AB 430 — Revises provisions relating to cannabis. (BDR 32-893)

NRS 370.054 is hereby amended to read as follows:

370.054 “Vapor product”:

1.

Means any noncombustible product containing nicotine or any other substance that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of the shape or size thereof, that can be used to produce vapor from nicotine or any other substance in a solution or other form, the use or inhalation of which simulates smoking.

2.

Includes, without limitation:

(a) An electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar product or device;

and - *AB430_R1* – 3 – (b) The components of such a product or device, whether or not sold separately, including, without limitation, vapor cartridges or other container of nicotine or any other substance in a solution or other form that is intended to be used with or in an electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar product or device, atomizers, cartomizers, digital displays, clearomizers, tank systems, flavors, programmable software or other similar products or devices.

As used in this paragraph, “component” means a product intended primarily or exclusively to be used with or in an electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar product or device.

3.

Does not include any product:

(a) Regulated by the United States Food and Drug Administration pursuant to subchapter V of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C.

§§ 351 et seq.

(b) Subject to the excise tax on cannabis or cannabis products pursuant to NRS 372A.200 to 372A.380, inclusive.

(c) Purchased by a person who holds a current, valid medical cannabis establishment license pursuant to chapter 678B of NRS.

(d) Which is a cannabis vaporizer.

Sec.

2.

3.

(Deleted by amendment.) Sec.

4.

NRS 372A.247 is hereby amended to read as follows:

372A.247 1.

“Sales price” means the total amount for which tangible property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

(a) The cost of the property sold.

(b) The cost of materials used, labor or service cost, interest charged, losses or any other expenses.

(c) The cost of transportation of the property before its purchase.

2.

The total amount for which property is sold includes all of the following:

(a) Any services that are a part of the sale.

(b) Any amount for which credit is given to the purchaser by the seller.

3.

“Sales price” does not include any of the following:

(a) Cash discounts allowed and taken on sales.

(b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit, except that this exclusion does not apply in any instance when the customer, to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

- *AB430_R1* – 4 – (c) The amount of any tax, not including any manufacturers’ or importers’ excise tax, imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

(d) The amount of any tax imposed pursuant to NRS 372A.200 to 372A.380, inclusive.

Sec.

5.

(Deleted by amendment.) Sec.

6.

(Deleted by amendment.) Sec.

An excise tax is hereby imposed on [each] the first wholesale sale in this State of cannabis by a medical cannabis cultivation facility to another cannabis establishment at the rate of 15 percent of [the] :

- 82nd Session (2023) – 2 –  The excise tax imposed pursuant to this subsection is the obligation of the medical cannabis cultivation facility.

An excise tax is hereby imposed on [each] the first wholesale sale in this State of cannabis by an adult-use cannabis cultivationpercent facilityof to[the] :to another cannabis establishment at the rate of 15(a) percentThe fair market value at wholesale of [the]the :cannabis [.] , if the sale is made to an affiliate of the adult-use cannabis cultivation facility;

(a) The fair market value at wholesale of the cannabis [.] , if the sale is made to an affiliate of the adult-use cannabis cultivation facility;

- *AB430_R1* – 5 – (a) To the Cannabis Compliance Board and to local governments in an amount determined to be necessary by the Board to pay the costs of the Board and local governments in carrying out the provisions of chapter 678C of NRS;

6.- 82nd Session (2023) – 3 – $5,000,000 of the revenues collected from the excise tax imposed pursuant to subsection 1 and the excise tax imposed pursuant to subsection 2 in each fiscal year shall be deemed sufficient to pay the costs of all local governments to carry out the provisions of chapters 678C and 678D of NRS.

For the purpose of subsections 4 and 5, a total amount of $5,000,000 of the revenues collected from the excise tax imposed pursuant to subsection 1 and the excise tax imposed pursuant to subsection 2 in each fiscal year shall be deemed sufficient to pay the costs of all local governments to carry out the provisions of chapters 678C and 678D of NRS.

(b) “Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is underund(c) common“Cannabis controlproduct” with,has athe specifiedmeaning person.ascribed to it in NRS 678A.120.

(c) “Cannabis product” has the meaning ascribed to it in NRS 678A.120.

The term does not include a transfer of cannabis by a - *AB430_R1* – 6 – cannabis cultivation facility to another cannabis cultivation facility when both cannabis cultivation facilities share identical ownership.

678B.640regulations 1.to establish procedures to determine the fair market value at wholesale of cannabis.

The Department of Taxation shall adopt regulations to establish procedures to determine the fair market value at wholesale of cannabis.

and (2) Is the median sales price for wholesale sales between cannabis cultivation facilities and cannabis establishments that - 82nd Session (2023) – 4 – are not affiliates, per pound or each, during the period specified in subparagraph (1).

2.for the seed-to-sale tracking of cannabis adopted by the Board includes a method to denote transfers of cannabis between affiliates.

The Board shall ensure that any computer software used for the seed-to-sale tracking of cannabis adopted by the Board includes a method to denote transfers of cannabis between affiliates.

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