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.

4.

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

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 establishmentAssembly license.Amendment No.

322 to Assembly Bill No.

341 Page 13 establishment license.

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

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

-Sec. 81st Session (2021) – 16 – 678B.270 NRS1.

Except15. as otherwise provided in [subsection 2,] this section, to prevent monopolistic practices, the Board shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

NRS 678B.270 is hereby amended to read as follows:

678B.270 1.

Except as otherwise provided in [paragraph (b) and subsection 2,] this section, to prevent monopolistic practices, the Board shall ensure, in a county whose population is 100,000 or more, that it does not issue, to any one person, group of persons or entity, the greater of:

In determining whether to issue an adult-use cannabis establishment license pursuant to NRS 678B.250, other than an adult-use cannabis establishment license for a retail cannabis consumption lounge or an independent cannabis consumption lounge, the Board shall, in addition to the factors set forth in that section, consider criteria of merit established bysetby regulation of the Board.

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

(c) The educational and life experience of the persons who are proposed to be owners, officers or board members of the proposed adu(d)adult-use Whether the applicant has an integrated plan for the care, quality and safekeeping of cannabis fromestablishment; seed to sale;

(e)(d) TheWhether experience of key personnel that the applicant intendshas toan employintegrated inplan operatingfor the typecare, ofquality adult-useand cannabissafekeeping establishmentof forcannabis whichfrom theseed applicantto seekssale; a license;

(f)Assembly TheAmendment diversityNo. on the basis of race, ethnicity or gender of the applicant or the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment, including, without limitation, the inclusion of persons of - 81st Session (2021) – 17 – owners, officers or board members of adult-use cannabised as establishments;

322 to Assembly Bill No.

341 Page 14 (e) The experience of key personnel that the applicant intends to employ in operating the type of adult-use cannabis establishment for which the applicant seeks a license;

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

(d) An adult-use cannabis establishment license.

The Board shall adopt regulations which prescribe procedures and requirements by which a holder of a license , including, without limitation, the holder of an adult-use cannabis establishment license for an independent cannabis consumption lounge who is a social equity applicant, may transfer the license to another party who is qualified to hold such a license pursuant to the provisions of this chapter.

(a) Prohibit the holder of an adult-use cannabis establishment license for an independent cannabis consumption lounge who is a social equity applicant from transferring the license until at least 23 years from the date on which the independent cannabis consumption lounge for which the license was issuedissued; became operational;

(b) Require the holder of an adult-use cannabis establishment license for an independent cannabis consumption lounge who is a social equity applicant and who wishes to cease operations before the independentholder cannabishas consumptionheld lounge for which the license was issued has been operational for at least 23 years to surrender the license to the Boa(c)Board; Require the Board to hold a license surrendered pursuant to paragraph (b) in reserve for issuance to an applicant for such a license in the future.

and (c) Require the Board to hold a license surrendered pursuant to paragraph (b) in reserve for a future issuance to a social equity applicant.

Except as otherwise provided in subsection [2,][2, 4,] 3, the Board shall collect not more than the following maximum fees:

- 81st Session (2021) – 18 – For the initial issuance of a medical cannabis establishment license for a medical cannabis dispensary...............................................................$30,000dispensary ..................................$30,000 For the renewal of a medical cannabis establishment license for a medical cannabis dispensary...................................................................5,000dispensary..................................................5,000 For the initial issuance of a medical cannabis establishment license for a medical cannabis cultivation facility......................................................3,000facility..........................3,000 For the renewal of a medical cannabis establishment license for a medical cannabis Forcultivation thefacility......................................1,000 initial issuance of a medical cannabis.................................1,000 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 independentproduction testingfacility..........................3,000 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.....................................10,000facility......................................1,000 ForAssembly theAmendment renewalNo. of an adult-use cannabis establishment license for an adult-use cannabis production facility.......................................3,300 - 81st Session (2021) – 19 – 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 cannabis independent testing laboratory....................5,000 For the initial issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge ................................10,000 For the renewal of an adult-use cannabis establishment license for a retail cannabis consumption lounge................................................10,000 For the initial issuance of an adult-use cannabis establishment license for an independent cannabis consumption lounge...........10,000 For the renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge................................10,000 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 Forthe renewal of a cannabis establishment agent registration card.............................................................150 2.

[In]322 Theto BoardAssembly mayBill byNo. regulation establish reduced fees for:

(a)341 ThePage 15 For the initial issuance of a medical cannabis establishment license for a medical cannabis independent testing laboratory........................................................................................5,000 For the renewal of a medical cannabis establishment license for a medical cannabis independent testing laboratory...................3,000 For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis retail store..............................................................................................20,000 For the renewal of an adult-use cannabis establishment license for an adult-use cannabis retail store ..................................6,600 For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility.........................................................................30,000 For the renewal of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility....................10,000 For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis production facility ........................................................................10,000 For the renewal of an adult-use cannabis establishment license for an adult-use cannabis production facility......................3,300 For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory......................................................15,000 For the renewal of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory........................................................................................5,000 For the initial issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge.....................................................................20,000 For the renewal of an adult-use cannabis establishment license for a retail cannabis consumption lounge ......................10,000 For the initial issuance of an adult-use cannabis establishment license for an independent cannabis consumption lounge.......................................................................3,500 For an endorsement to an adult-use cannabis establishment license for an independent cannabis consumption lounge to engage in the sale of single-use cannabis products and ready-to-consume cannabis products..........................................................................................6,500 For the renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge;lounge without an endorsement to engage in the sale of single-use cannabis products and ready-to-consume cannabis products..........................................................................3,000 For the renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge with an endorsement to engage in the sale of single-use cannabis products and ready-to-consume cannabis products........................................................................10,000 For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis distributor.....................................................................................15,000 Assembly Amendment No.

and322 (b)to TheAssembly applicationBill feeNo. set forth in subsection 3,  for a social equity applicant.

341 Page 16 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 9 2.

The Board [shall] may by regulation establish reduced fees for [the] :

(a) The initial issuance and renewal of [:

(a) An] an adult-use cannabis establishment license for [a retail] an independent cannabis consumption lounge;

[and] (b) An endorsement to an adult-use cannabis establishment license for an independent cannabis consumption lounge [.] to engage in the sale of single-use cannabis products and ready-to-consume cannabis products;

and [ 3.

The Board may by regulation establish reduced fees for an applicant for the initial issuance or renewal of a license specified] (c) The application fee set forth in subsection [2 that is] 3,  for a social equity applicant.

3.[4.

ExceptIn] as3. otherwise provided in subsection 2, in addition to the fees described in subsection 1, each applicant for a medical - 81st Session (2021) – 20 – cannabis establishment license or adult-use cannabis establishment license must pay to the Board:

(a)Except [A]at Forotherwise anprovided applicationin forsubsection a2, licensein otheraddition thanto anthe adult-fees usedescribed cannabisin establishmentsubsection license1, each applicant for a retailmedical cannabis lounge,establishment alicense one-time,or nonrefundableadult-use applicationcannabis feeestablishment oflicense $5,000;must pay to the Board:

[and](a) (b)A For an application for an adult-use cannabis establishment license for a retail cannabis consumption lounge, a one-time, nonrefundable application fee of $100,000;$5,000;

(c)and For(b) anThe applicationactual forcosts anincurred adult-useby cannabisthe establishmentBoard licensein forprocessing anthe independentapplication, cannabisincluding, consumptionwithout lounge,limitation, aconducting one-background time,checks. nonrefundable application fee of $10,000;

and[3. (d) The actual costs incurred by the Board in processing the application, including, without limitation, conducting background checks.

[3.]5.] 4.

17.5.

(Deleted by amendment.) Sec.

(b)(a) ToFor ensurethe accurateoversight recordkeeping.of the cannabis establishment;

establishment;and (b) To ensure accurate recordkeeping.

and 2.

- 81st Session (2021) – 21 – 3.

Except as otherwise provided in NRS 678D.400, all cultivation or production of cannabis that a cannabis cultivation facility carries out or causes to be carriedAssembly outAmendment mustNo. take place in an enclosed, locked facility at the physical address provided to the facility.

322 to Assembly Bill No.

341 Page 17 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.

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 thisxteriorthis of subsection, “vending machine” has the meaning ascribed to it in NRS 209.229.

(b) Are not presented in packaging that contains an image of a cartoon character, mascot, action figure, balloon or toy, except that -such 81stan Sessionitem (2021)may –appear 22in –the facilitylogo whichof produced the product.of the cannabis production (c)facility Arewhich regulatedproduced and sold on the basisproduct. of the concentration of THC in the products and not by weight.

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

(b)(a) BearsIs the likeness or containsappears characteristicsto ofbe a reallollipop. or fictional person, animal or fruit, including, without limitation, a caricature, cartoon or artistic rendering.

Assembly Amendment No.

322 to Assembly Bill No.

341 Page 18 (b) Bears the likeness or contains characteristics of a real or fictional person, animal or fruit, including, without limitation, a caricature, cartoon or artistic rendering.

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

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

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

- 81st Session (2021) – 23 – (e) Package all cannabis products produced by the cannabis production facility on the premises of the cannabis production facility.

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

(4) That the intoxicating effects of edible cannabis products may be delayed by 2 hours or more and users of edible cannabis products should initially ingest a small amount of the product, then wait at least 120 minutes before ingesting any additional amount of the pro(5)product; That pregnant women should consult with a physician before ingesting cannabis or cannabis products;

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

and (8)Assembly ThatAmendment ingestionNo. of any amount of cannabis or cannabis products before driving may result in criminal prosecution for driving under the influence.

(b)322 Encloseto allAssembly cannabisBill andNo. cannabis products in opaque, child- resistant packaging upon sale.

-341 81stPage Session19 (2021)(8) –That 24ingestion –of leastany 21amount years of agecannabis toor entercannabis theproducts premisesbefore ofdriving themay cannabisresult salestin facility.criminal prosecution for driving under the influence.

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

7.

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

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

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

or (4) Depicts a child or other person who is less than 21 years of age consuming cannabis or cannabis products or objects suggesting the presence of a child, including, without limitation, toys, characters or cartoons, or contains any other depiction which is designed in any manner to be appealing to or encourage consumption of cannabis or cannabis products by a person who is less than 21 years of age.

cannabis products by a person who is (b) Shall not advertise in any publication or on radio, television or any other medium if 30 percent or more of the audience of that medium is reasonably expected to be persons who are less than 21 years of age.

(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, - 81st Session (2021) – 25 – playground, public park or library was located within 1,000 feet of the location of the advertisement;

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

orichor persons who are less than 21 (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.

and (2)Assembly “ForAmendment useNo. only by adults 21 years of age and older.” 12.

Nothing322 in subsection 11 shall be construed to prohibitAssembly aBill localNo. 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 relating to:

341 Page 20 (2) “For use only by adults 21 years of age and older.” 12.

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 11 relating to:

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

andisand located on or near (d) The content of any advertisement used by a cannabis establishment if the ordinance sets forth specific prohibited content for such an advertisement.

To the extent that they are inconsistent or otherwise conflict with the regulations adopted by the Board pursuant to - 81st Session (2021) – 26 – section 28 of this act, the requirements of this section pertaining to cannabis products do not apply to ready-to-consume cannabis products prepared and sold by a cannabis consumption lounge.

In 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:

Establish procedures for the suspension or revocation of a license or registration card or other disciplinary action to be taken aga3.stagainst Seta forthlicensee rulesor pertainingregistrant; to the safe and healthful operation of cannabis establishments, including, without limitation:

(a)3. 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;

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 Assembly Amendment No.

322 to Assembly Bill No.

341 Page 21 consumers and holders of registry identification cards and letters of approval, as those terms are defined in NRS 678C.080 and 678C.070, respectively;

and - 81st Session (2021) – 27 – (e) Procedures pursuant to which cannabis establishments must use the services of cannabis independent testing laboratories to ensure that any cannabis or cannabis product or commodity or product made from hemp, as defined in NRS 557.160, sold by a cannabis sales facility to an end user is tested for content, quality and potency in accordance with standards established by the Board;ityBoard; 4.

4.

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

[and] whether9. a person who holds an adult-use cannabis establishment license is ineligible to hold additional licenses pursuant to sections 12.3 and 12.7 of this act;

10.

(b) Procedures and requirements for the collectiondelivery and disposal of cannabisa andsingle-use cannabis products[or whicha arecannabis] leftproduct atto a customer in an independent cannabis consumption lounge;

and[and] (c) RequirementsProcedures and requirements for the trainingcollection ofand employeesdisposal of a cannabis consumption lounge in the sale and safecannabis consumptionproducts ofwhich single-are useleft cannabisat productsa and ready-to-consume cannabis products;consumption lounge;

and -(d) 81stRequirements Sessionfor (2021)the –training 28of –employees toof carrya outcannabis consumption lounge in the provisionssale and safe consumption of thissingle-use title.oardcannabis deemsproducts necessaryand Sec.ready-to-consume cannabis products;

20.5.and 10.

NRSAddress 678C.300such isother herebymatters amendedas the Board deems necessary to readcarry asout follows:the provisions of this title.

678C.300 1.

A person who holds a registry identification card or letter of approval issued to him or her pursuant to NRS 678C.230 or 678C.270 is not exempt from state prosecution for, nor may the person establish an affirmative defense to charges arising from, any of the following acts:

(a) Driving, operating or being in actual physical control of a vehicle or a vessel under power or sail while under the influence of cannabis.

(b) Engaging in any other conduct prohibited by NRS 484C.110, 484C.120, 484C.130, 484C.430, subsection 2 of NRS 488.400, NRS 488.410, 488.420, 488.425 or 493.130.

(c) Possessing a firearm in violation of paragraph (b) of subsection 1 of NRS 202.257.

possessing paraphernalia in violation of NRS 453.560 or 453.566:

(1) If the possession of the cannabis or paraphernalia is discovered because the person engaged or assisted in the medical use of cannabis in:

(I) [Any] Except as otherwise provided by regulations adopted by the Board pursuant to section 12.9 of this act, any public place or in any place open to the public or exposed to public view;

or (II) Any local detention facility, county jail, state prison, reformatory or other correctional facility, including, without limitation, any facility for the detention of juvenile offenders;

or (2) If the possession of the cannabis or paraphernalia occurs on school property.

(e) Delivering cannabis to another person who he or she knows does not lawfully hold a registry identification card or letter of 678C.230 or 678C.270.e Division or its designee pursuant to NRS (f) Delivering cannabis for consideration to any person, regardless of whether the recipient lawfully holds a registry identification card or letter of approval issued by the Division or its designee pursuant to NRS 678C.230 or 678C.270.

2.

Except as otherwise provided in NRS 678C.240 and in addition to any other penalty provided by law, if the Division determines that a person has willfully violated a provision of this chapter or any regulation adopted by the Division to carry out the - 81st Session (2021) – 29 – provisions of this chapter, the Division may, at its own discretion, prohibit the person from obtaining or using a registry identification card or letter of approval for a period of up to 6 months.

3.

Nothing in the provisions of this chapter shall be construed relating to the adult use of cannabis.ons of chapter 678D of NRS 4.

As used in this section, “school property” means the grounds of any public school described in NRS 388.020 and any private school as defined in NRS 394.103.

(a) InstallRequire aany ventilationsingle-use andcannabis exhaust[or systemcannabis] whichproduct isbrought capableinto of sufficiently expelling odors generated in the cannabis consumption lounge,lounge reducingby volatilea organiccustomer compoundsto andbe maintainingcontained in the standardssealed, foropaque airpackaging quality in which the single-use cannabis consumption[or loungecannabis] asproduct setwas forthoriginally bysold; regulation of the Board;

(b)Assembly TrainAmendment eachNo. employee of the cannabis consumption lounge concerning paraphernalia, single-use cannabis products and ready-to-consume cannabis products, including, without limitation, the proper use of paraphernalia, the potency, absorption time and effects of single-use cannabis and products and ready-to-consume cannabis products, the recognition of impairment from and overconsumption of cannabis and the safe handling of a customer who is impaired;

(c)322 Submit a security plan to theAssembly BoardBill which,No. without cannabis consumption lounge and for each entrance and exit ofe the cannabis consumption lounge to be adequately secured, and submit to the Board such updates to the plan as the Board may require;

(d)341 SubmitPage a22 plan(b) toRequire thea Boardperson settingwho forthwishes protocolsto andbring proceduressingle-use tocannabis deter[or customerscannabis] fromproducts drivinginto under the influencecannabis ofconsumption cannabis,lounge andto, before entry, submit to[the] theeach Boardsingle-use suchcannabis updates[and each cannabis] product to thean planemployee asfor theinspection Boardto mayensure require;that:

(e)(1) SubmitThe asingle-use plan to the Board setting forth protocols and procedures to ensure that cannabis and[or cannabiscannabis] productsproduct aresatisfies not sold or otherwise distributed in the cannabisrequirements consumptionof lounge other than as authorized in this chapter,subsection; and submit to the Board such updates to the plan as the Board may require;

-and 81st(2) SessionThe (2021)person –is 30in –compliance (f)with Disposethe oflegal cannabislimits oron cannabisthe productspossession whichof are left at the cannabis consumptionfor loungeadult-use inpurposes accordanceas with the procedures for disposal set forth byin theNRS regulations678D.200; of the Board;

(g)(c) ComplyInstall witha allventilation localand ordinancesexhaust system which is capable of sufficiently expelling odors generated in the cannabis consumption lounge, reducing volatile organic compounds and rules;maintaining the standards for air quality in the cannabis consumption lounge as set forth by regulation of the Board;

(d) Train each employee of the cannabis consumption lounge concerning paraphernalia, single-use cannabis products and ready-to-consume cannabis products, including, without limitation, the Board.plyproper withuse anyof requirementsparaphernalia, setthe forthpotency, byabsorption regulationtime and effects of 2.single-use cannabis and products and ready-to-consume cannabis products, the recognition of impairment from and overconsumption of cannabis and the safe handling of a customer who is impaired;

(e) Submit a security plan to the Board which, without limitation, provides for adequate security and lighting at the cannabis consumption lounge and for each entrance and exit of the cannabis consumption lounge to be adequately secured, and submit to the Board such updates to the plan as the Board may require;

(f) Submit a plan to the Board setting forth protocols and procedures to deter customers from driving under the influence of cannabis, and submit to the Board such updates to the plan as the Board may require;

(g) Submit a plan to the Board setting forth protocols and procedures to ensure that cannabis and cannabis products are not sold or otherwise distributed in the cannabis consumption lounge other than as authorized in this chapter, and submit to the Board such updates to the plan as the Board may require;

(h) Dispose of cannabis or cannabis products which are left at the cannabis consumption lounge in accordance with the procedures for disposal set forth by the regulations of the Board;

(i) Comply with all local ordinances and rules pertaining to zoning, land use and signage;

and (j) Comply with any requirements set forth by regulation of the Board.

2.

[or] 2.

The entry of any person who is less than 21 years of age to the cannabis consumption lounge;lounge [.] ;

3.Assembly Amendment No.

The322 consumptionto ofAssembly anyBill cannabisNo. or cannabis product in the cannabis consumption lounge that is not a single-use cannabis product or ready-to-consume cannabis product;

341 Page 23 3.

The consumption of any cannabis or cannabis product in the cannabis consumption lounge that is not a single-use cannabis product or ready-to- consume cannabis product;

A single-use cannabis product or ready-to-consume cannabis product that was purchased at the cannabis consumption consumptionlounge lounge.dto be removed from the premises of the cannabis Sec.consumption lounge.

Sec.

(a) Obtain [cannabis or cannabis products] from the adult-use cannabis retail store to which the retail cannabis consumption lounge is attached or immediately adjacent:adjacent [;] :

and (2) Cannabis or cannabis products for the purposes of producing ready-to-consumeready- to-consume cannabis products;

(b) Sell single-use cannabis [or cannabis] products obtained pursuant to paragraph (a) to customers of the retail cannabis consumption lounge;

- 81st Session (2021) – 31 – 2.

A retail cannabis consumption lounge shall ensure that only single-use cannabis [or] products or ready-to-consume cannabis products that were purchased from the retail cannabis consumption lounge [or the adult-use cannabis retail store to which the lounge is attached or immediately adjacent] are consumed in the lounge.

26.

1.

An independent cannabis consumption lounge shall allow single-use cannabis [or cannabis] products sold by [a] an adult-use cannabis [sales facility] retail store to be delivered to a customer in the independent cannabis consumption lounge.

Such a delivery must comply with the applicable requirements for the delivery of cannabis or cannabis products to a consumer set forth in this title and any other requirements the Board may establish by regulation.

2.

Except as otherwise provided in section 27 of this act, an independent cannabis consumption lounge shall not obtain from any source or sell cannabis or cannabis products.

Sec.

1.eletAn1. independent cannabis consumption lounge shall enter into a contract with one or more adult-use cannabis retail stores to sell to the independent cannabis consumption lounge:

(a)If Single-usean independent cannabis consumption lounge wishes to sell single-use cannabis [or cannabis] products or ready-to-consume cannabis products to customers of the lounge, the independent cannabis consumption lounge must submit [a request] to the Board [.] a request for an endorsement to the purposelicense of resale;the independent cannabis consumption lounge to engage in such activities.

andSuch (b)a Cannabisrequest andmust productsbe foraccompanied by the purposefee ofset preparingforth ready-in to-consumeNRS cannabis678B.390 products.and include any information the Board may by regulation require.

AnIf independentthe cannabisBoard consumptionapproves loungea whichrequest hassubmitted enteredpursuant intoto asubsection contract1, pursuantthe toindependent subsectioncannabis 1consumption lounge may:

(a) SellEnter single-useinto cannabisa productscontract obtainedwith pursuantone toor subsectionmore 1adult-use cannabis retail stores to customerssell ofto the independent cannabis consumption lounge;lounge :

and(1) (b)Single-use Prepare ready-to-consume cannabis products usingfor cannabisthe andpurpose cannabisof productsresale obtained[all pursuantcannabis to subsection 1 and sellcannabis such products toobtained customersby of the independent cannabis consumption lounge.lounge;] ;

and (2) Cannabis and products for the purpose of preparing ready-to- consume cannabis products;

(b) Sell single-use cannabis [and cannabis] products obtained pursuant to paragraph (a) to customers of the independent cannabis consumption lounge;

and Assembly Amendment No.

322 to Assembly Bill No.

341 Page 24 (c) Prepare ready-to-consume cannabis products using cannabis and cannabis products obtained pursuant to paragraph (a) and sell such products to customers of the independent cannabis consumption lounge.

AnThe independentBoard cannabis consumption lounge shall ensureadopt thatregulations onlygoverning single-usethe cannabismanner productsin orwhich ready-to-consumethe cannabisBoard productswill thataccept wereand purchasedevaluate fromrequests thesubmitted independentpursuant cannabisto consumptionsubsection lounge1. are consumed in the lounge.

4.The regulations must prescribe, without limitation:

(a) The Boardrequired maycontents requireof ansuch independenta cannabisrequest; subsection 1 to the Board for review.ct entered into pursuant to Sec.

(b) Procedures for the submission and evaluation of such a request;

and (c) The criteria by which the Board will evaluate such a request, which may include, without limitation:

(1) Whether the requestor holds an additional adult-use cannabis establishment license for another type of cannabis establishment;

(2) Whether the requestor is a social equity applicant;

and (3) Whether the requestor has previously been subject to disciplinary action by the Board.

Sec.

The Board shall adopt regulations governing the [preparation and] sale and consumption of single-use cannabis products and ready-ready-to-consume to-consume cannabis products [by] at a cannabis consumption lounge.

Establish standards for the content, quality and potency of ready-to-consumeready-to- consume cannabis products, including, without limitation, the maximum THC concentration for such products;

[2.] 3.

Prescribe procedures and protocols for the preparation and safe handling of ready-to-consume cannabis products to ensure - 81st Session (2021) – 32 – that each such prepared product meets the standards established pursuant to subsection 1;

[3.] 4.

Establish requirements relating to the sale of ready-to-ready-to-consume consume cannabis products, including, without limitation, requirements relating to notifications that must be provided to a purchaser of such a product at the time of sale;

andprovidedand to[4.] a 5.

28.5.

NRS 678D.300 is hereby amended to read as follows:

678D.300 1.

A person is not exempt from state prosecution for any of the following acts:

(a) Driving, operating or being in actual physical control of a vehicle or a vessel under power or sail while under the influence of cannabis.

(b) Engaging in any other conduct prohibited by NRS 484C.110, 484C.120, 484C.130, 484C.430, subsection 2 of NRS 488.400, NRS 488.410, 488.420, 488.425 or 493.130.

(c) Possessing a firearm in violation of paragraph (b) of subsection 1 of NRS 202.257.

(d) Possessing cannabis in violation of NRS 453.336 or possessing paraphernalia in violation of NRS 453.560 or 453.566:

(1) If the possession of the cannabis or paraphernalia is discovered because the person engaged in the adult use of cannabis in:

adopted by the Board pursuant to section 12.9 of this act, anys public place or in any place open to the public or exposed to public view;

or (II) Any local detention facility, county jail, state prison, reformatory or other correctional facility, including, without limitation, any facility for the detention of juvenile offenders;

or (2) If the possession of the cannabis or paraphernalia occurs on school property.

(e) Knowingly delivering cannabis to another person who is not years of age or older unless:

(1) The recipient holds a valid registry identification card or letter of approval issued to the person by the Division of Public and Behavioral Health of the Department of Health and Human Services or its designee pursuant to NRS 678C.230 or 678C.270.

- 81st Session (2021) – 33 – (2) The person demanded and was shown bona fide documentary evidence of the age and identity of the recipient issued by a federal, state, county or municipal government, or subdivision or agency thereof.

of any public school described in NRS 388.020 and any privategrounds school as defined in NRS 394.103.

Sec.

3.)Assembly F[A]Amendment ExceptNo. as otherwise provided in subsection 9 or byny.

regulations322 adopted by the Board pursuant to sectionAssembly 12.9Bill ofNo. this act, a person who smokes or otherwise consumes cannabis or a cannabis product in a public place, in an adult-use cannabis retail store or in a vehicle is guilty of a misdemeanor punished by a fine of not more than $600.

341 Page 25 (d) For a fourth or subsequent violation, a category E felony.

3.

[A] Except as otherwise provided in subsection 9, a person who smokes or otherwise consumes cannabis or a cannabis product in a public place, in an adult- use cannabis retail store or in a vehicle is guilty of a misdemeanor punished by a fine of not more than $600.

- 81st Session (2021) – 34 – 6.

A person who manufactures cannabis by chemical extraction or chemical synthesis, unless done pursuant to an adult-use cannabis establishment license for an adult-use cannabis production facility issued by the Board or authorized by this title, is guilty of a category E f7.onAfelony. person who knowingly gives cannabis or a cannabis product to any person under 21 years of age or who knowingly leaves or deposits any cannabis or cannabis product in any place with the intent that it will be procured by any person under 21 years of age is guilty of a misdemeanor.

7.

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

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

An adult-use edible cannabis product or an adult-use cannabis-infusedcannabis- infused product must be labeled in a manner which indicates the number of servings of THC in the product, measured in servings of a maximum of 10 milligrams per serving.

(b) For an adult-use cannabis product sold as a capsule, more than 100 milligrams of THC per capsule or more than 800 mil(c) For an adult-use cannabis product sold as a tincture, more than 800 milligrams of THC.THC per package.

(c) For an adult-use cannabis product sold as a tincture, more than 800 milligrams of THC.

To the extent that they are inconsistent or otherwise conflict with the regulations adopted by the Board pursuant to - 81st Session (2021) – 35 – section 28 of this act, the requirements of this section do not apply to a ready-to-consume cannabis product prepared and sold by a cannabis consumption lounge.

30.3.

NRS 678D.510 is hereby amended to read as fol678D.510 1.

The provisions of this chapter do not prohibit:

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

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

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

or (d) A local government from adopting and enforcing local cannabis control measures pertaining to zoning and land use for adult-use cannabis establishments [.] including, without limitation, a measure which prohibits the operation of adult-use cannabis establishments.

2.

Nothing in the provisions of this chapter shall be construed as in any manner affecting the provisions of chapter 678C of NRS relating to the medical use of cannabis.

Sec.

orAssembly aAmendment cannabisNo. product to another person who is 21 years of age ors older is not liable in a civil action for any damages caused by the person to whom the cannabis or cannabis product was served, sold or furnished as a result of the consumption of the cannabis or cannabis product.

322 to Assembly Bill No.

341 Page 26 1.

A person who serves, sells or otherwise furnishes cannabis or a cannabis product to another person who is 21 years of age or older is not liable in a civil action for any damages caused by the person to whom the cannabis or cannabis product was served, sold or furnished as a result of the consumption of the cannabis or cannabis product.

- 81st Session (2021) – 36 – 3.

The liability created pursuant to subsection 2 does not apply to a person who is licensed to serve, sell or furnish cannabis or cannabis products or to a person who is an employee or agent of such a person for any act or failure to act that occurs during the course of business or employment and any such act or failure to act may not be used to establish proximate cause in a civilrecivil action and does not constitute negligence per se.

30.6.

NRS 244.335 is hereby amended to read as follows:

244.335 1.

Except as otherwise provided in subsections 2, 3, and 9, and NRS 244.33501, 244.35253 and 244.3535, a board of county commissioners may:

(a) Except as otherwise provided in NRS 244.331 to 244.3345, inclusive, 598D.150 and 640C.100, regulate all character of lawful trades, callings, industries, occupations, professions and business conducted in its county outside of the limits of incorporated cities and towns.

fix, impose and collect a license tax for revenue or for regulation, or for both revenue and regulation, on such trades, callings, industries, occupations, professions and business.

2.

The county license boards have the exclusive power in their respective counties to regulate entertainers employed by an entertainment by referral service and the business of conducting a dancing hall, escort service, entertainment by referral service or gambling game or device permitted by law, outside of an incorporated city.

The county license boards may fix, impose and collect license taxes for revenue or for regulation, or for both revenue and regulation, on such employment and businesses.

3.

A board of county commissioners shall not require that a person who is licensed as a contractor pursuant to chapter 624 of NRS obtain more than one license to engage in the business of contracting or pay more than one license tax related to engaging in - 81st Session (2021) – 37 – classifications or subclassifications of licensing for which the person is licensed pursuant to chapter 624 of NRS.

4.

The board of county commissioners or county license board shall not require a person to obtain a license or pay a license tax on the sole basis that the person is a professional.

As used in this subsection, “professional” means a person who:

(a) Holds a license, certificate, registration, permit or similar type of authorization issued by a regulatory body as defined in NRS 622.060 or who is regulated pursuant to the Nevada Supreme Court Rules;

and (b) Practices his or her profession for any type of compensation as an employee.

5.

The county license board shall provide upon request an application for a state business license pursuant to chapter 76 of NRS.

No license to engage in any type of business may be granted unless the applicant for the license:

with the provisions of chapter 76 of NRS;

or business has complied (b) Provides to the county license board the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the county may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of chapter 76 of NRS.

6.

No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license:

(a) Presents written evidence that:

(1) The Department of Taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name;

or (2) Another regulatory agency of the State has issued or will issue a license required for this activity;

or identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the county may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of paragraph (a).

7.

Any license tax levied for the purposes of NRS 244.3358 or 244A.597 to 244A.655, inclusive, constitutes a lien upon the real and personal property of the business upon which the tax was levied until the tax is paid.

The lien has the same priority as a lien for general taxes.

The lien must be enforced:

- 81st Session (2021) – 38 – months after the date on which the tax became delinquent or wasn 6 otherwise determined to be due and owing, a notice of the tax lien containing the following:

(1) The amount of tax due and the appropriate year;

(2) The name of the record owner of the property;

(3) A description of the property sufficient for identification;

and (4) A verification by the oath of any member of the board of county commissioners or the county fair and recreation board;

and (b) By an action for foreclosure against the property in the same manner as an action for foreclosure of any other lien, commenced within 2 years after the date of recording of the notice of the tax lien, and accompanied by appropriate notice to other lienholders.

8.

The board of county commissioners may delegate the authority to enforce liens from taxes levied for the purposes of NRS 244A.597 to 244A.655, inclusive, to the county fair and recreation commissioners shall revoke or suspend the license of a business upon certification by the county fair and recreation board that the license tax has become delinquent, and shall not reinstate the license until the tax is paid.

Except as otherwise provided in NRS 239.0115 and 244.3357, all information concerning license taxes levied by an ordinance authorized by this section or other information concerning the business affairs or operation of any licensee obtained as a result of the payment of such license taxes or as the result of any audit or examination of the books by any authorized employee of a county fair and recreation board of the county for any license tax levied for the purpose of NRS 244A.597 to 244A.655, inclusive, is confidential and must not be disclosed by any member, officer or employee of the county fair and recreation board or the county imposing the license tax unless the disclosure is authorized by the affirmative action of a majority of the members of the appropriate authorized under an agreement with the Department of Taxation oro Secretary of State for the exchange of information concerning taxpayers.

9.

[A] Except as otherwise provided by regulations adopted by the Cannabis Compliance Board pursuant to section 12.9 of this act, a board of county commissioners shall not license or otherwise allow a person to operate a business that allows cannabis, as defined in NRS 678A.085, or cannabis products, as defined in NRS 678A.120, to be consumed on the premises of the business [.] , - 81st Session (2021) – 39 – of this act, in accordance with the provisions of chapter 678B of NRS.

Sec.

30.7.

NRS 268.095 is hereby amended to read as follows:

268.095 1.

Except as otherwise provided in subsections 4 and and NRS 268.0951, 268.0977 and 268.0979, the city council or other governing body of each incorporated city in this State, whether organized under general law or special charter, may:

(a) Except as otherwise provided in subsection 2 and NRS 268.0968 and 576.128, fix, impose and collect for revenues or for regulation, or both, a license tax on all character of lawful trades, callings, industries, occupations, professions and businesses conducted within its corporate limits.

(b) Assign the proceeds of any one or more of such license taxes to the county within which the city is situated for the purpose or purposes of making the proceeds available to the county:

(1) As a pledge as additional security for the payment of any 244A.655, inclusive;onds issued pursuant to NRS 244A.597 to (2) For redeeming any general obligation bonds issued pursuant to NRS 244A.597 to 244A.655, inclusive;

(3) For defraying the costs of collecting or otherwise administering any such license tax so assigned, of the county fair and recreation board and of officers, agents and employees hired thereby, and of incidentals incurred thereby;

(4) For operating and maintaining recreational facilities under the jurisdiction of the county fair and recreation board;

(5) For improving, extending and bettering recreational facilities authorized by NRS 244A.597 to 244A.655, inclusive;

and (6) For constructing, purchasing or otherwise acquiring such recreational facilities.

(c) Pledge the proceeds of any tax imposed on the revenues from the rental of transient lodging pursuant to this section for the a purpose authorized by the laws of this State.ssued by the city for (d) Use the proceeds of any tax imposed pursuant to this section on the revenues from the rental of transient lodging:

(1) To pay the principal, interest or any other indebtedness on any general or special obligations issued by the city pursuant to the laws of this State;

(2) For the expense of operating or maintaining, or both, any facilities of the city;

and - 81st Session (2021) – 40 – may be used.or any other purpose for which other money of the city 2.

The city council or other governing body of an incorporated city shall not require that a person who is licensed as a contractor pursuant to chapter 624 of NRS obtain more than one license to engage in the business of contracting or pay more than one license tax related to engaging in the business of contracting, regardless of the number of classifications or subclassifications of licensing for which the person is licensed pursuant to chapter 624 of NRS.

3.

The proceeds of any tax imposed pursuant to this section that are pledged for the repayment of general obligations may be treated as “pledged revenues” for the purposes of NRS 350.020.

4.

The city council or other governing body of an incorporated city shall not require a person to obtain a license or pay a license tax on the sole basis that the person is a professional.

As used in this subsection, “professional” means a person who:

(a) Holds a license, certificate, registration, permit or similar NRS 622.060 or who is regulated pursuant to the Nevada Supremen Court Rules;

and (b) Practices his or her profession for any type of compensation as an employee.

5.

The city licensing agency shall provide upon request an application for a state business license pursuant to chapter 76 of NRS.

No license to engage in any type of business may be granted unless the applicant for the license:

(a) Signs an affidavit affirming that the business has complied with the provisions of chapter 76 of NRS;

or (b) Provides to the city licensing agency the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the city may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of chapter 76 of NRS.

personal property may be granted unless the applicant for theble license:

(a) Presents written evidence that:

(1) The Department of Taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name;

or (2) Another regulatory agency of the State has issued or will issue a license required for this activity;

or - 81st Session (2021) – 41 – identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the city may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of paragraph (a).

7.